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Here's Why I Think Alma Media Oyj (HEL:ALMA) Might Deserve Your Attention Today
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inAlma Media Oyj(HEL:ALMA). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
See our latest analysis for Alma Media Oyj
In the last three years Alma Media Oyj's earnings per share took off like a rocket; fast, and from a low base. So the actual rate of growth doesn't tell us much. As a result, I'll zoom in on growth over the last year, instead. Like a falcon taking flight, Alma Media Oyj's EPS soared from €0.41 to €0.52, over the last year. That's a impressive gain of 27%.
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). Alma Media Oyj's EBIT margins have actually improved by 3.2 percentage points in the last year, to reach 16%, but, on the flip side, revenue was down 5.9%. That falls short of ideal.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
You don't drive with your eyes on the rear-view mirror, so you might be more interested in thisfreereport showing analyst forecasts for Alma Media Oyj'sfutureprofits.
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. As a result, I'm encouraged by the fact that insiders own Alma Media Oyj shares worth a considerable sum. To be specific, they have €11m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Despite being just 2.3% of the company, the value of that investment is enough to show insiders have plenty riding on the venture.
Given my belief that share price follows earnings per share you can easily imagine how I feel about Alma Media Oyj's strong EPS growth. Further, the high level of insider buying impresses me, and suggests that I'm not the only one who appreciates the EPS growth. Fast growth and confident insiders should be enough to warrant further research. So the answer is that I do think this is a good stock to follow along with. Of course, just because Alma Media Oyj 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. |
Hudson's Bay's chairman's buyout bid pits retail versus real estate
By Jessica DiNapoli and Harry Brumpton
(Reuters) - The success of Hudson's Bay Co Executive Chairman Richard Baker's $1.3 billion bid to take the department store operator private hinges on whether an independent valuator will view the company more as a retailer and less as a real estate owner, corporate governance experts and analysts said.
Much of Hudson's Bay's value is locked up in its real estate. Were the company to sell off some of its properties to raise cash, it could fetch more than what Baker offered, but would then be forced to pay rent to run some of its stores.
Baker's buyout consortium, which already owns 57% of Hudson's Bay, has made a C$9.45 per share offer for the remainder of the Canadian company, a 48% premium to where the stock was trading before the announcement.
However, some of the minority shareholders, including hedge fund Land & Buildings Investment Management LLC, say they value the company's assets at between C$28 and C$33 per share. Hudson's Bay shares ended trading on Friday at C$9.73, above the C$9.45 offer price, as investors bet on a sweetened bid.
The big valuation gap is due to disagreements over how much of Hudson's Bay's prime real estate can be divested while keeping it operational. Selling off property raises cash but also makes it more financially burdensome for the company to rent the space for the stores it operates. As a result, it would likely close stores, and its retail footprint would begin to shrink.
"There is judgment to be exercised on the valuation, which can always be challenging," said Catherine McCall, the executive director of the Canadian Coalition for Good Governance, an organization representing institutional shareholders in Canadian public companies.
Hudson's Bay operates 39 stores under its Saks Fifth Avenue brand, 133 stores under its Saks OFF 5th brand, more than 40 stores under the Lord + Taylor banner, 90 Hudson's Bay department stores, as well as 37 stores in Canada which the company plans to close this year under the Home Outfitters brand.
Hudson's Bay's trophy asset is the Saks Fifth Avenue building in Manhattan, which this year completed a $250 million renovation.
Hudson's Bay's most recent public estimate for the value of its real estate was in September 2018, when CEO Helena Foulkes pegged it at $28 per share. Baker has offered about a third of that because he argues that the company would have to all but liquidate to achieve all the real estate value.
Toronto-Dominion Bank, which has been hired by a Hudson's Bay board committee to independently evaluate the take-private deal, will recommend whether the company should accept the offer as fair, or reject it and try to negotiate further.
The board committee excludes representatives of Baker's buyout consortium and is granted power to prevent any deal, even if the prospective acquirers otherwise control the company. In an illustration of this, a special board committee sank the hopes of Nordstrom Inc's founding family group last year to take the U.S. department store operator private, after it rejected their $8.4 billion offer.
The methodology Toronto-Dominion Bank uses to value the bid for Hudson's Bay will be key to the outcome and will be scrutinized heavily by shareholders. The bank will likely be assessing how comparable companies' shares trade, research similar deals and consider how much a financial buyer like a private equity firm would pay, said Andrey Golubov, a professor of finance at the University of Toronto.
"It's not done just to justify the offer. That said, valuation is not a science," Golubov said.
Hudson's Bay declined to comment, as did a spokesman for Baker's buyout consortium. Spokespeople for TD Bank did not respond to requests for comment.
CASHING OUT ON REAL ESTATE
Sale lease-back arrangements in which retailers sell their properties and become tenants in their stores have become increasingly popular in the last few years as the downturn in brick-and-mortar retail brought about by the rise of internet shopping has put pressure on retailers to raise cash.
However, some retailers resist them because they view the rent obligation as burdensome, a stance that often attracts investor criticism. Macy's Inc for example, another department store operator, was pressured by hedge fund Starboard Value LP three years ago to do more to cash out on its real estate.
Even if Toronto-Dominion Bank blesses an offer from Baker's consortium and the board committee negotiating a deal approves it, the acquisition still faces some hurdles.
A majority of the shareholders who are not affiliated with the buyout consortium have to vote for it, accounting for about 21.5 percent of the company's shareholder base. Opponents could still challenge the deal in court when the company seeks approval for it before a judge under the Canada Business Corporations Act.
But successful legal challenges of deals that have followed the process for management buyouts outlined by the Ontario Securities Commission, as Hudson's Bay is seeking to do, are rare.
"Most of these deals get done once they get board approval and a transaction agreement gets signed," said Jeremy Fraiberg, chair of the mergers and acquisitions group at Osler, Hoskin & Harcourt LLP.
(Reporting by Jessica DiNapoli and Harry Brumpton in New YorkEditing by Greg Roumeliotis and Cynthia Osterman) |
FedEx sues U.S. government over 'impossible' task of policing exports to China
By Kanishka Singh and Sijia Jiang
(Reuters) - U.S. parcel delivery firm FedEx Corp on Monday sued the U.S. government, saying it should not be held liable if it inadvertently shipped products that violated a Trump administration ban on exports to some Chinese companies.
The move came after FedEx reignited Chinese ire over its business practices when a package containing a Huawei phone sent to the United States was returned last week to its sender in Britain, in what FedEx said was an "operational error." Fears that China would blacklist FedEx as a result sent its shares down 2.7 percent on Monday.
FedEx's suit and delivery error come against a backdrop of increasing tension between the world's two biggest economies. The United States and China have been engaged in a trade fight for nearly a year on issues such as tariffs, subsidies, technology, regulations and cyber security.
The U.S. Commerce Department has banned a number of Chinese firms in recent weeks from buying sensitive U.S. technology.
In court filings in the District of Columbia, FedEx said it should not be expected to enforce the export ban, and could not reasonably be held liable for shipping products that it did not know about.
Export restriction rules "essentially deputize FedEx to police the contents of the millions of packages it ships daily even though doing so is a virtually impossible task, logistically, economically, and in many cases, legally," it said in a filing.
A U.S. Commerce Department spokesman responded that, "We have not yet reviewed the complaint, but nevertheless look forward to defending Commerce's role in protecting U.S. national security."
Chinese telecoms company Huawei Technologies Co in May was added to the U.S. "Entity List" of people and companies the government said posed a risk to the United States, essentially barring it from buying U.S. technology upon which it was heavily reliant.
China is also drawing up its own "Unreliable Entities List" of foreign firms, groups and individuals.
State-run newspaper Global Times on Sunday tweeted that FedEx was likely to be added to that list.
'OPERATIONAL ERROR'
Last month, China said it would launch an investigation after two parcels sent via FedEx destined for Huawei addresses in Asia were diverted to the United States. FedEx said the packages were "misrouted in error."
In the latest incident, technology news outlet PCMag https://www.pcmag.com/news/369155/are-huawei-phones-now-banned-from-the-mail said that its writer in Britain had attempted to send a Huawei P30 handset to a colleague in the United States. FedEx returned the phone and told the sender that it could not deliver the package because of a "U.S. government issue" with Huawei and the Chinese government, PCMag reported.
FedEx responded by saying publicly that it would deliver all products made by Huawei to addresses other than those of Huawei and affiliates placed on the U.S. national security blacklist.
FedEx rival United Parcel Service Inc also confirmed it would not ship to Huawei addresses on the Entity List but had no "general ban" on Huawei products.
A Huawei spokesman said the Chinese firm was not currently using either FedEx or UPS services. On Sunday, Huawei tweeted it was not within FedEx's right to prevent the delivery and said the courier had a "vendetta."
China's foreign ministry asked for a full explanation.
Neither China's commerce ministry nor FedEx responded to Reuters requests for comment on the likelihood of FedEx being added to the blacklist. State news agency Xinhua previously said the investigation into FedEx misrouting Huawei packages should not be regarded as retaliation.
Being in the "crosshairs" of the Chinese government "is a tremendous headwind and risk" for FedEx, said Trip Miller, managing partner at Memphis-based Gullane Capital Partners, which holds a FedEx position valued at roughly $7 million.
(Reporting by Kanishka Singh in Bengaluru, Caroline Stauffer in Chicago and Sijia Jiang in Hong Kong; Additional reporting by Huizhong Wu in Beijing; Editing by Shounak Dasgupta and Rosalba O'Brien) |
The Crypto Week – Bitcoin Hits $11,000 to Dominate the Market
The crypto bulls are out in force this week.
Bitcoin rose by 5.1% to $10,744.0 on Saturday. Following on from a 6.86% rally on Friday, Bitcoin ended the day at $10,744.
A particularly bullish morning saw Bitcoin rally from an intraday low $10,080 to an early afternoon intraday high and new swing hi $11,232.
The rally saw Bitcoin break through the major resistance levels to touch $11,000 levels for the first time March 2018.
For the current week, Bitcoin was up by 19.6%, which came off the back of 5 days in the green out of the last 6.
Across the rest of the top 10 cryptos, it was bullish for all but one of the majors. Bucking the trend on the day was Binance Coin, which fell by 2.36%. In spite of the Saturday pullback, Binance Coin was up by 17.8%, Monday through Saturday.
Across the rest of the majors, Bitcoin Cash ABC led the way, rallying by 9.9% to hit $500 levels for the first time since the November hard fork.
Bitcoin Cash SV (+7.49%), Ripple’s XRP (+7.15%), and EOS (+6.22%) also saw solid gains on the day.
While Binance Coin saw red on the day, Litecoin continued to trail the majors, rising by just 1.6%.
For the current week, Bitcoin led the way with its 19.6% rally, Monday through Saturday. Binance Coin came in a close second, with its 17.8% gain.
Ethereum (+15%), Bitcoin Cash ABC (+12.5%), Bitcoin Cash SV (+11.2%), and Ripple’s XRP (+11.6%) also saw double-digit gains.
Stellar’s Lumen bucked the trend, falling by 1.03%, with Litecoin rising by just 3.26%.
The weeklong rally saw the total crypto market cap jump from a start of a week $285.84bn to an end of Saturday $329.55bn.
Sidelined investors returned to the market, with the 24-hour trading volume rising from $74.17bn to a Saturday high $98.25bn.
At the time of writing, Bitcoin was down by 0.14% to $10,729.0. A mixed start to the day saw Bitcoin rise to a morning high $10,985.0 before falling to a low $10,687.0.
Bitcoin left the major support and resistance level untested in a relatively range-bound start to the day.
Elsewhere, Stellar’s Lumen was up by 3.19% to move into positive territory for the week.
Bitcoin Cash SV and Bitcoin Cash ABC also found early support, rising by 2.00% and 1.25% respectively.
Litecoin and EOS joined Bitcoin in the red early on, down by 0.26% and 0.04% respectively.
Bitcoin would need to steer clear of sub-$10,700 levels through the morning to support further upside on the day.
A move back through the morning high $10,985.0 to $11,000 levels would bring $11,200 levels into play.
Bitcoin would need support from the broader market, however, to take a run at the first major resistance level at $11,290.67.
A fall through $10,685 would bring the first major support level at $10,138.67 into play before any recovery.
Barring a crypto meltdown, Bitcoin will likely steer clear of sub-$10,000 levels on the day.
Get Into Cryptocurrency Trading Today
Thisarticlewas originally posted on FX Empire
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U.S Mortgage Rates – Rates Rise for the 1st Time in 7-Weeks
Mortgage rates increased for the 1sttime in 7-weeks in the week ending 20thJune. 30-year fixed rates rose by 2 basis points to 3.84% following no change from the previous week. That left 30-year rates close to a 2-year low according to figures released byFreddie Mac.
Compared to this time last year, 30-year fixed rates were down by 73 basis points.
More significantly, 30-year fixed rates are down by 110 basis points since last November’s most recent peak of 4.94%.
It was yet another relatively quiet 1sthalf of the week. June NY Empire State manufacturing index numbers disappointed on Monday.
From the housing sector, May building permit and housing start figures were mixed on Tuesday. While building permits rose by 0.3% in May, housing starts fell by 0.9%. The decline came off the back of a 6.8% jump in April, which left Treasury yields largely unaffected.
While the stats were on the lighter side, concerns over rising tension in the Middle East provided support for U.S Treasuries, whilst hopes of a productive Trump – Xi meeting at the G20 offset any material slide in yields.
In spite of the geopolitical risks, the market focus going through to Wednesday remained on the FED. The FOMC economic projections and press conference did ultimately sink the Dollar, which led to 10-year yields falling back to sub-2% for the 1sttime since Nov-16.
The weekly average rates for new mortgages as of 20thJune were quoted byFreddie Macto be:
• 30-year fixed rates increased by 2 basis points to 3.84% in the week. Rates were down from 4.57% from a year ago. The average fee decreased from 0.6 points to 0.5 points.
• 15-year fixed rates fell by 1 basis point to 3.25% in the week. Rates were down from 4.04% from a year ago. The average fee fell from 0.5 points to 0.4 points.
• 5-year fixed rates fell by 3 basis points to 3.48% in the week. Rates were down by 35 basis points from last year’s 3.83%. The average fee held steady at 0.4 points.
According to Freddie Mac, while the drop in mortgage rates hit pause, homebuyer demand remained resilient. Freddie Mac noted an increase in both purchasing activity and loan amounts, reflecting continued support for the sector. Freddie Mac attributed low mortgage rates, strong job market, solid wage growth, and consumer confidence to the support.
For the week ending 14thJune,rateswere quoted to be:
• Average interest rates for 30-year fixed, backed by the FHA, increased from 4.09% to 4.12%. Points increased from 0.26 to 0.44 (incl. origination fee) for 80% LTV loans.
• Average interest rates for 30-year fixed with conforming loan balances increased from 4.12% to 4.14%. Points increased from 0.33 to 0.38 (incl. origination fee) for 80% LTV loans.
• Average 30-year rates for jumbo loan balances remained unchanged at 4.04%. Points increased from 0.17 to 0.24 (incl. origination fee) for 80% LTV loans.
Weekly figures released by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of mortgage loan application volume, decreased by 3.4% in the week ending 14thJune. The fall followed a 26.8% surge in the week ending 7thJune.
The Refinance Index fell by 4% in the week ending 14thJune. The Index had jumped by 47% in the previous week ending 7thJune.
The share of refinance mortgage activity increased from 49.8% to 50.2%, following an increase from 42.2% to 49.8% in the week prior.
According to the MBA, overall refinance activity eased after a slight increase in 30-year mortgage rates. While borrowers continued to remain sensitive to rising mortgage rates, the refinance share of applications continued to sit at its highest level since Jan-18. The MBA also noted that refinance activity sit its 2ndhighest level this year.
The MBA added that, while purchase applications fell by more than 3%, applications are still up by almost 4% from last year. Strong demand from 1st-time buyers and low unemployment levels continue to provide support.
It’s a relatively busier start to the week, with consumer confidence figures and durable goods orders due out on Tuesday and Wednesday.
While positive numbers would provide support to U.S Treasury yields, the FED’s latest FOMC economic projections and Friday’s private sector PMI numbers will set the tone early on.
Outside of the numbers, geopolitical risk will continue to influence. We can expect the markets to tread carefully ahead of the G20 Summit at the end of the week. There is also rising tension in the Middle East to consider, which could pin back Treasury yields and mortgage rates.
Interestingly, the FED’s concerns over the economic outlook could also influence home buying activity. The Global Financial Crisis was not too long ago and any talk of an economic slowdown could see buying activity grind to a halt.
Thisarticlewas originally posted on FX Empire
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Grand Theft Crypto: The State of Cryptocurrency-Stealing Malware and Other Nasty Techniques
Much of digital assets’ appeal stems from the fact that many of them are not affiliated with or controlled by governments, central banks or transnational corporations (at least, not yet). The price paid for the independence from institutions of global capitalism, though, might sometimes be extremely high, as, in the event of cryptocurrency theft, there is no one to appeal to for recourse. Further still, the irreversible nature of blockchain transactions renders it extremely difficult to get the money back once its gone.
The villains of the internet love cryptocurrencies for the same reasons. In the last few years, marked by the spike of popularity for digital money, hackers and scammers of all sorts have perfected the art of pilfering it from unwitting users, many of whom are newcomers to the space.
Roughly a year ago, Cointelegraph had already compiled a lengthyoverviewof many popular crypto-stealing tricks and tips on how to avoid falling prey to them. While the list remains relevant as ever, the time has come to revisit the subject to see if there are new threats to your crypto assets to beware of.
A recentreportby cryptocurrency intelligence firm CipherTrace estimated losses from digital currency theft and scams in the first quarter of 2019 at $356 million, with additional fraud or misappropriated fund losses amounting to $851 million in the same period. Alarmingly, this Q1 total of $1.2 billion constituted 70% of the total losses to crypto crime in all of 2018, indicating intensified hacking activity in the first months of 2019.
At the same time, astudyconducted by a security company Positive Technologies registers a change in the structure of attacks. The share of cryptojacking — or, hidden cryptocurrency mining — in the overall volume of cyberattacks seems to be declining: Having reached a peak in early 2018, this type of criminal activity dropped to just 7% in the first quarter of 2019. The analysts noted, however, that the observed trend merely reflects the way malware previously used primarily for cryptojacking has become smarter and more versatile. If the virus recognizes that the machine it took over lacks processing power, it may divert to other modes of operation, such as clipboard jacking.
Researchers at Positive Technologies predicted an increase in the overall number of attacks in the second quarter of the year. Their report pointed out malware and social engineering as attackers’ most widely used tactics and recorded the increasing prominence of ransomware attacks. These findings are furthercorroboratedby ransomware recovery company Coveware, whose analysis revealed a 89% increase in an average ransom from the fourth quarter of 2018 to the first quarter of 2019.
Related:Round-Up of Crypto Exchange Hacks So Far in 2019 — How Can They Be Stopped?
Although perpetrators of ransomware attacks demand payments in cryptocurrency, nearly always, this type of criminal activity is not specific to the crypto sphere, targeting companies from a wide range of industries. This type of intrusion entails infecting the victim’s device with a piece of code that denies the owner access to their system or data, and demanding payment to regain access. Since these attacks usually prey on fairly large corporate entities, we will skip over to those that seek to part individual crypto investors with their digital funds.
One intuitive way to classify attacks that target users’ digital assets could be to juxtapose those that seek to find weak spots in software (say, secretly infecting victim’s computer with an ingenious virus) and those aimed at exploiting errors in human judgement (fooling a person into handing over their wallet’s private key).
Yet, in fact, these two modes exist on a spectrum rather than on a binary scale. The most successful thefts entail some degree of participation on behalf of the victim — such as opening a phishing email, using public Wi-Fi to check a crypto wallet or willingly installing a shady app — and a piece of malicious code, whether it is a Trojan or a scam bot on Slack.
Breaking the variety of threats down according to the attack vector is perhaps a more meaningful strategy. It is also far from optimal, though, as many known viruses these days can alter their behavior according to circumstances, and are capable of both installing hidden miners and simply stealing keys as needed. The following topology is therefore highly contingent.
Because no one wants to manually type in long strings of random alphanumeric characters that are also case-sensitive, we all use the copy/paste function to indicate the addresses we send our coins to. Clipboard hijackers (aka clippers) are pieces of malware that detect an event of clipboard use to store a crypto wallet address then trigger a script that replaces the correct address with that of an attacker. As a result, often without the victim realizing what happened, the digital currency flows straight to the thief’s pocket. Using the same technique, clippers are capable of stealing passwords and keys as well.
Related:Crypto Crime Trends Evolving as Users Wise Up: Exchange Hacks, Darknet and Money Laundering
Perhaps the most sinister specimen of clipper malware uncovered so far in 2019 is the one that made it on the Google Play Storedisguisedas the mobile version of MetaMask, a popular client used to access decentralized applications (DApps) from a web browser — except, there is no MetaMask version for mobile. Although it was taken down soon after discovery, the very fact that the app managed to make it past Google Store’s defenses is impressive and it reminds us that even the authenticity of software found in major stores should not be taken for granted.
Cryptojacking, also known as hidden mining, is the covert exploitation of other users’ devices to mine cryptocurrency. Usually, a targeted computer gets infected by a Trojan that installs a miner. Victims do not get stripped of their crypto assets directly, yet the losses they sustain may be quite unpleasant, from footing enormous electricity bills to having an overloaded computer break down.
The number of detected attacks of this type exhibits a curious pattern of strong correlation with crypto prices. As the aforementioned reports suggested, the overall share of cryptojacking attacks appears to be declining this year — however, the ingenuity of their perpetrators is only growing. Some hidden mining operations may reach extraordinary scale, too: As Cointelegraph recentlyreported, a campaign using cryptojacking malware to mine the privacy-focused cryptocurrency turtlecoin (TRTL) was found to have infected more than 50,000 servers worldwide.
Just a few days ago, two browser extensions that secretly sponged their users’ central processing units (CPUs) to mine privacy-focused cryptocurrency monero werediscoveredon the official Google Chrome store. Previously, such malware was found to behidingin legitimate Adobe Flash updates and convincinglyposingas Windows installation packages.
Researchers from cybersecurity firm Trend Micro haveuncovereda fascinating tactic employed by cryptocurrency hackers to smuggle monero miners onto Oracle enterprise servers. In order to obfuscate the malicious code, the program hides it in certificate files. This way, they go unnoticed by antivirus software that automatically treats certificate files as reliable.
Having originated in the remote corners of the darknet, where online stores selling illicit substances have long been “cloned” by scammers seeking to trick drug users into transferring bitcoin to their accounts, the technique is well and alive as of June 2019. The latest example is thecaseof the crypto trading website Cryptohopper, whose malicious copy facilitated in the infection of the computers of unwitting crypto traders who visited it. The victims had both mining and clipboard hijacking Trojans installed, resulting in an aggregate loss of almost $260,000.
Cryptocurrency trading platforms and exchanges appear to be the area of crypto sphere most vulnerable to hacking attacks, as they present shortcuts to swaths of centrally stored digital assets. Sky Guo, CEO and co-founder of Cypherium, told Cointelegraph that this has to change in order for the industry to be able to cope with rising security threats:
“Security threats happen on the level of the software, the infrastructure. But our industry needs to realize that there are dangers attached to presenting something as ‘decentralized’ in order to cash in on the security advances of blockchain tech. Projects like Facebook’s Libra and some other major projects already leading in our industry still have central points of failure by virtue of their highly permissioned network structures, and they need to be more transparent about the security implications of such systems.”
Related:What Is Libra? Breaking Down Facebook’s New Digital Currency
The term “social engineering” refers to a broad scope of malicious activities whereby wrongdoers use human interactions to accomplish their goals. These attacks usually rely on less sophisticated technical solutions, seeking to exploit the victims’ lack of attention, literacy or understanding of the context in order to obtain sensitive information or extort digital assets. As more people without much technical sophistication flock into the crypto space, simple schemes that didn’t stand a chance with old-school crypto buffs might suddenly become efficient.
Matthew Finestone, the director of business development at Loopring, an open-source protocol for building decentralized exchanges, observed to Cointelegraph:
“I really see attacks drawing on human inattention becoming more prevalent. It's dangerous because newcomers to the space aren't aware of these threats, and they often fail to realize that there is no recourse after cryptocurrency is sent, unlike traditional financial systems that can bail you out in worst case scenarios. Being careful, and learning from resources such asyour articleare a good starting point.”
Finestone also recalled his recent experiences with two rather simplistic social engineering schemes: one that came with an aggressive threat to release some harmful or embarrassing information if a crypto ransom was not sent to them shortly and another pretending to come from a friend or colleague asking for some coins. He concluded that both, like the majority of social engineering schemes, could be easily combated with vigilance and a healthy dose of common sense.
In fact, these universal principles apply to any type of potential attack aimed at your digital money. While a few of them are incredibly sophisticated, the majority count on the victim’s disregard of telltale signs apparent to the naked eye. It is always a good idea to double-check wallet addresses when performing transactions and to scrutinize the spelling of trading-related domains you visit. Making sure that your antivirus software is up to date is another useful habit that could save you some bitter regrets over digital money lost forever.
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The Week Ahead: The G20, the Middle East and Stats in Focus
It’s a busy week ahead for the Greenback.
June consumer confidence figures, due out on Tuesday, will get things started. A hold onto 130 levels would be considered positive.
Durable goods orders on Wednesday will also provide direction ahead of finalized 1stquarter GDP numbers due out on Thursday.
It’s a busier day on Friday with the FED’s preferred May inflation figures, personal spending and Chicago PMI numbers due out.
While of less influence, housing sector figures due out through the week will also need to be monitored. Mortgage rates have been on the slide, so any dire numbers could raise some red flags…
Barring material deviation from the forecast, we would expect the Michigan Consumer Sentiment index figures and the weekly jobless claims numbers to have a muted impact on the Greenback.
The Dollar Spot Index ended the week down by 1.39% to $96.220.
It’s a relatively week ahead.
The week kicks off with a bang, with Germany’s IFO Business Climate Index figures due out on Monday. Germany’s consumer climate figures due out on Wednesday will also influence in a quiet 1sthalf of the week.
Eurozone business confidence numbers on Thursday and French consumer spending figures on Friday will also need to be tracked.
Through the 2ndhalf of the week, prelim June inflation numbers for Spain, Germany, France, Italy, and the Eurozone will also provide direction. Expect the Eurozone’s annual rate of core inflation on Friday to be the key driver from an inflation perspective.
The EUR/USD ended the week up 1.44% to $1.1369.
It’s also a relatively quiet week ahead.
The markets will have to wait until Friday for finalized 1stquarter GDP and business investment figures. Barring any shift from prelim, the numbers will likely have a muted impact on the Pound.
April economic indicators have already raised some concerns over what lies ahead, which would likely offset positives from the 1stquarter.
The GBP/USD ended the week up 1.18% at $1.2737.
It’s a relatively quiet week ahead.
April wholesale sales figures, due out on Tuesday, will provide direction ahead of a busier Friday. A lack of stats mid-week will leave the Loonie in the hands of market sentiment towards the weekend’s U.S – China trade talks.
Stats due out on Friday include April GDP and May RMPI figures. The GDP number will be the key driver on Friday.
Outside the stats, the BoC will also release its Business Outlook Survey. Expect some movement, though the BoC is unlikely to consider a rate hike any time soon. A rate cut, however…
The Loonie ended the week up 1.43% to C$1.3222 against the U.S Dollar.
It’s a particularly quiet week ahead. The markets will need to wait until Friday for May private sector credit figures.
Throughout the week, market risk sentiment and U.S economic data will provide direction.
The Aussie Dollar ended the week up 0.79% to $0.6926.
May retail sales figures due out on Thursday will provide direction ahead of June inflation figures on Friday.
Prelim industrial production figures, also due out on Friday, will also need to be considered.
The stats will unlikely influence the Yen, however, with market risk appetite remaining the key diver.
We can expect chatter ahead of the G20 Summit to be of material influence on the week. There’s also rising tension in the Middle East to consider.
The Japanese Yen ended the week up 1.14% ¥107.32 against the U.S Dollar.
It’s a busy week ahead.
Economic data is limited to May trade figures due out on Tuesday and June business confidence figures due out on Thursday.
With the stats are on the lighter side, the market focus will be on Wednesday’s RBNZ monetary policy decision.
The economy held up well in the 1stquarter, suggesting that the RBNZ may hold steady until there is greater clarity on the timing of a FED rate cut.
While the stats are on the lighter side, expect Kiwi Dollar sensitivity to the numbers…
The Kiwi Dollar ended the week up 1.49% to $0.6589.
There are no material stats, leaving the G20 Summit in focus.
Trade Wars: The G20 Summit is scheduled to start on 28thJune. Trump and Xi have scheduled to meet. Any chatter ahead of the meeting will impact risk sentiment in the week.
UK Politics: The leadership race is down to the final 2. Domestic woes could make things a little more interesting after Johnson hit the headlines for all the wrong reasons.
Iran: Tensions have risen and the U.S is sending troops to the Middle East. While few expect Iran to cross the line, anything is possible…
Monetary Policy:
For the Kiwi Dollar: The RBNZ monetary policy decision will be in focus. While rates are expected to be left unchanged, will the RBNZ signal the need for further support?
For the Japanese Yen: The BoJ’s May monetary policy meeting minutes, due out on Tuesday, will have a muted impact on the Yen.
Thisarticlewas originally posted on FX Empire
• Gold Price Forecast – Gold markets continue to grind higher
• Crude Oil Price Forecast – Crude oil market struggle on Monday
• Natural Gas Price Prediction – Prices Surge on Short Covering
• Silver Price Forecast – Silver markets choppy on Monday
• EUR/USD Price Forecast – Euro continues to grind higher
• US Stock Market Overview – Stocks Slip on Weak Manufacturing Data |
Could KARATZIS S.A.'s (ATH:KARTZ) Investor Composition Influence The Stock Price?
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Every investor in KARATZIS S.A. (ATH:KARTZ) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
With a market capitalization of €103m, KARATZIS is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about KARTZ.
Check out our latest analysis for KARATZIS
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.
Since institutions own under 5% of KARATZIS, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
We note that hedge funds don't have a meaningful investment in KARATZIS. There is some analyst coverage of the stock, but it could still become more well known, with time.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own the majority of KARATZIS S.A.. This means they can collectively make decisions for the company. That means they own €85m worth of shares in the €103m company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You canclick here to see if those insiders have been buying or selling.
With a 15% ownership, the general public have some degree of sway over KARTZ. 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.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
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. |
India's space startups ignite investor interest
By Sachin Ravikumar and Ismail Shakil
MUMBAI (Reuters) - From companies building palm-sized satellites to those aiming to propel satellites into space using cleaner fuels, a new wave of space technology startups are mushrooming in India, catching the attention of investors keen to join the space race.
Bengaluru-based Bellatrix Aerospace, which wants to propel satellites into orbit using electric and non-toxic chemical thrusters, has raised $3 million from a group of investors, co-founder Yashas Karanam told Reuters.
Venture capital fund IDFC Parampara is leading Bellatrix's pre-Series A round. The family office of Suman Kant Munjal, who belongs to the billionaire family that controls Indian motorcycle maker Hero MotoCorp, and Deepika Padukone, one of Bollywood's biggest stars, are two of the other seven investors.
Meanwhile, Mumbai-based Kawa Space, which designs and operates earth observation satellites, has closed a seed round of an undisclosed amount, one of its investors, Vishesh Rajaram, managing partner at Speciale Invest, told Reuters.
Bellatrix and Kawa are two of over a dozen Indian startups developing satellites, rockets and related support systems which can power space missions serving a range of industries.
Their fundraising represents a big leap in private space investments in India, a leading space power but where the government has enjoyed a near-monopoly for decades.
"No venture capital firm which does tech investments in India has invested an amount of this size in space technology before," said Narayan Prasad, co-founder of online space products marketplace Satsearch, referring to Bellatrix's funding.
Besides Bellatrix and Kawa, seven space technology companies in India are funded, according to startup data tracker Tracxn and interviews with investors.
Space technology is red hot thanks partly to activity happening 2,000 km (1,200 miles) above the earth in the low-earth orbit, much closer and easier to reach than the geostationary orbit where many communications satellites operate.
Here, small and cheaper satellites are snapping images used in everything from crop-monitoring and geology to defense and urban planning, bringing down costs and increasing the frequency of images.
'EXCITING TIMES'
In the past five years, some two dozen Indian startups have grown into unicorns - companies with over $1 billion valuations - most betting on India's growing middle-class and the consumer boom at home.
India's space technology firms are part of a new breed of startups, and investors are paying attention, given the surging global interest in everything from space exploration to space vacations.
Satellite launches planned in the coming years worldwide give investors confidence in such companies, said Bellatrix investor Jatin Desai, whose Parampara Capital collaborated with lender IDFC to form IDFC Parampara.
"That gives us a large addressable potential market," Desai said.
Over 17,000 small satellites could be launched between 2018 and 2030, consulting firm Frost & Sullivan estimates.
"There is money to be made ... These are exciting times for lots of entrepreneurs," said Rajaram, whose Speciale Invest has bet on three space startups in India.
LONG GESTATION PERIOD
To be sure, investors aren't opening the coffers for India's space startups in large numbers just yet.
Indian venture capital firms Maple Capital, Ideaspring Capital, Bharat Innovation Fund and 3one4 Capital, say they have held talks with space startups but are taking a wait-and-watch approach.
"The gestation period is long by the time you see returns," said Naganand Doraswamy, managing partner at Ideaspring, referring to the multiple stages of development, testing and government approvals involved in space missions.
The state-run Indian Space Research Organization (ISRO), currently preparing for its second lunar mission, has a monopoly on launching rockets in India.
Still, Indian firms are free to use ISRO's rockets or overseas launch services such as Elon Musk's SpaceX or New Zealand and Los Angeles-based Rocket Lab to send satellites to space.
Most Indian space startups are hopeful that parliament will pass a long-pending space law, which will give clarity on how private companies can operate in the sector.
The administration of Prime Minister Narendra Modi has sought suggestions from stakeholders for a draft Space Activities Bill, which it has said could "possibly" be introduced in parliament this year.
Bellatrix Aerospace's first customer is ISRO, which is also mentoring the company as it readies a water-based propellant to help maneuver satellites in space.
Bellatrix is not the only company racing to develop newer satellite propulsion systems, with at least three others overseas reportedly working on similar products.
The company says its systems are affordable, less toxic and much lighter, providing more room for payload on satellites. "This will be the future," co-founder Karanam said.
(Reporting by Sachin Ravikumar and Ismail Shakil in Mumbai; Editing by Euan Rocha and Lincoln Feast.) |
Do You Like Peugeot S.A. (EPA:UG) At This P/E Ratio?
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). To keep it practical, we'll show how Peugeot S.A.'s (EPA:UG) P/E ratio could help you assess the value on offer.Peugeot has a P/E ratio of 6.85, based on the last twelve months. That means that at current prices, buyers pay €6.85 for every €1 in trailing yearly profits.
Check out our latest analysis for Peugeot
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Peugeot:
P/E of 6.85 = €21.68 ÷ €3.16 (Based on the year to December 2018.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E.
Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. Earnings growth means that in the future the 'E' will be higher. That means even if the current P/E is high, it will reduce over time if the share price stays flat. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
Peugeot increased earnings per share by a whopping 46% last year. And its annual EPS growth rate over 3 years is 40%. I'd therefore be a little surprised if its P/E ratio was not relatively high.
One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. The image below shows that Peugeot has a lower P/E than the average (7.5) P/E for companies in the auto industry.
Its relatively low P/E ratio indicates that Peugeot shareholders think it will struggle to do as well as other companies in its industry classification. Since the market seems unimpressed with Peugeot, it's quite possible it could surprise on the upside. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued.
It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. That means it doesn't take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
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.
Peugeot has net cash of €8.6b. This is fairly high at 44% of its market capitalization. That might mean balance sheet strength is important to the business, but should also help push the P/E a bit higher than it would otherwise be.
Peugeot's P/E is 6.9 which is below average (17.9) in the FR market. Not only should the net cash position reduce risk, but the recent growth has been impressive. The relatively low P/E ratio implies the market is pessimistic. Because analysts are predicting more growth in the future, one might have expected to see a higher P/E ratio.You can taker closer look at the fundamentals, here.
When the market is wrong about a stock, it gives savvy investors an opportunity. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
You might be able to find a better buy than Peugeot. 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. |
Boris Johnson's neighbour speaks out after calling the police to domestic disturbance
Conservative party leadership candidate Boris Johnson during the first party hustings at the ICC in Birmingham. (Photo by Ben Birchall/PA Images via Getty Images) The neighbour who called police to screaming and crashing at Boris Johnsons London home has spoken out. Tom Penn said he "felt it was of important public interest" to tell The Guardian about the alleged disturbance at the south London Mr Johnson shares with girlfriend Carrie Symonds property in the early hours of Friday morning. There has been much criticism hurled at Mr Penn and his wife amid fallout from the incident involving the favourite to become the next prime minister . On Saturday, Brexit minister James Cleverly, a supporter of Mr Johnson, said that a "big element" of the story "isn't that there was a heated argument, it's that the police were called". "The police were called by the same person who recorded Boris and gave the story to the Guardian," he tweeted. In a statement reported by The Guardian, Mr Penn defended his decision to reveal details of the incident to the newspaper. "Once clear that no-one was harmed, I contacted the Guardian, as I felt it was of important public interest," he said. "I believe it is reasonable for someone who is likely to become our next prime minister to be held accountable for all of their words, actions and behaviours. "I, along with a lot of my neighbours all across London, voted to remain within the EU. That is the extent of my involvement in politics. "The unpleasant things being said about myself and my partner, and some quite frankly bizarre and fictitious allegations, have been upsetting for not only us, but also for family, friends and fellow Camberwell neighbours, who are currently being harangued by the media. "I would ask that you leave private citizens alone and focus instead on those who have chosen to run for power within the public eye." The Metropolitan Police said they were alerted by a caller who "was concerned for the welfare of a female neighbour". The Guardian newspaper said it had heard a recording of the incident in which Mr Johnson could allegedly be heard saying "get off my f****** laptop" before a loud crashing noise. Story continues Ms Symonds can be heard telling Mr Johnson to "get off me" and "get out of my flat", the newspaper reported. Mr Penn said that he recorded the altercation within his own home. "After a loud scream and banging, followed by silence, I ran upstairs, and with my wife agreed that we should check on our neighbours. "I knocked three times at their front door, but there was no response. I went back upstairs into my flat, and we agreed that we should call the police. "The police arrived within five minutes. Our call was made anonymously and no names were given to the police. They subsequently called back to thank us for reporting, and to let us know that nobody was harmed. "To be clear, the recordings were of the noise within my own home. My sole concern up until this point was the welfare and safety of our neighbours. I hope that anybody would have done the same thing," he said. READ MORE Homeless man dies of '100% burns' after tent he was living in is set on fire Kitten survives 40-mile trip trapped under car bonnet Mr Johnsons approval ratings have suffered in the wake of the domestic disturbance. He has slipped behind Tory leadership rival Jeremy Hunt in the race for No. 10, according to a Survation poll of likely voters. In the days before the police incident, Mr Johnson had a sizeable 27 per cent lead over Hunt, though Hunt is now three points ahead. However, a Sunday Telegraph-commissioned ComRes poll suggests that Mr Johnson has maintained his lead, at 22 points ahead among Tory Councillors. Meanwhile, more than half of Scottish voters would vote to leave the UK if Boris Johnson becomes prime minister, a new poll suggests. A Panelbase survey of 1,024 voters found that, at the moment, 49% of those questioned support Scottish independence (up one point since last month) while 51% are against it. |
Do You Know What Peugeot S.A.'s (EPA:UG) P/E Ratio Means?
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The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we'll show how Peugeot S.A.'s (EPA:UG) P/E ratio could help you assess the value on offer.Peugeot has a price to earnings ratio of 6.85, based on the last twelve months. In other words, at today's prices, investors are paying €6.85 for every €1 in prior year profit.
Check out our latest analysis for Peugeot
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Peugeot:
P/E of 6.85 = €21.68 ÷ €3.16 (Based on the trailing twelve months to December 2018.)
A higher P/E ratio means that buyers have to paya higher pricefor each €1 the company has earned over the last year. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings.
Notably, Peugeot grew EPS by a whopping 46% in the last year. And earnings per share have improved by 40% annually, over the last three years. So we'd generally expect it to have a relatively high P/E ratio.
The P/E ratio indicates whether the market has higher or lower expectations of a company. If you look at the image below, you can see Peugeot has a lower P/E than the average (7.5) in the auto industry classification.
Peugeot's P/E tells us that market participants think it will not fare as well as its peers in the same industry. Many investors like to buy stocks when the market is pessimistic about their prospects. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. In other words, it does not consider any debt or cash that the company may have on the balance sheet. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
With net cash of €8.6b, Peugeot has a very strong balance sheet, which may be important for its business. Having said that, at 44% of its market capitalization the cash hoard would contribute towards a higher P/E ratio.
Peugeot has a P/E of 6.9. That's below the average in the FR market, which is 17.9. The net cash position gives plenty of options to the business, and the recent improvement in EPS is good to see. The below average P/E ratio suggests that market participants don't believe the strong growth will continue. Because analysts are predicting more growth in the future, one might have expected to see a higher P/E ratio.You can taker closer look at the fundamentals, here.
Investors should be looking to buy stocks that the market is wrong about. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What You Should Know About Heidelberger Druckmaschinen Aktiengesellschaft's (FRA:HDD) Financial Strength
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While small-cap stocks, such as Heidelberger Druckmaschinen Aktiengesellschaft (FRA:HDD) with its market cap of €427m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Assessing first and foremost the financial health is vital, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. Nevertheless, potential investors would need to take a closer look, and I suggest youdig deeper yourself into HDD here.
HDD has built up its total debt levels in the last twelve months, from €438m to €465m , which accounts for long term debt. With this growth in debt, the current cash and short-term investment levels stands at €215m , ready to be used for running the business. We note it produced negative cash flow over the last twelve months. As the purpose of this article is a high-level overview, I won’t be looking at this today, but you can take a look at some of HDD’soperating efficiency ratios such as ROA here.
With current liabilities at €834m, the company has been able to meet these obligations given the level of current assets of €1.4b, with a current ratio of 1.64x. The current ratio is calculated by dividing current assets by current liabilities. Usually, for Machinery companies, this is a suitable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
Since total debt levels exceed equity, HDD is a highly leveraged company. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In HDD's case, the ratio of 2.46x suggests that interest is not strongly covered, which means that debtors may be less inclined to loan the company more money, reducing its headroom for growth through debt.
Although HDD’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. Since there is also no concerns around HDD's liquidity needs, this may be its optimal capital structure for the time being. This is only a rough assessment of financial health, and I'm sure HDD has company-specific issues impacting its capital structure decisions. I suggest you continue to research Heidelberger Druckmaschinen to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for HDD’s future growth? Take a look at ourfree research report of analyst consensusfor HDD’s outlook.
2. Valuation: What is HDD 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 HDD 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. |
Market Weekly Review: Record Highs Ahead of Trade Talks
The major U.S. stock market averages gained 2% to 3% across the board this week, as the S&P 500 index set a new record high on Thursday.
The FOMC held firm with interest rates on Wednesday, but traders are saying it’s just a matter of time before the Fed reverses its controversial rate hike from last December. Fed funds futures are now pricing in a 100% chance of a rate cut at the next meeting on July 31, up from just 18% a month ago.
In reaction to the FOMC, Deutsche Bank strategists said:
“Now that the Fed has all but confirmed that it will cut rates in July, the focus will turn to the depth of the easing cycle. We have addressed this issue last week and concluded that relative to recent history, initial domestic conditions were consistent with a shallow cycle. On the other hand, the nature of the current shock (trade war) is different from the usual domestically driven recession. This makes geopolitical risks potentially more relevant than the Fed for growth and inflation. As such, the evolution of the geopolitical risk will be critical in determining the depth of the easing cycle. More immediately, one could assume that the Fed is comfortable with insurance cuts of 50-75bp and ready to embark in a more aggressive easing cycle if the geopolitical tensions lead to a more significant economic downturn.”
While none of the world’s major central banks cut interest rates this week, statements out of England, the EU, and Japan echoed the dovish statement that Chairman Powell and the FOMC issued on Wednesday.
Beyond interest rates, President Trump said on Tuesday that he will have an extended meeting with China’s President Xi, ahead of the G20 summit at the end of the month.
Any deal on that front would likely be welcome news to folks on both sides of the Pacific Ocean. Just Friday, reports were circulating that the U.S. had barred some Chinese computing firms from buying components.
It’s worth noting that other areas of the market are edging up, outside of stocks. Crude oil gained 9% this week, as tensions mounted with Iran, and the price of gold also touched a five-year high.
Knowing what and when to buy can be challenging for any investor. However, the fact remains that attractive investments are out there, if you’re willing to dig a little deeper.
One such energy name that’s worth a closer look is our Stock of the Week below…
Continental Resources is an oil (60% of business) and natural gas (40% of business) exploration firm with sizable assets in the Bakken field of North Dakota and Montana, which account for more than 40% of its total 1.9 million net reservoir acres.
We recently added Continental Resources to ourSmart Investor portfolioand are pleased to see that shares were up 11% this week.
Looking ahead, these gains should keep on coming. Here’s why:
Earlier this month, the company initiated a quarterly dividend of $0.05 a share (0.5% yield). The first payout will be made in November. In addition, the Board of Directors pledged to repurchase $1 billion (24.5 million shares) worth of stock through 2020.
You’re not going to be able to retire off the “starter dividend” that Continental is paying, but it’s a clear sign that management is upbeat about the future.
Another positive sign: Chief Executive Officer and Chairman Harold Hamm is the largest holder of Continental, controlling about 76% of the shares outstanding. Back on June 10, it was reported that Hamm upped the ante and bought another $1.5 million worth of the company on the open market.
Wall Street analysts also agree that the stock has value. The average price target by active analysts is $58.50 a share, or 43% above current levels.
One of those analysts is Morgan Stanley’s Drew Venker, who recently stated:
“The key message is that the buyback takes priority over production growth because the stock is too cheap to ignore. We agree. CLR trades at a 10% discount to the oil weighted peers on 2020e EV/EBITDA, which is unjustified given its outstanding cost structure and sustainable cash returns, in our view. After the pullback, CLR trades at a compelling 4.6x 2020e EBITDA on strip ($53 WTI).”
One big competitive advantage the company has relative to its peers is low production costs. Continental claims that it can post break even cash flow, even if crude oil dips below $40 a barrel. This leverage allows management to generate $325 million of incremental annual cash flow for every future $5 increase in the price per barrel of oil.
Management is looking to monetize this and is projecting consistent production growth over the next five years. In the meantime, the company’s balance sheet has been improving. Net debt is expected to fall to $5 billion this year, from $7.1 billion at the end of 2015.
FYI: This is just 1 of the 20+ stocks selected for the Smart Investor portfolio. That’s where we share more detailed insights on our weekly stock picks. You may also want to learn more about how we use TipRanks indicators to find stocks that are primed to outperform.Discover the Smart Investor portfolio here >> |
How Does Heidelberger Druckmaschinen Aktiengesellschaft (FRA:HDD) Affect Your Portfolio Volatility?
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If you're interested in Heidelberger Druckmaschinen Aktiengesellschaft (FRA:HDD), 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. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The 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 below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
View our latest analysis for Heidelberger Druckmaschinen
Looking at the last five years, Heidelberger Druckmaschinen has a beta of 1.27. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. Based on this history, investors should be aware that Heidelberger Druckmaschinen are likely to rise strongly in times of greed, but sell off in times of fear. Beta is worth considering, but it's also important to consider whether Heidelberger Druckmaschinen is growing earnings and revenue. You can take a look for yourself, below.
Heidelberger Druckmaschinen is a rather small company. It has a market capitalisation of €427m, which means it is probably under the radar of most investors. It takes less money to influence the share price of a very small company. This may explain the excess volatility implied by this beta value.
Since Heidelberger Druckmaschinen tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Heidelberger Druckmaschinen’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for HDD’s future growth? Take a look at ourfree research report of analyst consensusfor HDD’s outlook.
2. Past Track Record: Has HDD 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 HDD's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how HDD 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. |
Is boohoo group plc (LON:BOO) A Volatile Stock?
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If you own shares in boohoo group plc (LON:BOO) 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 sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
See our latest analysis for boohoo group
Zooming in on boohoo group, we see it has a five year beta of 0.87. 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. Beta is worth considering, but it's also important to consider whether boohoo group is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of UK£2.5b, boohoo group is a pretty big company, even by global standards. It is quite likely well known to very many investors. It is a little unusual to see big companies like this trade on low beta values. Oftentimes there is some other clear influence on the share price, overshadowing market volatility.
Since boohoo 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 boohoo group’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for BOO’s future growth? Take a look at ourfree research report of analyst consensusfor BOO’s outlook.
2. Past Track Record: Has BOO 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 BOO's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how BOO 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. |
Should You Be Pleased About The CEO Pay At Alstom SA's (EPA:ALO)
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Henri Poupart-Lafarge became the CEO of Alstom SA (EPA:ALO) in 2016. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Alstom
Our data indicates that Alstom SA is worth €9.3b, and total annual CEO compensation is €3.1m. (This number is for the twelve months until March 2019). Notably, that's an increase of 8.2% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €750k. When we examined a group of companies with market caps over €7.1b, we found that their median CEO total compensation was €3.4m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Henri Poupart-Lafarge is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Alstom, below.
Over the last three years Alstom SA has grown its earnings per share (EPS) by an average of 101% per year (using a line of best fit). It achieved revenue growth of 9.9% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Most shareholders would probably be pleased with Alstom SA for providing a total return of 107% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Henri Poupart-Lafarge is paid around the same as most CEOs of large companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want tocheck for free if Alstom insiders are buying or selling shares.
Important note:Alstom may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Inside Facebook's plan to bring cheap internet to Africa - by surrounding continent with undersea cable
Africa is looking like an increasingly promising place to do business. The International Monetary Fund expects it to come second behind Asia for economic growth this year. The continent is also second only to Asia in terms of population, with more than 1.2 billion people.
But there are big differences between Africa and Asia. In particular,Africa is the last major region where the internet has yet to arrive. Even in the tech-loving under-24 age group, fewer than half of Africans are online: this is not true on any other continent.
For some companies, this is a massive business opportunity. “At Facebook, we have a saying that we’re only 1pc done, and this couldn’t be truer for Facebook in Africa,” says Nunu Ntshingila-Njeke, Facebook’s first head of Africa.
Fewer than 13 per cent of Africans useFacebook, a uniquely low figure. The web giant doesn’t want to sell internet access: it has been very clear that it won’t become a telecommunications company.
Ntshingila-Njeke, as one would expect, has a background in advertising rather than telecoms. But it is very much in Facebook’s interest that internet access should be widespread, high quality and affordable.
Africa faces different internet obstacles to those seen in the West, where the story of internet access was mostly one of “last mile” connections to end users. Today, however, lots of Africans have smartphones and many can access mobile data.
Their difficulty is that African bandwidth is the most expensive in the world. Even for those who can afford it, the internet frequently breaks down across huge swathes of the continent. The underlying trouble in Africa is nowhere near the user, but in the backbone internet behind the telco or ISP.
All over the world, this network backbone is made up primarily of optical fibres, withkey links generally running under the sea via submarine cables. It might seem that global connections aren’t needed for many local tasks, but in the modern internet era this is seldom true.
If one African Facebook user interacts with another, both of them need to be connected to a Facebook data centre. There are no Facebook data centres in Africa.
The problem with submarine cables is that they routinely get broken by storms, seismic events, fishing gear, ships’ anchors etc. This is rarely even noticed in the developed world, as there are many alternative routes. As an example, there are 16 cables linking Europe to North America.
In the developing world there are fewer undersea pathways. Back in 2008, just two breaks caused by a ship’s anchor took down the internet across the Middle East and India. Conspiracy theories still circulate regarding cable breaks that year, though nothing terribly unusual occurred.
Many new cables have been laid since then (as you can see in the timelapse graphic below), but only a few to Africa. Many coastal African nations have only one or two submarine cable landings.
The lack of competition is a major factor making African bandwidth expensive. Monopoly or duopoly suppliers can charge high prices – and often the organisation selling access to a cable landing is the nation’s incumbent telco, meaning that it may try to keep local rivals off the cable altogether.
As an example, in recent times when the South Atlantic 3 (SAT-3) cable was the only one in South Africa, it was reported that Telkom South Africa was quoting prices to its competitors for SAT-3 access that were actually higher than using satellites. Various people including Elon Musk are working on reasonably-priced satellite broadband with acceptable latency, but they aren’t there yet.
Telcos aren’t necessarily unhappy with a situation of high prices, of course. It was also reported at the time of the SAT-3 monopoly that South African ISPs were making 60pc of their revenues from reselling overpriced international bandwidth.
It was noticeable that investors in the Eastern Africa Submarine System cable (EASSy), which opened some years later, included prominent African mobile operators. Among them were Airtel (due to float in London on Friday), Vodafone subsidiary Vodacom and of course Orange, which claims one in 10 Africans as customers and continental revenues of €5.2bn (£4.6bn). Telkom SA is an EASSy owner, too.
The continent remains poorly connected and prices remain high, despite the telcos’ cable involvement. Facebook attempted to drill past the price barrier by paying telcos to provide its services, plus selected other parts of the web, to Africans for free: but this isn’t really an answer.
Any attempt to monetise the supposedly philanthropic “Free Basics” platform would surely attract even more criticism than the idea already has, and the telcos can shut it off at will. The general paucity of African cables also means weak redundancy and poor reliability: most cable landings are branches from just a handful of coastal main lines.
A particular issue is that Africa’s main cables run up and down the coasts but most don’t go around the Cape. This means that if one of Africa’s main coastal cables goes out, the countries south of the break can’t use it.
At the moment, most of the east African coast is served by only two main lines, as is much of the west. A fairly ordinary two-cable break could thus cut off an entire side of the continent. A single outage in the ACE (African Coast to Europe) cable last year caused disruption in 10 countries. All this might have been acceptable once, but things have changed.
Global international bandwidth use surged by 40pc every year from 2012 to 2017, according to TeleGeography. Most of this is caused not by end users, but by the swelling bandwidth requirements of the content and cloud providers.
Amazon, Apple, Facebook, Google and Microsoft are responsible for approximately 70 per cent of the increase, according to Cisco figures.
Major cloud providers need data centres around the world to serve customers. The prospect of such a centre being cut off from the wider network by an event as common as an undersea cable break – or even two – is unacceptable, as it needs to continually exchange massive amounts of data with the cloud’s other centres to keep functioning properly. Facebook with its colossal content delivery network operates in much the same way.
This has already led the web giants to get directly involved in the submarine cable business, upgrading the global backbone to meet the burgeoning requirements of their cloud networks.
Microsoft and Facebook built their MAREA (Spanish for “tide”) cable because the existing transatlantic cables mostly landed in a small area of the northeastern US seaboard, and Hurricane Sandy affected them all. Facebook has also partnered with Google on the new Pacific Light Cable from Los Angeles to Hong Kong. The cloud majors have been active in other recent projects.
Facebook and the other big cloud companies may be keen to do business in Africa, then, but Africa’s submarine cables are not up to the job. There are just two cloud data centres in all of Africa (both Microsoft, predictably in South Africa, one of the few African nations with reasonable undersea connectivity). And bandwidth prices for most Africans remain much too high for the web giants’ liking.
If it’s left to the telcos to build and own the cables, that situation may persist for a long time. So the recent news is that Facebook is in talks to build a new African cable that would “encircle the continent”. That would mean at least three cable options on each coast and the ability to route around the Cape, bringing better reliability.
Three sea routes is regarded as the minimum for a major data centre, so the proposed “Simba” cable would open up Africa for the internet giants at a stroke.
Facebook’s particular scheme may not go ahead, of course. It seems all but certain, however, that some such project will. |
As a young mother dies after refusing chemotherapy, how social media is fuelling the rise of fake cancer cures
Last week, at a converted 18th-century farmhouse near Derby, friends gathered in memory of Katie Britton-Jordan, who died recently after a valiant struggle against breast cancer . She was 38 and leaves a grieving husband, Neil, and Delilah, their five-year-old daughter. Neil, who announced his wifes death on Facebook earlier this month, called for the event to be a celebration of Katies strength and resilience. He asked friends to bring smiles, love, dancing shoes, bubbles and sparklers. By rights, should Katie still be alive? That troubling question is bound to ripple through the minds of her loved ones. When Katies stage 2a triple negative breast cancer was diagnosed in 2016, she was offered a mastectomy, chemotherapy and radiotherapy. But she rejected conventional therapy in favour of a vegan diet of mainly raw fruit and vegetables, supplemented with turmeric, seaweed and spells in a hyperbaric oxygen chamber. She sought help at a clinic in Mexico, where therapies included placing her feet in a basin of water that supposedly drew toxins from her body. Britton-Jordan was an intelligent woman with a long-standing interest in alternative therapies, who made a decision based on her beliefs. But doctors are becoming increasingly concerned at the targeting of vulnerable cancer patients by charlatans peddling well-meaning but useless therapies a problem that is gathering pace thanks to the use of social media, and drawing parallels with the newly emboldened anti-vaccination movement. Patients who refuse conventional treatment and opt for alternatives are two and a half times as likely to die within five years of being diagnosed. David Gorski, an American surgical oncologist who specialises in breast cancer, and a crusader against quackery through his blog, Respectful Insolence, is convinced that if Katie had opted for conventional treatment, she would still be alive. From what Ive learnt about her cancer, I can say with confidence it was quite treatable, he says. It hadnt gone to the lymph nodes. With a combination of surgery plus chemotherapy, she could have expected an 85 per cent chance of long-term survival. Yes, surgery is nasty. Chemotherapy is even worse, I get that. The alternative, however, is near-certain death. Story continues The anti-vaccination lobby has been adept at using social media, with doctors and government agencies caught on the back foot, using old-fashioned means of communication. In England, take-up for the measles, mumps and rubella jab by childrens fifth birthday is down , alarmingly, to 87.2 per cent, below the level needed to provide widespread immunity. Rebekah Smith says she was targeted by companies on social media selling alternative remedies after disclosing her cancer diagnosis Credit: Andrew Fox A similar stream of anti-establishment rhetoric around cancer dismissing chemotherapy as poison seems to be taking hold. Amazon Prime was recently found to be carrying unscientific documentaries purporting to show that cancer might be cured through dietary changes, including the story of a German woman, who claimed to have overcome cancer in 30 days using laetrile, a substance derived from fruit pits, which breaks down into cyanide in the body. Amazon has since taken these documentaries down. Outlandish stories about cures for cancer have been doing the rounds for years, of course, but social media is speeding up dissemination, making it easier than ever to take the message direct to cancer sufferers. Anyone who posts on Instagram or Twitter with the hashtag cancer is likely to find themselves bombarded by news of miracle cures and treatments, from turmeric shakes, green tea and high-dose vitamin C to proteolytic enzyme therapy, cannabis or frankincense oil. There are a lot of people out there selling this kind of quackery, says Catherine Priestley, clinical nurse specialist at the charity Breast Cancer Care, which funds research and supports women through diagnosis and treatment. Its easy to think It cant do me any harm, but just because its natural does not mean it is safe. Priestley draws a clear distinction between complementary therapies like massage and acupuncture, which have been shown to relieve symptoms and side effects from cancer treatment, and alternative therapies, which aim to replace conventional chemo and radiotherapy. Trends come and go: one of the most popular alternatives doing the rounds until recently was the idea that you could cure cancer with maple syrup and bicarbonate of soda (the apparent logic being that cancer cells love sugar and thrive in an acidic environment, so if you took both together the cells would soak up the sugary syrup then be destroyed by the alkaline soda). Now its CBD (cannabis) oil , says Priestley. Dont believe everything you read on the internet, look for evidence and talk to your medical team. If a website says something has been studied, look up that study. It might be that 50 per cent of people got great benefit from a treatment but if that 50 per cent is two out of four people, its meaningless. Rebekah Smith, 35, was diagnosed with breast cancer exactly a year after Katie Britton-Jordan, in July 2017. She was found to have a similar triple negative cancer, but more advanced, at stage 3. After announcing her diagnosis, she says she was deluged with help from friends: People dont know what to say, so they try to offer hope. Its Have you tried honey? What about an alkaline diet? Eat lots of lemons. If you eat loads of turmeric its meant to cure cancer and so on
In the early days, I took natural honey every day, tried a spoonful of turmeric and thought if it works, it works, but in my head I knew that science was my best warrior. Smith, from Leicester, who has two sons, Louis, 3, and Henry, 5, had surgery to remove the tumour, then six rounds of chemotherapy followed by radiotherapy. Once she started posting about her cancer on social media, the messages began. Lots of stuff from people trying to sell you vitamins. They say all sorts of things: other people have taken it, and its done this and done that. Its hard to tell, is it a company targeting me to purely make cash, because I am vulnerable? Or someone who genuinely wants to help me? The messages always seem to come second-hand, from someone who knows someone who took something. Its never the person themselves, saying I took CBD oil and its made my cancer shrink. Nine months on from her diagnosis, Rebekah was cancer-free and has since run a marathon. Sophie Sabbage, author of The Cancer Whisperer, was diagnosed with incurable lung cancer that had spread to her bones and brain, five years ago. She has had both conventional and complementary treatment. There are some dodgy people out there, but there are also some amazing people, doing amazing things.," she says. "The trouble is that, as a patient, you get caught in the crossfire. Conventional oncologists will say Dont bother with all that quackery. Natural practitioners will say Dont do chemo, it will kill you. Theyre both taking a position and you have to somehow make decisions with very little help. Sabbage runs a Facebook group for fellow sufferers and says she has to be extremely strict about who is allowed to join, as people keep attempting to use the group to sell remedies. The members of her group swap experiences and advice. We can ask each other have you tried this?. In general, what Id say is: do your homework. Dont just say yes because someone is promising you something. In fact, if they are promising, say no. Katie Britton-Jordan was well aware that friends and family were worried. She admitted, two years ago, that she was getting almost daily messages pleading with her to try the conventional path. After she died, her husband, Neil, said: I know some people may have their own opinions on what Katie should or should not have done, but whatever that is, it does not alter her bravery and dignity over the last three years. No one will know how things might otherwise have been but it is a tragedy for him, and their little daughter, that she is gone. |
Is Carlsberg A/S (CPH:CARL B) Trading At A 35% Discount?
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How far off is Carlsberg A/S (CPH:CARL B) 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. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. 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 Carlsberg
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (DKK, Millions)", "2019": "DKK7.00k", "2020": "DKK7.26k", "2021": "DKK7.69k", "2022": "DKK8.93k", "2023": "DKK9.40k", "2024": "DKK9.75k", "2025": "DKK10.01k", "2026": "DKK10.20k", "2027": "DKK10.35k", "2028": "DKK10.45k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x16", "2020": "Analyst x16", "2021": "Analyst x12", "2022": "Analyst x3", "2023": "Analyst x2", "2024": "Est @ 3.7%", "2025": "Est @ 2.66%", "2026": "Est @ 1.92%", "2027": "Est @ 1.41%", "2028": "Est @ 1.05%"}, {"": "Present Value (DKK, Millions) Discounted @ 4.98%", "2019": "DKK6.67k", "2020": "DKK6.59k", "2021": "DKK6.65k", "2022": "DKK7.35k", "2023": "DKK7.37k", "2024": "DKK7.28k", "2025": "DKK7.12k", "2026": "DKK6.92k", "2027": "DKK6.68k", "2028": "DKK6.43k"}]
Present Value of 10-year Cash Flow (PVCF)= DKK69.06b
"Est" = FCF growth rate estimated by Simply Wall St
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (0.2%) 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 5%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ø10b × (1 + 0.2%) ÷ (5% – 0.2%) = ø220b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= DKKø220b ÷ ( 1 + 5%)10= DKK135.14b
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 DKK204.21b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of DKK1354.19. Relative to the current share price of DKK874.6, the company appears quite good value at a 35% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. 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 Carlsberg 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 5%, 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 Carlsberg, I've compiled three additional aspects you should look at:
1. Financial Health: Does CARL B 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 CARL B'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 CARL B? 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 DK 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. |
Does YouGov (LON:YOU) Deserve A Spot On Your Watchlist?
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It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. And in their study titledWho Falls Prey to the Wolf of Wall Street?'Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inYouGov(LON:YOU). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
Check out our latest analysis for YouGov
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. As a tree reaches steadily for the sky, YouGov's EPS has grown 33% each year, compound, over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The good news is that YouGov is growing revenues, and EBIT margins improved by 4.2 percentage points to 14%, over the last year. Ticking those two boxes is a good sign of growth, in my book.
In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image.
In investing, as in life, the future matters more than the past. So why not check out thisfreeinteractive visualization of YouGov'sforecastprofits?
I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. So it is good to see that YouGov insiders have a significant amount of capital invested in the stock. With a whopping UK£42m worth of shares as a group, insiders have plenty riding on the company's success. That's certainly enough to make me think that management will be very focussed on long term growth.
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. A brief analysis of the CEO compensation suggests they are. For companies with market capitalizations between UK£315m and UK£1.3b, like YouGov, the median CEO pay is around UK£892k.
YouGov offered total compensation worth UK£566k to its CEO in the year to July 2018. That comes in below the average for similar sized companies, and seems pretty reasonable to me. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense.
For growth investors like me, YouGov's raw rate of earnings growth is a beacon in the night. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. This may only be a fast rundown, but the takeaway for me is that YouGov is worth keeping an eye on. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if YouGov is trading on a high P/E or a low P/E, relative to its industry.
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Illiquid assets held by Woodford's UK fund pose hurdle to reopening
By Simon Jessop, Carolyn Cohn and Muvija M
LONDON (Reuters) - Trading in Neil Woodford's 3.7 billion pound ($4.69 billion) Equity Income Fund may not be reopened swiftly after it was suspended on June 3 because of the illiquid assets it holds.
The fund's authorized owner, Link Fund Solutions, must update investors on whether it intends to keep the fund closed to trading at least every 28 days. The first deadline is July 1.
The main reason trading was suspended was to allow time for the fund to sell its stakes in unlisted and illiquid assets. This is also the main factor determining when it can reopen.
Woodford had been trying to sell those stakes before the suspension. His plans included moving five holdings into his listed Woodford Patient Capital Trust (WPCT) in a March share swap. But redemptions outpaced that effort.
Britain's markets regulator, the Financial Conduct Authority (FCA), said at the time of the suspension that a fifth of the fund's assets were in such illiquid assets.
The illiquid assets include preference shares in four firms listed on the Guernsey stock exchange that have never traded.
FCA data show how difficult it will be to reopen the fund quickly, indicating that just 8% of the holdings could be sold in a week. The rest are expected to take much longer to sell.
The data showed selling 29% of the fund's holdings could take up to a month, about 30% would require six months and another third would need from six months to more than a year.
"I doubt very much whether that fund will be unsuspended until much later this year, possibly not until next year," said Chris Bailey, analyst at Raymond James.
Tracking Woodford's handling of the process has been made harder since he stopped publishing a list of holdings on the company website.
A Woodford spokesman told Reuters on June 13 that the frozen fund had sold 100 million pounds in more liquid listed British stocks. He declined to offer an update when contacted on June 21.
According to the 2018 annual report, the fund had stakes in 24 unlisted or Guernsey-listed companies, excluding those subsequently removed in the share swap. The companies equated to 18.26% of the portfolio with a value of 850 million pounds, based on assets under management at the end of 2018.
The fund's investment include stakes in 14 unlisted healthcare or biotechnology companies.
($1 = 0.7895 pounds)
(Additional reporting by Samantha Machado; Editing by Edmund Blair) |
What Kind Of Investor Owns Most Of GLI Finance Limited (LON:GLIF)?
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Every investor in GLI Finance Limited (LON:GLIF) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.
GLI Finance is a smaller company with a market capitalization of UK£15m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about GLIF.
Check out our latest analysis for GLI Finance
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 34% of GLI Finance. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of GLI Finance, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in GLI Finance. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
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.
We can see that insiders own shares in GLI Finance Limited. It has a market capitalization of just UK£15m, and insiders have UK£648k worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checkingif those insiders have been selling.
The general public holds a 29% stake in GLIF. 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.
Our data indicates that Private Companies hold 32%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future.
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. |
A Look At The Intrinsic Value Of NTS ASA (OB:NTS)
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Does the June share price for NTS ASA (OB:NTS) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the foreast future cash flows of the company and discounting them back to today's value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
See our latest analysis for NTS
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF (NOK, Millions)", "2019": "NOK118.00", "2020": "NOK12.20", "2021": "NOK350.00", "2022": "NOK440.00", "2023": "NOK361.00", "2024": "NOK313.03", "2025": "NOK285.56", "2026": "NOK269.53", "2027": "NOK260.36", "2028": "NOK255.54"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x1", "2021": "Analyst x1", "2022": "Analyst x1", "2023": "Analyst x1", "2024": "Est @ -13.29%", "2025": "Est @ -8.77%", "2026": "Est @ -5.61%", "2027": "Est @ -3.4%", "2028": "Est @ -1.85%"}, {"": "Present Value (NOK, Millions) Discounted @ 7.58%", "2019": "NOK109.68", "2020": "NOK10.54", "2021": "NOK281.09", "2022": "NOK328.47", "2023": "NOK250.50", "2024": "NOK201.90", "2025": "NOK171.21", "2026": "NOK150.21", "2027": "NOK134.87", "2028": "NOK123.04"}]
Present Value of 10-year Cash Flow (PVCF)= NOK1.76b
"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 1.8%. We discount the terminal cash flows to today's value at a cost of equity of 7.6%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = øre256m × (1 + 1.8%) ÷ (7.6% – 1.8%) = øre4.5b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= NOKøre4.5b ÷ ( 1 + 7.6%)10= NOK2.15b
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 NOK3.91b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of NOK53.77. Compared to the current share price of NOK63, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
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 NTS as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.6%, which is based on a levered beta of 0.977. 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 NTS, I've put together three pertinent aspects you should further research:
1. Financial Health: Does NTS 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 NTS'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 NTS? 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 OB 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. |
Does NTS (OB:NTS) Deserve A Spot On Your Watchlist?
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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.
In contrast to all that, I prefer to spend time on companies likeNTS(OB:NTS), 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. 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 NTS
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That makes EPS growth an attractive quality for any company. NTS managed to grow EPS by 12% per year, over three years. That growth rate is fairly good, assuming the company can keep it up.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While NTS did well to grow revenue over the last year, EBIT margins were dampened at the same time. So if EBIT margins can stabilize, this top-line growth should pay off for shareholders.
You can take a look at the company's revenue and earnings growth trend, in the chart below. 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 NTS'sforecastprofits?
I like company leaders to have some skin in the game, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. So it is good to see that NTS insiders have a significant amount of capital invested in the stock. To be specific, they have øre416m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Those holdings account for over 9.1% of the company; visible skin in the game.
One positive for NTS is that it is growing EPS. That's nice to see. Just as polish makes silverware pop, the high level of insider ownership enhances my enthusiasm for this growth. The combination sparks joy for me, so I'd consider keeping the company on a watchlist. If you think NTS might suit your style as an investor, you could go straight to its annual report, or you could first checkour discounted cash flow (DCF) valuation for the company.
Although NTS certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then thisfreelist of growing companies that insiders are buying, could be exactly what you're looking for.
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. |
What Type Of Shareholder Owns Team17 Group PLC's (LON:TM17)?
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A look at the shareholders of Team17 Group PLC (LON:TM17) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
With a market capitalization of UK£365m, Team17 Group is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about TM17.
Check out our latest analysis for Team17 Group
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.
As you can see, institutional investors own 64% of Team17 Group. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Team17 Group's historic earnings and revenue, below, but keep in mind there's always more to the story.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Team17 Group is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
It seems insiders own a significant proportion of Team17 Group PLC. It has a market capitalization of just UK£365m, and insiders have UK£83m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
With a 13% ownership, the general public have some degree of sway over TM17. 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.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts.
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. |
If You Had Bought Team17 Group (LON:TM17) Stock A Year Ago, You Could Pocket A 13% Gain Today
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If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. To wit, theTeam17 Group PLC(LON:TM17) share price is 13% higher than it was a year ago, much better than the market return of around -3.8% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.
See our latest analysis for Team17 Group
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the last year Team17 Group grew its earnings per share (EPS) by 40%. It's fair to say that the share price gain of 13% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Team17 Group as it was before. This could be an opportunity.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Team17 Group has improved its bottom line lately, but is it going to grow revenue? You could check out thisfreereport showing analyst revenue forecasts.
Team17 Group shareholders should be happy with thetotalgain of 13% over the last twelve months. And the share price momentum remains respectable, with a gain of 22% in the last three months. This suggests the company is continuing to win over new investors. Before forming an opinion on Team17 Group you might want to consider these3 valuation metrics.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB 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. |
Why We Think Open joint stock company Solikamsk magnesium works (MCX:MGNZ) Could Be Worth Looking At
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Attractive stocks have exceptional fundamentals. In the case of Open joint stock company Solikamsk magnesium works (MCX:MGNZ), 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. For those interested in understanding where the figures come from and want to see the analysis, take a look at thereport on Solikamsk magnesium works here.
MGNZ is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. MGNZ's has produced operating cash levels of 1.55x total debt over the past year, which implies that MGNZ's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. MGNZ'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 MGNZ'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, MGNZ's share price is trading below the group's average. This further reaffirms that MGNZ is potentially undervalued.
For Solikamsk magnesium works, I've compiled three fundamental factors you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for MGNZ’s future growth? Take a look at ourfree research report of analyst consensusfor MGNZ’s outlook.
2. Historical Performance: What has MGNZ'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 MGNZ? 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. |
Why Open joint stock company Solikamsk magnesium works (MCX:MGNZ) Could Have A Place In Your Portfolio
Want to participate in a short 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 Open joint stock company Solikamsk magnesium works ( MCX:MGNZ ), it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Solikamsk magnesium works here . Flawless balance sheet and undervalued MGNZ's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that MGNZ has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. MGNZ seems to have put its debt to good use, generating operating cash levels of 1.55x 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. MGNZ's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if MGNZ'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, MGNZ's share price is trading below the group's average. This supports the theory that MGNZ is potentially underpriced. MISX:MGNZ Price Estimation Relative to Market, June 23rd 2019 Next Steps: For Solikamsk magnesium works, I've put together three relevant factors you should further examine: Future Outlook : What are well-informed industry analysts predicting for MGNZ’s future growth? Take a look at our free research report of analyst consensus for MGNZ’s outlook. Historical Performance : What has MGNZ'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 MGNZ? 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. |
Should Kerry Group plc's (ISE:KRZ) Recent Earnings Decline Worry You?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Kerry Group plc ( ISE:KRZ ) useful as an attempt to give more color around how Kerry Group is currently performing. View our latest analysis for Kerry Group How Well Did KRZ Perform? KRZ's trailing twelve-month earnings (from 31 December 2018) of €541m has declined by -8.2% 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 17%, indicating the rate at which KRZ is growing has slowed down. Why is this? Well, let’s take a look at what’s going on with margins and whether the entire industry is feeling the heat. ISE:KRZ Income Statement, June 23rd 2019 In terms of returns from investment, Kerry Group has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. However, its return on assets (ROA) of 7.1% exceeds the IE Food industry of 5.6%, indicating Kerry Group has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Kerry Group’s debt level, has declined over the past 3 years from 12% to 11%. What does this mean? Though Kerry Group's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have unpredictable earnings, can have many factors impacting its business. You should continue to research Kerry Group to get a more holistic view of the stock by looking at: Future Outlook : What are well-informed industry analysts predicting for KRZ’s future growth? Take a look at our free research report of analyst consensus for KRZ’s outlook. Financial Health : Are KRZ’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here . Other High-Performing Stocks : Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here . NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2018. 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 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. |
Homeless man dies of '100% burns' after tent he was living in is set on fire
A man has died after the tent he was living in was torched while he was inside it Police are trying to identify a man who died of ‘100% burns’ when the tent he was living in was set on fire. The man, thought to be in his 40s and from Romania, was living under tarpaulin in east London. A second victim was left with critical injuries in the blaze and has since been put into an induced coma in hospital. It is believed the men had been sleeping rough together in Wanstead . Investigators from the Metropolitan Police are now attempting to identify the victims. Detective Chief Inspector Paul Considine said: ”This was a horrific incident which has caused one man to lose his life, and may claim the life of another.” Firefighters, police and paramedics scrambled to the scene of the fire on scrubland near the southbound carriageway of the A406 at around 11.45pm on Tuesday 18 June. Two men have been charged with murder, attempted murder and arson with intent to endanger life following the fire. READ MORE Boris Johnson's neighbour speaks out after calling the police to domestic disturbance Kitten survives 40-mile trip trapped under car bonnet |
Is Midway Holding AB (publ)'s (STO:MIDW B) ROE Of 0.5% Concerning?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Midway Holding AB (publ) (STO:MIDW B), by way of a worked example.
Our data showsMidway Holding has a return on equity of 0.5%for the last year. Another way to think of that is that for every SEK1 worth of equity in the company, it was able to earn SEK0.0048.
View our latest analysis for Midway Holding
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Midway Holding:
0.5% = kr2.5m ÷ kr477m (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. 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 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.
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. 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 Midway Holding has a lower ROE than the average (8.3%) in the Industrials industry classification.
Unfortunately, that's sub-optimal. 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 might be wise tocheck if insiders have been selling.
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 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. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
Midway Holding has a debt to equity ratio of 0.53, 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 useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking thisfreethisdetailed 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.
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. |
Based On Its ROE, Is Midway Holding AB (publ) (STO:MIDW B) A High Quality Stock?
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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). To keep the lesson grounded in practicality, we'll use ROE to better understand Midway Holding AB (publ) (STO:MIDW B).
Over the last twelve monthsMidway Holding has recorded a ROE of 0.5%. One way to conceptualize this, is that for each SEK1 of shareholders' equity it has, the company made SEK0.0048 in profit.
Check out our latest analysis for Midway Holding
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Midway Holding:
0.5% = kr2.5m ÷ kr477m (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. 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 yearly profit. 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. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Midway Holding has a lower ROE than the average (8.3%) in the Industrials industry classification.
Unfortunately, that's sub-optimal. 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 case of the first and second options, the ROE will reflect this use of cash, for growth. 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.
While Midway Holding does have some debt, with debt to equity of just 0.53, we wouldn't say debt is excessive. Its ROE is rather low, and it does use some debt, albeit not much. That's not great to see. 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 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 Midway Holding 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. |
Is Kingspan Group plc's (ISE:KRX) Balance Sheet A Threat To Its Future?
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Kingspan Group plc (ISE:KRX), a large-cap worth €8.6b, comes to mind for investors seeking a strong and reliable stock investment. Doing business globally, large caps tend to have diversified revenue streams and attractive capital returns, making them desirable investments for risk-averse portfolios. However, the health of the financials determines whether the company continues to succeed. Let’s take a look at Kingspan Group’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto KRX here.
See our latest analysis for Kingspan Group
KRX has built up its total debt levels in the last twelve months, from €663m to €1.0b , which accounts for long term debt. With this growth in debt, KRX's cash and short-term investments stands at €295m to keep the business going. Moreover, KRX has generated cash from operations of €438m over the same time period, leading to an operating cash to total debt ratio of 43%, indicating that KRX’s debt is appropriately covered by operating cash.
At the current liabilities level of €1.0b, the company has been able to meet these commitments with a current assets level of €1.6b, leading to a 1.59x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. Usually, for Building companies, this is a suitable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
With a debt-to-equity ratio of 57%, KRX can be considered as an above-average leveraged company. This is common amongst large-cap companies because debt can often be a less expensive alternative to equity due to tax deductibility of interest payments. Consequently, larger-cap organisations tend to enjoy lower cost of capital as a result of easily attained financing, providing an advantage over smaller companies. We can test if KRX’s debt levels are sustainable by measuring interest payments against earnings of a company. Net interest should be covered by earnings before interest and tax (EBIT) by at least three times to be safe. For KRX, the ratio of 23.17x suggests that interest is amply covered. High interest coverage serves as an indication of the safety of a company, which highlights why many large organisations like KRX are considered a risk-averse investment.
Although KRX’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. Since there is also no concerns around KRX's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for KRX's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Kingspan Group to get a more holistic view of the large-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for KRX’s future growth? Take a look at ourfree research report of analyst consensusfor KRX’s outlook.
2. Valuation: What is KRX 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 KRX 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. |
Do Institutions Own National Grid plc (LON:NG.) Shares?
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Every investor in National Grid plc (LON:NG.) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
National Grid is a pretty big company. It has a market capitalization of UK£29b. Normally institutions would own a significant portion of a company this size. 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 NG..
See our latest analysis for National Grid
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that National Grid does have institutional investors; and they hold 80% of the stock. 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 National Grid's earnings history, below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in National Grid. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our most recent data indicates that insiders own less than 1% of National Grid plc. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amount to less than 1%, we can see that board members collectively own UK£16m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You canclick here to see if insiders have been buying or selling.
The general public holds a 20% stake in NG.. 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.
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.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
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. |
Read This Before Buying Norish Plc (LON:NSH) For Its Dividend
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Dividend paying stocks like Norish Plc (LON:NSH) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter.
A slim 2.1% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Norish could have potential. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Norish paid out 32% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. The company paid out 51% of its free cash flow, which is not bad per se, but does start to limit the amount of cash Norish has available to meet other needs. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Remember, you can always get a snapshot of Norish's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of Norish's dividend payments. This dividend has been unstable, which we define as having fallen by at least 20% one or more times over this time. During the past ten-year period, the first annual payment was UK£0.015 in 2009, compared to UK£0.015 last year. Dividend payments have grown at less than 1% a year over this period.
Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent.
With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? In the last five years, Norish's earnings per share have shrunk at approximately 9.8% per annum. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation.
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. Norish's dividend payout ratios are within normal bounds, although we note its cash flow is not as strong as the income statement would suggest. Earnings per share are down, and Norish's dividend has been cut at least once in the past, which is disappointing. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Norish out there.
See if management have their own wealth at stake, by checking insider shareholdings inNorish 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. |
Could JPJ Group plc's (LON:JPJ) Investor Composition Influence The Stock Price?
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A look at the shareholders of JPJ Group plc (LON:JPJ) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
JPJ Group is a smaller company with a market capitalization of UK£551m, 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 own shares in the company. Let's delve deeper into each type of owner, to discover more about JPJ.
Check out our latest analysis for JPJ Group
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.
JPJ Group already has institutions on the share registry. Indeed, they own 68% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see JPJ Group's historic earnings and revenue, below, but keep in mind there's always more to the story.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. It would appear that 8.1% of JPJ Group shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
We can see that insiders own shares in JPJ Group plc. In their own names, insiders own UK£47m worth of stock in the UK£551m company. This shows at least some alignment. You canclick here to see if those insiders have been buying or selling.
The general public, with a 11% 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.
It appears to us that public companies own 4.8% of JPJ. We can't be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts.
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 It Time To Consider Buying Getinge AB (STO:GETI B)?
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Getinge AB (STO:GETI B), which is in the medical equipment business, and is based in Sweden, led the OM gainers with a relatively large price hike in the past couple of weeks. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Getinge’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for Getinge
Good news, investors! Getinge is still a bargain right now. My valuation model shows that the intrinsic value for the stock is SEK187.7, but it is currently trading at kr150 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Getinge’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Getinge, it is expected to deliver a relatively unexciting top-line growth of 7.5% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
Are you a shareholder?Even though growth is relatively muted, since GETI B is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on GETI B for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GETI B. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Getinge. You can find everything you need to know about Getinge inthe latest infographic research report. If you are no longer interested in Getinge, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
A Spotlight On Hikma Pharmaceuticals PLC's (LON:HIK) Fundamentals
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Attractive stocks have exceptional fundamentals. In the case of Hikma Pharmaceuticals PLC (LON:HIK), there's is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at thereport on Hikma Pharmaceuticals here.
HIK'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 key determinant of the company’s health. HIK appears to have made good use of debt, producing operating cash levels of 0.68x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
HIK is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Hikma Pharmaceuticals, I've compiled three important aspects you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for HIK’s future growth? Take a look at ourfree research report of analyst consensusfor HIK’s outlook.
2. Historical Performance: What has HIK'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 HIK? 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. |
India rejects U.S. report on attacks on minority Muslims
NEW DELHI (Reuters) - India on Sunday rejected a U.S. State Department's annual report on religious freedom that raised questions about the government's inability to curb violent attacks on the country's minority Muslims. Preparing for a visit by U.S. Secretary of State Mike Pompeo on Tuesday, India's foreign ministry issued a stiff rejoinder to the U.S. criticism. "India is proud of its secular credentials, its status as the largest democracy and a pluralistic society with a longstanding commitment to tolerance and inclusion," Raveesh Kumar, the ministry's spokesman, said in a statement. The State Department report, released on Friday, said some senior officials from Prime Minister Narendra Modi's ruling Hindu nationalist Bharatiya Janata Party (BJP) last year had made "inflammatory speeches" against religious minorities. Kumar said India's constitution guarantees fundamental rights and religious freedom of all citizens, including its minority communities. Muslims make up 14 percent of India's 1.3 billion people. "We see no locus standi for a foreign entity to pronounce on the state of our citizens’ constitutionally protected rights," Kumar said. The U.S. State Department report examined attacks on minorities during 2018. "Mob attacks by violent extremist Hindu groups against minority communities, especially Muslims, continued throughout the year amid rumours that victims had traded or killed cows for beef," the report said. It also noted reports by non-governmental organisations that the government sometimes failed to act on mob attacks on religious minorities, marginalised communities, and critics of the government. While in New Delhi, Pompeo is expected to hold talks aimed at laying the ground for a meeting between U.S. President Donald Trump and Modi during a Group of 20 summit in Japan later next week. (This story was refiled to fix grammar in quote in third paragraph) (Reporting by Mayank Bhardwaj; Editing by Simon Cameron-Moore) |
23 films to watch out for this summer, from Spider-Man: Far From Home to Midsommar
Now that the record-breaking Avengers: Endgame has fallen from cinema screens, film studios are flooding multiplexes with their summer offerings, hoping to earn even a fraction of the Marvel behemoth's box-office takings. Disney – who have already had a stellar year thanks to Captain Marvel, Dumbo and Aladdin – have one more live-action adaptation to release: their new version of The Lion King . Before that, though, comes the fourth film in the Toy Story series. There's also another Marvel film coming – Spiderman: Far From Home , which will take place after the catastrophic events of Endgame . Other big-budget studio releases include the Fast and Furiou s spin-off Hobbs and Shaw , the Danny Boyle-directed Yesterday , and Pennywise's return in It: Chapter Two . On the other end of the spectrum, there are some very exciting minor releases coming this summer. Midsommar , the new horror from Hereditary director Ari Aste, looks set to terrify cinemagoers. Peter Strickland directs Game of Thrones ' Gwendoline Christie in the chilling In Fabric . And Antonio Banderas stars in Pedro Almodóvar's Pain & Glory , which won rave reviews at Cannes film festival. Speaking of Cannes, the festival saw Quentin Tarantino premiere his latest film, Once Upon a Time in Hollywood, which has already been heralded as one of the director's most controversial films yet. Click through the gallery below to see the 23 films that you should watch this summer. Other galleries to scroll through: 37 best films twists of all time, explained 35 brilliant films that bombed at the box office 34 actors who regret big roles 45 films you never realised were banned 37 actors who almost died on set 20 directors who hate their own films 37 horror films that are genuinely scary |
Should You Be Holding Precio Fishbone AB (publ) (STO:PRCO B)?
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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 Precio Fishbone AB (publ) (STO:PRCO B), it is a company with great financial health as well as a a great track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at thereport on Precio Fishbone here.
Over the past year, PRCO B has grown its earnings by 62%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, PRCO B also outperformed its industry, which delivered a growth of 18%. This is what investors like to see! PRCO B's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that PRCO B manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at PRCO B's capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. PRCO B has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For Precio Fishbone, I've put together three key aspects you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for PRCO B’s future growth? Take a look at ourfree research report of analyst consensusfor PRCO B’s outlook.
2. Valuation: What is PRCO B 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 PRCO B is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of PRCO B? 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 E.ON SE (FRA:EOAN) A Smart Pick For Income Investors?
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Dividend paying stocks like E.ON SE (FRA:EOAN) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter.
In this case, E.ON likely looks attractive to dividend investors, given its 4.6% dividend yield and nine-year payment history. We'd agree the yield does look enticing. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Explore this interactive chart for our latest analysis on E.ON!
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 40% of E.ON's profits were paid out as dividends in the last 12 months. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Unfortunately, while E.ON pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
As E.ON has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. E.ON has net debt of 1.98 times its earnings before interest, tax, depreciation and amortisation (EBITDA), which is generally seen as an acceptable level of debt.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. With EBIT of 3.40 times its interest expense, E.ON's interest cover is starting to look a bit thin.
Consider gettingour latest analysis on E.ON's financial position here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Looking at the last decade of data, we can see that E.ON paid its first dividend at least 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 €1.50 in 2010, compared to €0.46 last year. The dividend has fallen 69% over that period.
We struggle to make a case for buying E.ON for its dividend, given that payments have shrunk over the past nine years.
Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. E.ON's earnings per share have been essentially flat over the past five years. Over the long term, steady earnings per share is a risk as the value of the dividends can be reduced by inflation. A payout ratio below 50% leaves ample room to reinvest in the business, and provides finanical flexibility. However, earnings per share are unfortunately not growing much. Might this suggest that the company should pay a higher dividend instead?
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. E.ON has a low payout ratio, which we like, although it paid out virtually all of its generated cash. Unfortunately, earnings growth has also been mediocre, and the company has cut its dividend at least once in the past. Ultimately, E.ON comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 19 E.ON analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
JP Morgan: Our 3 Top Energy Stock Picks Right Now
JP Morgan has just held its fourth annual Energy Conference in New York with ~140 energy companies participating. It hasn’t been an easy time for energy stocks recently, and the firm noted: “The conference boosted our confidence that the leading companies are taking the austerity mantle seriously.” Nonetheless, there are some gems to be found- if you know where to look.
Luckily for investors, following the conference, the firm revealed its top energy stock picks to buy now. Here we take a closer look at three of the most intriguing stocks highlighted by the firm. Note that two of these stocks also boast a ‘Strong Buy’ consensus from the Street. That’s based on all the ratings received by these stocks over the last three months.
With operations spanning 48 countries, TechnipFMC is a global oil and gas company that provides complete project life cycle services. Essentially, FTI covers three distinct segments: subsea, offshore/ onshore and surface projects. After a disappointing 2018, shares have rallied so far this year- rewarding investors with a 27% gain year-to-date.
According to JP Morgan “LNG [liquid natural gas] continues to look like the one proper cycle to which investors should have exposure, and though options in our coverage are limited, we came away from the conference with incremental confidence in our OW FTI call.” And as the firm added, it helps when a +$1bn award hits mid-event!
On June 18 Anadarko Petroleum (APC) awarded Technip a number of subsea contracts for its Mozambique Golfinho/Atum development. This will be Mozambique’s first onshore LNG development, and FTI will now also open a new office in Mozambique to manage the operation.
Indeed, the future appears bright for Technip stock. That's thanks to the company's unique integrated model. The company reduces costs for customers by optimizing subsea architecture and integrating execution (i.e. engineering, procurement, construction, and installation.)
“E&P openness to new commercial models for offshore is accelerating, and FTI appears a primary beneficiary” says JP Morgan. “WithBHGEhighlighting its Subsea Connect andSLBdoing the same for the Subsea Integrated Alliance, it’s clear to us the market is moving towards FTI’s integrated model.”
Net-net, “TechnipFMC continues to stand out to us as the provider both growing the pie and taking a bigger slice” concludes the firm. Indeed, FTI boasts a ‘Strong Buy’ Street consensus, with 9 recent buy ratings vs just 1 hold rating. Meanwhile the $29 average analyst price target indicates upside potential of 19% from current levels.
One of the world's largest oil field service companies, Halliburton sums up its operations as helping customers maximize value throughout the lifecycle of the reservoir. However, that strategy has not delivered much value for investors in recent years. Right now HAL is trading down 14% year-to-date, and that’s on the back of further losses in both 2017 and 2018.
Not that this has deterred JP Morgan. The firm writes “Shares of HAL have come under fire (alongside the group) as buy side concerns grow regarding its ability to deliver on the Street’s 2H19 bar. After giving back -27% since 4/17, it appears to us much of the impact of a shortfall in 4Q19 C&P [completion and production] is already reflected in the stock.”
And the firm reminds investors why Halliburton deserves a closer look: “We continue to view HAL as relatively unique among our large cap stocks for its potential to create a step-change in FCF generation in 2020 through modestly higher profitability and measured capital spending.”
As a result, the firm reiterates its top pick status for HAL stock. That’s with a $34 price target (49% upside potential). In short, this is the largest and most liquid US completions-levered stock, and effectively the only remaining OFS (oilfield services) pure play large cap says JP Morgan.
Clearly the rest of the Street agrees. We can see that HAL shows a ‘Strong Buy’ analyst consensus. In the last three months, the stock has received 6 buy ratings and just 1 hold rating. With shares down 50% in the last year, the average analyst price target now suggests upside potential of over 75%.
Welcome to JP Morgan’s third top energy stock pick. If you haven’t heard of MRC Global before, this is a company that distributes pipe, valve and fitting (PVF), products to the energy and industrial markets. "The continued commitment to discipline on working capital management and buying back shares keep MRC standing out within our smid-caps" explained JP Morgan post-conference.
Indeed, shares have performed strongly so far this year, recording an impressive 30% gain year-to-date. The company rallied following better-than-expected Q1 earnings. MRC revealed that it expects sales in Q2 to improve over Q1 by 6% to 9% and expects growth in the second half of the year as compared to the first half of the year.
“As the leading distributor of PVF to the energy industry, we are well-positioned with our customers. We're typically the large players in each of our diversified end-market sectors. This diversification provides us with a certain level of stability, gives us more opportunities to grow and provide some resilience to the inherent market changes” says CEO Andrew Lane.
However only two other analysts have recently published MRC ratings- and both these analysts rate the stock a ‘Hold.’ Stifel Nicolaus analystNathan Jonesdowngraded MRC a couple of months ago, citing valuation. Nonetheless his $20 price target still indicates 25% upside potential from the current share price.
Find further investing inspiration with the Analysts' Top Stocks tool |
Here's How We Evaluate E.ON SE's (FRA:EOAN) Dividend
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Dividend paying stocks like E.ON SE (FRA:EOAN) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.
In this case, E.ON likely looks attractive to dividend investors, given its 4.6% dividend yield and nine-year payment history. It sure looks interesting on these metrics - but there's always more to the story . Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Explore this interactive chart for our latest analysis on E.ON!
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 40% of E.ON's profits were paid out as dividends in the last 12 months. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Plus, there is room to increase the payout ratio over time.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Unfortunately, while E.ON pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. It's positive to see that E.ON's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
As E.ON has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. With net debt of 1.98 times its earnings before interest, tax, depreciation and amortisation (EBITDA), E.ON has an acceptable level of debt.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 3.40 times its interest expense, E.ON's interest cover is starting to look a bit thin.
Remember, you can always get a snapshot of E.ON's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Looking at the last decade of data, we can see that E.ON paid its first dividend at least 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 €1.50 in 2010, compared to €0.46 last year. This works out to a decline of approximately 69% over that time.
When a company's per-share dividend falls we question if this reflects poorly on either the business or management. Either way, we find it hard to get excited about a company with a declining dividend.
Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. While there may be fluctuations in the past , E.ON's earnings per share have basically not grown from where they were five years ago. Flat earnings per share are acceptable for a time, but over the long term, the purchasing power of the company's dividends could be eroded by inflation. E.ON is paying out less than half of its earnings, which we like. However, earnings per share are unfortunately not growing much. Might this suggest that the company should pay a higher dividend instead?
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. First, we like E.ON's low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. Second, earnings growth has been ordinary, and its history of dividend payments is chequered - having cut its dividend at least once in the past. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than E.ON out there.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 19 E.ON analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What authorities actually say you should do if you hear screaming next door?
Should you call the police if you hear worrying noises next door? (Picture: Getty) Boris Johnson’s neighbours have come under fire from some people for calling the police , but when it comes to hearing screaming next door, what is the official advice? Tom Penn, who called police after hearing ‘screaming’ and ‘crashing’ at the home the wannabe Prime Minister shares with girlfriend Carrie Symonds in the early hours of Friday morning, also recorded the altercation and told the Guardian about the alleged disturbance. He has been forced to defend his actions after critics questioned his motives. They included Brexit minister James Cleverly, who said: "The police were called by the same person who recorded Boris and gave the story to the Guardian”. But when it comes to official advice, what should people do if they hear screaming and noise next door? Neighbours of Boris Johnson have come under fire for calling police after hearing screaming from the home he shares with Carrie Symonds (Picture: AP Photo/Matt Dunham) According to the Government website, if you think you or someone else are in immediate danger, or a crime is in progress, you should dial 999. The same goes if you suspect domestic abuse or violence. READ MORE Homeless man dies of '100% burns' after tent he was living in is set on fire The website says: “Domestic abuse or violence is a crime and should be reported to the police - there are also other organisations who can offer you help and support. “Call 999 if it’s an emergency or you’re in immediate danger.” It also suggests contacting your local neighbourhood policing team if it’s not an emergency. Most organisation advise calling police if you suspect violence or a crime (Picture: Getty) Neighbourhood Watch, the crime prevention movement in England and Wales, which incorporates 2.3 million member households, says: “If you believe someone is in immediate danger, call the police on 999.” Again, it advises that if you are a “concerned friend or neighbour” and suspect someone is suffering some kind of abuse, you can report your concerns to the police or a specialist organisation. Citizens Advice, a network of 316 independent charities throughout the UK that give free, confidential information and advice to assist people with money, legal, consumer and other problems, also has advice if you are concerned. Story continues It says: “Contact the police if you think your neighbour has broken the law - for example, they’ve been violent or threatening. “Call 999 if the crime is still happening or 101 to report a crime later.” Citizens advice also advises to keep records of what happened that could be used if taken further. The big element in the Boris story isn’t that there was a heated argument, it’s that the police were called. The police were called by the same person who recorded Boris and gave the story to the Guardian. — James Cleverly MP (@JamesCleverly) June 22, 2019 Mr Penn has today defended his decision to reveal details of the incident to the Guardian. He said: "Once clear that no-one was harmed, I contacted the Guardian, as I felt it was of important public interest. "I believe it is reasonable for someone who is likely to become our next prime minister to be held accountable for all of their words, actions and behaviours.” He said: "After a loud scream and banging, followed by silence, I ran upstairs, and with my wife agreed that we should check on our neighbours. "I knocked three times at their front door, but there was no response. I went back upstairs into my flat, and we agreed that we should call the police. "The police arrived within five minutes. Our call was made anonymously and no names were given to the police. They subsequently called back to thank us for reporting, and to let us know that nobody was harmed. "To be clear, the recordings were of the noise within my own home. My sole concern up until this point was the welfare and safety of our neighbours. I hope that anybody would have done the same thing. The Metropolitan Police said they were alerted by a caller who "was concerned for the welfare of a female neighbour". The Guardian newspaper said it had heard a recording of the incident in which Mr Johnson could allegedly be heard saying "get off my f****** laptop" before a loud crashing noise. Ms Symonds can be heard telling Mr Johnson to "get off me" and "get out of my flat", the newspaper reported. |
Does Pricer AB (publ) (STO:PRIC B) Have A Good P/E Ratio?
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This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Pricer AB (publ)'s (STO:PRIC B), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months,Pricer has a P/E ratio of 14.77. That is equivalent to an earnings yield of about 6.8%.
Check out our latest analysis for Pricer
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Pricer:
P/E of 14.77 = SEK13.5 ÷ SEK0.91 (Based on the year to March 2019.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
Earnings growth rates have a big influence on P/E ratios. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. That means even if the current P/E is high, it will reduce over time if the share price stays flat. And as that P/E ratio drops, the company will look cheap, unless its share price increases.
In the last year, Pricer grew EPS like Taylor Swift grew her fan base back in 2010; the 149% gain was both fast and well deserved. And earnings per share have improved by 40% annually, over the last three years. So you might say it really deserves to have an above-average P/E ratio.
The P/E ratio indicates whether the market has higher or lower expectations of a company. The image below shows that Pricer has a lower P/E than the average (20.4) P/E for companies in the electronic industry.
Pricer's P/E tells us that market participants think it will not fare as well as its peers in the same industry. Since the market seems unimpressed with Pricer, it's quite possible it could surprise on the upside. You should delve deeper. I like to checkif company insiders have been buying or selling.
It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. Thus, the metric does not reflect cash or debt held by the company. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.
Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context.
With net cash of kr214m, Pricer has a very strong balance sheet, which may be important for its business. Having said that, at 14% of its market capitalization the cash hoard would contribute towards a higher P/E ratio.
Pricer trades on a P/E ratio of 14.8, which is below the SE market average of 16.9. It grew its EPS nicely over the last year, and the healthy balance sheet implies there is more potential for growth. The relatively low P/E ratio implies the market is pessimistic.
Investors should be looking to buy stocks that the market is wrong about. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold.
You might be able to find a better buy than Pricer. 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. |
Kitten survives 40-mile trip trapped under car bonnet
Student Vet Nurse Sadie Reece, Kaylie Banks, Lucie Banks with Chi the kitten, which has survived life-threatening injuries after it was taken on a 40-mile journey after hiding under the bonnet of a neighbour's car A stowaway kitten managed to survive a 40-mile journey after hiding under the bonnet of a neighbours car. Chi, a one-year-old tabby from Brighton , was discovered injured and distressed in the engine compartment. The cat's owner Kaylie Banks, 30, said the grill at the front of the car had to be removed to get her "stressed pet out". She said: "I returned home from work and Chi was nowhere to be seen. After turning the house upside down, I began knocking on my neighbours' doors. No-one had seen her and I was beginning to get worried. "One of my neighbours then approached me to say he had found Chi trapped under the bonnet of his car. "He was driving home when he heard noises coming from the engine. Luckily, he stopped the car and after close inspection he saw little Chi lodged inside. "She was very stressed and he had to take the grill off the front of the car to get her out." One-year-old tabby cat Chi, from Brighton, East Sussex, was given emergency care by vets at the PDSA after she was found trapped in the engine compartment Chi received treatment from the PDSA at the Brighton pet hospital. She was given pain relief while her wounds were assessed and later required an operation on her burns. PDSA student vet nurse Sadie Reece said: "Chi's wounds needed to be cleaned and repaired under anaesthetic. There was a large amount of dead tissue that needed to be removed. "The operation was a success and we were able to clean and stitch the healthy tissue back together." READ MORE Boris Johnson's neighbour speaks out after calling the police to domestic disturbance Homeless man dies of '100% burns' after tent he was living in is set on fire A PDSA spokeswoman said: "After recovering from the procedure, Chi was able to go home, complete with a 'buster' collar to protect her injuries. "Chi was also given antibiotics to treat infection and anti-inflammatory medication to help ensure she was pain-free while recovering. "Chi's wounds are now healing well and she is expected to make a full recovery, thanks to the expert care she received." Chi is now recovering Ms Banks added: "The staff at Brighton PDSA were amazing and treated Chi exceptionally well. It's thanks to the team that she is recovering well and I am grateful to all who helped during what was a very stressful time for me and my family." The PDSA spokeswoman said the charity runs pet first aid courses and further information is available at its website www.pdsa.org.uk/firstaid She added: "If your pet's been injured, first aid can make a huge difference. Getting them to a vet practice as soon as possible should be the priority, but knowing the correct first aid can help keep them comfortable and reduce any further damage in the meantime. It can even mean the difference between life and death for your pet." |
Do Institutions Own Shares In BMO Real Estate Investments Limited (LON:BREI)?
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The big shareholder groups in BMO Real Estate Investments Limited (LON:BREI) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
BMO Real Estate Investments is not a large company by global standards. It has a market capitalization of UK£193m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about BREI.
Check out our latest analysis for BMO Real Estate Investments
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.
As you can see, institutional investors own 29% of BMO Real Estate Investments. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of BMO Real Estate Investments, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in BMO Real Estate Investments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% of BMO Real Estate Investments Limited. It appears that the board holds about UK£295k worth of stock. This compares to a market capitalization of UK£193m. I generally like to see a board more invested. However it might be worth checkingif those insiders have been buying.
The general public -- mostly retail investors -- own 71% of BMO Real Estate Investments . This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I 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 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. |
Taking A Look At Prime People Plc's (LON:PRP) ROE
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Prime People Plc (LON:PRP), by way of a worked example.
Our data showsPrime People has a return on equity of 14%for the last year. That means that for every £1 worth of shareholders' equity, it generated £0.14 in profit.
View our latest analysis for Prime People
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Prime People:
14% = UK£2.2m ÷ UK£15m (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 yearly profit. The higher the ROE, the more profit the company is making. So, all else being equal,a high ROE is better than a low one. That means 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. If you look at the image below, you can see Prime People has a similar ROE to the average in the Professional Services industry classification (14%).
That's neither particularly good, nor bad. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
Shareholders will be pleased to learn that Prime People has not one iota of net debt! Its respectable ROE suggests it is a business worth watching, but it's even better the company achieved this without leverage. After all, when a company has a strong balance sheet, it can often find ways to invest in growth, even if it takes some time.
Return on equity is useful for comparing the quality of different businesses. 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. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. You can see how the company has grow in the past by looking at this FREEdetailed 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.
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 Do Analysts Think About Roche Holding AG's (VTX:ROG) Growth?
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Looking at Roche Holding AG's (VTX:ROG) earnings update in December 2018, analysts seem fairly confident, with profits predicted to increase by 35% next year against the past 5-year average growth rate of -0.8%. By 2020, we can expect Roche Holding’s bottom line to reach CHF14b, a jump from the current trailing-twelve-month of CHF11b. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you canresearch its fundamentals here.
View our latest analysis for Roche Holding
Longer term expectations from the 19 analysts covering ROG’s stock is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of ROG'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.
By 2022, ROG's earnings should reach CHF15b, from current levels of CHF11b, resulting in an annual growth rate of 9.9%. This leads to an EPS of CHF17.31 in the final year of projections relative to the current EPS of CHF12.3. In 2022, ROG's profit margin will have expanded from 18% to 24%.
Future outlook is only one aspect when you're building an investment case for a stock. For Roche Holding, I've put together 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 Roche Holding 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 Roche Holding is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Roche Holding? 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 Why I Think BigBen Interactive (EPA:BIG) Is An Interesting Stock
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.'
So if you're like me, you might be more interested in profitable, growing companies, likeBigBen Interactive(EPA:BIG). While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.
See our latest analysis for BigBen Interactive
As one of my mentors once told me, share price follows earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. Who among us would not applaud BigBen Interactive's stratospheric annual EPS growth of 55%, compound, over the last three years? While that sort of growth rate isn't sustainable for long, it certainly catches my attention; like a glint in the eye of my lover.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). This approach makes BigBen Interactive look pretty good, on balance; although revenue is flattish, EBIT margins improved from 6.2% to 8.8% in the last year. That's a real positive.
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
The trick, as an investor, is to find companies that aregoing toperform well in the future, not just in the past. To that end, right now and today, you can checkour visualization of consensus analyst forecasts for future BigBen Interactive EPS100% free.
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. So it is good to see that BigBen Interactive insiders have a significant amount of capital invested in the stock. Indeed, they hold €32m worth of its stock. That shows significant buy-in, and may indicate conviction in the business strategy. Those holdings account for over 14% of the company; visible skin in the game.
BigBen Interactive's earnings per share growth has been so hot recently that thinking about it is making me blush. That sort of growth is nothing short of eye-catching, and the large investment held by insiders certainly brightens my view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So yes, on this short analysis I do think it's worth considering BigBen Interactive for a spot on your watchlist. Of course, just because BigBen Interactive 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.
Although BigBen Interactive certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then thisfreelist of growing companies that insiders are buying, could be exactly what you're looking for.
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. |
Decheng Technology AG (FRA:333): A Fundamentally Attractive Investment
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I've been keeping an eye on Decheng Technology AG (FRA:333) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 333 has a lot to offer. Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. 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 Decheng Technology here.
333'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 333 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. 333's has produced operating cash levels of 5.33x total debt over the past year, which implies that 333's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. 333'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 333's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the chemicals industry, 333 is also trading below its peers, relative to earnings generated. This further reaffirms that 333 is potentially undervalued.
For Decheng Technology, I've put together three key factors you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for 333’s future growth? Take a look at ourfree research report of analyst consensusfor 333’s outlook.
2. Historical Performance: What has 333'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 333? 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. |
Should You Be Concerned About SBM Offshore N.V.'s (AMS:SBMO) Historical Volatility?
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If you own shares in SBM Offshore N.V. (AMS:SBMO) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks 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.
See our latest analysis for SBM Offshore
Looking at the last five years, SBM Offshore has a beta of 0.82. The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility. This suggests that including it in your portfolio will reduce volatility arising from broader market movements, assuming your portfolio's weighted average beta is higher than 0.82. Beta is worth considering, but it's also important to consider whether SBM Offshore is growing earnings and revenue. You can take a look for yourself, below.
SBM Offshore is a fairly large company. It has a market capitalisation of €3.3b, which means it is probably on the radar of most investors. When large companies like this one have a low beta value, there is usually some other factor that is having an outsized impact on the share price. For example, a business with significant fixed regulated assets might earn a reasonably predictable return, regardless of broader macroeconomic factors. Alternatively, lumpy earnings might mean minimal share price correlation with the broader market.
One potential advantage of owning low beta stocks like SBM Offshore 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. In order to fully understand whether SBMO is a good investment for you, we also need to consider important company-specific fundamentals such as SBM Offshore’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 SBMO’s future growth? Take a look at ourfree research report of analyst consensusfor SBMO’s outlook.
2. Past Track Record: Has SBMO 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 SBMO's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how SBMO 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. |
Should NV Bekaert SA (EBR:BEKB) Focus On Improving This Fundamental Metric?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine NV Bekaert SA (EBR:BEKB), by way of a worked example.
Our data showsNV Bekaert has a return on equity of 0.2%for the last year. That means that for every €1 worth of shareholders' equity, it generated €0.0018 in profit.
Check out our latest analysis for NV Bekaert
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for NV Bekaert:
0.2% = €40m ÷ €1.5b (Based on the trailing twelve months to December 2018.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all 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 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.
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. As shown in the graphic below, NV Bekaert has a lower ROE than the average (10%) in the Metals and Mining 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.
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 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. That will make the ROE look better than if no debt was used.
NV Bekaert does use a significant amount of debt to increase returns. It has a debt to equity ratio of 1.08. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. 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. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREEvisualization of analyst forecasts for the company.
But note:NV Bekaert may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Does This Valuation Of Advanced Medical Solutions Group plc (LON:AMS) Imply Investors Are Overpaying?
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Does the June share price for Advanced Medical Solutions Group plc (LON:AMS) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
View our latest analysis for Advanced Medical Solutions 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. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (\u00a3, Millions)", "2019": "\u00a317.85", "2020": "\u00a322.47", "2021": "\u00a325.34", "2022": "\u00a327.71", "2023": "\u00a329.62", "2024": "\u00a331.16", "2025": "\u00a332.41", "2026": "\u00a333.43", "2027": "\u00a334.30", "2028": "\u00a335.05"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x3", "2021": "Est @ 12.8%", "2022": "Est @ 9.33%", "2023": "Est @ 6.9%", "2024": "Est @ 5.2%", "2025": "Est @ 4.01%", "2026": "Est @ 3.17%", "2027": "Est @ 2.59%", "2028": "Est @ 2.18%"}, {"": "Present Value (\u00a3, Millions) Discounted @ 7.22%", "2019": "\u00a316.65", "2020": "\u00a319.54", "2021": "\u00a320.56", "2022": "\u00a320.97", "2023": "\u00a320.90", "2024": "\u00a320.51", "2025": "\u00a319.90", "2026": "\u00a319.14", "2027": "\u00a318.32", "2028": "\u00a317.46"}]
Present Value of 10-year Cash Flow (PVCF)= £193.95m
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 1.2%. We discount the terminal cash flows to today's value at a cost of equity of 7.2%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = UK£35m × (1 + 1.2%) ÷ (7.2% – 1.2%) = UK£592m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= £UK£592m ÷ ( 1 + 7.2%)10= £294.97m
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 £488.92m. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of £2.28. Relative to the current share price of £3, the company appears reasonably expensive at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
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 Advanced Medical Solutions 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 7.2%, which is based on a levered beta of 0.901. 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 Advanced Medical Solutions Group, There are three relevant aspects you should further examine:
1. Financial Health: Does AMS 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 AMS'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 AMS? 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 LON 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. |
Get an unlocked 12.9-inch iPad Pro from 2017 for $500 off
TL;DR:The2017 iPad Prois still one of the best tablets you can get, and the 12.9-inch model is on super sale. Save $399.01 and get the256 GB modelfor $679.99 or save $500 and get the512 GB modelfor $779.99.
June 21 wasNational Selfie Day, and we're here to remind you that friends don't let friends take iPad mirror selfies.
Other than that, you can do just about anything with the iPad Pro: create graphic design projects on your commute, edit work spreadsheets from home,watch movies, orconnect a keyboard. WheniPadOScomes out, it'll be even closer to feeling like a real laptop.
The 2017 iPad Pro is still one of thebest tablets you can buyperiod, andPCMag(owned by Mashable's publisher, Ziff Davis) has a pool of factory unlocked 2017 12.9-inch models (WiFi + 4G LTE) for seriously cheap.Read more...
More aboutApple,Tablets,Ipad Pro,Mashable Shopping, andShopping Pcmag |
5 seriously important skills you can learn online
TL;DR:These online courses can help keep your brain sharp, plus you can name your price. Find them all in theMashable Shop.
A lot of people use money as an excuse for not going back to school. Makes sense. If you're an average college-educated American, you're likely still paying college loans. But going back to school is *so* last decade. Nowadays, you can learn any skill worth knowing online on the cheap.
Take your pick of these five bundles that will arm with you a wide spectrum of new skills. And don't worry about money, you get to name your price. Pinky promise!Read more...
More aboutCoding,Online Learning,Mashable Shopping,Shopping Onlinelearning, andWork Life |
Save on this 3D printer for kids that lets them make their own toys
TL;DR:The fun and innovativeToybox 3D Printeris on sale for $314.99, a savings of $154.
It's downright impossible to separate kids from their phones, tablets, and video games these days. Despite our best efforts, technology runs their lives just like at one point toys ran ours. Heck, you're probably unlikely to see anyone under 30 atToy Story 4.
Rather than fighting it, sometimes it's best to lean in and fight tech with tech — but with an educational twist. TheToybox 3D Printerlets kids join in on the fun of 3D printing while piquing their curiosity in science and technology at the same time.Read more...
More aboutKids,Toys,3d Printing,Shark Tank, andMashable Shopping |
Facebook’s Libra ‘crap coin’ could be blessing in disguise for crypto space
Facebook’s much hyped Libra initiative is problematic in a number of ways, but it could have a positive impact on the crypto market. That’s the view of On Yavin, CEO and Founder, Cointelligence. “The Facebook coin is a fake cryptocurrency. They are calling it cryptocurrency because it is a buzzword. It may be a digital currency, but it is not a cryptocurrency. It is a crap coin,” he says. It will by definition be largely centralised, he adds. Facebook has a huge trust problem after its poor track record in securing its users’ personal data. And it is partnering with big companies such as Uber, PayPal, Vodafone and Visa to create Libra. In a nutshell, big corporations will continue to control the system and exploit users, Yavin argues. “That is the opposite of what a real cryptocurrency should be,” he comments. At the same time, however, the launch has exposed huge numbers of people to cryptocurrencies and the world of blockchain. The space could start to be viewed as more serious and credible. Up to this point, conversations have been nearly exclusive to technologists. Now with the launch of Libra, Facebook is potentially making cryptocurrency available to its two and a half billion users. “I think that the positive side is that Libra will get so many people introduced to the new generation of digital payments and some of them will want to learn more about real cryptos like Bitcoin and Ethereum,” Yavin concludes. The post Facebook’s Libra ‘crap coin’ could be blessing in disguise for crypto space appeared first on Coin Rivet . |
Is Advanced Medical Solutions Group plc (LON:AMS) Expensive For A Reason? A Look At Its Intrinsic Value
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Today we will run through one way of estimating the intrinsic value of Advanced Medical Solutions Group plc (LON:AMS) 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.
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 Advanced Medical Solutions 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. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF (\u00a3, Millions)", "2019": "\u00a317.85", "2020": "\u00a322.47", "2021": "\u00a325.34", "2022": "\u00a327.71", "2023": "\u00a329.62", "2024": "\u00a331.16", "2025": "\u00a332.41", "2026": "\u00a333.43", "2027": "\u00a334.30", "2028": "\u00a335.05"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x3", "2021": "Est @ 12.8%", "2022": "Est @ 9.33%", "2023": "Est @ 6.9%", "2024": "Est @ 5.2%", "2025": "Est @ 4.01%", "2026": "Est @ 3.17%", "2027": "Est @ 2.59%", "2028": "Est @ 2.18%"}, {"": "Present Value (\u00a3, Millions) Discounted @ 7.22%", "2019": "\u00a316.65", "2020": "\u00a319.54", "2021": "\u00a320.56", "2022": "\u00a320.97", "2023": "\u00a320.90", "2024": "\u00a320.51", "2025": "\u00a319.90", "2026": "\u00a319.14", "2027": "\u00a318.32", "2028": "\u00a317.46"}]
Present Value of 10-year Cash Flow (PVCF)= £193.95m
"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 1.2%. We discount the terminal cash flows to today's value at a cost of equity of 7.2%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = UK£35m × (1 + 1.2%) ÷ (7.2% – 1.2%) = UK£592m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= £UK£592m ÷ ( 1 + 7.2%)10= £294.97m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is £488.92m. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of £2.28. Relative to the current share price of £3, the company appears reasonably expensive at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. 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 Advanced Medical Solutions 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 7.2%, which is based on a levered beta of 0.901. 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 Advanced Medical Solutions Group, I've put together three important aspects you should look at:
1. Financial Health: Does AMS 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 AMS'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 AMS? 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 LON 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. |
Pair jailed after filming dogs mauling badgers to death
Two thugs have been jailed after filming their dogs mauling badgers to death (Stock picture: Getty) Two men have been jailed after filming sickening footage of their dogs mauling badgers to death in what a judge branded “medieval barbarity”. Ryan Harrison, 24, and Thomas Young, 26, were jailed for 22 weeks and 20 weeks respectively after admitting a string of animal cruelty charges. Hundreds of sickening video clips were found on Harrison’s phone, including badger killings, and Merthyr Magistrates’ Court heard that the pair had also tried to kill a deer, as well as setting their dogs on a boar before stabbing the wounded the animal with a knife. In one horrifying video, a baby badger is skinned alive by two dogs as Harrison and Young watch. During the clip, one of the men says: “That’s grim as f*ck,” while another man laughs before Young batters it with a shovel. A total of 447 video clips of sickening animal cruelty were found on Harrison's phone, including badger killings (Picture: SWNS) Sentencing the pair, District Judge Neil Thomas described the offences as “medieval barbarity” adding: “The absence of remorse was obvious.” Harrison, of Caldicot, Monmouthshire, admitted 15 animal cruelty offences and was jailed for 22 weeks. READ MORE All sex acts with animals finally illegal in Canada as loophole is closed Young, of East Pentwyn, Blaina, pleaded guilty to six charges and was jailed for 20 weeks. A third man, Cyle Jones, 31, of Brecon, admitted two animal welfare charges and was jailed for 18 weeks. All three were banned from keeping dogs for life. After the case, RSPCA Chief inspector Ian Briggs said: "The RSPCA’s special operations unit has to investigate some truly gruesome acts on animals. “But the prolific nature of these horrific crimes are some of the worst I - and my inspectors - have ever had the displeasure of witnessing. “This barbaric, deliberate and calculated torture has caused wildlife and dogs to suffer immeasurably, solely for the sadistic pleasure of a handful of depraved individuals. “Sadly, people who enjoy inflicting such pain and suffering on wildlife continue to offend in Wales. “The RSPCA will not rest in bringing people like these to justice.” |
What Type Of Shareholder Owns Beazley plc's (LON:BEZ)?
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The big shareholder groups in Beazley plc (LON:BEZ) 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 used to be publicly owned tend to have lower insider ownership.
With a market capitalization of UK£2.9b, Beazley is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about BEZ.
Check out our latest analysis for Beazley
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 Beazley does have institutional investors; and they hold 88% of the stock. 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 Beazley's earnings history, below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Beazley is not owned by hedge funds. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our most recent data indicates that insiders own less than 1% of Beazley plc. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around UK£20m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checkingif those insiders have been buying.
The general public, with a 11% 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.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
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. |
Carrie Symonds brands police call a stitch up
Carrie Symonds has been dating Boris Johnson and speculation is rife she could move into Number 10. (GETTY) Carrie Symonds has said she was “stitched up” after police were called to her home following an argument with her partner and PM hopeful Boris Johnson as she reveals she no longer feels safe in her own home. The playwrights Eve Leigh and Tom Penn, who live below the flat Carrie and Boris share in London, were behind the phone call to police in the early hours of Friday morning. The neighbours have defended their decision to call the police and say they were genuinely concerned after hearing the row. An insider said to The Sun: “As far as Carrie is concerned this is a stitch up. Boris Johnson is likely to be the UK's next Prime Minister. (GETTY) “Both she and Boris are convinced that this was politically motivated. “It was a row like lots of couples have at the end of a demanding day but suddenly they found the police on their doorstep.” On Saturday evening, Mr Penn said: “My sole concern was the welfare and safety of my neighbours.” A source in the camp of Boris said to The Sun: “The local hatred to Boris and Carrie has been ramped up recently. That’s why they feel it’s a stitch-up. “Carrie is now really frightened and cannot believe this has happened over such a minor matter. “She and Boris will not be going back there as they are too worried about the hostility they faced.” This comes as The Daily Mail has reported that Miss Symonds has concerns for her safety following hate mail being sent to her Camberwell home. Read More on Yahoo News: What authorities actually say you should do if you hear screaming next door? UK PM candidate Boris Johnson avoids questions about police visit Last night, a friend of Mr Johnson and Miss Symonds told the Mail on Sunday: “Carrie really doesn't feel safe in her own home anymore with anti-Boris leaflets and posters stuck up on the road, hand-delivered hate mail and now her private conversations being taped through the walls.” Neighbours have also planned an anti-Boris march today to coincide with a dog show. At the Tory Leadership hustings in Birmingham, Mr Johnson refused to answer any questions regarding the scandal. He simply said: “People don’t want to hear about that kind of thing.” View comments |
Why Ethereum’s Privacy Matters and What’s Being Built to Support It
Mixers. Computational data layers. Zero-knowledge proofs: these are just a few of the technologies being leveraged to enhance privacy on the ethereum blockchain.
Privacy for a public blockchain network is a bit of an oxymoron, given that, by nature of the technology’s design, data must be shared and widely distributed on the network in order to be considered valid. What’s more, for a high-profile public blockchain network like ethereum, several blockchain analytics websites and data scraping services exist to proliferate this data beyond just the users of the network.
Itamar Lesuisse, the CEO and co-founder of crypto wallet tool Argent, describes the matter of privacy on the ethereum blockchain as an issue for even “the most simplest use case” on the platform.
Related:Above $300: Ether Price Clocks 10-Month High
“If you just look at the most simplest use case, if I say, ‘Hey Christine, can you send me ten dollars [worth of ether]? Here’s my wallet address.’ Now, you know how much money I have.” Lesuisse said during an interview with CoinDesk.
By virtue of sharing one’s public ethereum address, the amount of funds being held within that address is easily uncovered. Of course, a user could hold several cryptocurrency wallets with different amounts of ether held within them. However, disclosing the wallet address of one of them may jeopardize the identity of all wallets owned by a user especially if funds had previously been transferred between wallet addresses.
“I’m talking here about friends who I asked to send me some money. They would instantly know how much I have,” emphasized Lesuisse. “It’s so transparent, which is a great picture of blockchain, but for some users, it might scare them away to use it at scale.”
This is why Lesuisse and others are working towards better tools for making private transactions and even private computations in general on the ethereum blockchain. Ultimately, the aim is to encourage greater adoption of the ethereum blockchain by larger groups of people such as enterprise corporations.
Related:Ethereum Devs Approve First Code Changes for ‘Istanbul’ Hard Fork
Speaking to enterprise use cases on the ethereum blockchain, EY global innovation leader for blockchain Paul Brody saidin a past interviewwith CoinDesk:
“It’s fundamentally essential if you want corporations and large scale investors. If you want them to use public blockchains, you’ve got to provide them with privacy … We believe that without privacy you won’t have a lot of serious enterprise users.”
There are a number of privacy projects that have newly launched this year.
The blockchain team at EY released code dubbed ‘Nightfall’ last month on GitHub as an experimental solution to enable anonymous transactions on the ethereum blockchain.
It leverages a well-known technology in the crypto space known as zero knowledge proofs (ZKPs) first conceived in the late 1980s by researchers Shafi Goldwasser, Silvio Micali, and Charles Rackoff in a paper titled “The Knowledge Complexity of Interactive Proof-Systems.” Later in 2016, privacy coin Zcash launched on mainnet and became the first widespread application of ZKPs used to send “shielded transactions” anonymizing users across a public blockchain network.
More recently, after the release of Nightfall in May, the developer team at blockchain startup0xcerthas started to iterate on the code release and add new features for its specific implementation with non-fungible ERC-721 tokens.
“An important thing we added to [Nightfall] is selective verification. I’m not going to expose everything if I don’t want to,” explained 0xcert chief strategy officer Urban Osvald. “Nightfall and all the tooling we provide combined really makes a combination of tools and features widely applicable not just for game items and collectibles…but they pave the pathway for large scale enterprise use case.”
Speaking to the motivations behind the initiative, Osvald remarked:
“The biggest goal for us is widespread adoption of non-fungible tokens and obviously blockchain in general … Adoption is slow and we want to expedite it as fast as possible.”
Apart from transactional privacy on the ethereum blockchain, another ethereum-based startup called Enigma is dedicated to creating an off-chain computational environment for any type of data privacy.
“When we talk about computational privacy, it’s going beyond the idea that you can protect the anonymity or the amount of a transaction and you’re actually able to do computations on encrypted data,“ said Tor Bair, head of growth and marketing for Enigma, in a past interview with CoinDesk.
Bair added:
“You could do decentralized credit scoring that protects data from specific users that’s trying to establish their creditworthiness … For gaming, data needs to remain private from certain individuals within the game or you may want to produce random numbers in a secure fashion. These are all potential applications in future for our protocol.”
On Tuesday, Enigma released its second test network solidifying “the developer experience,” according to Bair, of using the protocol which has yet to see a mainnet launch.
In the meantime, Julien Niset, chief science officer at Argent, argues that a basic privacy tool on ethereum ready for deployment immediately is needed.
“There’s need for a lot privacy solutions on Ethereum addressing different needs and different requirements,” said Niset. “We really tackle the first one and the one needed most today which is how can I send funds from A to B privately.”
The tool being talked about by Niset is calledHopper. It is a open-source mixer for making private transactions on the ethereum blockchain using a mobile iOS device.
In essence, Hopper is a smart contract that users can deposit notes of 1 ETH to and withdraw funds from privately without revealing any public account addresses. It also leverages ZKPs in order to prove recipients of private transfers.
“Users can deposit notes of 1 ETH into a mixer smart contract and withdraw them later to a different account by only providing a Zero-Knowledge proof (zkSNARK) that they previously deposited a note into the mixer, without revealing from which account that note was sent,” the officialGitHubpage describes.
While immediately deployable, Niset warns that Hopper is by no means the ultimate privacy solution for ethereum.
“We don’t want to claim that we solved that problem for Ethereum. This is not what it is. This is an open source community,” said Niset. “The thing that is really important is that people collaborate. We used the development of some other people and saw we could make it a viable product for mobile wallet.”
As such, CEO of Argent Itamar Lesuisse emphasized that from his perspective, Hopper is a privacy product solution that “can work today” but will be just one of many in existence in the years to come.
Lesuisse concluded:
“There are many solutions out there that are on the way and will become way more advanced in a few years…From a product perspective, we wanted to solve the problem today but there may be many more solutions in future.”
Lock image via Shutterstock
• Meet Alternateth: A ‘Friendly Fork’ of the Ethereum Blockchain
• Internet Security Provider Cloudflare Announces an Ethereum Gateway |
What Kind Of Investor Owns Most Of Beazley plc (LON:BEZ)?
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If you want to know who really controls Beazley plc (LON:BEZ), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
Beazley has a market capitalization of UK£2.9b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. In the chart below below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about BEZ.
Check out our latest analysis for Beazley
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Beazley already has institutions on the share registry. Indeed, they own 88% 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Beazley, (below). Of course, keep in mind that there are other factors to consider, too.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Beazley is not owned by hedge funds. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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 most recent data indicates that insiders own less than 1% of Beazley plc. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around UK£20m worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You canclick here to see if insiders have been buying or selling.
The general public holds a 11% stake in BEZ. 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.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
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. |
France's Carrefour free to focus on home market after retreat from China
By Dominique Vidalon, Lee Chyen Yee and Mathieu Rosemain
PARIS/SINGAPORE/BEIJING (Reuters) - Shares in France's Carrefour rose on Monday after it became the latest Western retailer to retreat from the Chinese market as fierce competition from domestic rivals and a growing online market puts pressure on foreign firms.
The pullback allows Europe's largest retailer to focus its revival efforts on its home market where it is under intense competitive pressure from traditional rivals and from Amazon.com Inc.
Investors welcomed a long-awaited all-cash deal struck at what analysts said was a good enough price in view of Carrefour's falling sales and operating losses in China.
Carrefour, which has been in China since 1995, agreed to sell 80% of its Chinese operations to electronics retailer Suning.com for 620 million euros ($705 million).
Carrefour follows other big-name Western retailers such as Tesco Plc and Walmart Inc, which have sold stakes to domestic partners, and Amazon which plans to shut its online store in China next month.
German wholesaler Metro AG, which has 93 stores in China, is also looking to sell its China unit amid a wider company restructuring, people directly involved in the matter have told Reuters.
A source told Reuters that Suning had been interested in both Metro and Carrefour China businesses, compared the two, and found Carrefour China cheaper.
A deal could see Metro's China business valued at $1.5-$2 billion, Reuters previously reported.
Carrefour, led by Chief Executive Alexandre Bompard since 2017, has spent years trying to fix its business in China where its 2018 sales fell 5.9% and its operating loss was 32 million euros.
GOOD VALUATION
The agreement with Suning values Carrefour's China operation, including debt, at 1.4 billion euros ($1.6 billion), with options to sell the remaining 20% stake.
Carrefour will keep two out of seven seats on the board of Carrefour China. The Carrefour brand will be kept for at least 4.5 years after completion of the deal.
By 1205 GMT, Carrefour shares were up 1.1% at 17.19 euros, after opening up 2.5 percent.
Carrefour China, which operates 210 hypermarkets and 24 convenience stores, had net sales of 3.6 billion euros and earnings before interest, tax, depreciation and amortisation (EBITDA) of 66 million euros in 2018.
A 1.4 billion euros enterprise value would value the business at multiples of 21 times EBITDA, which was "very good", Bernstein analysts wrote.
"This is a good move by Carrefour allowing them to focus on their core French business, whilst keeping a stake in the Chinese business, keeping some visibility on what is happening in the fastest moving grocery market," Bernstein added.
They expected "a 3-4% earnings upgrade from the removal of China losses and lower interest charges"
Carrefour which faces pressure in France from traditional rivals like Leclerc and from Amazon, is in the midst of a five-year restructuring plan to boost group sales and profits.
"China was the one part of Carrrefour's portfolio where strategic value deviated considerably from earnings contribution. Upside from here will be determined by French operational progress," Jefferies analysts said in a note.
ONLINE GROCERS
The rapid growth of online grocers such as Alibaba Group Holding's Freshippo and JD.com has eaten into the market share of foreign retailers in China, where consumers have come to expect same-day delivery and competitive prices.
"The competition in China is so fierce that you really need to double down in order to win. It's almost like a second home market, so the question is do you have enough conviction and do you have enough resources to win in China," said Jonathan Cheng, head of Bain's Greater China Retail Practice.
Suning, which is backed by Alibaba, said in a statement that the acquisition will allow it to strengthen its brand as well as boost its marketing capabilities, food quality control and supply chain management in the sector.
The deal also puts an end to Carrefour's preliminary talks to sell a minority stake in its China business to technology giant Tencent.
"The talks that have started since January 2018 for the sale of a minority stake (in Carrefour China) to Tencent are over," a Carrefour spokeswoman said, but a strategic business partnership with Tencent remained in place.
Carrefour announced a partnership last year with Tencent, which led to the opening of a store in Shanghai.
Carrefour also said at the time that Tencent and Yonghui, a retailer specialising in fresh food and small stores, could take a stake in Carrefour China.
Tencent declined to comment. Yonghui said on Monday it was scrapping talks with Carrefour on its related investment plan.
($1 = 0.8798 euros)
(Reporting by Mathieu Rosemain and Dominique Vidalon in Paris; Additional reporting by Chyen Yee Lee in Singapore, Pei Li in Beijing and Brenda Goh in Shanghai; Editing by Darren Schuettler and Keith Weir) |
Should Stock Spirits Group PLC (LON:STCK) Be Your Next Stock Pick?
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Stock Spirits Group PLC (LON:STCK) due to its excellent fundamentals in more than one area. STCK 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, read the fullreport on Stock Spirits Group here.
STCK's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that STCK manages its cash and cost levels well, which is a crucial insight into the health of the company. STCK seems to have put its debt to good use, generating operating cash levels of 0.64x 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. STCK 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 STCK'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, STCK's share price is trading below the group's average. This supports the theory that STCK is potentially underpriced.
For Stock Spirits Group, I've put together three essential factors you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for STCK’s future growth? Take a look at ourfree research report of analyst consensusfor STCK’s outlook.
2. Historical Performance: What has STCK'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 STCK? 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. |
Bitcoin Prices Could Make Paying Taxes in Bitcoin Even More Attractive
Robert W. Woodis a tax lawyer representing clients worldwide from the offices at Wood LLP in San Francisco. He is the author of numerous tax books and writes frequently about taxes for Forbes, Tax Notes and other publications.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views ofCointelegraph.com. This discussion should not be regarded as legal advice.
Bitcoinand other crypto prices have recently been highly volatile. If you are holding bitcoin or other crypto, you may well not want to sell until the market recovers, when it is down. But if you owetaxesand the crypto market is up, how about paying them in bitcoin (or selling bitcoin to pay your tax in dollars)?
Selling may trigger tax losses that can be used next year, too. And in at least one American state, paying tax in bitcoin is a reality. In Ohio, you can now make state tax payments in bitcoin. It's only possible to pay in bitcoin, at present, but the permitted crypto should expand, according to OhioCrypto.com.
Ohio beat out others in the United States, such as Arizona, Georgia, Utah and New Hampshire, where efforts to accept crypto for taxes failed. The transaction fee is zero during an initial three-month introductory period and then 1% thereafter. Even if you owe taxes to Ohio, that does not necessarily mean you qualify.
So far, this is just for businesses operating in Ohio. If you operate a business in Ohio and have a tax bill, you can register at OhioCrypto.com. All payments are processed by third-party processorBitPay. Payments are converted to dollars before their deposit into a state account.
Of course, it’s important to remember the only big missive the U.S. International Revenue Service (IRS) has given about crypto. Way back in 2014,the IRS ruled that cryptocurrency is property in Notice 2014-21. That classification as property has some big tax consequences, accentuated by wild price swings.
Related:How Crypto Is Taxed in the US: A Taxpayer’s Dilemma
If you owe $10,000 in taxes, you could pay the $10,000 in U.S. dollars. If you pay with $10,000 worth of bitcoin, as long as the crypto is worth $10,000 when you pay, you’re home free, right? Not really. You need to consider the sale you just made.
The transfer of the crypto to the tax man is a sale, and that could mean more taxes for the year of the payment. If you bought the crypto for $10,000 the day you pay your taxes, there’s no gain. But suppose you bought the crypto a year ago for $1,000 and it’s worth $10,000 when you use it to pay taxes? That’s right, you have a $9,000 gain.
Hopefully, it is a long-term capital gain, which would make the taxes lower, at least for federal tax purposes. Remember,Californiataxes ordinary income and capital gainat the same high tax rates. So even capital gain does not save you tax money in California, except for being able to apply your basis. That is, when you sell a capital asset, you should not have to pay tax on the money you used to invest.
If you actually tax in crypto, or sell crypto to pay tax in dollars, you still have taxes to pay — because of your tax payment. You could trigger a tax loss too, if you had bought the crypto for $7,000 and transfer it for taxes when it is worth $5,000. These days, a sale might well trigger a loss, which you may be able to use.
With crypto, of course, all sorts of transfers can trigger taxes. For example, payments using digital currency made to independent contractors are taxable transactions to both parties. The recipient has income measured by the market value at the time of receipt. Then, there are the reporting mechanics, which continue to be a big issue for many people.
If you are paying independent contractors with crypto, how do you report it? As with other payments to independent contractors, payers engaged in a business must issueIRS Form 1099. You can’t enter “1,000 bitcoins” on the IRS Form 1099.
Instead, you must value the payment in dollars, as of the time of payment. In short, a payment made using digital currency is subject to Form 1099 reporting just like any other payment made in property. What’s more, the person paying the independent contractor with crypto just sold it. Whether that triggers a gain or loss depends on the payer's tax basis. The gain might be capital or ordinary. If you hold it for more than a year, the best deal is long-term capital gain treatment.
But actually, gain or loss depends on whether the digital currency is a capital asset in your hands. Most people can probably say they are investors in crypto, not a dealer or someone using it in their trade or business. But it is worth considering. Ordinary income vs. long-term capital gain treatment can spell a big difference. You might have to pay only 15% (to the IRS) on long-term capital gain. But the top long-term capital gain rates are 20%, plus the possibility of the 3.8% net investment income tax under the Affordable Care Act.
Remember, every time you transfer crypto, you might trigger a gain or loss. The tax basis and holding period are important, as is record-keeping. If you receive digital currency as payment, you must you include its fair market value as income. Report the fair market value in U.S. dollars on the date you receive it. If you “mine” digital currency, you have income frommining, and the fair market value of what you produced is income. Happy planning.
Related reading:5 Cryptocurrency Tax Questions to Ask on April 15th
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• Key Bitcoin Price Indicator Suggests $21,000 ‘Fair Value’ By End Of 2019
• 'Where's the Gratitude, Peter Schiff?' - Gold Bug Gets Grilled By Bitcoin Proponents |
Germany's Metro says $6.6 billion bid undervalues company
FRANKFURT (Reuters) - Metro said that an unsolicited offer by two prominent investors to take over the German retailer substantially undervalues it and advised shareholders on Sunday to hold off on taking action until management comments further.
On Friday, EP Global Commerce, an acquisition vehicle owned by the Czech and Slovak investors, made the takeover offer, which valued the company at 5.8 billion euros ($6.6 billion).
The retailer, noting that the offer price was only 3% above the closing share price on Friday, said the bid "substantially undervalues the company and does not reflect its value creation plan".
Metro said management was continuing to transform the company. It said it would comment further once the full offer document was available and that shareholders should take no action in the meanwhile.
EP Global Commerce, which already held a stake of nearly 11% in Metro, said on Friday that its offer price of 16 euros for each ordinary share and 13.80 euros for each preferred share represented a 34.5% premium to when EP Global Commerce made its initial investment in August.
The firm, co-owned by Czech investor Daniel Kretinsky and Slovak partner Patrik Tkac, said the offer was "a compelling value and a unique opportunity" for shareholders given the difficult market and challenges facing Metro.
Once a sprawling retail conglomerate, Metro has in recent years been restructuring to focus on its core cash-and-carry business, selling off the Kaufhof department stores and then splitting from consumer electronics group Ceconomy.
It still operates in 26 countries with 771 stores and 150,000 employees, but it is trying to offload its loss-making Real hypermarkets chain, as well as its operations in China.
The Czech and Slovak bidders signaled that further changes were needed at Metro, though they said they would not close stores in Germany and its core markets, or cut jobs substantially.
"Metro needs to regain the capability to swiftly react," they said, adding that otherwise, it "would be exposed to significant risks due to stagnant or declining results."
(Reporting by Tom Sims; Editing by Keith Weir) |
Ethiopia foils coup attempt after military chief shot dead by bodyguard in his home
Prime Minister Abiy Ahmed announced the failed coup in a television address - ETV he Ethiopian government appeared to have foiled a coup attempt last night after the army's chef of staff was shot dead by his own bodyguard and several other high-ranking officials were killed. The failed coup in the Amhara region was led by a high-ranking military officer and others within the military, Prime Minister Abiy Ahmed, wearing military fatigues, announced on the state broadcaster. Since taking office just over a year ago, Mr Abiy has embarked on unprecedented reforms in Ethiopia, Africa's second-most populous country and one of its fastest-growing economies. But the prime minister's shake-up of the military and intelligence services has earned him powerful enemies, while his government is struggling to rein in powerful figures in Ethiopia's myriad ethnic groups fighting the federal government and each other for influence and resources. In a related development, the head of Ethiopia's military was shot dead in the capital not long after the attack in Amhara, during which soldiers attacked a building in which a meeting of regional officials was taking place, Nigussu Tilahun, spokesman for the prime minister, told a news conference Sunday. The regional president and at least two other officials were among the victims of that attack, he said. The violent attack in Bahir Dar, capital of Amhara, was linked to the subsequent assassination of army chief Gen. Seare Mekonnen, who was shot dead by a bodyguard at his residence in Addis Ababa. A retired army general visiting the army chief at the time was also killed in the same attack, said the spokesman. "There is a link between the two attacks," Nigussu said. The attack in Bahir Dar was allegedly led by a renegade brigadier who had recently been pardoned by Ethiopia's prime minister after being jailed for some offenses. Most of the perpetrators of the attack in Bahir Dar have been apprehended and others are being hunted down, said the spokesman. Story continues The US Embassy reported gunfire in the capital Saturday and urged people to be careful. In Bahir Dar residents told The Associated Press they could still hear gunshots late Saturday. Ethiopia's internet appeared to be shut down on Sunday. The attempted coup in Amhara is the latest challenge to Abiy, who was elected last year as a reform-minded young leader. Abiy has captured the imagination of many with his political and economic reforms, including the surprise acceptance of a peace agreement with bitter rival Eritrea, the opening of major state-owned sectors to private investment and the release of thousands of prisoners including opposition figures once sentenced to death. Along the way he has faced some challenges. In June 2018, only months in office, an attempt to hurl a grenade at Abiy caused a deadly explosion at a massive rally in support of the sweeping changes in Ethiopia. Nine police officials were arrested over that incident, state media reported. In October rebellious Ethiopian soldiers protested over pay, causing a security incident in the capital. Ethiopia's army is one of the largest in Africa. The country is a key regional security ally for the United States and others in the restive Horn of Africa region. |
UPDATE 3-Southeast Asian leaders emphasise economic strength in face of U.S.-China tensions
* Thai PM urges progress on regional economic partnership
* Bloc seeking to bolster position in face of trade war
* Chairman's statement touches on Myanmar, South China Sea (Edits wording in first paragraph)
By Patpicha Tanakasempipat and Panu Wongcha-um
BANGKOK, June 23 (Reuters) - Southeast Asian leaders agreed on Sunday to work together on the region's economy and security to strengthen their position to face growing U.S.-China tensions, as they wrapped up their summit in Bangkok.
The 10-member Association of Southeast Asian Nations (ASEAN) will need its collective economic strength for bargaining power globally, especially amid the trade tensions between the world's top two economies, Thai Prime Minister Prayuth Chan-ocha told a news conference, as chairman of the 34th ASEAN Summit.
Prayuth urged ASEAN nations to complete negotiations this year for the China-initiated Regional Comprehensive Economic Partnership (RCEP) pact that includes 16 countries but has been held up by disputes between China and India over access to markets and protected lists of goods.
Negotiations began in 2012 on RCEP, which envisages the creation of a free trade zone encompassing 45% of the world's population and more than a third of its GDP, but does not involve the United States.
"This will help ASEAN handle the changes and uncertainty that will happen in the region going forward, particularly the impacts of trade tension between ASEAN's important trade partners," Prayuth said.
First proposed by China, RCEP's 16 signatories comprise the 10 ASEAN member states and six Asia-Pacific countries, including major economies China, India, Japan and South Korea. ASEAN has existing free-trade agreements with all six countries.
"If we can do this, we will have the bargaining power and base for negotiation. Because when combined, we are 650 million people, the largest regional bloc in the world," the Thai prime minister said of ASEAN.
Singaporean Prime Minister Lee Hsien Loong told reporters that ASEAN "must expect some fallout" from the U.S.-China trade war, pointing to Singapore's already slowing economy this year.
Four ASEAN countries - Thailand, Indonesia, Singapore and Vietnam - will discuss the trade war in next week's G20 summit, which assembles 20 major economies, in Tokyo, Prayuth said. Thailand will host the next ASEAN summit in November.
ASEAN members also agreed on a common approach on a U.S.-led Indo-Pacific initiative on Sunday, at a time when U.S.-China tensions are rising and forcing ASEAN countries to take sides.
Prayuth hailed the bloc's agreement on the ASEAN Outlook on the Indo-Pacific as a "significant step," as it will help guide cooperation in the region in an increasingly polarised geopolitical landscape.
The outlook, seen by Reuters, is aimed at "helping to promote an enabling environment for peace, stability and prosperity in the region in addressing common challenges".
SOUTH CHINA SEA
The chairman's statement, released later on Sunday, called for a de-escalation of tension in the South China Sea.
The South China Sea is one of the world's busiest waterways, and a potential flashpoint in the region as several ASEAN members - the Philippines, Vietnam, Malaysia, Brunei and Indonesia - as well as China and Taiwan have conflicting territorial claims.
"We emphasised the importance of non-militarisation and self-restraint in the conduct of all activities by claimants and all other states ... that could further complicate the situation and escalate tensions in the South China Sea," the statement said, without naming China but referring instead to its militarisation of islands and islets.
The statement also said a first reading of a Code of Conduct negotiating draft for the disputed South China Sea would likely be finished by this year. Thailand has said the final reading could be expected by the end of 2021.
"There are some issues in the COC which are going to be very difficult to work out – in their nature they are going to be contentious," Singapore's Lee said. "I think the vital interests will not be easy to reconcile."
The chairman's statement also said ASEAN supported the repatriation process of Myanmar's fleeing Rohingyas, but stopped short of condemning Myanmar.
Rights groups have called on ASEAN to rethink support for plans to repatriate Rohingya Muslims who have fled member state Myanmar, where activists say returnees could face discrimination and persecution.
More than 700,000 Rohingya crossed into Bangladesh in 2017, according to U.N. agencies, after a crackdown by Myanmar's military sparked by Rohingya insurgent attacks on security forces.
Formed more than 50 years ago, ASEAN has historically struggled with challenges facing the region because it works only by consensus and is reluctant to become involved in any matter regarded as internal to a member state.
"(We) expressed our continued support for Myanmar's commitment to ... facilitate the voluntary return of displaced persons in a safe, secure and dignified manner," the statement said, not calling the Rohingya by name.
ASEAN also expected a commission created by Myanmar's government to seek accountability through "an independent and impartial investigation into alleged human rights violations and related issues".
The statement, however, proved rather weak in the face of a call on Saturday by Malaysia's foreign minister Saifuddin Abdullah to bring the perpetrators of massacres and atrocities against the Rohingya to justice and to "include the citizenship of the Rohingyas" in the repatriation process.
"Developments in Myanmar ... (are) providing a litmus test for ASEAN's capacity to manage developments in one of its member states that have wider ramifications for the region and, indeed, beyond," Marty Natalegawa, a former Indonesian foreign minister, told Reuters. (Additional reporting by John Geddie; Editing by Kay Johnson and Alison Williams) |
Woman, 25, arrested after RAF jets scrambled to escort Jet2 flight back to Stansted
A Jet2 flight was forced to return to Stansted due to an "extremely disruptive passenger" A woman has been arrested after two RAF jets were scrambled to escort a Jet2 flight back to Stansted Airport. The extremely disruptive passenger, 25, was on board a flight from Stansted to Dalaman in Turkey on Saturday when the pilot was forced to return to the London airport. Essex Police confirmed that a woman was arrested on suspicion of assault and endangering an aircraft. A Jet2 spokeswoman said: "We are aware of an incident regarding an extremely disruptive passenger on a flight from Stansted to Dalaman earlier this evening. "The aircraft has returned safely and we are liaising with the relevant authorities to support their investigation. "We are working hard to ensure the remaining customers reach their destination as soon possible." An Essex Police spokeswoman said: "We were made aware of a disruptive passenger on an inbound flight to Stansted this evening, Saturday June 22. "There is a possibility that residents nearby may have heard a loud noise, often associated with a sonic boom, as the aircraft descended into Stansted airspace. "Officers attended and arrested a 25-year-old woman on suspicion of two assaults and endangering an aircraft. She remains in custody." READ MORE Homeless man dies of '100% burns' after tent he was living in is set on fire Kitten survives 40-mile trip trapped under car bonnet Boris Johnson's neighbour speaks out after calling the police to domestic disturbance A Royal Air Force spokeswoman said: "We can confirm that RAF quick reaction alert Typhoon aircraft from RAF Coningsby scrambled to escort a commercial flight into Stansted shortly after take-off due to reports of a disruptive passenger." The two Typhoon fighter aircraft caused a sonic boom as the plane was escorted back to Stansted, prompting people to call 999 as they feared there had been an explosion. One man described the noise as a "huge bang" which "nearly blew my window out". Bishop's Stortford police tweeted: "Large number of 999 calls coming in about a loud explosion. We have liaised with @EssexPoliceUK who are confirming that this is a sonic boom from a passing aircraft." |
'Competing In Obstacle Course Races Helped Me Gain Tons Of Muscle—And Lose 35 Pounds'
Photo credit: Kirin Hart From Women's Health I was athletic as a kid and in high school. I also ran track all four years in college. After I graduated, my life totally changed. I got a job after school and was engaged to my college boyfriend. We married in 2004, and soon after, we started a family. I had my son in March 2007 and was still nursing him when I found out I was pregnant with my daughter. To an outsider, it might sound as if I had it all. When I think back and reflect on that period of my life, I realize I was also struggling with postpartum depression during that time, among other mental health issues. I just felt meh. Flat. I was sad. I was isolated from my friends and family and very lonely, in part because of my husband’s work schedule. I was home with little kids a lot, and also totally sedentary. I felt like I was letting myself go physically and emotionally. In 2010, when my daughter was 2 years old, people started congratulating me about being pregnant again-but I wasn’t. I was at a heavy weight for me personally (around 175 pounds). I was extremely self-conscious, and the pregnancy comment really made an impact on me. I expressed my frustration to my husband at the time, who suggested I join a gym. I started going to the Retro Fitness location in my area and spent most workouts doing low-impact cardio on the elliptical. When I went from doing nothing to doing something , I lost a bit of weight. I was down about 10 pounds, and it jump-started my process of getting back into shape. A short time later, my husband and I hit our first major rough patch. I was unhappy and began spending more time at the gym, where-for the first time in ages-I felt like I was developing a social network that was my own, independent from him. View this post on Instagram #tbt to #killington a few weeks ago and #abs and an incredible weekend with #mypeople #lucky #goodfriends. #betterthantherapy #ninjashit #ocr #ninjawarrior #anw #mombod #comeback #getbetter #progress #fitmom #momstrong #ninjatraining . #athlete #getstrong #overcome #trainhappy #theobstacleistheway #comeback #happy #americanninjawarrior #trainhappy #playtime @spartanrace #throwbackthursday A post shared by Kirin (@kirinhartstrong1) on Sep 27, 2018 at 7:37pm PDT A friend from the gym suggested I get into weight lifting as a way to relieve stress. I hadn’t done much weight lifting since college and wasn’t sure how to go about it. So I worked with a couple of personal trainers, quickly realizing how much I enjoyed it. I loved how strong I felt, and I really started to see my body change. I also felt so encouraged and motivated the more I developed genuine friendships at the gym. Story continues In the summer of 2013, one of my girlfriends from the gym invited me to watch an amateur bodybuilding competition . “I think you can totally do this,” I remember my pal telling me. I thought she was crazy, but I was kiiiind of interested. I started researching what these types of competitions entail and how to enter. View this post on Instagram New skill unlocked. I've never made it across a #circuitboard before. Slow and pretty awkward, but #ididit #ididathing #ninjatraining #keepgrinding #betterthanyesterday #dontletgo #anw #ocr #comeback #athlete #getstrongagain #strongmom #fitmom #momstrong #ninjawarrior #betterthanyesterday #comeback #fitlife #aclreconstructionsurgery #betterthanyesterday #ninjatraining #backtowork. #getbackup #progress #ninjawarrior #training #getstrong #overcome #recovery #trainhappy #theobstacleistheway #americanninjawarrior A post shared by Kirin (@kirinhartstrong1) on Oct 14, 2018 at 12:22pm PDT By the fall of 2013, I had competed in two amateur competitions. I came in fourth place in both, but I didn’t do the prep work in a healthy way at all. I knew I wasn’t eating enough on the very low-calorie, low-carb diet I followed. It consisted of eating six (unsatisfying) meals a day, while lifting and working out for hours on end, and also while I working full time and trying to be the best mother I could. I competed at 117 pounds (a gust of wind could've blown me over...). Yet, I constantly felt fearful that I was overweight and saw every possible flaw that didn’t exist. Deep down I knew that the lifestyle was hurting my mental health. At this point, I knew I had to look for something healthier to replace my bodybuilding obsession and to build me back up mentally. My husband suggested that I try obstacle-course racing. It was completely outside of my wheelhouse: I didn’t like mud, being sweaty, being outdoors, or large crowds of people-all things that an obstacle course race is chock full of. I decided to try it anyway. I signed up for my first Spartan race in the spring of 2014. And what do you know? I fell in love. I found races on Groupon and signed up for every event I came across. I brought my children to some of the races so they could do the kids’ competitions-they loved it! Over the course of a couple of seasons, I started getting to know more and more people, once again loving the feeling of being part of a community. View this post on Instagram Back on the horse (or at least a #salmonladder). This was the first time I have made more than one move on a salmon ladder without an #autobelay (thinking of you @saratoganinjalab!!) Little moves, and still wary of that next one... But #progress!! #overcomeobstacles playtime #ninjatraining #betterthanyesterday #dontletgo #anw #ocr #comeback #athlete #getstrongagain #fitmom #momstrong #ninjawarrior #comeback #fitlife #aclreconstructionsurgery #ninjatraining #backtowork. #getbackup #ninjawarrior #training #getstrong #overcome #recovery #trainhappy #theobstacleistheway #americanninjawarrior A post shared by Kirin (@kirinhartstrong1) on Nov 1, 2018 at 6:45pm PDT I competed in the Obstacle Course Racing World Championships (OCRWC) in 2015, where I was one of about 75 women from around the world to complete all of the obstacles in the allotted time period. I also competed at OCRWC again in 2016, which was my first international trip for a competition. I adored the camaraderie and the obstacles. But the running? Not so much. By total luck, I learned about a pretty perfect alternative for me: ninja warrior classes offered a local obstacle gym. Score. I signed up for a series of classes and have stuck with it ever since. Obstacle courses and ninja training also helped me learn to seriously appreciate my muscle. Obstacle challenges completely changed my body. While I don’t weigh myself , I know I’m somewhere in the neighborhood of 140 pounds, and I feel great about that. Having muscle is the biggest change to my physique, and to be honest, it has taken years of consistent work to get to this point. Sometimes when I’m at the gym, people ask me how long I have been training or how often I work out to look like the way I do. I tell them that it has been a solid eight years, and looks of relief show up on their faces. It's a gradual process. I am not the result of any kind of shortcuts; no shakes or wraps or diet teas . To be frank, I bust my ass-and I’m proud of it. I try to do some sort of activity at least five or six days a week. I might go rock climbing once or twice a week, do ninja obstacles a couple times, plus one aerial yoga class. On the sixth day of the week, I may just do cardio on the treadmill. I'm not super strict about my schedule or patterns, and I love that my workouts never feel like workouts because I have so much fun. View this post on Instagram I was feeling super #inspired and #motivated after the #jam Saturday night. Decided to give some new stuff a try on the #pole. My very first #handspring, thanks to the patience and great coaching by @spiraling.mermaid, and a bonus #balance high up on the pole. #better. #movement #playtime #happy #bettereveryday #getstrongagain #ninjatraining #betterthanyesterday #anw #ocr #athlete #fitmom #momstrong #ninjawarrior #comeback #fitlife #aclrecovery. #happy #trainhappy #theobstacleistheway #americanninjawarrior #powerofpositivity #nyc A post shared by Kirin (@kirinhartstrong1) on Jun 18, 2019 at 5:25am PDT As for food? I’ve totally changed my diet over the years. My fitness routine has helped me eat more mindfully than before. I now eat intuitively-meaning when I notice my hunger cues. I also eat to *fuel* my body so I can do all of the activities I love with energy and safely, and I consume real food and mostly cook at home. View this post on Instagram That was a fun afternoon big #tada and a hard work concentration tongue. Thanks for hanging out with me @lucha_ninja and thanks for finding my #abs @brianmotz_simplyphotography!!!! So good to see you! #bettereveryday #fitlife #getstrongagain #ninjatraining #betterthanyesterday #anw #ocr #athlete #fitmom #momstrong #ninjawarrior #comeback #fitlife #aclrecovery #backtowork. #getbackup #training #trainhappy #theobstacleistheway #americanninjawarrior #powerofpositivity #latsfordays #stressrelief #spartanrace #citifield A post shared by Kirin (@kirinhartstrong1) on Apr 17, 2019 at 8:16am PDT I don’t restrict my calories or let myself feel hungry as a punishment, like I did when I was bodybuilding. I found that if you don’t eat, you’re cranky and miserable. The one good thing I did learn from my bodybuilding days, however, was that my body doesn’t like dairy. I feel better without it, though I do miss cheese. This is what a day of eating looks like for me now: Breakfast: Typically, I go for oatmeal, peanut butter toast, or eggs. I’ll pair one of those with fruit, and coffee with almond milk. Snack: Fruit or veggies, nuts, peanut butter, avocado, or a cup of coffee with almond milk are my go-to snacks. (Sometimes there are treats on the table in the office, and if they’re homemade, I’m down!) Lunch: My midday meal is usually leftovers from dinner, which involves some sort of protein and vegetable. Or, I’ll just have a peanut butter sandwich. Snack: Depending on the day, I may just have some more fruit. Other times I have a snack bar, or a few dates with some nuts. Dinner: You’ll probably see grilled chicken and roasted veggies, plus pasta (but no sauce-I don’t like it) or beans on my plate. My kids and I also eat breakfast for dinner (pancakes or waffles, bacon, and juice) pretty regularly. We have my parents over for dinner once a week-and my mom and I split the cooking. When I have my kids (who are now 10 and 12) on the weekends, we’ll go out to eat…and I definitely steal bites from their plate. Dessert: I eat something sweet nearly every day, and sometimes I’ll have a lunch and a dinner dessert. Often it’s fruit, but from time to time I bake and I eat my homemade treats. I’m a big chocolate girl. View this post on Instagram This morning was extremely unpleasant, and I recognized early that I needed to #getmoving to #takecare of myself #selfcare #mygirl (#photocredit) and I went to #highexposure and I decided to work on a 5.11 that I have struggled with for ages. I couldn't get the #fullsend , but farther than I have ever gotten. I needed that. #ninjatraining #progress #bettereveryday #fitlife #getstrongagain #betterthanyesterday #anw #ocr #athlete #fitmom #momstrong #ninjawarrior #comeback #fitlife #aclrecovery #backtowork. #getbackup #training #trainhappy #theobstacleistheway #americanninjawarrior #powerofpositivity #latsfordays #stressrelief A post shared by Kirin (@kirinhartstrong1) on Jun 2, 2019 at 1:17pm PDT Finding my fitness groove helped me feel better physically, yes. But it also gave me the strength to get over the toughest emotional hurdles of my life. Within the past couple of years, my husband and I divorced. It was a hard realization that I had become so completely dependent on him for everything from my professional life to parenting, down to the way I dressed. There were moments where I actually believed I wouldn’t be able to go on without him, but I got through it and proved to myself just how strong I am. I also was formally diagnosed with anxiety and depression and am now managing my mental health conditions with medication, on top of leaning into fitness and on my friends and family. I feel good. Even those closest to me say that I seem happier than ever, and that’s the best compliment you can receive. View this post on Instagram More #anw11 #coursetesting #shenanigans, maybe the best #sundaybrunch I have ever eaten at #cafeEZ in #EllicotCity, #MD, and fun at @terrainracing with @aimeeflint and @otherworldocr. More to come from terrain later. #mypeople #happy #bettereveryday #getstrongagain #ninjatraining #betterthanyesterday #anw #ocr #athlete #fitmom #momstrong #ninjawarrior #comeback #fitlife #aclrecovery. #getbackup #training #trainhappy #theobstacleistheway #americanninjawarrior #powerofpositivity #latsfordays #vacationmode A post shared by Kirin (@kirinhartstrong1) on Apr 28, 2019 at 4:16pm PDT All of those things aside, I’m 38 years old, and I’m healthier on the outside and inside than I have been in a while. I am happy with how I look, which is something that I know that many women my age struggle to say. I’m proud of how far I have come, even though I know how far I still have left to go as an athlete, a parent, and as a person in general. I believe that my physical health is a byproduct of how I feel on the inside. Taking care of myself has been the thing that has gotten me through some dark and difficult times. I will be better for my children. They need me the best I can be, and I can only be the mom they deserve and the woman I deserve to be when I’m taking care of and challenging myself. ('You Might Also Like',) 14 Keto Breakfast Recipes That Make Waking Up So Much Easier 13 MS Symptoms In Women That Shouldn't Be Ignored Love Carbs? We Created This 21-Day Keto Diet Plan Just for You |
The Biggest Highlights From Night One of the First 2020 Democratic Debate
Elizabeth Warren said she’d abolish private insurance, while Amy Klobuchar questioned “kicking half of America off of their health insurance.” Julián Castro attacked Beto O’Rourke for not supporting proposals to treat border crossings as civil and not criminal issues. And nearly everyone on stage went after President Donald Trump at one point. The first Democratic debate of the 2020 election quickly divided the 10 candidates on stage Wednesday night from those supporting more progressive proposals to those who chose a more moderate path, even as they broadly agreed on their goals. Moderated by “Today” co-anchor Savannah Guthrie, NBC Nightly News host Lester Holt, “Meet the Press” moderator Chuck Todd, MSNBC host Rachel Maddow and “Noticias Telemundo” host José Diaz-Balart, the debate was held in Miami. In the early moments of the debate, a couple candidates ducked the moderators’ attempts to get them to criticize fellow Democrats. O’Rourke, for example, declined to say whether he supported a marginal individual tax rate of 70% — first proposed by Rep. Alexandria Ocasio-Cortez — on individuals who earn more than $10 million per year. But the debate soon turned heated, as their policy differences were put under a heat lamp. Along with Warren, Klobuchar, Castro and O’Rourke, the debate featured Washington Gov. Jay Inslee, Hawaii Rep. Tulsi Gabbard, New York City Mayor Bill de Blasio, Ohio Rep. Tim Ryan and former Maryland Rep. John Delaney. Here’s a look at what went down at the first debate. Elizabeth Warren and Bill de Blasio said they would abolish private health insurance (L-R) Sen. Cory Booker (D-NJ), Sen. Elizabeth Warren (D-MA) and former Texas congressman Beto O'Rourke take part in the first night of the Democratic presidential debate on June 26, 2019 in Miami, Florida. | Joe Raedle—Getty Images When Lester Holt asked the Democratic presidential candidates who supported getting rid of private insurance in favor of a government-run plan, only two candidates raised their hands: Warren and de Blasio. Warren’s hand shot up. She has made instituting “ Medicare-for-All ” an important part of her platform. Story continues “There are a lot of politicians who say it’s not just possible, we can’t do it … They are really telling you they won’t fight for it. Health care is a basic human right and I will fight for basic human rights,” Warren said. The New York mayor was a bit slower to raise his hand, but soon showed his support for the idea. A few moments later, O’Rourke started to comment that choice is important for health insurance but de Blasio cut him off, chastising him for failing to acknowledge problems with the existing health insurance system. “Congressman O’Rourke, health insurance is not working for tens of millions of Americans when you talk about the co-pays, the deductibles, the premiums, the out-of-pocket expenses,” de Blasio said. “It’s not working. How can you defend a system that’s not working? Congressman, you’ve got to start by acknowledging that the system is not working for people. Why are you defending private insurance to begin with?” Klobuchar, meantime, raised doubts about moving to an entirely government-run health care system. “It’s a bold approach — it’s something Barack Obama wanted to do when we were working on the ACA, and that is a public option,” she said. “I am just simply concerned about kicking half of America off of their health insurance in four years, which is exactly what this bill says.” Beto O’Rourke, Cory Booker and Julián Castro spoke in Spanish Appropriately enough for a debate that was simultaneously broadcast on Telemundo, three of the candidates broke out in Spanish at various points in the debate: O’Rourke, Booker and Castro. Castro, who does not speak fluent Spanish, sounded most at ease with it when he delivered a few simple words toward the end of the debate. O’Rourke, who represented a border district, speaks Spanish fluently and has run campaign ads in Spanish , was the first to use it right out of the gates. Ironically, Booker, who has given an interview in Spanish on Univision and learned it in an immersion studying Ecuador, fumbled a little in the delivery. Early in the debate, in response to a question about the top individual tax rates, O’Rourke said: “Necesitamos incluir cada persona en el éxito de este economia. Pero si queremos hacer eso, necesitamos incluir cada persona en nuestro democracia. Cada votante necesitamos la representación, y cada voz necesitamos escuchar.” Loose translation: “We need to include every person in the success of this economy. But if we want to do that, we have to include every person in our democracy. Every vote needs representation and every voice needs to be heard.” Moderator Savannah Guthrie then gave O’Rourke more time to answer the specific question, which was whether he would support a top marginal tax rate of 70% on the very highest earners. “I would support a tax rate and a tax code that is fair to everyone. Tax capital at the same rate that you tax ordinary income. Take that corporate tax rate up to 28% you would generate the revenues you need to pay for the programs we’re talking about,” he said. Later, in response to a question about what he would do about the immigration crisis on day one as president, Booker also answered in Spanish: “La situacion ahora es inaceptable. Es de presidente a atacado a demonozado los imigrantes es inaceptable voy a cambiar este.” Loose translation: “The current situation is unacceptable. For the president to attack and demonize immigrants is unacceptable. I’m going to change this.” He then switched to English, adding “On Day One, I will make sure that, No. 1, we end the ICE policies and the CBP policies that are violating human rights. When people are coming into this country they will not leave their human rights at the border.” O’Rourke also answered the question in Spanish, which debate moderator José Días-Balart also put to him in Spanish: “Vamos a tratar cada persona con el respeto y dignidad que merecen como humanos.” Loose translation: “We will treat each person with the respect and dignity they deserve as human.” Switching to English, he added: “We would not turn back Valeria and her father, Oscar. We would accept them into this country and follow our own asylum laws. We would not build walls, we would not put kids in cages.” In his closing statement, Castro, the only Hispanic in the race, added some Spanish of his own: “Me llamo Julián Castro y estoy postulando por presidente de los Estados Unidos.” Loose translation: “My name is Julian Castro and I am running for president of the United States.” Read More: ‘Adios to Donald Trump.’ Democratic Candidates Address Voters in Spanish in First Debate @CoryBooker thank you senator for your work and especially for supporting Ecuador and its people! pic.twitter.com/e9cLFiT5OP — JOSE (@Josemangasha) June 16, 2016 My Spanish is terrible. — Andrew Yang (@AndrewYang) June 27, 2019 Amy Klobuchar got off some effective one-liners Democratic presidential candidates New York City Mayor Bill De Blasio (L-R), Rep. Tim Ryan (D-OH), former housing secretary Julian Castro, Sen. Cory Booker (D-NJ), Sen. Elizabeth Warren (D-MA), former Texas congressman Beto O'Rourke, Sen. Amy Klobuchar (D-MN), Rep. Tulsi Gabbard (D-HI), Washington Gov. Jay Inslee, take the stage during the first night of the Democratic presidential debate on June 26, 2019 in Miami, Florida. | Christopher Morris for TIME Klobuchar proved effective during the debate at turning out one-liners. After Inslee tried to bill himself as “the only candidate here who has passed a law protecting a woman’s right of reproductive health through health insurance,” Klobuchar responded: “I just want to say there’s three women up here that have fought pretty hard for a woman’s right to choose,” referring to herself, Warren and Gabbard. Later, criticizing President Donald Trump’s handling of foreign policy, she said: “This president is literally every single day … one tweet away from going to war, and I don’t think we should conduct foreign policy in our bathrobe at five in the morning.” And she used a homespun Minnesota phrase to criticize Trump’s proposals to cut prescription drug prices, saying “that’s what we call at home ‘all foam and no beer.'” She was not the only one with a one-liner at the ready. Early in the debate, Inslee took aim at Trump’s frequent criticism of wind turbines, which he has claimed — in what can only be described as wildly inaccurately — cause cancer. “Donald Trump is simply wrong,” Inslee said. “He says they cause cancer. I say they cause jobs.” Warren scored in the debate later when moderator Chuck Todd noted that she has a plan for a lot of different issues, asking if she had a plan to deal with Senate Majority Leader Mitch McConnell if he remained in control of the upper chamber. “I do,” she said, pausing a beat as the crowd cheered. Castro hit O’Rourke over immigration policy Democratic presidential candidate former Housing and Urban Development Secretary Julian Castro speaks during a Democratic primary debate hosted by NBC News at the Adrienne Arsht Center for the Performing Art, Wednesday, June 26, 2019, in Miami. | Wilfredo Lee—AP Castro and O’Rourke sparred in the first hour of the debate over repealing Title 18 of Section 1325 , a part of U.S. code that makes entering the country illegally a misdemeanor. A highlight of Castro’s “People First” immigration plan is repealing the rule entirely, turning illegal border crossing into a civil and not criminal issue. During the tense moment, Castro assailed O’Rourke for not wanting to repeal the title due to concerns over human trafficking. Castro, the former mayor of San Antonio, told the former representative from a border region of Texas that human trafficking is still dealt with elsewhere in the code. “Do your homework,” the former Housing Secretary said. Castro’s plan also calls for a rollback of apprehensions at the U.S.-Mexico border. O’Rourke’s immigration plan proposes similar measures to decriminalize immigration, also calling for addressing and analyzing the causes of migration in South American nations. Warren’s progressive plan goes further with a proposal to decriminalize illegal border crossings entirely, saying that she wants to also repeal a similar proviso which makes entering the country after deportation without proper papers a felony. Read More: Julián Castro Finally Had His Big Moment at the First Debate The discussion of climate change fell short Democratic presidential hopeful former US Secretary of Housing and Urban Development Julian Castro (L) and Former US Representative for Texas' 16th congressional district Beto O'Rourke (R) address each other as US Senator from New Jersey Cory Booker and US Senator from Massachusetts Elizabeth Warren look on during the first Democratic primary debate of the 2020 presidential campaign season at the Adrienne Arsht Center for the Performing Arts in Miami, Florida, June 26, 2019. | Jim Watson—AFP/Getty Images Climate change may have only received a brief discussion, but it was enough time for several mistakes, misstatements and misunderstandings of the issue. Todd asked who pays for climate change mitigation, pointing to the cost of rebuilding homes. But the term climate change mitigation actually refers to reducing emissions. Later, he asked about how to fund climate change programs given the challenges to imposing a carbon tax or other carbon pricing mechanisms. But the primary purpose of carbon pricing isn’t to raise revenue but rather to push companies to reduce emissions. The candidates stumbled too. O’Rourke said we need to keep temperatures from rising 2°C more this century. But in fact scientists say we need to keep temperatures from rising 2°C — and ideally far below that level — above pre-industrial levels. Temperatures have already risen 1°C. On the substance, candidates didn’t get into many of the details, though a few did manage to slip in some elements of their climate plans. Inslee mentioned his work to create a 100% clean electricity grid in Washington state. O’Rourke said he would “mobilize” $5 trillion over ten years to green the economy. Castro said he would get the U.S. back in the Paris Agreement, widely considered to be the bare minimum of what a potential Democratic president could do to address the issue. Delaney referenced a carbon tax plan he pushed in Congress. O’Rourke made a forceful case for impeachment Democratic presidential hopefuls former US Representative for Texas' 16th congressional district Beto O'Rourke participates in the first Democratic primary debate of the 2020 presidential campaign season hosted by NBC News at the Adrienne Arsht Center for the Performing Arts in Miami, Florida, on June 26, 2019. | Jim Watson—AFP/Getty Images The issue of impeachment came up briefly during the first debate, and only at the end. All of the candidates onstage said they believed no one was above the law. But it was O’Rourke who came out most vocally for impeachment, claiming that proceedings in Congress need to begin immediately and that Trump should face legal consequences after he leaves office. “If we set another precedent now that a candidate who invited the participation of a foreign power, a president who sought to obstruct the investigation into the invasion of our democracy, if we allow him to get away with this with complete impunity then we will have set a new standard and that is that some people because of the position of power and public trust that they hold are above the law and we cannot allow that to stand,” he said. Delaney then answered, calling for a more cautious approach to the question of impeachment, echoing House Speaker Nancy Pelosi. “I support Speaker Pelosi’s decisions that she is making in the House of Representatives right now as speaker,” he said. “I think she knows more about the decision as to whether to impeach the president than any of the 2020 candidates combined.” Tulsi Gabbard hit Tim Ryan over Afghanistan Democratic presidential hopeful US Representative for Hawaii's 2nd congressional district Tulsi Gabbard speaks during the first Democratic primary debate of the 2020 presidential campaign season hosted by NBC News at the Adrienne Arsht Center for the Performing Arts in Miami, Florida, June 26, 2019. | Jim Watson—AFP/Getty Images Ohio Rep. Tim Ryan and Hawaii Rep. Tulsi Gabbard clashed on American involvement in Afghanistan in the second half of the debate. When Maddow asked Ryan what he would do about U.S. troops in Afghanistan, noting that the Taliban recently claimed responsibility for killing two American service members there, the Ohio Congressman said he would keep up an American presence. “You have to stay engaged in these situations,” he said. He acknowledged that “nobody likes it, it’s long, it’s tedious” but said his career in Congress had taught him “we must be engaged.” Gabbard did not like that answer at all. She hit back, asking him if that’s what he would tell the parents of the American soldiers killed in Afghanistan. “As a soldier, I will tell you that answer is unacceptable. We have to bring our troops home from Afghanistan,” she said. When Ryan tried to defend his answer, he said the Taliban would grow stronger if the U.S. pulled out. “When we weren’t in there they started flying planes into our buildings,” he added. But this only prompted another criticism from Gabbard. “The Taliban didn’t attack us on 9/11, al Qaeda did,” she said. The exchange ended when Ryan said he believed the U.S. couldn’t withdraw from the world as he said Trump has done. Map: before and after the #DemDebate pic.twitter.com/7y3iNoJR1N — GoogleTrends (@GoogleTrends) June 27, 2019 There were some technical audio problems Moderators Chuck Todd (L) speaks to audience during a technical problem alongside Rachel Maddow as they host the first night of the Democratic presidential primary debate hosted by NBC News at the Adrienne Arsht Center for the Performing Arts in Miami, Florida, on June 26, 2019. | Jim Watson—AFP/Getty Images At the top of the second hour of the debate, NBC News Political Director Chuck Todd tried to ask a question about gun control at the top of the second hour, but the candidates shook their heads, apparently unable to hear him. After Todd and Rachel Maddow tried in vain for several agonizing seconds, they abruptly television viewers back to commercial break. The candidates worked hard to tell their personal stories Democratic presidential hopeful US Senator from New Jersey Cory Booker participates in the first Democratic primary debate of the 2020 presidential campaign season hosted by NBC News at the Adrienne Arsht Center for the Performing Arts in Miami, Florida, June 26, 2019. | Jim Watson—AFP/Getty Images Throughout the debate, many of the candidates used their personal stories to introduce themselves to the audience. Gabbard frequently brought up her military service, for example, while other candidates mentioned their children or family members to emphasize their commitment to various policy issues. At the start of the debate, Gabbard got a question about the gender pay gap but instead spoke about her military background and promised that she knew the costs of war. “I enlisted in the Army National Guard after the al Qaeda terror attacks after 9/11 so I could go after those who attacked us on that day. I still serve as a major. I served over 16 years, deployed twice to the Middle East,” she said. Klobuchar, in her first answer of the night, brought up her family’s education experience in response to a question about whether Democratic proposals for free college are realistic. “I do get concerned about paying for college for rich kids. I do. But I think my plan is a good one. And my plan would be to, first of all, make community college free and make sure that everyone else besides that top percentile gets help with their education,” she said. “My own dad and my sister got their first degrees with community college. There’s many paths to success, as well as certifications.” Some of the most personal moments came during answers about gun violence and race relations in the United States. Early in the debate, Booker referenced his neighborhood in New Jersey, saying “I live in a low-income black and brown community. I see every single day that this economy is not working for average Americans.” Then when he was asked about his aggressive gun-control proposals, he again related the policies to his personal experiences. “I hear gunshots in my neighborhood,” Booker said. “I think I’m the only one, I hope I’m the only one on this panel here who had seven people shot in their neighborhood just last week.” He went on to say that he wants to take immediate action. “For millions of Americans, this is not a policy issue, this is an urgency,” Booker said. “And for those who have not been directly affected, they’re tired of living in a country where their kids have to go to school to learn about reading, writing and how to deal with an active shooter in their school.” Castro, the former Secretary of Housing and Urban Development, grew emotional and spoke about his daughter when asked what he would do to address the problem of school shootings. “I’m the dad of a 10-year-old girl, Carina, who’s here tonight. And the worst thing is knowing that your child might be worried about what could happen at school, a place that’s supposed to be safe,” he said. He went on to say that he believes he could accomplish “common sense gun reform” in 2021 if elected President. And New York Mayor Bill de Blasio also took the time to bring up his son when discussing gun policy. “There’s something that sets me apart from all my colleagues running in this race and that is for the last 21 years I’ve been raising a black son in America,” said de Blasio, who is white. “I have had to have very, very serious talks with my son Dante about how to protect himself on the streets of our city and all over this country, including how to deal with the fact that he has to take special caution because there have been too many tragedies between our young men and our police too.” “We need to have a different conversation in this country about guns, but also a different conversation about policing,” he said. The candidates took some extra measures to get attention Marianne Williamson attends the Project Angel Food's Angel Awards 2015, Honoring Marianne Williamson & Founding Team as well as Entertainment Industry Foundation at Taglyan Cultural Complex on August 22, 2015 in Hollywood, California. | Araya Diaz—2015 Getty Images In the lull before the action began Wednesday, 2020 candidates –– both those who would be on the stage and those who didn’t make it––tried to get a little attention on social media. Marianne Williamson sent out her own version of a debate-night drinking game. The self-help author — who is one of Thursday night’s contenders — recommended in a press release that journalists working during the debate “substitute a yoga move for a shot of booze.” The press release suggested poses for each mention of common policy points like the Green New Deal (eagle pose) and infrastructure (low plank). “When they say Medicare For All, you just meditate,” Williamson’s release said. In another attempt at humor, Julian Castro’s press secretary Sawyer Hackett went along with a joke about Miami Vice on Twitter. Playing the iconic Detective James Crockett, Don Johnson typically wore white or beige suits throughout the classic ‘80s series. When someone on Twitter asked if any candidates would honor Johnson’s character while in Miami, Hackett joked that his staff “may or may not have participated in a Miami Vice themed prep session earlier this week.” Can confirm he will NOT be wearing a tan suit tonight. Staff may or may not have participated in a Miami Vice themed prep session earlier this week. — Sawyer Hackett (@SawyerHackett) June 26, 2019 John Hickenlooper, the former governor of Colorado, took a different route. After he was reportedly not recognized by security upon his arrival at the debate, Hickenlooper took to Twitter to contrast himself with President Donald Trump. “Last time, we elected the most famous candidate,” he wrote hours before Wednesday’s debate. “Let’s try something new.” Last time, we elected the most famous candidate. Let’s try something new. — John Hickenlooper (@Hickenlooper) June 26, 2019 Though he did not qualify for the debates, Massachusetts Rep. Seth Moulton announced a plan to run TV spots during MSNBC’s broadcast of both nights of debates in New Hampshire, South Carolina, Iowa, and Nevada. “I served four combat tours in Iraq, a war I spoke out against,” Moulton wrote in a tweet on Wednesday. “I’m progressive, I’m practical, and I can beat Donald Trump.” ATTN New Hampshire, South Carolina, Iowa, and Nevada: Look for this ad on MSNBC on both debate nights. pic.twitter.com/ff4gJjtXx1 — Seth Moulton (@sethmoulton) June 26, 2019 Steering clear of controversy, Rep. Eric Swalwell of California shared a photo with his wife and young children. “May not be the candidate who gets the most sleep tonight, but we are thrilled to be in South Florida for tomorrow’s DNC debate,” he said in a tweet on Wednesday. May not be the candidate who gets the most sleep tonight, but we are thrilled to be in South Florida for tomorrow’s @DNC debate. #DemocraticDebates pic.twitter.com/TQnosYaOKB — Eric Swalwell (@ericswalwell) June 26, 2019 Trump called the debate ‘boring’ In this file photo, the Twitter timeline of President Donald Trump is seen on June 29, 2017, in Bydgoszcz, Poland after the President insulted TV show host Mika Brzezinski on the platform, claiming he was bullied by Mrs. Brzezinski and her co-hosts on their show Morning Joe on MSNBC. | NurPhoto — Getty Images Trump decided not to live tweet the entire first Democratic debate from aboard Air Force One on his way to Japan for the G-20 summit. Less than an hour into the debate, he weighed in with a simple criticism: “BORING!” BORING! — Donald J. Trump (@realDonaldTrump) June 27, 2019 His campaign released a more detailed statement at the conclusion of the two-hour debate, saying, “This debate was the best argument for President Trump’s re-election and should really be counted as an in-kind contribution to the President’s campaign. The Democrats proposed a radical government takeover of American society that would demolish the American dream so many are gaining access to under the growing Trump economy.” The statement, attributed to Trump’s 2020 national press secretary Kayleigh McEnany, specifically critiqued the Democrats’ push to eliminate private health insurance (only Warren and de Blasio said they would do away with private health insurance entirely), and their immigration proposals, saying the Democrats need to promote stronger border security measures. “The far-left, socialist policies Democrats embraced tonight were akin to a mutual political suicide pact,” the statement said. Trump had been talking about some of the candidates ahead of their first appearances onstage, including to TIME. In an interview in the Oval Office with TIME on June 17, Trump said “Biden is not the same Biden.” He said, “Harris has not surged” and “Bernie is going in the wrong direction.” He acknowledged that Warren is “doing pretty well,” but continued calling her by his derisive nickname for her, “Pocahontas.” And he said, “I don’t believe Mayor Pete has a chance.” Whether or not the president weighs in on Twitter as the debates go on, he offered one overall prediction to TIME: “I would say that probably a progressive wins” the primary. About an hour before the first debate, on his flight to Japan, Trump criticized Biden on Twitter for his role in passing the 1994 Violent Crime Control and Law Enforcement Act, a bipartisan bill that Trump claimed “inflicted great pain on many, but especially the African American Community.” It was the president’s first swipe at a candidate on debate day, though the former Vice President was not on the debate stage the night Trump tweeted about him. He also criticized NBC for the audio mishap. . @NBCNews and @MSNBC should be ashamed of themselves for having such a horrible technical breakdown in the middle of the debate. Truly unprofessional and only worthy of a FAKE NEWS Organization, which they are! — Donald J. Trump (@realDonaldTrump) June 27, 2019 Read More: Transcript of Trump’s TIME Interview About 2020 Everyone prepared for a second night of debates on Thursday The next group of candidates — including Joe Biden, Bernie Sanders and Kamala Harris — will take the stage on Thursday. The next debates will be broadcast on CNN from Detroit on July 30 and 31. With Philip Elliott and Vera Bergengruen in Miami; Tessa Berenson, Charlotte Alter, Justin Worland, Abby Vesoulis, Alana Abramson and Will Kubzansky in Washington; and Mahita Gajanan, Rachel Greenspan, Abigail Abrams and Kathy Dowd in New York. |
Libra controversy: Hedera thanks Facebook for copying its blockchain model
Unless you’ve been living under a rock this past week, you’ll be aware of the hoopla around Facebook Libra . This being Mark Zuckerberg and company, not everyone is a fan. Take, for instance, blockchain venture Hedera which has taken a swipe at the social media giant in a Wall Street Journal ad. “Thank you Facebook Libra. Imitation is the sincerest form of flattery,” the ad, which features the Facebook thumbs up symbol, says, adding: “It’s been their internet for too long. Make it yours”. In a blog post , Mance Harmon, CEO and Co-founder of Hedera, says: “The hardest part of starting a company is selling your vision to the world. Hedera was built on the belief that we could achieve both the network effects enabled by a fully decentralised public network and the stability brought about by enterprise governance. We put this idea into practice by combining the technical innovation of hashgraph’s fast, fair, and secure consensus algorithm with the Hedera Hashgraph Governing Council to form the Hedera public network.” “When we announced the launch of Hedera in March 2018, many in the space viewed our plans for a council as very ambitious. We talked to some of the largest companies and investors in the world about this model. Some said we were crazy. Some said it would be too hard. The bravest have joined us in our journey. Including some of the best companies in the world,” he adds. Facebook meeting Harmon says that he sat down with David Marcus of Facebook in February 2018 and shared his company’s vision for Hedera, including the technology roadmap and the importance of a governing council. “Much of what we shared was echoed in Facebook’s Libra announcement this week, and that is a good thing for the market,” he comments. “Facebook has set some high table stakes, and we believe we have the right approach and the necessary technology to surpass those.” Story continues Harmon goes on to emphasise his belief in a world “where people will carve out their piece of cyber space, not by giving up their data to gain free access to a social network service that exploits it, but by building and using the applications that deliver value to them, with privacy and security. Hedera is not going to change the world. But you — the developers building on us, the customers we serve, and those we enable to deliver services — certainly will.” This summer, the Hedera Mainnet will be openly accessible to anyone that wants to use it. It will be governed by a growing council of organisations, and deliver “an unmatched combination of performance and security”. Harmon concludes: “We will follow a clearly defined path from permissioned to fully permissionless, with a plan to have hundreds of thousands of globally distributed nodes at scale. We will support the next generation of consumer and enterprise applications. We will enable new kinds of applications combining the privacy of a private ledger with the full trust of a public ledger. We hope you’ll join us in building the internet everyone deserves.” Facebook did not respond to our request for comment. The post Libra controversy: Hedera thanks Facebook for copying its blockchain model appeared first on Coin Rivet . |
This 36-Year Social Security Streak Is Nearly Over
There's little argument that Social Security is our nation's greatest social achievement. Of the more than 63 million benefit checks disbursed each month, more than 22 million people will be pulled out of poverty as a direct result of this payout.
That's what makes the news I'm about to tell you so disturbing: Big changes are headed Social Security's way, and you're almost certainly not going to like the outcome.
Image source: Getty Images.
In early April, the Social Security Board of Trustees released its annual report on the short-term (10-year) and long-term (75-year) outlook for the program. As the trustees have found since 1985, the 2019 report alluded to an impending cash shortfall over the long term. More specifically, the trustees estimate a $13.9 trillion cash deficiency over the next 75 years, assuming the existing payout schedule, inclusive of cost-of-living adjustments, continues.
This estimated shortfall is the result ofnumerous demographic changesthat have been going on for some time. Examples include the retirement of baby boomers, which is weighing on the worker-to-beneficiary ratio, as well as increased longevity, growing income inequality, declining birth rates, and even inaction from Congress.
According to the trustees, Social Security's prized 36-year streak of generating more revenue than expenditures is very much in doubt, beginning in 2020. After logging a $3.1 billion net surplus in 2018, the smallest surplus over the past 36 years, the trustees' report has called for an even smaller $1 billion net-cash surplus in 2019 (which would extend the streak to 37 years). But beginning in 2020 and beyond, Social Security projects to spend more than it brings in, leading to the steady depletion of its nearly $2.9 trillion in asset reserves. By 2035, all of the program's asset reservesare forecast to be exhausted, which may lead to an across-the-board reduction in payouts to retired workers of up to 23%.
Image source: Getty Images.
But here's the thing about the trustees' estimates: They're exactly that --estimates. Last year's report had called for 2018 to be the first year of net-cash outflows in three and a half decades. Yet, as noted, the programactually generated a small net-cash surplus last year. This surplus was likely the result of stronger-than-expected economic growth spurred in the short term by the December 2017 passage of the Tax Cuts and Jobs Act, which reduced taxation on corporations and most individual taxpayers.
With the trustees calling for a surplus of $1 billion in 2019, it's looking, as of now, like this prediction may turn out wrong as well.
Each month, the Social Security Administration (SSA) posts the program's investment holdings.By law, the SSA is required to purchase special-issue government bonds with any net-cash surpluses, which allows the program to generate interest income, and gives the general public an up-to-date look at how much Social Security has in its asset reserves.
When the year began, Social Security had (long number alert) $2,895,174,945,000 in asset reserves. For you math-phobes out there, this is $2.895 trillion. But as of the end of May 2019, the SSA's investment holdings tallied $2,892,944,200,000, or $2.893 trillion (with rounding). In other words, over the first five months of 2019, the Social Security program saw an outflow of $2.23 billion. In the grand scheme of things, this is peanuts compared with the $2.893 trillion currently in asset reserves. But, more important, it could signal that the long-awaited, and feared, inflection point has arrived.
Image source: Getty Images.
But what's really mind-boggling about Social Security's looming inflection point is that lawmakers on Capitol Hillhave known of its coming for at least 34 years.
As noted, the trustees have released a long-term outlook for the program every year since its inception. Since 1985, they have cautioned that there was insufficient revenue to cover expenses. Although the asset reserve depletion datehas changed often over these past 34 years, one thing that hasn't changed is the very clear warning to Congress that it does something, and quick, to stem the depletion of the program's asset reserves.
Furthermore, despite having resolutions that would undoubtedly strengthen Social Security, political hubris has kept Democrats and Republicansfrom finding common ground.
Democrats have a surefire plan to strengthen Social Security by increasing or removing the payroll tax cap on earned income. In 2019, all earned income between $0.01 and $132,900 is subject to the 12.4% payroll tax. But if Democrats in Congress had their way, exempted income above this $132,900 would also be subjected to the tax, thereby providing Social Security with an immediate injection of added revenue.
Republicans have a bona fide fix, too. The GOP proposes a gradual increase to thefull retirement age, from a peak of 67 to as high as age 70. Raising the full retirement age would mean that future generations of workers would have to either wait longer to receive their full payout, or accept a steeper monthly reduction if claiming early. Either way, it would mean a reduction in long-term outlays for the Social Security program.
Both of these solutions work to shore up Social Security, and yet no middle ground can be found between both parties, because Democrats oppose any cuts to benefits, and Republicans won't vote in favor of tax hikes.
Thus, we're inching closer to Social Security's asset reserve doomsday, and lawmakers aren't doing a thing to stop it.
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Raging Bitcoin Price Propels Crypto Market to Spike $25 Billion in 2 Days
ByCCN Markets: In the past two days, the valuation of the crypto market has increased from $300 billion to $325 billion, supplemented by the strong upsidemovementof bitcoin.
The bitcoin price is up from $8,900 to $11,000 in the past seven days against the U.S. dollar (source: coinmarketcap.com)
As thebitcoin pricequickly moved from $8,000 to $11,000, major crypto assets in the likes of Ethereum, XRP, Bitcoin Cash, EOS, and Binance Coin recorded fairly large gains against the U.S. dollar.
The bitcoin price has increased by nearly 190 percent year-to-date after dipping to around $3,150 in December 2018.
The momentum of the crypto market has primarily been driven by bitcoin in recent weeks and technical analysts generally foresee the market sustaining its current upward trend if bitcoin moves past the $12,000 mark.
Read the full story on CCN.com. |
Saudi Arabia launches special residency scheme for expats
RIYADH (Reuters) - Saudi Arabia launched on Sunday their new special residency scheme similar to green card systems applicable in other countries, aimed at attracting wealthy and high-skilled expats.
The residency scheme offers two types of residencies, a permanent one for 800,000 Saudi riyals ($213,321.96) and a one year but renewable residency for 100,000 Saudi riyals ($26,665.24).
The scheme was approved by the Saudi cabinet last month, but on Sunday the online portal to apply was opened to the public.
The residencies would allow foreign expats free movement, ability to own properties and to do business in the kingdom.
Currently over 10 million expats work and live in Saudi Arabia under a system that requires them to be sponsored by a Saudi employer and be issued an exit and re-entry visa whenever they want to leave the country.
($1 = 3.7502 riyals)
(Reporting by Stephen Kalin in Riyadh; Writing by Tuqa Khalid in Dubai; editing by Louise Heavens) |
Trump complains aides he hired are trying to push him into war with Iran, says report: 'It's so disgusting'
Donald Trump has reportedly complainted that his closest advisers want to push [the US ] into a war with Iran , following his decision to cancel military strikes against the Islamic Republic. These people want to push us into a war, and its so disgusting, the US president said about his inner circle of aides, according to The Wall Street Journal. We dont need any more wars. Mr Trump is said to have made the remarks about his administration officials to a confidant, in a private conversation on Friday. The 73-year-old chose to hire hawkish aides such as John Bolton , his national security adviser, who is a longtime advocate of regime change in Iran . Mike Pompeo , the US secretary of state, also advocates hardline positions against the Middle Eastern country. But the president abruptly cancelled planned military strikes on three Iranian targets on Thursday. He claimed he did so after learning that 150 people would be killed in the strikes, which were planned in response to Iran shooting down an unmanned US drone. Tehran claims the drone was struck above its own waters, while the US argues that it was attacked above international airspace over the Strait of Hormuz . US military forces launched a cyber attack against Irans army computer systems on Thursday in response to the drones loss. Tensions between the US and Iran have steadily been rising over oil tanker attacks in the strait, for which the US believes Iran is responsible. Mr Trump told White House reporters on Saturday that he disagreed with his team over Iran. John Bolton is doing a good job, but he takes generally a tough posture, he said. The only one that matters is me. The president also discussed Mr Boltons support of the Iraq war and told reporters the conflict had been a big mistake. Mr Trump also said that unspecified new sanctions would be enforced against Iran on Monday but struck a softer tone when discussing the diplomatic crisis. The fact is were not going to have Iran have a nuclear weapon, he said. And when they agree to that, they are going to have a wealthy country, theyre going to be so happy and Im going to be their best friend. |
Natural Gas Price Fundamental Weekly Forecast – No End to Selling in Sight Unless Weather Changes Dramatically
Natural gas futures fell last week to multi-year lows, led by a plunge in spot gas prices, a spotty weather forecast and a greater-than-expected weekly storage build. Prices hit a four-year low last week. Prices aren’t likely to recover until the weather services put terms like “lingering heat” or “heat dome” into their forecasts. Furthermore, the heat has to cover larger, more populated areas.
Many of the major U.S. supply hubs are showing $1.00 handles for spot gas. In the Midwest, Chicago Citygate dropped to $1.91. Spot gas in the Rockies also plunged with Kingsgate averaging only 85 cents. In California, SoCal Citygate tumbled to 1.135.
According to Mobius Risk Group, on a national level, the first 20 days of June have been 1.5% cooler than three-year norms and 20.5% cooler than the same 20 days last year.
Mobius Risk Group went on to say that six out of the eight prior years have ranked in the top 10 warmest Junes over the past 69 years, while June is on track to rank a lowly 34thwarmest. “Weather is, and will remain, the most dominant force affecting near-term prices,” the Houston-based firm said.
Finally, the U.S. Energy Information Administration (EIA) reported a 115 Bcf injection. This was above the consensus estimate of 105 Bcf. Inventories as of June 14 are now at 2,203 Bcf, 209 Bcf above last year and 100 Bcf below the five-year average.
Bloomberg estimated an injection range between 96 Bcf and 113 Bcf, and a median of 105 Bcf. Reuters forecast a range of 96 Bcf to 115 Bcf, with a median of 105 Bcf. Natural Gas Intelligence predicted a build of 105 Bcf.
Last week,August natural gassettled at $2.169, down $0.212 or -8.90%.
According to NatGasWeather for June 21 to June 27, “Showers and thunderstorms will continue across the northern US the next several days with temperatures mostly comfortable with highs of 70s and 80s. The southern half of the US will be very warm to hot with high pressure overhead, resulting in highs of 90s to 100s hottest over the Southwest and into Texas. Next week will bring increasing heat across the southern 2/3 of the US w/90s and 100s, potentially as far north as Chicago late in the week. Overall, demand will be increasing to moderate.
The situation is also beginning to look bleak for the fall with traders already pricing in likely U.S. LNG shut-ins, largely because of fears of overflowing gas storage in Europe. “Many U.S. LNG cargoes, however, are being redirected to other global destinations in search of higher returns,” EBW said. “It is also possible that LNG tankers may transform into floating storage this fall, allowing the U.S. market to continue to load cargoes. If demand can be sustained, Nymex prices can surprise to the upside.”
The first leg of any rally is likely to be short-covering. There is going to have to be a dramatic change in the fundamentals in order to attract enough buyers to change the main trend to up.
Thisarticlewas originally posted on FX Empire
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How to Stop Divorce From Devastating Your Retirement Savings
Divorce takes an emotional toll, and in most cases, it also takes a financial one because you can no longer rely on your ex's income to support you. Nowhere is this pinch felt more than in your retirement savings. This is especially true if you weren't working during your marriage and your ex was doing the saving for both of you. Saving on your own is likely to be more of a challenge, but here are some things you can do to make it easier. Negotiate retirement savings If you and your ex have approximately equal retirement savings, you may both agree to keep the money that's in your personal accounts and be done with it. But things are trickier when one has significantly more savings than the other. In that case, the person with less money in retirement accounts may negotiate for a portion of the ex's retirement savings. Most of the time, retirement savings belong to the person whose name is on the account, but with a qualified domestic relations order (QDRO), your ex can legally transfer some of that money to you. The catch is, you can only claim retirement savings that your ex earned during your marriage. Savings that your ex came into your marriage with are not considered marital property, so you have no right to them. Couple fighting over money over divorce papers Image source: Getty Images. You may also be able to claim some of your ex's pension. It takes time to sort all of this out, and you may have to pay fees for your QDRO on top of legal fees necessary to divide up the household retirement assets. If you and your ex are struggling to come to an agreement or to determine the long-term value of your retirement assets, consider hiring a financial planner who can help sort out these details. Make a new retirement plan Without your ex in the picture, your retirement needs will probably change. In some respects, it can be easier because you only have to save enough money to support yourself, rather than you and your ex. But you also won't have that other income to help you, so you'll have to pay expenses like housing on your own. You may not know how much to budget for retirement living costs when you're newly divorced, but after things have settled down and you have a better sense of how much you're spending, create a new retirement plan using this information. Subtract your ideal retirement age from your estimated life expectancy to determine your estimated length of retirement. Next, total up your predicted annual living expenses in retirement and multiply this by the length of your retirement, adding 3% per year for inflation. A retirement calculator can help with this. It should also give you some idea of how much you need to save each month to hit your goal. Subtract any money you expect to get from Social Security or a pension to figure out how much you need to save on your own. Story continues You may need to make adjustments, like increasing your monthly retirement contributions or pushing back your planned retirement date. You could also try cutting your living expenses today to free up more cash for retirement. It's important to make these changes as soon as possible to keep your retirement on track. Look into claiming Social Security on your ex's work record If you and your ex were married for at least 10 years, you are eligible to claim Social Security benefits on your ex's work record, even if your former spouse remarries, as long as you meet the following criteria: You remain unmarried. You're 62 or older. Your ex-spouse is entitled to retirement or disability benefits. The benefit you're eligible for on your ex-spouse's work record is greater than the benefit you're entitled to based on your own work record. If you meet the above criteria, you'll automatically receive half the Social Security benefit your ex would be entitled to if your former spouse began taking benefits at full retirement age , which is 66 or 67 depending on birth year. You can claim benefits even if your ex has not applied for Social Security yet, as long as you're 62 or older and you've been divorced for at least two years. Taking benefits on your ex's work record won't impact Social Security benefits for your former spouse. But if you remarry, you can no longer claim Social Security benefits on your ex's work record, though you may still be able to claim on your own or your new spouse's work record. Check with the Social Security Administration if you believe you're eligible for benefits on your ex's work record. This can help reduce how much you need to save for retirement. Saving for retirement is a challenge for almost everyone, especially when you're doing it alone. But by following the above tips, you can ease some of the strain. If you're still struggling, consult a financial adviser who can help with your specific situation. 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 a disclosure policy . View comments |
Cleveland Cavalier's Kevin Love supports Mark Cuban 2020 presidential bid: 'I'm for it'
Billionaire Dallas Mavericks owner Mark Cubanhas been mulling a 2020 presidential bid for months. If he does jump into the race, he can count on support from an NBA star in the crucial swing state of Ohio.
“I love Mark Cuban,” says Kevin Love, power forward for the Cleveland Cavaliers. “I’m for it.”
Love lauded Cuban’s attention to detail and care for Mavericks players, traits he said would serve the outspoken entrepreneur in the White House.
“He sits right by their bench. He travels with them to games,” Love says. “He makes sure they have whatever they need in order for not only longevity purposes but for that day. Some of that stuff actually does transcend into everyday life and the American people.”
Cuban, an entrepreneur and host of the television show “Shark Tank,” told Yahoo Finance Editor-in-chief Andy Serwer last month that, as it stood then, President Donald Trump could defeat any Democrat in the field.
“There’s now and then there’s November of 2020,” Cuban said. “If the election were held today, I think Trump would win. I don’t think that there’s somebody that has the momentum or just the value of the incumbency that Trump has.”
A head-to-head Quinnipiacpollreleased earlier this month found 53% of voters said they would support former vice president and Democratic candidate Joe Biden while 40% said they would support Trump. The results, which came from a survey of 1,214 voters nationwide, also found gave the edge to Sens. Bernie Sanders (I-VT), Kamala Harris (D-CA) and Elizabeth Warren (D-MA) in matchups with Trump.
Cuban, who said he would run as an independent,supportedHillary Clinton in the 2016 presidential race, saying ahead of the election that Trump had gone “crazy.” Despite his public criticism of Trump, Cuban said the two of them “get along.”
“Like any president, I agree with some things and disagree with other things,” he said. “It's not personal.”
Known for sitting courtside during games and publicly criticizing referees afterward, Cuban backs his players to an impressive degree, Love said.
“He has done a really great job of allowing players to be themselves while also being almost, like, a player's owner. We always talk about a player's coach, but he's so heavily involved.”
Love made the comments to Serwer in a conversation that aired on Yahoo Finance in an episode of “Influencers with Andy Serwer,” a weekly interview series with leaders in business, politics, and entertainment.
An 11-year NBA veteran, Love has played in five all-star games and three NBA Finals. He won a championship alongside James in 2016. Off the court, Love has fought for mental health awareness,revealinghis own struggle with anxiety and launching a foundation to tackle the issue.
The affection between Love and Cuban appears to have its limits. Asked later in the interview who he looks up to as a role model, Love did not mention Cuban.
He pointed to his agent, Jeff Schwartz, as well as former teammate and Phoenix Suns General Manager James Jones.
Andy Serwer is editor-in-chief of Yahoo Finance. Follow him on Twitter:@serwer.
Read more:
Players should be allowed to enter NBA draft from high school, says Cleveland Cavaliers forward Kevin Love
Tech CEOs who testify in Washington 'can't win no matter what,' says ServiceNow CEO John Donahoe
Charlie Munger: Trump is not primarily responsible for US economic success
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Space Investors, Rejoice! There May Be Something Worth Mining on the Moon
It's been four years now since Bigelow Aerospace filed its application with the Federal Aviation Administration seeking "a license to land on the moon" and set up the world's first privately owned commercial space station.
It's been three years sinceMoon Express actually won such a license, with plans to set up a lunar mining operation.
And it's been two years since Brown University researchers, reviewing data from moon rocks retrieved by the Apollo 15 and Apollo 17 moon landings back in the 1970s, concluded that there may be somethingworthmining on the moon. (Hint: It'smoon water, or more specifically, ice that could be melted and then separated into liquid hydrogen and liquid oxygen for use as rocket fuel.)
Now, however, it seems there may be something even more substantial to be mined from the moon. The only question is: What is it?
Image source: Getty Images.
That was the question a lot of investors were asking themselves last week, when the media got hold of a report from Baylor University scientists, published by the American Geophysical Union, to the effect that a "conspicuous mass excess" had been discovered just under the lunar surface.
Speculation began immediately. Could the mass be the mineral remains of an asteroid that impacted the moon? Or perhaps it's some weird by-product of the moon's cooling process, which shifted part of its metal "core" near the surface of the satellite?
Whatever this mass is, topography data from NASA's Lunar Orbiter Laser Altimeter, paired with global gravity data from two NASA Gravity Recovery and Interior Laboratory spacecraft, confirm that it exists -- and that it weighs 2.18 x 10-to-the-18th-power kilogramsat least, and extends to "depths of more than 300 km" below the lunar surface.
That's a huge heap of... something. But again: Whatisthis something?
Fans of famed astrophysicistNeil deGrasse Tysonmay wonder if it's gold. After all, as Tyson reminded us in an interview back in 2017, there are almost certainly asteroids loaded with precious metals -- and "the man who first learns to mine asteroids and bring back their minerals to Earth will become the first trillionaire."
Could Baylor's scientists have found such a huge pile of gold buried on the moon?
That's probably too much to hope for, but it's almost certainly some kind of metal. Baylor University planetary geophysics professor Dr. Peter James offers this poetic description of the discovery: "Imagine taking a pile of metal five times larger than the Big Island of Hawaii and burying it underground. That's roughly how much unexpected mass we detected."
Baylor's team theorizes that the mass might be composed of "oxides from the last stage of magma ocean crystallization" -- in a word: iron. And, granted, that may not sound too exciting if you were hoping for gold. But consider that a single kilogram (much less 2.18 x 10-to-the-18th-power kilograms) of water, gold, iron, oranything,really, costs about $20,000 currently to lift off from Earth and into orbit.
This mass, however, is already in orbit -- put there for free.
Fact is, even 2.18 quintillion kilograms of mere iron, already in orbit around Earth, is a pretty big deal, economically speaking. It's a resource that could be used to build housing, factories, entire moon bases -- even spaceships -- in situ on the moon, without the expense of "importing" iron from Earth.
Already, we've seen companies including Moon Express and Planetary Resources, and even entire countries such as Canada and Luxembourg, express interest in mining the solar system's planets, satellites, and asteroids for metal riches. If the Baylor scientists' findings are confirmed, then this Hawaii-sized pile of metal on the moon would create a real incentive, and the beginnings of a sound business plan, for mining the moon.
It would also, not incidentally, provide an ideal target location for NASA to aim for as it develops its plan toreturn America to the Moon in 2024. After all, NASA Administrator Jim Bridenstine said earlier this year, writing for a NASA blog, that "this time, when we go to the Moon, we will stay." Having a ready source of raw materials to mine and refine at the landing spot would make "staying" on the moon a whole lot more convenient.
But NASA had better act fast. According to the Baylor scientists' report, this huge pile o' metal on the moon is buried underneath the South Pole‐Aitken basin on the far side of the moon -- the very site whereChina landed its Chang'e-4 spacecraft and Jade Rabbit 2 moon roverin January.
The race is on. And this time, it's a race not just to reach the moon -- but to mine its riches as well.
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No College Degree? It May Not Hurt Your Job Prospects
With the cost of college climbing rapidly and nationwidestudent debt levelsfollowing suit, many Americans inevitably find themselves wondering whether college is actually worth the cost. If you opted to skip college, you may be worried that you'll struggle on the employment front. But here's some good news in that regard. An estimated 50% of companies say they're now hiring more employees with no formal college education,according to PayScale. Not only that, but 69% of employers are now prioritizing skills over formal education when bringing in new hires. And that's a positive thing if you're not a degree holder but are hoping to land a good job nonetheless.
While it's true that college grads are statistically likely to earn more than non-grads, your prospects are still pretty good if you fall into the latter category. That's because many employers are relaxing or making changes to their recruiting process.
IMAGE SOURCE: GETTY IMAGES.
Many are no longer making college degrees a requirement for entry-level roles, thereby making it easier for non-grads to break into new fields. Some employers are also going so far as to create jobs that specifically don't require experience, but rather, hinge on a willingness to learn. Others, meanwhile, are taking jobs previously earmarked for workers with advanced degrees and splitting them up into lower-level opportunities. And a large number are starting to accept technical programs or courses as alternatives to a college diploma.
Just as important, employers are learning to prioritize skills over formal education. For example, coding and web development experience might trump a degree in computer science for openings in the information technology field.
As a job seeker without a degree, this means you have a unique opportunity to score a solid role, especially in today's relatively healthy job market. The key is to take advantage of it by playing up your existing skills and emphasizing the fact that you're ready and willing to learn.
The ability to adapt to changing job situations and demands is a good quality to play up on yourresumeand during interviews, especially if you're approaching your job search without a college degree. A big reason why there's been a shift towardtrueentry-level roles (as opposed to those entry-level roles that historically required a year or more of experience) is that companies are realizing that they have a great opportunity to train and mold employees to succeed, so if you make it clear that you're on board, your chances of landing a job offer could increase.
Let's be clear: A college degree is still, in many cases, a good investment, especially if you're able to swing one without racking up a fortune in student debt. But if you don't have a college degree and you're not particularly keen on getting one in the near future, know that it doesn't necessarily have to doom you to a career filled with mediocre jobs -- especially if you have useful skills to bring to the table and the right attitude to boot.
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Dell Inspiron desktop, Dyson Cyclone V10, Nintendo Switch, iPad Pro, and more for June 23
So, do you have any plans for theFourth of July? If not, why not gather up your buddies and host a LAN party. With so many great deals around, we think you should treat yourself to a new gaming rig.
Dell is currently offering 38% off theirDell Inspirongaming AMD Ryzen 7 2700X desktop, which comes with 16GB of RAM and an AMD RX 580 graphics card. Portability more your style? Well, you can save 42% off thisDell New Vostro15 7000 Intel Core i7-9750H laptop. Beefy enough to run the latest titles without a problem.
Are you looking for other deals? Keep scrolling to check out more of today's best deals fromAmazon,Walmart,Dell Home,Dell Small Business,Home Depot,B&H Photo-Video, andDysonfor Sunday, June 23rd.Read more...
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Dell Inspiron Gaming AMD Ryzen 7 2700X 16GB RAM RX 580 GPU Desktop "with code 50OFF699" -- See Details
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James Corden: "We have to keep talking about Grenfell"
James Corden, Host, The Late Late Show, participates in a panel discussion during the annual Milken Institute Global Conference at The Beverly Hilton Hotel on April 30, 2019 in Beverly Hills, California. (Photo by Michael Kovac/Getty Images) James Corden has condemned the Grenfell cladding scandal live on US television. The Gavin and Stacey actor used his position as a bona fide American TV star to say ‘nothing will change’ if we stop talking about the Grenfell Tower fire. The 2017 tragedy claimed 72 lives after a kitchen appliance fire in one flat lead to flames rapidly spreading to the entire building - reportedly due to the type of cladding used on the building's exterior. Smoke continues to rise from the burning 24 storey residential Grenfell Tower block in Latimer Road, West London on June 14, 2017 in London, England. (Photo by Carl Court/Getty Images) Filming his US chat-based programme The Late Late Show in London earlier this week, Corden, wearing a green heart badge in memory of the victims said: “We have to keep talking about Grenfell - otherwise nothing will change. Read more: James Corden surprised by school 'sweetheart' while filming 'The Late Late Show' in London “It turns out that same kind of cladding that was used at Grenfell is still in use in over 300 high rise and public buildings in Britain, buildings which are occupied primarily by low income families. “Imagine putting your child to bed in one of those buildings knowing that the only thing that’s keeping another Grenfell from happening is hope, I guess, good luck maybe. “Now hope and luck is perfectly fine if you’re choosing to make a pavlova for the first time on the Bake Off , but as far as keeping people safe it is shamefully inadequate.” Corden was inspired to make this opening monologue after seeing a campaign started by newspaper the Daily Mirror. Earlier this month, the Mirror launched its “Grenfell, Never Again” campaign, which demands action, including the removal of dangerous cladding from all buildings and an independent regulator to champion the rights of tenants. Read more: 'Gavin & Stacey': Loose ends the new Christmas episode needs to tie up Talking about the monologue used on the Late Late Show , Corden said to the Mirror: “That whole piece we did about Grenfell, that’s because of the Mirror. I was reading the Mirror and I saw an article you had written. “It was about the report that came out and it really touched me. I sent it to my producers and said we need to do something. Story continues LOS ANGELES - JUNE 17: James chats with guests, Tom Hanks and Gillian Anderson onThe Late Late Show with James Corden broadcasting from London. Airing June 17th, 2019 (12:37-1:37 AM, ET/PT) (Photo by Craig Sugden/CBS via Getty Images) “It felt out of place doing it in LA, but because we were coming to London it felt right. “I’m so glad we did it.” Corden and pal Ruth Jones recently announced their much loved TV series Gavin and Stacey is to return for a Christmas Day special later this year. A cast read-through will begin on Monday. |
Protesters ask Pete Buttigieg about black lives matter movement during heated confrontation
2020 Democratic hopeful Pete Buttigieg is facing a crisis at home. The South Bend, Indiana, mayor cancelled several campaign events this week following a police-involved shooting that left a black man dead, and on Friday he returned to the city to address emotional protesters, with video of the confrontation going viral. The visibly angry crowd shouted at Buttigieg and questioned whether he believed "black lives matter." One protester asked if Buttigieg was "a racist." ANALYSIS: Buttigieg's campaign faces test after fatal South Bend police shooting of a black man When Buttigieg told the crowd he did "not have evidence that there has been discipline for racist behavior" a protestor responded “You running for president and you expect black people to vote for you?” Buttigieg told her, “I’m not asking for your vote," to which she replied, "you ain’t gonna get it either.” Mayor Pete Buttigieg: “I do not have evidence that there has been discipline for racist behavior...” Protester: “You running for president and you expect black people to vote for you?” Buttigieg: “I’m not asking for your vote.” Protester: “You ain’t gonna get it either.” pic.twitter.com/tK1Ys0Yvfc — Keith Boykin (@keithboykin) June 22, 2019 South Bend resident Eric Logan was shot early Sunday after police responded to a report that a suspicious person was going through cars, the St. Joseph County prosecutor’s office said. Logan was confronted by South Bend Police Sergeant Ryan O'Neill, who is white, while he was in a vehicle at an apartment building parking lot. The prosecutor's office said Logan exited the vehicle and approached the officer with a knife raised and the officer opened fire. Authorities say no police video exists of the confrontation. St. Joseph County Prosecutor Ken Cotter said O’Neill's dash and body cameras weren’t activated because he was driving slowly without his emergency lights on while looking for a person possibly breaking into cars about 3:30 a.m. Sunday. Story continues Logan, 54, died at a hospital. Pete Buttigieg shares a moment with Shirley Newbill during a gun violence memorial in South Bend, Indiana. Buttigieg has been criticized by black community leaders in South Bend in the past. During his first term in office, he fired the city's first black police chief, according to the AP. He also was criticized for his handling of past shootings that involved police officers and the lack of diversity in the city's police department. Forty percent of South Bend residents are black or Hispanic, but the police department is almost 90% white, the AP reported. You may also be interested in: Buttigieg: 'Almost certain' that the United States has had gay presidents Pete Buttigieg wants a national service program. Could it heal a divided country? What you need to know about the 2020 election so far Contributing: Rebecca Morin, USA TODAY; The Associated Press This article originally appeared on USA TODAY: Protesters ask Pete Buttigieg about black lives matter movement during heated confrontation |
1 Billion Reasons Why More States Will Legalize Recreational Pot
There are quite a few reasons why most states in the U.S. still haven't legalized recreational marijuana. Some people have concerns about legalization leading to increased substance abuse. Others are worried about the potential negative health effects that might be associated with using pot. Many fret that teens could be more likely to try marijuana if it's legal for adult use.
Arguments continue to be made for and against these concerns. Meanwhile,the state of Colorado recently made an announcementthat almost certainly captured the attention of governors and legislators across the U.S. And this announcement provided 1 billion reasons why more states are likely to legalize recreational pot in the future.
Image source: Getty Images.
Colorado has now made more than $1 billion in revenue from marijuana taxes, licenses, and fees. That's the highest amount made by any state so far from legalizing marijuana. Total marijuana sales since Colorado's legal recreational pot market opened for business in 2014 have topped $6.56 billion.
Marijuana sales in Colorado continue to grow, albeit at a slower pace than in previous years. In 2018, Colorado reported marijuana sales of nearly $1.55 billion versus $1.51 billion in 2017. During the first four months of this year, marijuana sales in the state totaled more than $522 million. That's close to $1.57 billion on an annualized basis.
What has Colorado done with the money it's made from legalizing pot? Schools have received a big chunk of the money. Ninety percent of the state's excise tax on retail marijuana goes to a fund that helps with the construction of public schools. The remainder of the revenue made from excise taxes is funneled to a permanent fund used to assist public schools.
Colorado also imposes a 15% sales tax on sales of marijuana. The state keeps 90% of the revenue from this tax, while 10% is retained locally for use by cities and counties. Colorado puts nearly 12.6% of its share of this money into a public school fund. The rest of the money goes to a fund used to cover regulatory efforts and pay for public health initiatives including behavioral health treatment and prevention of youth marijuana use.
There are other positive economic impacts of legalizing recreational pot as well. Colorado Gov. Jared Polis said that the legal cannabis industry is "helping grow our economy by creating jobs." Currently, there are 2,917 licensed marijuana businesses in the state with 41,076 individuals licensed to work in the legal cannabis industry.
It's not surprising that more states have already jumped on the bandwagon by legalizing recreational pot. Eleven states plus the District of Columbia have legalized recreational marijuana, withIllinois being the latest state to join the ranks.
California is the biggest state so far to legalize recreational pot. It expected to make in the ballpark of $1 billion last year from taxes and fees from its legal marijuana market. However, the actual total came in much lower -- $345.2 million. This shortfall stemmed in large part fromtax rates that were too highand burdensome regulations.
Massachusetts has also run into speed bumps in the early months of its legal recreational pot market. The state anticipated receiving $63 million in tax revenue by midyear but had made less than $6 million by March. As in California, the regulatory framework for approving cannabis businesses in Massachusetts is proving to be an impediment to growth.
But it's still very early for many of these states that have legalized recreational marijuana. It's likely that other states will learn from California's and Massachusetts' mistakes -- and Colorado's successes. Also, keep in mind that it took a few years for marijuana sales in Colorado to really kick into high gear.
I think that the legalization of recreational pot by states could follow the pattern of state lotteries but at an even faster pace of adoption. Prior to 1964, no U.S. state had a lottery. Today, nearly every state has one. The lure of increased tax revenue to fund state programs is simply too hard to resist. And Colorado has shown how to make a lot of tax revenue from legalizing marijuana.
How can you profit from the trend of recreational pot legalization? One way is to invest in the stocks of companies that engage directly in the industry by growing and selling marijuana. Another is to invest in the stocks of companies that supply products and services to the cannabis industry.
In my view,Cresco Labs(NASDAQOTH: CRLBF)looks like one of the most promising candidates among pure-play U.S. marijuana stocks. The company ison track to become a pot powerhousewith its pending acquisition of Origin House(NASDAQOTH: ORHOF). When the deal is finalized, Cresco will operate in 11 states plus Canada, run 21 retail cannabis stores with 51 total retail licenses, and market 56 cannabis brands. Thanks to its buyout of Origin House, Cresco will also be the leading distributor of recreational marijuana products in California.
There are a couple of ancillary provider stocks that I think should be good picks.KushCo Holdings(NASDAQOTH: KSHB)is the top supplier of packaging solutions to cannabis growers. The company also provides hydrocarbons and solvents that are used in extracting cannabinoids such as CBD from cannabis. KushCo stock is down so far this year but I think it will rebound as the U.S. cannabis market expands.
I also likeScotts Miracle-Gro(NYSE: SMG). The company is best known for its consumer lawn and garden products. Over the past few years, though, Scotts has also become a top supplier of hydroponics solutions to the cannabis industry. It's one of themost profitable pot stocks on the planetright now and should generate even greater profits as more states legalize recreational pot.
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• Your 2019 Guide to Investing in Marijuana Stocks
Keith Speightshas no position in any of the stocks mentioned. The Motley Fool recommends KushCo Holdings and Origin House. The Motley Fool has adisclosure policy. |
Wait, Was Kate Middleton Just Super Rude To Queen Letizia Of Spain?
From Women's Health People are speculating that Kate Middleton snubbed Queen Letizia of Spain during the Order of the Garter in London, which, to be clear, is not the case! A video is making its way around Twitter seemingly showing Kate ignoring Letizia. So, Kate Middleton and Queen Letizia of Spain both attended the very-fancy-sounding Order of the Garter in London, and everyone is-feel free to dramatically eye-roll-freaking out about a video of Kate allegedly being "rude." In the video below, Kate hops out of her car, says hello to a couple people, and then seemingly fails to acknowledge Queen Letizia. 👀👀👀🤣🤣🤣🤣 pic.twitter.com/shMvfUq0HV - ⭐️ Just Juliette ⭐️ 🇫🇷🇮🇩 (@RoyalDetective8) June 17, 2019 And because Letizia is a queen , a lot of people are all up in arms about how Kate should have curtsied to her, with comments ranging from "Lawd no she didn’t just snub a Queen. Girl clutch the pearls," to "Wasn't she supposed to curtsey or something? She didn't even look at her. That's rude in any gathering." As usual, it's important to think about things like context before analyzing a clip like this! Fact is: Kate and Letizia had an entire conversation at the same event, and they couldn't have looked more enthusiastic about chatting. {% verbatim %} View this post on Instagram A post shared by 𝔇𝔲𝔠𝔥𝔢𝔰𝔰 𝔬𝔣 ℭ𝔞𝔪𝔟𝔯𝔦𝔡𝔤𝔢 (@katemiddletonvideos) on Jun 17, 2019 at 7:07pm PDT {% endverbatim %} Meanwhile, body language expert Judi James says that there was some tension during Kate and Queen Letizia's carriage ride-but there's a good reason for that as well. "A clue that all might not be as it seems in terms of any hints of slight awkwardness might come from the fact that Kate appears to dislike carriage rides because they cause her motion sickness,” Judi said. "Her body language reflected tension during the ride at the Trooping of the Colour and this could be a similar problem for her here." Story continues In other words, time to channel Taylor Swift and calm! T! F! down! ('You Might Also Like',) 14 Keto Breakfast Recipes That Make Waking Up So Much Easier 13 MS Symptoms In Women That Shouldn't Be Ignored Love Carbs? We Created This 21-Day Keto Diet Plan Just for You |
Big Gay Ice Cream Cofounder on Growing a Small Business from Coast to Coast
Out of the worst recession the country has seen since the Great Depression, and in the span of a decade,Big Gay Ice Creamhas grown from happy-go-lucky and social media wunderkind ice cream truck to Ben & Jerry’s competitor status, now with a full retail line in stores on both coasts.
In celebration of both its 10th birthday and West Coast retail expansion, Big Gay Ice Cream also recently released three new pint flavors: Banan-o-Graham (caramelized banana ice cream with graham swirls and graham crunch), Fluffernutter (peanut butter ice cream with marshmallow swirls, micromallows, and peanut praline), and Spicy Choco-Lit (milk chocolate ice cream with spicy fudge swirls and hot cinnamon candy pieces). Pints come with a suggested retail price of $5.99.
One of Big Gay Ice Cream’s founders, Doug Quint, spoke withFortunethis month about how the business has grown this brand, starting out as a food truck with locations discoverable via social media to one of the nation’s leading LGBTQ brands. Below is our conversation.
Fortune: It’s your 10th birthday! Congratulations! What inspired you to launch the Big Gay Ice Cream truck when you did?—in the midst of the Great Recession, no less? How much did social media help contribute to the brand’s viral following and success?
Quint: The timing of Big Gay Ice Cream’s birthday and our initial success is a chain of flukes. I decided that once I passed the comprehensive exams for my doctoral degree, I’d take the summer off from studying and performing (I am a classically trained bassoonist) and find a “weird summer job.” The chance to have an ice cream truck at my disposal without any significant expense came along, and I took it. On our end, the recession had nothing to do with it—though it was probably linked to our initial success. We were a $3 treat during a time when people were looking for cheap and quality fun.
In terms of social media, we wouldn’t have our name withoutFacebookfb, and we wouldn’t have built our army of supporters without social media. In winter 2009, once we decided that the ice cream truck was really going to happen, I created a Facebook group to document the project. We had no name for the truck yet. I figured that eventually something would come to us, so, as a placeholder, I named the group “Big Gay Ice Cream Truck.” We had no intention of this becoming the name of our business, but people started joining the group. After a few weeks of watching strangers getting interested in whatever the “Big Gay Ice Cream Truck” was, we decided to stop trying to conceive a brand name and go with the one we accidentally created. Oops!
Over the past 10 years, your business has grown from a single food truck, to brick-and-mortar locations, to a national operation. What do you believe is your total addressable market? Where do you want to take this brand ultimately?
What do I believe is our total addressable market? Is it silly to say “everyone”? We’ve never tried to compartmentalize our potential buyers. Gay? Sure. Old? Okay. Straight? Of course. Whatever? Sounds good. As for where we want to take it ultimately, that makes it sound like we have one end goal to achieve, when in fact we have a dozen goals. Increased audience, brick-and-mortar shops in more towns, continued growth of our pints in terms of both market availability and product line. There’s no one place that we hope to wind up, unless you mean in everyone’s freezer.
How are the supermarket pints doing here and out of state? It would seem difficult to match the soft-serve experience in-store with pints at the localCVS.
The pints are doing well—really well. We keep appearing in new places, and watching that play out on social media is great. You got us from a convenience store in a Seattle suburb? Far out!
But you can’t equate getting a soft-serve cone at one of our shops with buying a pint at a drugstore. They’re not the same experience, and one isn’t better than the other. What is important, though, is that both are a Big Gay Ice Cream experience. For the pints in particular, what we have tried to do is re-create the feeling of ice cream hitting your mouth for the first time, having it send the same endorphins and trigger the same sense memory of the fun a kid has when eating ice cream.
In terms of the success of the pints, when we launched our pint line most of the original flavors were reimagined versions of flavor profiles we used at our shops. The cone American Globs, for instance, made the jump to a pint American Globs. We added three new pints this year, and all of them—Banan-o-Graham, Spicy Choco-Lit, and Fluffernutter—are original pint-only creations that we dreamed up. No soft-serve versions. It was a real thrill to develop flavors that were bypassing a shop phase—we love them and are extremely proud of ourselves for developing them. For example, Fluffernutter went from a sandwich we loved as kids and turned into a pint. A much different creative process.
How many customers in a given location does it take to sustain a store? How many people in the Midwest, for example, would buy from a place that sells products called “Salty Pimp”? (As good as that vanilla ice cream cone with salty dark chocolate and swirls of dulce de leche is.) Have you ever run into that kind of branding or identity barrier? Would you ever adjust your brand, dare we say campiness, for a given market or demographic?
I try not to spend too much time worried about the sales projections and growth charts. For me, it takes away from the magic. Since day one our focus has been on creating the best ice cream in the world. We knew if we got that right, the rest would fall into place. Even back in the truck days, we’d watch people walk by and see them read our sign, in some cases, out loud. We’d watch them say “Big Gay Ice Cream?” and sometimes they’d chuckle and walk off but most of the time they were intrigued and would join the line. It’s funny how things work out, because now that is also happening in the ice cream section in stores on both coasts. Our hope is that people see our offbeat branding and give us a try. One spoonful is all it will take to earn a fan for life.
Speaking of branding, Pride—specifically the month of June, which is now celebrated by many as “Pride Month”—has become a brand of its own. And it’s noticeable how many corporate brands have adopted (or even appropriated) Pride for their own marketing ends. Retailers likeJ.CrewandListerineare incorporating rainbow colors and words like “love” and “pride,” but nowhere do they mention anything about the LGBTQ community or use terms such as “gay” or “lesbian” or “trans,” etc. How do you feel about other brands that traditionally weren’t synonymous with this community lean into Pride? Is it a sign of progress or just the cogs of capitalism?
We don’t make a point of defining what our “gay” is, or telling people what we want them to think about us. Are we going to tell a major clothing conglomerate that their pride-time apparel is “too gay” or “not gay enough”? Not our style; let the buyers decide. There are plenty of places in the world where wearing a shirt that simply says “pride” will get you more than a sneer. Anyhow, this is a good time for me to say, “I’m just an ice cream man, neither judge nor philosopher.”
Where do you hope or expect to see Big Gay Ice Cream another 10 years from now?
Big Gay Ice Cream has just turned 10. We never thought it would turn ONE. If you asked me then where I thought we’d be now, I would have just laughed at the idea of the business making it to a decade, and look at it—we’ve gone from one truck at a corner in New York City to multiple shop locations and a wide array of pints available on both coasts of the country. We’re an internationally known brand! What will Big Gay Ice Cream be when it turns 20? I don’t even want to imagine. I just want to see us thrive, and I want to continue this crazy rocket ride into the unknown.
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Lambasting Libra: Six less than enthusiastic responses to Facebook’s crypto move
So, you’ve probably heard that Facebook is launching a cryptocurrency called Libra . Cue a barrage of ridiculously OTT tweets, blog posts etc from industry observers and players (“the virus is spreading”…yeah, thanks for that, Pomp), attempting to sell the notion that this will propel crypto into the mainstream. But wherever Mark Zuckerberg goes, controversy inevitably follows. And sure enough, not everyone is loved up on Libra. Here are our six favourite thumbs down responses from the past week… “Facebook has rightly identified the potential for digital currencies to reinvent money and transform the global economy, so people can live better lives. However, a digital currency controlled by tech cartels such as Facebook, Visa and Mastercard, is not the solution. Our money is increasingly in the hands of a small number of banks and payment companies, and we should avoid ceding further control to unaccountable corporate interests. Facebook’s plans pose alarming implications for privacy and power in the economy, and governments must respond by providing a central bank digital currency as a public alternative. If regulators come under pressure to give the likes of Facebook access to central bank reserves, we should ask why this privilege shouldn’t be extended to ordinary citizens as well, through a central bank digital currency. This would offer an opportunity to truly democratise our money system and take power away from extractive middlemen like banks and now tech companies. It is publicly-issued digital currencies, not Libra, that will allow people to take back control of their money and have a greater stake in the future.” David Clarke, Head of Policy, Positive Money “The new Facebook coin is a fake cryptocurrency. They are calling it cryptocurrency because it is a buzzword. It may be a digital currency, but it is not a cryptocurrency. It is a crap coin.” On Yavin, CEO and Founder, Cointelligence Story continues “There is a lot of sense in the way Libra addresses the need in global money. However, if the control over the currency remains in the unelected hands of Facebook and its commercial partners alone, this might very well turn the dream into a nightmare for all of us. Libra is a combination between a central and a commercial bank. This means that just like any other central bank, Facebook holds the keys to money printing. The control over the supply of money determines its value. In other words, a decision to print more money equals the decision to dilute the holders’ value. While central banks have the power to do so under the state’s elected representatives, where does Facebook and its partners draw their right from? We’re looking at a complete misalignment of incentive between Facebook and Libra’s holders. It would be like handing the keys to the Federal Reserve to the NASDAQ. We are already experiencing the shortcomings of centralised control over data when there is not a representative body to answer to. Extending this to users’ money and life savings is adventurous, to put it mildly.” Saga Foundation’s Founder and President, Ido Sadeh Man You can't imagine what could possibly go wrong with Facebook launching a global currency. "We're just a platform, it wasn't out fault people used it to sell drugs, weapons, illegal material, how was anyone to predict this" Move fast and break society. — Tom Goodwin (@tomfgoodwin) June 18, 2019 I recommend the reading of all the Financial Times series on the unreliable and dangerous Facebook’s initiative of lauching “a currency”, the Libra. Start with the excellent Martin Sandbu @MESandbu column: “ Don’t let Facebook take over the monetary system” — Vitor Constâncio (@VMRConstancio) June 20, 2019 Facebook has too much power and a terrible track record when it comes to protecting our private information. We need to hold them accountable—not give them the chance to access even more user data. #BreakUpBigTech https://t.co/eQr06VMMyx — Elizabeth Warren (@ewarren) June 19, 2019 The post Lambasting Libra: Six less than enthusiastic responses to Facebook’s crypto move appeared first on Coin Rivet . |
Good News for Boeing and Northrop: A-10 Warthogs Will Keep Flying Through 2030
"Imagine an unstoppable commercial Learjet with a full-automatic cannon in its nose and an iron bathtub surrounding the cockpit. That gives you some idea of the A-10's appearance and performance."
--Mother Jones
Built by Fairchild Republic, maintained byNorthrop Grumman(NYSE: NOC), and currently getting new wings courtesy ofBoeing(NYSE: BA), the U.S. Air Force A-10 Thunderbolt II aircraft (nicknamed the Warthog) has been calledthe best close-air-support plane ever designed. It costs less to fly than theLockheed Martin(NYSE: LMT)F-35 stealth fighter, carries more ammo than Lockheed's F-16 -- and carries a bigger gun to boot.
Yet for the better part of a decade,the Air Force has been trying to kill it-- to retire all its A-10s and replace them with F-35s instead.
Image source: Getty Images.
When last we heard, then-Secretary of Defense Ashton Carter had made what sounded like a final decision on the A-10's fate: to begin retiring A-10s in batches, and ultimately to retire the aircraft entirely in 2022. And yet, for the last three years running, FlightGlobal's reports on the U.S. Air Force arsenal have contained good news for fans of the Warthog: The number of A-10s has more or less held steady at about 290 planes in service.
This month, the news got even better. The A-10 could very well keep flying -- not just through 2022, but for decades to come!
This happy news is contained in a line item from the Senate Armed Services Committee's recent Fiscal Year 2020 National Defense Authorization Act (the 2020 NDAA). As explained in the "highlights" section of the act, Congress has elected to "maintain air superiority" by "encouraging the ongoing modernization of the A-10 fleet through fiscal year 2030 to continue providing unmatched air power."
Fans of the A-10 Warthog, who include Republicans Johnny Isakson and Martha McSally in the U.S. Senate (McSally used toflythe A-10), will certainly be pleased by this development. Investors should be pleased by the language of the 2020 NDAA as well.
In calling for modernization of the A-10 fleet to extend through 2030, the Senate appears to be insisting that the plane be kept in service not only up until that date, but presumably for some years, or even decades, thereafter. (It would make little sense to keep modernizing a plane up to 2030, then junk it in 2031.) This implies that Northrop Grumman, which has taken the lead in maintaining the A-10 since way back in 1987, can expect to continue performing this work for at least another decade or more.
The specific reference to modernization is also good news for Boeing, which holds a $2 billion contract to "re-wing" the A-10 fleet -- an integral part of the modernization effort, as aging A-10s will certainly need new wings.
But what about Lockheed Martin, maker of the F-35 and presumed beneficiary of the$337 millionin funds that would be freed up by the Air Force's plan to retire the A-10? (Those funds were presumably being earmarked for the purchase of additional F-35s.)
Lockheed, too, has little to complain about in this development. For one thing, alongside Northrop, it has a role as one half of the Pentagon's A-10 Prime Team that keeps the A-10s operational, so Lockheed will continue to share in that revenue stream. And for another, the 2020 NDAA authorizes the spending of $10 billion to buy 94 new F-35s for the Air Force, Navy, and Marine Corps -- 16 more planes than the Pentagon itself had asked for, worth well over $1 billion in additional revenue.
Even if it were inclined to do so, Lockheed can hardly complain about not getting a few hundred million in A-10 funds diverted to its F-35 program -- not when Congress has chosen to shower the F-35 with more than $1 billion in extra funding. (It would seem downright ungracious to insist that they get literallyallthe money Congress has to spend.)
With Lockheed, the company most likely to lobby against it, now sidelined from the debate, the future has never looked brighter for the best close-air-support plane ever.
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5 Steps You Can Take to Avoid Being Cash-Strapped in Retirement
Many workers worry about not having enough money in retirement, and that's certainly a valid concern. If you have a fear of struggling financially during your golden years despite making a solid effort to save, make these moves to lower those chances.
An estimated 21% of married couples and 44% of unmarried seniors today count on Social Security to provide 90% or more of their income. The problem, however, is thatSocial Securitywas never designed to sustain seniors mostly or solely by itself.
If you were an average earner, those benefits will replace about 40% of your former income -- but you probably need roughly double that sum to live comfortably in retirement. Therefore, plan on having income sources outside of Social Security -- namely, money in an IRA or 401(k).
IMAGE SOURCE: GETTY IMAGES.
Your Social Security benefits are calculated based on your 35 highest-paid years in the workforce, and once you reachfull retirement age, you can claim them in full. That age is either 66, 67, or 66 and a certain number of months, depending on your year of birth.
However, you're allowed todelay those benefitspast full retirement age. In doing so, you can score an annual 8% raise up until age 70, at which point that incentive runs out. Any increase you snag for your benefits will remain in effect for the rest of your life, so if you're worried about having enough money in retirement, waiting until age 70 to file is a good way to guarantee an income boost.
Saving inanytype of retirement plan is a good way to provide a stream of income to your future self. But if you want to stretch that money further in retirement, sock that money away in aRoth IRAor 401(k). Though Roth accounts don't offer an immediate tax break on contributions, once you fund one, your money gets to grow tax-free. Just as important, your money is then yours to withdraw free and clear of taxes in retirement.
Imagine you retire with a $500,000 nest egg. With a traditional IRA or 401(k), you'd lose a portion of that money to the IRS in retirement, but with a Roth account, you get to keep that balance in full.
The great thing about being retired is having free time on your hands -- so why not use it to buy yourself a little financial security? If you're willing tostart your own businessor turn a hobby you enjoy into a money-making opportunity, you can fill your days in a meaningful wayandboost your income simultaneously. Talk about a win-win.
Many people run into financial trouble during retirement because they continue spending the way they did when they had a full-time paycheck. If you're planning to maintain your existing expenses once retirement kicks off, you may want to rethink that plan and see about cutting back.
For example, you may not need a larger home once your grown kids have moved out. And if you're married, you and your spouse might manage to get by with one car, not two, if you don't have separate jobs to drive to daily. Think about the things you can do to minimize your senior living expenses, because chances are, a few changes won't necessarily impede your quality of life.
You deserve a retirement devoid of financial stress, and these moves could be your ticket. The more thought you put into retirement, the greater your chances will be of having enough money throughout it.
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4 Top Dividend Kings to Buy and Hold Forever
Real estate investment trusts, or REITs, can make great long-term investments. Not only do they typically pay above-average dividend yields, but they also have long-term growth potential as the value of their real estate holdings increases over time. However, not all REITs are in the same boat. There are some top-notch REITs that have decades-long track records of market-beating returns and dividend increases. If I had to choose four REITs to put in a portfolio that I wasn't going to check for the next 10 years or more, here's what I'd buy. Man holding 100 dollar bills in hand and puckering up to kiss them. Image source: Getty Images. Four rock-solid REITs to look at Company (Symbol) Market Capitalization Dividend Yield Realty Income (NYSE: O) $23.1 billion 3.7% Public Storage (NYSE: PSA) $42.3 billion 3.3% Welltower (NYSE: WELL) $34.3 billion 4.1% Prologis (NYSE: PLD) $52.1 billion 2.6% Data source: CNBC. Market cap and dividend yield data current as of 6/20/19. A half-century of steady dividends I've referred to Realty Income as the best overall dividend stock in the market, and for good reason. The company primarily invests in single-tenant retail properties, with tenants who operate in recession- and e-commerce-resistant areas of retail. And Realty Income's tenants generally sign long-term leases with terms of 15 years or more, locking in year after year of predictable, growing income. This has resulted in some impressive performance. Realty Income has paid 587 consecutive monthly dividends and has increased its payout 102 times since its 1994 NYSE listing. What's more, the stock has generated a 16.9% annualized total return throughout its 25-year publicly traded history, handily beating the S&P 500. A dominant market leader with room to grow To call Public Storage the market leader in the self-storage business would be a major understatement. The company is larger than the next three publicly traded competitors combined . Public Storage has built its empire up to 2,444 self-storage properties and has done it without taking on a ton of debt. For this reason, the company enjoys a great margin of safety when it comes to operating costs. In fact, Public Storage has said that it can break even with just 30% of its rentable space occupied -- and it's currently well above 90%. Story continues Despite the company's massive size, there are two big reasons to believe that Public Storage still has room to grow. First, the self-storage industry is still highly fragmented, with about 80% of self-storage facilities operated by small companies and independent operators, leaving lots of possibilities to grow through acquisition. And Public Storage has recently started to ramp up its development efforts, where its scale and financial flexibility give it tremendous advantages. Recession-resistance and a growing market Welltower is the largest REIT that specializes in healthcare properties. Most of the portfolio is senior-focused, with a large concentration of senior housing, skilled nursing, and other properties that cater to the needs of older age groups. There are two good reasons why Welltower could be a great addition to your dividend portfolio. First, healthcare is one of the most recession-proof types of real estate. After all, in tough times, people can stop shopping at the mall, stop going on vacation, etc., but they need healthcare. In Welltower's case, seniors not capable of living on their own need somewhere to go. Second, the market for senior housing is expected to grow tremendously in the coming decades as the baby-boomer generation ages. In fact, the 85-and-older age group -- the bread-and-butter of senior housing -- is expected to roughly double over the next 20 years. As e-commerce grows, so will the need for logistics real estate It shouldn't come as a big surprise that e-commerce has grown by leaps and bounds over the past 20 years or so. From a real estate perspective, online shopping requires a lot of space. In fact, leading logistics REIT Prologis estimates that online retail requires roughly three times the logistical square footage as a traditional brick-and-mortar retailer. Despite the growth, there's still lots of room to grow. In fact, e-commerce still only makes up roughly 10% of all retail sales in the U.S., according to the Census Bureau (up from about 4% in 2010). Along with this growth will come the need for more logistical properties, and with its massive scale and financial flexibility, Prologis is well-positioned to grow with the demand. 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 Frankel, CFP owns shares of Public Storage and Realty Income. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy . |
The 5 Best Dow Jones Stocks So Far in 2019
What a week! The Dow Jones Industrial Average climbed over 2% last week, after the Fed cheered investors by indicating that it will cut interest rates next month. That sent tech and energy shares soaring- with the Dow climbing nearly 250 points on Thursday and reaching a record high in early trading on Friday. In short, the Dow is looking very strong right now- with the index up almost 15% year-to-date. In particular, the following five stocks are leading the pack in terms of year-to-date (YTD) performance. Here we turned to the Street to see whether these stocks still offer a compelling investing proposition. This is what top-performing analysts have to say:
Microsoft takes the award of best-performing Dow stock so far this year. The company has put on a remarkable sprint of over 30% year-to-date. And analysts are almost uniformly positive about the company’s outlook going forward. That’s despite the fact that the current average analyst price target of $143 only suggests upside potential of 4%. But if you take a longer-term outlook, the stock’s multiple opportunities quickly become apparent.
One analyst singing MSFT’s praises is five-star KeyBanc analystBrent Bracelin. He has just reiterated his Microsoft buy rating with a $143 price target. Bracelin made the call following a number of upbeat meetings with Microsoft Gaming executives.
“Gaming represents a $100B+ TAM opportunity for Microsoft” commented Bracelin. “We see Microsoft Gaming as a small (9.4% of FY18 sales) but strategic growth segment where the transformation to a subscription-based model (i.e., the Netflix of gaming) could sustain healthy growth and improving margins over the next three to five years as it gains share within a $100B+ gaming industry” the analyst told investors on June 11.
Meanwhile Morgan Stanley’sKeith Weisscalls Microsoft ‘the best positioned firm in tech for the emerging Hybrid Cloud architectures.’ He highlights the company’s unique position as both a top 'New Stack' share gainer and the #1 'Old Stack' share gainer.
And let’s not forget the savvy deal Microsoft has just struck with Oracle. The two companies announced a “cloud interoperability partnership enabling customers to migrate and run mission-critical enterprise workloads across Microsoft Azure and Oracle Cloud.” Moreover, “by enabling customers torun one part of a workload within Azure and another part of the same workload within the Oracle Cloud, the partnership delivers a highly optimized, best-of-both-clouds experience.”
“Given Microsoft’s Azure is the #2 public cloud vendor in the world and Oracle is the clear #1 database vendor with a strong #2 position in enterprise applications that includes a fast-growing SaaS portfolio, we believe the two clouds complement each other well” writes Monness analystBrian White, adding that the deal is a positive for both companies.
Close on Microsoft’s heels comes networking giant Cisco Systems. Over the last three years, Cisco shares have doubled and the stock shows no sign of slowing down. Even in the last five days, shares have soared 4%. Even a ratings downgrade from William Blair analystJason Aderdidn’t deter investors for long.
The analyst cited "signs of tightening demand across the IT infrastructure universe" at the company. And this weaker demand environment "could pressure growth in Cisco's fiscal 2020, especially when compared against unusually strong demand in fiscal 2019," the analyst said.
As a result, Ader concludes that upside to consensus 2020 expectations, "as well as multiple expansion, will be more challenging from here."
Nonetheless, Cisco still boasts a ‘Strong Buy’ analyst consensus rating. The average analyst price target stands at $59 (4% upside potential). And with the ongoing trade war between US and China, Cisco continues to look relatively attractive to tech-focused investors.
“Cisco remains our top pick for investors looking at safe havens in the current environment to navigate through the trade war noise,” commented JPMorgan analystSamik Chatterjeerecently. He notes that “relatively modest exposure to China and largely immune to any trade-related impacts.”
Credit card and payments giant Visa continues to outperform. And now top-rated Wedbush analystMoshe Katrihas raised his V price target from $170 to $187 (8% upside potential). According to Katri, Visa benefits from a double whammy of "strong secular growth tailwinds," and accelerated, ongoing monetization efforts. He is confident Visa can deliver annual growth of 10% to 15% in credit-card revenue and 20% growth in adjusted EPS over the next few years.
Encouragingly, Cantor Fitzgerald’sJoseph Foresialso sees a whole ‘basket of catalysts’ for Visa stock. Note that Foresi is ranked #2 out of over 5,200 analysts - so he clearly knows what he is talking about when it comes to stock picking. Not only does the company have a leading credit card position, it also offers significant opportunities for growth internationally and digitally.
“We like Visa’s opportunity to capitalize on the global conversion of cash into credit, international opportunities, and digital payment tailwinds. Visa has a basket of catalysts expanding its TAM including Visa Direct, contactless payments, & B2B to name a few” writes the analyst. “We remain attracted to Visa's dominant position in the global card network market and its strong, recognizable international brand” the analyst told investors.
Visa isn’t the only credit card company delivering sizable gains. AXP is also up over 30% year-to-date. What sets AXP apart is that it is one of only a few financial service companies capable of both issuing and processing electronic payment cards. This means the company can generate revenue from interest earning products on top of network processing transaction fees.
For Merrill Lynch’sJason Kupferbergthe company continues to look undervalued. He has just reinstated coverage of AXP with a buy rating with a Street-high price target of $145. From current levels this suggests shares can surge a further 17% in the coming months.
He calls the company’s credit card membership program “a worthy investment which offers customers unique experiences beyond traditional rewards points.” And even though costs have been rising as a proportion of revenue, the analysts writes that he has nevertheless “been pleasantly surprised to see [American Express] strategically raise card fees to help offset these costs.”
Walt Disney Co is enjoying a wild ride so far in 2019. The company is gearing up for the launch of its highly anticipated Disney+ streaming service in November. “Disney is our top pick in the content space as we reiterate our Buy rating and raise our price target to $175” cheers Rosenblatt analystMark Zgutowicz. Meanwhile Loop Capital’sAlan Gouldsees Disney +’s first year subscriber count topping the 10M consensus.Plus excitement is building over the opening of its highly anticipated $1 billion theme park expansion Star Wars: Galaxy’s Edge. Starting June 24, the park will be open to the public without reservations. “The segment has been a key growth driver for the company over the last few years… Given the incremental returns from investment we are encouraged the company continues to invest in this segment with Star Wars Galaxy Edge” commented Zgutowicz.
As if that wasn’t enough, Disney’s 2019 blockbuster Avengers: Endgame is now the second-highest grossing movie of all-time worldwide. And now Disney plans to rerelease the movie with additional scenes- a sneaky attempt to topple box-office leader Avatar from first place according to commentators.
However, Imperial Capital’sDavid Millerhas a word of warning for investors. He has just downgraded DIS from Buy to Hold, writing: "The core rationale for lowering our rating to In-Line is simply due to the fact that the stock has performed consistent with our previous Outperform rating.”
“Most of the catalysts we focused on at the time of that ratings change: the film slate, the opening of the two Star Wars lands, the disposal of the Regional Sports Networks, the Disney+ analyst day, and the re-financing of the various 21st Century Fox legacy debt tranches, have either happened, or are set to happen, and at a record multiple on 2021 earnings, are pretty much built in to the stock, in our view" the analyst concludes.
Discover the Street's best-rated stocks over the last 7 days here |
3 Things to Watch in the Stock Market This Week
Stocks rose sharply last week as investors digested news that the Federal Reserve may be preparing to cut interest rates as soon as July to support economic growth. TheS&P 500(SNPINDEX: ^GSPC)and theDow Jones Industrial Average(DJINDICES: ^DJI)each rose more than 2% on the week and touched all-time highs.
The coming week promises to bring potential volatility around a few stocks that are announcing quarterly earnings results. Below, we'll take a look at the metrics that could send shares ofNike(NYSE: NKE),McCormick's(NYSE: MKC), andConstellation Brands(NYSE: STZ)moving in the week ahead.
Image source: Getty Images.
Nike's sales growth rebound hit a snag in the most recent quarter, so investors will be focused on that metric when the sports apparel giant reports earnings results on Thursday. Revenue gainsslowed in the U.S. marketin the fiscal third quarter after accelerating in each of the prior two quarters. Sales were still up a healthy 7%, though, to more than double the growth rate of rivalUnder Armour.
On Thursday, investors will be looking for signs that Nike is still seeing a good balance between supply and demand in the U.S., and that its recent product introductions are resonating with exercise fans. But Wall Street will be even more interested to learn whether CEO Mark Parker and his team still expectrobust sales growth and improving marginsin the coming fiscal year despite rising input costs.
A volatile growth rate over the last few quarters has put extra focus on McCormick's earnings results, also set for Thursday. The spice and flavorings giantgained market share last quarter, as it has for years. However, sales gains were below expectations in the prior quarter, so investors are keen to learn which of those two results better represents McCormick's current operating trends.
In either case, you can expect to see profitability continue marching higher. McCormick's operating margin has been expanding steadily since it acquired the French's and Frank's condiment brands in 2017, and management expects that momentum tocarry on through 2019. On Thursday, investors will find out whether executives still see sales rising by between 3% and 5% this year, while operating earnings jump by about 10%.
Constellation Brands, the company behind popular beer brands such as Corona and Modelo, will announce its fiscal first-quarter earnings results on Friday. Investors have plenty to look forward to in this report.
Its last quarterly announcement included some big surprises, after all, such as the divestment of a portfolio of lower-margin wine and spirits franchises. That segment has been holding back Constellation Brands' much more successful beer division in the past two years, and this week's metrics might help show whether their removal can lift the broader business. For example, CEO Bill Newlands and his team initially predicted thatoperating margin will rise to 30%from 26% following the close of the sale in the context of accelerating market-share gains.
Meanwhile, look for Constellation Brands to update investors on the national rollout of the Corona Premier brand, the largest addition to the Corona franchise in decades. Finally, Newlands and his team will likely discuss their updated expectations around marijuana and what they might mean for their massive investment in pot giantCanopy Growth. Constellation Brands has lots of flexibility to expand its bet on this key consumer-focused market, depending on how quickly it develops over the next few years.
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Demitrios Kalogeropoulosowns shares of Nike, Under Armour (A and C shares). The Motley Fool owns shares of and recommends Under Armour (C shares). The Motley Fool recommends Constellation Brands, McCormick, Nike, and Under Armour (A shares). The Motley Fool has adisclosure policy. |
Cryptocurrency Scammer Dubbed ‘Coyote of Wall Street’ Pleads Guilty
The hammer falls on yet another cryptocurrency scammer. | Source: Shutterstock By CCN Markets : A scammer that called himself the “coyote of Wall Street” has admitted to telling clients he would invest their money in cryptocurrency only to keep it for himself. Patrick McDonnell, a 46-year-old from Staten Island in New York, pleaded guilty to one count of wire fraud on Friday. He explained to U.S. District Judge Nicholas Garaufis, in comments reported by Bloomberg , that he spent the money on himself: I perpetrated a fraud. I claimed to invest it in virtual currency and spent it on personal expenses. How the “Coyote of Wall Street” Worked McDonnell, also known as Jason Flack, ran a company called CabbageTech Corp., which also went by the name Coin Drop Markets . Over a three-year period, he claimed on social media to have traded over $50 million for over 8,000 investors. The Friday case claimed that McDonnell took investor money for himself and spent at least $194,000. He took over $164,000 from the man at the center of the Friday case, telling the investor the stake had risen to $274,000. Read the full story on CCN.com . |
Should You Be Concerned About Global Blood Therapeutics, Inc.'s (NASDAQ:GBT) Historical Volatility?
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If you own shares in Global Blood Therapeutics, Inc. (NASDAQ:GBT) 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 sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
View our latest analysis for Global Blood Therapeutics
Zooming in on Global Blood Therapeutics, we see it has a five year beta of 1.78. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. Based on this history, investors should be aware that Global Blood Therapeutics are likely to rise strongly in times of greed, but sell off in times of fear. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how Global Blood Therapeutics fares in that regard, below.
With a market capitalisation of US$3.6b, Global Blood Therapeutics is a pretty big company, even by global standards. It is quite likely well known to very many investors. It has a relatively high beta, suggesting it may be somehow leveraged to macroeconomic conditions. For example, it might be a high growth stock with lots of investors trading the shares. It's notable when large companies to have high beta values, because it usually takes substantial capital flows to move their share prices.
Since Global Blood Therapeutics has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. In order to fully understand whether GBT is a good investment for you, we also need to consider important company-specific fundamentals such as Global Blood Therapeutics’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for GBT’s future growth? Take a look at ourfree research report of analyst consensusfor GBT’s outlook.
2. Past Track Record: Has GBT 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 GBT's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how GBT 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. |
Why Adobe Is One of the Best Software Stocks Around
Digital transformation is sweeping across the globe, and the pressure on companies to update theircustomer experiences for the 21st centuryis on the rise. Despite ample competition, there is plenty of new business to go around. However, after yet another quarterly performance that exceeded expectations, digital content creation software providerAdobe(NASDAQ: ADBE)has proven it is a best-in-breed pick.
Adobe'ssecond-quarterrevenue rose 25%, building on the same rate put up during the fiscal 2019 first quarter and topping management's guidance. Full-year expectations for $11.15 billion in revenue was left unchanged -- a 23% annualized increase -- and third-quarter revenue results were forecast to be up 22%. Adobe does tend to under-promise and over-deliver, so investors were more than happy to focus on the first half of the year's results.
[{"Metric": "Revenue", "Six Months Ended May 31, 2019": "$5.35 billion", "Six Months Ended June 1, 2018": "$4.27 billion", "YOY Change": "25%"}, {"Metric": "Gross profit margin", "Six Months Ended May 31, 2019": "84.9%", "Six Months Ended June 1, 2018": "87.4%", "YOY Change": "(2.5 p.p.)"}, {"Metric": "Operating expenses", "Six Months Ended May 31, 2019": "$3.10 billion", "Six Months Ended June 1, 2018": "$2.33 billion", "YOY Change": "33%"}, {"Metric": "Adjusted earnings per share", "Six Months Ended May 31, 2019": "$3.54", "Six Months Ended June 1, 2018": "$3.21", "YOY Change": "10%"}]
Data source: Adobe. YOY = year over year. P.p. = percentage point.
Though gross profit margins declined as Adobe added new services aimed at digital commerce -- primarily through its big takeover ofMagentoandMarketolast year -- the metric was still near a lucrative 85% rate. That's substantially higher than some of Adobe's software peers likesalesforce.com(at 75.5% gross profit margin in its last quarter) andShopify(at 56.3% gross profit).
With global digital change still a huge opportunity in front of it and growth well into the double digits, Adobe is keeping its foot on the gas. Operating expenses were up 33% in the first half of 2019, led by an increase in sales and marketing expenses to $1.63 billion. The higher expenses were the primary reason that adjusted earnings were up only 10% so far this year, handily trailing the top-line growth rate.
Image source: Getty Images.
Adobe is nevertheless a very profitable enterprise, and though the software company's bottom line isn't growing as fast as one might expect, the company's reinvestment back into itself will pay off later. With gross margins some of the best out there, growing sales as quickly as possible is a worthy cause.
That viewpoint shows up in the stock's valuation, currently priced at 53.9 times trailing-12-month earnings. That's a lofty valuation, but adjusting the metric using 12-month free cash flow (money left over after basic operating expenses and capital expenditures) yields a more reasonable 36.6. Plus, the expectation is that Adobe's growth will soon start paying off -- forward price to earnings is substantially lower than either of the trailing 12-month metrics and is currently at 29.7.
By any count, Adobe isn't cheap. But the leader in digital content creation is successfully parlaying that dominance into growth in commerce and other digital tools. North of 20% revenue expansion is in the cards for the foreseeable future, and combined with one of the best gross profit margins in the software business should equate to a big payoff down the road.
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Nicholas Rossolilloand his clients own shares of Salesforce.com and Shopify. The Motley Fool owns shares of and recommends Salesforce.com and Shopify. The Motley Fool recommends Adobe Systems. The Motley Fool has adisclosure policy. |
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