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If You Like Dividends, You Should Love These 2 Stocks
Dividends are only as good as the company backing them, which is why you need to dig into a business before hitting the buy button. Sometimes a fat dividend yield just isn't worth the risk because it isn't sustainable. That's not the case with industry leadersExxonMobil(NYSE: XOM)andEnterprise Products Partners(NYSE: EPD). This pair offers up big yields, long histories of dividend increases, and solid operations. Here's why dividend investors will love these two income stocks.
Exxon is an integrated oil and natural gas giant with a $300 billion market cap, and it has a long history of running its diversified business in a conservative manner. The best example probably shows up on thebalance sheet, where long-term debt makes up less than 10% of the capital structure. Even during the deep industry downturn of 2014-2015, when the company used debt to keep funding its capital program and dividend, long-term debt only inched up to 15% of the capital structure.
Image source: Getty Images.
This is not a company that takes big risks, but that can leave it lagging behind the industry at times. Put simply, it takes time to turn a giant ship, especially when you do so as carefully as Exxon does. And right now, Exxon is trailing behind its peers on the production front. The oil giant's average daily production fell year over year in 2016, 2017, and 2018, dropping roughly 6% over the three-year span. That's got investors worried about the future.
However,production turned higher in the second half of 2018, with continued strength in the first quarter of 2019. Most of that was driven by the company's U.S. onshore oil drilling success. It's onlyabout halfway through its current plans on that project, and it has a few more giant projects it's working on after that, as well. That includes a broad array of offshore, liquified natural gas, and chemical and refining investments. This is all part ofa well-articulated planthat will take the company through 2025.
But Wall Street has a hard time dealing with long-term anything, with most investors preferring instant gratification. That's just not going to happen with Exxon and its conservative approach. If you can think long term, though, you'll get Exxon with a yield higher than it's been in roughly 20 years. Then there's the incredible 37-year history of annual dividend increases,which no peer can match. Add in the rock-solid balance sheet and the clear progress on the company's growth plans, and Exxon is easily a stock that a dividend investor could start to love.
Enterprise Products Partners is one of the largest midstreamlimited partnershipsin North America. It helps move and process oil and natural gas using a largely fee-based model that helps protect it from the volatile commodity swings in the energy industry. The bigger driver of performance is demand for its services. That demand is expected to remain strong as U.S. energy production hasoutstripped the capacity to move and processthese key fuels. That suggests Enterprise and its midstream peers have a long runway for growth.
EPD Dividend Per Share (Annual)data byYCharts
The problem with Enterprise is thatit has decided to shift its business model a little bit. Historically, it has funded growth by issuing debt and units. However, it wants to use cash flow to fund a larger portion of its growth so it can limit thedilutiveimpact of unit sales. That's meant slowing distribution growth into the low single digits for a few years. The basic idea is to let free cash flow grow so it can be put to work on capital projects. Once this overhaul is complete in a year or two, distribution growth is likely to pick back up to the mid-single digits. Note that it's making this transition without killing its impressive 22-year streak of annual distribution increases -- a testament to its unitholder commitment.
The big story here, however, is that Enterprise is making very good progress. For example, it covered its distribution by an incredible 1.6 times in 2018. (For reference, 1.2 is considered strong coverage.) And it hasn't pulled back on the capital investment front, with roughly $5 billion worth of projects underway. Leverage is toward the low end of the industry as well, so there's little balance-sheet risk here to worry about. Now add in a robust 6% distribution yield, and you can see why Enterprise deserves a little love as it works to become even stronger than it was before.
No investment is worry-free, and that's definitely true of Exxon and Enterprise. They are each working through important transition points. However, they are financially strong, have well laid-out plans and goals, and are showing strong progress. Add in long histories of rewarding investors with disbursement increases and big yields, and you can see that this pair is worth a closer look today. You'll need to take a long-term view of the situation, but you'll be able to collect fat yields while you watch these financially strong industry giants execute on their plans for a better future.
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Reuben Gregg Brewerowns shares of ExxonMobil. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has adisclosure policy. |
Business Highlights
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What's your data worth to Big Tech? Bill would compel answer
WASHINGTON (AP) — As Congress bears down on big tech companies, two senators are proposing to force giants like Google, Facebook and Amazon to tell users what data they're collecting from them and how much it's worth. The proposed legislation was floated Monday by Sens. Mark Warner, D-Va., and Josh Hawley, R-Mo. It comes as bipartisan support grows in Congress for a privacy law that could sharply rein in the ability of the biggest tech companies to collect and make money from users' personal data.
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High rollers: Eldorado buys Caesars in deal valued at $17B
Eldorado Resorts is buying Caesars in a cash-and-stock deal valued at $17.3 billion including debt, creating a casino giant. The deal Monday puts about 60 casinos and resorts in 16 states under the name Caesars.
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High court strikes down 'scandalous' part of trademark law
WASHINGTON (AP) — The Supreme Court has struck down a section of federal law that prevented officials from registering "scandalous" or "immoral" trademarks, handing a victory to a Los Angeles-based fashion brand spelled F-U-C-T. The high court announced its decision Monday.
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US stock indexes finish mixed ahead of trade talks
The U.S. stock market capped a day of listless trading with modest losses Monday as investors focused on upcoming trade talks between the U.S. and China. The major stock indexes drifted between small gains and losses for much of the day. Smaller company stocks had their worst day since May. The losses erased some of the market's solid gains from last week. Bond yields fell.
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Trump signs order imposing sanctions on Iran supreme leader
WASHINGTON (AP) — President Donald Trump has signed an executive order targeting Iran's supreme leader and his associates with financial sanctions. It's the latest action the U.S. has taken to discourage Tehran from developing nuclear weapons and supporting militant groups.
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GPS, special maps and the wild: Tech helps searchers zero in
HONOLULU (AP) — Technology is making it easier to find missing people in the wild by zeroing in on the best places for searchers to go. Volunteers looking for a hiker lost in a Hawaii forest last month gathered GPS data of the ground they covered. Organizers then put it on a specialized digital map so the team could see what areas had been searched and what still needed to be checked. The system has grown in popularity, with teams from Oregon to North Carolina starting to use it for large-scale searches.
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Justices side with business, government in information fight
WASHINGTON (AP) — The Supreme Court is siding with businesses and the U.S. government in a ruling about the public's access to information. The high court ruled Monday against a South Dakota newspaper that was seeking information about the government's food assistance program, previously known as food stamps.
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Supreme Court to review insurers' Obamacare claims for $12B
WASHINGTON (AP) — The Supreme Court will decide whether insurance companies can collect $12 billion from the federal government to cover their losses in the early years of the health care law championed by President Barack Obama. The justices say Monday that they will hear appeals from the insurers who argue that they are entitled to the money under a provision of the "Obamacare" health law.
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Tariffs weighing on manufacturers' optimism, survey shows
NEW YORK (AP) — Manufacturers see the Trump administration's trade policies as a bigger challenge than the economy. That's one of the findings of a quarterly survey by the National Association of Manufacturers, or NAM, released last week. Fifty-six percent of the 689 manufacturing companies questioned in the survey cited trade issues including tariffs as one of their greatest challenges. Just over 31% said the economy was one of their greatest challenges.
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Trump order aims to disclose 'real' costs for health care
WASHINGTON (AP) — President Donald Trump signed an executive order Monday that calls for upfront disclosure by hospitals of actual prices for common tests and procedures to keep costs down. The idea is to give patients practical information that they can use to help save money. For example, if a hospital charges your insurer $3,500 for a type of echocardiogram and the same test costs $550 in a doctor's office, you might go for the lower-price procedure to save on copays.
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The S&P 500 index slipped 5.11 points, or 0.2%, to 2,945.35. The Dow Jones Industrial Average rose 8.41 points, or less than 0.1%, to 26,727.54. The Nasdaq composite dropped 26.01 points, or 0.3%, to 8,005.70. The Russell 2000 index of smaller companies slid 19.54 points, or 1.3%, to 1,530.08. |
Enphase Energy: Buy at the High?
Shares ofEnphase Energy(NASDAQ: ENPH)have nearly quadrupled through the first six months of 2019. On one hand, the business has earned a higher valuation by cementing profitable operations and positioning itself for rapid growth in the near future. On the other hand, a six-month return of nearly 300% sure raises some eyebrows when visualized with a chart.
The solar hardware provider is clearly doing some things right, but investors might be wondering if Wall Street has priced a little too much future growth into shares at the moment. If so, then starting or adding to a position could leave investors regretting their money moves. Is Enphase Energy stock a buy at an all-time high?
Image source: Getty Images.
The business is on a promising trajectory. After spending years struggling with debt and wallowing in operating losses, Enphase Energy finally put the pieces together in 2018. Customers rapidly adopted its next-generation IQ 7 microinverters, which are the core piece of hardware that allow power optimizers to smooth out electricity production from solar modules. It even inked a deal to become the exclusive microinverter provider forSunPowermodules.
All of that momentum delivered afull-year 2018 operating profitof $1.6 million, which isn't much, and was entirely driven by a $5 million profit in the fourth quarter, but it compares favorably with an operating loss of $39.3 million the year before. It was also just the beginning.
Enphase Energy reportedoperating income of $7.1 million in Q1 2019and expects that to continue rising for the foreseeable future. The business also reported a revenue increase of 43%, an 82% surge in gross profit, and a 710-basis-point expansion of gross margin compared with the prior-year period. That helped to drive operating cash flow 407% higher year over year to over $17 million.
Despite the swift progress in the company's financial profile, shares do appear to be a bit expensive relative to where the business is right now. Consider how Enphase Energy compares toSolarEdge Technologies(NASDAQ: SEDG), which sells a diverse portfolio of solar hardware and clean energy products.
[{"Metric": "Market cap", "Enphase Energy": "$2.1 billion", "SolarEdge Technologies": "$2.8 billion"}, {"Metric": "Trailing-12-month revenue", "Enphase Energy": "$346 million", "SolarEdge Technologies": "$999 million"}, {"Metric": "Forward P/E", "Enphase Energy": "28.4", "SolarEdge Technologies": "15.7"}, {"Metric": "PEG ratio", "Enphase Energy": "0.41", "SolarEdge Technologies": "0.83"}, {"Metric": "Price-to-sales ratio", "Enphase Energy": "6.2", "SolarEdge Technologies": "2.8"}, {"Metric": "Price-to-book ratio", "Enphase Energy": "138", "SolarEdge Technologies": "4.5"}]
Data source: Yahoo! Finance.
Of course, investing is often about where a company's going, not where it's been. Enphase Energy is on pace to deliver roughly $500 million in revenue in 2019 and achieve a nearly 10% operating margin by year's end. That should put the company in a position to comfortably make the necessary capital investments in its next-generation IQ7 X andIQ8 microinvertersas well as itsrevamped lineup of energy storage products.
Moreover, the business appears poised to ride the momentum of accelerating solar power installations. According to the U.S. Energy Information Administration, the United States generated 12% more electricity from solar power in Q1 2019 compared to the year-ago period, and 55% more than the same period of 2017.
Perhaps that helps to explain why Wall Street isn't fretting over the fact that Enphase Energy is worth just $14 million on paper. While that's not ideal, the tally of shareholders' equity nearly doubled in the first three months of 2019 compared with the end of 2018. So perhaps continued strong cash flow generation can help to bolster the balance sheet over time. Nonetheless, this is something investors want to watch closely in the coming quarters and years.
Image source: Getty Images.
There's no denying shares of Enphase Energy are expensive using traditional valuation metrics. While the business is growing hand over fist and expects that to continue, the stock might be priced for perfection right now. Put another way, there's no wiggle room to account for possible risks on the horizon.
What if the company's suppliers continue to encounter component shortages and drag down revenue growth? What if the launch of IQ8 microinverters are delayed again and that pushes back the debut of the company's energy storage products? What if an economic slowdown weighs on the appetite for investments in new solar projects?
I was bullish on Enphase Energylast November, and I still think it has a bright long-term future, but investors might want to wait for a pull back in the stock price before starting or adding to a position. Barring an acquisition, the business is going to have to deliver a lot of growth and avoid obstacles to be worth its current $2.1 billion market valuation.
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Maxx Chatskohas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Blue Jackets at center of attention as NHL free agency looms
VANCOUVER, British Columbia (AP) — Where many express concern, Jarmo Kekäläinen says he sees only opportunity regarding the uncertain state of the Columbus roster a week before NHL free agency. To Kekäläinen, the fear of possibly losing stars such as Matt Duchene, Artemi Panarin and goalie Sergei Bobrovsky on July 1 is offset by the knowledge that their departures would open significant space under the salary cap. That would put the Blue Jackets general manager in prime position to fill those holes through trades or free agency at a time when the newly announced $81.5 million payroll maximum for next season is forcing various cap-strapped teams to shed salary. "I think every $100,000 or every $1,000 counts at this point for some teams that are going to be squeezed," Kekäläinen said shortly after the new cap number — $1.5 million lower than initially projected — was announced. "They're going to have to sell their problems. We could be a solution." Kekäläinen won't rate the Blue Jackets' chances of re-signing one or all three players. "I'm sure we'll get some answers shortly if it starts looking like they're moving into another direction. But we thought this could happen," he said, referring to the bold gamble Columbus made in choosing to acquire Duchene in a trade with Ottawa, and retain Panarin and Bobrovsky at the trade deadline in February knowing they were in the final years of their contracts. "If it happens, we're not going to be shocked," Kekäläinen added. "If it is the case, then we just move forward with what we have and start building other ways." The 27-year-old Panarin is considered the top free agent on the market. The NHL's 2016 rookie of the year has topped 70 points in each of his four seasons and scored 116 goals in 322 career games. Duchene, a center, has topped 20 goals seven times in 10 seasons and coming off a year in which he had a career-best 31 goals. Story continues And then there is the 30-year-old Bobrovsky, a two-time Vezina Trophy-winner. The Blue Jackets could also lose center Ryan Dzingel, whom they acquired in a separate trade with Ottawa. Other notable free agents set to hit the market are San Jose captain Joe Pavelski, Winnipeg defenseman Tyler Myers and Toronto defenseman Jake Gardiner. The list of top-end talent has dwindled with defenseman Erik Karlsson re-signing with San Jose, forward Jeff Skinner re-signing with Buffalo, and Philadelphia acquiring and signing center Kevin Hayes. According to Spotrac.com, only nine of 31 teams are projected to be $20 million or more under the cap, and led by Colorado at $35.5 million. At the other end of the spectrum is Vegas, currently projected to be $1.6 million over the cap, and will have to be in compliance by the start of the season in October. Some teams may resort to the rarely used option of poaching from the restricted free agent pool. This would require a team issuing an offer sheet, which would lead to the player's team having to decide to match the offer or receive draft picks as compensation. The Calgary Flames, in 2013, were the last team to issue an offer sheet in a bid to acquire then-Avalanche center Ryan O'Reilly, only to have Colorado match the contract. Speculation has focused on talented Maple Leafs forward Mitchell Marner being a candidate to receive an offer sheet, something Toronto GM Kyle Dubas acknowledged without committing to whether the team would match it. "It's kind of hanging over everything now," Dubas said last week. "It's our intention they're here for as long as we can possibly keep them. But if the dollar amount doesn't make sense as far as our internal economics, it will be a decision as to what we might do." The Maple Leafs are at least better positioned to re-sign Marner after freeing up $6.2 million of cap space by trading veteran forward Patrick Marleau to Carolina over the weekend. Cap constraints were behind the Nashville Predators' decision to trade P.K. Subban to New Jersey, with the Devils easily affording the play-making defenseman's $9 million annual cap hit over the final three years of his contract. Devils GM Ray Shero might not be done adding talent with nearly $26 million in space still available. "We'll see where it goes, and we want to be an improved hockey team," he said. "Our fans deserve that, certainly our players deserve that, and this is a great opportunity in time to do it." It wasn't lost on Dallas GM Jim Nill of how Subban's trade provides room for the Central Division rival Predators to add players. "I know that David Poile's a very good general manager and he's looking at something else he's got planned," Nill said, referring to the Predators GM. "But that's the intriguing part of the game now." ___ More AP NHL: https://apnews.com/NHL and https://twitter.com/AP_Sports |
Disrupting the Dollar, Gold vs Bitcoin, Marvelous Montauk—The Ledger
On the shores of foggy Montauk, tech and finance executives gathered last week atFortune’sBrainstorm Financeto talk about big ideas. Notably, they explored how the ethos of Silicon Valley isseeping into Wall Street, and asked whetherbig banks will be displaced—or if the old guard of the financial world will simply appropriate new tech tools to stay in control for decades to come. One of many delightful surprises: Citi CEO Michael Corbat took up the counter-cultural mantle,labeling himself a “true believer”in cryptocurrency.
Meanwhile, some currents of the conversation raised an even deeper question: Will new technology, notably cryptocurrency, end the dominance of the U.S. dollar? At a breakfast panel, TrustToken co-founder Tory Reiss noted how merchants in China and Ukraine are using digital money called Tether to arrange import deals, while thousands of brokers in Hong Kong are using WhatsApp and Bitcoin to subvert currency controls. In the past, it would have been U.S. dollars—namely suitcases full of cash—enabling such transactions.
Others predicted that the next phase of finance will see nation states issuing cryptocurrencies of their own. For Alex Mashinsky of Celsius Network, this will further hasten the decline of the dollar as the world’s reserve currency, and cause America to lose one of its most powerful geopolitical assets. “The monopoly of the U.S. dollar will be disrupted likeAT&Tbefore it,” he said, referring to the 1980s breakup of what was once America’s most powerful communications monopoly.
It’s not just countries, of course, getting into the digital currency game. On theBrainstorm Financemain stage, Kathryn Haun of Silicon Valley venture capital firm Andreessen Horowitzdiscussed Project Libra, the Facebook-ledinitiativeto create a new type of money for billions of users. As Haun explained it, her firm is just one of dozens that will hammer out the details of Libra, likening the process to a “Constitutional convention…you have all these different states coming in trying to form this union.”
Not everyone is cheering on this process—and some are downright hostile. Ledger reader Michele Clarke sent us an acerbic email to say, “So a quick fact check – these are corporations, not ‘states’. And wouldn’t holding a ‘Constitutional convention’ fall under the literal definition of treason?”
Meanwhile, others questioned if the financial future we are creating is part of the larger surveillance state arising all around us. In the words of Amber Baldet, Clovyr CEO and formerJPMorgan Chaseexecutive, there is a real risk of a “William Gibsonian corporate dystopia” if we turn away from decentralization, which was the original promise of blockchain technology. Finally, Gem CEO Micah Winkelspecht—a long time blockchain builder—made an impassioned plea to treat the ability to tinker with new financial technologies as a human right. As I said, lots of big ideas on the shores of Montauk.
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If Ledger readers will indulge us in a victory lap, we were absolutely thrilled with the inaugural edition of Brainstorm Finance. We received rave reviews—including one delegate who described it as a “conference without annoying conference people.” Jen, Robert, Adam, and I want to thank everyone who came, read our coverage, and contributed to the discussions. We can’t wait to do it all over again next year.
GOT TIPS?
Send feedback and tips to ledger@fortune.com, find us on Twitter@FortuneLedgeror email/DM me directly at the contact info below. Please tell your friendsto subscribe.
Jeff Roberts@jeffjohnrobertsjeff.roberts@fortune.com
1. THE LEDGER’S LATESTExclusive: Mortgage Master Blend Raises $130 Millionby Robert HackettWhy Blockchain ‘Hype’ Needs to Stopby Anne SradersTala CEO: How Facebook’s Libra Cryptocurrency Can Help Companies Scaleby Lucinda ShenWhat’s Next in Blockchain? Ask This Teenage Engineerby Natallie RochaSecurity Tokens Will Be the ‘Killer App’ of Cryptocurrency, OverstockCEO Saysby Jeff John RobertsRipple CEO: Facebook Libra Cryptocurrency Push Makes Me Happyby Jonathan Vanian
2. DECENTRALIZED NEWSTo the Moon…Bitcoin is at$11,000 and climbing. Project Libra willturbo-chargeFacebook’s ad empire. France createsG7 task forceto study cryptocurrency and central banks. Fin-tech startup Tallyraises $50 millionto automate personal finance. Mike Novogratz’s Galaxy Digitalunveils option tradingfor hedgies. IBM Blockchain offers“pay as you grow” pricing.…Rekt.Fintech startup says Facebooklifted its logofor Libra. Amazon hasno plansto take on the big banks. E&Y says dead Quadriga founderdipped intoclients’ crypto funds. Western Union CEO says “cashless is classist—and bad for business.” Coinbaserebuffs zero-day attack, “burn[s] down attacker’s infrastructure.” Israeli busted for mass Bitfinex hack tells court “I’m a good boy.” Hey Facebook, the Senate Bank Committeewould like to talk to you about Libraon July 16. AndMaxine will see youthe next day.
3. BALANCING THE LEDGERA personal highlight of Brainstorm Finance was hosting what Robert called “crypto firepower”—DCG’s Barry Silbert, Circle’s Jeremy Allaire and Clovyr’s Amber Baldet—on the same panel. Needless to say,a lively chat ensued. Bonus tidbit: at the outset, I asked the room if they would invest their last $10,000 in Bitcoin or gold—the poll was about a 50-50 split.
4. BUBBLE-O-METER22 yearsBitcoin is going up, up, up of late. But despite crossing the $11,000 mark, it has much more ground to cover before it reaches its all-time 2017 high of nearly $20,000. This seems a good time, then, to dig out arecent surveyby a UBS analyst of other spectacular bubbles (i.e. the NASDAQ in 2000, oil in 2008) and the path from trough to recovery. In the worst case—the Dow Jones crash of 1929—the road back took 22 years. Here’s betting we’ll see $20K Bitcoin before the year 2039.
5. MEMES AND MUMBLESGold is for dinosaurs?Maybe. But the gold bugs had the retort of the week to crypto kingpin Barry Silbert and others who areurging investorsto drop the yellow metal in favor of Bitcoin. Check out thisclever tweet, which uses a chart of gold’s recent uptick to draw a very happy brontosaurus:Your move, Barry. |
Price Analysis 24/06: BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, TRX, ADA
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by theHitBTCexchange.
The recent rally in bitcoin has turned around sentiment completely. Analysts are projecting a rally to new lifetime highs within the end of this year. Bitcoin Knowledge podcast host Trace Mayer has a target objective of$21,000based on his analysis.
That would entail a move of about 78.5% from the current levels. Though this number looks easily achievable, especially after the sharp up-move from the lows, as the price moves higher, we anticipate greater supply to hit the market. The people stuck at higher levels from the previous bull market will try to bail out of their positions and the traders who bought at lower levels will book profits. Hence, we expect a correction or consolidation in the markets soon.
The number of people searching google for bitcoin hasincreased. However, the number is waybelowthe peak hit during the previous bull market. This shows that people are beginning to notice it again but there is still noeuphoriaaround it, which is a positive sign for the long term.
Bitcoin (BTC) has been holding near $11,000 for the past two days, which is a positive sign. This shows that the bulls expect the rally to continue, hence, they are not booking profits in a hurry. If the price stays above the resistance line of the channel, we anticipate the uptrend to resume within a couple of days. Currently, both the moving averages are trending up and the RSI is in overbought territory, which suggests that bulls are in command.
However, if the price dips back into the channel, the pullback can reach the 20-day EMA, which is a critical support. On a bounce off the 20-day EMA, we anticipate the bulls to again try to propel the price towards its target objective of $12,000.
TheBTC/USDpair will lose momentum if it drops below the 20-day EMA and the trend will weaken on a breakdown of the 50-day SMA. A breakdown of $7,413.46 will signal a deeper correction.
Ether (ETH) came close to its target objective of $335 on June 22 and 23 but the bulls could not sustain the rise above $322.06, which shows profit booking at higher levels. However, the positive thing is that the cryptocurrency has not given up much ground. A consolidation between $280 and $322.06 indicates strength and increases the probability of a breakout above $322.06.
If theETH/USDpair closes (UTC time frame) above $322.06, it will complete a rounding bottom pattern that has a target objective of $563.48. However, we expect the pair to face stiff resistance near $480.
Contrary to our assumption, if the pair fails to sustain above $322.06, it can drop to $280. The 20-day EMA is also located close to this level, hence, it is likely to act as a strong support, but if the support cracks, the cryptocurrency will lose momentum.
Ripple (XRP) is retesting the breakout level of the symmetrical triangle. The previous resistance should now act as a strong support. If the price rebounds off this support, the bulls will again try to propel the price to $0.57259 and above it to $0.6250. Both the moving averages are sloping up and the RSI is in positive territory, which suggests that the bulls have the upper hand.
Conversely, if theXRP/USDpair slips back into the triangle and breaks down of the 20-day EMA, it will signal weakness. Its next support is the 50-day SMA, below which a drop to $0.37835 is probable. For now, traders can retain the stop loss on thelongposition at $0.41. We will suggest to trail stops higher as the price moves northwards.
Though Litecoin (LTC) closed above $140.3450 on June 22, it could not sustain the higher levels and quickly gave back its gains. Currently, the bulls are trying to hold it above the ascending channel. The previous resistance line of the channel should now work as a strong support. If the price rebounds off this support, the bulls will again try to push it towards its target objective of $158.91 and above it $184.7949.
If the bulls fail to defend the support, theLTC/USDpair will re-enter the channel. It has strong support at the 20-day EMA. If this support holds, the bulls will again try to resume the uptrend, but if the support gives way, a drop to the 50-day SMA is possible. Hence, traders can protect their remaininglongpositions with a stop loss placed just below the 20-day EMA.
Bitcoin Cash (BCH) remains in an uptrend. Both the moving averages are sloping up and the RSI is close to the overbought zone, which shows that the bulls are in command. The price rallied above the immediate resistance of $481.99 on June 22 but turned down from the resistance line of the channel.
If theBCH/USDpair breaks out of the channel, it is likely to pick up momentum and rally to $639 and above it to $889. If the bulls fail to break out of the channel, the pair might dip back to the 20-day EMA. The digital currency will indicate a trend change if it breaks below both the moving averages and the support line of the channel.
WhileEOShas sustained above the breakout level of $6.8299 for the past three days, it is struggling to move up. This shows a lack of demand at higher levels. Currently, it is back at $6.8299, which is an important support. The 20-day EMA is just above this level, hence, we anticipate buyers to defend this support.
A strong rebound from $6.8299 can carry theEOS/USDpair it to the resistance line of the channel. If this level is scaled, the next level to watch is $8.6503. The moving averages are gradually sloping up and the RSI is just above the midpoint, which shows that the bulls have a slight advantage. Traders can retain the stop loss on thelongposition at $6.40.
If the bears sink the pair below $6.8299, a drop to the 50-day SMA and below it at the support line of the channel is probable. If the bulls fail to defend the support line of the channel, the trend will turn negative and the price can plunge to $4.4930.
Binance Coin (BNB) has been consolidating near the highs for the past few days. Though it broke out of the overhead resistance at $38.6463356, it could not sustain it. This shows profit booking at higher levels. Currently, the bulls are attempting to rebound from the 20-day EMA. If successful, we anticipate another attempt to rally to $46.1645899 and above it to $50.
On the other hand, if the bulls fail to ascend the overhead resistance, theBNB/USDpair is likely to drop below the 20-day EMA and consolidate between $28 and $38.6463356 for the next few days. Therefore, traders can protect theirlongpositions with a stop loss placed just below the 20-day EMA. The trend will turn bearish on a breakdown of $28.
The bulls have held the price of Bitcoin SV (BSV) close to the highs, which is a positive sign. It shows a lack of selling near the resistance. The bears have not even been able to drag the price to the 20-day EMA. Both the moving averages are sloping up and the RSI is close to the overbought zone, which shows that bulls clearly have the advantage.
If the price rebounds from the uptrend line and breaks out of $255.620, it will resume the up move that has a price target of $307.789 and above it $340.248. The probability of a breakout is high as long as theBSV/USDpair stays above the 20-day EMA.
However, if the bears sink the price below the 20-day EMA, the momentum will weaken. In such a case, a range-bound action between $175 and $255.620 is likely. The trend will turn down if the price sustains below $175.
Tron (TRX) has again entered the top 10 cryptocurrencies by market capitalization. It has rallied sharply in the past two days and is close to the June 2 high of $0.04156575. If the price breaks out of the overhead resistance, a rally to $0.05218328 is possible.
Both the moving averages are gradually moving up and the RSI is in positive territory, which suggests that bulls have the upper hand. TheTRX/USDpair has started a new uptrend after a long consolidation, hence, we anticipate the up-move to continue for some time. Our bullish view will be invalidated if the price reverses direction from the current levels and breaks down of the critical support of $0.02815521.
Cardano (ADA) again broke out of the overhead resistance at $0.10 on June 23 but failed to sustain the higher levels. However, the positive thing is that it has held above the moving averages for the past few days. This shows buying on dips.
If the bulls break out and sustain theADA/USDpair above $0.10, it will complete a reversal pattern that has a target objective of $0.22466773. The traders can wait for a close (UTC time frame) above $0.10 and buy as suggested in ourearlieranalysis.
Our bullish view will be negated if the price fails to break out and sustain above $0.10. In such a case, it might remain range-bound between $0.076254 and $0.10 for a few days.
Market data is provided by theHitBTCexchange. Charts for analysis are provided byTradingView.
• Price Analysis 22/06: BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, ADA
• BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, ADA: Price Analysis 19/06
• BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, ADA: Price Analysis 17/06
• BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, ADA: Price Analysis 14/06 |
France put on hot weather alert as heatwave reaches Europe
PARIS (AP) — The sunset had an orange glow. So did the extreme weather warning for Paris. Meteorologists placed more than half of France, including around the capital, on alert for high temperatures Monday as a heatwave was expected to spread across continental Europe this week. National weather agency Meteo France predicted the hot weather could produce temperatures of up to 40 degrees Celsius (104 Ft) across the country just as the summer tourist season shifts into high gear. The French weather agency set the heat warning level at orange - the second-highest intensity on its four-level categorization system for potentially dangerous conditions requiring public "vigilance." In Paris, charity organizations patrolled the streets to provide homeless people with water, while local authorities organized air-conditioned public places where people could seek shelter from the heat. French Education Minister Jean-Michel Blanquer, deciding it was too hot to study, ordered national exams taken by students heading to high school postponed from Thursday and Friday to next week. International soccer federation FIFA could face implementing heat precautions at the Women's World Cup, which France is hosting. The precautions include holding cooling breaks during matches and postponing games if the heat is too intense. Women's World Cup matches are scheduled every day this week, except Wednesday and Sunday. Luckily, most were set to be played at night. France introduced a heat watch warning system after a long, deadly heatwave in August 2003. The highest temperatures in more than half a century eventually were estimated to have caused 15,000 heat-related deaths, many of older people left in city apartments and retirement homes without air conditioning. French President Emmanuel Macron said Monday that vigilance was the watchword for the week. "As you know, at times like these, sick people, pregnant women, infants and elderly people are the most vulnerable. So we must be vigilant with them and have prevention measures in place in order to intervene as quickly as possible," Macron said. Story continues French Health Minister Agnes Buzyn said Monday that "everything is ready" in retirement homes, hospitals and transportation systems. "Yet when people are fragile, even when everything is organized, there's always a higher mortality rate," she warned. Meteorologists said hot winds from the Sahara Desert brought the scorching weather to Europe. Similar heat is expected in Belgium, Switzerland and Germany. In Germany, temperatures above 40 degrees C are possible in some places on Wednesday, topping the country's previous June record of 38.2 degrees Celsius (nearly 100.8 degrees Fahrenheit) set in Frankfurt in 1947. Rescue services urged people to look out for young children, the elderly and those with compromised immune systems who are at particular risk in high temperatures. Parts of northeastern Germany are also at high risk for forest fires. Authorities in the eastern state of Brandenburg, which circles Berlin, say the risk of forest fires is at the highest level in the coming days. Scientists say measurements show that heat waves in Europe are becoming more frequent. Stefan Rahmstorf of the Potsdam Institute for Climate Impact Research said "monthly heat records all over the globe occur five times as often today as they would in a stable climate." "This increase in heat extremes is just as predicted by climate science as a consequence of global warming caused by the increasing greenhouse gases from burning coal, oil and gas," he added. Dim Coumou, a scientist at the Free University of Amsterdam, said melting Arctic sea ice is also affecting atmospheric circulation, which in turn makes extreme heat more likely. "Data analysis shows that the normally eastward travelling summer circulation of the Northern Hemisphere mid-latitudes has slowed down, including the Jet Stream," he said. "This favors the buildup of hot and dry conditions over the continent, sometimes turning a few sunny days into dangerous heat waves." ___ Frank Jordans in Berlin contributed to the story. |
What's an advanced Russian warship doing in Havana harbor?
HAVANA (AP) — One of the Russian navy's most advanced warships entered Havana's harbor Monday and docked at the port used until this month by U.S. cruise lines. Here are some questions and answers about the Admiral Gorshkov's travels through the Caribbean. ___ WHAT IS THE ADMIRAL GORSHKOV? The Admiral Gorshkov entered service last year. It is one of the Russian navy's most advanced warships and is armed with cruise missiles, air defense systems and other weapons. The frigate is based at the Arctic port of Severomorsk and is part of Russia's Northern Fleet. It's the first ship in a new class of frigates intended to replace aging Soviet-era destroyers to project power far away from Russian shores. It is accompanied by the multifunctional logistics vessel Elbrus, the medium sea tanker Kama and the rescue tug Nikolai Chiker, the Russian navy says. ___ WHAT IS THE SHIP DOING IN THE CARIBBEAN? The navy says the Admiral Gorshkov crossed through the Panama Canal into the Caribbean Sea on or around June 18. The naval group has covered a distance of over 28,000 nautical miles since leaving Severomorsk in February, with stops in China, Djibouti, Sri Lanka and Colombia, the navy says. It says the ships are scheduled to make calls at several Caribbean ports, without specifying which. The naval group was greeted with a 21-gun salute from Cuban forces stationed at the entrance to the Bay of Havana. The Gorshkov responded with its own salute. Russia has not provided details about the purpose of its trip, but the Kremlin has moved to bolster Russia's military capability amid tensions with the West following the annexation of Crimea in 2014. The Russian armed forces have received hundreds of new warplanes and dozens of warships in recent years as part of a sweeping military modernization program that allowed Moscow to project power abroad. As the U.S.-Russian relations have sunk to the lowest levels since the Cold War, Moscow has been considering further steps to boost its global presence. An air base and a naval facility in Syria are currently Russia's only military outposts outside the former Soviet Union but Russian military officials have talked repeatedly about plans to negotiate deals for Russian warships and aircraft to use foreign ports and air bases. Story continues ___ WHAT MESSAGE IS RUSSIA SENDING WITH THE ADMIRAL GORSHKOV? Russian ships have become an occasional presence in Havana over the last decade. In 2008, after a visit by then Russian President Dmitry Medvedev, a group of Russian ships entered Cuban waters in what Cuban media described as the first such visit since 1991. Another group visited the southern city Cienfuegos in 2010, reportedly with a cargo of wheat. Others visited in 2013 and in 2014. In January 2015, the reconnaissance and communications ship Viktor Leonov arrived unannounced in Havana a day before the start of discussions between U.S. and Cuban officials on the reopening of diplomatic relations. The Viktor Leonov returned again in March 2018. All of the Russian naval missions to Cuba have been seen as a projection of military power close to U.S. shores, although neither Cuba nor Russian have described them as anything other than routine. Early during his presidency, Russian leader Vladimir Putin ordered the military to shut a Soviet-era electronic surveillance outpost in Cuba and a naval base in Vietnam as he sought to warm ties with the United States. Amid tensions with the U.S., Russian military officials talked about the possibility of reinstating a presence on Cuba and in Vietnam. Russian warships and aircraft have periodically made forays into the Caribbean. In a show of power, a pair of Russian nuclear-capable Tu-160 strategic bombers visited Venezuela in December in what the Russian military described as a training mission. The deployment came before the latest crisis in Venezuela. Russia also sent Tu-160s and a missile cruiser to visit Venezuela in 2008 amid tensions with the U.S. after Russia's brief war with Georgia. A pair of Tu-160s also visited Venezuela in 2013. It is not publicly known if the Admiral Gorshkov will visit Venezuela. ___ WHAT DOES THE RUSSIAN PRESENCE MEAN FOR CUBA? Russians were once the most important group of foreigners in Cuba, with many thousands of Soviet workers and advisers collaborating on projects in fields ranging from agricultural production to military defense. That ended with the fall of the Soviet Union, which saw the end of the Soviet and Russian presence and the start of a grueling depression in Cuba known as the "Special Period." That period ended with the start of Venezuelan aid around 2000. Cuba also somewhat diversified its economy by attracting Latin American, European and Asian investment, and tourism primarily from Canada, Europe and the U.S. U.S. tourism surged in 2015 and 2016 as the Obama administration loosed restrictions on travel to Cuba as part of the opening with the communist government. That opening included allowing cruise ships. But the Trump administration has been trying to cut off income to Cuba and reduce the number of travelers to the island. The latest blow was ending cruise ship travel to the island, a measure that went into effect this month. In what some Cubans saw as a potent symbol of changing times, the Admiral Gorshkov is moored at the cruise terminal where ships from cruise lines like Carnival and Norwegian loomed over Old Havana as recently as June 6. ___ Associated Press writers Michael Weissenstein and Andrea Rodriguez reported this story in Havana and AP writer Vladimir Isachenkov reported from Moscow. |
Canada Proceeds With British Columbia Tanker Ban
Bill C-48, the Oil Tanker Moratorium Act, was signed into law on June 21 after acontentious approval processin the Canadian Senate. It prohibits tankers transporting more than 12,500 metric tons of crude or persistent oils to or from ports and other facilities north of Vancouver Island to the Alaskan border.
It fulfills "a long-standing objective of protecting the pristine north coast of British Columbia" and "conserves the unique ecological features of this region and responds to the wishes of coastal Indigenous communities," Transport Minister Marc Garneau said in a statement.
The ban has few immediate implications, since the port of Port of Vancouver lies just to the south of the exclusion zone. But it precludes the development of other west coast ports, such as Prince Rupert, as oil export hubs for western Canada's oil sands.
Jason Kenney, the premier of Alberta, vowed to make a legal challenge to the tanker ban, calling it a "prejudicial attack on Alberta." He also said he would fight another bill, C-69, which passent the Senate on June 20. It would change the environmental assessment of large energy projects. Kenney and other critics argue that it would make it harder to build additional pipelines.
"The passage of these two bills not only undermines Canada's economy, but also the Canadian federation," Kenney said.
C-69 would not not affect theforthcoming expansion of the Trans Mountain pipeline(TMX), re-approved by Prime Minister Justin Trudeau's cabinet on June 18. It will triple the amount of oil flowing from Alberta to British Columbia.
Asia as a destination for Canadian oil
The vast majority of Canada's oil exports go to the United States. But Asia is emerging as a destination. China bought a record6.56 million barrels of Canadian crudein 2018, though it has slowed significantly in 2018.
Opponents of the tanker ban have pointed to Prince Rupert as an ideal site for shipping oil to Asia. Vessels from Prince Rupert can reach Shanghai up to 36 hours earlier than from Vancouver.
Still, one of the barriers to getting more oil to Asia is the absence of refineries to process the bitumen produced in Canada's oil sands.
The tanker ban will likely loom in October's federal elections. A conservative victory would likely lead to its reversal, along with other Trudeau environmental legislation such as the carbon tax.
Image Sourced From Pixabay
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Is Aveo Group (ASX:AOG) Potentially Undervalued?
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Aveo Group (ASX:AOG), which is in the real estate business, and is based in Australia, received a lot of attention from a substantial price movement on the ASX over the last few months, increasing to A$2.16 at one point, and dropping to the lows of A$1.86. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Aveo Group's current trading price of A$1.97 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Aveo Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Aveo Group
The stock seems fairly valued at the moment according to my relative valuation model. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 6.69x is currently trading slightly below its industry peers’ ratio of 11.4x, which means if you buy Aveo Group today, you’d be paying a reasonable price for it. And if you believe that Aveo Group should be trading at this level in the long run, then there’s not much of an upside to gain from mispricing. In addition to this, it seems like Aveo Group’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Aveo Group, at least in the near future.
Are you a shareholder?Currently, AOG appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on AOG, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping tabs on AOG for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on AOG should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Aveo Group. You can find everything you need to know about Aveo Group inthe latest infographic research report. If you are no longer interested in Aveo Group, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
U.S. tariffs on China-made consumer tech goods seen cutting sales, delaying upgrades
By David Lawder
WASHINGTON (Reuters) - U.S. consumers will delay or forgo technology upgrades if President Donald Trump imposes a new round of 25% tariffs on Chinese goods, slowing the U.S. innovation engine, technology industry executives said on Monday.
Trump's administration is preparing to levy tariffs on an additional $300 billion worth of Chinese imports after a public comment period ends on July 2 if the U.S. and Chinese presidents cannot relaunch talks to end their trade war.
The two countries have been at odds since July 2018 over a host of U.S. demands that Beijing adopt policy changes that would better protect American intellectual property and make China’s market more accessible to U.S. companies.
Consumer technology products, including cellphones, laptop and tablet computers, smart speakers and video gaming consoles, would make up $167 billion of that $300 billion total, or more than half the target list, said Sage Chandler, vice president of international trade for the Consumer Technology Association.
Chandler told a hearing on the tariffs hosted by the U.S. Trade Representative's office that imposing the tariffs would raise the retail price of cellphones by an average of $70, while the price of laptop computers would rise by $120 and video game consoles by $56.
"A lot of consumers will look at that and say: 'I'll just wait for the next generation.' That's a lot of money for the average consumer," Chandler told Reuters.
Chandler, whose association represents major tech groups including Apple Inc, Facebook Inc, Alphabet Inc's Google and Intel Corp, told the hearing the proposed tariffs would extend a ripple effect that would spread through the U.S. economy.
"Because technology is now the backbone of so many other industries - from agriculture to manufacturing - taxes on technology hit far beyond the technology industry," Chandler said.
Win Cramer, founder and chief executive of JLab Audio, a California-based maker of Bluetooth wireless headphones, said he added eight employees after the company's products were spared from the previous round of tariffs. But Cramer said he may have to lay off some of those people, as a 25 percent tariff would shrink sales.
"The proposed tariffs on products that make up 80 percent of our business would be catastrophic. We would be forced to lay off employees and raise prices to consumers," he said. "The factory jobs that build our products never existed in America."
Other company executives from industries ranging from food equipment to fashion products repeated a refrain from five days of hearings last week - that they relied heavily on China for production and it would be extremely difficult and costly to shift their supply chains to other countries, taking two to three years to do so.
Christine Robins, chief executive of Georgia-based gas barbecue grill maker Char-Broil LLC, said the tariffs would force the company to raise prices, increasing the risk that large retailers would try to cut costs by contracting directly with Chinese factories for private-label grills and "squeeze out" established U.S. brands such as Char-Broil.
(Reporting by David Lawder; Additional reporting by Jonas Ekblom; Editing by Peter Cooney) |
Georgia's ruling party announces electoral changes
TBILISI, Georgia (AP) — The leader of Georgia's ruling party said Monday that the ex-Soviet nation will hold the next parliamentary election based entirely on a proportionate system, fulfilling a key demand of anti-government protesters. The statement from Bidzina Ivanishvili, the founder of the Georgian Dream party, followed four days of protests in the capital. Thousands of demonstrators have rallied in front of parliament, demanding changes in the electoral law and the ouster of the interior minister whom they blame for a violent dispersal of a rally Thursday. Throngs of demonstrators tried to storm parliament that day, angered by a Russian lawmaker taking the speaker's seat during an international meeting of lawmakers. The protest reflected simmering anger against Russia, which routed Georgia in a 2008 war and maintains a military presence in Georgia's two breakaway provinces of Abkhazia and South Ossetia. The protesters consider Ivanishvili, Georgia's richest man who made his fortune in Russia, a conduit of Moscow's influence and see the ruling party as overly friendly to Russian interests. Unfazed by Ivanishvili's announcement, a motorcade of protesters drove across the capital Monday to the Interior Ministry headquarters to push for the minister's resignation. Thousands of protesters gathered in front of the parliament building in the evening for the fifth consecutive night of demonstrations, calling for the interior minister to step down and pressing other demands. The protests have marked the largest outpouring of anger against Georgian Dream since it took power in 2012. Officials said at least 240 people were injured when riot police used tear gas and water cannons and fired rubber bullets to disperse the protesters. More than 300 demonstrators have been arrested. Demonstrators have returned to parliament for daily rallies, demanding the release of those detained, the ouster of the nation's interior minister and changes in the electoral law to have legislators chosen fully proportionally rather than the current mix of party-list and single-mandate representatives. The opposition believes that single-mandate races favor the ruling party. Story continues Ivanishvili, in his first public appearance since the crisis erupted, said Georgian Dream has agreed to change the election law earlier than planned and to hold next year's parliamentary election based on a fully proportional system. He also announced that the ruling party offered to drop the threshold of 5% of the vote for parties to get represented. "We are seeing today that the society wants changes," Ivanishvili said. "Our initiative opens the way for large-scale political changes." Later Monday, some demonstrators said they were unsatisfied by Ivanishvili's offer to change the electoral code. Dropping the 5% barrier means "representatives of small parties that receive material aid from Russia can go to parliament. The devil is in the details, and it is very dangerous," protester Irakli Sikharulidze said. Moscow has responded to anti-Russian protests by ordering a ban on Russian flights to Georgia starting July 8. Russia's transportation ministry also banned Georgian airlines from flying to Russia, citing their debts and safety issues. Russian President Vladimir Putin's spokesman, Dmitry Peskov, said Monday the flight ban reflected concerns about the safety of Russian travelers amid what he described as "Russophobic hysteria" in Georgia. He told reporters that the ban could be lifted after the tensions abate. The flight ban deals a serious economic blow to the Caucasus nation, which has annually hosted more than 1 million Russian tourists, attracted by its scenic mountains, lush sea coast and the renowned wine culture. It echoes bans that Russia imposed in 2006 on flights and imports of Georgian wine and mineral water as tensions rose between the countries. Air connections were restored in 2010 and Russia lifted the wine import ban in 2013. On Monday, the Russian consumer regulator Rospotrebnadzor hinted at a possible new ban, saying that it has registered a steady decline in the quality of imported Georgian wine. In the past, Russia often cited sanitary reasons for food imports bans widely seen as politically driven. ___ Vladimir Isachenkov in Moscow contributed to this report. |
Bitcoin Breaks $10,000: Here's Why The World's Most Popular Cryptocurrency Could Surge to New All-Time Highs
Like a phoenix rising from the ashes, Bitcoin has broken out of its bear-market slump in a big way.
After falling more than 80% from the highs it reached in December 2017, the world's most valuable cryptocurrency has rallied back sharply in recent months. From its lows near $3,000 in December 2018, Bitcoin has clawed back nearly half of its losses and is once again trading above $10,000.
Skeptics would argue that Bitcoin's price, like those of many cryptocurrencies, is manipulated. Research from Bitwise Asset Management supports this view. A staggering 95% of Bitcoin trading volume is fraudulent, according to a recentstudyby the blockchain-focused investment firm.
Moreover, many crypto industry watchers believe that Bitcoin's price is being artificially inflated by Tether, the controversial stablecoin issuer that's under investigation by the New York Attorney General's office for allegations of possible fraud. With Tether issuance coinciding closely with Bitcoin's recent gains, it's understandable that many bears are questioning whether the cryptocurrency's price appreciation is largely fake and due for a serious correction. This is a risk that even ardent Bitcoin bulls should factor into their investment decisions.
But there are some other possible reasons why Bitcoin's price is rallying -- and why it could continue to rise to new highs in the months ahead. Here are three of them.
Image source: Getty Images.
The excitement surroundingFacebook's(NASDAQ: FB)new Libra digital token is likely contributing to Bitcoin's gains. The social media titan announced on June 18 its plans to create a new global currency.
Facebook's blockchain-based digital token is to be called Libra. It's designed to serve as a stable medium of exchange for billions of people around the world. Like Tether, Libra is to follow the model of a stablecoin, a low-volatility cryptocurrency whose value is backed by real assets such as fiat currencies. Yet unlike Tether -- which has admitted that its tokens are onlypartially backedby its cash reserves -- Libra will be backed completely by bank deposits and short-term government securities.
Libra is designed to enable fast and low-fee money transfers on Facebook's network of apps. And thanks to Facebook's thriving base of more than 2 billion users, Libra is expected to quickly become one of the most-used digital currencies.
So how does this benefit Bitcoin, you ask? Well, by introducing the concept of digital currencies to billions of people, Facebook is raising awareness for the cryptocurrency market as a whole. And once people become familiar with purchasing digital currencies like Libra, it's a short step to buying other cryptocurrencies like Bitcoin.
In essence, Libra stands to serve as a major new on-ramp for millions of new crypto users. This increased demand could boost the price of Bitcoin -- and traders are likely already bidding up the cryptocurrency's price in anticipation of Libra's launch.
Whether the catalyst is Facebook's coming Libra launch or something else, signs are mounting that institutional investors are beginning to dip their toes into the crypto waters.
CME Group(NASDAQ: CME)is enjoyingrecord volumesfor its Bitcoinfutures contracts-- binding agreements that allow people to make bets on whether the cryptocurrency's price will rise or fall over a certain period of time. These contracts also help investors hedge their positions, making them a popular tool among professional investors.
Additionally, Fidelity Investments, which manages more than $7 trillion in assets, is gearing up to offer Bitcoin trading services to its institutional customers, according toBloomberg. A recentsurveyby Fidelity showed that 22% of institutional investors already have some exposure to digital assets, while 40% say they are open to investing in the asset class over the next five years. Furthermore, 47% of the more than 400 institutional investors surveyed -- including hedge funds, family offices, pension funds, university endowments, and financial advisors -- view digital assets as having a place in their investment portfolios.
Institutional investors manage trillions of dollars' worth of capital. If even just a tiny fraction of these assets begins to flow into the crypto markets, the price of Bitcoin and other cryptocurrencies could soar.
The crypto world lives on hope and is fueled by excitement. That means new highs can beget more new highs, as FOMO (fear of missing out) drives more investors into the marketplace.
In this regard, $10,000 is a key psychological threshold for investors. With Bitcoin breaking back above this price in recent days, news headlines (like the one for this article!) will be flashing onto investors' screens to mark the occasion. Bitcoin will once again be a key topic on financial media shows, andastronomical price predictionswill again be passed around.
All of this helps to fuel Bitcoin's fire. These factors could drive the popular cryptocurrency to new highs above $20,000 in the coming months -- or even days.
That is, of course, if it doesn't crash before then.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors.Joe Tenebrusohas no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool owns shares of and recommends CME Group and Facebook. The Motley Fool hasno position in any of cryptocurrencies mentioned.The Motley Fool has adisclosure policy. |
China wins when US focuses on short-term profits: telecom mogul
U.S. companies have been using Chinese firms to build inexpensive telecommunications equipment for more than five decades and the long-term implications have made the U.S. impotent in the eyes of telecom mogul David McCourt.
“We don’t even have a real telecom manufacturer for cellular equipment in the United States,” McCourt toldYahoo Finance’s On the Move. McCourt is not a “Trump fan” but understands the Trump administration’s strategy. “We’ve been behind in our policy for trade, industrial advantage and national security and now all three of them are coming home to roost. Now we got a big mess on our hands.”
“I’ve, been in the telecom business for a long time and we’ve been using China for 50 years to manufacture everything,” said McCourt, who has “impeccable credentials as a telecoms revolutionary” according toThe Economist, which traced his rise in the early 1980s as a telephone and cable TV mogul following deregulation of both industries by Congress. Today, McCourt is the founder, chairman and chief executive of Granahan McCourt, which according to toThe Irish Timesis “a private investment firm specializing in telecoms and media.”
McCourt is now focused on the impact of the U.S.-China trade war on the $250 billion telecom infrastructure market in the U.S. Some of the U.S.’s claims against China, like the theft of intellectual property, are legitimate issues, according to McCourt.
“Most people who study the issue would say that they (China) also don’t respect IP the way American companies do. So that gives you a big advantage if you don’t have to pay for the R&D right?” he said.
McCourt is critical of U.S. policies that failed to address China’s surge to telecom manufacturing dominance and U.S. firms that turned a blind eye to their own downfall.
“Our policy in the telecom area was short-term profits. And a lot of companies were merged and sold, and next thing you know, we don’t have a telecom cellular manufacturing company to speak of in the U.S.,” he said.
For example, telecom giant Motorola sold its telecom infrastructure business to Nokia in 2010 and its cellphone manufacturing business to Google which eventually sold it to China’s Lenovo in 2014.
“We’ve known for half a century that cellular was going to be important infrastructure in our country,” said McCourt. “And how did we end up in a situation where we don’t have a manufacturer? It’s crazy.”
Trump is expected to meet with Chinese President Xi Jingping during the G20 meeting in Osaka, Japan later this week. Chinese trade negotiators are publicly stating the U.S, must be willing to compromise. Chinese Vice Minister of Commerce Wang Shouwen was quoted inHong Kong’s South China Morning Postsaying, “We should meet each other halfway, which means that both sides will need to compromise and make concessions, and not just one side.”
In his new book, “Total Rethink: Why Entrepreneurs Should Act Like Revolutionaries,” McCourt explores how “we let the World Trade Organization and UN... become so useless.” Companies, he points out, used to be able to survive with incremental change but McCourt said, “you have to be much, much more aggressive now if you want to get something done.”
It’s a strategy that appears to have worked for China.
Adam Shapiro is co-anchor of Yahoo Finance On the Move.
Read the latest financial and business news from Yahoo Finance
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What Kind Of Investor Owns Most Of Clancy Exploration Limited (ASX:CLY)?
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If you want to know who really controls Clancy Exploration Limited (ASX:CLY), 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. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Clancy Exploration is not a large company by global standards. It has a market capitalization of AU$3.5m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about CLY.
Check out our latest analysis for Clancy Exploration
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.
Since institutions own under 5% of Clancy Exploration, 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. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
Clancy Exploration is not owned by hedge funds. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 a reasonable proportion of Clancy Exploration Limited. Insiders have a AU$1.1m stake in this AU$3.5m business. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling.
The general public, with a 47% stake in the company, will not easily be ignored. 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 15%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Public companies currently own 4.0% of CLY stock. It's hard to say for sure, but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
It's always worth thinking about the different groups who own shares in a company. But to understand Clancy Exploration better, we need to consider many other factors.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Of coursethis may not be the best stock to buy. Therefore, you may wish to see ourfreecollection of interesting prospects boasting favorable financials.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Jameela Jamil Does Not Approve of Kim Kardashian's New Body Makeup Line
Photo credit: Dimitrios Kambouris - Getty Images From Cosmopolitan Jameela Jamil just came for Kim Kardashian's new body foundation line. Jameela said it's not worth the money and that she'd rather focus on building her self-esteem. Okay, I'm starting to think the real "bad place" is being on the receiving end of Jameela Jamil's roast-y tweets . And who knows better than miss Kim Kardashian !? The Good Place actor is known for her passionate advocacy, body positivity, and coming for anyone who tries to make women feel less than, which she often accuses the Kardashians of doing when they promote those "detox teas." Today, Jameela switched it up a bit and instead of attacking those teas, she went in on Kim's new body foundation line and suggested it would just make people feel like they can't embrace their skin. When Jameela saw a video of someone swiping the foundation onto their arms, legs, and chest for some unknown reason, she was basically like, "Hard pass." She added that not only does she think it's impractical, she also thinks it's a waste of money. Here's her tweet, in full: "Hard pass. God damn the work to take it all off before bed so it doesn’t destroy your sheets... I’d rather just make peace with my million stretch marks and eczema. Taking off my mascara is enough of a pain in the arse. Save money and time and give yourself a damn break." A lot of people agreed with Jameela's stance, but some also came to Kim's defense and said that if the makeup makes people feel better about themselves, then what's the issue? And to be fair, Kim shared that while she has learned to not be insecure about her psoriasis , she does still use the foundation to cover it sometimes. Also, body makeup isn't necessarily just to hide things you're insecure about. It could also be useful for people in the modeling and creative fields who need it on set. Hard pass. God damn the work to take it all off before bed so it doesn’t destroy your sheets... I’d rather just make peace with my million stretch marks and eczema. Taking off my mascara is enough of a pain in the arse. Save money and time and give yourself a damn break. ❤️ https://t.co/gGrbiZfH2K - Jameela Jamil 🌈 (@jameelajamil) June 24, 2019 One thing's for sure: It's a good thing we all have free will and get to decide whether or not we want to spend $45 on some body makeup and take the time to apply and remove it! ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne |
Missing Utah college student last seen in a park at 3 a.m.
SALT LAKE CITY (AP) — A University of Utah student missing for over a week was last seen meeting an unknown person at a park at 3 in the morning, authorities said Monday. The Lyft driver who took Mackenzie Lueck from the airport and dropped her off at a park in a Salt Lake City suburb on June 17 told detectives the woman didn't seem in any distress when she met the person, said Salt Lake City assistant police chief Tim Doubt. The chief declined to say if she met a man or a woman and said detectives are trying to find the person. Police have searched the area around the park several times and reviewed surveillance video footage, Doubt said. It is located in North Salt Lake about 20 minutes from Lueck's apartment. Doubt said there is no evidence the 23-year-old woman is in danger but said they are concerned since she's not been heard from. She has not been on social media, has missed classes and wasn't on a planned flight to Los Angeles on Sunday. He acknowledged that sometimes people who are reported missing don't want to talk to family and friends and issued a plea if that's the case for her to reach out to police. "We just want to make sure you are safe and we will respect your wishes," Doubt said. Lueck is a part-time student at the University of Utah in her senior year majoring in kinesiology and pre-nursing, spokesman Chris Nelson said. She has been a student there since 2014, he said. Lueck returned early June 17 to the Salt Lake City airport after going home to California for a funeral, Doubt said. She texted her parents at about 2 a.m. that she had arrived. She was dropped at just about 3 a.m. at the park in North Salt Lake that sits in a popular downtown area nestled between apartment complexes and restaurants. A police station is located up the street and the park is a popular spot for families and community events with two playgrounds, a basketball court, baseball diamond and a large, grassy field. Story continues Police have no reason to doubt the Lyft driver's story and have cleared him as a suspect, Doubt said. The Lyft driver, whose identity has not been revealed, gave other rides after dropping off the woman, he said. Lyft spokeswoman Lauren Alexander said the route the driver took contained no irregularities and ended at the address requested by Lueck. Jacob Wood, who lives in the area, said he frequently brings his children to play in Hatch Park. "It's a relatively safe neighborhood, there's no reason to believe it's not a safe area," he said Monday. Ashley Fine, one of Lueck's friends, told The Salt Lake Tribune that Lueck's phone has been off since last Monday. She didn't show up for her job at a Salt Lake City laboratory or her classes, she said. Fine described Lueck as a dedicated student and said missing classes was not something she did. Lueck's cat and car remain at her house. Her luggage hasn't been located either, Fine said. Lueck's parents reported her missing Thursday. Friends spent the weekend passing out flyers and asking people to spread the word about Lueck's disappearance. They have set up a Facebook page to collect information that may aid police. "We are all worried and looking out for you 24-7, I cannot sleep at night knowing you are out there," said Kennedy Stoner, a friend of Lueck, during a news conference Sunday. "I am constantly thinking of you." ___ Information from: The Salt Lake Tribune, http://www.sltrib.com |
China says US-China trade teams in contact ahead of G-20
BEIJING (AP) — Chinese and U.S. trade negotiators are discussing ways to resolve disputes ahead of a meeting between Presidents Donald Trump and Xi Jinping at the G-20 summit in Japan later this week, a Chinese official said Monday.
The sides were seeking to "consolidate the important consensus reached between the two leaders" in a telephone call last week, Wang Shouwen, a Commerce Ministry vice minister, told reporters. Wang gave no details about specific issues under discussion.
This week's G-20 meeting in Osaka is the first opportunity Trump and Xi have had to thrash out the trade dispute face-to-face since Trump said he was preparing to target the $300 billion in Chinese imports that he hasn't already hit with tariffs, extending them to everything China ships to the United States.
In advance of the Trump-Xi meeting, U.S. Trade Representative Robert Lighthizer spoke by phone Monday with the top Chinese negotiator, Vice Premier Liu He, according to a spokesperson for the Trade Representative's office who did not have further details of the discussions.
Trump has already imposed 25% tariffs on $250 billion in Chinese imports and China has retaliated with tariffs on U.S. goods.
The two sides are in a stalemate after 11 rounds of talks that have failed to overcome U.S. concerns over China's acquisition of American technology and its massive trade surplus. China denies forcing U.S. companies to hand over trade secrets and says the surplus is much smaller than it appears once the trade in services and the value extracted by U.S. companies are taken into account.
Stepping up the pressure on Beijing, the U.S. Commerce Department has effectively barred U.S. companies from selling or transferring technology to Huawei Technologies, the world's biggest maker of network gear, No. 2 smartphone manufacturer and a champion of Chinese industry.
Washington claims Huawei poses a national security threat because it may be beholden to China's ruling Communist Party. However, American officials have presented no evidence of any Huawei equipment serving as intentional conduits for espionage by Beijing.
Huawei's placement on the U.S. government's Entity List is widely seen as intended to persuade resistant U.S. allies in Europe to exclude Huawei equipment from their next-generation wireless networks, known as 5G.
Responding to a question about whether it would be best for all 5G devices sold in the U.S. to have been made outside of China, Chinese foreign ministry spokesman Geng Shuang said Americans seemed to be conjuring up non-existent threats.
"I want to tell individuals in the U.S. that they have been living in a panic made by themselves, and they have reached a state of extreme nervousness in which they even apprehend danger in every sound," Geng said.
Globalization has brought an "unprecedented" level of division of labor across borders and societies, reducing the significance of where products are manufactured and assembled, Geng said.
"Against such a backdrop, any attempt to achieve 'absolute security and controllability' by isolating oneself is nothing but fool's talk," Geng said.
China has responded to U.S. pressure by saying it would issue a list of "unreliable entities" targeting companies that "violated market principles" and cut supplies of components to Chinese businesses for non-commercial reasons.
Beijing has also suggested it might limit exports of rare earths, minerals such as lithium that are used in many products including cellphones, electric vehicles and the batteries that run them.
___
AP Economics Writer Paul Wiseman in Washington contributed to this report. |
'I'm outraged at Boeing:' Why pilots are suing over the 737 Max
Boeing Inc. (BA) is facing a class action from a Canadian pilot claiming the company engaged in an “unprecedented cover-up” with the U.S. Federal Aviation Administration related to the 737 Max that damaged the professional and personal lives of more than 400 Max-certified pilots.
Plaintiffs lawyers say Boeing can expect more pilots to file suit.
The plaintiff and purported class members — pilots employed by an unidentified international airline (“Airline X”) — say they continue to suffer significant lost wages as a result of the worldwide grounding of Boeing’s 737 Max series aircraft, as well as emotional harm.
“I think people do need to appreciate what the two step process was here. When we speak to pilots, initially, they're not talking about money, they're not talking about lost wages. When we spoke to a pilot this morning the first words out of his mouth were, ‘I'm outraged at Boeing,’” Patrick Jones, one of the lawyers for the plaintiffs, told Yahoo Finance.
Max planes were grounded by the FAA on March 13 following the second of two similar crashes that killed all passengers and crew on board. Shortly after takeoff from Jakarta, Indonesia, on October 29, Lion Air Flight 610 crashed into the Java Sea. Ethiopian Airlines Flight 302 crashed shortly after takeoff from Addis Ababa, Ethiopia, on March 10. Both flights involved a controversial flight system, Maneuvering Characteristics Augmentation System (MCAS), suspected of reacting to errant sensor data. Boeing is currently working to re-certify the aircraft for flight.
Joseph Wheeler, another lawyer for the plaintiffs, said pilots’ financial losses differ significantly by airline and by country, due to differences between collective bargaining agreements and pay scale calculations. Some pay scales are linked to actual flight time, while others are not. “It’s that latter portion of the pay on many carriers that pilots will suffer a deficit after the grounding of the Max,” Wheeler said.
Pilot X, for example, claims his wages have been reduced by about $3,500 per month since the planes were grounded. That’s fairly typical of other pilots the suit seeks to represent, according to Jones. Wheeler and Jones expect to file additional class actions on behalf of pilots of additional airlines.
“In some airlines, some of our clients, in actions that we haven't filed yet...there have been layoffs of pilots altogether,” Wheeler said. “So because they're unable to operate the Max, the pilot no longer has a job, or has no longer been able to move to a higher paying job in another country. We've also got clients who are pilots that have had to relocate their home.”
Plaintiffs claim Boeing implemented design flaws by rushing to manufacture the Max after the company learned in 2011 that its competitor Airbus had obtained commitments from customers to purchase a similar-size, fuel-efficient, single-aisle aircraft, the A320neo. The rush and subsequent fallout, the plaintiffs say, gave rise to their claims for strict liability, negligence, breach of warranty, fraudulent misrepresentation and intentional infliction of emotional distress.
One pilot told Jones that “after the initial Lion Air crash he received a bulletin notifying him about the existence of the MCAS, but he didn't receive any instruction on how to manage the MCAS. He still had to fly those planes.”
In an emailed response to Yahoo Finance, a Boeing representative said the company would not comment on the matter.
When asked whether the lead plaintiff or other plaintiffs would comment on the lawsuit, Wheeler said, for now, their identities must be protected.
“Speaking out directly may jeopardize their credibility with Boeing and the Court,” Wheeler said. In addition, pilots may face difficulty in applying for work.
“There are a lot of difficulties for operating pilots with taking this sort of action,” Wheeler said. “Pilots talk to other pilots, airlines talk to airlines, and everyone talks to Boeing. The employers of our clients are customers of Boeing...and this kind of action can be impliedly or purposely us to weed out pilot applicants in jobs, or to cause them issues in employment.”
Plaintiffs also allege in their complaint that the FAA is responsible for harm caused by the Max grounding. However, under the Federal Tort Claims Act, plaintiffs must first seek an administrative remedy before filing a lawsuit against the regulatory body. Jones said his firm plans to file such an action on Monday.
“We've initiated that process so if we don't have a fair resolution by the end of those six months we will be pursuing the FAA in federal court on behalf of pilots,” Jones said.
“I think what we really want to see is change for the better, change for the future on the whole type certification process,” Wheeler said about his clients’ goals in seeking redress from the FAA. “At the end of the day, if [pilots] are not confident in the product then those products shouldn’t be out there.”
Alexis Keenan is a New York-based reporter for Yahoo Finance. She previously produced and reported for CNN and is a former litigation attorney.
Follow Alexis Keenan on Twitter@alexiskweed. |
Meghan Markle Updated Her Engagement Ring: See the Photos
Prince harry Meghan Markle photo call engagement Meghan Markle is wearing a familiar piece with an updated twist. The Duchess of Sussex debuted a brand new eternity ring at the Trooping of the Colour in early June, but eagle-eyed observers missed another addition to her ring finger. Markle’s coveted engagement ring from Prince Harry got an update of its own too. The original thin gold band seemingly appears to have been replaced by a micro-pavé band with the three stones that Prince Harry sourced from Botswana and Princess Diana’s collection all set into the new piece. Markle may have first debuted the update to her engagement ring while stepping out last month to introduce Baby Archie . (Royal superfans were understandably consumed with the first look of the royal baby to notice Markle’s revamped bling.) LONDON, ENGLAND – JUNE 08: Prince Harry, Duke of Sussex and Meghan, Duchess of Sussex ride by carriage down the Mall during Trooping The Colour, the Queen’s annual birthday parade, on June 08, 2019 in London, England. (Photo by Samir Hussein/Samir Hussein/WireImage) meghan markle new eternity ring LONDON, ENGLAND – JUNE 08: Prince Harry, Duke of Sussex and Meghan, Duchess of Sussex ride by carriage down the Mall during Trooping The Colour, the Queen’s annual birthday parade, on June 08, 2019 in London, England. (Photo by Samir Hussein/Samir Hussein/WireImage) Meghan Markle arrives at the Terrance Higgins Trust World AIDS Day charity fair at Nottingham Contemporary on December 1, 2017 in Nottingham, England. Prince Harry and Meghan Markle announced their engagement on Monday 27th November 2017 and will marry at St George’s Chapel, Windsor Castle in May 2018. (Photo by Christopher Furlong/Getty Images) Her updated engagement ring has since been neatly stacked against her wedding band from the royal reserve, as well as her brand new eternity band from Prince Harry. The latter piece was reportedly gifted to mark their one-year wedding anniversary. Markle isn’t the only royal to show off an eternity band. Prince William also reportedly gifted Kate Middleton an eternity ring back in 2013 after the birth of Prince George. Story continues Despite its fresh update, Markle’s engagement ring still holds sentimental value to the couple. Back in 2017, Prince Harry told BBC , “the main stone itself I sourced from Botswana and the little diamonds either side are from my mother’s jewelry collection to make sure that she’s with us on this crazy journey together.” Related Articles Joaquin Phoenix and Rooney Mara Are Engaged Couple’s Proposal Weathers the Storm Right Before Hurricane Barry Hits Photographer’s Post About Cell Phones at Weddings Fuels Unplugged Ceremony Debate |
American Assets Trust Acquires San Diego's La Jolla Commons
American Assets TrustAAT recently enhanced its portfolio with the acquisition of La Jolla Commons in San Diego, CA. The company has used cash on hand and funds from its existing credit facility to pay the purchase price of $525 million, less a seller credit of around $11.5 million.Positioned in the University Town Center submarket, the property includes two trophy office towers, an entitled development parcel as well as two parking structures. Built in 2008 and 2014, respectively, the two office towers comprise a total 724,000 square feet of space.Out of the two towers, the 421,000-square foot tower is fully leased to LPL Financial. The other tower, having approximately 303,000 square feet of space, is around 72% leased and its tenant roster has names like U.S. Bank National Association, Thornton & Baird LLP, among others.The above-mentioned acquisition seems a strategic fit. This is because La Jolla Commons has a variety of high-end destination dining, high-scale retail and entertainment destinations in its proximity. Moreover, it has ready access to San Diego’s main freeways, together with Mid-Coast Trolley line, which is anticipated to be completed soon. Therefore, demand for space at this property is likely to be high.American Assets Trust has an experience of more than 50 years in acquisition, development and management of premier retail, office, and residential properties in the nation. Its diversified asset base help in mitigating the risks associated with a single property type.Additionally, the company’s assets are located in high-barrier-to-entry markets, mainly in Southern California, Northern California, Oregon, Washington and Hawaii. The solid demographics-high population density and household income in its operating markets offer scope for decent growth. Nonetheless, strong competition and choppy retail real estate market are concerns for the company.Currently, American Assets Trust carries a Zacks Rank #3 (Hold). Shares of American Assets Trust have outperformed its industry in the year-to-date period, gaining 18.2%, while the industry increased 13%.
Stocks to ConsiderSome better-ranked stocks from the real-estate space include Duke Realty Corp. DRE, Lamar Advertising Co. LAMR and PS Business Parks, Inc. PSB, each carrying a Zacks Rank of 2 (Buy), at present. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Duke Realty’s Zacks Consensus Estimate for 2019 funds from operations (FFO) per share moved marginally north to $1.41 in the past two months.Lamar’s FFO per share estimates for the current year inched up 0.3% to $5.83 over the past month.PS Business Parks’ Zacks Consensus Estimate for the ongoing year’s FFO per share moved up 1.5% to $6.71 in the past month.Note:Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportLamar Advertising Company (LAMR) : Free Stock Analysis ReportAmerican Assets Trust, Inc. (AAT) : Free Stock Analysis ReportPS Business Parks, Inc. (PSB) : Free Stock Analysis ReportDuke Realty Corporation (DRE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
S&P 500 slips as healthcare drags, investors eye G20 summit
By Stephen Culp
NEW YORK (Reuters) - The S&P 500 edged lower on Monday as losses by healthcare companies overshadowed gains in the technology sector, while investors awaited U.S. President Donald Trump's meeting with Chinese President Xi Jinping at the G20 summit this week.
The Nasdaq slipped but tariff-sensitive industrials, headed up by Boeing Co, led the blue-chip Dow Jones Industrial Average to a nominal advance.
While the bellwether S&P 500 ended the session in the red, it remained within a hair's breadth of its all-time closing high reached last Thursday as markets reacted to a dovish statement from the U.S. Federal Reserve.
Market players hope Trump and Xi will de-escalate the trade war that has been blamed for a global economic slowdown.
"Today's very quiet," said Bruce Monrad, chairman and trustee at Northeast Investors Trust in Boston. "People are digesting the Fed and looking forward to possible outcomes of the G20 and how that could in turn affect the Fed going forward."
A Fed rate cut in July "may be locked and loaded but could be somewhat contingent on what happens at the G20," Monrad added.
The Dow Jones Industrial Average rose 8.41 points, or 0.03%, to 26,727.54, the S&P 500 lost 5.11 points, or 0.17%, to 2,945.35 and the Nasdaq Composite dropped 26.01 points, or 0.32%, to 8,005.70.
Six of the 11 major sectors in the S&P 500 lost ground, with the biggest percentage drop for energy stocks as crude prices fell.
In the latest trade-related squabble, FedEx Corp apologised for mistakenly returning a Huawei phone to its sender, after misrouting packages from the Chinese tech firm last month. The move provoked the ire of Chinese authorities and raised the prospect of FedEx being added to China's "unreliable entities" list. The package delivery firm's shares slid by 2.7%.
Caesars Entertainment Corp jumped 14.5% on news that rival Eldorado Resorts Inc had agreed to buy the casino operator for $8.5 billion. Eldorado dropped 10.6%.
United Technologies Corp advanced 1.1% after Cowen & Co upgraded it to "outperform" from "market perform."
Celgene Corp slipped 5.5% after Bristol-Myers Squibb Co announced that its planned $74 billion deal to buy the drugmaker was expected to close at the end of 2019 or beginning 2020, later than expected. Bristol-Myers fell 7.4%.
Declining issues outnumbered advancing ones on the NYSE by a 1.44-to-1 ratio; on Nasdaq, a 2.27-to-1 ratio favoured decliners.
The S&P 500 posted 35 new 52-week highs and 5 new lows; the Nasdaq Composite recorded 42 new highs and 82 new lows.
Volume on U.S. exchanges was 6.31 billion shares, compared to the 7.05 billion average over the last 20 trading days.
(Reporting by Stephen Culp; Editing by David Gregorio) |
Broadridge, Preqin Partner to Aid Institutional Asset Managers
Broadridge Financial Solutions, Inc.BR recently announced that it has inked a deal with Preqin, a U.K.-based provider of financial data and information to the alternative assets market.
Preqin’s data comprises intelligence on roughly $10.42 trillion of assets in private equity, venture capital, hedge funds, real estate, infrastructure, private debt and natural resources.
We observe that shares of Broadridge have gained 33.8% so far this year compared with 29.7% and 16.5% rally of the industry and Zacks S&P 500 composite, respectively.
Deal Details & Benefits
The deal will see the integration of Preqin's private market data into Broadridge’s distribution data and analytics platform that offers global mutual fund and ETF distribution data to help asset managers manage asset flows, measure market share, identify opportunities and benchmark sales performance across global markets.
The new offering will feature comprehensive asset and flow data across all global funds, and an expanded institutional view encompassing detailed private fund market analytics, along with segregated accounts, CITs and other pooled products by institutional channels and client types.
It will offer a unified and holistic view of public and private global capital allocations and asset flows, enabling institutional investors and asset managers to improve decision making about their portfolios.
Considering the three-fold growth rate of alternative assets since 2008, we believe the latest deal is a strategic business move on Broadridge's part.
Frank Polefrone, Broadridge's head of global insights, stated, "As institutional asset owners increase allocations to alternative products, asset managers are interested in analyzing capital flows for both traditional and alternative asset classes across channels.”
We believe that the move will help Broadridge strengthen the Investor Communication Solutions segment, which offers Bank/Broker-Dealer Investor Communication, Customer Communication, Advisor, Corporate Issuer, and Mutual Fund and Retirement Solutions. Third-quarter fiscal 2019 revenues from the segment increased 19% from the year-ago level to $1 billion.
Zacks Rank & Stocks to Consider
Broadridge currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few top-ranked stocks in the broader Zacks Business Services sector are Navigant Consulting NCI, NV5 Global NVEE and FLEETCOR Technologies FLT. While Navigant Consulting sports a Zacks Rank #1, both FLEETCOR and NV5 Global carry a Zacks Rank #2 (Buy).
Long-term expected EPS (three to five years) growth rate for Navigant Consulting, FLEETCOR and NV5 Global is 13.5%, 15.4% and 20%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFleetCor Technologies, Inc. (FLT) : Free Stock Analysis ReportNavigant Consulting, Inc. (NCI) : Free Stock Analysis ReportNV5 Global, Inc. (NVEE) : Free Stock Analysis ReportBroadridge Financial Solutions, Inc. (BR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
UPDATE 1-Kushner says Israeli-Palestinian deal will not adhere to Arab Peace Initiative
(Adds comments, context)
DOHA, June 25 (Reuters) - Reaching an Israeli-Palestinian deal along the lines of the Arab peace initiative will not be possible, requiring instead a stance between that and the Israeli position, White House senior adviser Jared Kushner said in an interview with Al Jazeera.
"I think we all have to recognise that if there ever is a deal, it's not going to be along the lines of the Arab peace initiative. It will be somewhere between the Arab peace initiative and between the Israeli position," Kushner told Al Jazeera in an interview that will air on Tuesday.
As part of the Arab Peace Initiative, Arab states led by Saudi Arabia have called for a Palestinian state drawn along borders that pre-date Israel's capture of territory in a 1967 war as well as a capital in east Jerusalem and the right of return for refugees, points rejected by Israel.
The comments come ahead of a workshop in Bahrain to showcase the economic portion of Washington's long-awaited Arab-Israeli peace plan, a $50 billion development plan unveiled this week that has faced sharp criticism from Arabs across the region.
The lack of a political solution, which Washington has said would be unveiled later, has prompted rejection not only from Palestinians but in Arab countries with which Israel would seek normal relations.
Though Kushner has said that only the economic portions of the plan will be discussed in Manama, the comments offer a rare glimpse into what the political aspects of the peace plan may entail.
"All of the people I speak to, they talk about the Arab Peace Initiative, and again it was a great effort, but if that was where a deal was going to be made a deal would have been made a long time ago," said Kushner, who is President Donald Trump's son-in-law. (Reporting by Eric Knecht Editing by Leslie Adler) |
Caesars (CZR) Stock Jumps After Agreeing to $8.5 Billion Deal
Caesars Entertainment CZR stock jumped over 15% Monday after news broke that the company agreed to merge with Eldorado Entertainment ERI.
Eldorado will pay about $8.58 billion in cash and stock to buy Caesars. Eldorado said it would pay $12.75 per share, with $8.40 being paid in cash and 0.0899 ERI shares being swapped per CZR share held. After the deal, Eldorado is set to hold 51% of the combined company, with Caesars to own the remaining 49%. This offer marked a 29% premium to CZR closing price of $9.98 on Friday. Overall, Eldorado’s offer is valued at $17.3 billion when taking into consideration Caesar’s debt.
Following the merger announcement, ERI stock fell over 13%. Eldorado, in its press release “identified synergies of $500 million.” These synergies could be part of the reason Eldorado was willing to pay the premium to merge with Caesars. After the merger, the combined company will become the largest U.S. gaming company with approximately 60 facilities across 16 states. The merger will give Reno-based Eldorado a presence in Las Vegas through operations in big-name casinos and resorts such as Caesars Palace, Rio Hotel & Casino, and Harrah’s Las Vegas. Caesars other properties will also add to Eldorado’s already established portfolio of casinos throughout the U.S.
Billionaire investor Carl Icahn, who is one of Caesars largest shareholders with around 18% equity, had been pushing to sell the company over the past few months. With the merger, Icahn got what he was looking for at a very good price considering Caesars’ earlier market value. After the merger is complete, Caesars will retain its name, hoping to capitalize on its value and global brand.
This merger is the newest in a recent string of acquisitions by Eldorado as it looks to grow its brand. Some of the recent acquisitions include the Isle of Capri Casinos for $1.7 billion in May 2017, the operating business of Tropicana Entertainment for $640 million in 2018, and the Grand Victoria Casino for $328 million in 2018.
There is pessimism surrounding the merger from an Eldorado perspective due to the massive amount of debt it is set to take on. VICI Properties VICI is also involved in the deal. The REIT company currently owns a large number of the properties that Caesars leases and operates, such as Caesars Palace in Las Vegas and Caesars Atlantic City. To help finance the deal, VICI, Caesars and Eldorado have agreed to sell Harrah's Resort Atlantic City, Harrah's Laughlin Hotel & Casino, and Harrah's New Orleans Hotel & Casino to VICI. The companies have also restructured current lease agreements between VICI and Caesars
YTD, both stocks have made significant gains. CZR is up 68% and ERI is up 22%.
More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCaesars Entertainment Corporation (CZR) : Free Stock Analysis ReportEldorado Resorts, Inc. (ERI) : Free Stock Analysis ReportVICI Properties Inc. (VICI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Can Best Buy's (BBY) New Blue Strategy Help Drive Growth?
Best Buy, Inc.’s BBY turnaround story, owing to Hubert Jolly’s (the present executive chairman) Renew Blue strategy, is encouraging amid the e-commerce giant Amazon's AMZN dominance in the industry. Following the successful completion of the Renew Blue program, the company launched the “Best Buy 2020: Building the New Blue” strategy.The new plan focuses on the expansion of multi-channel retail business, offering services and solutions to meet customer need. The company’s topmost priority is to explore and pursue growth opportunities, better performance in key areas, cost optimization, and investing for the improvement of its employees as well as systems. Further, the company targets $600 million of cost reduction by 2021.Best Buy has been progressing well with the implementation of its latest strategy by offering smart home devices and expanding the Total Tech Support members to boost customers’ experience. In doing so, it hired in-store experts, who will help customers in selecting smart home products from Vivint and other partners along with offering professional installation and monitoring services.Touted as one of its boldest moves, Best Buy expanded its In-Home Advisor program to core US markets. The program consists of advisors, who guide customers to find out the right technology solutions and provide free in-home consultations.With the growing popularity of home fitness, the company decided to enter this space. It will now offer high-tech NordicTrack running machines, Flywheel bikes and Hydrow running machines. As of now, these products are available in six stores in California, Delaware and New Hampshire. By fiscal 2020, the company intends to expand these offerings to almost 100 stores.This apart, Best Buy acquired GreatCall — a major connected health technology company — to offer unique solutions to aging customers. This deal will benefit Best Buy by providing a recurring revenue channel and ample growth opportunities in the United States. However, we believe that sustained investments in technology and supply chain may also keep the company’s margins under pressure in the short run.Moreover, Best Buy has already made its presence felt in key product categories like 4K TV through partnerships with major vendors such as Sony, Samsung and LG. This move is in sync with its Best Buy 2020 strategy and it enables these vendors to set up stores in Best Buy locations, which in turn will help it improve the shopping experience for consumers. In fact, the company recently extended its partnership with Apple and will now provide repair services for iPhones and MacBooks at all Best Buy’s stores.All said, this new strategy already started showing encouraging results. Notably, the company’s comparable sales grew 1.6% in first-quarter fiscal 2020, with online sales gaining 22.5%. Going forward, positive consumer sentiment, strong online sales, more opportunities in services and cost-containment efforts will continue to boost Best Buy’s profitability.In fact, the company anticipates fiscal 2020 earnings of $5.45-$5.65 per share, suggesting growth from $5.32 reported in fiscal 2019. Management forecasts Enterprise revenues of $42.9-$43.9 billion. It reported Enterprise revenues of $42.9 billion in fiscal 2019.Best Buy’s turnaround has managed to impress investors, which led this Zacks Rank #3 (Hold) stock to gain 40% in the past six months, outperforming the industry’s growth of 32.1%.
Some Better-Ranked Retail Stocks to ConsiderTarget Corp. TGT currently carries a Zacks Rank #2 (Buy). The company has a long-term growth rate of 7.1%. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.TJX Companies TJX has a long-term growth rate of 10.9% and a Zacks Rank #2 at present.More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportBest Buy Co., Inc. (BBY) : Free Stock Analysis ReportTarget Corporation (TGT) : Free Stock Analysis ReportThe TJX Companies, Inc. (TJX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Trump signs order imposing sanctions on Iran supreme leader
WASHINGTON (AP) President Donald Trump signed an executive order on Monday targeting Iran's supreme leader and his associates with financial sanctions, the latest action the U.S. has taken to discourage Tehran from developing nuclear weapons and supporting militant groups. The sanctions follow Iran's downing of a more than $100 million U.S. surveillance drone over the Strait of Hormuz. Trump pulled back from the brink of retaliatory military strikes on Iran last week but is continuing his pressure campaign against the nation. "These measures represent a strong and proportionate response to Iran's increasingly provocative actions," Trump told reporters in the Oval Office. "We will continue to increase pressure on Tehran until the regime abandons its dangerous activities and its aspirations, including the pursuit of nuclear weapons, increased enrichment of uranium, development of ballistic missiles, engagement and support for terrorism, fueling of foreign conflicts and belligerent acts directed against the United States and its allies." Trump pulled the U.S. out of the nuclear pact that world powers made with Tehran in 2015. Other nations stayed in the deal, which eased sanctions on Iran in exchange for curbing its nuclear program. Trump called it a one-sided deal in Iran's favor and reimposed sanctions but says he wants to negotiate a different deal. Iran, which calls the sanctions "economic terrorism," has shown no interest in negotiating. Iran's U.N. ambassador Majid Takht Ravanchi said U.S.-Iran talks are impossible under current conditions, adding, "You cannot start a dialogue with someone who is threatening, who is intimidating you." Ravanchi, who spoke with reporters while the U.N. Security Council held closed consultations on the rising tensions between the U.S. and Iran, said Washington should stop its military activity in the region, withdraw its naval forces and end what he called "economic warfare" against the Iranian people. Story continues The latest round of sanctions denies Supreme Leader Ali Khamenei and senior military figures access to financial resources and blocks their access to any financial assets they have under U.S. jurisdiction. "For people who say these are just symbolic, that's not the case at all," Treasury Secretary Steven Mnuchin said. "We've literally locked up tens and tens of billions of dollars." Trump said the new sanctions are not only in response to the downing of the drone. The U.S. has blamed Iran for attacks on two oil tankers this month near the Strait of Hormuz. Citing those episodes and intelligence about other Iranian threats, the U.S. has sent an aircraft carrier to the Persian Gulf region and deployed additional troops alongside the tens of thousands already there. All this has raised fears that a miscalculation or further rise in tensions could push the U.S. and Iran into an open conflict 40 years after Tehran's Islamic Revolution. "The supreme leader of Iran is the one who is ultimately responsible for the hostile conduct of the regime," Trump said. "He is respected within his country. He also oversees the regime's most brutal instrument including the Islamic Revolutionary Guard." Iran's naval commander has warned that Iranian forces would not hesitate to act again and shoot down more U.S. surveillance drones that violate Iranian airspace. The U.S. said the drone was flying over international waters. "We confidently say that the crushing response can always be repeated, and the enemy knows it," Rear Adm. Hossein Khanzadi Khanzadi was quoted as saying by the semi-official Tasnim news agency. The sanctions came as Secretary of State Mike Pompeo is holding talks in the Middle East with officials in the United Arab Emirates and Saudi Arabia about countering the military threat from Iran by building a broad, global coalition that includes Asian and European countries. Pompeo is likely to face a tough sell in Europe and Asia, particularly from those nations still committed to the 2015 nuclear deal. Germany, France and Britain, as well as Russia and China, remain part of the nuclear accord that lifted sanctions on Iran in exchange for set limits on its uranium enrichment levels. The three European countries have sent envoys to Tehran recently, signaling they remain committed to diplomacy and dialogue. They cautioned against moves that can lead to conflict between the U.S. and Iran. ___ AP Diplomatic Writer Matthew Lee contributed to this report. |
Ericsson (ERIC) Dips More Than Broader Markets: What You Should Know
Ericsson (ERIC) closed the most recent trading day at $9.88, moving -0.9% from the previous trading session. This change lagged the S&P 500's 0.17% loss on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.32%.
Coming into today, shares of the telecommunications equipment provider had gained 2.57% in the past month. In that same time, the Computer and Technology sector gained 2.43%, while the S&P 500 gained 3.07%.
Investors will be hoping for strength from ERIC as it approaches its next earnings release, which is expected to be July 17, 2019. On that day, ERIC is projected to report earnings of $0.08 per share, which would represent year-over-year growth of 900%. Our most recent consensus estimate is calling for quarterly revenue of $5.75 billion, down 0.08% from the year-ago period.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.38 per share and revenue of $23.63 billion. These results would represent year-over-year changes of +1166.67% and -3.85%, respectively.
It is also important to note the recent changes to analyst estimates for ERIC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ERIC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ERIC is currently trading at a Forward P/E ratio of 26.07. For comparison, its industry has an average Forward P/E of 25.14, which means ERIC is trading at a premium to the group.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportEricsson (ERIC) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
AMAG's Vyleesi Gets FDA NOD for Women with Low Sexual Desire
AMAG Pharmaceuticals, Inc. AMAG announced that the FDA has approved Vyleesi (bremelanotide injection) to treat acquired, generalized hypoactive sexual desire disorder (HSDD) in premenopausal women. The drug is an injection to be taken before sex and is the first treatment for this patient population. Share price of the company rose about 4% following the news. The FDA approval is based on data from about 1,200 women in two phase 3 studies (RECONNECT). In both the studies, Vyleesi met the pre specified co-primary efficacy endpoints of improvement in desire and reductions in distress as measured by validated patient-reported outcome instruments. Upon completion of the study, women had the option to continue in a voluntary open-label safety extension study for an additional 12 months. Nearly 80% percent of patients who completed the phase 3 studies elected to remain in the open-label portion of the study, wherein all these patients received Vyleesi. In March 2018, AMAG had submitted a new drug application for Vyleesi to treat HSDD and the application was accepted by the FDA in June 2018. Shares of the company have decreased 41% year to date against the industry’s 6.7% growth. Vyleesi will be commercially available this September. AMAG in-licensed Vyleesi from Palatin Technologies, Inc. in February 2017. Palatin will get $60 million from AMAG for the approval plus additional payments for certain sales milestones and royalties. AMAG will also pay Palatin sales milestones based on escalating annual net sales thresholds, the first of which is $25 million, triggered at annual net sales of $250 million. The approval of this candidate will provide a big boost to AMAG, as it caters to a huge unmet medical need for women. AMAG Pharmaceuticals, Inc. Price AMAG Pharmaceuticals, Inc. Price AMAG Pharmaceuticals, Inc. price | AMAG Pharmaceuticals, Inc. Quote Zacks Rank and Stocks to Consider AMAG currently has a Zacks Rank #2 (Buy). Some better-ranked stocks in the biotech sector are Anika Therapeutics Inc. ANIK, Applied Genetics Technologies Corp. AGTC and Acorda Therapeutics Inc. ACOR, each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Story continues Anika’s earnings per share estimates have moved up from $1.21 to $1.31 for 2019 and from $1.21 to $1.33 for 2020 in the past 60 days. The company beat estimates in the trailing four quarters, with the average being 72.00%. Applied Genetics’ loss per share estimates have narrowed from $1.25 to 1 cent for 2019 and from $2.39 to $2.15 for 2020 in the past 60 days. The company surpassed estimates in three of the trailing four quarters, with average positive surprise of 83.47%. Acorda’s loss per share estimates have narrowed from $3.84 to $3.59 for 2019 and from $3.32 to $3.09 for 2020 in the past 60 days. The company outpaced estimates in the trailing four quarters, with the average being 79.32%. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMAG Pharmaceuticals, Inc. (AMAG) : Free Stock Analysis Report Acorda Therapeutics, Inc. (ACOR) : Free Stock Analysis Report Applied Genetic Technologies Corporation (AGTC) : Free Stock Analysis Report Anika Therapeutics Inc. (ANIK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Canopy Growth Corporation (CGC) Gains As Market Dips: What You Should Know
Canopy Growth Corporation (CGC) closed the most recent trading day at $40.55, moving +0.97% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.17%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.32%.
Prior to today's trading, shares of the company had lost 9.87% over the past month. This has lagged the Medical sector's gain of 4.86% and the S&P 500's gain of 3.07% in that time.
Wall Street will be looking for positivity from CGC as it approaches its next earnings report date. On that day, CGC is projected to report earnings of -$0.17 per share, which would represent year-over-year growth of 45.16%. Meanwhile, our latest consensus estimate is calling for revenue of $89.72 million, up 346.57% from the prior-year quarter.
Any recent changes to analyst estimates for CGC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.64% higher within the past month. CGC is currently a Zacks Rank #2 (Buy).
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCanopy Growth Corporation (CGC) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
General Electric (GE) Dips More Than Broader Markets: What You Should Know
General Electric (GE) closed the most recent trading day at $10.29, moving -1.86% from the previous trading session. This change lagged the S&P 500's 0.17% loss on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.32%.
Prior to today's trading, shares of the industrial conglomerate had gained 9.62% over the past month. This has outpaced the Conglomerates sector's gain of 2.87% and the S&P 500's gain of 3.07% in that time.
Wall Street will be looking for positivity from GE as it approaches its next earnings report date. On that day, GE is projected to report earnings of $0.12 per share, which would represent a year-over-year decline of 36.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.88 billion, down 4.07% from the year-ago period.
GE's full-year Zacks Consensus Estimates are calling for earnings of $0.61 per share and revenue of $118.47 billion. These results would represent year-over-year changes of -6.15% and -2.59%, respectively.
Investors should also note any recent changes to analyst estimates for GE. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GE is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that GE has a Forward P/E ratio of 17.27 right now. For comparison, its industry has an average Forward P/E of 16.51, which means GE is trading at a premium to the group.
Also, we should mention that GE has a PEG ratio of 2.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.84 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportGeneral Electric Company (GE) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Verizon Communications (VZ) Gains As Market Dips: What You Should Know
Verizon Communications (VZ) closed the most recent trading day at $58.26, moving +0.84% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.17%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.32%.
Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 1.87% over the past month. This has lagged the Computer and Technology sector's gain of 2.43% and the S&P 500's gain of 3.07% in that time.
VZ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.20, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.41 billion, up 0.64% from the year-ago period.
VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.75 per share and revenue of $131.85 billion. These results would represent year-over-year changes of +0.85% and +0.75%, respectively.
Investors should also note any recent changes to analyst estimates for VZ. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. VZ currently has a Zacks Rank of #2 (Buy).
Digging into valuation, VZ currently has a Forward P/E ratio of 12.17. This represents a discount compared to its industry's average Forward P/E of 15.46.
Investors should also note that VZ has a PEG ratio of 2.86 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Wireless National stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
3M (MMM) Gains As Market Dips: What You Should Know
In the latest trading session, 3M (MMM) closed at $173.56, marking a +0.12% move from the previous day. This move outpaced the S&P 500's daily loss of 0.17%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.32%.
Coming into today, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 4.51% in the past month. In that same time, the Conglomerates sector gained 2.87%, while the S&P 500 gained 3.07%.
Wall Street will be looking for positivity from MMM as it approaches its next earnings report date. The company is expected to report EPS of $2.04, down 21.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.04 billion, down 4.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.31 per share and revenue of $32.24 billion, which would represent changes of -10.99% and -1.6%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MMM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.78% lower. MMM is currently a Zacks Rank #4 (Sell).
In terms of valuation, MMM is currently trading at a Forward P/E ratio of 18.61. For comparison, its industry has an average Forward P/E of 16.51, which means MMM is trading at a premium to the group.
Investors should also note that MMM has a PEG ratio of 1.83 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Diversified Operations industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report3M Company (MMM) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Netflix (NFLX) Gains As Market Dips: What You Should Know
In the latest trading session, Netflix (NFLX) closed at $371.06, marking a +0.5% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.17%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.32%.
Heading into today, shares of the internet video service had gained 4.83% over the past month, outpacing the Consumer Discretionary sector's gain of 2.22% and the S&P 500's gain of 3.07% in that time.
Wall Street will be looking for positivity from NFLX as it approaches its next earnings report date. This is expected to be July 17, 2019. On that day, NFLX is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 34.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.93 billion, up 26.11% from the year-ago period.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $3.34 per share and revenue of $20.18 billion. These results would represent year-over-year changes of +24.63% and +27.78%, respectively.
Any recent changes to analyst estimates for NFLX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.33% higher within the past month. NFLX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NFLX is currently trading at a Forward P/E ratio of 110.4. For comparison, its industry has an average Forward P/E of 14.73, which means NFLX is trading at a premium to the group.
We can also see that NFLX currently has a PEG ratio of 3.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Broadcast Radio and Television stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NFLX in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportNetflix, Inc. (NFLX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Bank of America (BAC) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Bank of America (BAC) closed at $27.97, marking a -0.55% move from the previous day. This change lagged the S&P 500's daily loss of 0.17%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.32%.
Prior to today's trading, shares of the nation's second-largest bank had gained 1.3% over the past month. This has lagged the Finance sector's gain of 1.88% and the S&P 500's gain of 3.07% in that time.
Investors will be hoping for strength from BAC as it approaches its next earnings release, which is expected to be July 17, 2019. The company is expected to report EPS of $0.71, up 12.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.22 billion, up 2.68% from the year-ago period.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $2.85 per share and revenue of $92.59 billion. These results would represent year-over-year changes of +9.2% and +1.47%, respectively.
Any recent changes to analyst estimates for BAC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. BAC is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, BAC is currently trading at a Forward P/E ratio of 9.87. This represents a discount compared to its industry's average Forward P/E of 10.82.
Meanwhile, BAC's PEG ratio is currently 1.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Banks - Major Regional industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBank of America Corporation (BAC) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
AT&T (T) Gains As Market Dips: What You Should Know
AT&T (T) closed at $32.59 in the latest trading session, marking a +0.43% move from the prior day. This change outpaced the S&P 500's 0.17% loss on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.32%.
Coming into today, shares of the telecommunications company had gained 0.96% in the past month. In that same time, the Computer and Technology sector gained 2.43%, while the S&P 500 gained 3.07%.
Investors will be hoping for strength from T as it approaches its next earnings release. The company is expected to report EPS of $0.90, down 1.1% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.02 billion, up 15.48% from the year-ago period.
T's full-year Zacks Consensus Estimates are calling for earnings of $3.58 per share and revenue of $183.33 billion. These results would represent year-over-year changes of +1.7% and +7.36%, respectively.
Investors might also notice recent changes to analyst estimates for T. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. T is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, T is currently trading at a Forward P/E ratio of 9.05. This valuation marks a discount compared to its industry's average Forward P/E of 15.46.
It is also worth noting that T currently has a PEG ratio of 2.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. T's industry had an average PEG ratio of 2.02 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAT&T Inc. (T) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
UnitedHealth Group (UNH) Dips More Than Broader Markets: What You Should Know
UnitedHealth Group (UNH) closed the most recent trading day at $249.64, moving -1.05% from the previous trading session. This change lagged the S&P 500's 0.17% loss on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.32%.
Heading into today, shares of the largest U.S. health insurer had gained 2.34% over the past month, lagging the Medical sector's gain of 4.86% and the S&P 500's gain of 3.07% in that time.
UNH will be looking to display strength as it nears its next earnings release, which is expected to be July 18, 2019. On that day, UNH is projected to report earnings of $3.47 per share, which would represent year-over-year growth of 10.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.61 billion, up 8.07% from the year-ago period.
UNH's full-year Zacks Consensus Estimates are calling for earnings of $14.71 per share and revenue of $243.86 billion. These results would represent year-over-year changes of +14.21% and +7.79%, respectively.
Any recent changes to analyst estimates for UNH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. UNH currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, UNH is holding a Forward P/E ratio of 17.16. This represents a premium compared to its industry's average Forward P/E of 15.35.
It is also worth noting that UNH currently has a PEG ratio of 1.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - HMOs industry currently had an average PEG ratio of 1.04 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportUnitedHealth Group Incorporated (UNH) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Christine Sinclair asked Janine Beckie if she wanted World Cup PK chance
Christine Sinclair consoles Janine Beckie following their team's defeat in the 2019 FIFA Women's World Cup France Round Of 16 match between Sweden and Canada. (Photo by Richard Heathcote/Getty Images) Canadas run at the Womens World Cup came to an abrupt end on Monday evening with a 1-0 loss to Sweden in the round-of-16. The Canadians had a massive opportunity to even the game in the 69th minute, when they were rewarded with a penalty kick from the spot after VAR revealed a handball from a Swedish defender. With Christine Sinclair the second highest goal scorer in soccer history on the field, it was Janine Beckie who was called on to take the crucial shot. Beckies attempt looked headed for the corner of the net but Sweden goaltender Hedvig Lindahl made a great effort on a diving save, keeping the Canadians off the score sheet and preserving a shutout victory. In the immediate aftermath of the decision, conversations immediately lit up about how one of the greatest goal scorers in the history of the sport playing in possibly her last ever World Cup game could be only left watching while the opportunity slipped by. After the match, in an emotional interview, Beckie revealed that Sinclair herself had made the offer to pass the opportunity on. Janine Beckie talks about the missed penalty against #SWE and shares that Christine Sinclair asked her if she wanted to take the penalty. pic.twitter.com/6Vpezv3V5x TSN (@TSN_Sports) June 24, 2019 Christine actually asked me if I wanted to take it, Beckie said. Thats a big moment for me, and its going to be hard for a while. Head coach Kenneth Heiner-Moller confirmed the same sentiment in his post-match media availability, adding that the team does not have a pre-assigned player to take penalty kicks. They figured it out themselves, said Heiner-Moller. We have 3-4 players who can take them. Despite the failed attempt, Beckie wasnt showing regret on her attempt. Im confident in my penalty, I thought I hit it really well, she said after the game. I thought she made a really good save. Its the big moments that are the moments that you live for. You get all the glory if it goes in and take all the blame it feels like if you miss. |
Alphabet (GOOG) Dips More Than Broader Markets: What You Should Know
Alphabet (GOOG) closed at $1,115.52 in the latest trading session, marking a -0.57% move from the prior day. This change lagged the S&P 500's 0.17% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.32%.
Prior to today's trading, shares of the internet search leader had lost 1.66% over the past month. This has lagged the Computer and Technology sector's gain of 2.43% and the S&P 500's gain of 3.07% in that time.
GOOG will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $11.48, down 2.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $30.90 billion, up 17.76% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $45.59 per share and revenue of $130.18 billion. These totals would mark changes of +4.32% and +18.25%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for GOOG. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GOOG is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, GOOG currently has a Forward P/E ratio of 24.61. This represents a discount compared to its industry's average Forward P/E of 26.97.
We can also see that GOOG currently has a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2.63 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAlphabet Inc. (GOOG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
McDonald's (MCD) Stock Moves -0.17%: What You Should Know
McDonald's (MCD) closed the most recent trading day at $203.92, moving -0.17% from the previous trading session. This change traded in line with S&P 500. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.32%.
Heading into today, shares of the world's biggest hamburger chain had gained 2.66% over the past month, lagging the Retail-Wholesale sector's gain of 3.59% and the S&P 500's gain of 3.07% in that time.
Investors will be hoping for strength from MCD as it approaches its next earnings release. In that report, analysts expect MCD to post earnings of $2.05 per share. This would mark year-over-year growth of 3.02%. Our most recent consensus estimate is calling for quarterly revenue of $5.30 billion, down 0.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.04 per share and revenue of $21 billion. These totals would mark changes of +1.77% and -0.12%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MCD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. MCD is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MCD is holding a Forward P/E ratio of 25.41. Its industry sports an average Forward P/E of 23.68, so we one might conclude that MCD is trading at a premium comparatively.
We can also see that MCD currently has a PEG ratio of 2.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCD's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportMcDonald's Corporation (MCD) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Citigroup (C) Dips More Than Broader Markets: What You Should Know
Citigroup (C) closed the most recent trading day at $67.41, moving -0.82% from the previous trading session. This change lagged the S&P 500's daily loss of 0.17%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.32%.
Heading into today, shares of the U.S. bank had gained 6.37% over the past month, outpacing the Finance sector's gain of 1.88% and the S&P 500's gain of 3.07% in that time.
Investors will be hoping for strength from C as it approaches its next earnings release, which is expected to be July 15, 2019. In that report, analysts expect C to post earnings of $1.84 per share. This would mark year-over-year growth of 13.58%. Our most recent consensus estimate is calling for quarterly revenue of $18.70 billion, up 1.24% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.58 per share and revenue of $74.08 billion. These totals would mark changes of +13.98% and +1.69%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for C. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. C is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, C is holding a Forward P/E ratio of 8.96. Its industry sports an average Forward P/E of 10.82, so we one might conclude that C is trading at a discount comparatively.
We can also see that C currently has a PEG ratio of 0.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. C's industry had an average PEG ratio of 1.32 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCitigroup Inc. (C) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Noodles & Co. (NDLS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Noodles & Co. (NDLS) closed at $6.92, marking a -1.84% move from the previous day. This move lagged the S&P 500's daily loss of 0.17%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.32%.
Heading into today, shares of the restaurant chain had lost 9.96% over the past month, lagging the Retail-Wholesale sector's gain of 3.59% and the S&P 500's gain of 3.07% in that time.
Investors will be hoping for strength from NDLS as it approaches its next earnings release. On that day, NDLS is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 400%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $117.25 million, down 0.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.16 per share and revenue of $468.17 million, which would represent changes of +700% and +2.26%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NDLS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NDLS is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, NDLS is holding a Forward P/E ratio of 43.16. This valuation marks a premium compared to its industry's average Forward P/E of 23.68.
Investors should also note that NDLS has a PEG ratio of 4.93 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants was holding an average PEG ratio of 2.1 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportNoodles & Company (NDLS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
IBM (IBM) Gains As Market Dips: What You Should Know
IBM (IBM) closed the most recent trading day at $139.35, moving +0.11% from the previous trading session. This change outpaced the S&P 500's 0.17% loss on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.32%.
Coming into today, shares of the technology and consulting company had gained 5.14% in the past month. In that same time, the Computer and Technology sector gained 2.43%, while the S&P 500 gained 3.07%.
IBM will be looking to display strength as it nears its next earnings release. On that day, IBM is projected to report earnings of $3.06 per share, which would represent a year-over-year decline of 0.65%. Our most recent consensus estimate is calling for quarterly revenue of $19.11 billion, down 4.45% from the year-ago period.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $13.89 per share and revenue of $76.82 billion. These results would represent year-over-year changes of +0.58% and -3.49%, respectively.
Any recent changes to analyst estimates for IBM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. IBM is currently a Zacks Rank #3 (Hold).
Digging into valuation, IBM currently has a Forward P/E ratio of 10.02. For comparison, its industry has an average Forward P/E of 10.54, which means IBM is trading at a discount to the group.
It is also worth noting that IBM currently has a PEG ratio of 2.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 2.53 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportInternational Business Machines Corporation (IBM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Coca-Cola (KO) Gains As Market Dips: What You Should Know
Coca-Cola (KO) closed at $51.92 in the latest trading session, marking a +0.72% move from the prior day. This change outpaced the S&P 500's 0.17% loss on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.32%.
Prior to today's trading, shares of the world's largest beverage maker had gained 3.41% over the past month. This has outpaced the Consumer Staples sector's gain of 2.25% and the S&P 500's gain of 3.07% in that time.
Wall Street will be looking for positivity from KO as it approaches its next earnings report date. This is expected to be July 23, 2019. On that day, KO is projected to report earnings of $0.62 per share, which would represent year-over-year growth of 1.64%. Our most recent consensus estimate is calling for quarterly revenue of $9.57 billion, up 7.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.09 per share and revenue of $34.97 billion. These totals would mark changes of +0.48% and +9.77%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. KO is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, KO is currently trading at a Forward P/E ratio of 24.62. Its industry sports an average Forward P/E of 24.38, so we one might conclude that KO is trading at a premium comparatively.
Also, we should mention that KO has a PEG ratio of 3.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. KO's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCoca-Cola Company (The) (KO) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Charles Barkley says LaVar Ball should be kept off television
LaVar Ball making inappropriate comments on ESPN predictably did not improve Charles Barkley's opinion of the Ball family patriarch. (Photo by Allen Berezovsky/Getty Images) From calling LaVar Ball a big mouth jackass dad to saying the Ball family patriarch was exploiting his kids to wearing a jersey of a UCLA March Madness opponent on the air , Charles Barkley has never tried very hard to hide his animosity for basketballs loudest dad. Not surprisingly, Ball going onto ESPNs First Take and making a suggestive comment to Molly Qerim didnt really help matters. Charles Barkley still not a fan of LaVar Ball Speaking with TMZ , Barkley was asked about Ball and the Hall of Famer had a pretty blunt response: "Wherever LaVar Ball is, there's a village missing an idiot," Barkley said. " ... We should just keep LaVar off television. That would be the best way to be." Barkley may get his wish to keep Ball off television, as ESPN has since said that it has no plans moving forward with Ball , though that isnt an outright pledge to keep Ball off the network. And ESPN is only one of many sports networks that could bring Ball on. For his part, Balls camp has denied that his switching gears comment had a sexual intent, and the man himself has since doubled down by saying the hosts mind was in the gutter. Barkley did have some kind words for Balls eldest son Lonzo, but indicated he had zero expectations that Balls behavior will change now that his familys most valuable member is playing for the New Orleans Pelicans. Not just New Orleans, Louisiana, not Los Angeles, [LaVar]s an idiot in all 50 states, Barkley said. Its really unfair to his son. His son is a good player and a nice kid. Fair enough, though well see what happens if Lonzo is ever traded to the Toronto Raptors. More from Yahoo Sports: Sources: Kawhi to become free agent; Raptors favorite Paul denies trade request: Happy to stay in Houston After profane tirade, Mets have to fire manager Callaway France beats Brazil, keeps possibility of dream QF alive |
Olivia Munn speaks out against #MeToo backlash
Olivia Munn stopped by The View on Monday and weighed in on the progress she thinks the #MeToo movement has made since it started gaining traction. “I think the biggest note that has changed since the #MeToo movement has started is that for the first time, there is an entire group of people, usually white men, who have to be aware of their existence,” she said. “If you ask any minority or LGBTQ member or woman who often we’re aware of our existence, it’s like, every day,” she added. Munn pointed specifically to the backlash she’s heard from some who complain that they must now be more careful about their behavior or the things that they say. “When I go into a meeting and I’m talking, I have to think about three different ways before I say it. How are they going to accept this or take this or will the be pissed off?” she said. “It’s a silly backlash because I think, ‘The rest of us have been doing this forever! Welcome to the world!’” Co-host Sunny Hostin praised Munn for using her platform to call attention to these issues, particularly the gender pay gap. “I still don’t understand why women don’t get equal pay for equal work,” said Hostin. “Why do you think this is such a difficult thing for people to grasp?” she asked. “When I’m negotiating my contracts I know that there is somebody in the business affairs for the studio or whoever, and it’s usually a man talking to another man,” said Munn. “It’s just this tendency to give men more money every single time. “This whole disparity was created by people at the top, and we can’t expect them to change it for us,” she added. Many viewers on Twitter applauded Munn for using her appearance on the show as a way to speak about important issues, rather than just promoting her new project: I commend #OliviaMunn for speaking up for #MeToo and people of color though it was difficult to do on #TheView . So often folks look to women like her to just be pretty and she showed that she is not in that box and intends to use whatever platform she has for something greater. — Ronda Racha Penrice (@rondaracha) June 24, 2019 Watching @oliviamunn break down male privilege on The View should be a national pastime. Like, some men are really mad they have to think about what or how they say things in the workplace. Welcome to the real world, Joe. We been doing it. 🤷🏽♀️ — Lisa (@gritsandguac) June 24, 2019 @oliviamunn had me in tears when she talked about always having to think about what she says and how she acts, and how white men are only just now having to do so. The struggle has been real, and still is real. — Jess Hahn (@fionalive) June 24, 2019 Others weren’t thrilled with Munn’s comments or the way she delivered them: Story continues Everyone is aware of their own existence I think it’s past time where people stop blaming “white men” as a whole for every problem that exists. I raised a child who is now a white man and he’s not racist, he’s not homophonic, he’s a veteran, he’s a good human being. — Julie (@JulieAnn0720) June 24, 2019 omg!! I'm sorry...but watching @oliviamunn is SO PAINFUL. I hope she gains some more confidence and self-assuredness before she tries to speak out on #WomensRights again. Her faltering and hesitancy is not assuring to hear at all. I'm sorry..but it makes me angry! #TheView — Hikergal333 (@plausible4me) June 24, 2019 Me too = Manhaters. — donnia Trump2020🇺🇸 (@donnia89) June 24, 2019 A feud is brewing between real housewife Bethenny Frankel and View co-host Sunny Hostin! Read more from Yahoo Entertainment: Whoopi Goldberg defends Joe Biden amid accusations of racism: 'He sat for 8 years with a black guy' Veteran meteorologist 'let go' from job after objecting to station's 'Code Red' weather alerts 'Fox & Friends' co-host Brian Kilmeade says crowd boos are 'not for Ivanka' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
Does The ImpediMed Limited (ASX:IPD) Share Price Tend To Follow The Market?
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If you're interested in ImpediMed Limited (ASX:IPD), 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. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks are more sensitive to general market forces than others. 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.
View our latest analysis for ImpediMed
With a beta of 1.07, (which is quite close to 1) the share price of ImpediMed has historically been about as voltile as the broader market. If the future looks like the past, we could therefore consider it likely that the stock price will experience share price volatility that is roughly similar to the overall market. Beta is worth considering, but it's also important to consider whether ImpediMed is growing earnings and revenue. You can take a look for yourself, below.
ImpediMed is a noticeably small company, with a market capitalisation of AU$44m. Most companies this size are not always actively traded. Companies this small are usually more volatile than the market, whether or not that volatility is correlated. Therefore, it's a bit surprising to see that this stock has a beta value so close to the overall market.
ImpediMed has a beta value quite close to that of the overall market. That doesn't tell us much on its own, so it is probably worth considering whether the company is growing, if you're looking for stocks that will go up more than the overall market. In order to fully understand whether IPD is a good investment for you, we also need to consider important company-specific fundamentals such as ImpediMed’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 IPD’s future growth? Take a look at ourfree research report of analyst consensusfor IPD’s outlook.
2. Past Track Record: Has IPD 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 IPD's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how IPD 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. |
Epizyme Announces Positive Interim Data on Lead Candidate
Epizyme, Inc. EPZMannounced positive interim data from an ongoing phase II study of its lead candidate, tazemetostat, as a monotherapy for patients with relapsed or refractory follicular lymphoma (“FL”) who have received at least two prior lines of systemic therapy.
The primary endpoint of the study is objective response rate (“ORR”). Secondary endpoints include duration of response, overall survival, and progression free survival and safety.
Shares of the company have increased 143% year to date compared with the industry’s 6.8% growth.
Follicular lymphoma patients, who had been previously treated with two or more systemic therapies, were enrolled in a trial composed of two cohorts in the phase II study. One cohort enrolled patients with EZH2 activating mutations and the second cohort comprised patients with wild-type EZH2. In the cohort of patients with EZH2 activating mutations, 40% of patients were refractory to their last treatment; 40% were refractory to a rituximab regimen and 22% were double refractory. The ORR in this cohort was 77%, and 100% of patients experienced a reduction in tumor burden, with no patients having experienced progressive disease as best response.
In the wild-type EZH2 cohort, 37% were refractory to their last treatment; 61% were refractory to a rituximab regimen; and 39% were double refractory. All the patients were treated with 800 mg of tazemetostat, administered orally twice a day. The ORR in this cohort was 34%, and 71% of patients experienced a reduction in tumor volume.
Interim safety results showed that only 5% of FL patients discontinued treatment and 9% had dose reductions due to treatment-related adverse events.
It remains on track to submit a new drug application for tazemetostat in FL in the fourth quarter of 2019.
We remind investors that tazemetostat, a first-in-class EZH2 inhibitor, is currently being studied as a monotherapy in ongoing phase II programs in patients with certain molecularly defined solid tumors, including epithelioid sarcoma and other INI1-negative tumors; both FL and diffuse large B-cell lymphoma (DLBCL) forms of non-Hodgkin lymphoma; mesothelioma; and combination studies in DLBCL and Non-small-cell lung carcinoma.
Epizyme, Inc. price | Epizyme, Inc. Quote
Zacks Rank and Stocks to Consider
Epizyme currently has a Zacks Rank #2 (Buy).
Some better-ranked stocks in the biotech sector are Anika Therapeutics Inc. ANIK, Applied Genetics Technologies Corp. AGTC and Acorda Therapeutics Inc. ACOR, each carrying a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Anika’s earnings per share estimates have moved up from $1.21 to $1.31 for 2019 and from $1.21 to $1.33 for 2020 in the past 60 days. The company beat earnings estimates in the trailing four quarters, with the average being 72.00%.
Applied Genetics’ loss per share estimates have narrowed from $1.25 to 1 cent for 2019 and from $2.39 to $2.15 for 2020 in the past 60 days. The company surpassed earnings estimates in three of the trailing four quarters, with average positive surprise of 83.47%.
Acorda’s loss per share estimates have narrowed from $3.84 to $3.59 for 2019 and from $3.32 to $3.09 for 2020 in the past 60 days. The company outpaced earnings estimates in the trailing four quarters, with the average being 79.32%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportEpizyme, Inc. (EPZM) : Free Stock Analysis ReportAcorda Therapeutics, Inc. (ACOR) : Free Stock Analysis ReportAnika Therapeutics Inc. (ANIK) : Free Stock Analysis ReportApplied Genetic Technologies Corporation (AGTC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
7 Automation Software Market Trends to Pay Attention To
By Kayla Matthews
The professional service automation market continues to grow, and the areas within this market should not be ignored if you want to be a beneficiary of the rise in automation.
The automation software market wasvalued at $8.2 billion in 2018and is projected to rise substantially over the next decade. These seven automation trends are a leading cause of this boom in the market and will play a major role in growing the industry over the years to come.
Small and medium-sized businesses are evolving and beginning to realize that their old method of organization, accounting and reporting are costing them more time and money than before. These businesses are adopting automation techniques to streamline their operations and reduce the number of costly errors they were exposing themselves to.
In order for small businesses to continue to grow and thrive in their competitive markets, they will likely need tobecome semi-automatedat the very least. This trend will continue as more and more small businesses are growing out of the manual spreadsheet approach and replacing it with automation software.
Automated investment services offer a low cost and easy to manage solution for novice investors to manage their finances and retirement. Online brokerages and “robo-advisor” websites such as Betterment or Acorns offer simple, automated investing strategies to diversify small amounts of money by having little to no minimum investment.
Even professional investors are using automated trading systems or algorithmic trading techniques to better outperform the market.Investopediaclaims 75% of shares traded on the U.S. stock exchange were executed via automatic trading systems. The money management industry has already experienced major changes due to automation software, and there is no sign of technology slowing down.
The manufacturing industry has always been a playground for automated strategies. However, automation software is taking the efficiency of equipment beyond where it has ever been.
Automation software" is now able to connect":https://www.nature.com/articles/d41586-018-07501-y the entire manufacturing process from project creation to equipment maintenance. Enabling industrial equipment to sync with management software gives managers the ability to make decisions quicker and more efficiently to ultimately produce a better result for the business.
The innovation of the assembly line was revolutionary, but the addition of automated software to the manufacturing industry will separate simply successful operations from booming operations.
Businesses that successfully integrate automated software are the companies that will be industry leaders in the next decade. As we discussed with manufacturing, utilizing software to connect an entire operation is invaluable. Combining AI, ERP, blockchain and other system solutions will streamline the way businesses perform routine and advanced tasks such as accounting, human resources, finances and operations.
The following tasks among with many others can now be simplified by merging automated technologies:
File sharing Reporting Email Marketing Invoicing Accounting and Bookkeeping Filter Sales Lead Data Integrating Equipment Decision Making
Products are becoming safer through the use of product testing and simulations provided by test automation software. Manufacturing processes can be evaluated quickly and efficiently through the use of simulations, while programs and software can be tested quickly and efficiently by eliminating the manual processes involved with testing a product.
Here are just a few reasons why automated testing will continue to be prominent in the next decade and beyond:
Saves Time Saves Money Reduces Testing Errors Improves Quality
Businesses can’t argue with the results of automated testing procedures and simulations to improve their products and services.
Automation is inevitable in 2019 and will continue to be difficult to avoid if you are in the working world over the next 100 years, but some countries are more prone to change than others. Countries that primarily rely on skilled labor are more likely to see slower changes in automation than in countries which have a large percentage of the workforce in blue collar jobs.
Granted, automation is becoming more involved in the business setting as discussed earlier, but countries such as the United States are seeing less automated changes than countries such as Slovakia, which has over30% of occupations in jeopardyof automation.
Earlier, we looked at how automated technology supplements businesses and creates a more efficient environment for management to make decisions. However, when countries lack educated managers and employees who fail to adapt to the changing environment, we see automation completely take over industries in these countries.
Therefore, where you live in the years to come will affect how you are impacted by these trends in automation technology.
Automation technology is appearing in more places than just the business world. It is now possible to control your home with the touch of a button. Doors can lock, lights can turn on and off, appliances can be controlled and your favorite music can be played with simple commands through the use of smart home automation.
Amazon Alexa and Google Home are the recognizable “home assistants,” but there are many other automation tools on the market today that weren’t there ten years ago. Smart thermostats and home security now give homeowners peace of mind when they leave for the day.
Automation software is all around us, and it is essential to see how automation changes our lives and will continue to do so in the years to come.
Click here to read the original article on ETFdb.com. |
Apple to Expand Its Footprint in Seattle With Office Lease
(Bloomberg) -- Apple Inc. is significantly increasing its footprint in Seattle as its expands on a previously announced plan to boost hiring, bringing an additional 2,000 jobs to the area in the next five years.
The iPhone maker signed a lease for office space at 333 Dexter, a 660,000-square-foot (61,300-square-meter) development in the South Lake Union neighborhood being built by Kilroy Realty Corp., according to the office of Mayor Jenny Durkan.
“These new jobs confirm what we already knew: We have the best talent and city anywhere,” Durkan said in an emailed statement. “Apple’s expanded footprint in Seattle is another example of the growing opportunity that exists for residents of Seattle and the economic powerhouse our city has become.”
For years, cranes have dotted the Seattle skyline as builders rushed to accommodate a swelling population and rapidly growing tech firms, led by Amazon.com Inc. That company now employs more than 45,000 at its headquarters in town and occupies about a fifth of the city’s prime office real estate. Other firms have been muscling in to recruit from Seattle’s deep well of engineers. Both Google and Facebook Inc. are leasing offices near 333 Dexter.
Apple has a relatively modest presence in the city of about 500 employees. In December, the company said that it planned to add 1,000 jobs in the area over three years as part of a national expansion that also includes spending $1 billion on a new campus in Austin, Texas.
To contact the reporter on this story: Noah Buhayar in Seattle at nbuhayar@bloomberg.net
To contact the editors responsible for this story: Rob Urban at robprag@bloomberg.net, Dan Reichl, David Scheer
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
FedEx (FDX) Results Tuesday (6/25) After Bell: What To Expect
FedEx FDX is releasing its earnings Tuesday (6/25) after the bell. The market has been disappointed with the last 5 quarterly releases, with FDX sliding following each quarterly report. FDX is expected to report $17.8 billion in revenue with EPS estimates of $4.81, representing 3% sales growth but an earnings per share decrease of 18.6% year-over-year.
Analysts have been adjusting earnings down due to increasingly negative outlook pushing this stock down to Zacks Rank #4 (Sell). I believe that a lot of this negative sentiment is hinging on the escalation of trade disputes along with the impending economic slowdown, which would directly impact the shipping business adversely due to the associated output decrease.
TNT Acquisition
The TNT Express acquisition in 2016 for $4.4 billion was meant to expand FedEx’s international presence to rival top competitor, UPS UPS, who has already established global distribution. FedEx Express, which includes TNT, is now able to service 220 countries making up 99% of the world GDP.
Weaker than expected international growth over the past year or so, along with some systemic cost concerns, have been dragging FedEx down with TNT. FedEx Express isn’t producing the same top-line growth that it anticipated with soft European and Chinese output. This segment saw a 7% year-over-year decrease in operating income as revenues and margins are pinched.
Amazon Effect & Broader E-Commerce
FedEx announced earlier this month that it would not be renewing its US air delivery contract with Amazon AMZN and emphasized how little they rely on them for their top-line, quoting that Amazon only makes up about 1.3% of revenues and are not concerned about Amazon’s in-house delivery. For a company that is stressing the importance of growing their e-commerce exposure, this is a very precarious move, with Amazon controlling almost 50% of the US e-com market.
UPS, on the other hand, relies on Amazon a bit more with somewhere between 5-8% of its revenue being driven by them. Handling north of 20% of Amazon’s volume. UPS is more deeply ingrained in e-commerce delivery with this driving the largest portion of their growth. UPS shipments currently make up more than 50% of the total business-to-customer deliveries in the US.
Amazon is shifting its focus to develop an internal delivery service, with initial rates appearing to be cheaper for them in-house, although there is some speculation to whether these figures are misconstrued. None the less, with the threat of the US’s largest e-commerce business shipping their products in-house could bring UPS and FedEx to their knees.
Performance & Valuation
FDX has lost over 31% of its value over the past 52-weeks underperforming the closest benchmarks by a considerable amount. This can be substantially attributed to TNT’s weak performance. UPS has lost over 9% over the same time frame, unable to fully recover from the equity market drop off at the end of 2018.
FDX is trading at one of its lowest forward P/E multiples since 2011, with a P/E valuation of 10.2x below UPS’s 13.3x and the shipping industry’s 12x.
I am not implying that this discounted valuation means that FDX is a buy. I am only illustrating that the market has priced out a lot from this stock and if systemic issues can be resolved this firm would make a good investment at the price.
Take Away
FedEx analysts are estimating conservative financial results for the earnings release tomorrow, as a pessimistic tone shakes the shipping sector. With the last 5 quarter releases having a negative price impact on FDX, traders & investors are preparing for a miss with the stock dropping 2.7% just today. Look for positive FedEx Express as well as robust forward guidance which will both be driving this stocks price impact tomorrow after the bell.
More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportUnited Parcel Service, Inc. (UPS) : Free Stock Analysis ReportFedEx Corporation (FDX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is College Worth the Cost? 40% Say No.
The cost of college has steadily risen over the past decade. It's increased by $7,000 to $34,740 at a four-year private school -- and that's just for tuition and fees -- according todatafrom the College Board. A state school will cost less, about $10,000 a year for tuition and fees, but that's still a substantial amount of money.
Earning a four-year degree, however, does bring you higher earning power. A person with a bachelor's degree earns an average of $57,026 per year, according to a2018 Motley Fool article. That's a lot more than the average $34,197 that someone who's only graduated from high school earns.
That's a huge difference, and the good news is that it's possible to earn a bachelor's degree without spending big bucks. That might be an idea worth pursuing if you look at the results of arecent surveyfrom Freedom Financial, which shows that a surprising number of graduates regret they took on debt to earn their degree.
It's harder to celebrate when you have crushing student loan debt. Image source: Getty Images.
Many Americans, just under 40%, believe that their college degree was not worth the cost. That includes 25% who feel that way and 14% who strongly do. Only 22% of the just over 2,008 adults surveyed felt strongly that their degree was worth, it while 39% agreed that their four-year degree was worth the cost.
More people are satisfied with the value of their investment in education than aren't, but enough people aren't that it should give us pause. Clearly, there's a huge value in getting a degree, but how much you spend to get to that end goal matters a lot.
College can be a value if you make careful choices. It can be a financial burden that follows you for your entire life if you don't.
Image source: Freedom Financial.
When picking a college, it's important to consider your return on investment. If you intend to go into certain high-paying professions -- lawyer, doctor, engineer, and a few others -- your career prospects, as well as your income potential, may be enhanced by going to a pricier top-tier school.
In most cases, though, that won't be worth it, and you should look for cheaper alternatives. State schools are a smart choice. It's also possible to spend two years at a community college before transferring to a four-year college.
Some companies have also begun offering tuition reimbursement or even free college for employees. These programs may not give you access to the priciest schools, but they will give you a chance to earn a degree on someone else's dime.
In the end, that may be much more valuable than the prestige/debt combo you get going to high-priced colleges. In many professions, you need a degree, but very few care where that degree came from. Make smart choices, and you'll be able to start your career with little debt or even debt free, and that allows you a lot more freedom when it comes to deciding what jobs to take.
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This Timeout for Big Tech Has Been a Long Time Coming
Free speech on the internet is a tricky subject, but legislators on both sides of the U.S. party line have called for companies such asFacebook(NASDAQ: FB)and YouTube to get their act together. In this week's episode ofIndustry Focus: Tech, host Dylan Lewis and Motley Fool analyst Dan Kline explore the issue -- how a proposed law could make business much more complicated for big tech, what this could mean for American free speech in general, how deepfake videos fit into the social media legality picture, and more. Also, the guys take a quick look atSlack's(NYSE: WORK)direct listing -- why it's got the market so excited, and why the company's profitability should give investors pause.
To catch full episodes of all The Motley Fool's free podcasts, check out ourpodcast center. A full transcript follows the video.
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This video was recorded on June 21, 2019.
Dylan Lewis:Welcome toIndustry Focus, the podcast that dives into a different sector of the stock market every day. It is Friday, June 21, and we're checking in on some tech news. I'm your host, Dylan Lewis, and I'm joined on Skype byfool.com's Dan Kline. Dan, what's going on, man?
Dan Kline:Hey, there, Dylan! It's like a Dan Kline theme week. I guess vacations, or maybe nobody else wanted to tape this week. I have been all over the show!
Lewis:No, don't disparage yourself like that! We are happy to have you on! It is unusual to get you three times in one week. I hope you're still managing to spend some time with the family and get a little rest. We don't want to wear you out.
Kline:You know, I have a 15-year-old son. He was delighted to be able to sleep until 10 a.m. this morning. Now I'm sure he's playing video games. I've promised him lunch at Wawa when I'm done with this.
Lewis:Wawa, one of our favorite chains, Dan, and in my opinion, probably the best sandwich chain out there. It's better than Panera. It's better than Subway. I'm from New Jersey, so I'll be a little biased here, but I'm saying Wawa's No. 1.
Kline:We've talked about this before. It's No. 1 among the chains. The kiosk, where you get to program your own stuff and you don't have to talk to a person, is pretty fabulous. It's an acceptable sandwich, and I don't think any of the others are. But I grew up in Massachusetts, where there's a grand tradition of sub shops and locally owned places. We had a place that used to sell meatballs the size of a car tire. So, yes, I enjoy Wawa, but I think the hype of how great it is maybe a tiny bit too much.
Lewis:I grew up in New Jersey and I want to give a shout out to Italian Riviera in Waldwick, my go to sub shop when I'm home for the holidays and when I'm home over the summer and stuff like that. I know what you're saying, Dan. You can't possibly beat that homegrown place that just knows how to pile the meat on. But I think Wawa does an OK job.
Kline:Again, for Florida, they are gourmet. For Swampscott, Massachusetts, Engine House Pizza, Tony Lena's, here's a shout out to you. I actually have no idea if either of those chains are still in business. I haven't lived there in a decade. Actually, two decades.
Lewis:[laughs] All right, Dan, we are not talkingCG. I know you've done a bunch of episodes this week, I don't want you to get confused. We're talkingTechtoday. We're going to sideline the Wawa conversation.
Kline:We're not doing a sandwich show?
Lewis:No. We could talk sandwich technology at some point down the road. But today, we're going to be just checking in on a couple of tech stories. One is a follow-up on an episode we did recently about Slack. And then we're going to dive into a big story that got our attention this week. But yeah, Slack listed yesterday. Why don't we talk a little bit about this company? It is probably the most anticipated IPO of 2019 in terms of having a business that people actually want to invest in.
Kline:You know, I love Slack. I'm probably on Slack as much as... I'm going to guess I'm top five in a company of heavy Slack users. And I'm on some other slacks that aren't just The Motley Fool Slack. I love this product! What I don't love so much is their monetization. They don't lose a ton of money. They're sitting on about $900 million in cash. We'll talk about why they went public a little bit later. But I don't see a clear path to increasing revenue. They can add customers, absolutely. But in my opinion, to really become profitable at a significant level to justify the absolutely insane valuation that they're trading at right now, they need to create a suite of business products. I don't think that's an easy thing to do.
Lewis:Yeah, shares had a reference list price of $26. They surged to about $40. You look at what that does in terms of valuation for them, it puts them at about $20 billion, which would be 40X trailing 12 months sales. I think it's fair to say that's a little rich, Dan.
Kline:I believe they forecast the entire collected workspace market to be about $26-28 billion. So, yeah, it's really high. But part of that is, there are some companies that you feel really good about. We're on Skype now, I don't think I've ever felt really good about Skype, even though I likeMicrosoftvery much as a company. But Slack is something that just, it really makes your life better. I know on your end, where you have 1,000 people, you're managing people, so Slack can be overwhelming. For those of us who are part of a remote workspace, Slack is a lifeline. It's something that I feel really positive about. I want to be an investor almost as a thank-you, but I don't see how their business model ever justifies that valuation unless they can figure out a lot more ways. It's interesting to me that you could do the equivalent of aZoommeeting over Slack, and we use Zoom separately most of the time.
Lewis:I guess it speaks to the quality of the technology that Zoom has and Slack has respectively. Typically, what you see with companies in the software-as-a-service segment is, you get known for doing one thing really well and then you add functionality over time. You look at what they're able to do in terms of billing, right now it's about $6.67 to $15 per month per user, depending on how you bill and the tier they're at in terms of service. The easiest way for them to meaningfully grow revenue, especially as they have these loyal customers, is to add killer functionality onto these other product suites that integrate and allow them to charge more for that. I'm not exactly sure what that is. But there is a profitable business here, Dan. I mean, 87% gross margins over the past 12 months. If they bring that sales and marketing spend down a little bit, I think there's something there.
Kline:Here's the thing. I'm not saying this won't be a profitable business. They don't lose very much money for where they are as a company. But to justify the valuation, they don't just have to be a little profitable. They can't just make $50 million a year. They have to be a company throwing off billions and profit. Again, I think they could get there. They might be able to integrate things that are useful. For example, a lot of the writers and I are talking about a Vegas trip. In theory, could they integrate travel services? They see you're talking about travel, "Hey, look, here's a flight at the time. Here's a hotel deal. Here's a value add for being a Slack user." I'm not sure what it looks like. There are things that could go in. But that's a tightrope to walk because one of the best things about Slack right now is there's no advertising, there's no clutter. And yes, we can get overwhelmed by the sheer volume of Slack messages, but you can always dig out from that. You don't have to stop like, "Oh, great, Slack saw I was talking about pizza, and now here's an ad forDomino's."
Lewis:There is a part of me, Dan, that looks at this and says OK, I have heard Stewart Butterfield, their CEO, talk quite a bit about how he foresees the obsolescence of email, and that we move away from a very office-oriented, very Outlook-oriented way of doing work, and instead are in something that there's more Slack-like for everything -- for communication, for archiving, for all of the content that we communicate within a company. I wonder what else they might be able to wrap into that service that is currently much more Outlook-like that could allow them to charge some of those higher tiers that they would need to make it a wonderfully profitable business.
Kline:Yeah, I think calendar would be a big one. They do replace email. You and I communicate a lot during the week, and it's almost entirely on Slack, and it's generally only an email when it needs to be something very formal that maybe we want to keep that record of. So I can see them doing it. But you have to do it very slowly. They have to consult their user base. If I was Slack, I would be taking my biggest customers, people like us, we're part of a test that is integrating multiple Slack channels; we have an external channel and an internal channel, and we're allowed to communicate with each other, and there's varying rules on that that Slack has been playing with.
So far, I see this as a very well-managed company that has done everything right. But that doesn't mean they won't make a misstep in the future. They have to go very carefully.
Lewis:As is often the case with newly public companies, I'm looking at this one and saying, there's a lot of good stuff here, I want to see how management handles being publicly traded for a little bit before I decide I'm putting some money into it. Particularly true because of the valuation right now.
Kline:Yeah. One of the things we promised to explain that we missed is that this was not an initial public offering. In a traditional IPO, what happens is, a company sells shares of itself in order to have money to fund operations. This was a direct listing. What that means is, this is an equity event for early investors. Let's say you were a fund or an individual who had shares, this is a chance to cash out. The company doesn't actually get any money from this listing. But it's important to note, the company doesn't need any money. It actually has some $800 million in the bank. And while it is losing money, it's losing $130 million, about $30 million a quarter. They could go on for four or five years without having to raise even at the current levels of loss. This was a different path to the public market.
Lewis:What I think is really interesting about the direct listing process is the incentives are very different than an IPO. You think about an IPO, and it's a capital raising event. And then there's also this, "OK, we want to pop a little bit on the first day, so we're going to have our shares be priced at a level where we get the ego boost of having the market want our shares." So, you have this very complex dynamic at play. You're trying to raise money at a good valuation that does service to the people that are existing shareholders and is good for the business, but you're also trying to serve this market euphoria that everyone expects. A direct listing doesn't really have any of that because they're just making their shares available at a price that they think people will want to buy them and exchange them, and then just letting market forces take over.
Kline:Here's the thing. I'm a big believer in ignoring almost the first year of trading on a company. We have a media cycle. "Oh my god,Uberis terrible! Its stock is down 40%! It's great!" None of this has anything to do with the business metrics of the company. But one of the interesting things I found for Slack is, they'd been asked for financials from some of the bigger organizations that wanted to use their product. If you're a giant company -- let's pretend you're an insurance company that employs 50,000 people across the company -- you're not going to want to move to Slack and have them go out of business in six months. So being public actually gives them a level of transparency that's going to help their business. That's something you don't really hear about when companies go public. But this actually opens new doors for them and might make it easier instead of harder.
Lewis:All right, Dan, this is a first segment for me, but I think one that we could bring back in the future. I'm going to call it one big story for the week. I think that this was something that I saw in my news feeds and was like, "Wow, this is actually something that may dramatically change the landscape of big tech." Do you want to introduce it?
Kline:Right now, there's been a lot of talk about bias in social media. We won't get into the politics of that. You all know what we're talking about. Maybe one side or the other is being shut out more, not shown in algorithms, being banned. And because of that, a Republican senator, Josh Hawley from Missouri, has introduced a piece of legislation that would force the very largest tech companies -- really Facebook,Twitter, not too many others -- to vet everything that they post. Right now, they have an exception to the liability laws. If I go on Facebook, and I post something terrible about Dylan that's criminally libelous, it is not Facebook's fault. Now, they can police it after and take it down. But they don't have to police it beforehand. This proposed legislation would get rid of that exception to the rule and force them to police everything before it gets posted. I'm not even sure what that would look like or how it would work. What they would have to do is apply for an exception to the rule. And to get an exception, they would have to show they don't have a political bias. Again, without getting into the politics of this, I'm not sure how you show that you don't have something. It's very difficult to show that you don't not do something. Dylan, jump in and help me here!
Lewis:[laughs] Yeah, I think that sums it up; the fact that you don't not do something is hard. Basically, there would be this vetting process, where you are making your algorithms available to be audited, which is a very different approach to what we have seen with these companies in the past. You keyed up the fact that they have this kind of immunity right now, thanks to the way that a lot of laws are written. The carve-out in particular comes courtesy of Section 230 of the Communications Decency Act. Basically, this is something, like you said, saying that if third-party users are making comments on a platform, the company that provides that platform is not liable for whatever those comments might be. The logic there was basically, if you are trying to police all of this stuff in real time before things go live, it would be such an onerous process for a very large platform that it would effectively ruin the utility of the platform, because there'd be no way to keep up with all of the comments, posts, whatever, being put up there. You think about companies like Facebook, likeAlphabet's YouTube, Twitter, this is really how they've made money for such a long time. It's all user-generated content. There are a lot of other applications beyond just social media sites that serve up ads that would probably be impacted by that. I'm thinking specifically here about Craigslist, the reviews that you see onYelpandAmazon, etc. This is a far-reaching possibility.
Kline:And let's be clear: This is only for the largest companies. Thirty million U.S. users, 300 million global users, earn $500 million in annual revenue. So this will not affect the comment section on your local weekly. This is really targeting big tech.
There's a few problems with this. Are you comfortable with the government being able to figure out if a Facebook or a YouTube algorithm is biased? Now, think of every government website you've ever been on. It's basically like going to AOL in 1994. And we also have a government that's become very divided that maybe isn't capable of determining what's a bias or what's not a bias. I do think there's some very dangerous language in what's being talked about here.
Lewis:The focus so far in this conversation has been bias, but I think the reality is, it doesn't matter what side of the aisle you're on; it seems like people are pretty annoyed at these platforms. I know that on both sides of the aisle, there have been representatives that have spoken out about these platforms needing to be policed more, needing some vetting process for the content that's out there. A lot of that coming after the deepfake video of Nancy Pelosi was circulating online. I think the reality for these businesses is, they've enjoyed all of this user-generated content for a very long time and had a free pass, and they are now going to have to start dealing with the fact that there are some serious repercussions for spreading content virally in a way that maybe they weren't prepared for.
Kline:And the technology is getting better. Let me explain what a deepfake is. Let's pretend there's a lot of video of Dylan and myself out there. We've done a lot of these shows. In theory, a not-that-talented programmer, videographer, whatever you want to call them, could take the video of us talking about Facebook and turn it into video of us saying terrible things about the U.S. men's national soccer team. I picked the most benign topic I could possibly think of. And we're just terrible. We're trashing the coach; we're doing everything. And we get a huge backlash. Facebook doesn't know it's fake. We don't know it's out there. And all of a sudden, there's this whole community of people who don't like us.
What happened with the Pelosi video is a fake video made her look like she was giving a speech while intoxicated. It wasn't true. Facebook didn't actually take the video down. They didn't really have the correct procedures in place to deal with it. So for getting this legislation, there needs to be very high-tech methods of figuring out if the video is real. There's been a Mark Zuckerberg deepfake video. It would be very easy to create a video of almost anyone saying almost anything. You can see, easily, why that would be very bad.
Lewis:Yeah, that was probably one of my favorite responses to the Nancy Pelosi issue -- someone decided to go out there and take one of Mark Zuckerberg just to see, OK, this is how you handled it when it was a political representative. How would you handle if it was your CEO saying some things that were obviously not so great to be seen in the public light?
Kline:Right. Are you a Howard Stern fan, Dylan?
Lewis:I'm not, but I know our man J-Mo is.
Kline:Howard Stern historically has taken people's audiobooks and cut them up to have them say things that are clearly things they would not say, but it sounds fake. [talking choppily] "The person is talking like this!" So, you get the joke. When you watch a deepfake video, you do not get the joke. You think, "Oh, my God, did Nancy Pelosi give a drunk speech? Is Dylan Lewis for some reason in theIndustry Focuschair, going on a terrible rant?" That has to be dealt with. Figuring out what is legal but odious speech that has to be protected -- you're allowed to have unpleasant views; you're not allowed to have libelous views. You're not allowed to push conspiracy theories that have been disproven. How do you police that? What's the happy medium between self-policing and the government stepping in and saying, "This is how it has to be done"?
Lewis:Yeah. I think the worst-case scenario for these companies is that it makes it much harder for them to have user-generated content that people want to engage with posted on the platform, because then it's harder for them to get people to come to the platform, which makes it harder for them to serve up ads. I think regardless, it's going to be something where, we've gotten very used to executives and management from Facebook, Alphabet, etc. appearing on Capitol Hill. It seems like that's going to continue.
Kline:It's going to continue. And look -- Facebook, YouTube, all these companies have to invest more heavily in figuring this out. They have to be able to show, "Yes, we kicked this person off our service. Here are the terms they violated. Also, here's how this is being applied unilaterally." Because, yeah, if you kick off a right-wing extremist for violating terms, that's OK, but if that person can come back and say, "Hey, wait a minute, here's this guy on the other side of the aisle. What he's doing violates the terms as well," you have to be able to defend that, and they're not spending the money.
What's not going to work -- and I can speak from experience; I used to edit two daily newspapers where I had to moderate the comments. These are papers maybe being read by 20,000 people total, and there were not enough hours in the day to moderate the comments-slash-deal with the people who, when I rejected their comment, usually because they personally insulted someone else, violating our policy, I would spend hours a day on the phone with people upset about it. You have to figure out how to keep this automated and to keep this real-time, and that means investing a lot more than they have been investing.
Lewis:Yeah. And the reality is, a couple of years ago, I think a company like Facebook could have said, "Oh, we haven't realized the scale that we've reached in terms of people accessing information and our role in spreading information and making it viral."
At least over the last three or four years, it's been pretty clear that, you know what? You guys know what you're doing, and you need to be held accountable for it, because there's too much bad information out there and it's really ruining public discourse.
Lewis:And we've been picking on Facebook a little bit, but this is just as big a problem on YouTube, where it's even harder to police because a lot of times, it's in the video, and text is very easy to algorithmically monitor, and video is not as easy. It's pretty much every platform that hits the scale. Obviously, Twitter has these problems. I'm sure there's three others. There's probably LinkedIn issues. I have a friend who legitimately makes money as a model, and LinkedIn takes down her modeling photos because they violate certain terms. On the other hand, that is what she does as a job, and it's a jobs platform. There's all sorts of gray area in dealing with all of this. There needs to be more open public discussion, and I think we need to take some of the politics out of this. This is not a right-left issue. This is a, is this thing I'm saying true, versus, is it a lie or an attempt to manipulate or create other sorts of confusion? Only a handful of companies have the money to deal with this, and they have to take the lead.
Lewis:Yeah, and this bill will be targeting the companies that have the money to deal with this. We'll see exactly how that plays out. We don't talk about legislation all that much on the show, but this one, because it was so targeted at some of the big companies in our space, felt worth discussing.
Kline:I think the gymnastics we have to go through to not be on a political side, because as a basic rule, we don't take sides in politics, makes this a challenge. But this is a greater American freedom of speech issue. Where does the line for responsibility end? As a company, are you responsible for what happens when people view the content on your platform? On some level, you have to be. I don't think there's any chance this legislation passes, but I do think this legislation is a wedge that forces change. I'm a pretty liberal guy, but I think that change is needed.
Lewis:Absolutely, Dan, I'm right there with you. I think you summed it up pretty well. Thanks for hopping on today's show!
Kline:Thanks for having me! We will be back in a few weeks talking fully about sandwiches.
Lewis:[laughs] Save it forCG! All right, listeners, that does it for this episode ofIndustry Focus. If you have any questions or you want to reach out and say hey, shoot us an email over atindustryfocus@fool.com, or you can tweet us @MFIndustryFocus. If you want more of our stuff, subscribe on iTunes, or you can catch the videos from this podcast over on YouTube. As always, people on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against stocks mentioned, so don't buy or sell anything based solely on what you hear. Thanks to Dan Boyd for all his work behind the glass today! For Dan Kline, I'm Dylan Lewis. Thanks for listening, and Fool on!
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors.Daniel B. Klineowns shares of Facebook and Microsoft.Dylan Lewisowns shares of Alphabet (A shares), Amazon, and Facebook. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, Microsoft, Twitter, and Zoom Video Communications. The Motley Fool recommends Uber Technologies and Yelp. The Motley Fool has adisclosure policy. |
Craig Wright's Bitcoin SV is a 'Total Ghost Town': Analyst
Citing data that demonstrates that over 86% of allBitcoin SVvolume originated from just 100 transactions, analyst Kevin Rooke told Twitter that Craig Wright's petcryptoproject is a “total ghost town.”
Indeed, the stated purpose of the Bitcoin SV fork is tohave the capacity for millions of transactions, making the base layer of the cryptocurrency to be competitive with the likes of Visa or Mastercard. This the reason Bitcoin SV developers want blocks that arepotentially gigabytes in sizeand argue that big data centers should be able to handle the traffic.
While it may be true that big data centers can handle the transaction volume, people immediately become concerned about the centralization that comes with such a barrier to entry.
Inevitably, it requires a lot of money to run a mining outfit that has to handle potentially thousands of gigabytes per week. You then have to serve them out, which requires even more bandwidth. Nevermind getting synced up with the network in the first place.
Read the full story on CCN.com. |
China's drone giant DJI hits back at U.S. security concerns
Another Chinese tech giant is now at the center of national security concerns raised by the U.S. Senate.
DJI, a Chinese company that dominates the commercial drone market in the U.S., published an 1800-word letter on Monday striking back against mounting concerns on Capitol Hill over spying, following the recent ban on the Chinese telecom giant Huawei.
“The security of a company’s products depends on the safeguards it employs, not where its headquarters is located,” the Shenzhen-based drone maker said in an open letter to Senators on Monday.
During a hearing hosted by Transportation Subcommittee of the Senate Commerce Committee last week, some of the experts testified that they believe that DJI has the potential to send data back to China, which poses serious risks.
“American geospatial information is flown to Chinese data centers at an unprecedented level. This literally gives a Chinese company a view from above of our nation. DJI says that American data is safe, but its use of proprietary software networks means how would we know?” said Harry Wingo, Chair of the Cyber Security Department from the National Defense University. “When you consider protecting a U.S. city at that level, to hand that information over is concerning.”
Catherine Cahill, director at the Alaska Center for UAS Integration, acknowledges the cost-effective system DJI has developed. But she believes “the data from DJI UAS was automatically being sent back to the manufacturer in China.”
In a letter DJI sent to the subcommittee on Monday, the drone maker vigorously denied the accusation.
“DJI drones do not share flight logs, photos or videos unless the drone pilot deliberately chooses to do so. They do not automatically send flight data to China or anywhere else,” Mario Rebello, Vice President and Regional Manager of North America at DJI, wrote. “They do not automatically transmit photos or videos over the internet. This data stays solely on the drone and on the pilot’s mobile device. DJI cannot share customer data it never receives.”
Washington has been raising red flags about Chinese tech companies over the last few months. In May, the Department of Homeland Security issued an alert warning that commercial drones manufactured by Chinese suppliers may be collecting and transmitting information back to China, without naming DJI. The U.S. also blacklisted Huawei and considered banning China’s security camera makers like Hikvision.
As China-U.S. trade tensions drag on, the trust level between the two countries, especially in high-tech areas, has also deteriorated. Some lawmakers in the U.S. worry about the backdoors to Beijing that Chinese companies may have. Meanwhile, China has accused the U.S. of trying to stop the Chinese from developing their technology.
Washintgon’s concerns haven’t deterred DJI’s efforts to win more government contracts. On Monday, DJI launched a government edition drone system, which blocks access to the internet and only stores information on the device. Unlike Huawei, whose smartphone and telecom products haven’t had the chance to enter the mainstream market in the U.S., DJI products are widely sold in stores like BestBuy and even used by police in New York and California.
“We were aware of the concerns that were shared early on about the data transmission or potential data transmission with DJI,” Lieutenant Matt Snelson in Fremont, Californiatold Reutersin May. “We did research, and we don't feel like that is a concern for our agency or for our program at this point. We’re confident that our data is secure and and staying private.”
Krystal Hu covers technology and China for Yahoo Finance. Follow her onTwitter.
Read more:
• New bipartisan bills threaten Chinese IPOs and Chinese companies listed in the U.S.
• Amazon just got FAA approval to fly drones for deliveries
• Huawei is still winning 5G contracts around the world despite the U.S. ban
Read the latest financial and business news from Yahoo Finance
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Here's Why You Should Invest in NorthWestern (NWE) Stock Now
Earnings estimates forNorthWestern CorporationNWE have been revised upward in the past 60 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings has moved up 6.2% and 5.5% to $3.59 and $3.64 per share, respectively.
Let’s focus on the factors that make the stock an appropriate pick at the moment.
Zacks Rank&Earnings Surprise History
The stock currently carries a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
The company’s average four-quarter positive earnings surprise is 18.74%.
Price Performance
In the past 12 months, shares of the company have rallied 28.1% compared with the industry’s rise of 17.7%.
Long-Term Growth& Dividend Yield
The company’s long-term (3 to 5 years) earnings growth is pegged at 3.03%.
Currently, the company has a dividend yield of 3.12% compared with the Zacks S&P 500 composite’s 1.91% and the industry’s 2.76%.
Long-Term Capital Investment
The company plans to invest $1.6 billion during the 2019-2023 time period. The company’s infrastructure investment is focused on a stronger and smarter grid to improve the customer experience, while enhancing grid reliability and safety.
Other Key Picks
Some other top-ranked stocks from the same industry are DTE Energy Co. DTE, FirstEnergy Corp. FE and Black Hills Corp. BKH, each holding a Zacks Rank of 2 (Buy).
DTE Energy pulled off an average positive earnings surprise of 12.24% in the last four quarters. The company’s long-term earnings growth is pegged at 6%
FirstEnergy pulled off an average positive earnings surprise of 5.09% in the last four quarters. The company’s long-term earnings growth is pegged at 6%.
Black Hills delivered an average positive earnings surprise of 5.69% in the last four quarters. The company’s long-term earnings growth is pegged at 4.80%
More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFirstEnergy Corporation (FE) : Free Stock Analysis ReportDTE Energy Company (DTE) : Free Stock Analysis ReportBlack Hills Corporation (BKH) : Free Stock Analysis ReportNorthWestern Corporation (NWE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
How Financially Strong Is L'Occitane International S.A. (HKG:973)?
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While small-cap stocks, such as L'Occitane International S.A. (HKG:973) with its market cap of HK$23b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Evaluating financial health as part of your investment thesis is crucial, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. The following basic checks can help you get a picture of the company's balance sheet strength. However, this is just a partial view of the stock, and I recommend youdig deeper yourself into 973 here.
973's debt levels surged from €88m to €578m over the last 12 months , which accounts for long term debt. With this growth in debt, the current cash and short-term investment levels stands at €144m to keep the business going. Moreover, 973 has produced €169m in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 29%, indicating that 973’s current level of operating cash is high enough to cover debt.
Looking at 973’s €258m in current liabilities, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.15x. The current ratio is the number you get when you divide current assets by current liabilities. For Personal Products companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
With a debt-to-equity ratio of 53%, 973 can be considered as an above-average leveraged company. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. We can check to see whether 973 is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In 973's, case, the ratio of 42.14x suggests that interest is comfortably covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
Although 973’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for 973's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research L'Occitane International to get a more holistic view of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for 973’s future growth? Take a look at ourfree research report of analyst consensusfor 973’s outlook.
2. Valuation: What is 973 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 973 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. |
Billionaires: Please Tax Us More
A group of extraordinarily wealthy Americans that includes Facebook co-founder Chris Hughes, Walt Disney Company heiress Abigail Disney and investor and philanthropist George Soros have issued a collective call for higher taxes on the rich.
In aletterpublished Monday, the 19 signatories say that the U.S. has “a moral, ethical and economic responsibility to tax our wealth more” as part of a national effort to strengthen democracy, boost the economy, improve health care and address climate change.
“We are writing to call on all candidates for President, whether they are Republicans or Democrats, to support a moderate wealth tax on the fortunes of the richest one-tenth of the richest 1% of Americans -- on us,” the letter says. “The next dollar of new tax revenue should come from the most financially fortunate, not from middle-income and lower-income Americans.”
The letter notes that several presidential candidates including Sen. Elizabeth Warren have proposed a wealth tax and says that arguments against such a policy “are mostly technical and often overstated.” The complexities of imposing such a tax can be solved easily enough, the authors say, and shouldn’t distract the nation from the important issues at hand. “Instituting a wealth tax is in the interest of our republic,” the letter says, and “taking on this tax is the least we can do to strengthen the country we love.”
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3 Keys to General Mills' Upcoming Earnings
General Mills(NYSE: GIS)shares have jumped by 19% over the past 12 months, but when you factor in the consumer packaged goods (CPG) conglomerate's ample 3.6% dividend, shareholders have enjoyed a 24% total return over the one-year period. The company's rise partially reflects shareholders' endorsement of its $8 billion acquisition of Blue Buffalo Pet Products in late April 2018, by which it obtained depth in one of the faster-growing CPG product categories.
But investors have also warmed to the company's commitment to balanced top- and-bottom-line growth. General Mills closes out its fiscal 2019 year with a fourth-quarter report that will be released on June 26 before the markets open for trading. Below, we'll review three key themes investors should familiarize themselves with beforehand to provide context for the upcoming filing.
Image source: Getty Images.
General Mills tweaked its full-year guidance on a number of fronts last quarter. The company projects that fiscal 2019 reported sales will finish at the lower end of a 9% to 10% year-over-year growth range, which includes the impact of the Blue Buffalo acquisition. Management has advised investors that organic sales will hit the low end of a 0% to 1% projected increase.
Adjusted operating profit on a constant currency basis is forecast to finish at the high end of a 6% to 9% band against the $2.6 billion in adjusted operating profit the company booked in fiscal 2018.
Adjusted diluted earnings per share (EPS), in constant currency, are forecast to grow 0% to 1% beyond the $3.11 earned in fiscal 2018. This expectation was revised upward last quarter from a previous target of negative 3% to flat growth against last year's EPS.
Given that General Mills adjusted its targets with just one quarter remaining in the fiscal year, there's a high probability that it will meet its guidance ranges. Earnings surprises, if any, will likely be weighted to the upside.
Last quarter, General Mills surprised investors with solidly improved profit margins.Gross marginjumped 200 basis points to 34.4% due to pricing power, cost-cutting initiatives, productivity improvements, and the addition of higher-margin sales from Blue Buffalo. While roughly 2 percentage points of profitability improvement may seem modest, it's a significant pop for a multinational CPG company.
Better margin performance is partially responsible for the higher expectations for full-year adjusted diluted EPS noted above. While management discussed gradual, and not dramatic, margin expansion in the coming fiscal year onlast quarter's earnings conference call, that profits are growing in a competitive environment is in itself a positive development. It suggests that tinkering with product mix and ramping up product innovation to boost the top line, gaining a more substantial footprint in the pet category, and successfully implementing cost-cutting, together can sustain long-term earnings growth while also funding the company's rising, generous dividend.
In sum, while not expected, another upside surprise on gross margin may positively impact General Mills stock when earnings hit the newswires.
General Mills is set to report a strong fourth quarter in its pet foods segment. In the second fiscal quarter of 2019, pet sales decreased by 7% year over year, as Blue Buffalo faced a difficult comparison to the prior year, in which it launched broadly across the U.S. food, drug, and mass (FDM) channel. Last quarter, pet segment sales increased by 4% year over year, as expansion in the FDM and e-commerce channels offset weakness in the pet specialty category.
Management has advised investors to expect that pet segment growth will "accelerate rapidly" in the fourth quarter as it doubles pet food distribution and widens Blue Buffalo's FDM product assortment. In addition, management has pointed to both cost savings and acquisition synergies as potentially driving pet food margins higher in the final quarter of the year.
Essentially, the fourth quarter should push the pet segment into double-digit revenue and operating profit growth for the full year (exclusive of charges related to the Blue Buffalo acquisition). Investors will expect General Mills' newest growth driver, the pet segment, to follow through on the company's promised surge when results are released on Wednesday.
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Asit Sharmahas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
You Might Like L'Occitane International S.A. (HKG:973) But Do You Like Its Debt?
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Investors are always looking for growth in small-cap stocks like L'Occitane International S.A. (HKG:973), with a market cap of HK$23b. However, an important fact which most ignore is: how financially healthy is the business? Evaluating financial health as part of your investment thesis is crucial, as mismanagement of capital can lead to 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, these checks don't give you a full picture, so I’d encourage you todig deeper yourself into 973 here.
973's debt levels surged from €88m to €578m over the last 12 months – this includes long-term debt. With this growth in debt, 973's cash and short-term investments stands at €144m to keep the business going. On top of this, 973 has generated cash from operations of €169m in the last twelve months, resulting in an operating cash to total debt ratio of 29%, indicating that 973’s current level of operating cash is high enough to cover debt.
With current liabilities at €258m, the company has been able to meet these commitments with a current assets level of €555m, leading to a 2.15x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Personal Products 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 debt reaching 53% of equity, 973 may be thought of as relatively highly levered. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In 973's case, the ratio of 42.14x suggests that interest is comfortably covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
973’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. Since there is also no concerns around 973's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for 973's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research L'Occitane International to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for 973’s future growth? Take a look at ourfree research report of analyst consensusfor 973’s outlook.
2. Valuation: What is 973 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 973 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. |
Second US Congressional Hearing Is Scheduled on Facebook’s Libra Crypto
The U.S. House Financial Services Committee will host a hearing on Facebook’s libra cryptocurrency next month, one day after the Senate Banking Committee holds its previously announced hearing.
Maxine Waters, chair of the powerful House committee, announced the hearing Monday,The Hill reported, after calling on Facebook to suspend development of the projectmultiple timeslast week. The hearing is scheduled for July 17, and no witness list has yet been released.
She toldCNBC on Thursdaythat “It’s very important for them to stop right now what they’re doing so that we can get a handle on this,” adding:
Related:Facebook Seeking Crypto Wallet Data Engineer, Regulatory Policy Expert
The Senate Banking Committeeannounced on Wednesdaythat it would hold its own hearing on July 16, intending to ask Facebook’s team about the project.
The committee had already sent Facebook a letter last month outlining a number of questions revolving around Facebook’s privacy and consumer data storage practices.
Facebookunveiled libralast week, outlining an ambitious plan to forma governing counciland usetwo tokensto form a nation-independent financial ecosystem.
Related:BIS Wants ‘Level Playing Field’ for Banks Amid Threat from Facebook
The social media giant intends to help 1.7 billion unbanked individuals access financial services, as well as streamline payments through its Messenger and WhatsApp platforms.
Facebookimage via Shutterstock
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What Carnival's Management Wants Shareholders to Know
Perhaps it's hyperbole to call it a perfect storm, butCarnival Corporation(NYSE: CCL)certainly encountered a confluence of factors that dimmed forward guidance when the cruise linereported fiscal second-quarter 2019 earningson June 20. Shares have surrendered roughly 13% of their value since the report last week.
Carnival reduced its estimates for full-year adjusted earnings per share to between $4.25 and $4.35, compared to previous guidance of $4.35 to $4.55. Executives were quick to reassure shareholders of the company's long-term value creation opportunities, and the temporary nature of some of the earnings headwinds.
Below, we'll review relevant comments made by Carnival CEO Arnold Donald on the company's earnings conference call, which provide perspective on the cloudier outlook as the cruise operator heads into the back half of its fiscal year.
From our initial guidance for 2019, we acknowledge that we would not deliver for this year the growth rates in earnings and returns that our business is capable of, and that we are committed to deliver over time. And we are disappointed in the reduction to that guidance.
Donald's comment above is taken from a section of his prepared remarks on the earnings call which dealt with voyage disruptions of the company'sVistacruise ship. On the day of its earnings release, Carnival announced that three sailings of theCarnival Vistadeparting the port of Galveston, Texas had been scrapped for the July 6, July 13, and July 20 departures, due to a technical issue with the ship's maximum cruising speed.
TheVista's voyage disruptions will trim between $0.08 and $0.10 from full-year earnings per share, due to modified itineraries caused by the cruising-speed abnormality, the July sailing cancellations, and the unavailability of the ship's normal repair spot because of a damaged dry dock in Grand Bahama Shipyard.
Donald relayed to investors that the company was working closely with the ship manufacturer on this issue, as similar equipment is in place on other Carnival ships. At this point, management doesn't foresee additional disruptions on other ships -- the impact will apparently be limited to theVista, and to the stated effect on full-year earnings.
Image source: Getty Images.
[O]ur Continental European brands have been facing heightened geopolitical and macroeconomic headwinds, which has impacted operating performance this year. Our growth in these markets has continued to outpace general travel, but growing into a contracting travel market has put pressure on ticket prices this year.
In Carnival's June 20 earnings press release, the company disclosed that favorable booking trends in the U.S. and Australia would be offset by lower revenue yields due to weakness in the European and Chinese markets.
During the earnings call, Donald noted that the company's German brand, AIDA Cruises, boasts some of the highest financial returns in the company's portfolio. Nonetheless, booking trends among German land-based tour operators are running behind the comparable period from last year, and while AIDA is experiencing double-digit revenue growth, it's having to compete more heavily on price in 2019.
Additionally, there's uncertainty over Brexit, a recession in Italy, the "yellow vest" protests in France, and rate pressure from new land-based resort openings in Turkey and North Africa. All are challenging revenue and margins.
Management's response to sluggish conditions in Europe is typical of Carnival, in that the company is looking to upgrade its capacity in the region with new ships over the next several years. This should improve the European portfolio'sreturn on invested capitalby attracting new passengers and delivering fuel and other cost efficiencies. But at least in the immediate time frame, a weak European market is a primary factor behind the total organization's reduced full-year outlook.
[T]he reality is: Cuba is gone for the foreseeable future, and so it didn't add into plans for next year. And therefore, that higher-yielding itinerary is off the table. And companies like us and others will have to adapt to see what they can generate.
As was widely reported in the media, a sudden change in U.S. regulatory policy regarding travel to Cuba in early June caused immediate disruption among several cruise lines, including Carnival, that were in the middle of Cuba-bound itineraries. The U.S. government policy change catalyzed an impact of $0.04 to $0.06 on Carnival's full-year projected earnings per share.
Both the CEO and the CFO, David Bernstein, emphasized that the company isn't penciling in any revenue from Cuba as it looks ahead to next year. Bernstein noted that Carnival's competitors had built up short-cruise capacity to service Cuba; this dynamic introduces some uncertainty into the competitive picture, as it's unclear if this capacity will be put to use in other Caribbean destinations, or simply pulled back.
On a positive note, executives observed that the Caribbean region has been enjoying strong growth in bookings this year. So while the travel restrictions to Cuba will dampen incremental, high-margin revenue opportunities, at least some of the lost revenue will be replaced, given higher demand for other Caribbean destinations.
This point is consonant with management's larger message during the call. That is, while several separate conditions hit the company's full-year outlook, Carnival has weathered such storms in the past while still delivering tangible earnings growth. In management's view, none of the current headwinds is a long-term catalyst for revenue or margin compression.
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Asit Sharmahas no position in any of the stocks mentioned. The Motley Fool recommends Carnival. The Motley Fool has adisclosure policy. |
Bernie Sanders Goes Big on Student Debt Forgiveness
Bernie Sanders is taking the idea of student debt cancelation to a new level. The Vermont senator and Democratic presidential candidate unveiled aplanon Monday that would have the U.S. government pay to entirely eliminate the $1.6 trillion in student debt held by 45 million Americans.
The Sanders plan is broader than debt-forgiveness proposals from other Democratic presidential contenders, including Sen. Elizabeth Warren of Massachusetts and Julián Castro of Texas. Warren has proposed $640 billion in student loan cancellation, including up to $50,000 in debt for people earning under $100,000. But Warren’s plan offers no relief to those who earn more than $250,000.
Sanders’ proposal, which would also make tuition free at public universities, community colleges and trade schools, would be paid for by a new Wall Street tax that the Sanders campaign says will raise some$2.4 trillionover 10 years. Sanders would place a 0.5% tax on stock trades, a 0.1% tax on bond trades and a 0.005% fee on derivative trades.
“Wall Street speculators nearly destroyed the economy a decade ago, and the American people bailed them out,” Sanders said Monday. “Now it's time for Wall Street to come to the aid of the middle class of this country.”
Other experts put the total cost of Sanders’ plan at$3 trillion, and some suggest that his Wall Street tax would raise less than his camp projects. Critics of student debt forgiveness proposals, including both conservatives and some Democrats, argue that they would disproportionately benefit higher-educated Americans, who tend to have higher incomes — and thus would amount to a giant welfare programfor the upper-middle class.
“The cost will march toward $3 trillion and benefit a lot of wealthy families and future high-earners,” Brian Riedl, an analyst at the Manhattan Institute, a libertarian-leaning think tank, toldThe Washington Post, which first reported the Sanders plan. “Of all problems requiring a $3 trillion federal expenditure, the college costs of middle- and upper-class college graduates seem lower-priority.”
But proponents say that paying for student debt relief by taxing the affluent will reduce inequality, stimulate the economy and help lower-income Americans advance financially by freeing up those with heavy debt burdens to do things like buy homes.
Slate’s Jordan Weissmannsuggeststhat, as generous as it is, the Sanders plan doesn’t go far enough:
“The problem with Sanders’ approach is that while it would forgivea lotof graduate school debt sitting on the books today, it does little to address the problem of graduate school debt going forward. His bill would cap interest rates on all student loans at 1.88 percent which, sure, would be helpful. But it wouldn’t lessen the amount students need to borrow in the first place, and that’s the more serious issue.”
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Beto O'Rourke Proposes 'War Tax'
Democratic presidential candidate Beto O’Rourke is proposing to create a “war tax” that would fund a trust fund dedicated to veterans’ benefits including health care and disability compensation. The tax would go into effect “at the start of any newly authorized war,”O’Rourke’s proposal states, and would not apply to households with members currently in the military or veterans
Here’s how much different households would pay under the proposal:
• Income less than $30,000 a year: $25
• less than $40,000: $57
• less than $50,000: $98
• less than $75,000: $164
• less than $100,000: $270
• less than $200,000: $485
• more than $200,000: $1,000.
O’Rourke is also calling for an end to wars in Afghanistan and Iraq, which he says will save $400 billion, half of which he proposes to spend on benefits for veterans of those wars.
“Eighteen years into the war in Afghanistan, and nearly three decades after our first engagement in Iraq, the best way to honor our veterans’ service is to cancel the blank check for endless war — and reinvest the savings to ensure every American can thrive upon their return home,” the former representative from Texas said in aprepared statementMonday.
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Onex's WestJet buyout gets nod from Canada's Transport Minister
June 24 (Reuters) - Private equity firm Onex Corp said on Monday its C$3.5 billion buyout offer for WestJet Airlines Ltd received approval from Canada's Minister of Transport, clearing the first of several regulatory hurdles.
The deal still needs several other regulatory approvals, WestJet shareholder nod and final approval by the Court of Queen's Bench of Alberta.
Onex, controlled by billionaire Gerry Schwartz, agreed to buy WestJet in May for C$31 ($23.52) per share.
Transport Minister Marc Garneau had earlier said that at first glance the proposed takeover looked fairly standard in terms of an acquisition. ($1 = 1.3179 Canadian dollars) (Reporting by Arundhati Sarkar in Bengaluru) |
What's Next for McDonald's (MCD) Stock as Industry Dives into Plant-Based Meat?
Shares of McDonald's MCD have jumped 15% this year to outpace its industry’s 10.5% climb. MCD’s jump comes as the overall food industry continues to evolve, which includes a recent wave of hype surrounding plant-based meat offerings from the likes of Beyond Meat BYND and others.
With this in mind, let’s see what’s next for the historic fast-food burger powerhouse as MCD stock rests near its 52-week and all-time highs.
Industry Trend Overview
Investors have heard for years that consumers’ eating habits have transformed, as they search for more fresh and healthier options. This helped give rise to companies like Chipotle CMG. Recently, Beyond Meat’s stellar run as a newly public company has left Wall Street clamoring to figure out if plant-based meats are the future, or just the next of a slew of healthy eating fads that may fade.
Beyond Meat is currently sold across roughly 30,000 grocery stores, restaurants, and food-service operations. This list includes Safeway, Publix, Kroger KR, and many more. And it’s not just upstart food companies anymore, Tyson Foods TSN and other industry giants have announced their plans to enter the plant-based meat market as more U.S. consumer start to become flexitarians.
Along with a new wave of offerings, comes the impact of delivery. Online and mobile food ordering and delivery firm Grubhub GRUB has expanded and Uber Eats is projected to play in the vital role for newly public ride-hailing power Uber UBER. Starbucks SBUX has pushed deeper into delivery over the last year and rival Dunkin' DNKN just recently announced a partnership with Grubhub to begin its nationwide delivery rollout.
MCD Outlook
McDonald’s has also adapted to these changes, which has helped its stock price crush the S&P 500 and its industry over the past three years, five, and ten years. These moves include store remodels, technological improvements, digital expansion, and menu changes. This includes a nationwide rollout of fresh beef offerings for its Quarter Pounder burgers over the last year, which McDonald’s said helped it sell 40 million more quarter-pound burgers during the first quarter of 2019 compared to the year-ago period.
McDonald’s has also bolstered its delivery offering in partnership with Uber Eats. On top of that, McDonald’s said Monday that it grew its share of the burger market in the informal-eating-out category for the first time in five years.
Last quarter, MCD’s global comparable sales jumped an impressive 5.4%. On top of that, UBS Evidence Lab conducted a survey of adult fast-casual consumers that found McDonald’s looks best positioned to post strong same-store sales and traffic growth. This put the Chicago-based burger giant ahead of second-place Wendy’s WEN, Burger King, Subway, and both Yum Brands’ YUM Taco Bell and KFC. UBS analyst Dennis Geiger raised his MCD price target from $185 to $203 in mid-June on the back of this survey. “Consumers continue to have particularly favorable perceptions of the brand and are inclined to increase visits going forward, w/ MCD focused on sales drivers that should resonate with consumers,” Geiger wrote in a mid-June note to clients.
Moving on, our Zacks Consensus Estimate calls for MCD’s adjusted second-quarter earnings to climb 3% to $2.05 per share. Meanwhile, its full-year fiscal 2019 EPS is projected to pop 1.8% on nearly flat revenue expansion. Peeking further ahead, MCD’s adjusted 2020 earnings are expected to surge 7.9% above our current-year estimate on 2.15% higher revenues.
Bottom Line
McDonald’s looks poised to expand amid the ever-changing restaurant and food industry, which could include a plant-based offering down the road. The firm is also a dividend payer that has raised its payout every year since paying its first dividend in 1976. MCD’s current annualized dividend rests at $4.64 per share, with a 2.27% yield.
Some of MCD’s valuation metrics are a little stretched at the moment compared to where they have been over the last serval years, as well as compared to its industry’s average. This is, however, to be somewhat expected with its stock up 32% in the last 24 months, against its industry’s 18% average.
McDonald's is currently a Zacks Rank #3 (Hold) that could continue to climb as it adapts to changing consumer habits. In the end, interested investors should ask themselves if they see McDonald’s remaining a staple in the U.S. and around the world for years to come?
MCD stock closed regular trading Monday at $203.92 per share, down just below its 52-week intraday high of $206.39. The company is scheduled to release its Q2 2019 financial results in late July.
More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportGrubhub Inc. (GRUB) : Free Stock Analysis ReportTyson Foods, Inc. (TSN) : Free Stock Analysis ReportChipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis ReportStarbucks Corporation (SBUX) : Free Stock Analysis ReportYum! Brands, Inc. (YUM) : Free Stock Analysis ReportThe Wendy's Company (WEN) : Free Stock Analysis ReportDunkin' Brands Group, Inc. (DNKN) : Free Stock Analysis ReportMcDonald's Corporation (MCD) : Free Stock Analysis ReportThe Kroger Co. (KR) : Free Stock Analysis ReportBeyond Meat Inc. (BYND) : Free Stock Analysis ReportUber Technologies Inc. (UBER) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
You Might Like Shangri-La Asia Limited (HKG:69) But Do You Like Its Debt?
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Investors are always looking for growth in small-cap stocks like Shangri-La Asia Limited (HKG:69), with a market cap of HK$36b. However, an important fact which most ignore is: how financially healthy is the business? Understanding the company's financial health becomes vital, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. Nevertheless, this is not a comprehensive overview, so I’d encourage you todig deeper yourself into 69 here.
69's debt level has been constant at around US$5.2b over the previous year including long-term debt. At this constant level of debt, 69 currently has US$1.1b remaining in cash and short-term investments to keep the business going. On top of this, 69 has generated cash from operations of US$446m over the same time period, leading to an operating cash to total debt ratio of 8.6%, meaning that 69’s current level of operating cash is not high enough to cover debt.
Looking at 69’s US$1.5b in current liabilities, it seems that the business has been able to meet these commitments with a current assets level of US$1.6b, leading to a 1.11x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Hospitality companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
69 is a relatively highly levered company with a debt-to-equity of 78%. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In 69's case, the ratio of 2.12x suggests that interest is not strongly covered, which means that lenders may be more reluctant to lend out more funding as 69’s low interest coverage already puts the company at higher risk of default.
Although 69’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for 69's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Shangri-La Asia to get a more holistic view of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for 69’s future growth? Take a look at ourfree research report of analyst consensusfor 69’s outlook.
2. Valuation: What is 69 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 69 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. |
Hidden oil spill: New study contradicts owner's claims
NEW ORLEANS (AP) A new federally led study of oil seeping from a platform toppled off Louisiana's coast 14½ years ago found releases lower than other recent estimates, but contradicts the well owner's assertions about the amount and source of oil. Oil and gas have been leaking into the Gulf of Mexico since a subsea mudslide caused by Hurricane Ivan on Sept. 15, 2004, knocked over a Taylor Energy Co. production platform, which dragged and broke a bundle of well pipes. Taylor capped nine wells but said it couldn't cap 16. The company contends oil sheens on the water's surface indicate there's only a dribble of 2.4 to 4 gallons (9 to 15 liters) of oil and gas a day. Taylor Energy, which is fighting a federal order to stop the seepage, also says any oil rising from the site is from oil-soaked sediment and any gas is produced by living organisms. "The results of this study contradict these conclusions," said the report paid for by the federal Bureau of Safety and Environmental Enforcement, which oversees offshore drilling, and written by two National Oceanic and Atmospheric Administration scientists and one from Florida State University. Taylor said in an emailed statement that it wants verifiable scientific data about the leak and a scientifically and environmentally sound solution. The company has said remaining pipes are buried under so much oily and treacherous silt that stopping any leaks would do more environmental damage than letting them be. No coastal environmental damage has been reported from the ongoing seepage, unlike the 2010 Deepwater Horizon oil spill, an outside scientist said. The BP spill oiled at least 400 square miles (1,000 square kilometers) of sea floor and 1,300 miles (2,000 kilometers) of shoreline from Texas to Florida, killing thousands of birds and contributing to dolphin deaths for years. The study's authors figure that the total released each day from the Taylor site could have been as much as 4,500 gallons (17,000 liters) a day. They used sonar and a newly developed "bubblometer" to measure oil and gas bubbles rising through the water. Story continues These are based on direct measurements, while previous estimates have relied on satellite and remote sensing of the sheen of oil resulting from the seep, Chris Taylor, of NOAA's National Centers for Coastal Ocean Science in Beaufort, North Carolina, said Friday. The figure is a conservative one, the report said. Andrew Mason of the NOAA centers' office in Silver Spring, Maryland, said, "These are not final definitive government estimates," noting that they will figure in the government's official estimate after additional study. The researchers said the oil cannot be from sediment because it's only mildly biodegraded. The team's methods look reasonable, said Ed Overton, a professor of environmental studies at Louisiana State University who was not part of the study. "There are no standard methods for this type of work," because the amounts of oil involved are relatively small, he said. NOAA reported two possible ranges: one using sonar from a boat and an underwater robot; the other using their bubblometer a box with a video camera to get pictures of the bubbles, topped by a funnel to collect the oil and gas. The sonar showed releases of 378 to 1,974 gallons (1,430 to 7,472 liters) a day; the bubblometer data indicated 798 to 4,536 gallons (3,020 to 17,170 liters) daily. The extent of the pollution has been an issue since environmentalists investigating the 2010 BP oil spill noticed a persistent sheen outside the heavily oiled area. A 2015 investigation by The Associated Press revealed evidence that the leak was worse than the company or government had publicly reported. Afterward, the Coast Guard provided a new leak estimate about 20 times larger than the company's at the time. The Coast Guard said in mid-May that the recurrent sheen about 11 miles (18 kilometers) from New Orleans had become "barely visible" since a containment system was installed several weeks earlier. Court papers said the system had captured more than 30,000 gallons (113,000 liters) of oil over 30 days. That works out to a daily amount in the middle of the sonar estimate and at the low end of the bubblometer estimate, the new report said. A federal expert's report in Taylor Energy's lawsuit put the figure at 10,500 to 29,400 gallons (39,700 to 111,300 liters) a day. That could be interpreted to mean more oil may have leaked there since 2004 than the estimated 130 million gallons (493 million liters) from the BP gusher in 2010. But Mason said the new report can't be used to extrapolate the total spilled from the Taylor site. And Overton of LSU said unlike the Deepwater Horizon, this is a slow, small seep that hasn't oiled wildlife or beaches. "Whatever the volume ... it doesn't mean it piles up so that you've got a Gulf full of oil," he said. |
Video of Jussie Smollett With Rope Around His Neck Released by Chicago Police
The Chicago Police Department released new surveillance footage and files in regards to the Jussie Smollett hoax case on Monday, including one that shows the “Empire” actor shortly after the alleged attack. In one of the videos, police body-cam footage shows authorities entering Smollett’s Chicago apartment, led by his manager, Frank Gatson. Smollett is found by the officers with ropes strung around his neck, which he says were put on by the attackers. When officers ask him if he wants to take the rope off his neck, he does, but says he “just wanted you all to see it.” Related stories Video of Jussie Smollett With Rope Around His Neck Released by Chicago Police Matthew Shepard's Mother: Why Hate Crime Is Only Conquered When We Speak Up Jussie Smollett Will Not Return to 'Empire,' Lee Daniels Says “There’s bleach on me, they poured bleach on me,” Smollett adds. The police inform him that they’re recording, to which Smollett responds, “I don’t want to be filmed,” and the officers agree to turn off the cameras. Smollett claimed to have been assaulted by two men who shouted racial and homophobic slurs at him on Jan. 29. The police later concluded that he had hired two men, Abel and Ola Osundairo, to carry out the attack. Smollett continues to deny that the event was staged. He was indicted on 16 counts of filing a false police report, but the charges were later dropped in exchange for a $10,000 bond. That decision met with immediate backlash, as State’s Attorney Kim Foxx was accused of cutting a sweetheart deal for the actor. Last week, a judge ordered the appointment of a special counsel to reexamine the case, with the option of filing fresh charges against the actor. The city of Chicago is also pursuing Smollett in civil court to recoup the $130,000 overtime cost stemming from the investigation. Sign up for Variety’s Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
98% of BSV Transactions Used for Writing Weather Data on Blockchain: Report
More than 98% oftransactionson the Bitcoin SVblockchainover the past 30 days have been used for writing data from a weather app,Twitterpersonality Painted Frognotedtoday, June 24.
Citing data from bitcoin cash (BCH) blockchain visualiser Trends.cash, Painted Frog noted that the vast majority of BSV transactions have been implemented so far for sharing weather data through bitcoin sv-powered app WeatherSV.
Performed actions on BSV blockchain over the past 30 days. Source: Trends.cash
According to the website, other BSV implementations over the past 30 days included bitcoin cash-based social networkMemo, an incentivized BDV tool calledOpen Directory, as well as BSV-powered payment systemMoney Button. With that, WeatherSV has accounted for more than 1.2 million transactions over the period, while Memo, ranked second according to the number of transactions, has recorded just about 9,000 transactions for the same time span.
Top ten actions on Bitcoin sv blockchain over the past 30 days. Source: Trends.cash
As Painted Frog noted in histweet, WeatherSV is actually a paid subscription service that hourly copies data from an existing weather website OpenWeatherMap.org, generating the most of transactions on BSV network.
While Bitcoin Cash is the first hard fork of Bitcoin,createdback in August 2017, Bitcoin SV is a hard fork version of Bitcoin Cash, and isledbyself-proclaimedcreator of Bitcoin,Craig Wright, who has recentlyfailedto disclose his bitcoin holdings per court order.
In May 2019, Wright created a wave of discontent in crypto community byfilinga copyright claim to a part of bitcoin’s code and its white paper.
At press time, bitcoin cash is the fourth biggest cryptocurrency by market cap, trading at $473.41, while bitcoin SV is ranked eighth, trading at $235.71, according to data fromCoinMarketCap.
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Better Buy: Procter & Gamble vs. Philip Morris
The past few years have been dominated by high-flying, fast-growing technology companies.Amazon.com,Apple, andMicrosoft, for instance, have allzoomed past the $1 trillion valuation. That has left investors in nontechnology companies on the sidelines from such growth.
The two companies we're comparing today -- consumer goods giantProcter & Gamble(NYSE: PG)and Marlboro ownerPhilip Morris(NYSE: PM)-- fall in the second camp of nontech stocks. But that doesn't mean they're unimportant: They have a combined market capitalization of over $400 billion. And they're very popular with retirees for one big reason: They offer significant, sustainable dividends.
Image source: Getty Images
Between these two quieter dividend stalwarts, which is the better buy today? We'll never know with 100% certainty, but by comparing them on three different continua, we can get a better idea for which we prefer moving forward.
First, we want to see which company would fare better, financially speaking, if there were a sudden economic crisis. While these don't tend to happen often (think: the Great Recession of 2008), when they do, they can wipe out huge swaths of the business world.
We not only want to own shares of a company that can survive such a downfall, but even thrive by grabbing market share. Here's how these two stack up -- keeping in mind that Procter & Gamble is valued at more than twice the size of Philip Morris.
[{"Company": "Procter & Gamble", "Cash": "$10 billion", "Debt": "$21 billion", "Free Cash Flow": "$12 billion"}, {"Company": "Philip Morris", "Cash": "$8 billion", "Debt": "$24 billion", "Free Cash Flow": "$8 billion"}]
Data source: Yahoo! Finance. Figures rounded to nearest whole number Cash includes short- and long-term investments. Free cash flow presented on trailing-12-month basis.
With both of these companies, we have a familiar storyline. Very healthy free cash flows are offset by fairly high debt levels. All things considered, Procter & Gamble's cash, debt, and free cash flow levels are all superior to Philip Morris'. While I'm not crazy about the situation at either company, Procter & Gamble comes out ahead.
Winner = Procter & Gamble
Next, we have valuation. If you're a beginner investor, you might think this is as easy as looking at a stock's price or some other metric to see if it's "expensive." Sadly, it's not as easy as that. Instead, here are five metrics I like to consult when considering two dividend-paying stocks.
[{"Company": "Procter & Gamble", "P/E": "26", "P/FCF": "24", "PEG Ratio": "3.8", "Dividend Yield": "2.7%", "FCF Payout": "63%"}, {"Company": "Philip Morris", "P/E": "15", "P/FCF": "15", "PEG Ratio": "2.8", "Dividend Yield": "5.8%", "FCF Payout": "88%"}]
Data source: Yahoo! Finance, E*Trade. P/E is presented using non-GAAP earnings when applicable.
Here, Philip Morris is the runaway winner. It is cheaper on an absolute earnings (P/E) and free cash flow (P/FCF) ratio basis. And even when we take growth into consideration (PEG), it still offers a discount to Procter & Gamble shares.
You'll also notice that the dividend yield is more than twice that of Procter & Gamble's. While it's true that Philip Morris' dividend eats up more of the company's free cash flow, this has almost always been the case. Philip Morris doesn't spend much, relatively speaking, on growth opportunities. Instead, it focuses on making cigarettes cheaply and churning the dividend out to shareholders.
Winner = Philip Morris
Now, we get into the meat of the investment: each company's sustainable competitive advantages -- or their "moats."
Procter & Gamble's moat comes in the form of its brand value. The company owns some of the most common names in household goods: Duracell batteries, Gillette razors, and Pampers diapers, to name just a few.
Just about any company could make these products and offer them up at lower margins than Procter & Gamble. What protects the company is the simple fact that people (usually) trust these brands more -- meaning they're willing to pay extra for them.
Philip Morris is protected by the very same moat of brand value. The company owns the rights to international sales of cigarettes -- most notably Marlboro. As with consumer goods, anyone could -- and does -- offer up nicotine fixes for less. But because smokers are very brand conscious, Philip Morris continues to sell its most popular cigarettes for a premium.
So, which comes out ahead? I firmly believe that Philip Morris has a wider moat. The dangers of smoking have been well known for decades now. And while international mores might be slightly different than here in America, it's clear that smokers are still willing to pay up for Marlboro (and other Philip Morris) brands.
Procter & Gamble, on the other hand, is having its moment of reckoning as we speak. Last year, former hedge fund manager Mike Alkin gave a talk on theplummeting valueassociated with strong brands in consumer staples. The reason for this trend was that millennials -- now America's largest consumer segment -- want three things from their consumer goods:
1. Products that are local (which Procter & Gamble isn't outside of its Cincinnati headquarters)
2. Products that are organic (which isn't really a huge distinction for nonfood entities like Procter & Gamble)
3. Products that come from small companies (this would not describe Procter & Gamble)
We've already seen Philip Morris weather the storm of falling smoking rates and court battles. It has survived, albeit with less power than before. I'm not so sure Procter & Gamble will experience the same level of robust demand one decade from now.
Winner = Philip Morris
So, there you have it: With a more favorable valuation and wider moat, Philip Morris comes out ahead.
But don't be mistaken, while I'd choose the cigarette maker if I only had these two choices for my own investment dollars, I don't thinkeithercompany is in a particularly strong competitive position. That's why I don't own shares of -- nor have I made an "outperform" call on myCAPS profilefor -- either company.
If you're nearing or in retirement, I think Philip Morris is worth a look. Otherwise, there arebetter places for your money.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors.Brian Stoffelowns shares of Amazon. The Motley Fool owns shares of and recommends Amazon, Apple, and Microsoft. The Motley Fool is short shares of Procter & Gamble and has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has adisclosure policy. |
What Kind Of Share Price Volatility Should You Expect For MicroPort Scientific Corporation (HKG:853)?
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If you're interested in MicroPort Scientific Corporation (HKG:853), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. 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. 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. 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 MicroPort Scientific
Given that it has a beta of 0.83, we can surmise that the MicroPort Scientific share price has not been strongly impacted by broader market volatility (over the last 5 years). If history is a good guide, owning the stock should help ensure that your portfolio is not overly sensitive to market volatility. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see MicroPort Scientific's revenue and earnings in the image below.
MicroPort Scientific is a small cap stock with a market capitalisation of HK$9.2b. Most companies this size are actively traded. Small companies often have a high beta value, but they can be heavily influenced by company-specific events. This might explain why this stock has a low beta.
The MicroPort Scientific doesn't usually show much sensitivity to the broader market. This could be for a variety of reasons. Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments. Alternatively, an strong dividend payer might move less than the market because investors are valuing it for its income stream. In order to fully understand whether 853 is a good investment for you, we also need to consider important company-specific fundamentals such as MicroPort Scientific’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 853’s future growth? Take a look at ourfree research report of analyst consensusfor 853’s outlook.
2. Past Track Record: Has 853 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 853's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how 853 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. |
UPDATE 8-US launches economic formula for Middle East peace, Palestinians unhappy
* Trump son-in-law Kushner to lead conference
* Israeli and Palestinian officials absent
* Scepticism whether Gulf states will open checkbooks
* Reluctance due to lack of political solution to conflict
* U.S.-Iran tensions overhang meeting across Gulf from Iran (Adds quotes and context)
By Matt Spetalnick
MANAMA, June 25 (Reuters) - The Trump administration launched a $50 billion economic formula for Israeli-Palestinian peace on Tuesday, saying an investment programme for the Palestinians was a precondition for ending the decades-old conflict.
U.S. President Donald Trump's senior adviser and son-in-law Jared Kushner opened a two-day international meeting in Bahrain to rally support for the blueprint, which has met broad disdain from Palestinians and others in the Arab world although regional U.S. allies such as Saudi Arabia discreetly support it.
"We can turn this region from a victim of past conflicts into a model for commerce and advancement throughout the world," Kushner told the gathering, attended by the heads of the International Monetary Fund and World Bank.
Palestinian President Mahmoud Abbas, whose Palestinian Authority exercises limited self-rule in the Israeli-occupied West Bank, was scathing about its prospects:
"Money is important. The economy is important ... The political solution is more important."
The political details of the peace plan, almost two years in the making, remain secret. Neither the Israeli nor Palestinian governments attended the curtain-raising event while several Arab states stayed away or sent deputy ministers.
The conference is taking place in Bahrain, home to the U.S. Navy's Fifth Fleet, amid high tension between Tehran on the one hand and Washington and its Sunni Muslim allies Saudi Arabia and the United Arab Emirates on the other. All share a common foe with Israel in Shi'ite Iran.
Israeli Prime Minister Benjamin Netanyahu, a close Trump ally, said Israel was open to the proposal.
Washington will be hoping that wealthy Gulf Arab states show a concrete interest in the plan, which expects donor nations and investors to contribute $50 billion to the Palestinian territories, Jordan, Egypt and Lebanon.
NO POLITICS TODAY
"To be clear, economic growth and prosperity for the Palestinian people are not possible without an enduring and fair political solution to the conflict ... one that guarantees Israel’s security and respects the dignity of the Palestinian people," Kushner said.
"However, today is not about the political issues. We will get to those at the right time."
It is not clear whether the Trump team plans to abandon the "two-state solution", which involves creation of an independent Palestinian state living side-by-side with Israel.
The United Nations and most countries back the two-state solution, which has underpinned every peace plan for decades, but Trump's team has consistently refused to commit to it.
Kushner told Al Jazeera TV on Monday that the Trump plan would not follow a Saudi-led Arab initiative that has been the Arab consensus on the outline of a settlement since 2002.
Any solution must settle long-standing issues such as the status of Jerusalem, mutually agreed borders, Israel's security concerns, Palestinian demands for statehood, and the fate of Israel's settlements and military presence in territory where Palestinians want to build that state.
The Saudi-backed initiative calls for a Palestinian state with borders that predate Israel's capture of territory in the 1967 Middle East war, as well as a capital in East Jerusalem and refugees' right of return - all rejected by Israel.
Chief Palestinian negotiator Saeb Erekat said Kushner was "committed to the initiatives of Israel's colonial settlement councils".
On the outskirts of Ramallah in the West Bank, Palestinian lawmaker Mustafa Barghouti said there could be "no economic solution as a substitute for our freedom". A small crowd of protesters was dispersed by Israeli troops firing tear gas.
In Gaza, businesses closed doors in a general strike called by the ruling Islamist Hamas group and other factions.
PLAN "NOT UNACHIEVABLE"
An Iranian official called Kushner's plan "shameful" and "doomed to failure". Trump on Monday imposed sanctions on Iran's supreme leader and other officials after Iran downed a U.S. drone following attacks on oil tankers in the Gulf.
Palestinian leaders boycotted the conference, and are refusing to engage with the White House, accusing it of pro-Israel bias. Breaking with the international consensus, Trump in 2017 recognised Jerusalem as Israel's capital, infuriating the Palestinians and other Arabs.
However, Palestinian and Israeli businessmen are attending, as are some Gulf and U.S. companies, including Blackstone Group , whose chief executive Stephen Schwarzman said Kushner's economic plan was "not unachievable".
Emirati billionaire Mohamed Alabbar said Arabs like him were ready to invest. "This is a very sensible kind of dream and one would've hoped the beneficiaries would’ve been here," he said.
Haim Taib, Israeli president of British-based Mitrelli, an infrastructure development firm, said the plan seemed "doable" but it was unclear how momentum would be maintained beyond the event.
More than half of the $50 billion would be spent in the Palestinian territories over 10 years. The rest would be divided between Lebanon, Egypt and Jordan, the country that has absorbed more Palestinians than any other, and fears anything that might lead to their permanent settlement there.
A Palestinian businessman attending expressed disappointment that Kushner had not done more to address the political situation.
"Jared is not a politician, he’s a real estate man," the businessman said on condition of anonymity. "But you can’t make economic peace only or political peace only, you have to do them both at the same time."
(Reporting by Matt Spetalnick and Stephen Farrell; Additional reporting by Nidal al-Mughrabi in Gaza and Rami Ayyub in Ramallah; Writing by Ghaida Ghantous; Editing by Angus MacSwan, William Maclean and Kevin Liffey) |
Emerald Bay Energy Kuhn 3 Well Resumes Production
CALGARY, AB, and SAN ANTONIO, TX / June 24, 2019 /Emerald Bay Energy Inc. (TSX Venture: EBY, OTC: EMBYF) (the "Company" or "Emerald Bay") is pleased to announce that operations to enhance oil recovery from the Kuhn 3 well are complete, and the well is now back on production. The Company previously completed a large acid job to increase in-flow from the formation, and a positive displacement progressive cavity pump has now been installed to pump the increased fluid volume. The new pumping system is capable of producing as much as 2,000 bbls/day of fluid compared to approximately 120 bbls/day from the previous standard rod pump. It is anticipated that Kuhn 3 will produce a high fluid volume with an oil cut between 2 and 4%.
Shelby Beattie, President and CEO of the Company commented, "We are very pleased to have Kuhn 3 on production, and while the exploration process is inherently risky and can take time to realize success, it can also be very rewarding. Now that Kuhn 3, 4 and A5 are all producing, we will work with our partners to resume efforts in what we consider to be the prime target for exploration and development at Wooden Horse, horizontally drilled wells in the upper zone of the Edwards formation."
To date, the Company has drilled and completed one horizontal well in the Edwards formation, the Kuhn 1H well. Kuhn 1H was drilled horizontally in what is the lower of the two potentially productive zones in the formation. At the time, the Company and its partners chose to drill in the lower zone of the formation for several factors including one of the partners experience with successful wells in the lower zone approximately 13 miles away from Wooden Horse. To produce Kuhn 1H, the Company drilled a disposal well capable of injecting 40,000 bbls/day, and built the facilities capable of handling approximately 10,000 bbls/day. Kuhn 1H pumped for over a year from the lower zone and oil production was minimal. Over the past 18 months, wells in much closer proximity to Wooden Horse have been drilled horizontally in the upper zone of the Edwards formation, and the results have been very good, with wells producing up to 170 bbls/day of oil. The Company has always considered the upper zone in Kuhn 1H as a potential producer. The upper zone in Kuhn 1H has higher permeability and porosity than the lower zone and the core samples from the upper zone were highly saturated with oil. These factors along with the recent drilling results in the area make Kuhn 1H a top priority for the Company as we move forward at Wooden Horse.
About Emerald Bay
Emerald Bay Energy Inc. (TSX Venture: EBY, OTC: EMBYF) is an energy company with oil producing properties in Southwest Texas as well as non-operated oil and natural gas interests in Central Alberta, Canada. EBY is the operator of the Wooden Horse and Nash Creek Projects in Guadeloupe, Texas, where the Company currently now owns a 50.00% working interest those projects. Additionally, the Company owns and operates various working interests in the HugoCellR, Cotulla, and MarPat partnerships. The Company also owns 75% of Production Resources Inc., a South Texas oil company.
For all upcoming news releases, articles, comments and questions, to stay updated and speak with management about Emerald Bay Energy. Please JOIN our Investor Information Group at:http://bit.ly/8020EBY
For further information, please contact:
Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000Email:info@ebyinc.comwww.ebyinc.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE:Emerald Bay Energy Inc.
View source version on accesswire.com:https://www.accesswire.com/549756/Emerald-Bay-Energy-Kuhn-3-Well-Resumes-Production |
Winston Capital Group Inc. Announces Proposed Qualifying Transaction
Calgary, Alberta--(Newsfile Corp. - June 24, 2019) - Winston Capital Group Inc. (TSXV: WNST.P) (the "Corporation") is pleased to announce details concerning its proposed arm's length qualifying transaction (the "Transaction") involving a proposed business combination with 2695389 Ontario Corp. ("Ontario"), a private company incorporated under the laws of the Province of Ontario on May 9, 2019.
Ontario plans to enter into an agreement to acquire Patton Associated Trading Limited, Northside Property Management Limited and Ocean Healthcare Limited, each a corporation incorporated under the laws of Ireland (collectively, "Lake Health"). Lake Health is a pharmaceutical products wholesale distribution company with an experienced leadership team. Lake Health has medical wholesale distribution authorization (WDA) from the Irish Health Products Regulatory Authority ("HPRA"). This authorization allows Lake Health to import and distribute prescribed medicines; over the counter medicinal products; unauthorized medical products; exempt medical products; and psychoactive products within Ireland and to export the same product categories across the EU/EEA region, subject to local regulation. Lake Health's logistics solution, including access to a state of the art distribution facility which is approved by the HPRA and is ISO 2001:2008 certified, enables same day delivery to 1,800 pharmacies in Ireland and 48 to 72 hour distribution across mainland Europe.
After the completion of the acquisition of Lake Health, Ontario will have approximately 96,180,000 common shares ("Ontario Common Shares") issued and outstanding. Prior to the completion of the Transaction, Ontario plans to complete a private placement of up to 8,000,000 units at $0.50 per unit, each unit consisting of one Ontario Common Share and one-half warrant to purchase an Ontario Common Share for gross proceeds of up to CDN$4,000,000. Each whole warrant (an "Ontario Warrant") will entitle the holder thereof to purchase one Ontario Common Share for $0.65 per share for a period of two years from closing.
The Corporation has entered into a non-binding letter of intent with Ontario dated June 21, 2019 (the "LOI") pursuant to which the Corporation and Ontario intend to complete a share purchase, plan of arrangement, amalgamation, three-cornered amalgamation or alternate structure to be determined, having regard to relevant tax, securities and other factors and potentially including a pre-closing reorganization of Ontario, to form a new company ("Newco") called "Verrian Corp.". Pursuant to the proposed Transaction, each issued and outstanding Ontario Common Share will be exchanged into one common share of Newco ("Newco Common Share") on a 1:1 basis so that all of the issued and outstanding Ontario Common Shares will be exchanged for approximately 96,180,000 Newco Common Shares (not including Ontario Common Shares issued pursuant to the Private Placement), and each unexercised Ontario Warrant shall be exchanged for a replacement warrant issued by Newco with the same terms as the respective warrant.
It is intended that the Transaction, when completed, will constitute the Corporation's "Qualifying Transaction" in accordance with Policy 2.4 of the TSX Venture Exchange (the "Exchange"). A more comprehensive news release will be issued by the Corporation disclosing details of the Transaction, including financial information respecting Ontario, the names and backgrounds of all persons who will constitute insiders of Newco, and information respecting sponsorship, once an agreement has been finalized and certain conditions have been met, including:
1. approval of the Transaction by the board of directors of the Corporation;
2. satisfactory completion of due diligence; and
3. execution of the definitive agreement.
Shareholder approval is not required with respect to the Transaction under the rules of the Exchange. However, the structure of the Transaction has not yet been finalized so shareholder approval under corporate law may be required. In the event a final agreement is not reached, the Corporation will notify shareholders. Trading in the common shares of the Corporation has been halted and is not expected to resume trading until the Transaction is completed or until the Exchange receives the requisite documentation to resume trading. Upon closing of the Transaction, the Corporation expects to list as a Tier 2 Life Sciences Issuer.
ABOUT THE CORPORATION
The Corporation is a capital pool company (a "CPC") that has not commenced commercial operations and has no assets other than cash. Except as specifically contemplated in the TSX Venture Exchange Inc.'s CPC policy, until the completion of its qualifying transaction, the Corporation will not carry on business, other than the identification and evaluation of businesses or assets with a view to completing a proposed qualifying transaction.
For further information, please contact:
Bruce BentPresident, Chief Executive Officer, and Chief Financial Officer
Winston Capital Group Inc.
Telephone: + 1 (905) 567-3431Email:bbent@msw.on.ca
Forward-Looking Information Cautionary Statement
Statements in this press release regarding the Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as terms and completion of the proposed transaction. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
Completion of the Transaction is subject to a number of conditions, including but not limited to, execution of a binding definitive agreement relating to the Transaction, Exchange acceptance and if applicable pursuant to Exchange requirements, majority of the minority shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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What Is VAR? Soccer's Video Review Is Making a Mess of the Women's World Cup
When an acronym for instant replay is overshadowing the World Cup, the beautiful game can get ugly, fast. Unfortunately, thats exactly whats happening in France, where every Womens World Cup match, it seems, is marred by some controversy surrounding VAR, or video assistant referee. This technology is supposed to efficiently solve rules disputes, not enrage fans and leave the worlds best soccer players, whove worked their whole life to take part in a global mega-event like the World Cup, completely flustered. Lets take a closer look at the row over VAR. What is VAR? VAR is essentially soccers instant replay system. On March 3, 2018, the International Football Association Board (IFAB), the top rulemaking body for global soccer, wrote VAR into the laws of the game. IFAB touted this measure as a historic step for greater fairness in football. The guiding philosophy of video review was minimum interference-maximum benefit, with aims to eliminate clear and obvious errors or serious missed incidents with regards to goal calls, penalty decisions, decisions to hit players with red cards after a first infraction, and cases of mistaken identity, i.e. giving a penalty to the wrong player. Sounds reasonable, right? With stakes as high as they are in world soccer, you want to get the call correct. That same month, FIFA voted to include VAR at last summers mens World Cup in Russia. Top leagues around the world were already experimenting with the system, so many of the mens players were familiar with VAR going into their tournament. VAR was generally considered a success for the men: according to FIFA, VAR resulted in a 99.3% success rate of correct calls (without VAR, 95% of calls would have been right). So FIFA approved VAR for the women right away, right? No, and thats part of the problem. Rather than just implement a successful innovation for the Womens World Cup right away, FIFA dragged its feet on approving VAR for the womens event this summer. Story continues I think it would be a little bit insulting if we werent afforded the same opportunity, U.S. womens soccer coach Jill Ellis said of VAR after last summers mens World Cup. Theres too much at stake to not have it, and I think our game, our passion, our drive, our motivation is at the same level as the men. In December, FIFA announced its list of referees and assistant referees for the Womens World Cup, but made no mention of video refs. FIFA finally approved VAR for the Womens World Cup on March 15, less than three months before the start of the tournament. So the women didnt benefit from playing under VAR before its introduction at the worlds most important soccer tournament. Also, on June 1 just six days before the start of the Womens World Cup IFAB instituted a new rule mandating that goalkeepers must have at least part of one foot on the goal line, instead of both feet, when an opponent takes a penalty shot. Keepers can no longer stand behind the line. In theory, the new rule offers more flexibility for keepers. But introducing it so close to the World Cup, and using VAR to enforce it so strictly, has turned the womens players into guinea pigs, as Chelsea womens team manager Emma Hayes put it. What have been some of the biggest VAR controversies at the Womens World Cup? Take your pick , really. But Scotland may have the strongest VAR beef . The Scots needed to beat Argentina on June 19 to have any hope of advancing to the Round of 16. Scotland appeared to secure a 3-2 victory when goalkeeper Lee Alexander saved a penalty shot from Florencia Bonsegundo of Argentina in stoppage time. But VAR determined that Alexander moved a few inches off her line before the shot was taken. Bonsegundo scored on the retake, tying the game and sending Scotland home. Critics and not just Scotland fans argued that, in this case, VAR wasnt correcting a clear and obvious error or serious missed incident. Keepers have been edging off their lines on penalty shots for years; VAR was starting to nitpick, and at the Womens World Cup no less. Scottish First Minister Nicola Sturgeon, though a biased observer, captured the sentiments of many when she wrote on Twitter: I still dont fully understand how it works, but I understand enough to know that I hate VAR! The English Premier League will introduce VAR for the first time this upcoming season. But video replay will not be used to scrutinize goalkeeper footwork and take away penalty kick saves. I still dont fully understand how it works, but I understand enough to know that I hate VAR! @FIFAWWC Nicola Sturgeon (@NicolaSturgeon) June 19, 2019 VAR isnt just causing headaches on penalty kicks. In Sundays France-Brazil quarterfinal, France seemed to go up 1-0 before VAR intervened. Fox rules analyst Christina Unkel made the reasonable point that Brazil goalkeeper Barbara did not have possession of the ball when Frances Valérie Gauvin collided with her on a cross, sending the ball into the net. The refs ruled it a goal on the field. After a more than four minute delay, the call was reversed , seemingly without clear evidence. France survived, pulling out a 2-1 victory with a goal in extra time that, following the United States victory over Spain on Monday, set up a much-anticipated quarterfinal showdown between the host nation and the U.S. Friday. The Americans have benefitted from questionable VAR calls. Against Sweden, Carli Lloyd appeared to be offside on a cross before Tobin Health deflected a ball off Swedens Jonna Andersoon, resulting in an own-goal that put the Americans up 2-0 in the second half. After the refs took a look, the goal was allowed to stand. In the U.S.-Spain round of 16 game Monday afternoon, Spains Maria Leon was whistled for tripping Rose Lavelle in the box, giving the U.S. a penalty kick late in a 1-1 game. The play didnt look much like an infraction, but VAR gave the U.S. another break. The call held upon review, and Megan Rapinoe converted her second penalty shot of the game to give the Americans a 2-1 lead it would not relinquish. Even former U.S. star Julie Foudy questioned the call: Seeing it live and having seen the replays, that was the softest of soft PKs given on Rose Lavelle. If that was the other way, US fans would be similarly outraged. #FIFAWWC Julie Foudy (@JulieFoudy) June 24, 2019 What happens with VAR now? Besides praying that some VAR controversy doesnt determine who wins the Womens World Cup final? VAR calls should be determined in a more timely, and consistent, fashion for the rest of the tournament. But protests will likely continue. After two VAR calls went against Cameroon in its 3-0 Round of 16 loss to England, the players were notably upset. Cameroon coach Alain Djeumfa called the decisions a miscarriage of justice. When it comes to the treatment of the worlds best soccer players, a disturbing pattern has formed. VAR for men was deemed a success, but the players had some time to get acclimated to it. The women did not, and had to deal with a rule change for goalkeepers that complicated the whole thing just days before the start of the tournament. Even putting pay disparity aside, this isnt the only case of womens players getting the short shrift. The last Womens World Cup, in Canada in 2015, was held on artificial turf, something that would never happen with the men. This year, the finals of two major regional mens tournaments, the Gold Cup and 2019 Copa América, take place on July 7 the same day as the Womens World Cup final. Such a scheduling conflict would be unimaginable for the mens World Cup. Bottom line: VARs disastrous rollout this World Cup only adds to the indignities that women have faced in global soccer, even in recent years. |
2019 FIFA Women's World Cup: USWNT encouraged by admittedly ugly win over Spain
REIMS, France — The beautiful game, this most certainly wasn’t. But the United States women’s national team will still more than take Monday’s hard-fought 2-1 victory over plucky Spain, a win that sends them to the World Cup quarterfinals and sets up a much-anticipated match against host nation France on Friday in Paris. For most of the round of 16 encounter with La Roja at Stade Auguste-Delaune, the tournament favorites’ passage to the final eight looked anything but certain. Any thoughts that the Americans would roll after Megan Rapinoe put them ahead by converting a seventh-minute penalty were extinguished when Spain punished a defensive error two minutes later. It was the first goal the defending champions had conceded at this World Cup, and only another – and let’s be honest, questionable – late penalty call converted by Rapinoe with less than 15 minutes to play prevented the tilt from going to extra time. Still, for a team with its heart set on repeating, this was a necessary test to have passed. “We knew we could be a little sharper,” USWNT coach Jill Ellis said after her team failed to score from the run of play for the first time at France 2019. “This was a tricky game, probably the hardest game in the 16 round. So for me, I think it was good. I think it has actually energized our players.” With temperatures hovering around 90 degrees at kickoff, energy was often in short supply during the match. It didn’t help that Spain kicked the Americans all over the field, including in the box to set up both scores. After storming through the first round with decisive results over Thailand, Chile and Sweden, Spain provided a rude welcome to the knockout stage – and not just because of their aggressive tactics. Rose Lavelle (16) drew the penalty that led to the United States' winning goal. (Getty) “I give Spain so much credit; they’re a great team, and that was a really tough game,” said rugged central midfielder Samantha Mewis, who kept her spot in central midfield at the expense of the more attack-minded Lindsey Horan. “This tournament isn’t supposed to be easy.” Story continues “Grinding out games is something that everyone has to do at the World Cup,” Mewis added. “It’s a testament to the growth of the game. All these countries are really, really good.” And if not for the late penalty call, the outcome could have been different. Given how Hungarian referee Katalin Kulcsar handled the match, letting most of Spain’s stout tackling go, it was hard to see a second penalty being called when Rose Lavelle was sent tumbling late. The first one, a trip on Tobin Heath, was clear as day. But the contact on Lavelle was less egregious than other potential fouls that went unpunished. But Kulcsar upheld her decision even after the video assistant referee requested a second look, and Rapinoe once again drove the ball beyond the reach of Spanish goalkeeper Sandra Paños. “I was a little surprised because it was a physical match,” Lavelle said of the call. “I did get kicked. I didn’t flop. So I figured if she saw the contact, it would be a foul.” It was, and now France awaits. Seen as the biggest threat to the Americans’ title hopes, Les Bleues are coming off their own bruising round of 16 triumph against Brazil. Both teams will arrive at the Parc des Princes battle-tested now, following games that challenged their character and resolve as much as their skills. “I think sometimes you have to win ugly,” Lavelle said. “That whole game was kinda all about grit and how much we could handle when things weren’t going our way.” “We welcome a challenge, and that’s exactly what today was,” added Mewis. “This tournament isn’t supposed to be easy. It’s these type of things that let us know that we’re strong and we can grind through something. So I think we’re going to take a lot from this. It gives us a lot of faith in ourselves.” Even if it wasn’t easy on the eyes. More from Yahoo Sports: Sources: Kawhi to become free agent; Raptors favorite Paul denies trade request: ‘Happy’ to stay in Houston After profane tirade, Mets have to fire manager Callaway France beats Brazil, keeps possibility of dream QF alive |
"Pretty Little Liars" Netflix Departure Is a Sign of Things to Come
Every month,Netflix(NASDAQ: NFLX)reveals a list of what's coming to and departing from its platform the following month. July's list heralds the arrival ofCaddyshackand a new season ofStranger Things, but one departure has stolen most of the spotlight.Pretty Little Liarsis leaving the platform, and fans are not happy.
People get upset whenever shows leave Netflix, of course, butPretty Little Liars' departure is unlikely to be an isolated incident. In fact, it seems that Netflix has a real licensed content problem brewing.
Image source: Getty Images.
Pretty Little Liarswon't be available to stream on Netflix in July, but that doesn't mean it will disappear from the internet. There's no word yet on where it might become available to stream, but Hulu is a pretty good guess. Why? Hulu is owned byDisney(NYSE: DIS), which also owns ABC Family, which madePretty Little Liarsin the first place.
We've seen this kind of vertical integration in streaming over and over again since the Disney-21st Century Fox merger kicked off a newgold rushfor so-called "Netflix killers," which are companies that also happen to also be major content creators. It simply makes more financial sense for Disney to have its most beloved shows on its own streaming services. (Pretty Little Liars' distributor isAT&T-owned Warner Bros. Television Distributing, but streaming deals are usually cut directly by studios.)
That Netflix was unable to hold onto a big show made by Disney is hardly a surprise. We've beenexpecting Netflix to lose showslike this for a while now. Long-term deals are keeping the losses from happening all at once (the fact that services like Disney+ aren't actually available to consumers yet helps, too), but these sorts of losses are inevitable in the long term.
Pretty Little Liarsisn't unique. Presumably, it was just one of the first shows licensed from Netflix's now-competitors to hit the end of its current contract. We can't know for sure, since Netflix doesn't share details of this nature, but we do know the streaming service inked itsPretty Little Liarsdeal in 2012, which is a long time for any show to run on the platform. There may be some big, dramatic renegotiations in Netflix's future, but it seems prohibitively likely that most shows will leave quietly like this, when options are not picked up or contracts are not renewed.
This will cost companies money, of course; Disney reportedly expects to lose $150 million in operating income as it parts from Netflix. But the pros outweigh the cons for mammoth entertainment companies like this, because taking major hits likeStar Warsand Marvel Studios films away from a competitor and putting them on Disney+ just in time for its launch seems sure to draw eyeballs to its service -- and perhaps away from others. (We don't know when Disney's deal with Netflix expires -- it was announced only as "a multiyear deal" and started in 2016 -- but it has been widely reported that Disney+ will launch withStar Warsand Marvel Studios films, and the service is supposed to arrive in November of 2019.)
Licensed content isn't the only place where conflicts can take Netflix shows down. As I've written before, even Netflix originalsaren't always safe-- some of them, likeJessica Jonesand other Netflix Marvel series, were made in collaboration with now-rivals like Disney. There's plenty of reason to be concerned about original content, but the loss of beloved licensed content will likely be what hurts Netflix the most.
While other companies are taking a hit in order to invest in their own streaming services, Netflix would rather have the content than the cash. As more and more licensed deals are stripped away, Netflix will have little leftbesides its own original content. The popularity ofThe OfficeandParks & Recreation(both owned byComcast's NBCUniversal) will make their likely departures more dramatic than that ofPretty Little Liars. We've known for a while that Netflix would deal with a licensed content exodus. And now, it seems like the unpleasant process may be starting.
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Stephen Lovelyowns shares of AT&T and Netflix. The Motley Fool owns shares of and recommends Netflix and Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has adisclosure policy. |
What To Know Before Buying Paradise Entertainment Limited (HKG:1180) For Its Dividend
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Is Paradise Entertainment Limited (HKG:1180) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
Investors might not know much about Paradise Entertainment's dividend prospects, even though it has been paying dividends for the last five years and offers a 2.0% yield. While the yield may not look too great, the relatively long payment history is interesting. Some simple analysis can reduce the risk of holding Paradise Entertainment for its dividend, and we'll focus on the most important aspects below.
Click the interactive chart for our full dividend analysis
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Paradise Entertainment paid out 45% of its profit as dividends. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. Plus, there is room to increase the payout ratio over time.
We update our data on Paradise Entertainment every 24 hours, so you can always getour latest analysis of its financial health, here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Looking at the data, we can see that Paradise Entertainment has been paying a dividend for the past five years. During the past five-year period, the first annual payment was HK$0.05 in 2014, compared to HK$0.025 last year. Dividend payments have fallen sharply, down 50% over that time.
A shrinking dividend over a five-year period is not ideal, and we'd be concerned about investing in a dividend stock that lacks a solid record of growing dividends per share.
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. It's not great to see that Paradise Entertainment's have fallen at approximately 18% over the past five years. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. First, we like that the company's dividend payments appear well covered, although the retained capital also needs to be effectively reinvested. Earnings per share are down, and Paradise Entertainment's dividend has been cut at least once in the past, which is disappointing. In sum, we find it hard to get excited about Paradise Entertainment from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria.
Are management backing themselves to deliver performance? Check their shareholdings in Paradise Entertainment inour latest insider ownership analysis.
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. |
Amazon Gets Patent for Drone Surveillance System That Could Send the Company's Eyes Into the Sky
Amazonmay soon send drones into the sky to gather data with the help of drone surveillance technology. Earlier this month, the retailer received a patent from the U.S. Patent and Trademark Office for a new data-gathering system.
With this latest patent, Amazon expands its information-collecting reach. While the company rose to prominence selling information (also known as book sales), the Seattle-based mega retailer has gone deep into data collection with itsalways-listening virtual assistant,home-monitoring company, and afacial recognition toolitoffers to law enforcement.
In the first line of Amazon’s patent, the filing would allow an “unmanned aerial vehicle” to gather data about the places it flies over. The patent notes that Amazon’s drone would obtain data about objects within and around a specified “geo-fence,” or a virtual boundary. An option to surveil only authorized areas would offer the ability to keep other areas private.
Amazon filed the patent in 2015, two years after the company first unveiled its plans for Prime Air, which included putting drones to work to deliver packages. A drone program has, clearly, remained a priority for Amazon as the company unveiled anupdateto its drone design earlier this month. No matter the use, delivering packages or observing the environment, Amazon will need further approval from the FAA to get its drones off the ground.
According to Amazon though, the drones purpose will be delivery first and surveillance, second—if at all. In a statement toFortune, an Amazon spokesperson clarified the company’s interest in drones, noting that patents take multiple years to receive and do not necessarily reflect the company’s current product roadmap.
“Some reports have suggested that this technology would spy or gather data on homes without authorization—to be clear, that’s not what the patent says,” said Amazon’s John Tagle. “The patent clearly states that it would be an opt-in service available to customers who authorize monitoring of their home.”
Amazon’s patent can be read in its entiretyhere.
Though gathering information by drone may raise an eyebrow or two on the privacy front (it wasn’t long ago that we learned Amazon employeeswere listeningto our conversations with Alexa), information-gathering is now a prominent part of the company’s DNA. When Amazon announced the Amazon Echo smart speaker in 2014, the device promised a virtual assistant for the home that could be summoned simply by calling out its name.
The trade-off came in user privacy: for Amazon’s assistant Alexa to hear you, the device has to always be listening. Customers make a similar trade-off when they use one of Amazon’s Ring products. The Ring line consists of home security cameras, video doorbells, and security systems that send information through Amazon’s servers.
Broaden the scope from consumer tech and there’s even more evidence of Amazon’s data collection leanings. In May 2018, theACLUlearned that Amazon markets their facial recognition tool, Rekognition, to law enforcement. The ACLU noted that officers in Washington County, Ore. and Orlando, Fla. had been using Amazon’s facial recognition tech since 2017.
The Washington County Sheriff’s office has used the technology to help in their investigations. “We were able to index more than 300,000 photo records within 1-2 days, and the identification time of suspects went from 2-3 days down to minutes,” the Oregon police force noted on Amazon’s Rekognitioncustomers page.
It’s too early to tell how Amazon could make use of a network of drones for potential surveillance purposes. The company could very well sit on the patent and do nothing, or the complete opposite and watch from the skies. Now that Amazon has officially been granted its four-year-old patent, we may not have to wait long to find out. |
The U.S. House has scheduled its hearing for Facebook’s Libra; David Marcus reportedly set to attend
Just one day after the Senate Banking Committee is scheduled to discuss Facebook’s Libra, the House will follow-up. U.S. Rep. Maxine Waters, Chair of the U.S. House Financial Services Committee, announced her committee will hold its hearing on July 17.
The set date comes after Waters called for a moratorium on Libra’s development until further U.S. regulation could be fleshed out. Her statement called for Facebook executives to testify on the plans.
While Libra is operated by the separate Libra Association, which Facebook only holds 1% stake in, the same as all other nodes, Facebook execs will likely be asked to answer for Libra’s planned activities.
As of now, no witnesses have been announced for the hearing, but sources told The Hill that David Marcus, co-creator and leader of Libra, will likely testify at both the House and the Senate’s hearings.
The Senate hearing is scheduled for July 16 and can be streamed on the Senate’s site. |
I Ran A Stock Scan For Earnings Growth And Guangnan (Holdings) (HKG:1203) Passed With Ease
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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 likeGuangnan (Holdings)(HKG:1203), 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. 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 Guangnan (Holdings)
The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. That makes EPS growth an attractive quality for any company. Impressively, Guangnan (Holdings) has grown EPS by 21% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
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). Guangnan (Holdings) maintained stable EBIT margins over the last year, all while growing revenue 30% to HK$2.8b. That's progress.
In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image.
Guangnan (Holdings) isn't a huge company, given its market capitalization of HK$835m. That makes it extra important to check on itsbalance sheet strength.
I always like to check up on CEO compensation, because I think that reasonable pay levels, around or below the median, can be a sign that shareholder interests are well considered. I discovered that the median total compensation for the CEOs of companies like Guangnan (Holdings) with market caps under HK$1.6b is about HK$1.7m.
The Guangnan (Holdings) CEO received total compensation of just HK$720k in the year to December 2018. That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally.
Given my belief that share price follows earnings per share you can easily imagine how I feel about Guangnan (Holdings)'s strong EPS growth. With swiftly growing earnings, it probably has its best days ahead, and the modest CEO pay suggests the company is careful with cash. So I'd venture it may well deserve a spot on your watchlist, or even a little further research. Of course, just because Guangnan (Holdings) 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 Guangnan (Holdings) 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. |
Charlie Munger's Only 4 Stocks
Warren Buffett's business partner has triple-digit gains on 3 stocks, and substantially closed down another at a gain |
Trump health care executive order means price, quality transparency: CMS administrator
President Trumpon Monday signed an executive order that promises to empower patients and require hospitals to disclose their prices.
“This landmark initiative continues our work to put American patients first,” Trump said at the White House. “We are fundamentally changing the nature of the health care marketplace.”
The Department of Health and Human Services will propose a regulation requiring hospitals to publicly post standard charge information within 60 days. The executive order also requires the federal agency to ask for comments on expected out-of-pocket costs for items or services in 90 days and in 180 days, respectively, deliver a report addressing who is slowing down the efforts to have those prices transparent.
“This is all about the president’s bold leadership to put patients first and to empower them with price and quality transparencies so that they can make the decisions that are going to work best for them,” Centers for Medicare & Medicaid Services Administrator Seema Verma said Monday during an interview with FOX Business’Kristina Partsinevelos.
Trump said he want to make sure there’s consistency and no one is overcharged for those procedures.
Despite severalhealth carebills that have been introduced in Congress, Verma said not much has been done to ward off the rising cost of health care that has been to be prevalent over the past 10 years.
“What we want to do is create a more affordable, competitive marketplace where providers are competing for patients on price and quality,” she said on “Bulls & Bears."
The CMS administrator said it is important that hospitals have the capability of sharing their "breakdown" cost when patients are seekinghealth careservices.
“The president wants us to go further so patients can make an apple-to-apple comparison with their seeking health care services,” Verma said.
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United Technologies: To Buy or Not to Buy
United Technologies (UTX) Stock: To Buy or Not to Buy
United Technologies UTX is diversified manufacturer operating in the building and aerospace industries. UTX’s branches include the well-known Otis Elevators, Carrier HVAC, and aerospace engine builder Pratt-and-Whitney.
Big News
Recently, United Technologies and Raytheon RTN announced a merger that would make the combined company the second largest in the aerospace and defense industry, after Boeing BA. It would be worth about $166 billion with approximate annual sales of $76.7 billion. Some are worried that the new company, Raytheon Technologies, may be subject to antitrust regulation. But this becomes less likely due to the minimal overlap in products that the two companies produce.
This merger is part of a larger plan by UTX to increase profits and narrow its focus of manufacturing. UTX has announced that they will be spinning off Otis Elevators and Carrier HVAC into independent, publicly traded companies in early 2020.
The merged company will be a one-stop-shop for the aerospace and defense industry, producing everything from missiles to airplane seats. The sheer size of this new conglomerate is likely to shake up competitors, as others many other firms are currently rethinking their businesses and focusing on highly profitable units. This deal could pressure other large competitors, like General Electric GE and Honeywell International HON, to look for merger opportunities to bulk up their most profitable divisions.
Strong Past
Historically, both Raytheon and United Technologies have outperformed the conglomerates industry. Over the past two years, both firms have outpaced industry performance by a significant margin.
United Technologies has also topped quarterly earnings estimates over the past two years for an average earnings surprise of 9.46%, with some beats at almost 30%. United Technologies’ boasts an attractive dividend. Its dividend has increased on a year-over-year basis for 4 of the past 5 years, with an average increase of 4.37%. The current annualized dividend is $2.94. The dividend is expected to increase as UTX pays out 38% of its earnings as dividend and the Zacks Consensus Estimates predict 4.73% growth this year.
Positive Outlook
United Technologies is currently a Zacks Rank #2 (Buy) with Style Scores of a “B” for Value and an “A” for Growth. The Zacks year over year sales growth estimates for UTX are very promising, with current quarter growth at 16.49% and next quarter growth at 17.31%.
The aerospace defense industry, in which the merged company will conduct a large portion of its business, is projected to grow significantly over the short and long term. The growth estimates show this industry growing 4.5% more than the S&P 500 over the next three months and a whopping 50.31% more over the next five years.
Due to this positive market outlook and the announced merger, prominent analyst firm Cowen recently upgraded UTX from a “market perform” to an “outperform” rating. Cowen also raised its UTX price target to $150, which would be a 15.22% increase from Monday’s closing price.
Bottom Line
United Technologies seems to show signs that could make it an attractive buy. Among these are the recently announced merger, a very strong industry outlook, and recent positive earnings estimate revision activity. However, UTX is waiting to spin off Otis and Carrier and the merger likely will not be completed until after that. As a result, UTX stock could be put in limbo while investors wait to see how or if the deals will be completed.
More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Boeing Company (BA) : Free Stock Analysis ReportUnited Technologies Corporation (UTX) : Free Stock Analysis ReportHoneywell International Inc. (HON) : Free Stock Analysis ReportGeneral Electric Company (GE) : Free Stock Analysis ReportRaytheon Company (RTN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
What Type Of Shareholder Owns Sun Hing Vision Group Holdings Limited's (HKG:125)?
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If you want to know who really controls Sun Hing Vision Group Holdings Limited (HKG:125), 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. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Sun Hing Vision Group Holdings is a smaller company with a market capitalization of HK$746m, 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. We can zoom in on the different ownership groups, to learn more about 125.
View our latest analysis for Sun Hing Vision Group Holdings
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors own 10% of Sun Hing Vision Group Holdings. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Sun Hing Vision Group Holdings's earnings history, below. Of course, the future is what really matters.
Sun Hing Vision Group Holdings is not owned by hedge funds. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
The definition of 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.
It seems insiders own a significant proportion of Sun Hing Vision Group Holdings Limited. Insiders own HK$80m worth of shares in the HK$746m company. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
The general public, with a 24% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It seems that Private Companies own 55%, of the 125 stock. 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.
It's always worth thinking about the different groups who own shares in a company. But to understand Sun Hing Vision Group Holdings better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
How Much Is Your Data Worth to Facebook and Google? A New Senate Bill Aims to Find Out
Facebookand Google are being challenged to put a price on how much each person’s data is worth―and provide a way for people to delete some, or all, of their information.
The Designing Accounting Safeguards to Help Broaden Oversight And Regulations on Data (DASHBOARD) Act, which was introduced on Monday, takes aim at companies that have more than 100 million monthly active users. The bill would pull back at least part of the curtain on the data collection practices of technology giants Facebook and Google—and potentially Twitter andAmazonamong others—requiring the companies to file an annual report that puts a total value on the data they’ve collected, as well as disclose contracts with third parties regarding data collection.
“For years, social media companies have told consumers that their products are free to the user. But that’s not true—you are paying with your data instead of your wallet,” says Sen. Mark Warner (D-Va.), one of the co-sponsors of the legislation. Warner, a former technology entrepreneur who amassed a fortune in telecommunications, is one of big tech’s loudest critics in Congress.
While there are already ways to manually delete some of your Facebook or Google data, perhaps the most interesting piece of the bill is that the senators are asking tech companies to put a price tag on each person’s information. However, deciding what a person’s interests, likes, or the time they spend online isn’t easy to quantify, since every platform is different.
If the bill passes, that task would fall to the Securities and Exchange Commission. The Dashboard Act wants the SEC “develop methodologies for calculating data value, while encouraging the agency to facilitate flexibility to enable businesses to adopt methodologies that reflect the different uses, sectors, and business models.”
“The importance of this is that historically we have been led to believe that these services are free. The value of our data is somewhat obfuscated,” says Ashkan Soltani, an independent researcher and the former chief technology officer at the Federal Trade Commission.
Soltani says the SEC is the right place to create methodologies for a possible future framework that puts a price tag on each person’s data. In their annual 10-K filings with the SEC, companies are already required to estimate the potential harm to their business, in the event of a data breach.
The introduction of the bill also comes as Facebook CEO Mark Zuckerberg has been vocal in recent months aboutasking for Facebook to be regulated.
“A common global framework–rather than regulation that varies significantly by country and state–will ensure that the Internet does not get fractured, entrepreneurs can build products that serve everyone, and everyone gets the same protections,”Zuckerberg wrote in an op-ed that was published in March.
When asked about the Dashboard Act, a Facebook spokesperson toldFortunethat “we look forward to continuing our conversations with the bill’s sponsors.” AGooglespokesperson declined to comment.
Lindsey Barrett, a teaching fellow and staff attorney at Georgetown Law’s Communications and Technology Clinic, says if the bill became a law, it could be valuable in that it will provide “more insight into how tech companies actually work… particularly in terms of how they share people’s data with third parties.”
However, she says the basic premise of the bill is “slightly misguided.”
According to Barrett, the bill doesn’t grapple with the issues of alternatives to the giant social networks. Also, the users are overwhelmed with privacy decisions on a daily basis. “The most significant problem in the tech ecosystem isn’t that people lack information, though that certainly is a problem,” she says. “It’s that companies face few limitations on what they’re allowed to do with people’s data.”
The Dashboard Act has some parallels to the California Consumer Privacy Act (COPA), according to Soltani. That law, which goes into effect in January 2020, will require companies that do business in California, or with Californians, to create complex tools that show data they collect, organize it, and give consumers an easy way to delete it.
However, the thresholds for compliance between Dashboard and COPA are different. While the federal bill targets companies with more than 100 million monthly active users, California’s law focuses on companies with more than $25 million in revenue, those that receive or disclose personal information from more than 50,000 California residents, or make at least half of their revenue from selling Californians’ data.
Even that is proving difficult for companies to comply with: In March, 86% of companies hadn’t completed steps to become compliant, according to a survey published from TrustArc, a security and compliance firm.
But on the federal level, Soltani says the Dashboard Act is laying the groundwork for a future comprehensive privacy package affording consumers more protections, while holding companies to higher standards of disclosure, in a way that could be on par with Europe’s GDPR privacy laws.
“This is one of the many features people are starting to think is important about a larger privacy package,” he says. |
What You Must Know About TK Group (Holdings) Limited's (HKG:2283) Beta Value
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If you're interested in TK Group (Holdings) Limited (HKG:2283), 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 other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks are more sensitive to general market forces than others. 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.
See our latest analysis for TK Group (Holdings)
Given that it has a beta of 0.89, we can surmise that the TK Group (Holdings) share price has not been strongly impacted by broader market volatility (over the last 5 years). 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 0.89. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see TK Group (Holdings)'s revenue and earnings in the image below.
With a market capitalisation of HK$3.2b, TK Group (Holdings) is a very small company by global standards. It is quite likely to be unknown to most investors. It is not unusual for very small companies to have a low beta value, especially if only low volumes of shares are traded. Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility.
The TK Group (Holdings) doesn't usually show much sensitivity to the broader market. This could be for a variety of reasons. Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments. Alternatively, an strong dividend payer might move less than the market because investors are valuing it for its income stream. In order to fully understand whether 2283 is a good investment for you, we also need to consider important company-specific fundamentals such as TK Group (Holdings)’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 2283’s future growth? Take a look at ourfree research report of analyst consensusfor 2283’s outlook.
2. Past Track Record: Has 2283 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 2283's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how 2283 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. |
Imagine Owning Cheung Woh Technologies (SGX:C50) And Wondering If The 42% Share Price Slide Is Justified
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In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. We regret to report that long termCheung Woh Technologies Ltd(SGX:C50) shareholders have had that experience, with the share price dropping 42% in three years, versus a market return of about 29%. Unhappily, the share price slid 3.8% in the last week.
See our latest analysis for Cheung Woh Technologies
Cheung Woh Technologies isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last three years Cheung Woh Technologies saw its revenue shrink by 5.7% per year. That is not a good result. The stock has disappointed holders over the last three years, falling 17%, annualized. And with no profits, and weak revenue, are you surprised? Of course, sentiment could become too negative, and the company may actually be making progress to profitability.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
Thisfreeinteractive report on Cheung Woh Technologies'sbalance sheet strengthis a great place to start, if you want to investigate the stock further.
We've already covered Cheung Woh Technologies's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Dividends have been really beneficial for Cheung Woh Technologies shareholders, and that cash payout explains why its total shareholder loss of 40%, over the last 3 years, isn't as bad as the share price return.
While the broader market gained around 4.2% in the last year, Cheung Woh Technologies shareholders lost 2.8%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 0.2% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The 10 countries with the biggest gains in environmental friendliness
A light show is seen at an Arctic fjord as NASA carries out an experiment named the Auroral Zone Upwelling Rocket Experimen in northern Norway. Photo: Yang Sutie/VCG via Getty Images Some of the worst countries for emissions are turning around their reputations through high-profile efforts to tackle climate change, a new survey suggests. Japan is one of the 10 highest producers of carbon dioxide worldwide, but also had the biggest improvement in its environmental image in a new index. The FutureBrand Country Index surveyed 2,500 people from 75 different countries, asking how different countries rated on a wide range of measures. Japan had a 14% increase since the last 2014 survey in respondents saying it performs very strongly on its environmental record. READ MORE: Labour would crack down on lending to firms which kill the planet Finland and Norway showed the second and third highest increases in perceived environmental friendliness. A majority of respondents said the three countries had a positive public image on their environmental records. Japan also had the best reported reputation overall for any country. Since the Fukushima nuclear disaster in 2011, plans for decarbonization took a step backward as Japanese power plants expanded their use of fossil fuels, the FutureBrands report said. Yet as Japanese citizens have expressed concerns over severe weather, the government pledged to reduce greenhouse gas emissions by 26% before 2030. The government has listened, and the world has noticed. Nigeria, Denmark, Romania, Sweden, Oman, South Korea, and Slovakia also featured in the 10 most-improved countries for their green image worldwide. Environmental friendliness. |
First Drive: Mercedes-AMG’s New 53 Series Is a Mild Hybrid That Actually Lives Up to Its Buzz
Click here to read the full article. American’s can’t seem to get enough of Mercedes-AMG . California alone accounts for about a quarter of the high-performance brand’s sales, so it’s no wonder the Germans are cranking out new models faster than you can say “ Aufrecht Melcher Grossaspach .” The latest addition is the AMG 53 series, which—no surprise—sits above the AMG 43 lineup and just below the V8-powered AMG 63s . The cars that currently get the AMG 53 treatment include the new CLS Coupe , the E-Class sedan and the E-Class coupe and convertible. You can tell an AMG 53 by the twin-blade radiator grille that stretches across a diamond-pattern mesh insert, black side mirror caps, rear lip spoiler and round twin tailpipes. Unique, 20-inch wheel designs, made especially for the model line, function to aid aerodynamics. Subtle twin power domes run the length of the E 53s hood, suggesting a copious corral of horses beneath. Related stories Bordeaux vs. Napa: What Is the Best Wine Region in the World? Mercedes-AMG's New Four-Cylinder Engine Is the Most Powerful of Its Kind Auction Napa Valley Raises $12 Million for Charity There are 429 of those horses in fact, courtesy of a new 3.0-liter turbocharged inline-6 that uses a 48-volt electric starter-generator—dubbed EQ Boost—to bolster output by another 21 hp. This mild hybrid system also helps to provide instant torque off the line, and when combined with the 53s auxiliary compressor (which helps the turbochargers spool up faster), the result is a quick and delightfully smooth takeoff. On a test drive through Northern California’s Napa Valley , it was easy to love this new power train, with quick shifts from the 9-speed automatic transmission and an extra 184 ft lbs of torque from the EQ boost at low engine speeds. The maximum torque is rated at 384 ft lbs. Mercedes-AMG says the E 53 Coupe can do the zero-to-60 mph dash in 4.3 seconds, with the other models lagging only a tenth-of-a-second behind. While that can’t match the blistering performance of the AMG 63s, it’s more than enough to draw the attention of grazing cows, or the ire of the local Highway Patrol. Helping (or hurting) the cause is the vehicle’s delicious, throaty exhaust note, especially when in Sport and Sport-Plus modes. When efficiency is a priority, an Eco drive mode shifts at lower revs and decouples the engine while coasting to save fuel. Through the regions wet and winding roads, the CLS 53 and E 53 Coupe stayed stable and in control with the 4MATIC variable all-wheel-drive system (which can vary torque from full rear-wheel drive to a 50/50 front-to-rear split) and sport air suspension. Story continues The cabin of the AMG 53 oozes sporty elegance, with body-hugging sport seats, a flat-bottomed steering wheel, and contrast stitching over soft leather. Dual widescreen displays, of which we have sung the praises on other Mercedes models, dominate the instrument panel, along with jet-turbine-inspired air vents, beset by ambient lighting that can be changed to an almost infinite variety of colors. The CLS 53 and E 53 are on sale now, and late next year the midsize GLE 53 will join the family, using the same inline-6 engine plus the all-terrain capabilities of the latest GLE-Class , including driving modes for trails and sand. It will also be the first AMG 53 model to use the new MBUX interface, with a digital voice-activated assistant that can find the nearest coffee shop, turn up the AC, or even remind you to call home when you’ve stayed out playing just a little too long. Sign up for Robb Report's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Harry and Meghan's new home renovation cost taxpayers £2.4m
Taxpayers picked up a £2.4m bill for the six-month renovation of Prince Harry and Meghans new country home in Windsor, royal accounts show. The Duke and Duchess of Sussex moved out of Kensington Palace, where Prince William and Kate live, earlier this year before of the birth of their first child. The new property, near Windsor Castle, went through extensive renovations before they moved in, with five properties turned back into a single home for the couple and their baby son Archie. Called Frogmore Cottage, the Sussex Home is on the grounds of Frogmore House, where they held their wedding reception last year. But the couple used their own funds to pay for all fittings and fixtures in the property. READ MORE: Royal finance expert explains how the royal fortune works They are reported to have installed a mother-and-baby yoga room complete with a sprung wood floor, according to the Press Association. They may have also added a new luxury kitchen and bathroom. The latest figures show the monarchy cost the taxpayer almost £20m more in 2018-19 than the previous year. The data on Sovereign Grant, which pays for the Queen and her households official expenses, was released by the royals on Tuesday. It added up to a £67m bill to the taxpayer over the year. Updating parts of Buckingham Palace and maintaining occupied royal palaces accounted for much of the increase. Keeper of the privy purse Sir Michael Stevens, who is responsible for the monarchys accounts, explained the cost of the Frogmore Cottage renovations. The property had not been the subject of work for some years and had already been earmarked for renovation in line with our responsibility to maintain the condition of the occupied royal palaces estate, Stevens said. The Sovereign Grant covered the work undertaken to turn the building into the official residence and home of the Duke and Duchess of Sussex and their new family. Harry and Meghan with their newborn son. Photo: Dominic Lipinski - WPA Pool/Getty Images READ MORE: Meghan and Harry very excited to launch own foundation Story continues The building was returned to a single residence and outdated infrastructure was replaced to guarantee the long-term future of the property, he added. Substantially all fixtures and fittings were paid for by Their Royal Highnesses. A royal source told Press Association the major work on the couples cottage included replacing defective wooden ceiling beams and floor joists, as well as outdated and inefficient heating systems. The home is also said to have needed substantial new electrical rewiring, including its own electrical sub-station. The renovation took around six months and was largely completed a few months before Harry and Meghans son Archie was born on 6 May. Some works are not yet finished, including repainting the outside of the property. READ MORE: How the Royals make their money |
Top 20 countries with the best reputation and brand
Tokyo station in Japan. Photo by: Prisma by Dukas/Universal Images Group via Getty Images Britain and the US are losing their positive global reputation because of their turbulent domestic politics, a new index suggests. Japan, Norway and Switzerland have the best brand abroad, according to a survey of 2,500 tourists from 75 countries. The 2019 Country Index by FutureBrand highlights measures of a great nation beyond GDP, using survey responses on quality of life, business, culture, values and tourism to rank countries. It also compares how they rank on such measures with their position on the World Banks league table of the biggest global economies. Britain, which has the worlds fifth biggest GDP, has slumped seven places in the rankings since the last index in 2014, finishing 19th. The United States, the worlds biggest economy, has also slipped five places to 12th. Britain's reputation has been dented by its polarised politics, a new index suggests. Photo: Dan Kitwood/Getty Images READ MORE: Three years after Brexit, firms are still paralysed by uncertainty Both countries are now broadly perceived as being less inviting to tourists, visitors, students and investors alarmed by their political climates. Eight of the top 10 countries are in Europe, and FutureBrand says the top three are broadly stable, neutral and social democratic in their politics. Some of the fastest-rising countries not in the top 10 include Slovakia, Peru, Hungary, Turkey and Romania, despite several being affected by significant political turmoil in recent years. Respondents to the online survey earlier this year appeared more concerned by environmental friendliness, quality of life and tolerance than in the previous survey in weighing up countries reputations. Jon Tipple, chief worldwide strategy officer at FutureBrand, said: Despite still being in the top 20, by a whisker, falling out of the top 15 ranking should cause concern for Brand Britain. Our research indicates that polarised politics could be to blame. The top 20 countries with the best global brands Here is the full list of FutureBrands top 20: Japan Norway Switzerland Sweden Finland Germany Denmark Canada Austria Luxembourg New Zealand United States Netherlands Italy Australia United Arab Emirates France Singapore United Kingdom South Korea |
Monzo hits £2bn valuation as it raises £113m from Y Combinator
Monzo CEO Tom Blomfield. Photo: Monzo App-only bank Monzo is now worth over £2bn, just eight months after hitting a valuation of £1bn . The fresh milestone came on Tuesday as Monzo announced it had raised £113m at the new valuation. Monzo last raised money in October 2018, when it was valued at £1bn. The new valuation makes London-headquartered Monzo one of Europe’s most valuable private tech companies. Most of the new money raised came from Y Combinator Continuity, a venture capital fund that grew out of legendary Silicon Valley company incubator Y Combinator. Other funds involved in the investment round include Latitude, General Catalyst, Stripe, Passion Capital, Thrive, Goodwater, Accel, and Orange Digital Ventures. READ MORE: Startup bank Monzo heads to US as monthly sign-ups hit 250,000 “It’s so exciting when amazing investors back our mission to transform banking and make money work for everyone,” Monzo CEO Tom Blomfield said in a statement. “With more than two million customers we’ve come a long way since we started but there’s still a lot more to be done — by listening to our community we’ll keep working hard to deliver the products our customers need to give them better control of their finances.” Monzo, known for its iconic “hot coral” debit cards, was founded as an app-only bank in the UK in 2015. It has grown rapidly and Blomfield recently told Yahoo Finance UK Monzo is on track to sign up 250,000 new customers this month. The company said it will use the fresh funds to fuel further growth. Monzo recently announced plans to expand to the US. READ MORE: Startup bank Monzo is a 'unicorn' after raising £85m — and CEO says it's signing up 100,000 customers a month “The team is well on their mission of building the best bank in the world, while simultaneously scaling revenue rapidly and sustainably,” Anu Hariharan, YC’s Continuity Partner, said in a statement. “Ultimately, I think everyone in the world, not just the UK and the US, is going to shift to digital banking,” Blomfield told Yahoo Finance UK earlier this month. “In 10 or 20 years, I honestly don’t see the role of branches. The last time I booked a flight, I didn’t go into a travel agency, whereas 20 years ago that’s what everyone did. Story continues ———— Oscar Williams-Grut covers banking, fintech, and finance for Yahoo Finance UK. Follow him on Twitter at @OscarWGrut . Read more: Huawei fallout spreads: UK chipmaker's stock tanks 35% on profit warning Bank of England's Carney gives Facebook's Libra cautious backing Bank of England cuts growth forecast on no-deal Brexit fears, rates unchanged Why politicians and regulators are already going after Facebook's Libra Lloyds exec defends CEO's £2.8m pay: 'People like a winner' |
UK and US reputations take a 'nosedive' over Brexit and Trump
Queen Elizabeth II and US President Donald Trump participate in an event to commemorate the 75th anniversary of D-Day, in Portsmouth. Photo: Chris Jackson/Pool via Reuters The UK’s and the US’s international reputations have “nosedived” over the last five years, according to a new survey. The UK slipped seven places to 17th in the 2019 Country Index by FutureBrand. The US fell five places to 12th in the ranking. Both countries are “now broadly perceived as being less inviting to tourists, visitors, students, and investors.” FutureBrand’s Country Index, last produced in 2014, highlights “measures of a great nation” beyond GDP. The ranking is based on survey data from 2,500 people from 75 countries who answered questions about quality of life, business, culture, values, and tourism. The UK’s fall in the rankings is one of the steepest drops, outpaced only by Mexico and Morocco, which both fell by 9 places, South Africa, which fell 11 places, Ireland (12), Costa Rica (13), and Puerto Rico (29). The UK “suffered pretty much across the board,” the report said, “with only slight increases in a handful of categories, and an abysmal rating for Value for Money.” “Despite still being in the top 20, by a whisker, falling out of the top 15 ranking should cause concern for Brand Britain,” Jon Tipple, chief worldwide strategy officer at FutureBrand, said. “Our research indicates that polarised politics could be to blame.” FutureBrand said Brexit in the UK and the US election of President Donald Trump contributed to a drop off in the perceived tolerance of the countries. “Despite their GDP strength, these traditional ‘world powers’ are not winning on perception as respondents showed less emotional connection with both of these nations, and are less likely to live/study or visit either country,” the report said. The report also warned companies would also be less likely to invest in either country if their international reputations continue to wane. “In 2019, individuals and companies are more likely to buy products and services from countries on their list of preferred places to visit or invest in,” the report said. “With the uncertainty over Brexit and the ongoing international trade issues between the US and China, both countries need to reclaim lost ground in order to experience benefits from positive country brand perception.” Japan, Norway, and Switzerland topped the list with the best international reputations. |
Star Wars Galaxy’s Edge Introduces New Virtual Queue System To Control Crowds
A long time ago in a galaxy far, far away, there was a new addition to Disneyland in Anaheim called Star Wars: Galaxy’s Edge and it was only open to people with reservations. But on the 24th day of June, the park made this land available without reservations which meant that anyone who had admission to Disneyland could have access to new themed land that is set in the Star Wars universe planet of Batuu . That said, Galaxy’s Edge is already the most popular section of the park, but in order to avoid massive crowds, Disneyland has come up with a new virtual queue. If you want to ride Millennium Falcon’s Smuggler’s Run, drink some blue milk, build your own lightsaber or join The Resistance while at Disneyland, the park has come up with a system to control the crowds with a virtual queue. For those who are early risers, they will be able to enjoy Galaxy’s Edge, but as the day passes and the land gets more crowded (which you will be able to monitor via the Disney app), a virtual queue will come into play. Guests will be able to sign up for “boarding times” to Batuu as early as 7 am via FastPass kiosks or the Disney app. They will be notified on their phones when their boarding times are available and will have two hours to show up to enter the land — but don’t think you can do this from home. You must be in the park in order to sign up for boarding time to Batuu. The virtual queue will last as long as it is needed to keep up with the demand and wild popularity of Galaxy’s Edge. Related stories Star Wars: Galaxy's Edge Getting Less Far, Far Away For Opening-Day Visitors At Disneyland Star Wars: Galaxy's Edge Attraction Debuts To Gushing Praise From 'Star Wars' Legends 'Star Wars: Galaxy's Edge' Expands Universe In Disneyland With Millennium Falcon, Wildly Immersive Experiences -- And Blue Milk Even though you won’t need reservations to get into Galaxy’s Edge, you will still need reservations to get into specific parts of the land including Savi’s lightsaber workshop and Oga’s Cantina — the only place in Disneyland where you can enjoy otherworldy alcoholic beverages. Story continues Disneyland posted this helpful video to help with your journey to Galaxy’s Edge. Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Is InvoCare Limited's (ASX:IVC) CEO Pay Justified?
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In 2015 Martin Alistair Earp was appointed CEO of InvoCare Limited (ASX:IVC). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for InvoCare
According to our data, InvoCare Limited has a market capitalization of AU$1.8b, and pays its CEO total annual compensation worth AU$1.1m. (This number is for the twelve months until December 2018). That'slessthan last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$761k. We looked at a group of companies with market capitalizations from AU$1.4b to AU$4.6b, and the median CEO total compensation was AU$2.4m.
A first glance this seems like a real positive for shareholders, since Martin Alistair Earp is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at InvoCare, below.
On average over the last three years, InvoCare Limited has grown earnings per share (EPS) by 2.8% each year (using a line of best fit). It achieved revenue growth of 3.2% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested inthisfreevisualization of analyst forecasts.
Most shareholders would probably be pleased with InvoCare Limited for providing a total return of 36% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like InvoCare Limited pays its CEO less than similar sized companies.
Martin Alistair Earp is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling InvoCare (free visualization of insider trades).
Important note:InvoCare 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. |
Caesars Entertainment Buyout Is a Big Bet for Eldorado Resorts
On its own,Caesars Entertainment(NASDAQ: CZR)was finally starting to reach a sustainable point. The company got through the bankruptcy of its biggest operating unit, launched a REIT, and is starting to growEBITDAagain. But its stock price wasn't responding, soCarl Icahn started pushing the company to sell itself. Today, it appears his efforts have paid off.
Eldorado Resorts(NASDAQ: ERI)has offered a total package of $17.3 billion, including assumption of debt, to Caesars Entertainment to acquire the company. Current reports have the deal being for $7.2 billion in cash and 77 million shares of Eldorado shares in exchange for Caesars' equity. The deal will have the much smaller Eldorado continue its buyout streak and greatly increase not only its scale, but also its long-term risk.
Image source: Getty Images.
A few years ago, Eldorado was a small gaming company, but it saw an opportunity to go on a big buying spree. It acquired MTR Gaming, Isle of Capri Casinos, and Tropicana Entertainment to expand its empire to 26 casinos in 12 states.
You can see below that even after the buying spree, Caesars Entertainment is a much larger company. So, naturally Eldorado will have to take on additional debt to complete the buyout, on top of Caesars' debt, increasing its own leverage.
CZR Enterprise Valuedata byYCharts
The good news is that Eldorado is getting Caesars for relatively cheap, at least by today's gaming standards. Caesars generated $2.3 billion of EBITDAR, a proxy for cash flow from resorts, in 2018; an $18 billion buyout would be a multiple of under 8 times. The multiple is low partly because Caesars doesn't own its real estate, increasing its operating leverage.
Another piece of the deal isVICI Propertiesacquiring $3.2 billion of real estate, which is expected to reduce Eldorado's overall debt load.
If this buyout seems eerily familiar, it's because Caesars Entertainment was once known as Harrah's Entertainment, which was bought out for $28 billion (including debt) by private equity buyers in 2007. Before long, the company was in financial ruin and has been scrambling to generate any value for its owners ever since.
The biggest problem Harrah's, and ultimately Caesars, had was debt. The company was highly leveraged when the recession hit in 2008, and when spending on vacations and gaming dropped, the company couldn't adapt. Eldorado has now set itself up to be the Harrah's of 2007. If the economy continues growing, the deal will be a great leveraged bet on gaming growth, but if a recession hits, the companywon't be well positioned to survive.
Shares of Eldorado Resorts dropped double digits when the Caesars acquisition was announced, so investors clearly aren't seeing the move as positive from that company's side. The big reason is risk. The company was already highly leveraged after its recent buying spree, and this just increases that leverage. If the gaming industry or economy teeters at all in the next few years, the acquisition could be another disastrous move, which investors are pricing in today.
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Travis Hoiumhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Exclusive: Dirty oil crisis over for Russia, but contagion felt on high seas
By Olga Yagova, Dmitry Zhdannikov and Florence Tan
MOSCOW/LONDON (Reuters) - In the opinion of Russian officials, the oil contamination crisis that disrupted flows from the world's second-largest exporter of crude this spring is long over.
But a closer look at a dozen tankers containing dirty Russian oil suggests that for the buyers, the debacle has a long way to run and will cost them hundreds of millions of dollars.
Two months since buyers discovered Russia was shipping oil contaminated with organic chloride, which is designed to boost output but can destroy refining equipment, less than half of the tainted crude loaded on tankers has found end-users.
More than 1 million tonnes worth around $500 million remains homeless, zigzagging between Europe and Asia. In China, buyers have refused to take dirty Russian oil, forcing trader Vitol to send a cargo back to Europe.
The Chinese development has not previously been reported.
That means buyers are struggling to place oil even at discounts of $10-15 per barrel - or $10-15 million per regular Suezmax tanker - to the current, regular price of $65 a barrel.
"I’m not willing to risk our equipment just for cheap crude," said an oil trader with a North Asian refinery.
Buyers have also paid millions of dollars in demurrage charges as tankers are stuck with the dirty oil, preventing ship-owners from sending them on new voyages.
Russia has promised to compensate buyers after they file claims post-sale.
"The problem is that this oil is often impossible to sell. So how can I file a claim?," a Russian oil buyer said.
"Sometimes you have a feeling that Russia has moved on from the issue. There was a meeting with buyers at the beginning of June. Since then, we've had no communication whatsoever," another major buyer said.
The Russian Energy Ministry and Transneft did not respond to a request for comment.
CHINA SAYS "NO"
News of the dirty oil broke in late April when buyers from the Baltic port of Ust-Luga and along the Druzhba pipeline to Germany, Poland, Hungary, Slovakia, Ukraine, Belarus and the Czech Republic discovered organic chloride content 10-20 times above normal levels.
After several weeks of debate, Russian pipeline monopoly Transneft pledged to pay compensation to Russian producers such as Rosneft, Surgutneftegas, as well as Kazakhstan, for contaminated oil.
Those producers shall in turn compensate Western buyers including oil traders Vitol, Glencore, Trafigura and oil majors Total, Shell, BP, Eni and PKN Orlen, among others.
Hopes were high that China and India would take a big chunk of dirty oil - as at least 800,000 tonnes began to sail from Europe to Asia - but those have not materialized.
Five trading sources said Chinese customs authorities had told buyers not to take crude with organic chloride content above the Russian standard of 10 parts per million. Some cargoes had as much as 100-200 ppm. The authorities declined to comment.
Suezmax Chios I, fixed by Vitol, has been floating around the Suez for a month, initially set to be sold to an independent Chinese refiner, but is now heading back to Europe with no final buyer, according to traders and ship-tracking data.
Another Vitol Suezmax, the Sonangol Rangel carrying 140,000 tonnes of contaminated Urals, was bought by Chinese independent refiner Bora Group initially for its mainland Dalian plant, but is now heading to storage near Malacca.
A very large crude carrier (VLCC) with 270,000 tonnes, Glencore's Amyntas, also went to Singapore instead of China.
So far, only Sinopec has been allowed to import dirty crude - in the 2-million-barrel VLCC New Comfort - into Ningbo-Zhoushan, eastern China, because it bought the oil in early April before the contamination news broke, trading sources said. The vessel is due to arrive in China on July 12.
Sinopec, Vitol and Glencore declined to comment.
STEEP DEMURRAGE BILLS
In Europe, a limited number of buyers dared to refine the oil including Spain's Repsol, Swedish Preem and Finnish Neste Oil, according to traders and Refinitiv Eikon flows data. They are estimated to have taken 600,000 tonnes.
Dirty oil needs to be diluted before being refined, sometimes one tainted barrel with 20 barrels of clean oil.
"We took a cargo to one of our refineries. It's still being refined and is likely to be for several more months," a trader with an oil major told Reuters.
Meanwhile, at least four cargoes of 100,000 tonnes each are anchored at various European ports and have yet to find a home.
Demurrage costs for the tankers have exceeded $1 million per vessel, four trade sources said.
In one such example, the FSL Shanghai ship chartered by BP has zigzagged between the European ports of Ventspils and Rotterdam since loading in Ust-Luga on May 2.
As of Monday, it still had no buyer and had paid $1.3 million in demurrage charges to date with every new day costing an extra $25,000, trading and shipping sources said.
BP did not respond to a request for comment.
Total's Mendeleev Prospect vessel has been anchored near the Polish port of Gdansk since April 27, while Glencore's Searuby and Searanger vessels are anchored near Turkey's Aliaga and the UK shore.
(Reporting by Olga Yagova in Moscow, Dmitry Zhdannikov in London and Florence Tan in Singapore; Additional reporting by Aizhu Chen and Isabel Wang; Editing by Dale Hudson) |
Imagine Owning New Energy Minerals (ASX:NXE) And Taking A 99% Loss Square On The Chin
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Long term investing works well, but it doesn't always work for each individual stock. We really hate to see fellow investors lose their hard-earned money. Spare a thought for those who heldNew Energy Minerals Ltd(ASX:NXE) for five whole years - as the share price tanked 99%. Furthermore, it's down 48% in about a quarter. That's not much fun for holders.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
Check out our latest analysis for New Energy Minerals
With zero revenue generated over twelve months, we don't think that New Energy Minerals has proved its business plan yet. You have to wonder why venture capitalists aren't funding it. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. For example, investors may be hoping that New Energy Minerals finds some valuable resources, before it runs out of money.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. It certainly is a dangerous place to invest, as New Energy Minerals investors might realise.
New Energy Minerals had liabilities exceeding cash by AU$2,920,207 when it last reported in December 2018, according to our data. That puts it in the highest risk category, according to our analysis. But with the share price diving 62% per year, over 5 years, it's probably fair to say that some shareholders no longer believe the company will succeed. You can click on the image below to see (in greater detail) how New Energy Minerals's cash levels have changed over time.
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. Would it bother you if insiders were selling the stock? I'd like that just about as much as I like to drink milk and fruit juice mixed together. You canclick here to see if there are insiders selling.
We've already covered New Energy Minerals's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. We note that New Energy Minerals's TSR, at -92% is higher than its share price return of -99%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.
New Energy Minerals shareholders are down 12% for the year, but the market itself is up 11%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. However, the loss over the last year isn't as bad as the 40% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. If you would like to research New Energy Minerals in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
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