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China Mobile to set up $4 billion 5G industry fund
HONG KONG (Reuters) - China's largest telecommunications operator China Mobile said on Tuesday it will set up a 30 billion yuan ($4.36 billion) 5G industry fund and has already raised the first installment of 7-10 billion yuan. China Mobile Chairman Yang Jie made the announcement at a press conference in Shanghai, according to a transcript of his speech provided by the company. He did not specify a timeline for the fund. Yang also said China Mobile will invest 3 billion yuan into developing 5G content such as ultra-high definition videos and games. In 2019, China Mobile plans to build more than 50,000 5G base stations in China and provide 5G services in more than 50 cities, he said. China issued 5G license earlier this month. (Reporting by Sijia Jiang; Editing by Himani Sarkar) |
Did Changing Sentiment Drive Nepa's (STO:NEPA) Share Price Down By 33%?
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Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. That downside risk was realized byNepa AB (publ)(STO:NEPA) shareholders over the last year, as the share price declined 33%. That's well bellow the market return of 11%. However, the longer term returns haven't been so bad, with the stock down 22% in the last three years. Furthermore, it's down 14% in about a quarter. That's not much fun for holders.
See our latest analysis for Nepa
Nepa isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last twelve months, Nepa increased its revenue by 14%. That's not a very high growth rate considering it doesn't make profits. Given this lacklustre revenue growth, the share price drop of 33% seems pretty appropriate. In a hot market it's easy to forget growth is the life-blood of a loss making company. But if you buy a loss making company then you could become a loss making investor.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
Take a more thorough look at Nepa's financial health with thisfreereport on its balance sheet.
Nepa shareholders are down 33% for the year, but the broader market is up 11%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Shareholders have lost 7.9% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SE 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. |
GBP/USD Daily Forecast: Pound Breaks to Fresh Monthly High
Boris Johnson, who is almost certainly going to be the next British prime minister, once again committed to a departure from the EU by October 31st.
It has been three years since UK citizens voted to leave the European Union and Johnson promises to set forth action to make that happen. He commented on methods to prevent the Irish Backstop. He also discussed how the UK will pay the agreed-upon $50 billion exit fee.
Johnson stated that all possible attempts to make a deal will be made and that a no-deal Brexit would be used as a last resort. He added that putting a no-deal Brexit on the table shows how serious the UK is about leaving which should provide some additional negotiation power.
GBP/USDlooks to be scaling some important resistance but the move is not confirmed yet. Perhaps Powell will provide dollar bears a catalyst to get the currency pair over the major hurdle.
Fed Chair Powell will have an opportunity to signal a July cut when he speaks later today, if it is the Fed’s intention to ease policy next month. Policymakers made a dovish shift at their last meeting which has been fueling a dollar decline.
The futures markets seem convinced that the Fed will ease in July and have fully priced in at least a 25 basis point cut. The odds of a 50 basis point cut stand around 40%. It is common for the Federal Reserve to communicate policy changes ahead of implementation. For that reason, it’s reasonably fair to believe Powell will send a signal in his speech later today.
GBP/USDhas been stuck at a major resistance level found at 1.2747. This level has held the pair lower since late May. The pair seems to be trying to make a bullish break in early European trading. However, the break is not confirmed yet.
If the pair manages to break higher from here, I think we will see some renewed strength to the upside. I think it’s very possible we can see the pair continue higher to the 1.2900/1.2950 area.
On the other hand, I don’t think bulls should get ahead of themselves considering how big of a hurdle the mentioned horizontal level is. In the event the pair fails to hold above it, I see some nearby support from a rising trendline originating from last weeks lows. Beyond that, I watching a horizontal level at 1.2695.
• Fed Powell’s speech can trigger renewed dollar weakness if he signals a move in July
• A sustained hold above 1.2747 stands to renew upside momentum
• A fall below the rising trendline signals a correction. First support is seen at 1.2695.
Thisarticlewas originally posted on FX Empire
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Nelcast Limited (NSE:NELCAST) Has A ROE Of 9.7%
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Nelcast Limited (NSE:NELCAST), by way of a worked example.
Nelcast has a ROE of 9.7%, based on the last twelve months. Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.097.
See our latest analysis for Nelcast
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Nelcast:
9.7% = ₹384m ÷ ₹4.0b (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Nelcast has a similar ROE to the average in the Metals and Mining industry classification (11%).
That's neither particularly good, nor bad. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
Although Nelcast does use debt, its debt to equity ratio of 0.42 is still low. I'm not impressed with its ROE, but the debt levels are not too high, indicating the business has decent prospects. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities.
Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. You can see how the company has grow in the past by looking at this FREEdetailed graphof past earnings, revenue and cash flow.
But note:Nelcast may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
New $35 Raspberry Pi is the Most Powerful Yet for Running a Full Bitcoin Node
The Raspberry Pi Foundationreleaseda new, more powerful model of its miniscule single-board computer on June 24, which costs $35 a pop and has the capacity to runfull nodescheaply on the bitcoin (BTC) network.
Earlier versions of the Raspberry Pi have beenpopularwith bitcoin enthusiasts and decentralization advocates as it offers low-cost and thus low-barrier entry to those interested in running their ownfull nodeson the network.
Doing so allows users to verify their own transactions over the bitcoin network independently without having to trust third-party wallet services.
Unlike miners, who are rewarded with BTC for validating transactions, full nodes do not get compensation for their contribution to the network — which they make in the form of hosting and transmitting updated copies of the blockchain (or distributed transaction ledger).
The new Pi is thus apparently poised to make the process and costs of running a full node more efficient for all network participants — whether they be miners, enterprises, or privacy-conscious individuals.
As of press time, almost23% of bitcoin nodesglobally are run from the United States, followed by Germany at circa 19%.
One of the industry’s popular pre-synced node products, Casa Node, has relied on an inbuilt Raspberry Pi — though earlier iterations of the model havefrustrated some usersdue to its reported slowness.
The new model — the computer’s 4th version — purportedly represents a significant upgrade on earlier versions. At its most expensive — with 4GB RAM — it costs $55 (excluding tax).
The Raspberry Pi Foundation says the latest model supports for an extra 500mA of current — enabled by the switch from USB micro-B to USB-C — thereby ensuring the computer has a full 1.2A for downstream USB devices.
It also comes with a new operating system, which the Foundation claims come with a host of back-end technical improvements, Gigabit Ethernet speed, a modernized interface, plus support for updated applications such as Chromium 74 web browser.
Notably, in the years since Pi’s first release in 2012, other options of low-barrier entry hardware have emerged — including HTC’s Exodus 1Ssmartphone, which has bitcoin full node capability and wasreleasedthis May.
Also in May, Cointelegraphreportedon data released by bitcoin core developer Luke Dashjr apparently indicating that over half of the full nodes in the bitcoin network were still running client software vulnerable to an inflation bug discovered back in September 2018.
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$11,381: Bitcoin Price Bulldozes to New 2019 High; All-Time High Next?
The bitcoin price has surged to a new 2019 high once again at $11,381 less than 24 hours after climbing to $11,200 on June 24.
The bitcoin price has increased from $9,200 to $11,381 in the past week, up 4 percent on the day (source: coinmarketcap.com)
Analysts like Fundstrat’s Thomas Lee, RT host Max Keiser, and technical analyst Peter Brandt foresee the bitcoin price reclaiming its all-time high at $20,000 in the near term as the dominant crypto asset continues to see its momentum strengthened.
According to David Puell, the Head of Research at Adaptive Fund, strong resistance for bitcoin can be found at the $13,800 to $13,900 range.
There exists a possibility that the asset may consolidate as it reaches that range considering the lack of resistance between the current level to the $13,900 mark.
Read the full story on CCN.com. |
Why Nordex SE (ETR:NDX1) Could Be Worth Watching
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Nordex SE (ETR:NDX1), which is in the electrical business, and is based in Germany, received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €15.46 at one point, and dropping to the lows of €12.12. 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 Nordex's current trading price of €12.28 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 Nordex’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 Nordex
Good news, investors! Nordex is still a bargain right now. According to my valuation, the intrinsic value for the stock is €15.83, but it is currently trading at €12.28 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Nordex’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
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. In the upcoming year, Nordex’s earnings are expected to increase by 91%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?Since NDX1 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on NDX1 for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NDX1. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Nordex. You can find everything you need to know about Nordex inthe latest infographic research report. If you are no longer interested in Nordex, 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. |
China Merchants Bank, Bank of Communications and Shanghai Pudong Development Bank dismiss US's North Korea sanctions breach charges
Mainland Chinese commercial banks China Merchants Bank, Bank of Communications (Bocom) and Shanghai Pudong Development Bank (SPDB) on Tuesday dismissed allegations they were in possible breach of US sanctions against North Korea.
In statements issued after their stocks were hammered by aWashington Postreport alleging misconduct, the lenders said they have been complying with international and Chinese laws, and were not involved in any investigations related to a possible breach of the sanctions.
China's ministry of foreign affairs voiced its opposition to possible sanctions against the banks. It said Beijing was committed to upholding United Nations Security Council resolutions against North Korea, and that it not only required individuals and financial institutions to follow all sanction resolutions passed by the UN, but had also urged overseas branches of Chinese financial companies to comply with local rules.
"Meanwhile, we are also opposed to the so-called long arm enforcement imposed by the US authorities on Chinese companies," Geng Shuang, a ministry spokesman, said at a press briefing in Beijing.
The Washington Post reported on Monday three large Chinese banks could lose access to the US financial systemafter a judge found them in contempt for refusing to comply with subpoenas in an investigation into breaches of North Korean sanctions.
Shares in China Merchants Bank dropped by more than 8.2 per cent in Shanghai, but recovered after the bank's statement to close 4.8 per cent lower. Photo: Reuters alt=Shares in China Merchants Bank dropped by more than 8.2 per cent in Shanghai, but recovered after the bank's statement to close 4.8 per cent lower. Photo: Reuters
The banks were not identified, but details in the court ruling align with a 2017 civil forfeiture action against Bocom, China Merchants Bank and SPDB, according to the report.
The three banks were identified by US authorities in official documents as early as 2016, according to earlier media reports, allegedly for handling bank accounts held by front companies used to enable North Korea to buy commodities, bypassing US sanctions.
Other state-owned banks, including Agricultural Bank of China, China Construction Bank and the Industrial and Commercial Bank of China, were also named in earlier investigations by the US Department of Justice.
Bocom stock fell by 3 per cent in Shanghai and 3.7 per cent in Hong Kong on Tuesday, following The Washington Post report. Photo: Reuters alt=Bocom stock fell by 3 per cent in Shanghai and 3.7 per cent in Hong Kong on Tuesday, following The Washington Post report. Photo: Reuters
"China Merchants Bank has noticedThe Washington Postreport. It involves information about a US court asking for client information from a Chinese bank," the lender said in its statement.
The US authorities should follow the agreement signed by China and the United States on mutual legal help in criminal matters for cross-border evidence collection, said the statement, quoted in mainland Chinese mediaThe Paper.
Bocom and SPDB issued statements with similar wording in the afternoon, also cited byThe Paper.
SPDB specifically acknowledged it had received a requirement from a US legal department to provide information about a client, in addition to other data and information. However, any individual or organisation shall not disclose related information to overseas parties without permission, it said.
SPDB was also identified byThe Washington Postas "at risk of losing access to US dollars", without any elaboration.
"I view it as likely to be a politically motivated attack by Trump administration officials looking for excuses to contain and curb China's growth ... It is doubtful that a large bank such as China Merchants Bank would break sanctions, as it has too much to lose," he said.
China Merchants Bank dropped by more than 8.2 per cent on Tuesday in Shanghai, but recovered after the bank's statement to close at 36.1 yuan, 4.8 per cent lower. Its H shares dropped by 7.9 per cent to close at HK$38.4 in Hong Kong. Bocom fell by 3 per cent to close at 6.1 yuan in Shanghai. Its H shares eased 3.7 per cent to close at HK$5.95. SPDB fell 3.1 per cent to close at 11.7 yuan in Shanghai.
The US excluded China's Bank of Dandong from its financial system in November, 2017, for reportedly helping North Korea evade financial sanctions to launder funds.
This article originally appeared in theSouth China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore theSCMP appor visit the SCMP'sFacebookandTwitterpages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved. |
Michael Jackson Estate Issues Statement of Support on 10th Anniversary of His Death
Michael Jackson ’s estate issued a statement Monday in support of the late pop star on the 10th anniversary of his death amid an ongoing battle over his reputation and legacy. The statement described Jackson as a “gifted artist and extraordinary humanitarian” whose continued influence in dance, fashion, music and art has made him “more important than ever.” It encouraged fans to perform a charitable deed in honor of Jackson, who died at his home in Los Angeles on June 25, 2009. Related stories Songs For Screens: Labrinth on Scoring HBO's Drake-Produced Drama 'Euphoria' Drake Turns Raptors' Celebration Into a Million-Person Hugfest Drake Drops Two New Songs to Celebrate Toronto Raptors' NBA Triumph The statement on “the void left by the loss of a father, son and brother” made no reference to the current controversy surrounding Jackson. But other public tributes to the singer timed to the anniversary of his death have been abandoned in the wake of “ Leaving Neverland ,” the explosive documentary that revived and elaborated on allegations against Jackson of child molestation. A possible unscripted series on his life was dropped, as were plans for a re-creation of “This Is It,” the concert Jackson was planning before he died, sources have told Variety . The late superstar’s estate has denounced the documentary as slanderous. Its statement Monday retailed his musical achievements and philanthropic activities and reasserted his status as a global icon. “When mastery of a craft is the measure, Michael Jackson ’s divine abilities remain the yardstick by which others are measured and against which today’s masters still measure themselves,” the statement said. But the damage done by “ Leaving Neverland ” to Jackson’s reputation is undeniable. Some radio stations have reportedly taken his songs off the air, Drake dropped a song featuring Jackson from his concert set list in Britain, and a show this past Sunday at London’s O2 Arena quit advertising itself as “ Quincy Jones Presents ‘Off the Wall,’ ‘Thriller,’ ‘Bad’” and changed it to “ Quincy Jones Presents Soundtrack of the 80s: Iconic Sounds & Defining Albums.” Sign up for Variety’s Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Bitsdaq Lists 7 New Projects Received More Than 10k Positive Reviews For Mobile App
SINGAPORE / ACCESSWIRE / June 25, 2019/ Bitsdaq, AsiaGlobal's cryptocurrency exchange, are pleased to announce the new listing of several projects and has expressed that it will promote quality projects in-full-force in the second half of 2019. ELAC(Elamachain), KTN(Kasoutuuka News), YGG(YGGDRASH), RNT(ONEROOT), GBT(Grabity), FNB, ALB(ALBOS), CLB(Cloudbric) are among the projects that will be listed. At the same time, The Bitsdaq App has also received over 10k positive reviews within two weeks since the official launch.
More information about the new listing and related trading, deposit, and withdrawal will be announced later on the official website.
Ricky Ng, founder and CEO of Bitsdaq, says the Bitsdaq Exchange aims to help high-quality blockchain projects to improve awareness and develop influence in the cryptocurrency ecosystem:
"To achieve this goal, Bitsdaq is selling project tokens to more than 2 million users, and users will have the opportunity to participate in projects that could change the landscape of the industry. Bitsdaq also provides a full range of consulting services for projects, enabling these blockchain projects to benefit from bitsdaq team's years of experience deep in the industry, and to allow that good projects focus on what really matters: developing products and increasing utility rate."
Bitsdaq has accumulated more than 2 million registered users in 3 months and is currently ranked third after Binance and Coinbase in traffic to global digital currency exchange, with 11.4 million monthly visits. Bitsdaq has over 100,000 community members, and the candy token BXBC is held by over 2 million active wallet address. Bitsdaq also received investment from prestigious institutions, including the NGC and Consensus Venture Group. The Bitsdaq App has also received over 10k positive reviews after the official launch. Last but not least, Bitsdaq has been given a rare high score of 8.5/10 by the world's leading blockchain agency, CryptoPotato.
Scan the QR code below to download the latest version of the Bitsdaq APP.
(Play Store)
https://play.google.com/store/apps/details?id=com.bitsdaq.exchange.main
(iOS)
https://itunes.apple.com/sg/app/bitsdaq/id1462558964?mt=8
Bitsdaq Social Media Page：
Twitter English:https://twitter.com/BitsdaqExchangeTwitter Chinese:https://twitter.com/BitsdaqChineseYoutube:https://www.youtube.com/channel/UCR5E7EH5zvd6gXK0f4NWANQ
Bitsdaq Community:
Bitsdaq Telegram English:https://t.me/BitsdaqExchangeOfficialBitsdaq Telegram Chinese:https://t.me/BitsdaqExchangeChineseBitsdaq Telegram Turkish:https://t.me/BitsdaqofficialTurkishBitsdaq Telegram Russian:https://t.me/BitsdaqOfficialRussiaBitsdaq Telegram Vietnamese:https://t.me/BitsdaqOfficialVietnamBitsdaq Telegram India:https://t.me/BitsdaqOfficialIndiaBitsdaq Official Channel:https://t.me/BitsdaqOfficialChannel
About Bitsdaq
Bitsdaq is a secure, reliable and advanced digital asset platform operating in Asia and built on cutting edge trading technology. The company provides opportunities and solutions for customers who want access to a broader selection of digital assets on a secure and reliable platform.
Contact:marketing@bitsdaq.com
SOURCE:Bitsdaq
View source version on accesswire.com:https://www.accesswire.com/549794/Bitsdaq-Lists-7-New-Projects-Received-More-Than-10k-Positive-Reviews-For-Mobile-App |
BMW's hybrid cars to switch to electric only mode in polluted cities
FRANKFURT (Reuters) - BMW's new hybrid cars will automatically switch off their combustion engines in heavily polluted inner city areas and use pure electric driving mode as a way to cut vehicle emissions, the carmaker said on Tuesday.
BMW's efforts to optimize the environmental impact of hybrid cars with engine cut off functions, comes as the auto industry struggles to sell purely electric vehicles, which accounted for only 1.5% of total car sales globally last year.
People have shied away from buying purely electric cars because of a lack of charging stations, and because they have a limited operating range and longer recharging times than combustion-engined variants.
Scaling up adoption of electric cars has proven difficult because cities are struggling to make costly investments into their electric infrastructure to ensure that new charging stations can handle powering up vehicle batteries at scale.
Even Germany's Ruesselsheim, home to carmaker Opel, needed to apply for state aid to build 1,300 charging stations.
Hybrid vehicles have the ability to recharge the electric battery while operating in combustion-engine mode, a function which eases customer anxiety about limited operating range, and takes pressure off cities to expand charging infrastructure.
BMW's new hybrids will have the cut off function from 2020 onwards and cities, including Rotterdam in the Netherlands, say the function has proven to be an effective way to cut pollution.
(Reporting by Edward Taylor; Editing by Edmund Blair) |
Turkey will lose F-35 warplane if Russia arms deal goes ahead, U.S. says
BRUSSELS, June 25 (Reuters) - The United States cannot allow Turkey to fly or help produce its F-35 stealth jets if Ankara goes ahead with the purchase of a Russian air defence system, America's envoy to NATO said on Tuesday.
"There will be a disassociation with the F-35 system, we cannot have the F-35 affected or destabilised by having this Russian system in the (NATO) alliance," U.S. Ambassador to NATO Kay Bailey Hutchison told reporters. (Reporting by Robin Emmott Editing by Alissa de Carbonnel) |
FOREX-Dollar crumbles to new lows vs euro, yen on U.S. rate cut bets
* Euro hovers around $1.14, hits new 3-month high
* Yen rises above 107 vs dollar, highest since January
* Analysts divided on whether dollar weakness will last
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Adds new analyst quote, details, latest prices)
By Tommy Wilkes
LONDON, June 25 (Reuters) - The U.S. dollar fell to a three-month low against the euro and dropped to its weakest against the Japanese yen since early January as the prospect of monetary easing by the Federal Reserve knocked demand for the U.S. currency.
The euro hit a three-month high of $1.1412, having gained 2.0% from a two-week low of $1.1181 touched a week ago. It last stood at $1.1382, down 0.1% on the day.
The dollar dropped 0.4% to as low as 106.78, having only fallen below 107 yen per dollar in the January flash crash and then last back in April 2018.
The yen has also benefited from investor nerves over tensions between the United States and Iran. Tehran said on Tuesday that U.S. sanctions permanently closed the path to diplomacy between the two countries.
Selling in the dollar has accelerated since the U.S. Federal Reserve signalled last week it would cut interest rates before year-end on mounting worries about an economic slowdown and the fallout from tariff wars between the United States and China.
U.S. 10-year Treasury yields again fell below 2% in earlier trading, reducing the interest rate advantage the dollar has enjoyed over rivals in recent years.
"We expect the Fed's pre-emptive cuts to temporarily weigh on the USD, especially versus G10 currencies, as the U.S. rates advantage compresses amid an environment of slowing global growth," said Marvin Barth, foreign exchange strategist at Barclays.
"However, the Fed's ability to support an extended U.S. expansion stands in contrast to clear sustained slowing – and rising risks – in China and Europe, implying a USD rebound in 2020."
The dollar index fell to a three-month low of 95.843, having lost 1.7% during the latest five sessions, and was last down 0.1% at 95.909.
The yen also rallied against the euro, adding 0.4% to 121.82 yen, while versus the British pound it was 0.2% ahead at 136.45 yen.
"Yen strength has been encouraged overnight by more risk-averse trading conditions in response to building concerns both over slowing global growth and rising geopolitical tensions between the U.S. and Iran," MUFG analysts said in a note.
Fed Chairman Jerome Powell was due to speak later on Tuesday.
Investors are waiting to see whether U.S. President Donald Trump and Chinese President Xi Jinping will at least call a truce in their trade war when they meet at a summit of the G20 major economies in the Japanese city of Osaka late this week.
Trump considers his meeting with Xi an opportunity to "maintain his engagement" and see where China is on their trade dispute, a senior U.S. official said on Monday.
Elsewhere, sterling benefited from the broad dollar weakness, rising to $1.2754, up 0.1% on the day.
However the pound is likely to remain under pressure because of Brexit concerns, with eurosceptic Boris Johnson the frontrunner to become the next leader and prime minister.
The euro was 0.3% firmer against the Swiss franc at 1.1108 francs, off almost 2-year lows of 1.1057 francs touched last week. (Editing by Gareth Jones) |
'X Factor' winner Matt Cardle opens up about his private messages with Meghan Markle
Matt Cardle appeared on Lorraine to clear up the speculation surrounding his private messages with Meghan Markle (ITV) Singer Matt Cardle has revealed that “absolutely nothing” came of his private messages with Meghan Markle. The former X-Factor winner reportedly exchanged DMs with the Duchess of Sussex before she started dating her now-husband Prince Harry. Cardle is said to have admired her performance in the US drama suits, and was surprised when she messaged him to say she was ‘a big fan of his work’. Speaking on Lorraine today, Cardle cleared up the situation by saying: “It was so little then, if not nothing, and it’s nothing now. “It was absolutely nothing. It’s just funny what can be made of nothing now.” 'It was so little then...' Can you believe that it’s been ten years since @MattCardle won #XFactor ?! The pop star joined us and cleared up all those rumours about Meghan, Duchess of Sussex. pic.twitter.com/nYIFWORxkv — Lorraine (@lorraine) June 25, 2019 Read more: Why Meghan Markle is called Princess of the United Kingdom on Archie's birth certificate Previously, a source told The Sun: “Matt followed Meghan initially in early 2015 because he thought she was a beautiful star from Suits. “But he was stunned when she followed him immediately back and started messaging him. She said she was a big fan of his work. “Matt couldn’t believe a Hollywood star like Meghan would even know who he was so he was very flattered and they chatted a little bit online before she suggested meeting up. “But then he met his girlfriend and knew it wasn’t appropriate to keep talking to Meghan so he ended up ghosting her. Meghan Markle reportedly exchanged messages with Cardle after he followed her on social media (ITV) Read more: BBC slammed as 'disgusting' after parodying Meghan Markle “It felt like there could have been a connection but the timing was wrong. He didn’t reply to her last message.” Story continues Cardle, 36, remains in a serious relationship with 28-year-old Amber Hernaman. Markle was living in London in 2015 following her split from first husband Trevor Engleson in August 2013. The former Suits star celebrated her first wedding anniversary with Prince Harry on Sunday. The pair have just become parents to son Archie Harrison Mountbatten-Windsor, who was born on May 7. |
European watchdogs demand detail on Facebook's cryptocurrency
By Huw Jones, David Milliken and Brenna Hughes Neghaiwi
LONDON/ZUG, Switzerland (Reuters) - Facebook's fledgling cryptocurrency faced mounting scrutiny on Tuesday as European central bankers and regulators demanded more detail on the social media giant's Libra project.
Britain's top financial regulator said there was not yet enough information to understand Libra, adding that it could be very significant for public policy and that would not easily get the go-ahead without further disclosure.
Facebook last week announced plans to launch Libra within the first half of 2020, part of an effort to expand beyond social media to e-commerce and digital payments.
"They are not going to walk through authorisation without that," Andrew Bailey, chief executive of the Financial Conduct Authority, told a British parliamentary committee.
Cryptocurrencies such as bitcoin remain one of the least-regulated areas of finance, and the response of domestic and international financial regulators and monetary authorities to the Libra project will have a crucial impact on its prospects.
S&P Global Ratings said regulatory hurdles were the main hurdle to Libra's success, and risked delays to its launch. The coin would likely be subject to differing regulatory approaches, as is the case with existing cryptocurrencies, it said.
"This level of scrutiny could imply either delays or limited scope in the initial roll-out," S&P said in a report.
Facebook's project has raised privacy concerns among U.S. lawmakers and prompted European central bankers to claim oversight to ensure it would not jeopardise the financial system or be used to launder money.
Until now, global central bankers have largely refrained from regulating digital currencies, concluding last year they were too small to pose a risk to the financial system.
Although Facebook's plan to expand into payments is not expected to be on the agenda of this week's G20 summit in Japan, the Financial Stability Board (FSB), which coordinates financial rules for G20 countries, said it could lead regulators to take a closer look at digital assets.
PLAY BY THE RULES
The FCA's Bailey said the watchdog had been in contact with Facebook, and that many more engagements could be expected, while Domenico Gammaldi, the Bank of Italy's head of market and payment system oversight, also called for further information.
"The white paper, that means 'white,' without any information," Gammaldi told the Crypto Valley Conference in Zug.
Bank of France Governor Francois Villeroy de Galhau said that Libra would have to respect anti-money laundering regulations and its backers would have to seek a banking licence if it was to offer services such as deposits.
France is using its year-long presidency of the Group of Seven nations (G7) to set up a task force to tackle such concerns at an international level.
Other central bankers were more sanguine about the project for which Facebook has recruited 28 partners including Mastercard, PayPal and Uber to form the Geneva-based Libra Association to govern the cryptocurrency.
"I think it's an interesting development and I'm pretty relaxed about it," Thomas Moser, an alternate member of the Swiss National Bank's governing board said.
"They have clearly indicated that they are willing to play according to the rules, they have been contacting the regulators," Moser said at the Crypto Valley Conference.
The Bank for International Settlements, an umbrella group for central banks, said on Sunday that greater political coordination was needed to deal with the entry into finance of major tech firms like Facebook.
(Reporting by Huw Jones and David Milliken in LONDON and Brenna Hughes Neghaiwi in ZUG; Writing by Tom Wilson and John Miller; Editing by Edmund Blair/Keith Weir/Alexander Smith) |
What Kind Of Shareholders Own Slack Technologies, Inc. (NYSE:WORK)?
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The big shareholder groups in Slack Technologies, Inc. (NYSE:WORK) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
With a market capitalization of US$18b, Slack Technologies is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it's seems that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about WORK.
View our latest analysis for Slack Technologies
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.
Less than 5% of Slack Technologies is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. 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.
Slack Technologies is not owned by hedge funds. There is some analyst coverage of the stock, but it could still become more well known, with time.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in Slack Technologies, Inc.. It has a market capitalization of just US$18b, and insiders have US$2.1b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You cancheck here to see if those insiders have been buying recently.
The general public, with a 46% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
With a stake of 40%, private equity firms could influence the WORK board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is Abercrombie & Fitch Co. (NYSE:ANF) A Smart Choice For Dividend Investors?
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Is Abercrombie & Fitch Co. (NYSE:ANF) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments.
A high yield and a long history of paying dividends is an appealing combination for Abercrombie & Fitch. It would not be a surprise to discover that many investors buy it for the dividends. The company also bought back stock equivalent to around 4.7% of market capitalisation this year. Remember though, given the recent drop in its share price, Abercrombie & Fitch's yield will look higher, even though the market may now be expecting a decline in its long-term prospects. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Explore this interactive chart for our latest analysis on Abercrombie & Fitch!
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 55% of Abercrombie & Fitch's profits were paid out as dividends in the last 12 months. This is a fairly normal payout ratio among most businesses. It allows a higher dividend to be paid to shareholders, but does limit the capital retained in the business - which could be good or bad.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Abercrombie & Fitch paid out a conservative 43% of its free cash flow as dividends last year. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
With a strong net cash balance, Abercrombie & Fitch investors may not have much to worry about in the near term from a dividend perspective.
Remember, you can always get a snapshot of Abercrombie & Fitch's latest financial position,by checking our visualisation of its financial health.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Abercrombie & Fitch has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was US$0.70 in 2009, compared to US$0.80 last year. Dividends per share have grown at approximately 1.3% per year over this time.
Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think is seriously impressive.
While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Abercrombie & Fitch has grown its earnings per share at 16% per annum over the past five years. Earnings per share have been growing rapidly, but given that it is paying out more than half of its earnings as dividends, we wonder how Abercrombie & Fitch will keep funding its growth projects in the future.
To summarise, shareholders should always check that Abercrombie & Fitch's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we think Abercrombie & Fitch has an acceptable payout ratio and its dividend is well covered by cashflow. Next, growing earnings per share and steady dividend payments is a great combination. Overall we think Abercrombie & Fitch scores well on our analysis. It's not quite perfect, but we'd definitely be keen to take a closer look.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 15 analysts we track are forecasting for Abercrombie & Fitchfor freewith publicanalyst estimates for the company.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Can We See Significant Insider Ownership On The Under Armour, Inc. (NYSE:UAA) Share Register?
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If you want to know who really controls Under Armour, Inc. (NYSE:UAA), 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. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
With a market capitalization of US$11b, Under Armour is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about UAA.
View our latest analysis for Under Armour
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 72% of Under Armour. 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 Under Armour's earnings history, below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Under Armour. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in Under Armour, Inc.. It is very interesting to see that insiders have a meaningful US$1.7b stake in this US$11b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You canclick here to see if those insiders have been buying or selling.
The general public holds a 12% stake in UAA. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
It's always worth thinking about the different groups who own shares in a company. But to understand Under Armour better, we need to consider many other factors.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
HomeAid Receives Support From Wells Fargo at PCBC
IRVINE, CA / ACCESSWIRE / June 25, 2019 /HomeAid America, a building industry charity and one of the nation's largest builders of housing for the homeless, was sponsored by Wells Fargo to host an awareness booth at the Pacific Coast Builders Conference in San Francisco on May 30-31. As part of this promotion, Wells Fargo donated $20,000 to the charity. Wells Fargo has been a long-time supporter and has contributed over $1.5 million to support HomeAid and help launch the expansion of new chapters nationwide over the past 18 years.
"Wells Fargo continues to be a rock for HomeAid, again sponsoring our booth at PCBC this year and adding a large donation in the process," said Peter Simons, CEO of HomeAid America. "Since being a founding member of HomeAid 30 years ago, Wells Fargo has always been there for us to help us fight homelessness across the country. We are so grateful for their support and commitment to our cause."
Wells Fargo Check Presentation to HomeAid America
Wells Fargo's renewed commitment comes at a pivotal time as HomeAid enters into its 30thanniversary and celebrates the success of completing over 560 projects that have housed more than 335,000 people who would have otherwise been homeless. Through the HomeAid model, more than $230 million of housing has been developed with a cost savings of over $120 million. This year, HomeAid has more than 60 housing projects currently in development that will add more than 1,300 beds for those in need.
"Wells Fargo is proud to continue our longstanding partnership with HomeAid, particularly at a time when we are seeing rising levels of homelessness in many of the cities that we serve. Supportive housing that includes services such as childcare, transportation access, employment training and education access has been identified as the strongest determinant in addressing homelessness," said Elena Bennett, Wells Fargo's senior VP of commercial real estate and member of the HomeAid America Board of Directors. "HomeAid has been successfully addressing homelessness and providing critical supportive housing across the country for 30 years. HomeAid continues to adapt to this crisis as it partners with service providers and communities seeking solutions to what is now a homelessness emergency in many communities. We are thrilled to contribute to HomeAid and partner with them in these efforts."
According to the National Law Center on Homelessness, each year over 3.5 million Americans experienced homelessness at some point. Nearly 1.5 million of them were children. HomeAid's program identifies charities in the community working to help the homeless that need additional facilities in which to house people and provide programmatic resources such as job skills training and financial counseling, as well as physical and emotional support. HomeAid then finds builders who are willing to take on these projects and build them at a deep discount by enlisting their trade partners to give their time and materials as in-kind donations.
About HomeAid AmericaHomeAid, founded in Southern California in 1989, is a nonprofit provider of housing and resources for the homeless that operates through a network of 18 chapters in 12 states. Celebrating "30 Years of Building the Way Home," HomeAid has completed over 560 housing projects with a value of more than $230 million, of which nearly 50 percent was donated by the building industry. HomeAid has added over 10,500 beds that have housed over 327,000 previously homeless individuals. For more information about HomeAid, call 1-888-3HOMEAID or visitwww.homeaid.org.
About Wells FargoWells Fargo & Company is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo's vision is to satisfy our customers' financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,700 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 33 countries and territories to support customers who conduct business in the global economy. With approximately 262,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune's 2019 rankings of America's largest corporations. News, insights and perspectives from Wells Fargo are also available atWells Fargo Stories.
SOURCE:HomeAid America
View source version on accesswire.com:https://www.accesswire.com/549692/HomeAid-Receives-Support-From-Wells-Fargo-at-PCBC |
Don't Waste Your Money on Penny Stocks; These 3 Are Better Buys
The allure of penny stocks comes from the fact that you can buy a lot of shares for a very small cash outlay. And if the shares happen to rise after you buy them, an increase of a small dollar amount translates to a large percentage. So penny stocks are potentially tempting for some less sophisticated investors.
Despite that temptation, most of these stocks are likely worth even less than whatever price they happen to be trading at. We asked three of our Motley Fool contributors for better buys than your typical penny stocks. They came up withBaozun(NASDAQ: BZUN),Ford(NYSE: F), andBerkshire Hathaway(NYSE: BRK-A)(NYSE: BRK-B). Here's why they're likely better for your pocketbook.
Image source: Getty Images.
Keith Noonan(Baozun):Investing in Chinese stocks might seem like a fraught proposition right now, and it's true that complications stemming from unresolved trade issues with the United States could impact the performance of otherwise promising companies in China. However, even with uncertainty in the trade situation, Baozun looks significantly less risky than most penny stocks and still offers big upside.
The company's business revolves around providing customizable e-commerce websites and related support services for major Western brands looking to build their presence in China's online retail market. This role comes with unique risks, some of which have been highlighted due to the trade disputes.
But Baozun still looks worthwhile for investors willing to take on risk in pursuit of huge returns. Unlike most penny stocks, the business is already consistently profitable and trades at reasonable earnings multiples. The stock is priced at roughly 34 times this year's expected earnings, and it's still delivering commendable results despite the trade situation and some slowdown for China's economic growth.
The company managed to increase sales roughly 40% year over year last quarter, and its operating income climbed 61% versus the prior-year period. E-commerce is a field that's only likely to continue growing, and China is already the world's largest e-commerce market by a wide margin. Investors should know that there could be some bumps in the road with Baozun, but it offers much better prospects than most penny stocks and has the potential to deliver fantastic long-term growth as it adds new brand partners and helps its clients increase sales through its platform.
Rich Smith(Ford):Two stocks sit before you. One just set up shop last year, and probably sells hemp or digital coins, or is called "something.com." The other has been in business for more than a century, and makes something that actual consumers actually buy -- that they need to buy in order to operate in a modern society: cars.
Without knowing the price of either stock, which one are you more inclined to buy?
That's right: the car company.
And when I tell you the car company costs less than 13 times earnings, that its 6% dividend covers nearly half the stock's valuation, and that its estimated growth rate of better than 12% long term more than covers the rest -- and that the stock's name is "Ford," doesn't that make you just a little bit more comfortable in your choice?
I think it should.
Even if the rest of the world has gone ga-ga for faddish companies sporting fast revenue growth but little or no profit, there's still something to be said for owning a piece of a real company that makes real products for real people -- profitably. Particularly if its stock sells for a realistic multiple to those profits, and pays shareholders a rich dividend -- with apromise to keep on paying that dividend.
There's still a place for Ford in your portfolio, and it's a better buy than any penny stock.
Chuck Saletta(Berkshire Hathaway):Penny stocks tend to trade for, well, pennies. They entice buyers who think that because they can buy lots of shares for just a few dollars, they can make a fortune if and when the stock spikes.
The problem with that line of thinking is that stock is cheap to produce -- all it really takes is a vote by the board of directors, and perhaps the filing of some paperwork if the shares will be issued to the public. Without a clear and real business to back up those shares, even $0.0001 per sharecan be too much to payfor stock in a worthless company.
On the flip side, Berkshire Hathaway's Class A stock traded for as much as $335,900per sharein the past 12 months. That's about as far away from a "penny" price as it gets. Berkshire Hathaway has strong operations and cash flow to back up its shares. In addition to its namesake insurance business, it outright owns the BNSF railroad, Duracell batteries, See's Candies, GEICO, Dairy Queen, Benjamin Moore, and dozens of other businesses. Plus, it has largeinvestments in lots of other companies.
Overall, it trades for around 19 times its earnings and around 1.4 times its book value, making it a reasonable value despite the sky-high share price it commands. For investors interested in the company but unable or unwilling to cough up more than $300,000 to buy a single share, it also has Class B shares that trade at a more reasonable price around $206.
Those Class B shares each carry around 1/1,500 the economic value of the A shares -- and an even smaller portion of the voting rights. Still, they do provide ordinary investors the opportunity to own a stake in one of the strongest companies around.
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Chuck Salettahas no position in any of the stocks mentioned.Keith Noonanowns shares of Baozun.Rich Smithowns shares of Baozun. The Motley Fool recommends Baozun and Berkshire Hathaway (B shares). The Motley Fool has adisclosure policy. |
China’s Biggest Startups Ditch Oracle and IBM for Home-Made Tech
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For years, companies like Oracle and International Business Machines invested heavily to build new markets in China for their industry-leading databases. Now, boosted in part by escalating U.S. tensions, one Chinese upstart is stepping in, winning over tech giants, startups and financial institutions to its enterprise software.
Beijing-based PingCAP already counts more than 300 Chinese customers. Many, including food delivery giant Meituan, its bike-sharing service Mobike, video streaming site iQIYI Inc. and smartphone maker Xiaomi Corp. are migrating away from Oracle and IBM’s services toward PingCAP’s, encapsulating a nation’s resurgent desire to Buy China.
PingCAP’s ascendancy comes as the U.S. cuts Huawei Technologies Co. off from key technology, sending chills through the country’s largest entities while raising questions about the security of foreign-made products. That’s a key concern as Chinese companies modernize systems in every industry from finance and manufacturing to healthcare by connecting them to the internet.
“A lot of firms that used to resort to Oracle or IBM thought replacing them was a distant milestone, they never thought it would happen tomorrow,” said Huang Dongxu, PingCAP’s co-founder and chief technology officer. “But now they are looking at plan B very seriously.” IBM, which gets over a fifth of its revenue from Asia, declined to comment. Oracle, which gets about 16%, didn’t respond to requests for comment.
China has long tried to replace foreign with homegrown technology, particularly in sensitive hardware -- it imports more semiconductors than oil. That imperative has birthed global names like Huawei and Oppo and even carried over into software in recent years, as Alibaba Group Holding Ltd. and Tencent Holdings Ltd. expand into cloud services. That effort has gained urgency since Washington and Beijing began to square off over technology.
“China has always wanted to use domestic tech and in areas like cloud, it’s been very successful,” said Julia Pan, a Shanghai-based analyst with UOB Kay Hian. “While it wants to use Chinese chips, its technology is just not there, but when it’s mature enough, they very likely will replace overseas chips with domestic ones.”
Now, a coterie of up-and-coming startups are encouraging Chinese firms to go local. Customers use PingCAP to manage databases and improve efficiency, allowing them to store and locate data on everything from online banking transactions to the location of food delivery personnel.
Backed by Matrix Partners China and Morningside Venture Capital, PingCAP is competing in a sector traditionally dominated by companies such as Oracle and IBM. The market is expected to grow an average 8% annually to $63 billion globally in the seven years through 2022.
The startup is one of the newest members of a cohort of open-source database providers such as PostgreSQL and SQLite that are upending the market. Researcher Gartner forecasts that 70% of new, in-house applications worldwide will be developed on open-source database management systems by 2022.
PingCAP -- mashing the term for verifying a web connection, ping, and the CAP computing theorem -- was founded by three programmers whose former employer, a mobile-apps company, was acquired by Alibaba. Inspired by Google’s Cloud Spanner, which pioneered the distributed database model, the trio -- Huang, Liu Qi and Cui Qiu -- began creating an open-source database management system that would allow companies to infinitely expand their data storage by simply linking more servers to existing ones.
“Think of traditional database mangers like a fixed glass container, every time you run out of storage you have to get a bigger one,” said Huang. “What our system does is that you can link as many cups together as you want.”
Their idea caught on with investors and venture fund hot shots including Matrix agreed to invest about 10 million yuan ($1.4 million) in 2015. To date the company has raised more than $71 million and has about 190 employees.
PingCAP is working in a space where competition is fierce -- its database TiDB currently only ranks 121 among global peers, according to database rank compiler DB-Engines, which uses mostly mentions on social media and discussion forums as key metrics. Other open-source database managers such as PostgreSQL ranks 4th and its direct competitor CockroachDB, which also focuses on distributed database systems, leads PingCAP by 30 spots. The Chinese startup also operates in a market where it’s difficult to make money -- PingCAP only has a couple dozen paying customers in China and makes about 10 million yuan in revenue a year. Their best shot is to create successes that can be later replicated on a larger scale, said Owen Chen, an analyst with Gartner. “Work with the 10% early adopters free of charge, and make money off the 90% followers later,” he said.
That’s why Huang is working with big names like the Bank of Beijing and Mobike -- so it can create templates for each sector. “Only one thing is certain, data will continue exploding,” said Richard Liu, a founding partner at Morningside Venture Capital. “We have the patience to wait before they figure out the best revenue model.”
PingCAP has one thing going for it: Chinese customers are increasingly willing to experiment with technology. Data supplied by some 2,000 companies -- more than 300 in-production users and 1,500 who are testing its system -- will provide PingCAP with what Matrix Partner Kevin Xiong says is akin to a supply of ammunition.
“You need bullets to train someone to become a stellar marksman, and PingCAP right now has a lot of bullets,” said Xiong, who invested in the company.
Huang points to how PingCAP’s database helped tide over Chinese bike-sharing giant Mobike during stressful days when user and transaction numbers exploded on a daily basis -- at its peak in 2017 the company said it handled as many as 30 million rides a day.
“It was a really challenging time for us, and [open-source database] MySQL was no longer able to meet our demands given the jump in data volume,” said Li Kai, a senior tech director at Mobike. “PingCAP really helped us big time.”
Huang and his team also made it easy for IT departments to jump ship. With one key stroke, companies could export their entire database on MySQL over to PingCAP’s. Some are considering moving their most sensitive data including transactions and customer info over, Huang said without disclosing names.
Yu Zhenhua, an IT manager at Bank of Beijing, said China is constantly trying to enhance information security while his industry wants to lower costs as it rapidly expands. “TiDB’s service meets the demands of what we want in a distributed database manager,” Yu said in a statement posted on PingCAP’s website. A representative for the lender didn’t respond to emailed queries about its collaboration.
Longer term, PingCAP wants to venture beyond China -- but there, the geopolitical spat is proving an impediment. Earlier this year, PingCAP was ready to embark on an expansion into the U.S. and said it was already in discussions for getting some prominent tech startups to use its software. Now the prospects of winning over American clients are clouded.
“We’re not seeing any immediate impact on our business in the U.S. but the trade war does force us to look at the long term uncertainties of getting important U.S. clients in finance or tech to move to our platform,” Huang said.
--With assistance from Olivia Carville, Nico Grant, Lucas Shaw and Gao Yuan.
To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net
To contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Colum Murphy, Edwin Chan
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Over Half of Canopy Growth's Huge Q4 Operating Loss Resulted From This Surprising Reason
Canopy Growth(NYSE: CGC)didn't exactly wow investors withits fiscal 2019 fourth-quarter resultslast week. The Canadian cannabis producer reported lower quarter-over-quarter cannabis sales on all fronts, although overall revenue increased thanks primarily to its acquisition of German vaporizer device maker Storz & Bickel. Canopy also posted a huge operating loss of nearly 175 million in Canadian dollars -- more than triple the size of the company's operating loss in the prior-year period.
As you might expect, increased spending on sales and marketing as well as general and administrative functions played a big role in Canopy's wider operating loss. The company also spent significantly more on research and development and incurred higher acquisition-related costs.
But there's another factor that accounted for well over half of Canopy Growth's operating loss in Q4 and nearly one-third of its net loss of CA$323.4 million. You might be surprised what's significantly holding back the company's ability to turn a profit.
Image source: Getty Images.
Canopy Growth recorded CA$74.7 million in Q4 related to share-based compensation expense. It also reported another CA$18.5 million for share-based compensation expense related to acquisition milestones. More than CA$93 million in total went to Canopy Growth's employees in its last quarter for stock and options compensation above and beyond their salaries.
The only cost on Canopy Growth'sincome statementthat was higher than its share-based compensation expenses was the company's other expense of CA$133.5 million. That expense stemmed from an accounting fair-value adjustment of Canopy's convertible senior notes. Because Canopy Growth stock rose, the company had to increase its expense associated with those notes, which will be able to be converted into stock in the future.
Canopy Growth's share-based compensation expense was much higher than analysts expected it would be. It was also more than share-based compensation reported by the next three largest Canadian cannabis producers by market cap,Aurora Cannabis,Cronos Group, andTilraycombined.
Bruce Linton, Canopy Growth founder and co-CEO, defended his company's huge employee stock expensein a phone interview with MarketWatch last Friday. He said about the share-based compensation, "I think people should say, 'That's awesome.'"
Linton's idea is that every employee at Canopy Growth and other cannabis companies with a salary of less than CA$200,000 should receive 1.5 times their salary in stock options on the first day on the job. His view is that granting options to employees makes the overall business stronger.
This perspective makes sense in many ways. Employees who own stock options have a vested interest in helping the company succeed. And if the company is successful over the long run, all shareholders win.
There are downsides, though. Linton acknowledged that "if we had zero stock-compensation loss, we would have a much lower loss." Canopy could also have to issue new shares down the road if employees exercise their options. But Linton told MarketWatch that Canopy Growth would be "a much worse company" without the options that it grants to employees.
The reality is that right now, most Canopy Growth shareholders aren't overly concerned about the company's huge operating loss or its widening net loss. Most probably aren't bothered too much by the company's employee stock options, either. After all, the stock is up more than 40% so far this year.
Over the long run, the issue about Canopy's employee stock options could be made irrelevant by the company continuing to deliver impressive returns to investors. The primary ways that Canopy can pull this off are by continuing to command a leading market share in the Canadian adult-use recreational marijuana market, generating strong growth in international medical cannabis markets, and expanding into the U.S.
The good news is that Canopy appears to be doing the right things on all of these counts. Even with a quarter-over-quarter decline in recreational sales in Q4, Canopy should be able to rebound as it ramps up production capacity and as more retail locations open. Increased capacity should also help the company boost international sales.
Canopy is arguably in the best position of any Canadian cannabis company to enter the U.S. It's moving forward with the construction of a large-scale hemp production facility in New York State. Canopy Growth is also in good shape to be ready toacquire U.S.-based cannabis operatorAcreage Holdingsif federal marijuana laws are changed in the U.S.
Of course, there won't be a good way to know how much employee stock options really made a difference for Canopy in achieving success in the future. But if that success comes (as I suspect it will), it's likely that no one will care.
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Keith Speightshas 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. |
Las Vegas and Reno casinos are betting on esports to draw millennials
LAS VEGAS – The light beam piercing the clouds above the Luxor for years beckoned tourists to a traditional casino landscape of slots, card tables and smoky corners of the night club scene.
In 2017, a longstanding piece of that landscape disappeared to make room for a new attraction that casinos are wagering is the future of entertainment in Las Vegas:esports.
On the grounds of the former LAX Nightclub now sits the smoke-free and well-lighted HyperX Esports Arena. The 30,000 square-foot facility designed to host live video game tournaments broadcasted to thousands watching online also offers a place for tourists to play their favorite games at consoles and PCs for an hourly fee.
The swap from night clubs to video games represents a major business shift in Las Vegas, where casino companies struggle to find new and relevant ways to draw tourists of younger generations – and their money – to a vacation mecca built on brick-and-mortar gambling.
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“I would love to see Vegas be somewhat of a Disneyland for esports,” said Lovell Walker, head of the esports department at MGM Resorts International. “(A place) where a customer or consumer or fan of esports for that matter looks at Las Vegas as if it is Disneyland, and there’s an expectation that something esports related is going on in our city.”
It may be the best bet casinos have ever made.
Gaming companies embrace concepts that move people into the casino. At the Luxor, esports has become a reliable tool to increase that traffic.
During a slow season, the HyperX arena draws 700 people onto the casino floor, according to Mark Green, vice president of global properties at Allied Esports International, the company that runs day-to-day operations there.
On a busy day, that number jumps to 1,500. That statistic is favorable in the eyes of resorts. After all, even if gamers don't gamble, they surely need to eat – and there are plenty of restaurants on the way to the arena.
“MGM realizes there’s a future in esports,” Green said. “They’ve wrapped their arms around it. They want to drive traffic."
Green took the job after a long career in nightclubs and restaurants. He didn't know what to expect entering the world of esports, but one thing became certain a short time into the gig: Gamers are easier to deal with than clubbers.
“We did an after party for a gaming publisher, and we told the hotel there’s going to be 1,000 people," Green said. “They went, ‘Oh my god, we’re going to need 30 security guards’ and I was new to it, too. When the event happened, I didn’t need one security guard.”
No fights. No arrests. No problems.
"Somebody put somebody on their shoulders," Green said of the single instance when security had to ask gamers to dampen a celebration.
The response? "'No problem, sir,'" Green said.
In the esports division at MGM, Walker, an avid FIFA and Madden player, said the company is focused on capturing that kind of visitor – the consumer of the future.
“At a macro level we’re in the midst of becoming an entertainment company. Gone are the days when we’re focused solely on casinos. We’re now focused on our entertainment values – that’s food and beverage, the night clubs, the pools, the full package of offerings and esports is a piece of it,” Walker said. “This is what our future consumer wants and this is what the consumer of today wants. It’s very much a learning phase for us, but we’re very much in the midst of embracing what’s coming and doing the right things to get into the game.”
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The strong esports action in Las Vegas has caught the attention of convention and tourism authorities up north.
The topic of esports has come up several times in the last few years during meetings of the Reno-Sparks Convention and Visitors Authority, which works to bring in events to the area and promote tourism to the Reno-Tahoe region.
Esports is seen as a way to attract a younger crowd such as millennials and diversify Northern Nevada’s tourist pool, which has traditionally relied on events that skew to an older demographic such as Hot August Nights.
Reno Mayor Hillary Schieve, who sits on the visitors authority board, asked if any considerations were being made for hosting esports during a discussion in June last year about a proposed $164 million remodel of the Reno-Sparks Convention Center.
“Esports have gotten huge and that would be fantastic for this market,” Schieve said at the June meeting. “It’s one of the things that really needs to be looked at because I see this as the wave of the future.”
Although esports attendees do not spend as much as traditional convention goers, they still spend money on restaurants, breweries and other businesses, said Mike Larragueta, the board's vice president of sales.
Larragueta brought up Las Vegas as an example of esports’ potential.
“They have facilities there dedicated to esports … and consumers are paying thousands of dollars to go to arenas and watch people compete,” Larragueta said.
One Reno hotel casino that has a history with esports in The Biggest Little City is the Atlantis Casino Resort Spa.
The property has hosted several local events in its Fun Center arcade over the years, including Street Fighter tournaments as well as Smash Bros. competitions where attendees bring their own controllers and televisions.
The tournaments worked especially well in bringing traffic to the hotel casino’s arcades. While arcade machines were incredibly popular in the 1990s, the advent of powerful home consoles and PC gaming led to a decline in the arcade scene nationwide.
“We’ve noticed that people who come in for the tournaments play the other arcade offerings that we have while they’re waiting,” said William Tiehm, Fun Center and esports manager for the Atlantis. “It complements what we already offer.”
The spaces these properties are building for esports can also be used by everyday tourists looking to get a video game fix.
Like the HyperX arena in Las Vegas, the Atlantis Esports Lounge features consoles open for play. That includes PlayStation 4 Pro consoles with popular games such as Mortal Kombat 11, Street Fighter V, Fortnite and Call of Duty Black Ops 4.
While the lounge was created with esports in mind, guests can also rent them out for $10 per hour on weekends – the same daily price at the Las Vegas arena – and $5 per hour on weekdays when there are no local tournaments scheduled.
Eventually, Atlantis hopes to expand the lounge with gaming PCs as well so it can host popular games such as League of Legends. Many professional players also prefer to play shooters on a PC with a keyboard and mouse.
At UNLV’s International Gaming Institute, Robert Rippee runs the Esports Lab.
Here, students develop presentations and business plans to help the casino industry better understand the behaviors and interests of millennials – their target audience.
“Increasingly, we find this idea of gamified life,” Rippee said, pointing to video games used in classrooms to help students learn faster. “Educational psychologists have known for a very long time that computer-based learning works very very well. Is it any wonder that video gaming is a natural part of their life?”
Video games, he said, have become a part of everyone's lives – whether they know it or not.
“Facebook is a game. You play with your friends and people you’re trying to impress or attack,” Rippee said, laughing at the social media generalization. “This kind of gamification has been prevalent in our society for a long time, and it’s only gotten bigger.”
It was only a matter time before casinos figured out a way to monetize the trend.
This article originally appeared on Reno Gazette Journal:Las Vegas and Reno casinos are betting on esports to draw millennials |
Latest Bitcoin Cash price and analysis (BCH to USD)
Last week , Bitcoin Cash (BCH) was slowly recovering from a substantial dip earlier in the month that saw its price plummet from around $440 to $389, representing an 11% drop. BCH has since made an incredible move upwards, going from $420 to higher than $500, representing an almost 20% gain. Price has now corrected to around $475, where we can see a clear support line forming. Will BCH keep the momentum and fly even higher? Let’s take a look at the latest BCH price action. Looking at the chart above, we can clearly see BCH has broken through some important resistance barriers. Bitcoin Cash broke the $330 level around its 200-day EMA in early May, and the 20-day EMA has now moved above the 200-day EMA – a clear bullish signal. Moreover, volumes have remained strong since mid-May, helping BCH to break key levels and find support initially around $360 and later around $400. Looking at the current signals, BCH appears to be finding new support around $475 following the pump in price last Friday. Last week, I predicted BCH could moon past $440, which did eventually happen. We should be aware the new target upwards is around $520, where some resistance has formed. To the downside, Bitcoin Cash could eventually fall and touch the $420 support level again. Be aware that we may experience close to 60% drops, as this did happen in a similar situation during 2015 prior to the last massive bull run. For the time being, I expect BCH to settle above the $500 level with minimal hassle once Bitcoin gets a push. There is a high probability price will accumulate for a few more days/weeks before making a move upwards. Safe trades! BCH fundamentals I recently spoke with Bitcoin Cash’s strongest advocate, Roger Ver, and discussed the most recent developments on the horizon for BCH. You can find all the details here , but the most juicy news seems to be the recent spike in adoption due to the implementation of smart contracts. Roger, like myself, believes key components for mass adoption are speed and flexibility. What Bitcoin Cash Oracles offers is a way for any user to easily deploy an “escrow” transaction that can be used to trade globally – without the hassle of trusting the other party. Story continues I personally think these “trade escrows” will be key in terms of adoption, especially for work-related tasks. In a way, they do enable milestone-based funding, which may be the new and better way of conducting ICOs instead of simply creating an extra layer of complexity with STOs that require KYC and accreditation – something that goes against what we should be promoting within the crypto ecosystem. Current live BCH pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest BCH price. Pricing is also available in a range of different currency equivalents: US Dollar – BCHtoUSD British Pound Sterling – BCHtoGBP Japanese Yen – BCHtoJPY Euro – BCHtoEUR Australian Dollar – BCHtoAUD Russian Rouble – BCHtoRUB Bitcoin – BCHtoBTC About Bitcoin Cash Bitcoin Cash was born out of the idea of making Bitcoin more practical for small, day-to-day payments. In May 2017, Bitcoin payments took about four days unless a fee was paid, which was proportionately too large for small transactions. A change to the code was implemented and Bitcoin Cash was born on 1st August 2017. More Bitcoin Cash news and information If you want to find out more information about Bitcoin Cash or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started: Kraken launches Bitcoin Cash and Ripple margin trading By Scott Thompson – June 25, 2019 As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not. You may be interested in our range of cryptocurrency guides along with the latest cryptocurrency news . The post Latest Bitcoin Cash price and analysis (BCH to USD) appeared first on Coin Rivet . |
New York, New Jersey could lose residents to this lower-tax neighbor
After many Americans inhigh-taxstates saw the impact of the $10,000 cap on state and local tax (SALT) deductions on their returns this filing season, experts have told FOX Business thatmore and moreindividuals are looking for ways to mitigate the increasedfinancial burden– which can mean moving to lower-tax states.
While states with no income tax have gotten most of the attention, including Florida, Texas and Nevada, there may be a closer option for residents in the Northeast – Pennsylvania. The Keystone State could attract disgruntled residents from nearby high-tax states like New York, New Jersey and Connecticut.
“It definitely is a viable option,” Alan Goldenberg, a principal at Friedman LLP, told FOX Business. “It really boils down to rates.”
Pennsylvania charges a flat income tax rate of 3.07 percent. That compares to a top rate of more than 8 percent in New York and New Jersey.
But for individuals in New Jersey, a move across state lines could be particularly attractive. New Jersey and Pennsylvania have a reciprocal personal income tax agreement, Goldenberg noted, whereby Pennsylvania residents who work in New Jersey and earn income there are not subject to New Jersey income taxes. Instead, they pay the lower flat-rate in their home state.
Without the agreement, a high-earning Pennsylvania resident working in New Jersey would be taxed at the 8.97 percent rate, but would only received a credit of 3.07 percent in Pennsylvania.
“It’s a big deal that they have this agreement,” Goldenberg said.
Geoffrey Weinstein, special counsel in the Tax, Trusts & Estates Department of Cole Schotz, told FOX Business he has seen relocations to Pennsylvania in order to avoid taxes – specifically among those people who cannot get up and move to Florida, like those with young children in school. Weinstein, who has offices in both New Jersey and Florida, says the move makes sense for people working in places like Princeton, New Jersey, but that others are still looking at the option because of the “huge disparity in state taxes.”
Weinstein also noted that a renewed push to implement a New Jersey millionaire’s tax – with a top rate of 10.75 percent – on people with incomes over $1 million, could also urge residents to consider moving to a local, lower-tax destination such as Pennsylvania.
Both Goldenberg and Weinstein noted, however, that New Jersey has debated altering its reciprocal agreement with Pennsylvania throughout recent years.
In terms of business relocation, Joe Pizzimenti, a tax director specializing in state and local tax services at Margolin, Winer & Evens, told FOX Business Pennsylvania that a potential move into Pennsylvania could be worth a discussion.
According to the Tax Foundation’s2019 State Business Tax Climate Index, which ranks states based on a handful of metrics – including personal income tax, sales tax and property taxes – Pennsylvania ranked 34.
Meanwhile, Connecticut, New York, California and New Jersey occupy the four lowest spots on the index.
Pizzimenti noted that there are an increasing number partnerships, S Corps and other pass-through entities, which are more sensitive to personal income tax rates.
Overall, Pizzimenti noted that Pennsylvania does not necessarily compare to the likes of Texas or Florida, and that decisions to relocate are driven by a combination of factors that extend beyond tax rates.
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Adding to restlessness among wealthy taxpayers, the Treasury Department issued afinal rulingearlier this month, effectively squashing a workaround higher-tax states were attempting to use to help their residents evade the cap. The strategy involved allowing taxpayers to make charitable contributions to an established state fund in order to earn a credit.
The $10,000 cap is well below the average amounts claimed by individuals in states like New York, California and New Jersey. The average deduction claimed in California, for example, is $22,000, according to Kevin de Leon, a Democratic member of the California state senate.
Multiple states – including New York – have sued over the $10,000 cap.
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The 10 countries with the best and worst quality of life
The Laax ski resort in Switzerland. Photo: Sam Mellish/In Pictures via Getty Images Norway is considered one of the best countries in the world for its quality of life, according to a new survey. The 2019 Country Index by the brand consultancy FutureBrand highlights measures of a great nation beyond GDP, using survey responses on quality of life, business, culture, values, and tourism to rank countries. The poll surveyed 2,500 people across the world for their views on the 75 countries with the biggest economies, asking how different countries rated on a wide range of measures. Nordic countries, widely envied abroad for their social welfare systems, dominated the top of the list, with Sweden, Denmark, and Finland joining Norway in the top 10. Beyond its rugged and stark natural beauty, petroleum exports, and commercial salmon fishing, Norway is probably best known globally for the success of its model of social democracy, the report said. READ MORE: Top 20 countries with the best global reputation Switzerland, famed for its mountains and political neutrality, finished second. FutureBrand put Mexico at the bottom end of the table for quality of life, followed by the Dominican Republic, India, and Iraq. Mexico also ranked only 64th out of 75 in its overall reputation on the Country Index, falling nine places since the last index was released in 2014. The survey asked respondents about their experiences, perceptions and sense of a countrys purpose, focusing on culture, business, tourism, quality of life, and values. The Royal Palace in Oslo, Norway. Photo: Berit Roald/AFP/Getty Images Top 10 countries for quality of life Here are FutureBrands top 10: 1 - Norway 2 - Switzerland 3 - Sweden 4 - Denmark 5 - Finland 6 - Japan 7 - Luxembourg 8 - Canada 9 - Germany 10 - New Zealand Bottom 10 countries for quality of life And here are FutureBrands bottom 10: 1 - Mexico 2 - Dominican Republic 3 - India 4 - Iraq 5 - Pakistan 6 - Vietnam 7 - Kenya 8 - Ukraine 9 - Morocco 10 - Puerto Rico |
Kinder Morgan's Growth Engine Is About to Rev Up
Kinder Morgan(NYSE: KMI)finally restarted its growth engine last year. Overall, the pipeline giant generated $4.73 billion, or $2.12 per share, of cash in2018, which was 6% above 2017's level and just shy of the record $2.14 per share in cash flow it produced in 2015.
Kinder Morgan expects to eclipse its previous peak this year given itsforecastthat cash flow will top $5 billion, or $2.20 per share, which would be about 7% above 2018's level. The pipeline company is already off to a strong start as itsfirst-quarter resultscame in slightly ahead of plan as cash flow rose 7% year over year. The company's growth engine, though, should further accelerate in the second half, given that it has three needle-moving expansion projects on track to enter service.
Image source: Getty Images.
Kinder Morgan expects earnings in its key natural gas pipelines segment to grow 11% this year. One of the big drivers is its Elba Liquefaction project, which is aliquified natural gas(LNG) export terminal near Savanah, Georgia. Kinder Morgan is investing $1.2 billion for its share of the project. That's a significant investment as it represents 20% of the company's $6.1 billion expansion backlog.
The company placed the first of the 10 liquefaction units into service this May and expects to finish the remaining nine at a rate of one per month. As these units come online, they'll enable Kinder Morgan to liquify 350 million cubic feet of natural gas per day. The company will earn fees as it manufactures this LNG, supported by 20-year fixed-rate contracts withRoyal Dutch Shell. Those agreements will enable it to produce steady cash flow from this facility for years to come.
Another large-scale project Kinder Morgan currently has under construction is theGulf Coast Express pipeline. The 450-mile system will transport 2 billion cubic feet of natural gas per day from the Permian Basin to Corpus Christi, Texas. Kinder Morgan is funding 35% of the cost for this $1.75 billion project, putting its investment at about $610 million, or roughly 10% of its current expansion backlog.
The company anticipates finishing up this pipeline by October. Once it enters service, it will supply the company with steady cash flow given that shippers signed 10-year fixed rate contracts for all of the system's capacity.
The third near-term expansion project Kinder Morgan has under way is in the Bakken Shale region of North Dakota. The company is currently investing more than $500 million on building out new natural gas gathering and processing infrastructure so it can connect more wells to its system.
The company is constructing enough new pipeline and compression capacity to handle an incremental 275 million cubic feet of natural gas per day. On top of that, the company is also expanding its natural gas processing capacity in North Dakota. It is building a new facility that will be able to handle 150 million cubic feet of natural gas per day. The company expects to finish up this facility by the first of November. Like most of its expansions, the company signed long-term fee-based contracts with shippers that support these projects. As a result, Kinder Morgan will collect a steady supply of cash flow from these investments when they enter service later this year.
Kinder Morgan has struggled to grow its cash flow in recent years. Not only did it feel some of the effects of the volatility of oil prices, but it needed to sell some assets to help shore up its balance sheet so it could finance these high-return expansion projects. However, those efforts should begin paying big dividends in the second half of this year because the company expects to complete three large-scale growth projects. As that happens, the company's earnings growth rate should accelerate, which could give its stock reason to rise sharply.
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Matthew DiLalloowns shares of Kinder Morgan. The Motley Fool owns shares of and recommends Kinder Morgan. The Motley Fool has adisclosure policy. |
Bitcoin Doubters ‘Having a Hard Time’ Continuing Doubting, Says Nexo Exec
Co-founder and managing partner ofcryptocurrencylendingstartup Nexo Antoni Trenchev said that bitcoin (BTC) naysayers are having a hard time in an interview with CNBCpublishedon June 25.
During the interview, Trenchev pointed out that bitcoin has been defined deadover 300times (90 only last year) and “has risen from the ashes yet again. Thus, he concluded:
“I think, you know, the doubters are having a really hard time continuing their cause.”
Before, Trenchev also explained that he believes that the reasons behind bitcoin’s rise are increasing institutional participation, and the geopolitical turmoil (probably referring to theU.S.-Chinatrade war). He also said:
“[During] the bear market of 2018, we’ve seen even the harshest proponents turning skeptical at some point, and this usually is the inflection point from which, you know, assets start rallying again, but I think it is really about institutional support and implications that it has in terms of mass adoption.”
Trenchev also hinted atFacebook’sLibraandJPMorgan’sJPMCoinas further catalysts responsible for the current rally alongside news concerning major financial services firm Fidelity joining the space and the Yale endowment fund investing in crypto. All those facts, according to him, are signs that people are realizing that bitcoin is here to stay.
As Cointelegraphreportedearlier today, Jeremy Allaire, co-founder and CEO of payments companyCircle, believes non-sovereign cryptocurrencies such as bitcoin will continue to see growth despite the proliferation of new forms of digital assets such asFacebook’sLibraandstablecoins.
Also today,news brokethat ThinkMarkets chief market analyst Naeem Aslam predicts that bitcoin will hit somewhere between $60,000 and $100,000 during its next bull run.
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• Fundstrat Global Advisors Technical Analysis Points to Further Rally |
Turkey will lose F-35 warplane if Russia arms deal goes ahead, U.S. says
By Robin Emmott BRUSSELS (Reuters) - The United States will stop Turkish forces flying and developing its F-35 stealth jets if Ankara goes ahead with the purchase of a Russian air defence system, the U.S. envoy to NATO said on Tuesday. Washington and its allies have urged fellow NATO member Ankara not to install the S-400 system, saying that would let the technology learn how to recognise the F-35s, which are built to avoid tracking by enemy radars and heat sensors. But Turkish President Tayyip Erdogan vowed anew on Tuesday to press on with the S-400 purchase despite allies' concerns. "We will hopefully start to receive the S-400 systems we purchased from Russia next month," Erdogan told members of his AK Party in parliament. "Turkey is not a country that needs to seek permission or bow to pressures. The S-400s are directly linked to our sovereignty and we will not take a step back." Turkey has said its S-400 deal with Russia is final, exacerbating a diplomatic rift with the United States already widening over conflicting strategy in Syria, Iran sanctions and the detention of U.S. consular staff. "Everything indicates that Russia is going to deliver the system to Turkey and that will have consequences," Kay Bailey Hutchison, the U.S. ambassador to NATO, said in Brussels. "There will be a disassociation with the F-35 system, we cannot have the F-35 affected or destabilised by having this Russian system in the alliance," she told reporters. The United States says the jets, made by Lockheed Martin Corp., give NATO forces a number of technological advantages in the air, including the ability to disrupt enemy communications networks and navigation signals. Turkey produces parts of the F-35s fuselage, landing gear and cockpit displays. Hutchison said Ankara was an important partner in that production but that security concerns about Russia were paramount. "So many of us have tried to dissuade Turkey," she said. Story continues PROBLEMS WITH ALTERNATIVES The United States offered Turkey the more expensive Patriot anti-missile defence system, and then with a discount, but there were issues with the U.S. ability to deliver the Patriots quickly. Turkey also says that NATO allies have not helped it during times of heightened security concerns, and it therefore had to seek alternatives, and Russia came into the picture. Germany and the United States stationed Patriot surface-to-air missile batteries in Turkey on a temporary basis in 2013 but moved them out in 2015, citing demands on assets elsewhere. Washington also warned Ankara that it will face U.S. sanctions over the agreement with Moscow, a move that could deal a significant blow to Turkey's ailing economy and its defence industry. Turkey has dismissed the U.S. warnings, saying it would take the necessary measures to avoid complications, and proposed to form a joint working group with Washington to assess concerns. It has said U.S. officials have yet to respond to the offer. The Pentagon has already stopped training Turkish pilots on the jets. Erdogan is expected to discuss the issue with U.S. President Donald Trump at the G20 summit in Japan later this week. One senior NATO diplomat said that was probably the last chance of finding a solution. NATO defence ministers, who meet for two days in Brussels from Wednesday, are not planning to formally raise the issue, but there could be some diplomacy in informal meetings, diplomats said. "It's not over until its over, but so far Turkey has not appeared to retract from the sale," Hutchison. "The consequences will occur, we don't feel there's a choice in that." (Reporting by Robin Emmott; Additional reporting by Tuvan Gumrukcu in Ankara; Editing by Alissa de Carbonnel and Mark Heinrich) |
Here's Why We Think TAL Education Group (NYSE:TAL) Is Well Worth Watching
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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeTAL Education Group(NYSE:TAL). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
Check out our latest analysis for TAL Education Group
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Who among us would not applaud TAL Education Group's stratospheric annual EPS growth of 44%, compound, over the last three years? Growth that fast may well be fleeting, but like a lotus blooming from a murky pond, it sparks joy for the wary stock pickers.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. TAL Education Group maintained stable EBIT margins over the last year, all while growing revenue 49% to US$2.6b. 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.
While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not checkthis interactive chart depicting future EPS estimates, for TAL Education Group?
We would not expect to see insiders owning a large percentage of a US$22b company like TAL Education Group. But we are reassured by the fact they have invested in the company. Notably, they have an enormous stake in the company, worth US$6.6b. Coming in at 31% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. So it might be my imagination, but I do sense the glimmer of an opportunity.
TAL Education Group's earnings have taken off like any random crypto-currency did, back in 2017. That sort of growth is nothing short of eye-catching, and the large investment held by insiders certainly brightens my view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So yes, on this short analysis I do think it's worth considering TAL Education Group for a spot on your watchlist. Of course, profit growth is one thing but it's even better if TAL Education Group is receiving high returns on equity, since that should imply it can keep growing without much need for capital.Click on this link to see how it is faring against the average in its industry.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
3 Reasons Bitcoin Is Fundamentally Flawed as an Investment
It's back... and I'm not talking about the mosquito invasion on the back porch that comes with summer solstice.
After a miserable 2018 that saw leading cryptocurrency bitcoin (CCC: BTC-USD)lose around 80% of its value, 2019 has been a completely different story for the digital token. On a year-to-date basis through Saturday evening, June 22, bitcoin had returned 176%, which is about a ninefold better return than the broad-basedS&P 500on a year-to-date basis. After being within striking distance of the $10,000 level for weeks, bitcoin blew through this psychological level and wound up briefly surpassing $11,200 per token.
The big question is, "Why?" Why is bitcoin suddenly finding success after more than a year of wallowing in the doldrums? The answerlies with a host of factors, rather than just a single catalyst.
Image source: Getty Images.
To begin with, bitcoin's block reward is expected to be halved on May 21, 2020.Cryptocurrency miners-- i.e., people and businesses with high-powered computers that solve complex math equations to prove the validity of crypto transactions on ablockchain-- feast on these rewards, which are currently paid out as 12.5 bitcoin tokens per block of transactions proofed. At today's price, that works out to close to $135,000 per bitcoin block reward. But with this reward being halved in May 2020 to 6.25 bitcoin per block solved, investors and miners have historically bid up the digital token about a year in advance of a halving event.
Another reason bitcoin investors are excited is the possibility of the Securities and Exchange Commission (SEC) allowing a bitcoin exchange-traded fund (ETF) on a major U.S. exchange. The SEC has delayed its decision on a bitcoin ETF on multiple occasions, but announced in early April that it wanted to hire a cryptocurrency specialist to help with implementing regulations. This move, along with the SEC currently taking comments and rebuttals on a bitcoin ETF, suggests that the prospects of a bitcoin ETF hitting the U.S. major exchanges are improving.
The recent announcement that social media giantFacebook(NASDAQ: FB)would becreating its own crypto token, known as Libra, is also encouraging to bitcoin investors. Facebook has 2.38 billion monthly active users, and there's a really good bet that most of them have little or no clue what blockchain is. Libra is a means of educating the world about the potential for the digital ledger known as blockchain, as well as the utility of cryptocurrency tokens. Facebook plans to launch its new digital token next year, and the buzz leading up to this launch may drive bitcoin higher.
Image source: Getty Images.
But in spite of all the reasons bitcoin is advancing, the most popular cryptocurrency in the world has three fundamental flaws that, as I see it, are practically impossible to fix.
One of the more common arguments from bitcoin bulls as to why it's worth so much is its perceived scarcity. As noted earlier, proofing transactions does lead to inflation in the form of 12.5 bitcoin being added to the existing circulation per block. However, the maximum number of bitcoin that can be produced is capped at 21 million, with 17.77 million bitcoin tokens already in circulation. With an annual bitcoin token inflation rate of just 3.77% (until the halving in May 2020), optimists would argue that bitcoin's scarcity makes it an intriguing buy.
But there's a catch to this figure. Namely, there's no hard cap on the number of tokens that are in circulation. Rather, it's computer code and community consensus that determine this cap. Although it's unlikely that consensus would be reached to increase the 21 million token cap, the possibility of this happening is not 0%.
Comparatively, a physical store of value like goldis a finite asset. The gold that's currently in the ground, or has been mined, is all there will ever be on this planet, unless some miracle form of alchemy is invented in the future. That's in stark contrast to bitcoin, which could have its token cap adjusted based on community consensus.
In short, bitcoinreally isn't as scarce as people think.
Image source: Getty Images.
A second fundamental flaw with the largest cryptocurrency in the world by market cap is that it has limited utility, or use. Optimists might hail bitcoin as a replacement for cash or the anti-banking currency, but it currently lacks the utility for broad-based adoption.
For starters, bitcoin's volatility is a big reason why most retailers won't accept it. Even with blockchain-based transactions that can potentially validate and settle faster than payments on traditional banking networks, the lag in settlement times can still allow for wild vacillations in the price of bitcoin. According to online blogBlockonomics,Dell,Expedia,Microsoft,PayPal, and Stripe have alldropped payment support for bitcoin. It should be said that while many of these companies cited volatility as a reason to drop bitcoin, variable transaction fees were noted, too.
Bitcoin's 17.77 million circulating coins are also a limiting factor. Since a good chunk of these coins are being held for investment purposesby a small number of wealthy individuals and traders, and are thus out of circulation for an extended period of time, there's simply not that many coins to go around for retail transactions and payments. Unless the bitcoin token cap was raised well beyond 21 million, bitcoin lacks the utility to spur fundamental monetary change.
Image source: Getty Images.
Last, but not least, you're buying into the wrong asset when trading cryptocurrencies.
On one hand, there's the digital token, which is what cryptocurrency investors are buying. And on the other hand, there's the underlying blockchain, which is that aforementioned digital ledger that transparently and immutably records transactions. Blockchain is where the real evolution and innovation of the cryptocurrency movement lies.
Here's the problem: Buying a cryptocurrency token (bitcoin or most any other) does not give investors any ownership in the underlying blockchain. If the underlying blockchain of a crypto token becomes the basis for innovation at a particular company or within an industry, its associated token isn't necessarily going to benefit (and neither will token-holders). In fact, companies are developing their own tokens for use on in-house-created blockchains, or creating token-less blockchains that work with fiat currencies, such as the U.S. dollar.
If you want to invest in the underlying innovation of the crypto movement, you'd be better served by buying into a company likeIBM(NYSE: IBM). Although IBM is still very stodgy in nature and living off of its legacy hardware and software revenue, it's also made an effort tobe on the cutting edge of blockchain projects. IBM has been working with about a dozen banks in the South Pacific to improve settlement times on its proprietary blockchain network, and set up a joint venture with shipping giantMaerskin early 2018 to develop blockchain-based shipping solutions to revolutionize supply chain management.
The point being that if you want direct exposure to what matters (i.e., the underlying blockchain), you're going to have to buy stocks developing that blockchain, because purchasing cryptocurrencies like bitcoin won't cut it.
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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.Sean Williamshas no position in any of the stocks or cryptocurrency tokens mentioned. The Motley Fool owns shares of and recommends Facebook, Microsoft, and PayPal Holdings. The Motley Fool is short shares of IBM, and has no position in any cryptocurrency tokens mentioned. The Motley Fool has adisclosure policy. |
At US$53.93, Is It Time To Put BlackLine, Inc. (NASDAQ:BL) On Your Watch List?
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BlackLine, Inc. (NASDAQ:BL), which is in the software business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine BlackLine’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for BlackLine
The stock is currently trading at US$53.93 on the share market, which means it is overvalued by 33.91% compared to my intrinsic value of $40.27. This means that the buying opportunity has probably disappeared for now. Furthermore, BlackLine’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
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. Though in the case of BlackLine, it is expected to deliver a relatively unexciting earnings growth of 5.9%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for BlackLine, at least in the near term.
Are you a shareholder?BL’s future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe BL should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping tabs on BL for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on BlackLine. You can find everything you need to know about BlackLine inthe latest infographic research report. If you are no longer interested in BlackLine, 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. |
What does the introduction of 'Natasha's law' mean for food allergy sufferers?
'Natasha's Law' will be introduced by 2021 [Photo: Getty] Food allergy sufferers will soon be protected under a new law following the death of teenager Natasha Ednan-Laperouse, the Department for Environment, Food and Rural Affairs (DEFRA) has announced. The legislation, known as ‘Natasha’s Law’, means all food businesses will be required to include full ingredients labelling on pre-packaged food. Introduced by environment secretary, Michael Gove, the law, which will apply to England and Northern Ireland, is set to come into force by the summer of 2021. Natasha, 15, suffered a severe allergic reaction after unknowingly eating sesame contained in a baguette bought from a Pret a Manger at Heathrow Airport. The teen died of anaphylaxis after collapsing on board a flight to Nice in July 2016. Since then her parents have campaigned tirelessly for a change in the law that would see ingredients clearly listed on all pre-packaged food. What are the current rules? Under current rules, food prepared on the premises in which it is sold, for example a packaged sandwich or salad made by staff, is not required to display allergen information on the package. Meanwhile, supermarket sandwiches already have to list full ingredients including allergens. As the law stands at the moment an over-the-counter sandwich, if it is made to order in front of you, doesn't need a label and neither does a pre-prepared sandwich, made on the premises. All that is required in these cases at the moment is a sign nearby prompting customers to ask about allergens. But people are currently confused about labelling and menus when eating out. According to a survey by the Food Standards Agency , 60% of respondents with a food allergy reported they had avoided eating out in the last six months because of their condition. And only 14% reported feeling extremely confident asking for allergen information when eating out or ordering a takeaway/food online. The same number admitted to feeling not at all confident New legislation will see all pre-packaged food labelled [Photo: Getty] READ MORE: Mother’s heartbreaking warning after daughter with peanut allergy dies from eating cookie Story continues What do the changes mean? DEFRA has revealed the new legislation will see a tightening of the rules and a requirement that a full list of ingredients should be listed on all foods that are pre-packed directly for sale. The government revealed that food businesses across the country have already taken steps to improve food labelling and outlets are being urged to do all they can ahead of the implementation date to help consumers make safe food choices. The Food Standards Agency (FSA) will continue to provide food businesses with guidance on allergens, and through its ‘Easy to Ask’ campaign it works to empower young people to ask food businesses about allergens when eating out so they can make safe food choices. The legislation was introduced following a consultation about full ingredients labelling, which received overwhelming support, with more than 70% agreeing it was a good idea. Chair of the Food Standards Agency (FSA) Heather Hancock said she hopes the new law will help the UK to become the best place in the world for people living with food hypersensitivities. Reactions to the new legislation Natasha’s parents, Tanya and Nadim Ednan-Laperouse, said the introduction of the law would be a “fitting legacy” following their daughter’s death. “We are absolutely delighted that the secretary of state has announced the government’s decision to go ahead with full allergen and ingredient labelling,” they said. “While Natasha’s Law comes too late to save our beloved daughter, we believe that helping save other allergy sufferers and their families from the enduring agony that we will always bear is a fitting legacy for her life. “We would personally like to thank Michael Gove and health secretary Matt Hancock for their unflinching support in doing the right thing on behalf of all people with allergies, and their support in setting up the Natasha Allergy Research Foundation which we are launching today in Natasha’s memory.” Heather Hancock, chairman of the Food Standards Agency, said the change will mean “better protection” for allergic consumers. Allergy UK chief executive Carla Jones also welcomed the announcement, saying the national charity was “delighted” with the legislation. “This move towards full ingredient labelling for pre-packed direct-sale food will improve the lives of the allergic customer and it is warmly welcomed here at Allergy UK,” she added. READ MORE: Celery, mustard and sulphur dioxide: The surprising foods on the 14 top allergens list Allergies: the stats While allergies to dairy and nuts are well known, according to the UK’s Food Regulations 2014 , there are 14 ingredients that businesses need to let customers know about if they are used in food. Each could cause an allergic reaction to people who consume them. Recent stats from the Food Standards Agency have revealed that there are 4,500 UK hospital admissions a year from food allergy and 10 food allergy deaths per year. The figures also reveal that 1 in 4 say they or a relative have had a reaction eating out and 8% of children and 2% of adults are affected by allergies or intolerance. For more information, visit: food.gov.uk/allergy or nhs.uk/conditions/allergies The BDA has a “Coping with food allergies” food fact sheet and an Allergies and Food Intolerances food fact sheet which provides information for those with food allergies. |
UPDATE 2-Norway wealth fund allowed to invest again in Walmart, Rio Tinto, others
* Fund has ethical mandate from parliament
* Cannot invest in tobacco, certain armaments (Adds comment by Nutrien, bullet points)
By Gwladys Fouche
OSLO, June 25 (Reuters) - Norway's $1 trillion wealth fund can invest again in miner Rio Tinto and retailer Walmart after their exclusions from the fund's investments on ethical grounds were revoked, the board of the central bank said on Tuesday.
The fund can also resume investing in Mexican tycoon Carlos Slim's Grupo Carso, U.S. defence company General Dynamics and fertiliser-maker Nutrien, the board added in a statement.
Reinvestments will likely take place "within an appropriately long timeframe," said the board, without specifying a timeline. The fund is managed by a unit of the central bank.
The fund, one of the world's largest investors, has an ethical mandate set by parliament and is not allowed to invest in companies that produce nuclear weapons, cluster munitions and tobacco, among other ethical criteria.
An ethical watchdog, the Council on Ethics, makes recommendations to the board of the central bank on whether companies should be excluded, reincluded or put on a watchlist, after which the board ultimately decides.
Walmart, and its subsidiary Wal-Mart de Mexico SAB de CV, had been excluded from the fund's investments since 2006 based on an assessment of "serious or systematic violations of human rights".
These included, in the ethics watchdog's view, employing minors against international rules, allowing hazardous working conditions at suppliers and pressuring workers into overtime.
"The Council on Ethics has found that the grounds for exclusions are no longer present," the board of the central bank said in a statement.
Walmart was unavailable for comment on Tuesday. It told Reuters in 2014 that it does not comment on any shareholders that buy or sell its stocks.
"Our company provides a range of jobs, and along with training and development, our associates have strong career opportunities. We are proud of what our associates achieve and the opportunities that we provide around the world," said a Walmart spokesman at the time.
RIO TINTO
Miner Rio Tinto was excluded in 2008 based on the risk of causing severe environmental damage related to Indonesia's Grasberg mine, the world's second-largest copper mine.
"The company has made it clear for the Council on Ethics that it has signed an agreement to sell its interest in the mine," said the statement by the central bank's board.
Rio Tinto was not immediately available for comment.
The issue was Rio Tinto's stake in the mine, which according to the Norwegian finance ministry at the time, discharged very large amounts of tailings directly into a natural river system.
Rio Tinto spokesman Nick Cobban said at the time of the exclusion: "We have an exemplary record in environmental matters, world-leading in fact, and they are given the very highest priority in everything we do."
"The current system of tailings is unquestionably the most appropriate given the high rainfall and seismically unstable geology in the area," Cobban said.
Fertiliser-maker Nutrien had been excluded from the fund in 2011 following an assessment of the risk of violations of fundamental ethical norms related to the company's operations in Western Sahara, a contested territory between Morocco and the Algerian-backed Polisario since Spain left in 1974.
"The Council on Ethics have found that these purchases now have ceased," said the central bank's board.
Nutrien is "pleased with Norges Bank's decision", said a company spokesman, referring to the Norwegian name of the central bank.
U.S. listed General Dynamics had been excluded from the fund in 2005 because it produced cluster munitions.
"The company has made it clear for the Council on Ethics that such production has been terminated," said the board.
General Dynamics was not immediately available for comment.
Grupo Carso SAB de CV was excluded from the fund in 2011 because it produced tobacco. "The company has made it clear ... that it is no longer involved in tobacco production," said the board.
Grupo Carso was not immediately available for comment. (Editing by Terje Solsvik/David Evans/Jane Merriman) |
Six Years Later, the Number of Bitcoin ATMs Just Crossed 5,000 Globally
Nearly six years after the first Bitcoin ATM was installed in Vancouver, Canada the number of the cryptocurrency-dispensing machines across the world has risen to 5,006, according toCoin ATM Radar. In the last 60 days, an average of just under 6 Bitcoin ATMs were installed per day.
Unsurprisingly, the U.S. leads in the number of crypto vending machines with over 3200 Bitcoin ATM locations. This is around 64 percent of the world’s total. Canada, which hosted the world’s first ever cryptocurrency dispensing machine, was second with over 680 locations.
In addition to Mexico and other countries in the region, North America now has over 74 percent of the world’s Bitcoin ATMs, hinting at the great deal of work the rest of the world has to do to catch up.
Interestingly, more crypto ATMs were installed in the months after cryptocurrency prices tumbled from their December 2017 high than the preceding four years. Since January 2018 over 3,000 crypto ATMs, or 60 percent of the current total, have been installed.
Bitcoin ATM installations by month | Source: Coin ATM Radar
Read the full story on CCN.com. |
Canopy Growth could be hit with higher-than-expected costs from edibles and drinks: BMO
Canopy Growth Corp.’s (WEED.TO) much-anticipated lineup of edibles, drinks and vapes could mean higher than expected costs for the company, according to analysts at BMO Capital Markets.
“We believe the operating expense needed to ramp manufacturing and processing capabilities in fiscal 2020 could be higher than expected. As a result, we have materially lowered our EBITDA forecasts in fiscal 2020 and fiscal 2021,” Tamy Chen and Peter Sklar wrote in a research note on Sunday.
The pair are calling for Canopy Growth’s loss before interest, taxes, depreciation and amortization (EBITDA) to amount to $314 million and $77 million in 2020 and 2021, respectively.
The largest cannabis company by market capitalization reported fourth-quarter earnings last Thursday. Net revenue climbed to $94.1 million from $22.8 million a year earlier. Net loss attributable to shareholders jumped to $323.4 million or 98 cents per share for the quarter, compared with a loss of $61.5 million or 31 cents per share during the same period a year ago. EBITDA in the period ended on March 31 was negative $98 million, compared with a $21.7-million loss a year ago.
New regulations for edible, drinkable and topical cannabis products officially come into effect on Oct. 17, one year after Canada legalized recreational cannabis. The first products are expected to be available for sale in mid-December.
Chen and Sklar “remain cautious on meaningful revenue contribution from value-added products” into the fourth quarter of 2020, warning that Health Canada’s 60-day review period could force companies to make changes and delay product roll-outs.
Speaking on a conference call with analysts on Friday, Canopy Growth’s acting Chief Financial Officer Mike Lee said costs associated with developing and laboratory testing edible and beverage products contributed to expenses ballooning by 332 per cent year-over-year in the fourth quarter.
Co-Chief Executive Officer Bruce Linton said Canopy Growth has been investing heavily for long-term growth, and noted there is “a bit more spend to go.”
“The finish line will be products measured in two to 10 milligrams in a beverage that will be unique, differentiable, (and) we believe, highly brandable,” he told analysts on Friday.
He said the company will be ready to submit photos to Health Canada for approval of its beverage platform as soon as June 28, and beverage-related construction will be complete by about mid-September.
‘Gross margin should improve’
Analysts have raised concerns about weakening gross margin at Canopy Growth.
Adjusted gross margin fell to 16 per cent in the fourth quarter, from 22 per cent in the previous period. Linton said he believes the company is on track to report a gross margin above 40 per cent by the end of the fiscal year.
“You've seen, I think, the bottom of our margin trough,” he told analysts.
Chen and Sklar have a “market perform” rating on Toronto-listed Canopy Growth shares, and a price target of $60, down from their previous target of $65.
Shares fell 3.47 per cent to $51.43 at 11:08 a.m. ET.
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A Close Look At The Peck Company, Inc.’s (NASDAQ:PECK) 18% ROCE
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today we'll evaluate The Peck Company, Inc. ( NASDAQ:PECK ) to determine whether it could have potential as an investment idea. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. First of all, we'll work out how to calculate ROCE. Then we'll compare its ROCE to similar companies. Finally, we'll look at how its current liabilities affect its ROCE. Understanding Return On Capital Employed (ROCE) ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussin has suggested that a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. So, How Do We Calculate ROCE? Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Peck Company: 0.18 = US$1.3m ÷ (US$11m - US$3.8m) (Based on the trailing twelve months to March 2019.) Therefore, Peck Company has an ROCE of 18%. View our latest analysis for Peck Company Is Peck Company's ROCE Good? One way to assess ROCE is to compare similar companies. In our analysis, Peck Company's ROCE is meaningfully higher than the 9.5% average in the Construction industry. I think that's good to see, since it implies the company is better than other companies at making the most of its capital. Separate from Peck Company's performance relative to its industry, its ROCE in absolute terms looks satisfactory, and it may be worth researching in more depth. NasdaqCM:PECK Past Revenue and Net Income, June 25th 2019 Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is only a point-in-time measure. How cyclical is Peck Company? You can see for yourself by looking at this free graph of past earnings, revenue and cash flow . Story continues Do Peck Company's Current Liabilities Skew Its ROCE? Current liabilities are short term bills and invoices that need to be paid in 12 months or less. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counter this, investors can check if a company has high current liabilities relative to total assets. Peck Company has total liabilities of US$3.8m and total assets of US$11m. Therefore its current liabilities are equivalent to approximately 34% of its total assets. With this level of current liabilities, Peck Company's ROCE is boosted somewhat. The Bottom Line On Peck Company's ROCE While its ROCE looks good, it's worth remembering that the current liabilities are making the business look better. Peck Company shapes up well under this analysis, but it is far from the only business delivering excellent numbers . You might also want to check this free collection of companies delivering excellent earnings growth. I will like Peck Company better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Refreshed Kerber relishing emotional return to Wimbledon's grass
By Martyn Herman LONDON (Reuters) - Angelique Kerber was born on Germany's Baltic coast, but for her Wimbledon feels like the green, green grass of home. Especially this year when she will walk back through the All England Club gates as defending champion. It is not new territory for the 31-year-old former world number one who on two other occasions arrived for the start of a Grand Slam having won it the year before. But she has never experienced that at Wimbledon -- the title she cherishes the most. "I think maybe it's the same but different in some ways because Wimbledon was the tournament I was looking forward to win one day," left-hander Kerber said at Eastbourne this week. "I think when I get there it will be very emotional and I will have a lot of great memories. I'm really happy to go back there and enjoy the memories, the people, the place. "It's always really special, but especially this time." Kerber won the Australian Open and U.S. Open in a remarkable 2016, but struggled the following year. She was back to her best last year, reaching the semi-final of the Australian Open, the quarters in Paris, before convincingly beating Serena Williams in the Wimbledon final when many had already given the title to the American. This year there has again been a slump although illness and injuries, rather than the loss of drive of 2017, have been the root cause. An ankle injury during the claycourt season left her struggling and she lost in the first round of the French Open. That, she says, may have been a blessing. "I feel much better after Paris, I had 10 days off for recovery and rehab, and right now I'm feeling good, the pain has gone, I'm not sick and I feel ready again," she said. "That's the most important thing for me, to be able to be ready to fight, I'm in match mode. I'm hungry after having a little break, I feel motivation and the energy. "It's a good sign." Story continues After the drudgery of clay, Kerber looked immediately at home on the Mallorca grass last week, beating former Wimbledon champion Maria Sharapova and grasscourt threat Caroline Garcia before losing in the semi-final to Swiss Belinda Bencic. Few players move better on grass than Kerber and her stock Wimbledon photograph could be one of her getting low, knees almost scraping the grass, to fire a backhand. "Grass is more natural for me than clay," the world number five, who owns a 30-10 record from her 11 Wimbledon, said. "The serve is a big thing on grass. You have to play different on the first two balls after the serve or the return. The next few shots must be really aggressive." The other image would be her collapsing to Center Court that sunny Saturday a year ago when she completed a 6-3 6-3 defeat of Williams having played near-perfect tennis. "I've watched the video of the match a couple of times," she said. "I took all my chances that day." While the pressure will be amped up in a few days when Kerber leaves the chilled out surrounds of Eastbourne and heads to Wimbledon, she believes she is well-equipped to handle it and start another title quest. "Everything starts from zero and everyone would like to beat me," Kerber said. "It is a pressure but I learned from the other two times I was defending slams that I must just focus on the next opponent, the next step, the next practice, same as when I won the slams. Keep it simple." (Reporting by Martyn Herman; editing by Sudipto Ganguly) |
After Wrangler Spinoff, VF Taps Alibaba for China Expansion
Fresh fromspinning off its denimdivision,VF Corp(NYSE: VFC)is looking to expand further into China by partnering withAlibaba's(NYSE: BABA)Tmall Innovation Center (TMIC) to design products for local customers. Having previously used TMIC to develop products for VF brands like Dickies and Kipling, VF is broadening its collaboration with the Chinese e-commerce giant's research and development arm.
VF, which owns a collection of brands that includes The North Face, Timberland, and Vans, will get access to data on the buying habits of Alibaba's 654 million customers and use this data to develop products for one of its fastest-growing international markets. In exchange, the Chinese e-commerce platform will be able to exclusively sell the products on its site for a limited time and gain further insights into seller marketing strategies.
It's a win-win, but one Alibaba in particular should benefit from as it continues to establish closer ties with U.S. retailers. Using the Tmall business-to-consumer (B2C) platform to encourage them to enter the Chinese e-commerce market makes the process easy for the retailer and gives Alibaba valuable information.
Image source: VF Corp.
Begun originally as an online platform for local businesses, Taobao Mall was subsequently rebranded as Tmall and has become an important tool in getting foreign brands to market in mainland China, Hong Kong, Macau, and Taiwan.
Tmall is now China's largest B2C e-commerce platform, and TMIC has assisted numerous multinational companies in designing products for China, including a spicy Snickers bar for Mars; a fruit-flavored Listerine forJohnson & Johnson; and a chocolate-and-orange flavored beer it's working on forAnheuser-Busch InBev.
VF, which was the first apparel retailer to work with TMIC in 2017, is now an $11 billion business afterspinning offWrangler and Lee jeans into the independently operated and tradedKontoor Brands.
Analysts believe VF now has better prospects for growth as it can focus its attention on the portfolio of brands it acquired through a bit of a buying binge. The Vans line of footwear is especially seen as a big opportunity as it has emerged as the second most popular brand for teens behindNike, according to some research. Add this to the power of The North Face, which should capitalize on the premiumization trend, and Wall Street anticipates VF will generate increased shareholder returns.
Among the opportunities VF is exploring is further international sales, which grew 10% in the first quarter, led by a 25% increase in China and 8% growth in Europe, the Middle East, and Africa. Building upon what is already its strongest market by crafting a broad selection of products designed for local consumers makes a lot of sense.
No doubt the success on Tmall of a Kipling backpack, which VF created using TMIC's insights, informed the apparel company's decision to expand the relationship. VF also used the R&D center's data analysis to predict what style of Van's shoe would be most popular, and it tapped into custom chatrooms on the Tmall app to poll focus groups on attributes they'd want to see before releasing new Dickies streetwear.
Although it missed Alibaba's massive mid-year sales festival on June 18, an event that may come to rival its Singles Day extravaganza in November, VF has a big window of opportunity to climb through to design, manufacture, and market niche products solely for Chinese consumers.
And it's another partnership that should allow Alibaba to continue its market-dominating presence, and prove it to be the go-to partner for accessing Chinese online shoppers.
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Rich Dupreyhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nike. The Motley Fool recommends Anheuser-Busch InBev NV and Johnson & Johnson. The Motley Fool has adisclosure policy. |
Do Insiders Own Shares In Rockwell Medical, Inc. (NASDAQ:RMTI)?
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A look at the shareholders of Rockwell Medical, Inc. (NASDAQ:RMTI) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
With a market capitalization of US$188m, Rockwell Medical is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about RMTI.
Check out our latest analysis for Rockwell Medical
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 27% of Rockwell Medical. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Rockwell Medical, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Rockwell Medical. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own some shares in Rockwell Medical, Inc.. It has a market capitalization of just US$188m, and insiders have US$15m worth of shares, in their own names. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checkingif those insiders have been buying.
The general public, mostly retail investors, hold a substantial 65% stake in RMTI, suggesting it is a fairly popular stock. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Facebook's Libra must obey anti-money laundering rules: French central banker
PARIS (Reuters) - Facebook's planned global 'Libra' cryptocurrency must respect anti-money laundering regulations and it must seek banking licenses if it offers banking services, France's central bank chief said in a magazine interview. Facebook Inc announced plans last week to introduce a new global cryptocurrency called Libra as part of an effort to expand into digital payments. Bank of France Governor Francois Villeroy de Galhau said that while there was room to improve cross-border money transfers, Libra had to follow anti-money laundering rules. "The risks are increased by the anonymity that Libra users would have," Villeroy said in an interview with French weekly magazine L'Obs, adding that Libra would have to ensure transactions and users' data were fully secure. "If the project seeks to go beyond payments to offering banking services like deposits, it will then have to be regulated like a bank with a banking license in all the countries it operates. Otherwise it would be illegal," he said. France is using its year-long presidency of the Group of Seven nations (G7) to set up a task-force to tackle such concerns at an international level. It has been charged with studying how cryptocurrencies like Libra are governed by regulations ranging from money laundering laws to consumer-protection rules. (Reporting by Leigh Thomas; Editing by Sudip Kar-Gupta) |
Should Juniper Networks (NYSE:JNPR) Be Disappointed With Their 25% Profit?
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Buying a low-cost index fund will get you the average market return. But if you invest in individual stocks, some are likely to underperform. That's what has happened with theJuniper Networks, Inc.(NYSE:JNPR) share price. It's up 25% over three years, but that is below the market return. In the last year the stock price gained, albeit only 1.1%.
View our latest analysis for Juniper Networks
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During the three years of share price growth, Juniper Networks actually saw its earnings per share (EPS) drop 1.1% per year. Based on these numbers, we think that the decline in earnings per share may not be a good representation of how the business has changed over the years. So other metrics may hold the key to understanding what is influencing investors.
You can only imagine how long term shareholders feel about the declining revenue trend (slipping at 2.3% per year). What's clear is that historic earnings and revenue aren't matching up with the share price action, very well. So you might have to dig deeper to get a grasp of the situation
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
Juniper Networks is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So we recommend checking out thisfreereport showing consensus forecasts
It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Juniper Networks's TSR for the last 3 years was 33%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
Juniper Networks shareholders are up 3.9% for the year (even including dividends). But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 3.6% per year over five year. This suggests the company might be improving over time. If you would like to research Juniper Networks in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Kim Kardashian poses on table in White House pics
Kim Kardashian is sharing new photos from her most recent trip to the White House and the snapshots are already causing a stir. On June 13, the reality star gave a speech about her newfound passion for criminal justice reform. During her visit, President Trump cited Kardashians advocacy in helping pass the First Step Act, which includes provisions for incarcerated individuals. Id like to invite up a very special guest, and a powerful advocate for not only justice reform, but just a good person and I hear shes starting to study law, shes also one of the most successful people in the entertainment business, soon shell be one of the most successful lawyers, Trump said. But I knew her father and Ill tell you, shes got good genes good genes for everything. Shes been a real friend and her husband has been a real friend of mine. Kardashian, joined by attorneys Erin Haney and Jessica Jackson, went on to announce a new ride-sharing partnership with Lyft, which will help former prisoners get transportation to job interviews and work shifts. Kim Kardashian posed on a table in the photos she shared. (Photo: Instagram via Kim Kardashian) Nearly two weeks after her D.C. trip, Kardashian has shared behind-the-scenes photos from the day on Instagram. The 38-year-old can be seen speaking while Trump watches, sitting next to first daughter Ivanka Trump and walking through the White House in a teal Vetements pantsuit. One particular shot sees her striking a pose while sprawled out on a tabletop, flanked by Haney and Jackson. It is unclear if the photo was taken at the White House or another location. View this post on Instagram A post shared by Kim Kardashian West (@kimkardashian) on Jun 24, 2019 at 1:14pm PDT While sisters Kourtney and Khloé Kardashian rushed to cheer on their boss sister, some followers were unimpressed by the aspiring lawyers power moves. Why are you on the table? read one comment. If you want to be taken seriously studying law dont be lying on the table posing, another follower scolded the star. Story continues Classy on the table just like TRUMP LIKES IT, someone joked. Its unnecessary to sit on the table while advocating for the most marginalized people in America, added a commenter. How many doctors and lawyers you know sit on the table the way Kim did. I am sure her dad wouldnt. Others took her to task for aligning herself with Trump amid harrowing reports from migrant detention centers along the border. Im a fan, but how can you stand and sit next to people that are keeping young children and babies in holding camps? How? a fan asked. [F***] Trump Im unfollowing you, threatened another follower. Shouldve kept the [photo] of Donald Trump to yourself, read another comment. I am so happy that you can do this to help people transition! someone posted. Have you ever thought about advocating for the kids who are in the immigration camps? But many hailed Kardashian as the Armenian Elle Woods and praised her work. Regardless, of how you feel on Kim you can't deny shes helping change the world, a commenter wrote. Kim Kardashian is doing more than politicians. Kim is honestly helping so many people, she's amazing. Cant fault her efforts for using her platform for good use! We need more of this, added a fan. Kim is setting an example of how ALL Democrats should be acting!!! someone commented. Regardless of whether she agrees with President Trump on everything (shes been clear that she doesnt), shes still willing to work together with Trump on anything where they DO agree, for the good of the people involved. Congress should take a lesson. Kudos Kim. Kardashian isnt the only one who has received flak over the White House partnership. Ivanka Trump also faced backlash from those who said the star had no qualifications whatsoever. Read more from Yahoo Lifestyle: Why is she Asian?: Writer highlights problems with diversity in art by sharing criticism to a short story Fashion blogger calls out brands for ignoring black influencers Community furious after racist comments about Muslim sixth-graders' class photo surface online Follow us on Instagram , Facebook , Twitter and Pinterest for nonstop inspiration delivered fresh to your feed, every day. |
FedEx sues US over its ban of some exports to China, will report earnings after the close: Morning Brief
Tuesday, June 25, 2019
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After the bell, industrial heavyweight FedEx (FDX) and chipmaker Micron (MU) will release quarterly results.
FedEx is often looked to by investors as a reliable bellwether for global economic activity. In December 2018, FedEx issued weak guidance andwarned investors that the company was seeing continued deceleration internationally. The industrial giant cut its guidance again in March. Investors and analysts will likely be paying close attention to what management says on the earnings call in regards to heightened trade tensions and how those issues are impacting FedEx’s business.
On Monday,FedEx sued the U.S. government, stating that it shouldn’t be held liable for shipped products that violated a Trump administration ban on exports to some Chinese companies. The suit followed reports that Huawei was re-examoning its relationship with FedEx after diverted shipments.
Analysts polled by Bloomberg expect FedEx to report adjusted earnings of $4.83 per share on $17.8 billion in revenue.
Meanwhile, Micron’s report comes on the heels of rival Broadcom’s (AVGO)announcement earlier this month warning investorsthat the U.S. ban on Chinese tech giant Huawei and the ongoing trade war will likely cut into its revenue by $2 billion. Analysts are predicting that demand weakness surrounding dynamic random-access memory (DRAM) chips and NAND memory chips will likely weigh on Micron. Micron is expected to report adjusted earnings of 78 cents per share on $4.68 billion in revenue, according to data compiled by Bloomberg.
Read more
Gold and bitcoin jump on Iran sanctions: The price of gold and bitcoin was jumping on Tuesday morning as the U.S. hit Iran with fresh sanctions. The Trump administrations on Monday signed an order levying sanctions on top Iranian military leaders and Supreme Leader Ali Khamenei’s office. The sanctions came in response to the downing of a U.S. drone by Iranian forces last week. [Yahoo Finance]
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. [Yahoo Finance]
Sanders and Warren aren't the only candidates with plans for student loans: As Americans wrestle with over $1.5 trillion in student debt, the 2020 Democratic field has a variety of plans to confront the issue. On Monday, Sen. Bernie Sanders unveiled the most dramatic proposal yet: the government would pay off all loans held by 46 million Americans, covering private debt as well federal loans. The bill follows a slightly less ambitious plan from Sen. Elizabeth Warren that she estimates would eliminate 95% of the student debt held by Americans. Sanders and Warren say they are "cancelling" these debts. The rest of the field often uses a less-sexy word when discussing their plans: refinancing. [Yahoo Finance]
Also:Bernie Sanders unveils sweeping student debt cancellation plan
SpaceX launches Falcon Heavy rocket with 24 satellites: SpaceX launched its Falcon Heavy rocket on Tuesday from Kennedy Space Center in Florida, carrying 24 experimental satellites in what Elon Musk's rocket company called one of the most difficult launches it has attempted. The craft blasted off to cheers from onlookers at 2:30 a.m. ET after a three-hour delay from the original launch time late Monday. [Reuters]
UBS: World economy ‘one step away from global recession'
Dallas Fed's Kaplan: 'Too early' to make a judgment on rates
'I'm outraged at Boeing:' Why pilots are suing over the 737 Max
China wins when U.S. focuses on short-term profits: telecom mogul
Kraft Heinz is running out of cash: top analyst
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UPDATE 1-Lennar profit beats as lower mortgage rates boost home sales
(Adds second-quarter details, share move)
June 25 (Reuters) - Lennar Corp reported a higher-than-expected quarterly profit on Tuesday, as the No. 2 U.S. homebuilder's sales got a boost from lower interest rates for mortgages, sending its shares up 4% before the opening bell.
Several years of rising rates had put a brake on parts of the U.S. housing market in 2018.
But a moderation in mortgage rates and house prices in 2019 has improved affordability, especially for first-time homebuyers who have been largely priced out of the market.
The 30-year fixed mortgage rate stood at an average of 4.14% in the week ended June 14, hovering at levels lowest since September 2017, according to data from Mortgage Bankers Association of America.
Orders at Lennar increased just 0.5% to 14,518 homes in the second quarter ended May 31, but were above the top end of the 14,000-14,300 range expected by the company.
Net earnings attributable to Lennar rose 36% to $421.5 million, or $1.30 per share in the second quarter ended May 31.
Total revenue rose 1.9% to $5.56 billion.
Analysts on average had expected earnings of $1.14 per share and revenue of $5.10 billion, according to IBES data from Refinitiv. (Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel) |
Taxpayers' outrage over £2.4m cost of Harry and Meghan's home renovations
The cost of renovations on the Duke and Duchess of Sussex's Windsor home equated to £2.4m for taxpayers. [Photo: PA] Major renovations at the Duke and Duchess of Sussex's home in Windsor have been branded "outrageous" after it emerged that the work cost the taxpayer £2.4 million . Their new residence Frogmore Cottage underwent renovations to turn it from five separate properties to a family home for the couple and their baby son Archie. Works included the rewiring of electrics, the replacement of ceilings and flooring, along with the addition of new bathrooms, bedrooms and a kitchen. However, officials said fixtures and fittings were ‘substantially’ paid for by Harry and Meghan. The cost to the taxpayer is also likely to increase, given that exterior painting and landscaping still needs to be completed on the Grade II listed property. Graham Smith, from the Republic campaign group, noted that the money spent on Frogmore Cottage was part of an increase in overall expenditure by the royals. "This year's increases are outrageous at a time of widespread spending cuts. If even one school or hospital is facing cuts we cannot justify spending a penny on the royals. Yet with all public services under intense financial pressure we throw £2.4 million at a new house for Harry," he told The Sun . READ MORE: ‘Camilla should be Queen when Charles becomes King' Meghan and Harry's home Frogmore Cottage in Windsor. [Photo: Getty] Accounts for the Sovereign Grant, which funds the Queen and her household's official expenses, show the monarchy cost the taxpayer £67 million during 2018-19 - an increase of almost £20 million on the previous financial year. Mark Delaney, 57, a builder and decorator who is homeless in Windsor, said the taxpayer cash could have been used for the benefit of those most marginalised. "That money could have been used to transform the empty buildings in Windsor into places for the homeless to sleep. There are scores of empty rooms in Windsor Castle," he told The Daily Mirror . ITV’s Good Morning Britain also ran a poll on Twitter, asking users whether the taxpayer should pay £2.4 million for the redevelopment of Harry and Meghan's official residence. Story continues Annette responded: “NO!! Our NHS, Police and schools are grossly under funded, families are relying on food banks..the list goes on! Taxpayers funding their renovations is abysmal [sic].” While Denise Bowie said: “I’m very fond of the young Royal couple and think Harry works very hard ! However, no way should the tax payer foot this bill !! Frogmore is to be their own private home and between them they have more than enough money to fund renovations themselves! [sic]” No way in this world especially when there’s families having to use food bank and homeless is on the rise the money could of been spent on fixing our NHS or schools ext instead of people to live on luxury — Keith Dables (@freelander1974) June 25, 2019 NO!! Our NHS, Police and schools are grossly under funded, families are relying on food banks..the list goes on! Taxpayers funding their renovations is abysmal🤬 — Annette (@AnnetteH0526) June 25, 2019 I’m very fond of the young Royal couple and think Harry works very hard ! However, no way should the tax payer foot this bill !! Frogmore is to be their own private home and between them they have more than enough money to fund renovations themselves! — Denise Bowie (@bowiedenise) June 25, 2019 In 2014, the Duke and Duchess of Cambridge were also scrutinised for the £4.5m spent renovating Apartment 1A at Kensington Palace. And while taxpayers’ have footed the bill for Meghan and Harry’s home renovations, the figure for the refit of Buckingham Palace last year is considerably higher at £33m. The ten-year refurbishment project is set to cost £369m in total. READ MORE: Trump says the Queen's 'people' told him his state visit was 'the most fun she'd had in 25 years' Buckingham Palace is undergoing a ten-year refurbishment project. [Photo: PA] The Queen received £82.2 million from the taxpayer-funded Sovereign Grant for the last financial year, equating to a cost of £1.24 per person in the UK. Net expenditure has risen significantly from £47.4m in 2017/8 to £67m, because of the extra £15m for the reservicing of Buckingham Palace. The Prince of Wales and Duchess of Cornwall also spent the most on travel for 2018-19, racking up £1.3m in total. The couple undertook the most expensive overseas tour, spending £416,576 on their tour of the Caribbean and Cuba in March. Clarence House released a montage of Charles and Camilla’s year, which saw them notch up 638 official engagements. |
Do These 3 Things In Your 40s to Retire Rich
Retiring rich is something most people dream about, but few are able to achieve. Generation X-ers, in particular, are struggling with their savings, with a median amount of just $66,000 saved for retirement, according to a report from the Transamerica Center for Retirement Studies. Furthermore, only 14% of Generation X workers say they're very confident they'll have enough saved to retire comfortably.
Saving enough for retirement is more challenging than ever. With life expectancies continuing to climb (a third of today's 65-year-olds are expected to live until at least age 90, the Social Security Administration reports) andhealthcare costs continuing to balloon, you'll likely need several hundred thousand dollars (if not $1 million or more) saved to last through retirement.
Even if your savings are sparse, and you're just a couple short decades away from retirement, there are a few steps you can take in your 40s to ensure you have enough savings to last the rest of your life.
Image source: Getty Images
Your 40s are a prime time to gauge your retirement progress because you've had a couple decades to save, but if you're off track, you still have a couple more decades before you reach retirement age.
Ideally, you should have a good chunk of money saved in your retirement fund by your 40s, but it can be tough to tell exactly how much you should have stashed away by this age. One way to check your progress is to plug your information into aretirement calculatorto see whether your goals are still within reach. If the calculator says you should be saving, say, $300 per month to reach your goal and you're only saving $200 per month, you know you'll need to boost your savings from now until retirement age.
Another way to gauge whether you're on track is to compare how much you have in savings to your income. Workers should have about three times their salary saved for retirement by age 40, four times by age 45, and six times by age 50, according to Fidelity Investments. These figures are assuming a retirement age of 67 and that you want to have ten times your income saved by that age, so if you plan to retire earlier or later or expect to need more or less than that amount in retirement, you may need to adjust your calculations accordingly.
The most important thing is to ensure you know where you stand in terms of retirement saving. If you're behind, you still have time to catch up -- as long as you make adjustments sooner rather than later.
It's understandable to want to help your kids pay for college, but it shouldn't come at the expense of your retirement. However, too many parents are putting off retirement and taking on student loans instead.
The number of people over the age of 60 carrying student loan debt has quadrupled between 2005 and 2015, according to the Consumer Financial Protection Bureau, and the average borrower over the age of 60 owes around $23,500. When you're spending hundreds of dollars per month on student loans for your child's tuition, that makes it harder to save toward your own goals. And as much as you may want to help your kids financially, you also don't want to have to work well into your 70s or 80s because you can't afford to retire.
If you're going tohelp your children pay for college, be sure you're still prioritizing retirement. Saving for retirement is a long-term goal, and the longer you put it off, the harder it will be to catch up. So if you wait until after your student loans are paid off, you may not have enough time to save enough to reach your retirement goals.
Your 40s are some of your prime earning years, and it may be tempting to start splurging on all the luxuries you've always wanted. After all, you've been working hard for decades to reach this status in your career, so why not buy that fancy new car or move into an expensive new house?
If you can afford these luxuries and still save for retirement, then splurge all you want. But if you're spending more at the expense of your retirement fund, you may need to rethink your priorities. It's OK to treat yourself occasionally, but make sure you're still saving as much as you can at the same time.
Because you're likely in your peak earning years, this is also a good opportunity tosupercharge your savings-- especially if you're falling behind or have yet to get started. Because you still have a couple decades before you reach retirement age, your goals are still within reach if you make the effort to put as much of your income as possible toward your savings.
No matter where you are on your journey toward retirement, your 40s are a prime time to check up on your finances and make sure you're on the right path. If you've been saving diligently for years, keep up the good work. And if you're falling behind, your 40s are a good opportunity to jump-start your savings and catch up so you can retire rich and make the most of your golden years.
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Here's How a Library Card Can Save You Over $500 Per Year
You won't believe all you can access with a library card.
Image source: Getty Images.
If you haven't paid a visit to your local library since grade school, then you probably don't realize just how valuable a library card is.
Until recently, I figured I wouldn't get much use out of a library card. I didn't want to trek to the library every time I wanted to borrow a book, and I definitely didn't want to worry about returning anything on time.
Oh, how wrong I was. I've since learned that libraries offer all kinds of free media, including an impressive amount of digital content. For anyone looking to cut down on their entertainment spending, a library card could be exactly what you need.
Library cards are free to anyone who lives in the area, and through your library, you can borrow:
• Books
• Audiobooks
• Magazines
• Movies
• TV shows
The best part is that you don't even need to visit the library to borrow anything. Libraries now offer content digitally, allowing you to borrow whatever's available without leaving home. You can then access the content through your browser or, in the case of e-books, through an e-reader.
Not only is it convenient to access digital content, but it also gets returned automatically on the due date, so you'll never end up with a late fee.
Besides the content you can access with a library card, many libraries also offer other useful services periodically in the way of classes and events. Your local library could have classes that teach helpful skills, author visits, and story time for kids. And if you're ever without internet access, you can go to the library and use a computer there.
Depending on how much you typically spend on entertainment and how much of that you can replace with content from the library, you could easily save $40 to $50 per month or more. Over a year, that could be just what you need to help boost the balances in yourbank accountsorbolster your emergency fund.
The two types of people who will save the most from a library card are avid readers and those who want to have entertainment at their fingertips for free. I fall into the first category, as I usually read for hours every day. After adding up the Kindle prices of all the books I've borrowed, I found that I've saved $145.70 on 14 books from the beginning of January to the end of March. Over a full year, that would average out to $582.80.
Even if you don't read that much, you could also save money by replacing your cable and/or streaming services with video content from the library. The selection won't be as vast, but there's still plenty to watch.
To get a library card, visit your local library's website and fill out an online application. After completing the application, you can visit any branch of that library to pick up your card.
When you pick up your card, remember to bring a photo ID. If your ID doesn't have your current address on it, then you should also bring a bill addressed to you to prove that you meet the library's residency requirements.
Residency requirements vary by library. You'll usually need to be a resident of the city to get a card with its library, but this isn't always the case, as some libraries have more relaxed requirements.
There are two services you should know about to access digital library content: Overdrive and Kanopy. Although these services aren’t universal to all libraries, most popular libraries have chosen to offer digital content this way.
Overdrive is where you'll find your library's e-books, audiobooks, magazines, and videos. You can find your library's specific Overdrive page by going to theOverdrive homepageand clicking "Find a library," or by simply searching for the name of the library plus the word "Overdrive."
You'll find a fantastic selection of e-book and audiobook content on Overdrive. Popular titles tend to get snatched up quickly, so you'll sometimes need to place holds on the books you want and wait until they're available.
The TV and movie selection on Overdrive isn't exactly going to give Netflix a run for its money, but there are some good options available. And when you want more, you can head over to the next free service your library offers.
Kanopy is a video streaming service offering movies and television series. From theKanopy homepage, click "Watch Now" and then select your library using the search function. This will bring you to your library's Kanopy page, where you can register for an account with your library card number and PIN.
There's plenty of content on Kanopy, and its movies are where it really shines. You can find everything from Criterion Collection classics to modern movies, and the service is well-known for its documentaries. It is lacking when it comes to series, though. For TV shows, your best option is reserving DVD box sets at the library.
With Kanopy, you receive monthly play credits through your library, and each credit lets you play one title for up to 72 hours. The standard amount is 10 play credits per month.
There are all kinds ofways to save moneyout there, but getting a library card is without a doubt one of the easiest options, and it doesn't require you to make any crazy lifestyle changes.
If you want to, you could eliminate your entertainment spending entirely and elect to get all your movies and shows courtesy of your library card. Or you could just borrow books instead of buying them and still potentially save a couple hundred bucks per year.
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Prince Harry and Meghan's Home Renovations Cost $3 Million—And Taxpayers Paid the Bill
The Duke and Duchess of Sussex’s home was renovated with 2.4 million pounds ($3.06 million) of taxpayers’ money, royal accounts revealed Tuesday.
Prince Harry and his wife Meghan’s residence near Windsor Castle, called Frogmore Cottage, underwent major work to turn five properties back into a single home for the couple and their baby son Archie. Fixtures, fittings and furnishings at the Victorian-era structure were paid for by the royal couple.
The figures were part of the release of the royal family’s accounts, which showed that the British taxpayers spent 67 million pounds ($85.2 million) on the monarchy during 2018-19, a 41% increase on the previous financial year.
“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,” said Michael Stevens, the keeper of the Privy Purse. “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.”
The number rose primarily because of higher levels of spending devoted to critical renovations for Buckingham Palace in London. The iconic structure is in the second year of a 10-year project after a Treasury report concluded the building’s infrastructure was in danger of a catastrophic failure.
The total Sovereign Grant, which funds Queen Elizabeth II and her household’s official expenses, was 82.2 million pounds, or 1.24 pounds per person in the U.K. That figure includes 15.2 million pounds ($19.3 million) set aside for future phases of the palace renovation.
The palace says the royal family took on 3,200 official engagements during 2018-19 and welcomed 160,000 guests to royal palaces and events. |
China and the Major Powers
B eijing is able to work effectively within regions where power is diffuse. However, one of the greatest challenges in completing Chinas ascending vision of victory will be outmaneuvering, coopting, or breaking the power of other major nations, especially the United States. While Russia, India, and Japan all play important roles in their regions and will continue to do so in the future Chinas core challenge is to siphon power away from America, the reigning superpower, without provoking a response that will derail Chinas activities and plans. Despite new actions on trade and commerce in 2018, U.S. understanding of Chinas ascendancy remains chaotic and contradictory. The long-standing U.S. strategy towards China, engage but hedge, lives on even as U.S. national security sounds the alarm on China, but U.S. business and finance works to make the most of the Chinese market. In foreign-policy and academic circles, American discourse paints polarizing categories about those who are hawks and those who are doves, even as the actions, objectives, and strategies of the Chinese Communist Party are on vivid display in Asia and around the world. Beijing adds to this confusion in America and elsewhere in the world through its own brand of interference operations directed against democratic countries. In contrast to Russias attempts to sow political discord in Americas 2016 elections, Chinese influence operations present a positive, sanitized image of China to nations around the world. This is meant to distort a countrys discourse on China and to constrain action against Beijing. In the words of a 2018 report from a group of leading American China experts, Beijings influence operations target think tanks, universities, and media [as well as] state, local, and national government institutions. In doing so China seeks to promote views sympathetic to the Chinese Government, policies, society, and culture; suppress alternative views; and co-opt key American players to support Chinas foreign policy goals and economic interests. Story continues However, the challenges for China should not be underestimated when it comes to strategic competition with the United States. The United States retains enormous advantages in terms of economic and military power, a global alliance system, and leadership in the innumerable institutions built under the Pax Americana. The U.S. lacks, however, at present, the strategic focus of a rising nation such as China. Thus, the Chinese Communist Party is able to work around the edges of American power, building its own global presence. Chinas leaders prepare for military confrontation with America and its allies while also working to complete an economic ascendancy of such proportions that the U.S. may ultimately if this strategy is successful find itself outmaneuvered and ultimately surpassed and replaced in each realm in which power is built. China is likely to press ahead with attempts to outmaneuver U.S. alliances and partnerships, gradually peeling countries away from an American order and into Chinas economic orbit through trade, investment, and commercial incentives that America cant or wont provide. The integration of Europe into the Belt and Road, for example, is paramount to Chinese strategy; the weakening of U.S.European ties across the Atlantic, driven by deeper European economic integration with China, would be a cornerstone of Chinese long-term strategic victory. Splitting the U.S. alliance system in Asia is commonly understood to be one of Beijings long-term objectives, especially when it comes to the relationship between the United States and Japan this is a relationship that party strategists and leaders see as hostile to Chinese power in Asia. In the words of one of the Communist Partys senior ideologists, speaking to former U.S. national security adviser Zbigniew Brzezinski in 2013: China today is neither the Qing regime, nor Germany in World War I nor Japan in World War II. It definitely will not work to go back to the old way of checking China by supporting Japan. In a word, encirclement of China is destined to fail. They must recognize and acknowledge the existence of a New East. In the long term, with the breaking of the U.S. presence in Asia and the integration of Europe and other major continents into the Belt and Road, China would be free to consolidate its power in an intercontinental system in which America plays a weakened role. This would, at worst, convert the U.S. into an isolated, island continent, detached from a colossal geographical system, one where China sits at its center as the dominant military and economic power. What role would the United States and the other major powers take in a China-led world? What would it mean for the de facto end of American preeminence in global affairs? While China insists that its rise can be a win-win, and much American discourse focuses on the fear of war with China, the reality is that Chinas rise is in fact an open challenge to the United States. China shows some comfort and effectiveness in formulating its relations to entire regions, especially when engagement is based on beneficial trade flows and resource acquisition. However, China has, in its modern history, shown a far greater discomfort in its relations with major nation-states. Its wars with India, Russia, and the United States during the founding decades of the Peoples Republic of China attest to this. All such wars were considered to be defensive struggles waged in Chinas interest. Chinas leaders did not hesitate to use military force when they felt that they had been pressed too far, meaning that vital interests were at stake, or that Chinas position in its region was threatened and the country had to make a stand. What has changed dramatically since Chinas wars of the 20th century is both the scope of Chinas global interests and its military capabilities. In short, Chinas region is in fact evolving into a global playing field . In the 1950s, there were four key strategic regions that mattered as China built its national industry, consolidated its borders, and took the first steps on its journey as the New China: the Himalayas (Tibet), the Korean Peninsula, Taiwan, and Southeast Asia. China fought wars in each of these arenas, all considered vital to the reconstruction of its geopolitical position pure sovereignty and territorial integrity itself following the Century of Humiliation. Chinas assistance to its fellow Communist states, North Korea and Vietnam, was not simply an act of Cold War camaraderie: These actions resulted from calculated assessments of Chinese national interest and security, in a period when territorial integrity was felt to be at risk and sovereignty was seen as a fragile and hard-won thing. These were not yet the operations of a major military power, but those of an agrarian, preindustrial society. Nonetheless, Chinas leaders were able to muster massive quantities of manpower and the experience of nearly constant warfare in their own region, from the Second World War to the Chinese civil war, as well as a powerful sense of national purpose at a leadership level. China, throughout the 20th century, deployed these assets against perceived enemies and adversaries all along its frontiers. The China of today has changed. China is no longer concerned only with its traditional strategic geography. It is now a global actor, building a multi-regional military, with an intercontinental vision of its legitimate rights and interests. Chinas leaders tell their military that they must improve their combat capability and readiness for war, and their people that the Central Military Commission should lead the armed forces to be ready to fight and win wars, and to undertake the mission and tasks of the new era. One of the most important questions for other countries is simple: What kind of wars is China planning to fight? The use of paramilitary power to compel smaller nations to bend to Chinas will is substantial. In the South China Sea, Chinas gray zone paramilitary operations are directed against Southeast Asian nations that have rival claims to Chinas blue national soil. But major powers must also beware. Chinas military, above all, is designed for conflict with the United States. It is also designed to deter and defeat India and, if necessary, Russia, though RussianChinese relations are currently at a high point. In the 20th century, China fought wars in or conducted military operations against nearly every nation on its periphery: Korea, India, Russia, Japan, Taiwan, and Vietnam, and against the United States and the United Nations in Korea, in addition to waging a bloody civil war. In the 21st century, its strategic space has expanded beyond the imagination of Chinas original leaders. Despite win-win rhetoric in English, Chinese-language discourse is not always so peaceful, especially at a popular level. Recall Maos inflammatory speeches on the ability of hundreds of millions of Chinese people to absorb a nuclear war with any adversary, and consider the lines, below, that played across Chinese national media in 2013. They originated in the Communist Partyrun Global Times and were syndicated across numerous outlets online as Chinas national media reported on new nuclear-submarine-launched ballistic missiles (SLBMs). The paper called Chinas SLBMs the national weapon, the development of which is an important event in the history of U.S.China relations. Because the Midwestern states of the United States are sparsely populated, in order to improve the killing effect, the nuclear killing of U.S. soft targets should concentrate on major cities on the West Coast, such as Seattle, Los Angeles, San Francisco, and San Diego. . . . If the Dongfeng 31A is launched above the North Pole, it can easily destroy a series of large cities on the East Coast and in New England, such as Ann Arbor, Philadelphia, New York, Boston, Portland, Baltimore, and Norfolk. The population of these cities accounts for one-eighth of the total population of the United States. More recently, in December 2018, at the Military Industry List summit in Shenzhen, China, Rear Admiral Luo Yan (retired), deputy head of the Academy of Military Science of the Peoples Liberation Army, explained that China could sink two U.S. aircraft carriers. What the United States fears most is taking casualties, the admiral [Luo Yuan] said, before adding that such an attack on two of the U.S. Navys steel behemoths would claim upwards of 10,000 lives, the Navy Times reported. Luo also described the Five National Foundations of the United States: the military, the U.S. dollar, talent, voting, and the cultivation of enemies; he explained that China should use its strengths to attack the enemys shortcomings. Attack wherever the enemy is afraid of being hit. Wherever the enemy is weak. Despite coverage in multiple countries, neither Admiral Luos statements nor the conference in Shenzhen found their way into the most prominent American news outlets. Will China make accommodations with major nations such as Russia and India? What will its relationship be with Europe, which is both a major market and a base for important technological harvests for the PRC, and whose military power, while significant, is mostly far away? And what about Japan, the archenemy in Chinas popular culture, but also a substantial military power and close ally of the United States? And what about the United States itself? These are among the most important questions in the coming years of Chinas rise to global power. Concern among major nations is already visible. India is worried about Chinese influence in the Indian Ocean region and military activity in the Himalayas. Russia, despite its comprehensive strategic partnership with China and Xi Jinpings assessment that RussianChinese relations are now the best ever, may also be playing a long-term losing geopolitical game with the PRC. Russias stalling economy is now only 15 percent the size of Chinas GDP. As it loses its military edge over China, it also cedes influence in Central Asia, and potentially even in the Arctic in the long run. As a Russian scholar remarked recently in Washington, Russia is concerned, ultimately, about an Asia dominated by China. I asked her why, then, was Russia helping China to build its military capabilities? She replied that Russia had to sell something to someone . Europe provides a fascinating case. Burdened with regional concerns at present, from immigration to terrorism to the question of Russia itself, policymakers often see China as a welcome source of relief to otherwise troubling economic circumstances. The China Daily in Europe studiously avoids military and security issues in Asia, instead using its columns to invite European companies to come and surf the wave of Chinese mergers and acquisitions, while also throwing in that unlike the European colonial powers China intends to rise peacefully. This is a convenient message for the moment. However, as U.S.China problems increase, European nations may find it difficult to remain bystanders to a shifting strategic balance that is dangerous to their American military partner and defender. The problem of Chinas ascendency will be all the more urgent for Europe as programs such as Made in China 2025 threaten to damage European competitiveness a fact that European business and governments are increasingly aware of. In short, it is a brave new world for countries large and small as Chinas rise continues, as its ambitions increase, and its sheer global weight is felt more and more. From major regions to major nation-states, Chinas global impact is already more profound than anything else seen since the end of the USSR, and perhaps rivals the rise of the United States itself. It is built not only on ambition but on sheer necessity wedded to a vision of global proportions. Resource interests, food security, water, protein, fishing rights, maritime trade routes, mining interests issues that span the planet are the baseline interests for Chinas billion-plus people. Editors Note: This article is adapted from Chinas Vision of Victory . More from National Review China Warns U.S. to Scrap Sanctions or Bear the Consequences Cold War II Americas Unused Weapon |
NATO calls on Russia to destroy new missile, warns of response
By Robin Emmott BRUSSELS (Reuters) - NATO urged Russia on Tuesday to destroy a new missile before an August deadline and save a treaty that keeps land-based nuclear warheads out of Europe or face a more determined alliance response in the region. NATO defense ministers will discuss on Wednesday their next steps if Moscow keeps the missile system that the United States says would allow short-notice nuclear attacks on Europe and break the 1987 Intermediate-range Nuclear Forces Treaty (INF). "We call on Russia to take the responsible path, but we have seen no indication that Russia intends to do so," Secretary-General Jens Stoltenberg told a news conference. "We will need to respond," Stoltenberg said. He declined to go into more details. But diplomats said defense ministers will consider more flights over Europe by U.S. warplanes capable of carrying nuclear warheads, more military training and the repositioning U.S. sea-based missiles. The United States and its NATO allies want Russia to destroy its 9M729/SSC-8 nuclear-capable cruise missile system, which Moscow has so far refused to do. It denies any violations of the INF treaty, accusing Washington of seeking an arms race. Without a deal, the United States has said it will withdraw from the INF treaty on Aug. 2, removing constraints on its own ability to develop nuclear-capable, medium-range missiles. The dispute has deepened a fissure in East-West ties that severely deteriorated after Russia's seizure of Crimea and its involvement in Syria. "ALL OPTIONS ON TABLE" Russia warned on Monday of a stand-off comparable to the 1962 Cuban missile crisis if the United States were to deploy land-based missile systems near Russia's borders, but Stoltenberg said there were no such plans. U.S. Ambassador to NATO Kay Bailey Hutchison told reporters that at present, Washington was only considering conventional, not nuclear weapons, in any possible response. Story continues "All options are on the table but we are looking at conventional systems, that's important for our European allies to know," she said. European allies are also worried about the deployment of U.S. nuclear missiles in Europe, as happened in the 1980s, and being caught up in nuclear competition between Moscow and Washington. The INF treaty, negotiated by then-President Ronald Reagan and Soviet leader Mikhail Gorbachev and ratified by the U.S. Senate, eliminated the medium-range missile arsenals of the world's two biggest nuclear powers and reduced their ability to launch a nuclear strike at short notice. The treaty bans land-based missiles with a range between 500 km and 5,500km (300-3400 miles). (Reporting by Robin Emmott; Editing by Andrew Heavens) |
Asia's coal developers feeling left out by cold shoulder from banks
By Melanie Burton and Fransiska Nangoy NUSA DUA, Indonesia (Reuters) - Developers of coal mines and coal-fired power plants in Asia are facing difficulties growing their businesses as global financial institutions refuse to back their projects to avoid criticism over climate change, industry participants said on Tuesday. That is intensifying pressure on an industry struggling to build new markets amid competition from alternative power generation sources, delegates to the Coaltrans conference in Indonesia said. "Coal power plant financing is very challenging," said Dharma Djojonegoro, Deputy Chief Executive Officer of Indonesia's PT Adaro Power, the power generation unit of the country's second-largest coal miner PT Adaro Energy. "European banks have said they don't want to finance coal projects for a while, Japanese followed and now Singapore. About 85% of the market now don't want to finance coal power plants," he said. More than 100 major financial institutions have divested from thermal coal projects by February, along with more than 20 significant insurers, according to the Institute of Energy Economics and Financial Analysis. "Chinese banks so far are still available, but not all banks, so you have to try them one by one," Djojonegoro added. Indonesia is planning to add 35 gigawatt of power capacity by 2024 of which 54% will come from coal-fired plants. A majority of financing has been secured for the first phase of development, but not all, said an industry analyst who declined to be named because it was against company policy. The lack of funding may delay plants in other markets where thermal coal demand is expected to grow, including India and Vietnam, which are depending on low-cost coal-fired power to support their developing manufacturing sectors. "Certainly for the coal-fired power sector it's already clear there is no investment coming from European banks, U.S. banks, or Australian banks," said Sacha Winzenried, a partner with PricewaterhouseCoopers in Jakarta. Story continues "There still seems to be some interest from Asian banks, China, Japan and Korea to a certain extent, although I believe they are going to start to pull back as well." Japan’s Mizuho Financial Group Inc and Mitsubishi UFJ Financial Group both said last month they would tighten their financing policies for coal-fired power projects to tackle global climate change. For miners, the withdrawal of financing is also threatening new thermal coal supply, particularly for smaller companies. "Banks are increasingly reluctant to fund coal-related projects, especially the new projects. This will be a challenge to supply in the medium term since new projects are having difficulty to get started," said Dileep Srivastava, a director at Bumi Resources, Indonesia's largest coal miner. (Reporting by Melanie Burton and Fransiska Nangoy; editing by Christian Schmollinger) |
I Ran A Stock Scan For Earnings Growth And Owens Corning (NYSE:OC) 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. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inOwens Corning(NYSE:OC). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.
See our latest analysis for Owens Corning
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. It's no surprise, then, that I like to invest in companies with EPS growth. We can see that in the last three years Owens Corning grew its EPS by 13% per year. That's a pretty good rate, if the company can sustain it.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note Owens Corning's EBIT margins were flat over the last year, revenue grew by a solid 6.6% to US$7.0b. That's progress.
You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
You don't drive with your eyes on the rear-view mirror, so you might be more interested in thisfreereport showing analyst forecasts for Owens Corning'sfutureprofits.
Since Owens Corning has a market capitalization of US$5.5b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Given insiders own a small fortune of shares, currently valued at US$87m, they have plenty of motivation to push the business to succeed. This should keep them focused on creating long term value for shareholders.
One positive for Owens Corning is that it is growing EPS. That's nice to see. Just as polish makes silverware pop, the high level of insider ownership enhances my enthusiasm for this growth. The combination sparks joy for me, so I'd consider keeping the company on a watchlist. If you think Owens Corning might suit your style as an investor, you could go straight to its annual report, or you could first checkour discounted cash flow (DCF) valuation for the company.
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Caroline Flack fears being on a reality show would ruin her chances of finding love
Caroline Flack ( Credit: Joel C Ryan/Invision/AP) Love Island host Caroline Flack has rather ironically revealed that she wouldn’t go on a reality show, because she thinks it could ruin her love life. Flack is the face of the ITV dating show that aims to help people find a partner, but she thinks appearing on a similar programme would have the opposite effect for her, lessening her “potential” of becoming someone’s wife. The presenter has appeared on Strictly Come Dancing and The X Factor, as well as I’m A Celebrity’s ITV2 spin-off show, but she admitted that she’d never enter the jungle herself. Read more: Former 'Love Island' host Kelly Brook claims Caroline Flack is copying her life Caroline Flack poses upon arrival at The British Fashion Awards 2017 in London, Monday, Dec. 4th, 2017. (Credit: Joel C Ryan/AP) Speaking to Arielle Free and Kem Cetinay on the Love Island: The Morning After podcast, she said: "I worked on the Jungle for two years hosting the ITV2 spin-off show and I can safely say you would not get me in there. "I'd probably be voted out first night. I'm not very good with creepy-crawlies, water or heights. "The more reality TV I do, the less of a potential wife I'd become." Flack went on to tease a drama-filled week on Love Island, claiming the couples will all be tested. Love Island 2019 line-up (Credit: ITV) Read more: Jameela Jamil responds to Caroline Flack over 'Love Island' diversity row "This week is gonna be drama week," she said. "Drama for me is just the testing of the relationship, so it is good to see. That's the whole point is just testing the relationships. "So when I say drama I don't mean screaming and shouting and arguing and that kind of stuff, it's the decisions they [the Islanders] have to make, I like all that." Her comments will raise speculation that the Islanders are about to be introduced to Casa Amor, the show’s second villa, along with a host of new contestants who will be looking to stir things up between the existing couples. |
Huawei-U.S. Clash Mars China's Biggest Mobile Forum
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The U.S. blacklisting of Huawei Technologies Co. and other top Chinese tech companies is making it trickier for some mobile industry professionals to get down to business.
The June 26-28 Mobile World Congress Shanghai, China’s largest forum for the mobile industry, is scheduled to start amid almost daily salvos from the Trump administration aimed at Huawei and other technology companies in the world’s largest mobile phone market.
The Trump administration’s blacklisting of Huawei has dominated global industry discussions in past months, as it threatens to upend supply chains and disrupt the global roll out of fifth-generation technology -- an infrastructure spending spree worth hundreds of billions of dollars. U.S.-Chinese tensions are escalating just as carriers around the world such as China Mobile Ltd. and China Telecom Corp. -- set as keynote speakers at MWC Shanghai -- choose equipment vendors for the 5G networks expected to support technologies from remote surgery to automated factories and driverless cars.
“It’s quite a sensitive moment,’’ said William Chou, managing partner of Deloitte Private in Beijing, and a scheduled speaker at the conference’s key Global Device Summit session. He said it’s unlikely Huawei and ZTE will want to show off all their latest devices at MWC Shanghai given how the perception that they are ahead of global rivals has fueled tension.
The focus will instead be on 5G applications and how the vastness of China’s market is likely to drive development, Chou said.
“We really need to understand the market, putting aside the political agenda,” said Chou. “Business is still business, and particularly in this telco area -- telcos and device manufacturers -- they all need to work together.”
The Shanghai event is modeled after a bigger annual industry show in Barcelona. This year’s gathering in Spain was also squarely focused on Huawei and China, a nod to the country’s rising global importance and to how the Washington-Beijing dispute is creasing the business environment.
“The danger for international companies, especially American companies, is that they are ceding these opportunities to influence the marketplace to non-American companies, which can have knock-on consequences that could be far greater than some had anticipated,’’ said Jake Saunders, a vice president at ABI Research, and a scheduled speaker and moderator at the conference.
A two-hour flight away in Osaka, Huawei is also likely to be on the agenda for a meeting between the presidents of China and the U.S. at the G-20 summit.
Last week, President Donald Trump said he had a “very good telephone conversation” with President Xi Jinping and said talks will resume before the two meet at the June 28-29 summit. It’s not clear if Huawei was part of their call, but it’s an issue Trump himself has said could be on the table.
Trump last year reversed a similar ban on Huawei rival ZTE at Xi’s request. Getting that kind of result now would be significant for Xi because the company is exponentially more important than ZTE, said Samm Sacks, cybersecurity policy and China digital economy fellow at New America.
People familiar with the matter on Tuesday said China is considering adding U.S.-based delivery firm FedEx Corp. to its list of so-called unreliable entities. FedEx drew the ire of Chinese officials after Huawei said that documents it asked to be shipped from Japan to China were instead diverted to the U.S. without authorization.
What Bloomberg Intelligence says:
“China’s early, widespread 5G deployment would entitle it to the spoils of first-mover advantage, including an edge in setting global standards. An aggressive infrastructure and network build-out will be required for a swift rollout, fueling demand for telecom site resources and equipment.”--Denise Wong, BI Infrastructure analyst--Click here for the research
Huawei itself will be out in force at the Shanghai show, based on the lineup at the MWC website this week. Deputy Chairman Ken Hu is scheduled to deliver a keynote and the speaker’s list includes 17 names from the company, including Chaobin Yang, president of Huawei’s 5G product line; Kevin Ho, president of handsets, and Hua Liang, chairman of the Huawei board.
As delegates and speakers head to Shanghai, Huawei is said to be preparing for smartphone shipments outside China to drop by between 40 million and 60 million this year. That outlook highlights the uncertainty gripping the company, a Chinese national champion accused by the U.S. of aiding Beijing in espionage -- something Huawei has repeatedly denied.
Still, the Shanghai show is on track as planned to draw more than 60,000 attendees from over 110 countries and territories along with about 550 companies, GSMA, the industry group that produces the event, said in an email.
Stockholm-based Ericsson AB, a key 5G equipment supplier, is scheduled to field 11 speakers at the event, including Chief Executive Officer Borje Ekholm and Chief Technology Officer Erik Ekudden. Nokia Oyj, another top gear manufacturer, has eight speakers listed on the program website.
(Updates with possibility FedEx would be added to China’s list of unreliable entities in 11th paragraph. The date of the show was corrected in a previous version of this story.)
To contact the reporter on this story: Dave McCombs in Tokyo at dmccombs@bloomberg.net
To contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net, Edwin Chan
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Plantronics, Inc. (NYSE:PLT): Commentary On Fundamentals
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Plantronics, Inc. (NYSE:PLT) due to its excellent fundamentals in more than one area. PLT is a company with a a great history of dividend payments as well as a excellent future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on Plantronics here.
PLT is an attractive stock for growth-seeking investors, with an expected earnings growth reaching triple digits in the upcoming years, underlying the notable 22% return on equity over the next few years leading up to 2022.
PLT rewards its shareholders with attractive dividend yield, exceeding the low-risk savings rate, which is what investors want in order to compensate them for the risk of holding a stock. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.
For Plantronics, there are three pertinent aspects you should further research:
1. Historical Performance: What has PLT's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
2. Valuation: What is PLT 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 PLT is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of PLT? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UPDATE 1-Deutsche Telekom wins SK Telecom backing for venture arm; 5G JV agreed
(Adds 5G joint venture between SK Telecom and Deutsche Telekom)
BERLIN, June 25 (Reuters) - Deutsche Telekom's venture capital arm said on Tuesday it was closing its second fund to new money after raising $350 million to invest in software service companies that are powering digital transformation.
Corporate sponsors SK Telecom of Korea and German optics company Zeiss have joined Deutsche Telekom, HarbourVest, Neuberger Bermann and others in backing the fund, Deutsche Telekom Capital Partners (DTCP) said.
SK Telecom's $30 million investment is part of a wider agreement with Deutsche Telekom to set up a joint venture to develop technologies and services for next-generation 5G mobile networks, the Korean company said separately.
DTCP's Venture/Growth Fund II, founded last year, has already made five investments. These include leading a funding round at Fastly, which helps accelerate internet page loads and floated recently in New York.
The fund is focusing on so-called Software-as-a-Service (SaaS) companies that offer cloud-based software with subscription pricing - a "land and expand" model that makes it easy to ramp up use without major IT headaches, said DTCP head of Venture/Growth and Managing Partner Jack Young.
"From an investor's perspective, an enterprise SaaS business is easily measurable and predictable," Young told Reuters, adding that digital transformation will accelerate as artificial intelligence is increasingly deployed in software.
DTCP's first fund, set up in 2015, raised $140 million from Deutsche Telekom. It has made four exits, returning half of the capital already to investors and remains invested in nine firms.
In total, DTCP is managing or advising on $1.7 billion in assets. (Reporting by Douglas Busvine; editing by David Evans and Michelle Martin) |
Does Atlantic Industrial Minerals's (CVE:ANL.H) Share Price Gain of 100% Match Its Business Performance?
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By buying an index fund, you can roughly match the market return with ease. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, theAtlantic Industrial Minerals Incorporated(CVE:ANL.H) share price is up 100% in the last three years, clearly besting than the market return of around 14% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 33%.
Check out our latest analysis for Atlantic Industrial Minerals
Atlantic Industrial Minerals hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that Atlantic Industrial Minerals will find or develop a valuable new mine before too long.
We think companies that have neither significant revenues nor profits are pretty 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. Some Atlantic Industrial Minerals investors have already had a taste of the sweet taste stocks like this can leave in the mouth, as they gain popularity and attract speculative capital.
Atlantic Industrial Minerals had liabilities exceeding cash by CA$1,085,865 when it last reported in November 2018, according to our data. That makes it extremely high risk, in our view. So we're surprised to see the stock up 26% per year, over 3 years, but we're happy for holders. Investors must really like its potential. The image below shows how Atlantic Industrial Minerals's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. One thing you can do is check if company insiders are buying shares. If they are buying a significant amount of shares, that's certainly a good thing. You canclick here to see if there are insiders buying.
We're pleased to report that Atlantic Industrial Minerals shareholders have received a total shareholder return of 33% over one year. That's better than the annualised return of 5.9% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. You could get a better understanding of Atlantic Industrial Minerals's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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. |
At US$23.37, Is It Time To Put Altice USA, Inc. (NYSE:ATUS) On Your Watch List?
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Altice USA, Inc. (NYSE:ATUS) saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Altice USA’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for Altice USA
Great news for investors – Altice USA is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $31.93, but it is currently trading at US$23.37 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Altice USA’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
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. With profit expected to more than double over the next couple of years, the future seems bright for Altice USA. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder?Since ATUS is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on ATUS for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ATUS. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Altice USA. You can find everything you need to know about Altice USA inthe latest infographic research report. If you are no longer interested in Altice USA, 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. |
Coca-Cola Stock Displays Solid Momentum: Will it Sustain?
The Coca-Cola CompanyKO has been resilient in a tough industry, owing to the effective execution of strategies to evolve as a consumer-centric total beverage company. Innovation and investment in core categories and brands have been the key focus area for the company, which led to the expansion of retail value share. Further, it is gaining from its ongoing productivity efforts and disciplined growth strategies along with robust performance across segments.These traits altogether bolstered the company’s quarterly performances as evident from a robust surprise trend. First-quarter 2019 marked its seventh positive earnings surprise in the last eight quarters and the seventh straight sales beat.Notably, the stock has gained 19.8% in the past year, outperforming the industry’s growth of 5.8%. Moreover, this Zacks Rank #3 (Hold) company’s impressive long-term earnings growth rate of nearly 7% indicates that the stock’s momentum is likely to continue.
Factors Aiding GrowthCoca-Cola has been a clear beneficiary of the actions undertaken over the years to improve productivity, including innovation and investing in core categories and brands. This mantra extends to all business aspects, ranging from massive categories like hot beverages to emerging ones like Kombucha. Constant innovation of brands is the key to the company’s sustained growth.For example, over the past three years, innovation at the Coke brand has helped Coca-Cola to accelerate global retail value growth every year, reaching 6% growth in 2018. However, the company’s innovation strategy is not focused on the Coke brand alone. Recently, its leading Innocent juice brand in Europe expanded in plant-based beverages. Additionally, the Simply product, within the Challenger brand, launched a new line of smoothies.Additionally, Coca-Cola continually maintains relevance for the Coke brand through updates to the flagship product and its many variants. Recent momentum at this brand is attributed to the success of Coke Zero Sugar over time, with more growth potential ahead. Notably, the Coke Zero Sugar delivered double-digit growth globally for the sixth straight time in first-quarter 2019. The company’s sparkling portfolio benefited the momentum in Coke Zero Sugar and other flavor innovations like Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar.Bringing innovation for Coke to the next level, the company tested Coca-Cola coffee in several Asia markets in 2018. Encouraged by the test results, it now plans to launch Coke coffee in more than 25 markets around the world by the end of 2019. Additionally, it is testing Coke Energy — another variant of Coke — with more energy-boosting characteristics and new taste.Furthermore, the company is on track with its productivity and reinvestment program that focuses on initiatives like restructuring the global supply chain, investing in technology to streamline operations, implementing a zero-based budgeting program, headcount reductions and driving increased efficiency in direct marketing investments. Savings from the program are being used to fund marketing programs and innovation to re-accelerate top-line growth, margin expansion and returns on capital.Coca-Cola aims to achieve the productivity savings target of $3.8 billion by 2019 from the initiatives implemented under this program since its beginning. The company is on track to achieve almost $5 billion in savings from 2008 through 2019, on productivity and reinvestment programs. As of the end of 2018, it had about $600 million remaining in growth productivity savings to be captured in 2019.HurdlesDespite witnessing robust growth, Coca-Cola’s sales and earnings for first-quarter 2019 continued to be hurt by adverse currency rates. Moreover, the company estimates currency headwinds to persist and impact results in the second quarter and 2019. It expects unfavorable currency to affect revenues by 3-4% and comparable operating income by 6-7% in 2019. Meanwhile, currency headwinds are likely to hurt comparable net revenues by 4-5% and comparable operating income by 7% in second-quarter 2019.Moreover, the company’s outlook for 2019 remains drab compared with the prior year. The estimated organic sales growth of nearly 4% for 2019 suggests a slowdown from 5% organic sales growth witnessed in 2018. Further, the company expects comparable earnings to be between down 1% and up 1%, whereas it recorded $2.08 in 2018.Bottom LineCoca-Cola has been oscillating between long-term positives and near-term hurdles. Additionally, we believe that it is poised to gain from the recent lift of tariffs on steel and aluminum imports from Canada and Mexico. This should ease cost pressures on the company to some extent. On that note, we would suggest holding on to the stock for the long term.Don’t Miss These Better-Ranked Beverage StocksPrpsiCo Inc. PEP has a long-term earnings growth rate of nearly 7%. The stock presently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Monster Beverage Corporation MNST, with long-term earnings per share growth rate of 14.3%, currently carries a Zacks Rank #2.Campari Group DVDCY, with long-term earnings per share growth rate of 7.5%, also carries a Zacks Rank #2 at present.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot trades we're targeting>>
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 ReportPepsico, Inc. (PEP) : Free Stock Analysis ReportMonster Beverage Corporation (MNST) : Free Stock Analysis ReportCampari Group (DVDCY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Imagine Owning Blue Star Gold (CVE:BAU) While The Price Tanked 53%
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The truth is that if you invest for long enough, you're going to end up with some losing stocks. But the long term shareholders ofBlue Star Gold Corp.(CVE:BAU) have had an unfortunate run in the last three years. Sadly for them, the share price is down 53% in that time. The silver lining is that the stock is up 17% in about a week.
Check out our latest analysis for Blue Star Gold
Blue Star Gold hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. For example, investors may be hoping that Blue Star Gold finds some valuable resources, before it runs out of money.
We think companies that have neither significant revenues nor profits are pretty high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. It certainly is a dangerous place to invest, as Blue Star Gold investors might realise.
Blue Star Gold had liabilities exceeding cash by CA$750,050 when it last reported in February 2019, according to our data. That makes it extremely high risk, in our view. But with the share price diving 22% per year, over 3 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 Blue Star Gold's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. Would it bother you if insiders were selling the stock? I would feel more nervous about the company if that were so. It only takes a moment for you tocheck whether we have identified any insider sales recently.
It's good to see that Blue Star Gold has rewarded shareholders with a total shareholder return of 17% in the last twelve months. Notably the five-year annualised TSR loss of 2.6% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. You could get a better understanding of Blue Star Gold's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
We will like Blue Star Gold better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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. |
Chubb Limited (NYSE:CB): Did It Outperform The Industry?
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Understanding Chubb Limited's (NYSE:CB) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Chubb is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period.
Check out our latest analysis for Chubb
CB's trailing twelve-month earnings (from 31 March 2019) of US$3.9b has increased by 1.8% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.6%, indicating the rate at which CB is growing has slowed down. What could be happening here? Well, let’s take a look at what’s going on with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, Chubb has fallen short of achieving a 20% return on equity (ROE), recording 7.5% instead. However, its return on assets (ROA) of 2.7% exceeds the US Insurance industry of 2.6%, indicating Chubb has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Chubb’s debt level, has increased over the past 3 years from 5.2% to 6.3%.
Chubb's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Chubb gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Chubb to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CB’s future growth? Take a look at ourfree research report of analyst consensusfor CB’s outlook.
2. Financial Health: Are CB’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Why Home Depot (HD) Stands Out From Home Improvement Peers
The Home Depot Inc.HD has been a strong performer, evident from its robust earnings surprise history and the stock momentum. In fact, the company has been consistently doing well, courtesy of strength in Pro and DIY categories. Additionally, its efforts to provide an interconnected shopping experience to customers with localized and innovative products, and improved productivity are aiding its quarterly performance. As a result, Home Depot has emerged as an attractive investment option.Driven by these positives, shares of this Zacks Rank #3 (Hold) company have gained 19.6% year to date, outpacing the industry’s 176% growth. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Home Depot is benefitting from its position as the world’s largest home improvement retailer. It is also reaping the benefits of the gradual improvement in the housing industry. The industry gains strength mainly from the efforts of constituent players to ramp up omni-channel capabilities along with inventory rationalization and elimination of underperforming stock-keeping units. Further, these companies are making investments toward enhancing the supply-chain system as well as delivery and fulfillment facilities, which should bolster growth.
Looking more closely at stocks in the broader industry, we note that Home Depot outpaced its peers. Notably, stocks like Lowe’s Companies LOW and Lumber Liquidators LL have witnessed growth of 7.2% and 17.2%, respectively, in the year-to-date period. Meanwhile, shares of Restoration Hardware RH have declined 4%.Let’s delve deeper and find out reasons that are placing Home Depot ahead of its peers.Factors Aiding Stock GrowthA key driving force for Home Depot’s robust performance is its integrated retail strategy that encompasses digital properties and physical store assets. The company is witnessing improved customer satisfaction scores and conversion rates through investments in interconnected capabilities. In first-quarter fiscal 2019, online traffic remained sturdy and sales increased about 23%. The company remains focused on using its digital platforms in adjacent categories such as HD Home and pool.Further, as a testament to its interconnected retail strategy, the physical stores continue to be relevant to shoppers as nearly 54% of online orders in the United States were picked up in stores. Moreover, the company continues to roll out automated lockers in its stores to make picking up of online orders easier and convenient.Home Depot is also on track with the “One Home Depot” investment plans that were outlined in December 2017. It is benefiting from efforts to provide an interconnected shopping experience to customers, with localized and innovative products, and improved productivity.The company reiterated its targets for fiscal 2020, anticipating total sales of nearly $115-$120 billion. This represents compounded annual sales growth of nearly 4.5-6%. Operating margin is expected to be 14.4-15%. Moreover, the company expects annual average capital spending to be about 2.5% of sales, with return on invested capital of more than 40%, reflecting the impact of the new tax reform. Alongside achieving these targets, it plans to accelerate investments in the next three years to enhance customer experience and shareholder value.Moreover, Home Depot’s Pro segment is key revenue driver, with Pro sales outpacing DIY (do-it-yourself) sales for the past several quarters. The Pro segment is benefiting from the company’s efforts to enhance service capabilities for the Pros. Home Depot has been making investments to bring a more personalized experience for Pro customers through its new B2B website. In the fiscal first quarter, the company added 35,000 customers to its B2B website, bringing the total to 135,000 customers.Based on customer feedback, Home Depot is continuously enhancing its online account management and ordering capabilities for the Pros. It expects to roll out this Pro online experience to more than a million Pros by 2019.Bottom LineThere is no doubt that these efforts helped the company put forward strong quarterly results over the years. Notably, Home Depot delivered positive earnings surprises for over five years. Meanwhile, the company delivered sales beat in nine of the last 11 quarters.These apart, we believe there is still momentum left in the stock as it has a long-term impressive earnings growth rate of 10.7% and a VGM Score of B.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot trades we're targeting>>
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 reportLowe's Companies, Inc. (LOW) : Free Stock Analysis ReportThe Home Depot, Inc. (HD) : Free Stock Analysis ReportLumber Liquidators Holdings, Inc (LL) : Free Stock Analysis ReportRestoration Hardware Holdings Inc. (RH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Amazon's Prime Day will be two days this year
If you're looking to buy a new Echo or any other Amazon product, you may want to hold on to your dollars for a few more weeks. Amazon's annual Prime Day this year will start at midnight PT/3AM ET on July 15th and will last for 48 hours. The e-commerce giantstretchedlast year's Prime Day to 36 hours, but now it's giving Prime members a full two days to shop.
Sure, the event is a massive money-making scheme for Amazon, and you may find yourself purchasing things you don't actually need if you're weak to the call of discounted goods. (Psst...just stay away from Amazon from July 15th to 16th if so.) But it's also a great chance to score a bunch of Amazon products and other goods at knock-down prices. Plus, Amazon typically rolls out assorted deals leading to the event itself -- you may just find that one thing you've been holding off on buying.
Prime Day deals will be available to all members in the US, UK, Spain, Singapore, Netherlands, Mexico, Luxembourg, Japan, Italy, India, Germany, France, China, Canada, Belgium, Austria, Australia and United Arab Emirates. You can ask Alexa for deals during the event or visit thePrime Day portal, where you can also sign up to be a member, for more details. |
Has Chubb Limited (NYSE:CB) Improved Earnings In Recent Times?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today I will take a look at Chubb Limited's ( NYSE:CB ) most recent earnings update (31 March 2019) and compare these latest figures against its performance over the past few years, as well as how the rest of the insurance industry performed. As an investor, I find it beneficial to assess CBs trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. View our latest analysis for Chubb How Did CB's Recent Performance Stack Up Against Its Past? CB's trailing twelve-month earnings (from 31 March 2019) of US$3.9b has increased by 1.8% compared to the previous year. However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.6%, indicating the rate at which CB is growing has slowed down. What could be happening here? Well, lets take a look at whats transpiring with margins and if the whole industry is feeling the heat. NYSE:CB Income Statement, June 25th 2019 In terms of returns from investment, Chubb has fallen short of achieving a 20% return on equity (ROE), recording 7.5% instead. However, its return on assets (ROA) of 2.7% exceeds the US Insurance industry of 2.6%, indicating Chubb has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Chubbs debt level, has increased over the past 3 years from 5.2% to 6.3%. What does this mean? Though Chubb's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a companys track record, but how do we properly assess sustainability? I suggest you continue to research Chubb to get a more holistic view of the stock by looking at: Future Outlook : What are well-informed industry analysts predicting for CBs future growth? Take a look at our free research report of analyst consensus for CBs outlook. Financial Health : Are CBs operations financially sustainable? Balance sheets can be hard to analyze, which is why weve done it for you. Check out our financial health checks here . Other High-Performing Stocks : Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here . NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Disney eyes investment in Indonesia's largest media company - source
June 25 (Reuters) - Disney is in talks to invest in a media subsidiary of Indonesian group Media Nusantara Citra (MNC), an MNC executive told Reuters.
"If the two companies can agree, Disney would invest $200 million for 10 years," the executive said, asking not to be named due to the confidentiality of the talks.
He said a previous deal had been cancelled with Vivendi, that would have seen the French conglomerate spend more than $500 million in acquiring stakes in two affiliates of MNC's PT Global Mediacom, Indonesia's largest media company.
(Reporting by Cindy Silviana Editing by Edmund Blair) |
Nextdoor’s push into real estate: ‘Where there’s money, there’s focus’
Nextdoor, a ZIP code-based social network, is diving into real estate.
The company debuted a new feature called “Your Home” on Tuesday morning, unlocking another step on its path to profitability. The offering, which was reviewed by Yahoo Finance, seems like a natural next step for the business, and is initially being rolled out to the platform’s U.S. homeowners.
Real estate is one of the most talked about topics on Nextdoor, accounting for one in four conversations. The discussions range from disbelief that a home got significantly over the asking price to how changed zoning laws will affect property values, according to Nextdoor Chief Revenue Officer Lauren Nemeth.
The intention is twofold — to meet user demand and to create a new revenue stream.
Nextdoor’s users get a personalized view of the value of their home, local real estate trends and outside factors that would affect their home value. Homeowners can connect with local agents by choosing “talk to an expert.” Unlike Zillow (Z) and Trulia, Nextdoor opted not to build its own estimate tool, and instead is using third-party partnerships likereal estate data portalComeHome.
Perhaps more importantly, real estate agents get increased brand exposure and an opportunity to spark relationships with an engaged community by showcasing their local expertise.
After testing the feature in five pilot markets over the past six weeks, Nemeth said she’s confident this is a program that is meeting the sell-side consumer’s top requests.
“It’s not quite like Zillow because most neighbors aren’t necessarily ready to sell right now. We’re talking about conversations on the consideration level, not the conversion level. And we’re helping real estate agents lay the foundation for those longer term relationships,” said Nemeth.
Though Nextdoor has been around for a decade, new hires like Nemeth and CEO Sarah Friar, who joined 16 and seven months ago, respectively, have attracted newfound attention and support. The company closed itslatest round of fundinglast month, raising $123 million at a valuation of $2.1 billion.
Nextdoor does not share user numbers, but disclosed that over 237,000 neighborhoods across 10 countries — the U.S., UK, Germany, France, Spain, Italy, the Netherlands, Australia, Sweden and Denmark — are on the site.
The company is completely self-aware, and perhaps a bit self-conscious, about its growing community but continued lack of profitability.
“The first seven years was about growing the customer base. But three years ago, we started serious conversations about making some money,” said Nemeth.
Advertising, which is set to double in revenue from a year ago, makes up the bulk of Nextdoor’s business, followed by real estate agents and local businesses that pay to have their pages displayed on the site.
“Where there’s money, there’s focus. We’re rolling out this real estate product but our ad business is also getting a ton of investment from every department,” she said.
Real estate agents can currently create business pages for free on Nextdoor. They can pay a monthly fee to unlock special features, like being a top-surfacing sponsored suggestion, the ability to post directly into the feed and showcase open houses directly to the ZIP codes they’re choosing to target. The price of the sponsorship depends on two factors — the community’s density and the average home value. Monthly fees range between $30 and $150 per agent.
Justin Patterson, an internet analyst at Raymond James, said the new offering “has the potential to be pretty valuable.”
“We’ve been broadly tracking Nextdoor since its inception. There’s a lot of potential within the real estate category as a whole. We are looking for the right product to really drive that connection between consumers and real estate agents,” he said.
Patterson, who has a neutral rating on Zillow, said the lead generation market for real estate has become fairly concentrated, especially after Zillow’s acquisition of Trulia in 2015.
“Nextdoor is an intriguing platform that’s community driven with high user engagement. The local context creates more potential for relevant results and higher conversion. Real estate agents would be intrigued to have a new digital platform for high context and high engagement and less competition,” he added.
On a broader level, the real estate industry has faced its fair share of disruption but is still fundamentally rooted in relationship-building.
Tom McCoy, a product manager for Nextdoor’s new feature, said he consistently hears real estate agents talk about moving their budgets dedicated to digital marketing and lead generation to beers and coffee with prospective clients.
“Nextdoor can be the perfect relationship starter for prospective sellers, where users can find contextual answers to their questions,” he said.
Just as old-school billboards are making a comeback (even among tech giants who use the classic form of advertising as away to troll competitors), real estate agents often stick with tried-and-true methods of analog advertising, particularly referrals.
“Word of mouth is still an incredibly powerful driver particularly in big ticket items, especially real estate. This is certainly a product that realtors will be interested in. Even when you look at the offline nature of real estate, when a realtor sells a home, the sign shows x, y, z’s face and name sitting in front of that home for a couple of weeks. That helps raise awareness and helps people determine who is a competent realtor in that particular area at certain price points,” said Patterson.
In order to join Nextdoor, users have to register their real name and verify their home address via phone or a credit/debit card. If neither of those options work, they have to wait for a postcard to arrive in the mailbox. In aninterview with Yahoo Financelast year, Friar said these barriers are a core feature of the business.
“[The process] is friction-full because we want to make sure that you do actually live in that house and live in that neighborhood. And that's the bond of trust we create with our members. We have a lead that actually founds the neighborhood, so there's a bond of trust about who's driving it. There’s no injection into the feed the way you might find, say, on a Facebook platform. So it’s a very different starting point,” she said.
In fact, Nemeth emphasized that Nextdoor’s ultimate goal is for these online conversations between agents and homeowners to manifest in real life.
“Whether it’s a Starbucks or Home Depot, companies want to have those offline connections and touch points. We saw the same thing as we built our real estate product. Neighbors can get in touch with a potential agent online, but they want to make sure that he comes to their house, they want to go to one of his open houses. We’re positioning the house in a specific community,”
Melody Hahm is a senior writer at Yahoo Finance, covering entrepreneurship, technology and real estate. Follow her on Twitter@melodyhahm. She hostsBreakouts, a monthly interview series for Yahoo Finance featuring up-close and intimate conversations with today’s most innovative business leaders.
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• Etsy CEO: We are the voice of the new, digital Main St.Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit. |
Daniel Aharonoff Comments on Latest Developments in Digital Media Landscape
ENCINO, CA/ ACCESSWIRE / June 25, 2019 /At the turn of the new millennium, "digital transformation" was the mantra chanted across all areas of business, and "disruption" seemed to be the defining buzzword of the 2000s. While innovative technologies have continued to emerge in the past two decades, revolutionary changes in the digital media space have given way to evolutionary developments. As The Richards Groupnotes in a recent report, "Following decades of rapid growth and disruption, the dominant forces shaping the digital landscape have shifted, and we will be entering a period with fewer groundbreaking changes but far greater transformation. Innovations born from this frontier are being transferred into the core patterns of consumer behavior, of how businesses operate, products and services are constructed, and into the practices of brand building." Although the digital media sector is constantly in a state of adjustment, the latest analyses and observations point to several trends expected to define the landscape in the near future, according to industry veteranDaniel Aharonoff.
On the purely technological front, digital media operators are racing to implement artificial intelligence (AI), augmented reality (AR), and advanced analytics to better integrate the online and offline experience and improve content curation. Another recent development is the emergence of voice capabilities as a powerful tool for consumers to engage with content. "Constant innovation and change in the media landscape continue, but I think the speed of adoption of technologies like artificial intelligence will be surprising. Connected intelligence in all its forms will start to dominate the narrative, as well as new opportunities like voice," Kantar CEOEricSalama remarkedin comments on the company's latest predictions for the sector. This trend is closely linked to the growing demand for quality content and the steady shift of consumers to personalized entertainment experiences, notesDaniel Aharonoff. It has led to phenomenal growth in the streaming services market, withDeloitte's2019 Digital Media Trends Surveyestablishing that 2018 became a landmark year as more households reported having subscriptions to at least one video-on-demand service (69%) as opposed to with a traditional pay TV subscription (65%)
Media consumption patterns and preferences are pushing content providers to improve the quality of their products and ensure seamless access across devices. At the start of 2019, thenumberof Internet-connected consumers worldwiderose by 9% year-on-year to reach 4.39 billion, while the figure for unique mobile users climbed by 2% to 5.11 billion. The focus on providing strong support for cross-device viewing has become a priority for digital media operators in 2019,accordingto mobile testing and analytics platform Apptimize. As it notes in a recent report, "More consumers are […] conducting their viewing activity outside the home, which is why 53% consider the ability to access content on two or more wireless devices important. Globally, 46% of viewers have multiple devices on which to view content. As more consumers watch videos on the go, one of the digital media trends emerging this year will be greater accessibility to cross-device video consumption."
Daniel Aharonoffhas been involved in the digital media space for more than 20 years, laying the foundations of his remarkable professional success with his appointment as a strategic consultant to NBC Television. He advised the company on the launch of its VideoSeeker online service and showcased its digital properties on numerous pioneering portals, among them World News, The Tonight Show, and Saturday Night Live. This assignment was followed by the position of acting CTO at FoxKids and Fox Family Channel, whereDaniel Aharonoffconsulted on all technology and digital media initiatives. In 1997, he founded movie content aggregator VideoDome Networks, serving as its CEO until 2004. After a number of senior roles at digital media companies, he joined BroadScaler Consulting in 2009, assuming the CEO responsibilities.
Daniel Aharonoff - CEO of BroadScaler Consulting & Digital Media Expert:http://danielaharonoff.com
Daniel Aharonoff Analyzes Reasons for the Growing Popularity of Streaming Services:https://finance.yahoo.com/news/daniel-aharonoff-analyzes-reasons-growing-004000133.html
Daniel Aharonoff Comments on Latest Developments in Digital Media Landscape:https://www.youtube.com/watch?v=iXEUUqG8g00
Contact Information:
Daniel Aharonoff
daniel.aharonoff@broadscaler.com
http://danielaharonoff.com
SOURCE:Daniel Aharonoff
View source version on accesswire.com:https://www.accesswire.com/549770/Daniel-Aharonoff-Comments-on-Latest-Developments-in-Digital-Media-Landscape |
The Most Undervalued Cities in America – 2019 Edition
Sometimes it feels like a good deal is hard to find, whether you’re buying a car or going out to dinner. That doesn’t change when you are considering where to live. Some towns just give you more bang for your buck, from the quality of life you’ll experience to the living costs you’ll incur. And especially if you’retaking out a mortgageon a house, you’ll want to make sure you’re getting the best value you can. But getting good value from your city doesn’t always have to be difficult to attain. With some patience and information, a smart investment in an undervalued property now could mean that your home becomes worth significantly more and nets you a tidy sum if you decide to sell it. For those who aren’t experts in real estate, it can be difficult to figure out which parts of the country offer the best value. To that end, SmartAsset has once again assembled a list of the most undervalued cities in the country.
We analyzed 189 cities to find the most undervalued cities in America. Our model considers data on unemployment rates, price per square foot, high school graduation rates, percentage of residents with a college degree, crime rate, entertainment establishment density, average days with precipitation, average number of days with bad weather and walk score. For more information on how we put together our final rankings, see the Data and Methodology section below.
This is our fourth annual study on the most undervalued cities in America. See the2018 version of our study here.
Key Findings
• Consistency among undervalued cities.The most undervalued city in America is Pittsburgh for the second year in a row. All told, eight of the cities from last year’s top 10 finish in the top 10 this year, though the order has certainly shuffled.
• Look East.The Eastern United States rules this list. Six of the cities in the top 10 are East Coast cities, with several more close by. Three of the top 10 cities are in Pennsylvania alone. There are only two Midwestern cities and none in the Mountain West or the Pacific Coast in the top 10.
1. Pittsburgh, PA
Pittsburgh, Pennsylvania tops this list for the second straight year. The Steel City has a high school graduation rate of 93%, the second-highest in the top 10 and a top-40 rate in the study overall. Pittsburgh can also boast a population in which 37% of adults have at least a bachelor’s degree, a rate that leads the top 10 of our study and ranks 14thout of all 189 cities in our study. Pittsburgh does not place as well for walk score, where it is the second-least walkable city in the top 10.
Zillow estimates that the price per square foot in Pittsburgh is around $104.50, but our model estimates homes should cost $262.79 per square foot, resulting in a surplus value of about $158. As you and yourfinancial advisorscour the market for undervalued investments, Pittsburgh is an undervalued city that can give you the type of deals you crave.
2. Newark, NJ
Newark, New Jersey is the second city on our list and jumps up one spot from its place last year. Walkability is a great benefit of living in Newark – the walk score for the city is the best in the top 10, and fifth-best in the study overall. Newark does not fare as well for education. Only 18% of its residents have at least a bachelor’s degree, the second-lowest percentage for this metric in the top 10, and its high school graduation rate of just 73% is the lowest in the top 10. Overall, our model suggests that living in Newark yields an estimated $155.34 per-square-foot surplus in value.
3. New Haven, CT
New Haven, Connecticut is third on our list. The actual price of real estate in New Haven is $123.50 per square foot, according to Zillow, compared to a projected price of $275.49 based on our model. That’s a surplus value of almost $152. New Haven also has a high school graduation rate of 89%, third-highest in the top 10 of this study. Furthermore, 29% of the population has at least a bachelor’s degree, the third-highest rate in the top 10 and 42ndout of all 189 cities in our study. New Haven also has 2,243 dining and entertainment establishments per 100,000 residents.
4. Philadelphia, PA
In the fourth spot on our list is Philadelphia, Pennsylvania. Homebuyers in the City of Brotherly Love can purchase homes at around $117.17 per square foot, according to data from Zillow. Based on our overall model, living in Philadelphia is equivalent to living in a city where homes are worth $264.77 per square foot, which means the city is undervalued by more than $147. Philadelphia has the second-highest walkability score in the top 10 and the sixth-highest in the study overall.
5. Baltimore, MD
Baltimore, Maryland is fifth on our list. According to Zillow, Baltimore has an actual home sale value of $106.83 per square foot, which is an undervaluation of approximately $116 compared to $223.07, the value our model projects. It also has approximately 50 extreme temperature days per year, which is the second-lowest rate in the top 10 and a top-40 rate overall. Fans of moderate weather will likely find that appealing. They’ll likely find the city’s top-15 walk score appealing as well.
6. Providence, RI
Coming in sixth place is Providence, Rhode Island. Providence has the third-lowest rate of violent crime in the top 10 of this list, at approximately 533 incidents per 100,000 residents. It has 1,276 dining and entertainment establishments per 100,000 residents, the third-highest rate in the top 10 and 81stin the study overall. It’s important for people to considercost of livingbefore moving somewhere, and according to Zillow data, Providence provides good value: the actual price per square foot for real estate in Providence is $164.33, compared to a projected price of $277.08. That yields an undervaluation of almost $113.
7. Chicago, IL
Chicago, Illinois is the seventh-most undervalued city in America, according to our study. Chicago is tied with Providence, Rhode Island for the third-highest walkability score in the top 10 and seventh-highest overall. The actual price of real estate in Chicago is $171 per square foot, according to Zillow data, but our model estimates that homes should cost $282.84. While Chicago does not score relatively well when it comes to violent crime rate, ranking in the bottom 20 for this metric overall, it does have a high school graduation rate of 85% and 676 dining and entertainment establishments per 100,000 residents.
8. Charleston, SC
Charleston, South Carolina comes in at No. 8 and ranks in the top half of the study for five metrics. There are only 24 extreme temperature days and approximately 65 days with precipitation each year, both of which are the lowest rates in the top 10. The violent crime rate in Charleston is around 283 incidents of violent crime per 100,000 residents each year. Charleston’s walk score is the lowest in the top 10 and its concentration of entertainment and dining establishments is third-lowest in the study overall, but the city’s unemployment rate is 3.2%, a top-50 rate. According to Zillow, the actual cost of real estate is $187.25 per square foot, but our model estimates homes should cost $289.24 per square foot, yielding a surplus value just shy of $102.
9. St. Louis, MO
St. Louis, Missouri, coming in at ninth place, is the westernmost city in our top 10. St. Louis does have the fourth-highest high school graduation rate in the top 10, at 88%, which ranks 91stin the study overall. Furthermore, 28% of the adults in the city’s population have at least a bachelor’s degree, the fourth-highest rate in the top 10 and 61stout of 189 cities overall. The unemployment rate in St. Louis is 3.9%, the second-lowest rate in the top 10.
Zillow data shows that actual cost per square foot in St. Louis is $104.25, while our model estimates that it should cost about $100 more than that, at$205.58. For those looking to get a smart start, it’s also one of thebest cities for new college grads.
10. Allentown, PA
Taking the 10thspot in our list is Allentown, Pennsylvania. Allentown has just 461 incidents of violent crime per 100,000 residents each year, which ranks the second-lowest in the top 10 of this study and 84thin the study overall. Allentown also has 1,042 dining and entertainment establishments per 100,000 residents, the fourth-highest concentration in the top 10 and 96thoverall. Actual cost per square foot in Allentown is $92.17 according to Zillow data, while our model estimates that it should be $190.73, yielding an undervaluation of $98.57.
Data and Methodology
To determine the most undervalued cities in America, we created a model to project home values based on various quality-of-life metrics. We collected data for nine metrics for 189 of the largest cities in the country. Specifically, we compared the cities across the following metrics:
• Home value per square foot.Data is from Zillow and is for 2018.
• Violent crime rate per 100,000 residents.Data comes from the FBI’s Uniform Crime Reporting tool and is for 2017.
• High school graduation rate.Data comes from the U.S. Department of Education EdFacts and is for the 2016 – 2017 school year.
• Number of extreme temperature days.This is the average number of bad weather days a city has in a year. To measure this, we found the average number of days where the temperature exceeds 90 degrees or is under 40 degrees. Data is a 30-year average from 1981 – 2010. Data comes from the National Oceanic and Atmospheric Administration.
• Average number of precipitation days per year.This is the average number of days per year with at least 0.1 inches of precipitation. Data comes from the National Oceanic and Atmospheric Administration and is the 30-year average from 1981-2010.
• Walkability.This is a measure of how walkable a city is. Data comes from walkscore.com
• Percentage of population with a bachelor’s degree or higher.Data comes from the U.S. Census Bureau’s 2017 1-year American Community Survey.
• Unemployment rate.Data comes from the Bureau of Labor Statistics local area unemployment statistics. It is the average of the unemployment rates between January 2018 and February 2019.
• Concentration of dining and entertainment establishments.This is the number of dining and entertainment establishments per 100,000 residents. Data comes from the Census Bureau’s 2017 Zip Codes Business Pattern Survey.
To model home value per square foot, we ran a linear least squares regression with home value per square foot as the dependent variable and using the eight quality of life metrics as explanatory variables. Below is the formula to measure estimated dollars per square foot:
Home value per square foot = 41.71 – (0.05 * violent crime rate) + (1.57 * average high school graduation rate) + (5.56 * dining and entertainment establishments per 100,000 residents) – (2.47 * average number of days of significant precipitation per year) – (1.45 * number of days with extreme high or low temperatures per year) + (3.03 * percentage of the population with a bachelor’s degree or higher) + (5.26 * walk score) – (21.07 * unemployment rate).
The above formula may seem complicated, but it is actually quite easy to read. For example, we see that in our formula walk score is multiplied by 5.26 (this figure is known as the coefficient). This means that if a city’s walk score improves by 1, assuming all other metrics remain constant, the projected home value per square foot would increase by $5.26 per square foot.
We can see how overvalued or undervalued a city is by plugging our data back into our formula. By plugging the collected data back into our model, we get a projection for home value per square foot, which we can then compare to the Zillow data. In order to create our final rankings, we subtracted the estimated value per square foot by the actual Zillow value per square foot. The city with the largest positive difference ranked first while the city with the largest negative difference ranked last.
In order to create our model, we only included quality of life metrics. We left out other potentially explanatory variables like population change and new home change. Because of this, these figures are not meant as a prediction.
Getting the Most Out of Your Money
• Expert advice wherever you are.No matter where you are considering buying property, expert help isn’t hard to find. Connect with a financial advisor using SmartAsset’s freefinancial advisor matching service. You answer a few questions, and we match you with up to three advisors in your area, all fully vetted and free of disclosures. From there you talk to each advisor and make a decision about how best to move forward.
• Mortgage forecast.Getting a mortgage is one of the most important parts of buying a home. See what your mortgage payment might look like with SmartAsset’sfree mortgage calculator.
Questions about our study? Contact press@smartasset.com
Photo credit: ©iStock.com/Sean Pavone
The postThe Most Undervalued Cities in America – 2019 Editionappeared first onSmartAsset Blog.
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100x leverage is coming to Bitfinex
Bitfinex CTO Paolo Ardoino has teased on Twitter that the popular cryptocurrency exchange will soon offer up to 100x leverage. At the time of writing, the maximum leverage on Bitfinex is set at just 3.3x. By seasoned margin trading standards, 3.3x leverage is quite tame, with popular crypto derivative exchanges like BitMEX building their reputation on the ability to trade up to 100x leverage. At this level of leverage, only a 1% move against you would ‘liquidate’ your position – a level of volatility seen most days in the crypto markets. 👀🦁 pic.twitter.com/kBgPsGyOL3 — Paolo Ardoino (@paoloardoino) June 24, 2019 The maximum leverage used when opening a trade typically refers to the leeway you have to lose on a trade before it gets liquidated. For the 3.3x leverage that Bitfinex operates with today, if you used the maximum leverage and opened a margin short or long (without a stop loss), then the trade would typically confiscate all the margin reserved in the trade if the position moves against you by 30%. An opt-in feature According to Ardoino, there will be no change to the current margin trading offering, and trading at the maximum leverage will be an “optional instrument” for Bitfinex traders. He said the offering will be isolated in order to mitigate the risks that are associated with ultra-high leverage trading. Traders are able to prevent additional losses by not applying any additional funds from their balance to their margin trading accounts on the Hong Kong-based exchange. The CTO also confirmed that only verified users would be able to use the new feature. Recent business development recruit Robert Jande Jong (or RJ) also shared a screenshot showing a set of tab options for trading, derivatives, and funding markets as part of the redesigned UI. Story continues finally a bitmex competitor. please DM me with an affiliate link i can use. i'm going to monetize my twitter account and retire, thanks — Udi Wertheimer [#irresponsible] (@udiWertheimer) June 24, 2019 Bitcoin coder Udi Wertheimer commented on the move, saying: “Finally, a BitMEX competitor.” In a nod to the success of the BitMEX referral program, he then asked Bitfinex to “DM me an affiliate link” as he is looking to “monetize my Twitter account and retire”. For more news, guides, and cryptocurrency analysis, click here . The post 100x leverage is coming to Bitfinex appeared first on Coin Rivet . |
Rogers Sugar Inc. (TSE:RSI) Delivered A Better ROE Than Its Industry
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Rogers Sugar Inc. ( TSE:RSI ). Over the last twelve months Rogers Sugar has recorded a ROE of 12% . One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.12 in profit. Check out our latest analysis for Rogers Sugar How Do I Calculate ROE? The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Rogers Sugar: 12% = CA$42m ÷ CA$351m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is the capital paid in by shareholders, plus any retained earnings. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. What Does Return On Equity Signify? ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the yearly profit. The higher the ROE, the more profit the company is making. So, all else being equal, a high ROE is better than a low one . That means it can be interesting to compare the ROE of different companies. Does Rogers Sugar Have A Good ROE? By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As you can see in the graphic below, Rogers Sugar has a higher ROE than the average (9.0%) in the Food industry. Story continues TSX:RSI Past Revenue and Net Income, June 25th 2019 That is a good sign. We think a high ROE, alone, is usually enough to justify further research into a company. For example, I often check if insiders have been buying shares . Why You Should Consider Debt When Looking At ROE Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used. Rogers Sugar's Debt And Its 12% ROE It's worth noting the significant use of debt by Rogers Sugar, leading to its debt to equity ratio of 1.01. while its ROE is respectable, it is worth keeping in mind that there is usually a limit to how much debt a company can use. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. The Key Takeaway Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company . But note: Rogers Sugar may not be the best stock to buy . So take a peek at this free 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 at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Upgraded Broker Ratings Make These 5 Stocks Worth Betting on
Basic fundamental analysis is always not enough to zero in on stocks that have the potential to generate solid returns. In such a situation, expert advice helps investors make the right choice. One could simply follow broker rating upgrades, as they have a deeper insight into stocks, sectors and the overall economy.Moreover, brokers directly communicate with the top management. They also thoroughly study the publicly available documents and attend conference calls.In addition, brokers scrutinize the fundamentals of companies and place them against the current economic backdrop to find out how the stocks will fare as an investment option. Hence, by following broker rating upgrades, one can easily find attractive stocks.But solely depending on broker upgrades is not advisable. One must take into consideration a few other factors before adding a stock to investment portfolio. This way one can ensure steady returns.Selecting the Winning StrategyWe have a screening strategy that will help in your search for potential winners:Broker Rating Upgrades (four weeks) of 1% or more:The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the last four weeks.Current Price greater than 5:The stocks must be trading above $5.Average 20-day Volume greater than 100,000:A large trading volume guarantees that the stock is easily tradable.Zacks Rank equal to #1 or 2:No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven record of success. You can seethe complete list of today’s Zacks #1 Rank stocks here.VGM Scoreof A or B:Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.Here are five of the eight stocks that qualified the screening:Brinker International, Inc.EAT, based in Dallas, TX, owns, develops, operates and franchises casual dining restaurants. Its earnings are expected to grow 12.3% in fiscal 2019. The stock, carrying a Zacks Rank #2, has witnessed 12.5% upward revision in broker ratings over the past four weeks.Based in Charlotte, NC,Sonic Automotive, Inc.SAH operates as an automotive retailer. Its 2019 earnings are expected to improve 17%. The stock, sporting a Zacks Rank #1, has witnessed 20% upward revision in broker ratings over the past four weeks.Molina Healthcare, IncMOH, headquartered in Long Beach, CA, is a multi-state healthcare organization, which provides managed health care services. Its earnings are expected to increase 3% in 2019. The stock, sporting a Zacks Rank #1, has witnessed 7.7% upward revision in broker ratings over the past four weeks.Headquartered in Cincinnati, OH,American Financial Group, Inc.AFG is an insurance holding company, which offers property and casualty insurance products. Its earnings are expected to rise 3.2% in 2019. The stock, carrying a Zacks Rank #2, has witnessed 20% upward revision in broker ratings over the past four weeks.Invitation Homes Inc.INVH is a leading owner and operator of single family rental homes. Earnings for this Dallas, TX-based are expected to surge 443.5% in 2019. The stock, carrying a Zacks Rank #2, has witnessed 11.1% upward revision in broker ratings over the past four weeks.Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.Disclosure: Performance information for Zacks’ portfolios and strategies are available at:https://www.zacks.com/performance
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 reportSonic Automotive, Inc. (SAH) : Free Stock Analysis ReportAmerican Financial Group, Inc. (AFG) : Free Stock Analysis ReportMolina Healthcare, Inc (MOH) : Free Stock Analysis ReportBrinker International, Inc. (EAT) : Free Stock Analysis ReportInvitation Home Inc. (INVH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Should You Be Adding Synopsys (NASDAQ:SNPS) To Your Watchlist Today?
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
In contrast to all that, I prefer to spend time on companies likeSynopsys(NASDAQ:SNPS), which has not only revenues, but also profits. While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
View our latest analysis for Synopsys
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. Who among us would not applaud Synopsys's stratospheric annual EPS growth of 39%, compound, over the last three years? While that sort of growth rate isn't sustainable for long, it certainly catches my attention; like a glint in the eye of my lover.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note Synopsys's EBIT margins were flat over the last year, revenue grew by a solid 10.0% to US$3.2b. 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.
Fortunately, we've got access to analyst forecasts of Synopsys'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting.
We would not expect to see insiders owning a large percentage of a US$19b company like Synopsys. But we are reassured by the fact they have invested in the company. Notably, they have an enormous stake in the company, worth US$125m. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Well, based on the CEO pay, I'd say they are indeed. I discovered that the median total compensation for the CEOs of companies like Synopsys, with market caps over US$8.0b, is about US$11m.
The Synopsys CEO received US$7.4m in compensation for the year ending November 2018. That seems pretty reasonable, especially given its below the median for similar sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense.
Synopsys's earnings per share have taken off like a rocket aimed right at the moon. The cherry on top is that insiders own a bucket-load of shares, and the CEO pay seems really quite reasonable. The sharp increase in earnings could signal good business momentum. Big growth can make big winners, so I do think Synopsys is worth considering carefully. If you think Synopsys might suit your style as an investor, you could go straight to its annual report, or you could first checkour discounted cash flow (DCF) valuation for the company.
Although Synopsys 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. |
Allergan stock surges on news that Abbvie will buy Botox maker in a $63 billion deal
Allergan CEO Brent Saunders looks to have finally found his big buyout partner.
The maker of Botox will be boughtby Abbvie in a cash and stock deal valued at about $63 billion, the companies announced Tuesday. The purchase price represents a 45% premium to Allergan’s closing price on Monday. A source close to the matter told Yahoo Finance the talks between the two companies began 6-7 weeks ago and were initiated by Abbvie.
Allergan’s (AGN) stock popped 25% on the news. Abbvie’s stock crashed 15%, likely on fears it’s overpaying for the struggling Allergan.
The deal brings Allergan’s popular Botox under the same roof as Abbvie’s drugs for cancer and arthritis (namely the blockbuster Humira).
"This deal will help alleviate concerns on our reliance on Humira" said Richard Gonzalez, Abbvie CEO, on a conference call with analysts. Gonzalez is expected to run the combined company through 2023, which is when Humira loses exclusivity in the U.S. Saunders will be one of two Allergan execs joining the company’s board of directors.
“This is well received news this morning,” Connor Browne, portfolio manager at Thornburg Investment Management told Yahoo Finance. Thornburg is long Allergan. Browne says he wouldn’t be surprised to see other bidders come into the mix. Others bidders would have to be big pharma players such as Pfizer that could finance such a large transaction.
Saunders hasn’t hidden his desire the past year to sell all of Allergan or unload certain parts. Allergan has struggled to maintain investor confidence amid pressured results due to increased competition in the market for its Botox product. The company has also had some failures in getting once promising drugs from clinical stages to market.
Allergan’s stock has plunged some 47% over the past two years, according to Yahoo Finance data.
“The sense of urgency to create value is high and the Board is actively and continuously reviewing alternative avenues that could unlock value in the near-term. I assure you that the Board, management team and I recognize the urgency and we will take decisive action to drive value-enhancing opportunities,” Saunders told analysts on a May 7 earnings call.
Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi
Read the latest financial and business news from Yahoo Finance
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How Does TriNet Group, Inc. (NYSE:TNET) Affect Your Portfolio Volatility?
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If you own shares in TriNet Group, Inc. (NYSE:TNET) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks are more sensitive to general market forces than others. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
View our latest analysis for TriNet Group
Zooming in on TriNet Group, we see it has a five year beta of 1.95. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. Based on this history, investors should be aware that TriNet Group are likely to rise strongly in times of greed, but sell off in times of fear. Beta is worth considering, but it's also important to consider whether TriNet Group is growing earnings and revenue. You can take a look for yourself, below.
TriNet Group is a reasonably big company, with a market capitalisation of US$4.8b. Most companies this size are actively traded with decent volumes of shares changing hands each day. It has a relatively high beta, suggesting it may be somehow leveraged to macroeconomic conditions. For example, it might be a high growth stock with lots of investors trading the shares. It's notable when large companies to have high beta values, because it usually takes substantial capital flows to move their share prices.
Since TriNet Group tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. In order to fully understand whether TNET is a good investment for you, we also need to consider important company-specific fundamentals such as TriNet Group’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for TNET’s future growth? Take a look at ourfree research report of analyst consensusfor TNET’s outlook.
2. Past Track Record: Has TNET 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 TNET's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how TNET 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. |
Wimbledon wildcard - Heather Watson profile: A closer look at the former British No 1
Heather Watson has had to rely on a wildcard to make the Wimbledon main draw this year, having not progressed beyond the first round of a Grand Slam this season. The 27-year-old, a former British No 1, will be hoping to replicate multiple past strong performances at The Championships. The Briton has struggled to find her best form in 2019, losing in the second qualifying round at Roland Garros and suffering a comprehensive 6-1 6-2 defeat to 31st seed Petra Martic in the first round of the Australian Open. She remains in Team GBs Fed Cup squad. Watson, currently ranked 122nd in the world, has enjoyed reasonable preparation for the grass court season. She was eliminated by 4th seed Maria Sakkari in Nottingham, but progressed to the quarter-final stage at Surbiton. There, she triumphed over both Evgeniya Rodina and Madison Brengle, both ranked higher than her, getting past both the Russian and American in straight sets. This bodes well for her chances of at least replicating progress to the round of 32 at Wimbledon, a feat she has achieved on three separate occasions. Best Wimbledon finish: Heather Watson has thrice reached the round of 32 stage at SW19. The most recent came in 2017, where her run was ended by a three-set defeat by Victoria Azarenka of Belarus. Serena Williams had previously thwarted Watson at the same stage in 2015, again requiring three sets to get past the British player. Watson had first advanced this deep into the competition in 2012, when Agnieszka Radwanska dispatched of her 6-0 6-2. In the mixed doubles, she is a Wimbledon champion. She won in 2016 with Finnish partner Henri Kontinen, before following this up with another final in 2017. She was thwarted on the latter occasion by Jamie Murray and Martina Hingis. Grand Slam best: Watson has never bettered the round of 32 in any Grand Slam, but did match that achievement at the Australian Open in 2013. She suffered a straight sets loss to Radwanska of Poland, just as she had done at Wimbledon the previous year. Story continues Highest ranking: Watson was ranked 38 in the world in early 2015. She has since fallen steadily, but has not had a year in which she has failed to feature in the top 100 since 2010. Her high this year is 93, achieved in January. Heather Watson in action (Getty Images) Current Ranking: 122 Age: 27 How did she perform last year? Watson was unable to replicate her best Wimbledon form in either the singles or the doubles. Belgiums Flipkens inflicted a straight-sets defeat on her in the first round of the singles, while in the doubles she could only reach the round of 16 with long-term partner Henri Kontinen. |
At US$50.78, Is It Time To Put Lumentum Holdings Inc. (NASDAQ:LITE) On Your Watch List?
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Lumentum Holdings Inc. (NASDAQ:LITE), which is in the communications business, and is based in United States, received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Lumentum Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for Lumentum Holdings
Great news for investors – Lumentum Holdings is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $100.27, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Lumentum Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Lumentum Holdings’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
Are you a shareholder?Since LITE is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on LITE for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LITE. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Lumentum Holdings. You can find everything you need to know about Lumentum Holdings inthe latest infographic research report. If you are no longer interested in Lumentum Holdings, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Daily Biotech Pulse: Genfit NASH Drug In China, Conatus Explores Sale, Gilead Stitches Up Immuno-Oncology Partnership
Here's a roundup of top developments in the biotech space over the last 24 hours.
Scaling The Peaks
(Biotech stocks hitting 52-week highs on June 24)
• Global Blood Therapeutics Inc(NASDAQ:GBT)
• Krystal Biotech Inc(NASDAQ:KRYS)(reportedpositive Phase 2 results for its lead gene therapy candidate to treat an incurable skin blistering condition and securing of regenerative advanced therapy designation for it from the FDA)
• strong>Zynex Inc. (NASDAQ:ZYXI)
• Prevail Therapeutics Inc(NASDAQ:PRVL)(IPOed June 20)
Down In The Dumps
(Biotech stocks hitting 52-week lows on June 24)
• Abeona Therapeutics Inc(NASDAQ:ABEO)
• AMAG Pharmaceuticals, Inc.(NASDAQ:AMAG)(declined despite FDA approval for its drug to boost sexual drive in women)
• Amneal Pharmaceuticals Inc(NYSE:AMRX)
• AnaptysBio Inc(NASDAQ:ANAB)
• Assembly Biosciences Inc(NASDAQ:ASMB)
• BENITEC BIOPHAR/S ADR(NASDAQ:BNTC)
• Endo International PLC(NASDAQ:ENDP)
• Hookipa Pharma Inc(NASDAQ:HOOK)
• HTG Molecular Diagnostics Inc(NASDAQ:HTGM)
• Kezar Life Sciences Inc(NASDAQ:KZR)
• MEREO BIOPHARMA/ADR(NASDAQ:MREO)
• Myriad Genetics, Inc.(NASDAQ:MYGN)
• Neos Therapeutics Inc(NASDAQ:NEOS)
• Rhythm Pharmaceuticals Inc(NASDAQ:RYTM)
• Spring Bank Pharmaceuticals Inc(NASDAQ:SBPH)
• Surface Oncology Inc(NASDAQ:SURF)
• Tetraphase Pharmaceuticals Inc(NASDAQ:TTPH)
• Tonix Pharmaceuticals Holding Corp(NASDAQ:TNXP)
• Trillium Therapeutics Inc(NASDAQ:TRIL)
• United Therapeutics Corporation(NASDAQ:UTHR)
• Urogen Pharma Ltd(NASDAQ:URGN)
Stocks In Focus Genfit Licenses Rights To NASH Drug In China For Up To $228M
GENFIT S A/ADR(NASDAQ:GNFT) announced a licensing and collaboration agreement with Terns Pharma under which the former licensed the right to develop and commercialize elafibranor, its proprietary compound for non-alcoholic steatohepatitis and primary biliary cholangitis, to the latter in Greater China. The agreement provides for Genfit receiving an upfront payment of $35 million and the eligibility to receive up to $193 million in potential clinical, regulatory and commercial milestone payments.
The stock rose 8.06% to $21.85 in after-hours trading.
Conatus to Explore Strategic Options
Conatus Pharmaceuticals Inc(NASDAQ:CNAT) has engaged Oppenheimer as its financial advisor to assist in the exploration and evaluation of strategic alternatives to enhance shareholder value. Meanwhile, the company also announced a restructuring plan to extend its resources, including a 40 percent reduction in workforce and pulling the plug on its inflammasome disease candidate CTS-2090.
The stock slumped 59.87% to 37 cents in after-hours trading.
Nabriva's Antibiotic For Pneumonia Accepted For Review In Europe
Nabriva Therapeutics PLC – ADR(NASDAQ:NBRV) said the European Medicines Agency has determined that its Marketing Authorization Application for the intravenous and oral formulation of lefamulin, a semic-synthetic pleuromutilin antibiotic for the treatment of community-acquired pneumonia in adults 18 years and older is valid, which confirms that the submission is sufficiently complete to begin a formal review process. An opinion from the EMA's Medicinal Products for Human Use is expected in the next 12 to 15 months.
Thestockrose 2.38% to $2.15 in after-hours trading.
See Also:Minerva Spikes Higher After Novel Insomnia Drug Aces Mid-Stage Trial
Dermira's Licensee Exercises Option For European Rights To Eczema Drug
Dermira Inc(NASDAQ:DERM) said Almirall has exercised its option to license rights to develop and commercialize lebrikizumab for the treatment of atopic dermatitis and certain other indications in Europe. The companies had entered into an option and license agreement in February.
Because of Almirall's decision to exercise the option, it will pay Dermira $50 million, and an initiation of certain late-stage studies will make the latter eligible for receiving a further $30 million in milestone payments.
Gilead To Partner With Carna For Immuno-Oncology Drugs
Gilead Sciences, Inc.(NASDAQ:GILD) and Carna Bioscienses announced a R&D collaboration agreement to develop and commercialize small molecule compounds in immuno-oncology and to access Carna's proprietary lipid kinase drug discovery platform.
Gilead has agreed to pay an upfront payment of $20 million and additional milestone payments up to $450 million. It has also agreed to pay Carna royalties on future net sales.
Jaguar Regains Compliance With Nasdaq Listing Standards
Jaguar Health Inc(NASDAQ:JAGX) has received a letter from the Nasdaq June 21 confirming the bid price deficiency of Jaguar has been rectified and that the company is in compliance with all applicable listing standards.
The stock rose 9.65% to $5 in Tuesday's pre-market trading.
Common Stock Offerings
Gamida Cell Ltd(NASDAQ:GMDA) announced the launch of a proposed follow-on public offering of about $30 million worth of its shares.
View more earnings on IBB
The stock fell 9.03 percent to $6.55 in after-hours trading.
ArQule, Inc.(NASDAQ:ARQL) scommenced an underwritten public offering, subject to market and other conditions, of its common stock. All the shares are to be offered by the company.
The stock slipped 2.10% to $9.80 in after-hours trading.
Krystal Biotech priced its previously-announced underwritten public offering of 2.5 million shares at $40 per shares, which could generate gross proceeds of about $100 million.
The Medicines Company(NASDAQ:MDCO) launched a public offering of $150 million worth of its common stock. The company said it intends to use the net proceeds for the development of inclisiran and for general corporate purposes.
The stock moved down 1.33% to $34.89 in after-hours trading.
CymaBay
CymaBay Therapeutics Inc(NASDAQ:CBAY) found some strength, reportedly on initiation of the shares by Stifel at a Buy with a $14 price target, according toSeeking Alpha.
The stock rose 2.95% to $6.97 in after-hours trading.
PDUFA Dates
Acer Therapeutics Inc(NASDAQ:ACER) awaits FDA verdict on its NDA for Edsivo, which is being evaluated for the treatment of vascular Ehlers-Danlos syndrome, or vEDS, in patients with a confirmed type III collagen (COL3A1) mutation.
Clinical Trial Readout
Aldeyra Therapeutics Inc(NASDAQ:ALDX) is due to release Phase 3 data for ADX-102 in non-infectious anterior uveitis.
Arcus Biosciences Inc(NYSE:RCUS) will present Phase 1 initial safety, pharmacokinetic and pharmacodynamic data and biomarker analysis from the dose escalation portion of its Phase 1 study of AN928 in combination with mFOLFOX in colorectal cancer.
Obseva SA(NASDAQ:OBSV) is set to present Phase 2b data for OBE2109 in endometriosis.
Earnings
AIT Therapeutics Inc(NASDAQ:AITB) (after the close)
See more from Benzinga
• The 5 Most Expensive Drugs In US: What You Should Know
• The Week Ahead In Biotech: Conferences, PDUFA Dates, Clinical Trial Readouts And IPOs
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Marriott Expands Presence in Jamaica, Eyes RevPAR Growth
Marriott International, Inc. MAR ) announced that its lifestyle hotel brand, AC Hotels by Marriott, debuted AC Hotel Kingston, Jamaica. The 219-roomed hotel features the company’s luxury offerings. By opening a hotel in Jamaica, this Marriott brand is trying to fortify its international presence. It is also the hotelier’s strategy of combatting competition from the likes of Hyatt H and Hilton HLT. Backed by solid expansion strategies and a strong brand presence, shares of Marriott have gained 5.9% over the past year against the industry’s decline of 2.3%. Expansion — Major Positive Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. Moving ahead, the company plans to significantly expand its global portfolio of luxury and lifestyle brands. For 2019, Marriott anticipates 5.5% net room growth, which is likely to continue building economics, scale and consumer preference for its brands. At the end of first-quarter 2019, the company’s development pipeline totaled nearly 475,000 rooms. The hotel company is also trying to expand its footprint outside the United States, especially in Asia, Latin America, the Middle East and Africa. Meanwhile, Marriott’s European pipeline has grown consistently in the recent past and is expected to continue, going forward. In fact, the company aims to expand its lead in the luxury and full-service segments in the region, have the largest portfolio in the upscale division and also win over millennials in the affordable lifestyle group by 2020. Our Take We believe that the addition of AC Hotel Kingston, Jamaica would help Marriott to strengthen overall revenues. It will also help the company witness greater revenue per available room (RevPAR) for its worldwide comparable system-wide properties. In the first quarter of 2019, RevPAR for worldwide comparable system-wide properties increased 1.1% in constant dollars (down 0.3% in actual dollars), driven by a 1.5% improvement in average daily rate (ADR). Story continues Comparable system-wide RevPAR in North America grew 0.8% in constant dollars (up 0.6% in actual dollars), owing to 2% gain in ADR. On a constant-dollar basis, international comparable system-wide RevPAR rose 1.9% (down 2.5% in actual dollars). Zacks Rank & Stock to Consider Marriott currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the hotel space is Choice Hotels CHH, currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Choice Hotel’s long-term EPS is projected to grow 9.9%. Looking for Stocks with Skyrocketing Upside? Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>> 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 Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report Marriott International (MAR) : Free Stock Analysis Report Hyatt Hotels Corporation (H) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Prince Charles spent the most out of the Royal Family on travel for the last financial year
The Prince of Wales and the Duchess of Cornwall in Cuba. [Photo: PA] The Prince of Wales spent more than £1.3m on travel for the last financial year, topping the Royal Family’s budget. His globe-trotting accounted for more than half of the £2.7m spent by the firm for 2018/19, the report reveals. Prince Charles and the Duchess of Cornwall’s most expensive trip was their royal tour of the Caribbean and Cuba in March, which racked up to £416,576. The couple also travelled to Africa in November 2018 at a cost of £216,000 and £159,000 for their official visit to Greece and France in May. READ MORE: Taxpayers' 'outrage' over £2.4m cost of Harry and Meghan's home renovations Charles, 70, also used the Royal Train the most, which works out at around £20,000 per journey. Royal finance expert David McClure told Yahoo UK earlier this year: “The Royal Train is very expensive, it costs almost a £1 million a year to run and last year was probably only used about a dozen times, so more than likely, it is nearing the end of its life and when the Queen goes, the Royal Train will probably go too.” The figures for royal travel, included in the annual royal accounts, do not give details for journeys costing less than £15,000 - meaning the true value is higher. The royals also took 204 journeys by helicopter costing £688,845 in total and 43 charter flights at a cost of £369,778. Clarence House released a montage of Charles and Camilla’s year, which saw them notch up 638 official engagements, travelling to 82 UK towns and 14 countries. The overall cost of travel by members of the royal family in 2018-19 was down £100,000 to £4.6 million. |
The Surprising Pot Stock Forecast to Lead the Industry in 2020 Sales
For years now, much of Wall Street has believed that legal marijuana is the greatest investment opportunity since sliced bread. Investors are fully aware of the massive black market and understand that ongoing legalizations around the world could move tens of billions of dollars into legal channels in the years to come. That could allow cannabis stocks -- and investors -- to see plenty of green.
But the nascent legal marijuana industry has also been hit with a flurry of early stage problems. Alarge backlog of licensing applicationswith Health Canada has significantly constrained how much pot growers can producer or harvest. Likewise, a shortage of compliant packaging solutions has left unfinished cannabis on the sidelines waiting to be processed.
Image source: Getty Images.
We've also witnessed supply and tax issues rear their head in the United States. California's first year of recreational pot salescame in well below expectationsin terms of sales and tax revenue. A slower-than-expected approval of dispensary licenses by the state, grower oversupply, and high tax rates that have led to the persistence of the black market have all played a role in the Golden State delivering disappointing cannabis revenue.
As a result, while sales for publicly traded pot stocks are still expected to soar in 2020, revenue estimates are a lot tamer now than they were, say, six months ago. In fact, of the 60 pot stocks I track on a regular basis, just six are expected to generate in excess of $500 million in sales in fiscal 2020.
Five of the six names are companies you'd likely expect to find as top revenue producers. For example, thethree largest marijuana growersby peak annual output --Aurora Cannabis(NYSE: ACB),Canopy Growth(NYSE: CGC), andAphria(NYSE: APHA)-- rank fourth, second, and third, respectively, in fiscal 2020 sales, based on Wall Street's consensus. Aurora Cannabis should be yielding 625,000 kilos on an annual run-rate basis by the end of fiscal 2020 (June 30, 2020), with Canopy Growth likely pushing north of 500,000 kilos yearly, and Aphria hitting its max annual output of 255,000 kilos by the midpoint of 2020.
Canopy Growth is expected to generate close to $580 million in 2020 sales, although the companywill still be losing quite a bit of moneyas it expands into overseas markets and builds out its infrastructure. Aphria, with a consensus estimate of $552 million in revenue, should be profitable, according to Wall Street. The big question mark is when the company's flagship Aphria Diamond facility will receive its cultivation license from Health Canada. And then there's Aurora Cannabis, which despite $552 million in expected sales, may wind up losing money as it also expands its infrastructure.
Image source: GW Pharmaceuticals.
Cannabinoid drug developerGW Pharmaceuticals(NASDAQ: GWPH)is the consensus No. 6 pot stock, with expected sales of $511 million. GW Pharmaceuticals launched Epidiolex, the first cannabis-derived and FDA-approved drug, in early November, and looks to have a clear runway to sales in one of the two indications it was approved. In clinical trials, GW Pharmaceuticals' lead drug reduced seizure frequency from baseline by 30% to 40%, making it easy for the FDA togive this groundbreaking medicine the green light.
U.S. multistate dispensary operatorAcreage Holdings(NASDAQOTH: ACRGF)also makes the list at No. 5, with 2020 sales forecast at $542 million. Acreage, which has retail, processing, or manufacturing licenses in 20 states (on a pro forma basis), has agreed to be acquired by Canopy Growthon a contingent-right basis. The condition of Acreage's acquisition is that the U.S. government legalizes marijuana at the federal level.
None of the five aforementioned marijuana stocks with projected sales of at least $500 million in 2020 should come as a surprise to investors. But what may indeed shock you is learning which company Wall Street's consensus sales estimates currently peg as the leading revenue producer in fiscal 2020.
Drumroll, please:Cresco Labs(NASDAQOTH: CRLBF).
Not only is Cresco Labs tops in 2020 sales, according to forecasts, but it's not even close. Whereas No. 2 Canopy Growth and No. 6 GW Pharmaceuticals will generate $580 million and $511 million in sales, respectively, Cresco is in another zip code, with $738 million in projected 2020 revenue. And don't think for a moment this figure is the result of a rogue analyst going off the rails. The four locked-in sales estimates for 2020 range from $670 million to $775 million.
Image source: Getty Images.
So why is Cresco Labs and not, say, Canopy Growth at the top of the sales pecking order? A big reason could be Cresco's two-pronged attack.
First, Cresco is in the process of acquiringOrigin House(NASDAQOTH: ORHOF)for what was an$823 million all-stock deal when first announcedat the beginning of April. Origin House holds the distinction of being one of the very few cannabis distribution license holders in California. Being in this niche position will allow Cresco to benefit from distribution revenue in the biggest pot market in the U.S., as well as push its in-house-branded products into more than 500 California dispensaries. The deal has already been approved by Origin House shareholders and now awaits the OK from the U.S. Justice Department.
Second, on top of benefiting from Origin House's key distribution position in California, Cresco Labs holds 56 retail licenses and 23 grow farm licenses spanning 11 states. As a multistate dispensary operator insome of the United States' largest markets, it should see a significant uptick in sales as it aggressively pushes to open new retail stores.
It remains to be seen if Wall Street's forecasts prove accurate, but for the time being, it's Cresco Labs -- not Canopy, Aurora, or Aphria -- that's the king of the cannabis hill for 2020.
More From The Motley Fool
• Beginner's Guide to Investing in Marijuana Stocks
• Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
• Your 2019 Guide to Investing in Marijuana Stocks
Sean Williamshas no position in any of the stocks mentioned. The Motley Fool recommends Origin House. The Motley Fool has adisclosure policy. |
Southwest Airlines Tweaks Its Q2 Forecast
In recent weeks, domestic-focused airlinesJetBlue Airways(NASDAQ: JBLU)andAlaska Air(NYSE: ALK)haveraised their unit revenue forecastsfor the second quarter, boosted by a favorable supply-demand balance.
Last week,Southwest Airlines(NYSE: LUV)followed suit, telling investors that revenue per available seat mile (RASM) will come in near the upper end of its initial guidance range this quarter. However, this strong unit revenue growth is being driven by theBoeing(NYSE: BA)737 MAX grounding, which has constrained Southwest's capacity. As a result, the carrier is facing a huge jump in unit costs that will put pressure on its profitability.
Two months ago, Southwest Airlines projected that RASM wouldincrease 5.5% to 7.5%in the second quarter. That was by far the strongest unit revenue forecast offered by any of the major airlines.
Last Wednesday, Southwest said that it now expects RASM to rise 6.5% to 7.5%. The increase to its guidance range wasn't very surprising, given that JetBlue and Alaska Air are also on track to outperform the midpoints of their initial forecasts. Additionally, Southwest further reduced its capacity outlook in the recent investor update, saying that capacity is likely to fall about 3.5% year over year this quarter, compared to its previous forecast of a 2% to 3% decline. The airline attributed the change to a higher-than-expected number of flight cancellations.
The 737 MAX grounding has forced Southwest to reduce its capacity. Image source: Southwest Airlines.
While lower capacity tends to boost unit revenue, it also drives up unit costs. Back in April, Southwest Airlines predicted a shockingly large 10.5% to 12.5% jump in adjusted nonfuel unit costs in the second quarter. Due to its lower-than-planned capacity this quarter, the airline now expects adjusted nonfuel unit costs to increase 11.5% to 12.5%.
To add insult to injury, Southwest's fuel efficiency will deteriorate this quarter, because its most fuel-efficient planes are currently grounded. The net result is that higher costs will almost fully offset Southwest Airlines' RASM growth, keeping the company's profitability roughly flat year over year in Q2.
Unfortunately, while the 737 MAX is supposedly close to being recertified, progress toward getting the troubled jet back in service has been painfully slow. It could be weeks -- or longer -- before a final order recertifying the type for service comes through. After that, it could take a month or more to perform required maintenance, install any necessary upgrades, and retrain pilots.
That's why Southwest Airlines recently extended its 737 MAX flight cancellations from Aug. 5 through Sept. 2. With the latest schedule change, Southwest will be missing its Boeing 737 MAX fleet for the entirety of the peak summer travel season.
As a result, investors should expect the third quarter to look similar to the second quarter for Southwest. Due to capacity constraints, the carrier is likely to post strong unit revenue growth, offset by a big uptick in adjusted nonfuel unit costs.
As the Boeing 737 MAX grounding wears on, Southwest's capacity is diverging further and further from its plans. The carrier has 34 grounded 737 MAX 8s, and prior to the grounding, it was scheduled to expand its 737 MAX fleet to 75 jets by year-end -- nearly 10% of its entire fleet.
For Southwest Airlines, the 737 MAX grounding is hurting earnings modestly, as the increase in unit costs from having so many planes out of service tends to outweigh the RASM benefit of cutting capacity. However, Southwest's woes spell opportunity for the carrier's rivals.
It probably isn't a coincidence that JetBlue Airways and Alaska Airlines have both raised their RASM outlooks this quarter. While neither carrier has a ton of route overlap with Southwest, they both benefit from the limited availability of cheap Southwest Airlines one-stop fares. This means they should have ample pricing power during the summer peak season, leading to strong unit revenue growth. Meanwhile, both carriers are insulated from the cost impacts of the 737 MAX grounding and have favorable cost outlooks for the third quarter and beyond.
Of course, Southwest Airlines will eventually get its 737 MAX fleet back in the air, perhaps as early as September. When that happens, rivals like JetBlue and Alaska will again face a tougher pricing environment. But until then, they should be able to earn bumper profits.
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Adam Levine-Weinbergowns shares of Alaska Air Group, JetBlue Airways, and Southwest Airlines. The Motley Fool owns shares of and recommends Southwest Airlines. The Motley Fool recommends Alaska Air Group and JetBlue Airways. The Motley Fool has adisclosure policy. |
Here's Why I Think Lloyds Banking Group (LON:LLOY) Is An Interesting Stock
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It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.'
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeLloyds Banking Group(LON:LLOY). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
See our latest analysis for Lloyds Banking Group
In the last three years Lloyds Banking Group's earnings per share took off like a rocket; fast, and from a low base. So the actual rate of growth doesn't tell us much. Thus, it makes sense to focus on more recent growth rates, instead. Over twelve months, Lloyds Banking Group increased its EPS from UK£0.053 to UK£0.056. That's a modest gain of 5.4%.
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). Not all of Lloyds Banking Group's revenue this year is revenuefrom operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. Lloyds Banking Group reported flat revenue and EBIT margins over the last year. That's not bad, but it doesn't point to ongoing future growth, either.
In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart.
Fortunately, we've got access to analyst forecasts of Lloyds Banking Group'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting.
Since Lloyds Banking Group has a market capitalization of UK£40b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. With a whopping UK£51m worth of shares as a group, insiders have plenty riding on the company's success. This should keep them focused on creating long term value for shareholders.
As I already mentioned, Lloyds Banking Group is a growing business, which is what I like to see. Just as polish makes silverware pop, the high level of insider ownership enhances my enthusiasm for this growth. The combination sparks joy for me, so I'd consider keeping the company on a watchlist. Now, you could try to make up your mind on Lloyds Banking Group by focusing on just these factors,oryou couldalsoconsider how its price-to-earnings ratio compares to other companies in its industry.
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Facebook's Libra: FCA, Treasury, Bank of England scrutinising project
A visual representation of a digital cryptocurrency coin sits on display in front of Libra and Facebook. Photo: Chesnot/Getty Images The Bank of England, the UK Treasury, and the UK’s top financial regulator are working together to scrutinise Facebook’s ( FB ) new cryptocurrency project Libra. “We are engaged with the Treasury and the Bank of England on it,” Andrew Bailey, the CEO of the UK’s Financial Conduct Authority (FCA) told MPs on Tuesday. “We’re working together on it.” Facebook last week announced the launch of a new cryptocurrency project, Libra . The new “global” currency, which is backed by over 25 other top tech companies, will be launched next year and aims to help the estimated 1.7 billion unbanked people in the world access financial services. Libra’s launch met an immediate backlash from global politicians and regulators who fear the new project could hand too much power to private companies, disrupt monetary and financial policy, and enable money laundering. READ MORE: Why politicians and regulators are already going after Facebook's Libra “It has the potential to be extremely significant,” Bailey said on Tuesday. “It does raise very big issues for the public policy world. “At the moment, I would have to say there is insufficient detail on it to really understand what the business model is. “We will have to engage very heavily, but as I say we’re gearing up with the Treasury and the Bank of England.” The Treasury has yet to comment on Libra, but Bank of England Governor Mark Carney last week appeared to give the project his cautious backing when he said it could “substantially improve financial inclusion and dramatically lower the cost of domestic and cross border payments.” However, Carney said there would be significant regulatory scrutiny of the project and “the terms of engagement for innovations such as Libra must be adopted in advance of any launch.” Bailey was giving evidence to UK MPs on the Treasury Select Committee about the work of the FCA. The FCA is the UK’s top financial watchdog, responsible for policing the UK’s financial system. Story continues Bailey said the FCA has “already engaged with Facebook and there'll be many more engagements.” However, he said the watchdog was waiting to see how responsibility for the project would divide between Facebook and the Libra Association, the new Geneva-based non-profit set up to govern the Libra cryptocurrency and the blockchain it will operate on. Read more on Libra: Facebook hasn't told us: why launch a cryptocurrency? Facebook's Libra could spark 'mass adoption' of crypto Why politicians and regulators are already going after Facebook's Libra Bank of England's Carney gives Facebook's Libra cautious backing |
Here’s what graduates regret the most about college
Some people graduate college with no regrets, but two-thirds of college graduates aren’t so lucky. For them regret starts to seep in once they’re in the workforce and can last for many years after that. The top regret for college graduates across multiple generations is the amount of student loan debt they take on, according to new research byPayScale.
“College is entrenched as sort of the cultural ideal in our country and everyone wants to do that, thinks it’s the right thing to do, but this is now…at odds with what the practical realities are of landing a job and making enough money,” says PayScale’s director of content marketing Wendy Brown.
Millennials are twice as likely as baby boomers to regret college because of the cost of student loans, 29% vs. 13%. Stagnant pay is another major reason why student debt is the number one regret, according to Brown. In the first quarter of 2019, U.S. workers saw negative real wage growth adjusted for inflation relative to the same time period last year, down 0.8%according to PayScale data.
The other two major regrets of college graduates are their area of study (12.2%) and poor networking (11.2%). Nearly 34% of respondents said they had no regrets. (PayScale surveyed 248,000 people for the report.)
The topthree majorswith the most regrets are health sciences (37.7%), art (32.1%), and social sciences (30.4%). Health sciences majors often go to medical school to become doctors, Brown says, and “they end up having years of school and years of debt, so our thinking is that that is what added to that number of being a big regret. More loans over a longer period of time.”
According to PayScale, the average starting salary for a job in the field of social sciences is $52,000.
Other regrets include majoring in the humanities (25.7%), which has a starting salary of $50,300; and physical and life sciences (24.8%), which has an average starting salary of $55,600.
Indeed, data from theFederal Reserve Bank of New York showsthat those whomajored in artsand social services had among the lowest median wages in their early careers.
The top three majors with the least regrets are engineering (42.2%), education (37.3%), and computer science (34.9%), not surprising given the labor market’s shift to technology-based work. Starting salaries for engineering majors and computer science majors are both more than are $69,000, according to PayScale. (According to a2018 study by Bankrate, themost valuable college major, based on annual salary, unemployment, and how high a graduate could go without grad school – was actuarial science.)
PayScale found that despite low pay, most education majors don’t regret their field of study. “They’re fulfilled in their jobs based on what we’re seeing with the data, despite the fact that they had student loans,” says Brown.
Withnearly half of borrowersstill taking on massive amounts of debt without fully understanding the financial burden that awaits them after graduation, it's no wonder that student loan debt ranks as the top regret for graduates.
The country is now facing a $1.5 trillion student loan crisis as outstanding balances have grown by more than 500% since 2003, according to data from the Federal Reserve Bank of New York. This huge debt burden is also a reason why someDemocratic candidates are proposingvariousstudent-debt forgiveness plans.
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Should You Be Adding Lloyds Banking Group (LON:LLOY) To Your Watchlist Today?
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It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
In contrast to all that, I prefer to spend time on companies likeLloyds Banking Group(LON:LLOY), 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 Lloyds Banking Group
Over the last three years, Lloyds Banking Group has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. As a result, I'll zoom in on growth over the last year, instead. Lloyds Banking Group has grown its trailing twelve month EPS from UK£0.053 to UK£0.056, in the last year. That's a modest gain of 5.4%.
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). Not all of Lloyds Banking Group's revenue this year is revenuefrom operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. It seems Lloyds Banking Group is pretty stable, since revenue and EBIT margins are pretty flat year on year. That's not a major concern but nor does it point to the long term growth we like to see.
You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.
Fortunately, we've got access to analyst forecasts of Lloyds Banking Group'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting.
We would not expect to see insiders owning a large percentage of a UK£40b company like Lloyds Banking Group. But we are reassured by the fact they have invested in the company. Given insiders own a small fortune of shares, currently valued at UK£51m, they have plenty of motivation to push the business to succeed. That's certainly enough to make me think that management will be very focussed on long term growth.
As I already mentioned, Lloyds Banking Group is a growing business, which is what I like to see. If that's not enough on its own, there is also the rather notable levels of insider ownership. The combination sparks joy for me, so I'd consider keeping the company on a watchlist. Of course, just because Lloyds Banking Group 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 Lloyds Banking Group 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. |
Google to Invest EUR 1B to Expand Data Center in Netherlands
Alphabet Inc.’s GOOGL division, Google has been gradually expanding presence in Europe, in an effort to capitalize on the availability of vast natural and renewable resources in the northern part of the continent.
In sync with the company’s expansion strategy, it plans to expand its data center infrastructure in the Netherlands. In addition, the company plans to build a new facility in Middenmeer.
The search giant will invest EUR 1 billion ($1.1 billion) for the expansion of its data center, which is likely to be an energy efficient one, in the Netherlands.
We believe the growing number of data centers will add efficiency to Google’s business as these will provide better storage for its vast search data, emails, photos and most importantly, cloud data with advanced security.
Data Center Expansion Continues
The need for datacenter expansion is on the rise due to growing demand for cloud computing and the ever-increasing needs of Internet users.
Google, being no exception, is expanding data centers to meet the requirement of more data-intensive services such as Google search, Gmail, Google+, YouTube, wearables and Internet of Things (IoT).
In 2018, the search giant had invested EUR 1.5 billion in the Netherlands for data center operations. The latest expansion brings the company’s total investment in the country to EUR 2.5 billion.
Google intends to leverage abundant green energy and renewable energy production in the Netherlands. This green initiative will help minimize its carbon footprint and lead to cost benefits. Cheap electricity generation from renewable sources and Google’s robust machine learning techniques will aid the cost optimization strategy.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growth Opportunity
Per a report from Research and Markets, the global data-center storage market is expected to grow by $107.44 billion during the 2019-2023 period.
However, its expanding data center in Europe has intensified competition from the likes of Amazon, Microsoft, Apple, Facebook and Alibaba, which are also leaving no stone unturned to bolster presence in the region.
We believe Google is well positioned to take advantage of the projected growth in this segment. The expanding infrastructure will eventually boost the company’s position in the cloud computing market, which is currently dominated by the likes of Amazon and Microsoft.
Zacks Rank & Key Picks
Currently, Alphabet carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Autohome Inc. ATHM, Match Group, Inc. MTCH and Marchex, Inc. MCHX, each carrying a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Autohome, Match Group and Marchex is currently projected at 20.9%, 15.2% and 15%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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 reportMatch Group, Inc. (MTCH) : Free Stock Analysis ReportAutohome Inc. (ATHM) : Free Stock Analysis ReportMarchex, Inc. (MCHX) : Free Stock Analysis ReportAlphabet Inc. (GOOGL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Did You Miss Spark Networks's (NYSEMKT:LOV) 13% Share Price Gain?
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It hasn't been the best quarter forSpark Networks SE(NYSEMKT:LOV) shareholders, since the share price has fallen 26% in that time. But that doesn't change the fact that the returns over the last year have been pleasing. In that time we've seen the stock easily surpass the market return, with a gain of 13%.
Check out our latest analysis for Spark Networks
Because Spark Networks is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Spark Networks saw its revenue grow by 22%. That's a fairly respectable growth rate. While the share price performed well, gaining 13% over twelve months, you could argue the revenue growth warranted it. If revenue stays on trend, there may be plenty more share price gains to come. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
Take a more thorough look at Spark Networks's financial health with thisfreereport on its balance sheet.
Spark Networks shareholders should be happy with thetotalgain of 13% over the last twelve months. Unfortunately the share price is down 26% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
We will like Spark Networks better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
NexTech Signs AR eCommerce Deal with Luxe Cannabis Company BRNT Designs
New York, New York and Toronto, Ontario--(Newsfile Corp. - June 25, 2019) - NexTech AR Solutions(OTCQB: NEXCF) (CSE: NTAR) (FSE: N29)(the "Company" or "NexTech") is pleased to announce that it has entered into an agreement withBRNT Designs, a designer of architecturally unique accessories for creative and sophisticated cannabis users, to ARitize™ its entire product line. NexTech is going to provide 3D product models to BRNT Designs through its web AR eCommerce platform.
"We are thrilled to be working with NexTech AR and using their AR eCommerce solution for our entire product line of accessories for the creative and self-expressive cannabis consumer," says Ally McIlwraith, Director of Marketing for BRNT Designs.
NexTech is continuing to sign up a diverse array of AR eCommerce customers to its SaaS platform including but not limited to, Block Scientific, Walther Arms, Wright Brothers, Vertical Designs, and many more. The company will be converting BRNT Designs' product line of pipes, ashtrays, rolling trays, and storage jars into high fidelity 3D models to be used on online product pages, and for use in a BRNT Designs showroom app. BRNT Designs' existing and future customers will be able to view the products in full 3D on the BRNT Designs website, with 360-degree rotation, and to "place" the products in their space to understand the quality of craftsmanship and artistic vision of each piece before purchase.
"The growth of the legal cannabis market has consumers looking to replace or upgrade their accessories, seeking a more personalized consumption experience that matches them individually. As such, accessories manufacturers need to match that experience at retail, to best showcase their products to consumers. What better way than with AR?" said Evan Gappelberg, CEO of NexTech. "BNRT Designs' accessories are more than just products - they are artistic experiences that will show extremely well utilizing our immersive AR solution. We are very excited to be bringing our web-enabled AR technology to an industry leader like BRNT Designs."
With spending on legal cannabis worldwideexpected to reach $57 billionby 2027, according to Arcview Market Research and BDS Analytics, on-demand, interactive AR experiences are the next step towards improving customers' path to purchase.Gartner reports100 million consumers will shop in augmented reality online and in-store by 2020. NexTech is building out its AR and AI eCommerce offerings, which include using AI to create a guided and knowledgeable curator that can be programmed to be used for eCommerce or for education in the medical device market.
About NexTech AR Solutions Corp.
NexTech is bringing a next-generation web enabled augmented reality (AR) platform with Artificial Intelligence (AI) and analytics to the Cannabis industry, eCommerce, education, training, healthcare and video conferencing. Having integrated with Shopify, Magento and Wordpress, its technology offers eCommerce sites a universal 3D shopping solution. With just a few lines of embed code, the company's patent-pending platform offers the most technologically advanced 3D AR/AI technology anywhere. Online retailers can subscribe to NexTech's state-of-the-art, 3D AR/AI SaaS platform. The company has created the AR industry's first end-to-end affordable, intelligent, frictionless, scalable platform.
To learn more, please follow us onTwitter,YouTube,Instagram,LinkedIn, andFacebook, or visit our website:https://www.nextechar.com.
On behalf of the Board of NexTech AR Solutions Corp."Evan Gappelberg"CEO and Director
For further information, please contact:
Evan GappelbergChief Executive Officerinfo@nextechar.com
Media contact:
Erin HaddenFischTank Marketing and PRehadden@fischtankpr.com
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be", "looking forward" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the Company increasing investors awareness are based on the Company's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of NexTech to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including capital expenditures and other costs. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. NexTech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45867 |
Prime Day 2019 starts on July 15th and lasts for 48 hours
Amazon’s Black Friday in July event is back for another year, and Prime Day 2019 will be bigger than ever. The retailer will offer Amazon Prime subscribers more than a million deals over two whole days, so you’ll have an extra 12 hours to shop compared to last year’s event, which also kicked off in mid-July. Related Stories: eBay promises a 'Crash Sale' on Amazon Prime Day if Amazon's website crashes No, it's not just you: Half of the internet is down, including Google, Amazon, and Reddit Your next smart speaker might save your life Amazon revealed that Prime Day 2019 will begin at midnight PT on Monday, July 15th, and end two full days later. Prime members in several markets will be able to shop Prime Day deals, including the United States, UK, Spain, Singapore, Netherlands, Mexico, Luxembourg, Japan, Italy, India, Germany, France, China, Canada, Belgium, Austria, Australia and United Arab Emirates, with that last country being a new addition to Prime Day sales. You’ll have to grab yourself an Amazon Prime membership if you don’t have one in order to take advantage of the deals, so this is the perfect time to start a 30-day free trial . Amazon says it’ll host featured Lightning Deals that will include “jaw-dropping prices on top-tier brands” during Prime Day, but these deals will be spread out over the 48 hours so you’ll have to keep checking the site. We’ll cover the best Prime Day 2019 deals over in our BGR Deals portal , so keep it bookmarked to quick access to the best sales. The first Prime Day deal is already available right now, a 43-inch Toshiba Fire TV Edition Smart TV priced at $179.99 ($120.01 in savings) — a Prime Day sales preview is available at this link . Also starting today, you can rent Jordan Peele’s Us on Prime Video for $2.99. Finally, Amazon announced that Prime subscribers will get Free One-Day Delivery in the US with no minimum purchase on more than 10 million products. Users also have the option of bundling up all their Prime Day purchases into a single shipment scheduled for an Amazon Day of their choice. Story continues BGR Top Deals: Get an ASUS 2-in-1 touchscreen Chromebook for $279 on Amazon, today only This top-rated fast wireless charger is somehow only $6.99 right now on Amazon Trending Right Now: No, it’s not just you: Half of the internet is down, including Google, Amazon, and Reddit Apple was right again: Here’s why a Galaxy Note 10 without a microSD slot isn’t a big deal Fresh Pixel 4 leak gives us another look at Google’s unreleased flagship See the original version of this article on BGR.com |
Here's Why Investors Should Steer Clear of JAKKS Pacific
JAKKS Pacific, Inc.JAKK is one of the toy companies that have been grappling with declining demand and sales for quite some time now. A challenging retail environment for toys has been continuously hurting the stock.
Shares of JAKKS Pacific have lost 81% in the past year, underperforming the industry’s decline of 28.1%. The weak share price can be attributed to the company’s lower-than-expected earnings in three of the trailing four quarters. The average earnings miss in the past four quarters has come to 29.2%.
Let us find out why investors should consider selling this Zacks Rank #4 (Sell) company.
Challenging Sales Environment
JAKKS Pacific, like Mattel MAT and Hasbro HAS, has been facing declining sales trend for quite a while now. In the first quarter of 2019, its net sales totaled $70.8 million, which lagged the Zacks Consensus Estimate by 10%. The top line also fell 23.8% on a year-over-year basis.
The liquidation of Toys “R” Us, the largest retailer for traditional toys, has been weighing on the company’s sales and is likely to continue to do so in the quarters to come.
Soft Margins to Hurt Earnings
Toymakers are also facing higher manufacturing costs, which are detrimental to their margins. JAKKS Pacific’s gross margin in the first quarter of 2019 was 20.2%, down 450 basis points (bps) from the prior-year quarter. Adjusted EBITDA was a negative $17.1 million compared with a negative $14.6 million in the prior-year quarter. This is likely to weigh on its earnings. Subsequently, the Zacks Consensus Estimate for the company’s loss is pegged at 93 cents in 2019.
Competition Adds to Declining Demand
Toy manufacturers have to battle a broad array of alternative modes of entertainment — including video games, MP3 players, tablets, smartphones and other electronic devices. JAKKS Pacific’s revenues have been under some pressure over the past few quarters due to lower demand for games as children are opting for electronic versions of games on smartphones and tablets.
Another factor affecting demand for these brands is age compression. Kids are growing up and moving on much faster than they used to and are also getting bored easily. For instance, demand for some toys that were preferred by kids aged 3-9 years previously narrowed down to 3-6 years. This is tapering the demand for toys, thereby hurting this traditional toymaker’s revenues.
Recent Trade Spat Concerns
The U.S.-China trade debacle has escalated since U.S. President Donald Trump has raised tariffs from 10% to 25% on $200 billion worth of China imports. China struck back with tariff hikes on $60 billion worth of U.S. goods.
While the toy industry has so far been guarded against trade hostilities, the days ahead may not be as unchallenging, believes the Toy Association. This is because about 3 billion toys are sold in the United States each year, with 85% of those coming from China. In fact, per the U.S. International Trade Commission, toys, puzzles and more were among the major commodities imported from China in 2018.
JAKKS Pacific’s profit margin may further get affected as the tariff war may lead to cost escalation. Also, since the 25% tariff covers a good range of consumer products, it is likely to impact discretionary spending and in turn affect demand for toys.
Stock to Consider
A better-ranked stock in the industry is Glu Mobile GLUU, which currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Glu Mobile’s long-term EPS is projected to grow 15%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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 reportMattel, Inc. (MAT) : Free Stock Analysis ReportHasbro, Inc. (HAS) : Free Stock Analysis ReportJAKKS Pacific, Inc. (JAKK) : Free Stock Analysis ReportGlu Mobile Inc. (GLUU) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
North America’s Largest Solar Bitcoin Mining Farm Coming to California
California-basedminingcompany Plouton Mining will build North America’s largest solar-poweredbitcoin miningfarm, the company confirmed in apress releaseon June 25.
Plouton, which is a subsidiary of Plouton Group Holding, says the site in Western Mojave will feature around 49 acres of solar panels generating 10-13 megawatts of electricity daily.
The location was chosen due to its high annual quota of sunlight, which averages 70%, with the company planning to enter agreements with local utilities providers to secure low-cost power for the remaining time.
“The preeminent combination of nature and technology will usher in the next stage of bitcoin mining evolution, fulfilling the promise of Bitcoin as a sustainable, decentralized network of transactions,” Ramak J. Sedigh, the operation’s CEO, commented in the press release.
“We are very pleased to offer people the opportunity to participate in the growing Bitcoin blockchain economy without having to purchase the mining equipment themselves.”
As Cointelegraphreported, the uptick in bitcoin (BTC) price has led to a resurgence in both mining profitability anddecentralizationas smaller participants gain easier access to the market.
At the same time, the period since last November has seen major upheaval among the industry’s traditional heavyweights such asBitmain, which have variously enacted staff cuts and closures tostem financial losses.
Canada’sHut 8, one of the world’s largest publicly-tradedcryptocurrencymining companies, in Mayreported2018 losses of $140 million.
Long subject to claims it is environmentally damaging, bitcoin mining has meanwhile received better publicity in recent times after a studyrevealedmore than 70% of activity already utilizes renewable energy.
• Bitmain Shifting IPO Plans to the US on Growing Bitcoin Optimism
• Hodler’s Digest, June 10–16: Top Stories, Price Movements, Quotes and FUD of the Week
• China: Locals Allegedly Laying Cable via Fish Ponds to Steal Oil Well Power for BTC Mining
• Bitcoin Generates More Carbon Emissions Than Some Countries, Study Warns |
New Yorkers are losing the Public Library's free movie streaming (updated)
There's no such thing as a free lunch, nor apparently a free movie streaming service. From July 1st, New York library patrons will no longer be able to stream movies for free from their homes as the nonprofit is ending its partnership with streaming service Kanopy,Gizmodoreports.
In 2017, the New York Public Library (NYPL) struck a deal with Kanopy allowing any library cardholder to use the streaming service for free. That gave library users access to 30,000 movies including recent hits likeMoonlight,Lady BirdandThe Florida Project. It also offered access to harder to find movies which were not available on other streaming platforms, as the collection was focused on documentaries, classics and independent films.
If it seems odd that a library would offer a movie streaming subscription, it's because Kanopy was aimed at the educational sector, and got its start selling DVDs to college libraries. It gradually expanded into streaming and partnered with a number of public libraries.
Although the service is free for users, it is paid for by the library. Rather than the flat subscription fee charged by services like Netflix, Kanopy works bycharging libraries a license feeof around $150 for each title, triggered by just three viewings.
These fees can eat up a considerable portion of a library's budget. Stanford library chose to drop its partnership with Kanopylast year, saying the change was made "as a result of the increasing cost of the service, which have escalated significantly in the past year and is no longer sustainable."
It seems the same issue has led the NYPL to stop offering the streaming service. The library released a statement saying that it would no longer offer free access to Kanopy. Brooklyn Public Library and Queens Public Library are also ending their partnership with the streaming service.
"The Library made this decision after a careful and thorough examination of its streaming offerings and priorities," the NYPL said. "We believe the cost of Kanopy makes it unsustainable for the Library, and that our resources are better utilized purchasing more in-demand collections such as books and e-books."
Update 6/25/19 10:48AM ET:This post has been updated to clarify Brooklyn Public Library and Queens Public Library will also end their partnership with Kanopy, in addition to the NYPL. |
Oil Price Fundamental Daily Forecast – Late Session API Report Could Trigger Volatile Reaction
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are edging lower shortly before the regular session opening. An easing of tensions in the Middle East is helping to hold prices inside yesterday’s range. This suggests investor indecision and impending volatility.
The lack of fresh news regarding U.S.-Iran relations has shifted the focus back to the basic fundamentals. Concerns over a global recession and its impact on demand as well as worries over increasing U.S. stockpiles have move back to the forefront.
At 11:09 GMT,August WTI crude oilis at $57.60, down $0.30 or -0.54% andAugust Brent crude oilis trading $64.42, down $0.44 or -0.68%. (Rollover to September Brent on Wednesday.)
On Monday, Wall Street brokerage firm UBS told clients that the globe is “one step away” from recession as US President Trump and Chinese President Xi Jinping head to the G-20 summit in Osaka, Japan. The two will try to hash out differences in an effort to get trade talks back on track.
While most investors feel the meeting will yield little fruit, some are worried about an escalation of tensions if the two parties walk away disappointed. Trump said back on June 6 that he will consider raising tariffs on $300 billion of Chinese goods.
UBS believes that new tariffs would mean “major” changes to global GDP and market forecasts. This will result in lower demand for crude oil.
If the trade war escalates, “we estimate global growth would be 75bp lower over the subsequent six quarters and that the contours would resemble a mild “global recession” – similar in magnitude to the Euro Zone crisis, the oil collapse in the mid-1980s and the “Tequila” crisis of the 1990s,” UBS’ Arend Kapteyn wrote in a note.
Investors will get their first peek at U.S. crude oil stockpiles late Tuesday at 20:30 GMT when the American Petroleum Institute (API) releases its inventories report for the week-ending June 21.
Last week, the API reported a small draw in crude oil inventory. The net build so far this year is still an uncomfortable 34.02 million barrels for the 25-week reporting period.
The upside momentum seems to be slowing as investors shed risky assets ahead of the G-20 summit and the easing of tensions in the Middle East. However, prices are likely to remain in a range until the API report at 20:30 GMT. A bearish report will give investors a reason to book profits, while a bullish report could encourage investors to add to their long investments.
Thisarticlewas originally posted on FX Empire
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• GBP/USD Price Forecast – British pound slumps again
• S&P 500 Price Forecast – Stock markets continue to struggle
• Gold Price Forecast – Gold markets pulled back rather significantly |
Getting divorced? Splitting up crypto assets could prove a headache, lawyers warn
While divorce is nothing new, crypto is. Indeed, bitcoin and other “21stCentury currencies” have little precedent in official proceedings; creating a 21stCentury divorcee headache, according to separation experts.
By way of background, across Europe, Canada andnine U.S. states, non-inherited assets acquired during a marriage are typically split 50:50 – regardless of who earnt them. According to U.S. lawyer Pamela Morgan, crypto is broadly classified as "property." In this category, half of the assets' agreed value goes to each party.
However, simple as that may sound, adding crypto to the mix brings unique obstacles to a divorce settlement; including judges’ difficulties in tracing and accessing the assets. Two lawyers describe some of the novelties they are facing with clients in the emotional context of divorce.
Hiding assets
The key issue is that crypto can be stored anonymously and outside the remit of a judge.
With traditional assets, a judge can subpoena the given bank or brokerage account where the fiat or shares are stored if a spouse does not cooperate. But with crypto, a judge’s powers are limited as the assets can be stored offline or with a foreign third party.
“You might want to subpoena the exchange, but if it’s registered in the British virgin islands for instance, you’d have to hire an attorney in the relevant jurisdictions. So that becomes a lot more expensive,” says Joseph Neudorfer, a civil litigation attorney based in Montreal.
He summarised that the lack of transparency around crypto means the “other side [is left] with very few options.”He added that while it wouldn’t be impossible for a judge to order the seizure of a phone where a crypto wallet was stored, for instance, that would just be the beginning.
“You still need the password. And then you need someone who understands all the jibberish…There’s very few lawyers attuned to it.”
This complication recently made its way to the Ontario Superior Court of Justice. In February, a judge had to determine whether a trader should provide documents relating to his crypto investments and holdings to his former partner to consider the size of his child support contributions. The applicant believed that her former partner owned crypto valued “at about [CAD] $10 million” and accused her former partner of failing “to provide actual evidence of the value of this investment.”
This is common Morgan says, reporting that one part of a couple usually thinks the other is hiding assets. Ultimately, the underlying issue is a spouse may not know what assets their former partner has – or be able to prove it.
In this case, the court settled on asking for redacted documents to assess the size of the party’s assets, setting a precedent about where to draw the line between privacy, state seizure, and spousal rights.[related id="1"]
An expensive novelty
Morgan also notes that even when the divorce settlement is transparent, it may call for specialised counsel and expertise. This is particularly important if the couple chooses to share the crypto rather than liquidate it and share the returns, as there are tax implications (variable by jurisdiction).
“You have to get accountant who understands crypto because to an outsider it will look taxable,” Morgan notes, highlighting that it must be registered as a ‘transfer of assets’ and not a sale.
Advisors might also be needed if the other partner does not know how to set up a crypto wallet and other technicalities to ensure theygetthe assets.
“When they split it up, they don’t want to have to go their ex [for help],” she jokes. There may also be privacy issues to consider. Or, if the crypto was cashed out before the marital breakdown, any gains made on it would also be potentially divisible.
In short, all this specialised help adds up to unforeseen, added costs.
Another issue is that the Courts are using existing legislation for a rather new asset, which may require fresh guidelines.
“There’s not a lot of new legislation, so the existing legislation is adapted to it,” says Neudorfer. “The issue then is how do you monitor it and enforce it.”
He added that it was “inevitable there’ll be more case law” judgements like the one in Ontario that will have to deliver lengthy legal settlements as bitcoin turns 10. The bear run might also mean crypto becomes an increasingly common point of contention as its value increases, Morgan predicts.
Of course, there are infinite variations to how divorce proceedings can go. It depends on the jurisdiction of any given state, prenups, the individuals involved, their relationship, and so on. But in general, crypto is introducing new rules for couples and lawyers alike.
“A lot of times you feel like you’re doing completely new stuff,” says Morgan.
For now, it’s likely the wedding vows will remain “for richer or for poorer.” But for the 40% of first marriages that end in divorce in the U.S., an understanding of what happens when you put crypto in the mix may be worthwhile. |
Does Natixis (EPA:KN) Deserve A Spot On Your Watchlist?
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It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
So if you're like me, you might be more interested in profitable, growing companies, likeNatixis(EPA:KN). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
View our latest analysis for Natixis
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. It certainly is nice to see that Natixis has managed to grow EPS by 18% per year over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Not all of Natixis's revenue this year is revenuefrom operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. While we note Natixis's EBIT margins were flat over the last year, revenue grew by a solid 7.2% to €10b. That's progress.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
Fortunately, we've got access to analyst forecasts of Natixis'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting.
As a general rule, I think it worth considering how much the CEO is paid, since unreasonably high rates could be considered against the interests of shareholders. I discovered that the median total compensation for the CEOs of companies like Natixis, with market caps over €7.0b, is about €3.4m.
The Natixis CEO received total compensation of just €1.4m in the year to December 2018. That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. I'd also argue reasonable pay levels attest to good decision making more generally.
Given my belief that share price follows earnings per share you can easily imagine how I feel about Natixis's strong EPS growth. The fast growth bodes well while the very reasonable CEO pay assists builds some confidence in the board. So I'd argue this is the kind of stock worth watching, even if it isn't great value today. If you think Natixis might suit your style as an investor, you could go straight to its annual report, or you could first checkour discounted cash flow (DCF) valuation for the company.
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
NextEra Energy Partners (NEP) Prices Notes to Refinance Debt
NextEra Energy PartnersNEP announced the pricing of $700 million of 4.25% unsecured senior notes due 2024. The notes will be offered by its direct subsidiary, NextEra Energy Operating Partners, LP ("NEP OpCo"). The offering of notes is expected to close on Jun 27, 2019.NEP OpCo intends to utilize the net proceeds of $691.2 million to pay off the outstanding balance of $450 million under the revolving credit facility. The remaining proceeds will be used to repurchase up to $240 million of the outstanding 5.600% senior secured notes.Lower-Than-Industry Debt LevelsNextEra Energy Partners’ debt-to-capitalization ratio currently stands at 33.72%, lower than its industry’s average of 36.91%. NextEra Energy Partners is trying to manage the debt level efficiently, which allows it to lower interest burden, thereby pushing margins higher.Looking AheadNextEra Energy Partners aims at expanding existing operations through organic growth and selective acquisitions, which are in sync with the current renewable energy and natural gas pipeline projects in its portfolio. Disciplined investment approach will allow the partnership to expand operations, remain competitive and increase cash distribution of its unitholders over the long term. The partnership’s acquisition of 1,388 MW of solar and wind projects from NextEra Energy Resources will further expand NextEra Energy Partners’ existing portfolio of renewable assets.The partnership sold the Canadian portfolio of wind and solar assets to enjoy the domestic benefit of lower effective corporate tax rate and longer tax shield than Canada. This decision to move out from Canada and use the proceeds in U.S. operations is expected to be accretive to the company’s long-term growth.Rate Freeze Can Benefit Energy SpaceThe Federal Reserve kept the interest rate unchanged in the target range of 2.25-2.5% in the two-day FOMC meeting that concluded on Jun 19. New projections indicate that the Fed might lower rate in 2020.The unchanged interest rates in a way will benefit the companies operating in the capital-intensive energy sector. The unaltered rates will allow the energy sector operators to source fund for long-term capital projects at a favorable rate compared with what was expected during the end of 2018. At the December 2018, Fed raised interest rates and predicted two more rate hikes in 2019.Price MovementUnits of NextEra Energy Partners have outperformed its industry in the past 12 months.
Zacks Rank & Key PicksNextEra Energy Partners currently has a Zacks Rank #5 (Strong Sell).Some better-ranked stocks from the same sector are Bloom Energy Corporation BE, Evergy Inc. EVRG and FuelCell Energy Inc. FCEL, each holding a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for the current year for Bloom Energy has moved up 6.9% in the past 60 days.The Zacks Consensus Estimate for the current year for Evergy has moved up 0.3% in the past 90 days. Long-term EPS growth of the company is pegged at 6.61%.The consensus mark for the current year for FuelCell Energy has been upwardly revised by 50.2% in the past 60 days.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot trades we're targeting>>
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 reportFuelCell Energy, Inc. (FCEL) : Free Stock Analysis ReportNextEra Energy Partners, LP (NEP) : Free Stock Analysis ReportEvergy Inc. (EVRG) : Free Stock Analysis ReportBloom Energy Corporation (BE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
'Fast Money' Traders Talk Gold, Defensive Stocks And More
On CNBC’s “Fast Money” on Monday, Guy Adami said gold mining stocks likeSPDR Gold Trust(NYSE:GLD) andVanEck Vectors Gold Miners ETF(NYSE:GDX) are breaking out to the upside and continue to have room to run.
Tim Seymour added that typical risk-aversion stocks likeMcDonald's Corp(NYSE:MCD),Coca-Cola Co(NYSE:KO),PepsiCo, Inc.(NASDAQ:PEP) andStarbucks Corporation(NASDAQ:SBUX) are defensive stocks that are likely going higher and that valuations don't matter.
Dan Nathan said with gold and defensive stocks moving higher, the warning signs are "screaming in silence" and said if the market is going to breakout to meaningful highs,Microsoft Corporation(NASDAQ:MSFT),Amazon.com, Inc.(NASDAQ:AMZN) andAlphabet Inc(NASDAQ:GOOG) will have to get back to prior highs.
Brian Kelly said there are "signs of weakening" and is cautious because we have had such a run. He doesn't have a lot of equity exposure at this time.
Adami said if the market were as strong as everyone wants it to be, theiShares Russell 2000 Index(NYSE:IWM) should be higher.
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UPDATE 3-Indonesia media exec says company talking to Disney; tycoon founder denies
(Recasts)
JAKARTA, June 25 (Reuters) - The director of the investment arm of Indonesian media group Media Nusantara Citra (MNC) <MNCN.JK > said on Tuesday the group was in talks with Walt Disney Co on a possible investment by the U.S. media conglomerate, but the group's owner Hary Tanoesoedibjo denied talks were taking place.
MNC Investama Director Darma Putra said at an event organized by MNC that Disney was interested in investing in one of the group's affiliates.
“Hopefully, we will get another (equity investor) soon. We are in talks with Disney. If it’s successful, it will earn $200 million in the next 10 years,” Putra told an audience that included reporters.
MNC Group founder and chairman Hary Tanoesoedibjo, a business partner of U.S. president Donald Trump, said no talks were taking place with Disney. MNC Group said last year it was building two luxury resorts in Indonesia that will be managed by a subsidiary of the Trump Organization.
He told Reuters by telephone there were "clearly no talks with Disney", adding he would know since he was the “number one guy at MNC”.
Tanoesoedibjo said that negotiations with Vivendi were ongoing and the French company as now looking to buy a stake through its subsidiary Canal Plus in MNC Vision Networks (MVN), an affiliate of MNC.
Tanoesoedibjo also said MVN was planning a public listing to attract investors.
The Indonesian tycoon is known for his flamboyant business style and has previously said he was inspired by Trump.
Disney and Vivendi did not immediately respond to requests for comment. (Reporting by Cindy Silviana Editing by Edmund Blair/Emelia Sithole-Matarise/Jane Merriman) |
Boris Johnson claims he 'makes models of buses' and paints passengers 'enjoying themselves' to relax
Boris Johnson on a Routemaster bus in 2011. He has claimed to unwind by making model buses out of wine crates. (Getty) Tory leadership hopeful Boris Johnson has revealed his unique way to unwind. The former Mayor of London, who introduced a new fleet of Routemaster buses during his time in the role, told TalkRadio he claimed he likes to make models out of old wine crates and its just the ticket at the end of stressful day. It seems despite getting his fingers burnt after posting with a bus back in 2016 during the EU referendum which claimed the UK sends £350m to Europe every week , Mr Johnson just cant tear himself away from them. Asked how he likes to relax, he told TalkRadio: I like to paint or I make things. I make models of buses. Boris Johnson the Mayor of London stands in front of a routemaster bus to launch the Year of the Bus campaign, in London, Monday, Jan. 27, 2014. (AP Photo/Kirsty Wigglesworth) What I make is I get old wooden crates, right? And I paint them. I suppose its a box thats been used to contain wine bottles. I paint the passengers enjoying themselves on the wonderful bus. And never failing to take an opportunity to sing his own praise he added: On a wonderful bus. Low carbon of a kind that we brought to the streets of London that reduces CO2, reduces Nitrous Oxide, reducing pollution... London's Mayor Boris Johnson stands next to some of the winning designs that will lead to the next generation of the London's famous red Routemaster bus, at an award ceremony in London Friday, Dec. 19, 2008. It is hoped that the new bus which will incorporate the best of the winning designs will be on London streets in late 2011.(AP Photo/Alastair Grant) During the wide-ranging interview Mr Johnson was drawn on aspects of his personal life after refusals to discuss police being called to a late-night argument at the home he shares with partner Carrie Symonds. Asked on his temper, he said: I am a pretty even-tempered kind of guy. I dont easily get angry. Read more from Yahoo News UK: Man who shot dead his best friend cleared of murder Boris Johnson fumbles answers as hes quizzed on Brexit Bill Gates reveals Microsofts biggest ever mistake Mr Johnson has come in for heavy criticism over his apparent reluctance to take part in a series of television debates with rival, Jeremy Hunt. The revelation was something of a distraction as opponents have criticised his claims he would tear up Theresa Mays Brexit agreement - despite being told there is no scope for further negotiations by the European Union. Watch the latest videos from Yahoo UK |
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