text stringlengths 1 675k ⌀ |
|---|
Report: Hackers using telecoms like 'global spy system'
LONDON (AP) — An ambitious group of suspected state-backed hackers has been burrowing into telecommunications companies in order to spy on high-profile targets across the world, a U.S. cybersecurity firm said in a report published Tuesday . Boston-based Cybereason said the tactic gave hackers sweeping access to VIPs' call records, location data and device information — effectively turning the targets' cellular providers against them. Cybereason Chief Executive Lior Div said because customers weren't directly targeted, they might never discover that their every movement was being monitored by a hostile power. The hackers have turned the affected telecoms into "a global surveillance system," Div said in a telephone interview. "Those individuals don't know they were hacked — because they weren't." Div, who presented his findings at the Cyber Week conference in Tel Aviv, provided scant details about who was targeted in the hack. He said Cybereason had been called in to help an unidentified cellular provider last year and discovered that the hackers had broken into the firm's billing server, where call records are logged. The hackers were using their access to extract the data of "around 20" customers, Div said. Who those people were he declined to say, describing them as mainly coming from the world of politics and the military. He said the information was so sensitive he would not provide even the vaguest idea of where they or the telecom were located. "I'm not even going to share the continent," he said. Cybereason said the compromise of its customer eventually led it to about 10 other firms that had been hit in a similar way, with hackers stealing data in 100 gigabyte chunks. Div said that, in some cases, the hackers even appeared to be tracking non-phone devices, such as cars or smartwatches. Cybereason said it was in the process of briefing some of the world's largest telecommunications firms on the development. The GSMA, a group that represents mobile operators worldwide, said in an email it was monitoring the situation. Story continues Who might be behind such hacking campaigns is often a fraught question in a world full of digital false flags. Cybereason said all the signs pointed to APT10 — the nickname often applied to a notorious cyberespionage group that U.S. authorities and digital security experts have tied to the Chinese government. But Div said the clues they found were so obvious that he and his team sometimes wondered whether they might have been left on purpose. "I thought: 'Hey, just a second, maybe it's somebody who wants to blame APT10,'" he said. Chinese authorities routinely deny responsibility for hacking operations. The Chinese Embassy in London did not immediately return a request seeking comment. Div said it was unclear whether the ultimate targets of the espionage operation were warned, saying that Cybereason had left it to the telecom firms to notify their customers. Div added he had been in touch with "a handful" of law enforcement agencies about the matter, although he did not say which ones. The FBI in Washington did not immediately return a message from The Associated Press seeking comment on the topic. ___ Online: Cybereason's report: https://www.cybereason.com/blog/operation-soft-cell-a-worldwide-campaign-against-telecommunications-providers ___ Raphael Satter can be reached at: https://raphaelsatter.com |
Is NZME Limited (NZSE:NZM) Overpaying Its CEO?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Michael Boggs has been the CEO of NZME Limited (NZSE:NZM) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for NZME
At the time of writing our data says that NZME Limited has a market cap of NZ$98m, and is paying total annual CEO compensation of NZ$1.2m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at NZ$806k. We took a group of companies with market capitalizations below NZ$304m, and calculated the median CEO total compensation to be NZ$27k.
Thus we can conclude that Michael Boggs receives more in total compensation than the median of a group of companies in the same market, and of similar size to NZME Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at NZME has changed over time.
On average over the last three years, NZME Limited has grown earnings per share (EPS) by 94% each year (using a line of best fit). Revenue was pretty flat on last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
Given the total loss of 13% over three years, many shareholders in NZME Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at NZME Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling NZME (free visualization of insider trades).
Important note:NZME may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
8 Surefire Ways to Get Rid of Debt ASAP
Debt can destroy your financial dreams. Whether you carry a small balance on your credit card each month or are staring up at a mountain of financial obligations, debt makes it impossible to get ahead.
Paying off debt requires dedication, determination and persistence. Here are a few smart ways to pay off debt fast:
If you really want to get out of debt, stop using credit cards. The more you swipe, the more the balance climbs. Even if you continue to use your card, avoid leaning on perks such as the ability to take cash advances. As we explain in “The 10 Most Common Credit Sins and Mistakes“:
“Unlike when you withdraw cash from your bank account via debit card, a cash advance via credit card generally costs you a steep cash-advance fee as well as a steep interest rate. In addition, interest charges start accumulating immediately, usually from the day you take out the loan.”
Having a hard time letting go? Try freezing the cards in a cup of ice. By the time you are able to access them again, hopefully you will have changed your mind about spending.
Creating an emergency fundshould be a top priority. But once you have accomplished this goal, use any funds at your disposal to pay down debt. The more you pay, the faster you’ll be free of your obligations.
Did you save money at the grocery store by stacking coupons with sales? Use the savings to pay off debt. Did you work some overtime last week? Apply the extra earnings to your debt.
Take a good look at where your money is going and separate necessities from mere wants. Skip daily trips to the local coffee shop or to your favorite lunch spot. Over time, these savings can add up. Use them to dig out of the hole much quicker than you expected.
If you are struggling to figure out which expenses you can cut, start by crafting a budget. Use software such asYou Need a Budgetto help you get spending priorities on track.
Congratulations if you have paid off one credit card. However, accomplishing that goal doesn’t mean it’s party time. Keep the momentum going by allocating those funds that are now freed up to the next balance in line.
If you get a sudden windfall — such as a tax refund or bonus at work — don’t spend it on a splurge. Instead, bite the bullet and use a portion of the funds to pay off debt.
Try your hand at freelancing to make a few dollars on the side. In some instances, you may be able to generate a substantial amount of cash, all of which should be contributed to the debt-payoff fund.
For some ideas on trading your skills for cash, check out “19 Unusual Ways to Earn Extra Cash.”
Although some prefer the debt snowball method, which suggests that you pay the debts with the lowest balances first to build momentum, it makes more financial sense to clear those debts with the higher interest rates first. The ultimate goal is to pay off debt, however, so the choice is yours.
Paying off debt may require you to make a few lifestyle changes, but it doesn’t have to be depressing. If you have a difficult time adjusting to new circumstances, implement gradual changes so the process won’t become too overwhelming.
And if you need help, check out ourSolutions Center. There, you will find the following sources of debt-related help:
• Credit card debt
• Student loan debt
• Tax debt
Do you have any other debt-reduction tricks? Feel free to share in the comments below or onour Facebook page.
This article was originally published onMoneyTalksNews.comas'8 Surefire Ways to Get Rid of Debt ASAP'.
• 2-Minute Money Manager: Should I Get a Debt Consolidation Loan?
• 11 Signs You Have Too Much Credit Card Debt
• 9 Ways to Lose Weight and Pay Off Debt at the Same Time |
3 Things Kroger Wants Investors to Know
While some of its rivals are posting their best growth numbers in years,Kroger(NYSE: KR)has yet to join in the retailing industry's rebound. The supermarket chain recently announced fiscal first-quarter results that trailed management's full-year outlook. And, unlike with peers such asWalmart(NYSE: WMT)andTarget(NYSE: TGT), Kroger's updated forecast for 2019 remains conservative.
In aconference callwith investors, CEO Rodney McMullen and his team added detail to that 2019 outlook and explained what's been working -- and what hasn't -- with their rebound strategy over the last few months. Let's look at a few highlights from that presentation.
Image source: Getty Images.
We had a few headwinds during the first quarter, including sales, which we know must be stronger. We also experienced pharmacy gross margin pressure similar to others in the industry.
Executives admitted that revenue growth isn't where it needs to be. Comparable-store salesrose by just 1.5%, which trailed Walmart's 3% spike and Target's 5% increase. The figure also came up short of the 2% goal that Kroger had issued for the full 2019 year. Broadly speaking, these numbers suggest continued market share losses to the biggest national retailing competitors.
Management didn't call out any specific reasons for the shortfall, but instead focused its comments on the many initiatives it has in place to improve the customer shopping experience. Focusing on consumers through strategies like faster home delivery and lower prices, Kroger says, is the surest path toward sustainably faster sales growth.
We know that our customers love our brands, and that they are hungry for innovative new products that they can only get by coming to and shopping with Kroger.
On the positive side of the ledger, Kroger noted continued success with its in-store brands, which now account for about 30% of sales volumes and are a source of strong revenue growth. Other important wins in the period included a 42% increase in e-commerce, which is tracking at over $5 billion of annual sales.
Management also highlighted its efforts to diversify into other revenue streams, like personal finance, advertising, and data licensing. Together, these bets are on track to contribute an extra $100 million to operating profit this year, executives estimate.
We recognize that getting into our [comparable-store] sales guidance range will require an acceleration of sales throughout the rest of our fiscal year. We are diligently working to improve performance and build on the positive sales trend momentum we are seeing thus far in our second quarter.
The good news is that the first few weeks of the second quarter are showing faster growth, with sales accelerating toward their 2019 outlook of between 2% and 2.25%. Hitting that target would be an encouraging step in executives' long-term rebound plan.
Yet peers including Walmart,Costco, and Target have all announced robust customer traffic gains and improving profitability in recent weeks. In each of these cases, the company has cited the grocery niche as being supportive of its market-beating growth rates.
In other words, Kroger is still losing ground to rivals across the grocery sales landscape today. Until the retailer can demonstrate that it is at least matching the growth in the wider industry, investors should resist buying into its rebound predictions.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
Demitrios Kalogeropoulosowns shares of Costco Wholesale. The Motley Fool recommends Costco Wholesale. The Motley Fool has adisclosure policy. |
Should You Help Your Grandchild Buy a Car?
Does the thought of your grandchild behind the wheel of a potentially lethal weapon send chills up your spine? In my case, it brings tears to my eyes! SEE ALSO: Are You a Helicopter Parent, a Lawn Mower or Worse: A Payoff Parent? If your grandchild has started to talk about having their own car or driving yours, it's time to take this topic of teens and cars seriously. The Good Old Days Baby Boomers like me couldn't wait to get our driver's licenses. It was our coming of age; our badge of honor and a clear sign of being cool. We cruised; we were "free"; we packed our friends into every inch of the car; and, "Yes, Mom, even nice girls parked and made-out." Our grandkids may have seen American Graffiti, but they sure don't identify with the car culture depicted in that flick. Interestingly, the trend of obtaining driver's licenses is decreasing. University of Michigan researchers found that the trend now is for fewer teens to drive. Michael Sivak and Brandon Schoettle confirmed this in their study that noted the number of 18-year-olds driving "fell from 80% in 1983 to 60% in 2014, 17-year-olds decreased from 69% to 45%, and 16-year-olds plummeted from 46% to 24%." There are several reasons for the reduction in registrations, including the high costs for purchasing a car and the increase in urban living. It is also no longer the "badge of being cool" that it once was. Sivak and Schoettle also found that teens are; too busy to get a driver's license; prefer to bike or walk; use public transportation and some were concerned about the environment. For concerned grandparents, all this may mean that you have bought some time before you need to have "the talk." Driving a car is serious business, as captured by the Centers for Disease Control and Prevention , which noted that "Motor vehicle crashes are the leading cause of death for U.S. teens. ... In 2014, 2,270 teens in the United States ages 16-19 were killed and 221,313 were treated in emergency departments for injuries suffered in motor vehicle crashes." Story continues The thought of more than six teens dying every day from car crashes is tragic. The point is, safety first. Teens can be distracted drivers and thus careless. I am not going to directly deal with those sobering (no pun intended) issues; however, I do want to look at the financial implications of teens behind the wheel. Why? Because your grandchildren may very well hit you up to help buy them a car. Begin The Car Talk Start the car conversation by telling the grandkids about your first car and how much it meant to you. Hopefully, you worked and saved up your hard-earned money for this cherished possession. Kids love to hear stories about grandparents. I remember when my husband and I paid $1,600 for a new Triumph. My grandchildren can't believe a car could ever cost that little. They did remind me that a good lawn mower costs more today. Make this "talk" a learning moment about safety ... and about money. You want them to have skin in the game, even if you end up paying the majority of the cost. See Also: Get Your Grandkids in the Giving Spirit by Volunteering Together The Car Cost Quiz Your grandchild may think that since they have been stashing away money for months, they finally have enough to go car shopping. They may have found an online ad for a 1998 Mustang with only 350,000 miles on it for only $5,000 -- a steal! But do they really understand the true cost of buying a car? Here is a short quiz for your grandchild on buying an auto: What are all the different costs associated with buying a car? How much are they? What are all the different costs associated with operating a car? How much are they? Go over your grandchild's list and find out if they left out any of the costs on either list. (Leave off the cost of accidents, for now.) They need to think about all the "upfront" costs when purchasing a car, which include: Financing the purchase Sales tax (state and local) Insurance premiums Registration fees Inspection extras With all this in mind, the cost of the car may be more than your teen was expecting. The point of this lesson for your teen is, "Welcome to planet Earth." Even if you are footing the bill, have your grandkids do online research on all of the costs as if they are paying for the car themselves. Grandparents Need to Be Tough (and Generous, Too?) And after all the cost considerations, what if your grandchild still has their heart set on that $5,000 1998 Mustang? This is where you put your foot down. Remember the safety issues? This is time for you to step in and say that, no matter what, you are going to have your mechanic make sure the car is safe. You may now consider adding some of your money to the pot to increase their car-buying budget, because it is worth it to have all the current safety equipment: new tires, brakes, air bags, etc. There is no price you can put on your grandchild's safety. (For some cars to consider, check out Kiplinger's The Safest Cars for $30,000 or Less and The Safest Used Cars for $20,000 or Less .) The Bottom Line This car conversation is not easy, and it may take the wind out of your grandchild's sails. But, as much as a car is a rite of passage to freedom, it is also the rite of passage to adulthood. As a grandparent, it's your job to make sure that you are the teacher. Just remember the words of Mark Van Doren, the famous poet and professor of English at Columbia University, "The art of teaching is the art of assisting discovery." It's time for your grandchild to discover the full truth -- and responsibility -- of driving a car. See Also: 7 Tips for Raising Wealthy Kids to Be Socially Responsible Comments are suppressed in compliance with industry guidelines. Click here to learn more and read more articles from the author. This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA . EDITOR'S PICKS 4 Ways to Share Your Money Smarts with Kids 3 Ways to Instill Enduring Financial Values in Your Children Ethics Can Be Fun? 2 Games to Teach Your Grandkids Copyright 2019 The Kiplinger Washington Editors |
Here’s why you don’t get paired with that Uber car you see on the map
You're searching for an Uber or Lyft on the respective ride-hailing app and you see a car icon crawling nearby ... but even though it's temptingly close, that doesn't mean you'll be matched with that car.
Uber uses "batch matching" to connect riders with drivers. That means Uber doesn't just find the closest ride to you; instead, the ride-hailing company takes into account the mostoptimizedride for everyone around you.
OK, but what does that mean? If you've ever requested the shared carpool ride that Uber calls Pool or Express Pool, you're familiar with the one- to two-minute waiting period during which Uber's matching algorithm is optimizing across the whole, not just the individual ride request. That's how they determine the best matching for the whole group of people — Pool or not — requesting rides at that same time, or the "batch" of riders requesting rides.Read more...
More aboutUber,Lyft,Ride Hailing Apps,Tech, andTransportation |
Does Renasant Corporation (NASDAQ:RNST) Have A Volatile Share Price?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Anyone researching Renasant Corporation (NASDAQ:RNST) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
Check out our latest analysis for Renasant
Zooming in on Renasant, we see it has a five year beta of 1.22. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If the past is any guide, we would expect that Renasant shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. Beta is worth considering, but it's also important to consider whether Renasant is growing earnings and revenue. You can take a look for yourself, below.
Renasant is a fairly large company. It has a market capitalisation of US$2.0b, which means it is probably on the radar of most investors. It takes deep pocketed investors to influence the share price of a large company, so it's a little unusual to see companies this size with high beta values. It may be that that this company is more heavily impacted by broader economic factors than most.
Beta only tells us that the Renasant share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Renasant’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Future Outlook: What are well-informed industry analysts predicting for RNST’s future growth? Take a look at ourfree research report of analyst consensusfor RNST’s outlook.
2. Past Track Record: Has RNST 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 RNST's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how RNST 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. |
T-Mobile Is Adding 5G-Mobile Service: Here's What You Need to Know
T-Mobile plans to offer super-fast 5G wireless service in parts of six cities on June 28 and to begin sales of the compatible Samsung Galaxy S10 5G phone.
Customers who buy the $1,300 phone will be able to connect in areas of Atlanta, Cleveland, Dallas, Las Vegas, Los Angeles, and New York at speeds 10 to 50 times faster than with current 4G LTE phones, the carrier said. The company said it would charge the same for 5G service as with 4G LTE,in keeping with a previous promise.
T-Mobile, which is seeking to merge with rival Sprint, is furiously building a 5G network as part ofan industry-wide raceamong major telecom companies. As the number of new wireless customers levels off, the carriers have looked for new ways to woo switchers, like rewards programs and free video and music streaming services. T-Mobile offers freeNetflix, for example. But over the next few years, as coverage improves, 5G could be the big draw.
Verizon, which started selling the Galaxy S10 5G last month, is offering 5G service in parts of Chicago and Minneapolis, and hasplans to add at least 30 marketsby the end of the year. Last week,AT&Tdebuted the same phonefor some businesses customers, but not for consumers. Its 5G service is online in “very limited” parts of 19 cities, and will be expanded to 30 or more cities by the end of the year.
Meanwhile, Sprintintroduced its 5G service last monthin Atlanta, Dallas, Houston, and Kansas City using an LG phone. It plans to add six more cities soon.
T-Mobile’s move on Tuesday represents a slight acceleration of its 5G-rollout strategy, which has lagged its main rivals. Previously, the company plannedto introduce service in the second half of the year, when more 5G-capable phones are available.
T-Mobile’s timing for 5G service was based on plans to provide it by combining airwaves in high-frequency bands, like 28 GHz, with lower bands, like 600 MHz. The Samsung Galaxy S10 5G only operates in high-frequency 5G bands.
But with rivals already offering 5G service, T-Mobile decided to start slightly early with only high-frequency bands—and then add lower bands later. Therefore, T-Mobile’s 5G Samsung phone won’t be fully compatible with all bands in T-Mobile’s 5G network. The phone is still able to use slower 4G service on the lower bands.
“We look forward to bringing broader 5G to customers later this year when low-band capable devices are available,” a T-Mobile spokesman said.
The combined service would—theoretically—let customers avoid the challenges of using only high or lower frequency airwaves for 5G. So far, AT&T and Verizon are using only higher frequencies, sometimes referred to as millimeter-wave bands, while Sprint is using only a lower-frequency band.
High-frequency bands provider greater capacity for 5G data downloads, but wireless signals don’t travel as far as in lower frequency bands. The lower bands, commonly used for 4G service today, travel long distances and more easily pass through obstacles like trees and rain, but they carry less information and thus limit download speeds.
—The fall and rise of VR: The struggle tomake virtual reality get real
—“It’s just lazy”: Current’s CEO onFacebookCalibra’s similar logo
—Slack went publicwithout an IPO. Here’s how a direct offering works
—Welcome to the next generation ofcorporate phishing scams
—Listen to our new audio briefing,Fortune500 Daily
Catch up withData Sheet,Fortune‘s daily digest on the business of tech. |
Chinese buyers are pulling out of New York real estate in droves
Chinas capital controls are making their mark on New Yorks luxury real estate market. In an effort to shore up its currency, the worlds second biggest economy has been cracking down on money leaving the country, and there are significant concerns (paywall) about its real estate developers levels of US dollar debt. The Ethiopian Airlines 737 Max crash could warrant historic punitive damages against Boeing Having briefly been the main movers and shakers in New York real estate, Chinese developers have fallen behind the Canadians, the Germans and the Dutch. As trade war tensions increase and having money in the United States becomes less desirable, many of those developers have decided to service their debts by offloading massive New York properties, according to the Financial Times (paywall). Sign up for the Quartz Daily Brief , our free daily newsletter with the worlds most important and interesting news. More stories from Quartz: Five reasons English speakers struggle to learn other languages Ten days of utter silence pulled me back from the brink of a mental breakdown |
What Kind Of Share Price Volatility Should You Expect For Renasant Corporation (NASDAQ:RNST)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Anyone researching Renasant Corporation (NASDAQ:RNST) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
View our latest analysis for Renasant
Zooming in on Renasant, we see it has a five year beta of 1.22. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If this beta value holds true in the future, Renasant shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Beta is worth considering, but it's also important to consider whether Renasant is growing earnings and revenue. You can take a look for yourself, below.
Renasant is a reasonably big company, with a market capitalisation of US$2.0b. Most companies this size are actively traded with decent volumes of shares changing hands each day. It takes a lot of money to influence the share price of large companies like this one. That makes it interesting to note that its share price has a history of sensitivity to market volatility. There might be some aspect of the business that means profits are leveraged to the economic cycle.
Since Renasant 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 RNST is a good investment for you, we also need to consider important company-specific fundamentals such as Renasant’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 RNST’s future growth? Take a look at ourfree research report of analyst consensusfor RNST’s outlook.
2. Past Track Record: Has RNST 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 RNST's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how RNST 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. |
A Tale of Two New Theme Park Rides
The two hottest theme park rides for the peak summer travel season technically opened in the springtime. Millennium Falcon: Smugglers Run opened at Disney 's (NYSE: DIS) original theme park on May 31, part of the heavily themed 14-acre Star Wars : Galaxy's Edge expansion at Disneyland. Comcast 's (NASDAQ: CMCSA) Universal Orlando followed two weeks later with Hagrid's Magical Creatures Motorbike Adventure, a high-tech family coaster that's been slammed by mechanical malfunctions and weather delays. The two companies behind the country's most popular theme parks -- accounting for all nine of the most visited theme parks in the U.S. and 15 of the 16 busiest destinations worldwide -- took different approaches to managing crowds. Comcast also tried to raise the bar in coaster experiences without extensive testing or the foresight to plan for the stormy summer season in Florida, and it's paying the price. Concept art for Star Wars: Galaxy's Edge in Disneyland. Image source: Disney. Smooth like blue milk When Disney realized that just one of the two rides that would anchor Star Wars : Galaxy's Edge was going to be ready -- and ahead of schedule at that -- it surprised fans by announcing that it would open the area in two phases, making the ride where passengers can be pilots, gunners, and engineers on the iconic Millennium Falcon available weeks ahead of the busy summer season and months before the more ambitious Rise of the Resistance would debut. Disney also decided to limit access to Star Wars : Galaxy's Edge to Disneyland hotel guests (ka-ching!) as well as folks who reserved four-hour reservation windows for the first three weeks and change of operation. The free online reservations were snapped up within a couple of hours, but the tight crowd control kept lines modest and experiences pleasant except for those on the outside looking in. Wait times for the new ride rarely extended more than an hour, but everyone wondered how things would play out come June 24, when all visiting park guests would have a crack at experiencing Star Wars : Galaxy's Edge. Story continues Disney nailed that, too. Monday was surprisingly breezy for the new land's first day of operation for all park guests. Folks did have to make virtual "boarding group" reservations once they entered Disneyland, but just about everyone who wanted in eventually got to experience the expansion. Wait times for Millennium Falcon: Smugglers Run topped out at about 80 minutes early in the day, falling to a modest half hour during the final few hours of the operating day. In short, the Star Wars : Galaxy's Edge rollout has been a huge success. Riding the storm out Things have been completely different for Comcast in Florida. Folks waited in lines as long as 10 hours to experience the new Harry Potter-themed coaster when it debuted at Universal Orlando's Islands of Adventure on June 13, and the ride's reliability has only gotten worse . Lately some guests have waited five to six hours in line, only to walk away without getting on the coaster as rain and more frequent mechanical breakdowns bump up the attraction's downtime. In a shocking move, Universal Orlando announced on social media last week that it wouldn't be opening Hagrid's Magical Creatures Motorbike Adventure until midday for the next several weeks as it works some of the bugs out. Really? The ride will always have limited capacity relative to the dueling coaster it replaced that was a people eater, and now it won't open until a couple of hours into the operating day? Choosing to open around noon -- just as the thunderstorms start to roll in this time of year -- also seems like a cruel prank on park guests. It's almost as if Comcast's park is deliberately limiting the hours of availability to keep wear and tear in check for a ride that clearly wasn't ready for prime time even under idyllic weather conditions. A month ago it seemed as if Comcast would be the one raising the bar with a virtual queue system -- which it can't implement as long as downtime is the new normal. It also now has the advantage of a ride universally loved by the handful of guests who have been able to experience it. Millennium Falcon: Smugglers Run has generated mostly positive reviews, but it's being seen as more an evolutionary than a revolutionary step up in Disney imagineering. Universal Orlando's woes are a sharp contrast to the smooth rollout for Disney, and that's welcome news for the House of Mouse, as it will introduce the same 14-acre Star Wars expansion to its larger Florida resort in two months. Disney World will pose some new logistical challenges given that it draws more than twice as many annual visitors as Disneyland and has far more on-site resorts, but Disney's already a step ahead of the madness. It will open the new area to folks staying at Disney World hotels three hours before the park's official opening for the first two months beyond the expansion's debut weekend, a move that will naturally increase full-priced bookings at its over two dozen properties during a historically sleepy part of the year. Disney is finding ways to extend the hours of operation for its new ride, just as its rival is going the other way. It's safe to say which of the two theme park giants will win the industry's guests -- and profits -- this summer. More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market Rick Munarriz owns shares of Walt Disney. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy . |
Italy beat China 2-0 to continue dream World Cup return
MONTPELLIER, France (Reuters) - Italy beat China 2-0 to qualify for the quarter-finals of the women's World Cup in convincing fashion on Tuesday as their dream return to the tournament after a 20-year absence continued. Valentina Giacinti and Aurora Galli netted either side of the interval to set up a meeting with the Netherlands or Japan, who play later on Tuesday (1900 GMT). Italy have made it to the last eight of the women's World Cup only once, in the inaugural edition in 1991 when the group phase directly led to the quarter-finals. China, the 1999 runners-up, enjoyed a good spell before the break but failed to make it count as Italy keeper Laura Giuliani made some good saves. "It's an incredible result in a difficult game. Today was not a great match, but football is not just that... the girls gave everything," said coach Milena Bertolini. "Reaching the quarter-finals is a huge satisfaction. Now we need the warmth of the Italians, because the more we go on, the more the level increases." "Weve done a good job. We need to do much better. We couldnt win the game and I apologize to all the Chinese fans," said China coach Jia Xiuquan. "We understood Italy very well and it was a good game. This is football. Whoever makes mistakes first, has to pay. Bertolini's team were focused from the outset and were rewarded after 15 minutes as Giacinti started and finished the move for Italy's opener. She broke down the right flank and her cross was met by Barbara Bonansea, who played in Elisa Bartoli. The fullback's attempt was parried by China keeper Peng Shimeng into the path of Giacinti, who had followed up to stab home from close range. The Azzurre went close to doubling their tally when Valentina Bergamaschi's fierce angled shot forced Peng to save at full stretch. China had a couple of chances through Wang Yan but Italy keeper Giuliani stayed alert to preserve her team's lead, as the pressure on her goal increased thanks to some fine creative play by Wang Shuang. Story continues Italy, however, regained the momentum early in the second half when Galli, who had replaced the injured Cristiana Girelli in the first half, found the back of the net with a low 20-metre strike in the 50th minute. It was her third goal of the tournament, with all three having been scored after she came off the bench. China pushed to find a breakthrough but Italy's back four were largely untroubled as they kept their opponents at bay until the final whistle. (Reporting by Julien Pretot; Editing by Toby Davis and Pritha Sarkar) |
Three Things You Should Check Before Buying FirstEnergy Corp. (NYSE:FE) For Its Dividend
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Could FirstEnergy Corp. (NYSE:FE) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
A high yield and a long history of paying dividends is an appealing combination for FirstEnergy. We'd guess that plenty of investors have purchased it for the income. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Click the interactive chart for our full dividend analysis
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. 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 75% of FirstEnergy's profits were paid out as dividends in the last 12 months. It's paying out most of its earnings, which limits the amount that can be reinvested in the business. This may indicate limited need for further capital within the business, or highlight a commitment to paying a dividend.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Unfortunately, while FirstEnergy pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. It's positive to see that FirstEnergy's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
As FirstEnergy has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. With net debt of more than 5x EBITDA, FirstEnergy could be described as a highly leveraged company. While some companies can handle this level of leverage, we'd be concerned about the dividend sustainability if there was any risk of an earnings downturn.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 2.18 times its interest expense, FirstEnergy's interest cover is starting to look a bit thin. Low interest cover and high debt can create problems right when the investor least needs them. We're generally reluctant to rely on the dividend of companies with these traits.
We update our data on FirstEnergy every 24 hours, so you can always getour latest analysis of its financial health, here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. FirstEnergy has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been cut by more than 20% on at least one occasion historically. During the past ten-year period, the first annual payment was US$2.20 in 2009, compared to US$1.52 last year. This works out to be a decline of approximately 3.6% per year over that time. FirstEnergy's dividend has been cut sharply at least once, so it hasn't fallen by 3.6% every year, but this is a decent approximation of the long term change.
When a company's per-share dividend falls we question if this reflects poorly on either the business or management. Either way, we find it hard to get excited about a company with a declining dividend.
With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see FirstEnergy has grown its earnings per share at 17% per annum over the past five years. EPS are growing rapidly, although the company is also paying out more than three-quarters of its profits as dividends. If earnings keep growing, the dividend may be sustainable, but generally we'd prefer to see a fast growing company reinvest in further growth.
To summarise, shareholders should always check that FirstEnergy'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 FirstEnergy has an acceptable payout ratio, although its dividend was not well covered by cashflow. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Ultimately, FirstEnergy comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 12 analysts we track are forecasting for FirstEnergyfor 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. |
What cannabis and fake meat have in common right now
There are obvious similarities right now between the explosion of cannabis companies and the fervor around plant-based meat products:rapid M&A activity;overhyped product launches; andsoaring stocks that are giving massive valuationsto companies that still have very small revenue.
Tilray (TLRY), at its peak price last September, had a market cap of $15 billion, after posting $43 million in sales in 2018. Beyond Meat (BYND) is trading at a multiple 45 times its sales, with an $8.7 billion market cap on 2018 revenue of just $88 million.
The biggest question for both of these markets right now is: How big can they get?
The answer is all about TAM, or total addressable market. It’s the big impressive number that tech startups are throwing at venture capitalists these days to convince them to invest. A company’s current revenue is less relevant for investors than its potential revenue growth and potential customer base.
In North America, recreational marijuana is still only legal in 11 states and Canada; critics of these high-flying pot stocks see that as an obvious limiting factor, while bulls frame it positively as “long runway” to grow.
Beyond Meat is the only publicly traded “pure play” in the fake meat craze, which may help explain why it’s up 500% since its IPO. But its debut has prompted a parade of larger food companies, fromWhole FoodstoMcDonaldstoTyson, striking deals to jump into the fake meat business—or at leaststating their intentionto jump in.
Practicallyevery day now, a big food company announces a plant-based burger launch, or a celebrity or pro athlete promotes a new CBD endorsement.
The problem is that many TAM projections look wildly overinflated.
Beyond Meat CEO Ethan Brown, speaking to Yahoo Finance on May 2 just minutes after his company went public, casually said that his company is tackling a “$1.4 trillion market that has seen very little disruptive innovation recently, or throughout history really.”
That is a gargantuan number: $1.4 trillion. Where does it come from? It is the widely-cited figure for the entire global meat industry. So for Brown to frame his company’s TAM in that context is a bit of a stretch: it supposes that Beyond Meat could convert everyone in the world who eats meat to eating plant-based alternatives. But it’s a nice giant TAM number to throw around. (Another important acronym for Beyond Meat, in its effort to convert carnivores to plant-based protein, is CAC: customer acquisition cost.)
In the cannabis business, you see similarly eye-popping numbers. DataTrek, using two “relatively mature” marijuana markets (Colorado and Washington) to extrapolate estimates,determined this month that the cannabis industry’s TAM in the U.S. is $50 billionin projected annual sales. That would be very large for an industry that saw $5.8 billion in sales last year of legal recreational marijuana and $4.6 billion in legal medical marijuana.
A new report from Arcview Market Research is a little bit more conservative. Arcview projects the legal cannabis industryto reach $40.6 billion by 2024. That would still represent a tripling of sales in just five years, and it presumes rapid legalization on a state-by-state basis, which is a significant leap.
Clearly the legal cannabis industry, and the plant-based protein trend, are growing rapidly and seeing enormous investment. They are both real businesses, around real products that are in demand. And all that investment rests on big faith in future growth, based on big sales projections.
But investors in these two industries ought to pay attention to what happened in the esports explosion, wheregrowth projections were vastly overinflatedand the rose-colored glasses eventually came off.
—
Daniel Roberts is a senior writer and show host at Yahoo Finance. Follow him on Twitter at @readDanwrite.
Read more:
Why pro athletes are flocking to CBD, from Lamar Odom to Bubba Watson
Beyond Meat CEO after IPO: 'I'm not going to look every day at the stock price'
Uber has lived through a parade of executive exits before its IPO
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn,YouTube, andreddit. |
Actuant Q3 Earnings Preview
Actuant(NYSE:ATU) releases its next round of earnings this Wednesday, June 26. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.
Earnings and Revenue
Actuant EPS will likely be near 40 cents while revenue will be around $301.65 million, according to analysts.
Actuant earnings in the same period a year ago was 39 cents. Quarterly sales came in at $317.10 million. If the company were to post earnings inline with the consensus estimate when it reports Wednesday, EPS would be up 2.56%. Revenue would be down 4.87% from the year-ago period. Here's how the company's reported EPS has stacked up against analyst estimates in the past:
View more earnings on ATU
[{"Quarter": "EPS Estimate", "Q2 2019": "0.18", "Q1 2019": "", "Q4 2018": "0.35", "Q3 2018": "0.36"}, {"Quarter": "EPS Actual", "Q2 2019": "0.19", "Q1 2019": "0.27", "Q4 2018": "0.39", "Q3 2018": "0.39"}]
Stock Performance
Shares of Actuant were trading at $23.64 as of June 25. Over the last 52-week period, shares are down 20.54%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.
Analyst estimates are adjusted higher for EPS and revenues over the past 90 days. Analysts seem to have settled on a Neutral rating with Actuant. The strength of this rating has maintained conviction over the past three months.
Conference Call
Actuant is scheduled to hold a conference call at 11:00 a.m. ET and can be accessed here:https://www.actuant.com/investor-news---events.html
See more from Benzinga
• Q4 Earnings Outlook For FedEx
• A Preview Of Synnex's Q2 Earnings
• Micron Technology Q3 Earnings Preview
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Is TransAlta Renewables Inc.'s (TSE:RNW) High P/E Ratio A Problem For Investors?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll look at TransAlta Renewables Inc.'s (TSE:RNW) P/E ratio and reflect on what it tells us about the company's share price.TransAlta Renewables has a price to earnings ratio of 14.79, based on the last twelve months. That is equivalent to an earnings yield of about 6.8%.
Check out our latest analysis for TransAlta Renewables
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for TransAlta Renewables:
P/E of 14.79 = CA$13.97 ÷ CA$0.94 (Based on the year to March 2019.)
A higher P/E ratio means that investors are payinga higher pricefor each CA$1 of company earnings. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future.
Earnings growth rates have a big influence on P/E ratios. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
TransAlta Renewables's 375% EPS improvement over the last year was like bamboo growth after rain; rapid and impressive. Having said that, the average EPS growth over the last three years wasn't so good, coming in at 9.2%.
The P/E ratio indicates whether the market has higher or lower expectations of a company. As you can see below, TransAlta Renewables has a higher P/E than the average company (13.7) in the renewable energy industry.
Its relatively high P/E ratio indicates that TransAlta Renewables shareholders think it will perform better than other companies in its industry classification. Shareholders are clearly optimistic, but the future is always uncertain. So investors should always consider the P/E ratio alongside other factors, such aswhether company directors have been buying shares.
Don't forget that the P/E ratio considers market capitalization. Thus, the metric does not reflect cash or debt held by the company. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.
Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio.
TransAlta Renewables has net debt worth 24% of its market capitalization. This could bring some additional risk, and reduce the number of investment options for management; worth remembering if you compare its P/E to businesses without debt.
TransAlta Renewables's P/E is 14.8 which is about average (15.1) in the CA market. With only modest debt levels, and strong earnings growth, the market seems to doubt that the growth can be maintained.
Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold.
You might be able to find a better buy than TransAlta Renewables. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Izabel Goulart Sets Mykonos on Fire in Her Tiny Bikini
Victoria's Secret Angel, Izabel Goulart is enjoying herself on a beautiful summer vacation in Mykonos ... and we are enjoying these photos of her in a bikini. The 34-year old Brazilian supermodel was seen Tuesday lounging by the pool with her professional German soccer star boyfriend, Kevin Trapp. Wearing a canary-yellow string bikini, the stunning model was showing some major PDA with her man while soaking up the sun. 28-year-old Trapp, when he's able to stand, plays goalkeeper for Eintracht Frankfurt and also looked amazing while sporting some major washboard abs. She showed off her dangerous curves in an IG post, and said, "Summer 2019 Escape." The beautiful stars have been in a relationship for about four years. In a recent YouTube interview, The Brazilian beauty revealed the couples bedroom antics. Kevin and I make love a lot four or five times a week," she explained. Goulart added, "But, if he has played in an important game and his team loses, I can make myself beautiful, have my nails done and wear my best lingerie and there still wont be any sex. Don't feel too bad for them, as the Sports Illustrated Swimsuit model explained, "However, on the days when the team has won, we dont get a wink of sleep." Grabbing a quick snack by the pool, the two were seen sharing what looked like a plate of BBQ. Goulart, who speaks Portuguese, English and French, is speaking our language with her smoking hot pics. Time for us to (finally) start working on our summer beach body ... or not. |
Here's What TransAlta Renewables Inc.'s (TSE:RNW) P/E Is Telling Us
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we'll show how TransAlta Renewables Inc.'s (TSE:RNW) P/E ratio could help you assess the value on offer.TransAlta Renewables has a P/E ratio of 14.79, based on the last twelve months. In other words, at today's prices, investors are paying CA$14.79 for every CA$1 in prior year profit.
View our latest analysis for TransAlta Renewables
Theformula for P/Eis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for TransAlta Renewables:
P/E of 14.79 = CA$13.97 ÷ CA$0.94 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio means that investors are payinga higher pricefor each CA$1 of company earnings. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future.
P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. That means even if the current P/E is high, it will reduce over time if the share price stays flat. So while a stock may look expensive based on past earnings, it could be cheap based on future earnings.
In the last year, TransAlta Renewables grew EPS like Taylor Swift grew her fan base back in 2010; the 375% gain was both fast and well deserved. Having said that, if we look back three years, EPS growth has averaged a comparatively less impressive 9.2%.
The P/E ratio indicates whether the market has higher or lower expectations of a company. You can see in the image below that the average P/E (13.7) for companies in the renewable energy industry is lower than TransAlta Renewables's P/E.
That means that the market expects TransAlta Renewables will outperform other companies in its industry. Clearly the market expects growth, but it isn't guaranteed. So further research is always essential. I often monitordirector buying and selling.
The 'Price' in P/E reflects the market capitalization of the company. So it won't reflect the advantage of cash, or disadvantage of debt. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio.
TransAlta Renewables has net debt worth 24% of its market capitalization. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt.
TransAlta Renewables trades on a P/E ratio of 14.8, which is fairly close to the CA market average of 15.1. Given it has reasonable debt levels, and grew earnings strongly last year, the P/E indicates the market has doubts this growth can be sustained.
When the market is wrong about a stock, it gives savvy investors an opportunity. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
Of courseyou might be able to find a better stock than TransAlta Renewables. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Latest: Minnesota court orders hearing on PolyMet permit
HOYT LAKES, Minn. (AP) — The Latest on the planned PolyMet copper-nickel mine in Minnesota (all times local): 1 p.m. The Minnesota Court of Appeals has ordered a hearing on alleged irregularities in how Minnesota regulators dealt with federal regulators over a water pollution permit for the planned PolyMet copper-nickel mine in northern Minnesota. The appeals court on Tuesday ordered a lower court to hold an evidentiary hearing as soon as practical. The court must review evidence from a leaked email sent by a top official at the Minnesota Pollution Control Agency to her counterparts at the U.S. Environmental Protection Agency asking them not to file written comments on PolyMet's permit during the public comment period. Critics say that kept federal regulators' criticisms off the public record. The court said in its order that there is "substantial evidence of procedural irregularities" that needs to be examined. ___ 11 a.m. Developers of a proposed copper-nickel mine in northern Minnesota are courting bankers for $950 million in financing, even as environmental groups push back against the project over water pollution fears. PolyMet Mining Corp. CEO Jon Cherry tells the Star Tribune that he's confident the project will move forward despite concerns over its environmental permits. Minnesota's legislative auditor recently announced an investigation into state regulators' handling of a water quality permit for the mine. It comes a month after the state's appeals court ruled in PolyMet's favor in a challenge from environmental groups. Cherry says global mining giant Glencore's ownership in the project will partly determine how it's financed. The Switzerland-based company holds a 29% equity stake in PolyMet, but the amount may grow. Developers hope to begin construction next year. |
Illinois joins 10 other U.S. states in legalizing recreational marijuana
By Karen Pierog CHICAGO (Reuters) - Illinois on Tuesday became the 11th U.S. state to legalize the recreational use of marijuana by adults after Governor J.B. Pritzker signed into law a bill that also provides for the removal of certain previous drug convictions and will generate new revenue for the financially troubled state. The Democratic governor hailed the measure, which was passed by the legislature last month, for allowing as many as 700,000 marijuana-related records and convictions to be erased. "This legislation will clear the cannabis-related records of nonviolent offenders through an efficient combination of automatic expungement, of gubernatorial pardon and individual court action," Pritzker said at a bill-signing event. "Today, we're giving hundreds of thousands of people the chance at a better life." Illinois is the second state to legalize small amounts of marijuana for adult use solely through the legislative process and the first to authorize retail sales of the substance legislatively. Vermont lawmakers approved adult marijuana use in 2018. Since 2012, voters in nine states and the District of Columbia approved legalization measures, according to the National Conference of State Legislatures. Marijuana-related bills were considered in 25 state legislatures this year, including in New York and New Jersey, but Illinois is the only one to enact a measure so far, according to advocacy group Marijuana Policy Project. The Illinois law, which legalizes adult usage and allows for marijuana sales from licensed dispensaries starting on Jan. 1, is projected to generate over $57 million in new tax and fee revenue in fiscal 2020, which begins on July 1. Marijuana-related tax revenue is estimated to climb to $140.5 million in fiscal 2021 and to $375.5 million in fiscal 2024, according to Illinois' revenue department. Some of the proceeds after administrative and other expenses are earmarked for drug prevention, public safety, and programs in disadvantaged communities, while 35% will flow into Illinois' general fund and 10% will be tapped to pay down the state's huge pile of overdue bills, which totaled $6.6 billion on Tuesday. The use of marijuana for medical purposes in Illinois was authorized starting in 2014. Other states that have legalized recreational marijuana are Colorado, Washington, Oregon, California, Alaska, Maine, Massachusetts, Nevada and Michigan. (Reporting by Karen Pierog in Chicago; Editing by Matthew Lewis) |
Four Corners Property Trust (NYSE:FCPT) Shareholders Have Enjoyed A 41% Share Price Gain
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Investors can buy low cost index fund if they want to receive the average market return. But in any diversified portfolio of stocks, you'll see some that fall short of the average. For example, theFour Corners Property Trust, Inc.(NYSE:FCPT) share price return of 41% over three years lags the market return in the same period. In the last year the stock has gained 13%.
View our latest analysis for Four Corners Property Trust
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Over the last three years, Four Corners Property Trust failed to grow earnings per share, which fell 8.6% (annualized). This means it's unlikely the market is judging the company based on earnings growth. Therefore, we think it's worth considering other metrics as well.
Interestingly, the dividend has increased over time; so that may have given the share price a boost. It could be that the company is reaching maturity and dividend investors are buying for the yield. The revenue growth of about 18% per year might also encourage buyers.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic.
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Four Corners Property Trust's TSR for the last 3 years was 59%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
We're pleased to report that Four Corners Property Trust rewarded shareholders with a total shareholder return of 18% over the last year. That's including the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 17%. The improving returns to shareholders suggests the stock is becoming more popular with time. Before spending more time on Four Corners Property Trustit might be wise to click here to see if insiders have been buying or selling shares.
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. |
Mitsubishi North America to move headquarters from California to Tennessee
Mitsubishi Motors North America Inc. is relocating its headquarters to the Nashville area from California in a move that will strengthen the Japanese automaker's financial ties to Nissan – and bolsterTennessee's statureas a major U.S. auto hub.
The move, expected to be completed this year, will bring 200 jobs to Franklin, Tennessee, just south of Nashville, including positions in sales, marketing, IT, human resources, communications, parts and service, product planning, dealer operations, finance and legal. Mitsubishi expects to invest $18.25 million in its new site.
Mitsubishi cited Franklin's "vibrant technology skillset" in its announcement, as well as its new proximity to Nissan among its reasons for relocating. Mitsubishi is part of a global alliance with Nissan and Renault that seeks to align the companies to boost development and facilitate cost saving, according to the company.
“Mitsubishi Motors is changing the way we go to market in the United States, and it is leading to a rebirth of the company,” said Fred Diaz, Mitsubishi president and chief executive officer. “As we drive toward the future, this is the perfect time for us to move to a new home. While we say farewell to the Golden State with a heavy heart, we’re excited to say hello to Music City.”
American made:Jeep Cherokee remains the most American car of the year, according to Cars.com
Mitsubishi, which will begin moving in August, has not determined a site for its offices, but it will move operations to a temporary office in Franklin. Company officials expect to invite about 60 of its 200 employees in California to make the move to Franklin and will hire the remainder of employees from the Franklin office.
The automaker's arrival further cements Tennessee as an automotive powerhouse, perhaps second only to Detroit in terms of industry significance. With $22.9 billion of foreign investment and 130,000 people employed, Tennessee’s automotive manufacturing cluster includes three major assembly plants and automotive operations in at least 86 of the state's 95 counties.
Nissan North America, which has its headquarters in Franklin, employs more than 12,000 people in Middle Tennessee and General Motors in Spring Hill employs close to 3,400. General Motors unveiled a new vehicle this year at the plant and said it was investing $300 million in Tennessee. Volkswagen employs about 1,700 workers and 3,200 temporary workers at its Chattanooga plant.
“The reputation of Tennessee’s business climate and skilled workforce has attracted countless world-class businesses to our state," said Gov. Bill Lee. "Over the years, Tennessee has become the epicenter of the Southeast’s thriving automotive sector, and I’m proud Mitsubishi Motors will call Franklin its U.S. home and bring 200 high-quality jobs to Middle Tennessee."
Money city:What are the richest towns in America?
The announcement is the latest in a string of significant corporate relocations and expansions for the Middle Tennessee region. Last year,AllianceBernsteindesignated Nashville its new headquarters instead of New York andEYandAmazonchose Nashville for new operations. In March,SmileDirectClubalso announced a major expansion for its Nashville headquarters and last week, publicly tradedHarrow Healthsaid it was moving to Nashville from California.
Headquarter jobs have grown by 37% in Tennessee since 2013, according to state economic officials. Local business leadershad predicted recruiting momentum to continue even after the significant wave of success in 2018.
The Mitsubishi relocation follows six years of consecutive annual sales growth and comes as the company seeks to reinvent itself with new leadership and dealer partnerships, according to the company. Eighty percent of leadership is new to Mitsubishi or new in their role and 34 dealer partners have been added in the U.S.
Mitsubishi leaders have described the company's new strategy as "small but beautiful," with a focus on steady profitability over rapid growth, according to Automotive News.
The company has faced scrutiny surrounding an alliance with Renault and Nissan after Carlos Ghosn, former chairman of the three companies, was arrested in Japan last year on allegations of financial misconduct. Nissan has a 34% stake in Mitsubishi, according to Automotive News.
Mitsubishi narrowed its relocation search to Dallas and the Nashville area before deciding on Franklin, said spokesman Jeremy Barnes, pointing to schools, quality of life and the climate, in addition to its location near Nissan.
"The scale swung towards Franklin for all the things it takes to do business in Tennessee and the Nashville area – cost of doing business, cost of living for our employee team, the lifestyle the area offers," Barnes said.
Franklin Mayor Ken Moore also emphasized the value of low taxes and a strong schools reputation in Williamson County in helping fuel the city's economic development success.
"We are working hard to create opportunities for companies to come in," Moore said. "We have a competitive advantage because we’ve done long-range planning into our future with wastewater, land use, capital projects."
Elizabeth McCreary, chief economic development officer at Williamson, Inc., said the Mitsubishi addition to Franklin makes sense, given the area's already established auto sector and its ability to recruit talent.
"Industries like this do have a tendency to cluster together. They find they can reach the right talent and access the right pool of people," McCreary said. "As long as Williamson County can be a place of a high quality of life, more will come here."
Williamson County offered incentives to Mitsubishi, but McCreary declined to disclose any details because the company is under lease negotiations.
Reach Jamie McGee on Twitter@JamieMcGee_.
Nissan Franklin: 1,850 jobs
Nissan Smyrna: 8,000 jobs
General Motors in Spring Hill: 3,400 jobs
Mitsubishi: 200 jobs
Harrow Health: 27 jobs
Xtend Healthcare: 200 new jobs, in addition to existing 700 in Tennessee
SmileDirectClub: 2,010 jobs
AllianceBernstein: 1,050 jobs
Amazon: 5,000 jobs
EY: 600 jobs
This article originally appeared on Nashville Tennessean:Mitsubishi North America to move headquarters from California to Tennessee |
The Four Corners Property Trust (NYSE:FCPT) Share Price Has Gained 41% And Shareholders Are Hoping For More
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Buying a low-cost index fund will get you the average market return. But in any diversified portfolio of stocks, you'll see some that fall short of the average. Unfortunately for shareholders, while theFour Corners Property Trust, Inc.(NYSE:FCPT) share price is up 41% in the last three years, that falls short of the market return. In the last year the stock has gained 13%.
See our latest analysis for Four Corners Property Trust
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During the three years of share price growth, Four Corners Property Trust actually saw its earnings per share (EPS) drop 8.6% per year. Thus, it seems unlikely that the market is focussed on EPS growth at the moment. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.
We note that the dividend is higher than it was preciously, so that may have assisted the share price. It could be that the company is reaching maturity and dividend investors are buying for the yield. The revenue growth of about 18% per year might also encourage buyers.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
Thisfreeinteractive report on Four Corners Property Trust'sbalance sheet strengthis a great place to start, if you want to investigate the stock further.
When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Four Corners Property Trust, it has a TSR of 59% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!
We're pleased to report that Four Corners Property Trust rewarded shareholders with a total shareholder return of 18% over the last year. And yes, that does include the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 17%. The improving returns to shareholders suggests the stock is becoming more popular with time. Before spending more time on Four Corners Property Trustit might be wise to click here to see if insiders have been buying or selling shares.
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. |
Border Patrol chief resigns as migrant children are sent back to Texas camp
About 100 of the more than 300 migrant children who were moved Monday from a detention facility where conditions had been described as unconscionable were moved back to the camp on Tuesday. Around the same time, acting Customs and Border Protection Commissioner John Sanders, whose agency runs the much-criticized operation housing migrant children who have been separated from their parents, announced his resignation. On Monday, Rep. Veronica Escobar who represents the El Paso, Texas, area said that the government had moved most of the children from a facility in the small town of Clint, Texas, that housed migrants as young as a few months old. Over the last week, there have been reports from lawyers and physicians who visited the camps that many of the children were dirty, some of them ill, and that young children were being left in the care of detainees themselves, sometimes only 8 years old. The kids had colds and were sick and said they didnt have access to soap to wash their hands. It was an alcohol-based cleanser. Some kids who were detained for two to three weeks had only one or two opportunities to shower, Clara Long, a senior researcher for Human Rights Watch, has said of the Clint facility . Attempts by Clint locals to donate supplies to the facility were rejected, according to a Texas Tribune report . Acting U.S. Customs and Border Protection Commissioner John Sanders (Photo: J. Scott Applewhite/AP) Congress should urgently investigate and take action to stop these unconscionable abuses, such as requiring immigration agencies to release these children as soon as possible to their family members, added Long . On Tuesday, CNN reported that 100 of the children who had been temporarily relocated to an unspecified facility were moving back. Customs and Border Protection Commissioner John Sanders did not specifically mention the deteriorating conditions at border camps in his resignation letter , writing that he encouraged everyone to reflect on all that you have accomplished as a team. My hope is you build upon your accomplishments and embrace new opportunities, remain flexible, and continue to make CBP extraordinary. He wrote that he would serve through July 5. Story continues I didnt speak to him, said President Trump of Sanderss resignation. I dont think Ive ever spoken to him, actually. We have some very good people running it and I dont know anything about it. I hear hes a very good man, I hear hes a good person. I dont know him, I dont think I ever spoke to him. Sanders has led the organization since April, when then-CBP Commissioner Kevin McAleenan was elevated to acting homeland security secretary, replacing the departing Kirstjen Nielsen. People attempted to drop off diapers and toys for detained children at the immigration detention center in Clint, Texas. (Photo: Armando Martinez Photography) Sanders acknowledged in an interview with the Associated Press earlier this month that children needed better medical care, and he urged Congress to pass an emergency funding package that would include $3 billion to care for unaccompanied children. President Trump and Vice President Mike Pence have blamed Congress for the conditions . However, in a call Tuesday, a CBP official disputed the lawyers accounts and said the children housed there were given periodic access to showers and unlimited snacks. I personally dont believe these allegations, said the CBP official, who spoke on the condition he not be identified, according to the New York Times . _____ Read more from Yahoo News: Former top U.S. diplomat deplores policy toward Iran 'untethered to any coherent strategy' Pentagon secretly struck back against Iranian cyberspies targeting U.S. ships Trump admits his Cabinet had 'some clinkers' For Dems, there's no chickening out at Clyburn's fish fry Chore wars: Are men doing enough housework? PHOTOS: They fled Venezuela's crisis by boat then vanished |
Washington town where Jeff Bezos, Bill Gates live is having a budget crisis
EvenJeff BezosandBill Gates, the two richest people in the world, can’t prevent the town they live in from experiencing a budget crisis.
Officials in Medina, Wash. — located about 5 miles northwest ofSeattleand ranked the seventh richest ZIP code in the U.S. byBloomberg— said the town is running out of money to support services, including police, fire and parks. Atown newslettersent out this month is urging residents to vote yes on a ballot measure that would lift the property tax cap.
“You may find it hard to imagine that the City doesn’t have enough income to sustain current service levels, particularly in this economy. While property values continue to rise, the City’s tax revenues don’t rise in tandem,” the newsletter read.
“Since 2001, local governments (like Medina) are not allowed to raise their portion of the property tax levy beyond one percent a year without a vote of the public,” the newsletter continued. “The City’s total 2019 property tax income will be $2.8 million, and a 1 percent increase would only yield an additional $28,000 for the City in 2020, not nearly enough to cover the rising cost of services.”
The town said fire services costs increased nearly twofold in 2019.
“This fall, the question of how to maintain Medina will go to voters. The Medina City Council is placing a levy lid lift measure on the Nov. 2019 ballot. If approved, the levy lid lift would provide funds to continue current service levels without significant cuts,” the newsletter stated.
If residents vote to pass the ballot measure in November, the property tax would increase from 64 cents for every $1,000 of assessed value to 84 cents per $1,000,The Seattle Timesreported.
“It’s really just a math question,” Michael Sauerwein, Medina’s city manager, told The Seattle Times. “The rate of inflation for the cost of core government services is going up faster than revenues.”
The town said only 8 percent of the property tax revenue goes back into Medina. Most of the property taxes collected funds services for the county and state such as schools and transportation system.
Bezos and Gates have specific links to the state. Amazon’s headquarters resides in Seattle while Microsoft headquarters' main campus is located in Redmond.
Gates’ Medina mansion is also well known. Dubbed “Xanadu 2.0,” the $60 million house has 24 bathrooms and took seven years to build,Curbed Seattlereported. The billionaire also reportedly owns several houses surrounding the property for additional privacy.
CLICK HERE TO GET THE FOX BUSINESS APP
Bezos lives not too far from Gates in a 5.35-acre estate that includes two structures, a boathouse and caretaker's cottage,Curbedreported.
Town officials emphasized Medina is on an “unsustainable path,” with a projected city deficit at $500,000 by 2020. The deficit is expected to reach $3.3 million by 2025.
Related Articles
• JP Morgan Chase CEO Jamie Dimon: Student loans are 'hurting America'
• Betsy DeVos sued by students over loan forgiveness
• Student debt elimination 'immoral,' unfair to hardworking taxpayers: Republican lawmaker |
Amazon Prime Day to Expand to 48 Hours
If you love Amazon’s Prime Day, the 2019 version promises to be better than ever before. Amazon has announced that its annual shopfest will be spread out over two days this year — it will start at midnight on Monday, July 15, and run for 48 hours. The online retail giant says it will offer more than one million deals worldwide during the 48-hour Prime Day event. And you can enjoy deals starting now. According to Amazon: “…members will find the biggest Prime Day deals ever on Alexa-enabled devices. And one of the best Prime Day deals starts today — save $120 on Toshiba HD 43-inch Fire TV Edition Smart TV , only $179.99, through June 30 or while supplies last.” You can snag one other deal right now: Save up to 40% off the Key for Garage myQ Smart Garage Hub + Amazon Cloud Cam (Key Edition) Kit . The price is now $99.98, Amazon’s lowest ever. Saving money when you shop at Amazon To enjoy these deals, you’ll need to sign up for Amazon Prime . There are many reasons to do so. For more on the advantages of membership, check out “ How Amazon Prime Can Save You $665 a Year. ” While Prime can help you score some great deals, you can increase your savings by shopping intelligently. For example, tracking Amazon pricing can help you determine when an item drops to its lowest price. A great way to do this is to use CamelCamelCamel . As we explain in “ 7 Free Tools That Will Save You More Money on Amazon Purchases “: “This Amazon price tracker will email you when an item you’re watching drops to the price you want to pay. Set up an account, add links to the products you want to watch, and then set a desired price.” Watch the video of ‘Amazon Prime Day to Expand to 48 Hours’ on MoneyTalksNews.com. Finally, be sure to read “ 7 Ways You Can Score Free Amazon Gift Cards ” to make sure you squeeze the most savings out of your Amazon shopping. Do you plan to shop during Prime Day? Let us know in comments below or on our Facebook page . This article was originally published on MoneyTalksNews.com as 'Amazon Prime Day to Expand to 48 Hours' . More from Money Talks News 9 Things You Really Can’t Return to Amazon 7 Secret Sections of Amazon That You Should Know About 9 Things That Are Free on Amazon — No Prime Necessary View comments |
Kim Kardashian West Puts a Fresh Spin on Summers Coolest Updo
A blunt short cut may be the quickest way to make a hair change that beats the heat this summer, but Kim Kardashian West has a new solution in the form of a casual half-up pony. The mom of four stepped out in Calabasas yesterday with a slick half bun that called to mind the retro I Dream of Jeanie styles that have dominated summer streets for the better part of the last few years. The partially pulled up style has been worn by everyone from Jessica Alba to Ciara even Kendall Jenner gave it a go last week. But leave it to Kardashian West to up the ante on summers hottest above-the-neck trend, giving it her own spin: Rather than sporting the style with loose undone waves as fellow It-girls have done, the social media star showed off her latest choppy bob by slicking her roots with a dollop of sculpting gel, and fastening the high pony super tight. Consider the effortless Olsen-approved half-updo the seasons coolest hair trick, and one that never goes out of style. See the videos. Originally Appeared on Vogue |
Lennar Corp (LEN) Q2 2019 Earnings Call Transcript
Image source: The Motley Fool.
Lennar Corp(NYSE: LEN)Q2 2019 Earnings CallJun 25, 2019,11:00 a.m. ET
• Prepared Remarks
• Questions and Answers
• Call Participants
Operator
Welcome to Lennar's Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the presentation we will conduct a question-and-answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time.
I will now turn the call over to Alexandra Lumpkin for the reading of the forward-looking statement.
Alexandra Lumpkin--Associate General Counsel
Thank you, and good morning. Today's conference call may include forward-looking statements, including statements regarding Lennar's business, financial condition, results of operations, cash flows, strategies and prospects. Forward-looking statements represent only Lennar's estimates on the date of this conference call and are not intended to get any assurance as to actual future results, because forward-looking statements relates to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could affect future results and may cause Lennar's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements.
These factors include those described in this morning's press release and our SEC filings, including those under the caption Risk Factors contained in Lennar's annual report on Form 10-K most recently filed with the SEC. Please note that Lennar assumes no obligation to update any forward-looking statements.
Operator--Associate General Counsel
I would like to introduce your host Mr. Stuart Miller, Executive Chairman. You may begin.
Stuart Miller--Executive Chairman
Good morning. Thank you and good morning everybody. This morning, I am here with Rick Beckwitt, our Chief Executive Officer; Jon Jaffe our President; Diane Bessette, our Chief Financial Officer; Dave Collins, our Controller; of course, you just heard from Alex and a number of others.
I'm going to go ahead and start as we always do with a brief overview. Rick and Jon will give an operational update and then Diane will give further detail on our second quarter numbers as well as some additional guidance for the rest of the year. As always, when we get to Q&A, we would like to ask you to limit your questions to just one question and a follow-up, so that we can accommodate as many as we can.
So let me go ahead and begin by saying that we're very pleased to report a very solid second quarter performance, reflecting both a pickup of the homes that were lost in the first quarter due to weather conditions and the general recovery in the housing market. Deliveries improved 5% over last year while new orders improved to last year's levels and exceeded the upper end of our guidance by just a little over 2%. In the second quarter, we achieved net earnings of over $421 million or $1.30 per share and our strong cash position enabled us to opportunistically repurchase another 1 million shares of stock and set up the repayment of $500 million of debt, just after the quarter ended.
At quarter's end and before the debt repayment, we recorded a debt to total capital ratio of 38.3%, which is a 410 basis point improvement over last year's level. Overall our results reflect the fact that the housing market strengthened throughout the second quarter, confirming and continuing the trend that we reported on our earnings call last quarter. We clearly saw traffic and sales continue to strengthen in the second quarter as the combination of lower interest rates, together with at least slower price appreciation and in some instances slightly lower prices has positively impacted affordability, and that together with low unemployment, wage growth, consumer confidence and economic growth drove the consumer to return to a more affordable housing market. And while the current market conditions would not be considered robust, they would be considered solid.
We believe that the housing market is generally running in the performance channel that is bounded on the downside by the production deficit that has persisted for the past decade and has kept housing supply constrained, while it is somewhat moderated on the upside by rising land and labor costs as well as affordability limit. Within this channel, the market is generally continuing to improve and we believe we'll continue to improve for the foreseeable future.
Although we reported gross margins at the lower end of our previous guidance, this reflects the greater than expected incentives used during the market slow down or pause to maintain volume and ensure that we achieve our 2019 closing targets between 50,000 and 51,000 homes, and we remain confident that we will achieve this target this year. We expect to see our margins improve steadily throughout the remainder of the year as prices remain stable and incentives continue to subside. Accordingly, we expect to generate strong cash flow for the remainder of 2019 and expect to continue to use excess cash flow to both pay down debt while opportunistically repurchasing stock.
We're well positioned to thrive in the solid market condition. We've continued to refine our land strategy to position ourselves for strong performance and the strengthening balance sheet. Rick's going to update further -- this further in his remarks and additionally, we have noted in -- as we've noted in prior calls, we continued to invest capital in technology initiatives that are redefining the future of both our company and our industry. We believe that our tech initiatives represent significant opportunity and upside for the company as we create efficiencies and internal operations, reduce our SG&A and reduce our cost structure.
In the second quarter, our SG&A continued its downward trend with a lowest second quarter level ever at 8.4%. We continue to be laser focused on progress on our technology adoptions and change management and this is being incrementally reflected in bottom line improvements while we enhance our customer experience and our customer interface. We're still at the very beginnings of opportunities that we envision as we're going to build an ever better and more efficient mousetrap.
Before I turn it over to Rick, Jon, and Diane, let me just say that we remain encouraged by both Lennar's position and market conditions for the remainder of the year. Our size and scale in each of our strategic markets continues to manage -- to help us manage costs and production in a land and labor constrained market. Our focus on technology is driving efficiency that is reflected in our consistent improvement in SG&A. Our strong cash flow and bottom line profitability are continuing to enable us to reduce debt and repurchase shares. Our strong balance sheet continues to improve and position us for the future. And our strategy of shedding non-core assets continues to drive an intensified focus on our core homebuilding business. As the home building market continues to solidify in the wake of the recent pause, we're optimistic about our ability to deliver strong and consistent performance for the remainder of 2019.
And with that let me turn it over to the rest of the team. Rick?
Rick Beckwitt--Chief Executive Officer
Thanks, Stuart. In these recovery market conditions, our homebuilding operations executed at a high level and produced solid results. Homebuilding revenues for the second quarter totaled $5.2 billion, representing a 3% increase from 2018. This was driven by a 5% increase in deliveries to 12,729 homes and a 1% decrease in average sales price. Deliveries for the quarter exceeded the high end of our guidance as we were able to accelerate some third quarter closings into the second quarter.
Our gross margin for the quarter totaled 20.1%, which was within the range of prior guidance and flat sequentially with our first quarter. As Stuart mentioned, our second quarter gross margin was impacted by an increase in sales incentives offered to homebuyers during the market pause in the fourth quarter of 2018. Our margin was also slightly impacted by an increase in the number of closings coming from third-party option contracts versus on land we developed ourselves. This is in line with our land lighter strategy that is focused on maximizing cash flow and our internal rates return. Notwithstanding that our gross margins were down in the quarter, we expect our margins to increase in both Q3 and Q4 through a combination of reduced incentives and lower direct construction costs that Jon will talk about.
Our SG&A in the quarter was 8.4%. This marks an all-time second quarter low and highlights the power of our increased local market scale and our operating leverage. Homebuilding operating earnings on the sale of homes totaled $603 million, up 48% from the prior year. Net earnings for the quarter totaled $421.5 million, up 36% from 2018. New orders for the quarter increased 1% to 14,518 homes exceeding the high end of our Q1 guidance, from a dollar value perspective, new orders totaled $5.8 billion, which was down 4% from the prior year, reflecting an increase in sales incentives which I talked about, a higher percentage of entry-level homes and a transition away from the higher price -- CalAtlantic homes in the year ago period. Our average sales price will continue to move lower going forward as many new entry level communities come online. This is particularly the case in Texas, as all of our Texas markets in the last 18 months we've bought over 75% of the land that's targeted to entry-level product.
During the second quarter, we saw increased seasonal demand, which benefited from both lower mortgage rates and moderating sales price increases. Homebuyer sentiment improved throughout the quarter and we experienced solid traffic on both our website and our welcome home centers. While lower rates helped drive demand, we continue to price the market and offer incentives, although at reduced levels from the market pause to keep our homebuilding business on track to build and close more than 50,000 homes in 2019. We continue to believe that maintaining an even flow of steady production is the best operating strategy as it will drive higher operating margins, IRRs and increased shareholder value.
We ended the second quarter with a sales backlog of 19,061 homes with the total dollar value of $7.7 billion. This backlog, combined with our current housing inventory puts us in a great position to achieve strong operating results in fiscal 2019. Before I turn it over to Jon, let me give you a brief update on our land initiatives. The three strategic initiatives we discussed last quarter have continued to expand in both initial markets and into new markets. In the last quarter, these ventures had put under contract or closed more than 11,000 home sites. Lennar will build on the majority in some sites with selective sales to other builders to enhance the overall return in these ventures. As I said in the past, the majority of these home sites will be delivered to us fully developed on a rolling basis, so just-in-time inventory.
In the second quarter, we also announced another strategic transaction with Level Homes an enquest (ph) development in Raleigh, North Carolina. Through this transaction, we purchased 34 homes under construction and 29 developed home sites, more importantly in continuing with our asset light land strategy, we have a future right to purchase approximately 1,600 finished home sites across seven communities. These home sites will be delivered by enquest over the next six years, and this marks the beginning of a new strategic relationship in the Carolinas'.
Recognizing the continuing short supply of dwellings both for sale and for rent, we recently entered an agreement with one of our long standing third-party relationships to build homes that will be purchased by that third-party in the stand-alone rental community. This community is in Florida and is the first in what we believe will be an ongoing business strategy and relationship where we build and sell homes in bulk on land owned by third parties with no lease-up risk. We are actively discussing this program with several land owners and investors that control a large parcels of land, suitable for single-family rentals in locations where we have a leading market share and we are the low cost producer. We're optimistic that we can replicate this program and that we can leverage our buying power and building expertise to achieve outside returns and continue to lower SG&A. We love this new business model as it will generate high IRRs, strong margins, leverage our existing overhead with no accompanying land risk. This is a perfect expansion of our land-light strategy.
Now, I'll turn it over to Jon.
Jon Jaffe--President
Thanks, Rick. Today I'm going to give some color on the various cost factors that impact our cost of sales and the timing of how they flow through our deliveries. First, with respect to direct construction costs, there are several components impacting our direct costs. The positives are tailwinds that come from the drop in lumber prices, cost synergies and our production first operating platform. The headwinds are cost pressures from the ongoing labor shortage and tariffs. While there are many variables that affect our direct costs, including the mix of homes closing in any particular quarter, as we look back at Q2 and look forward at the next few quarters, we see that directionally our direct construction costs are decreasing.
In the second quarter, the cost of materials, which account for 57% of our directs were lowered sequentially by 0.5%. This is the first time in years that the cost of materials has dropped as lower cost lumber and synergies flow through our closings. The biggest factor impacting material cost is lumber, which represents approximately 30% (ph) of direct costs. The peak pricing for lumber was back in June of 2018 at approximately $600 per thousand board feet.That pricing went into place for homes we started in July through September of 2018, and those home deliver primarily in Q1 and Q2 of 2019. Lumber dropped to around $330 per thousand board feet in December of 2018, and then bounced back to $400 before trending to its low point earlier this month in June of $300 per thousand board feet.
The December pricing will impact home just started in January through March for Lennar, which will primarily be delivering in our third and fourth quarters. Deliveries in our second quarter were mostly started in October through December and priced off of September's lumber pricing of around $400 per thousand board feet. With respect to synergies, we remain on track to achieve our targets and are seeing those savings reflected in our cost of deliveries.
Let me walk you through the timing of these synergies. Synergies were first layered in our negotiations with national vendors which took place shortly after the merger in Q2 and Q3 of 2018. This was followed by negotiations with local trade partners, which resulted in new trade contracts for home starts in Q3 and Q4 of 2018. The transition of closing our CalAtlantic communities and the conversion of product to Lennar's more efficient Everything's included platform takes place over a longer period of time.
Once the new contract is established, based on the negotiations with trades and new specifications and plan changes, the new permits were required for the start of the new product to benefit from these lower costs. Homes benefiting from these production change, strategy benefits, I'd say starting in our second quarter -- the homes delivering in our second quarter and the meaningful cohort of these plans will deliver in the second half of 2019. The severity of the labor shortage in the construction industry is the strongest headwind that we face. Labor cost represent 43% of our direct spend and were up 2% sequentially in the second quarter and 7.7% year-over-year. While labor cost continue to rise, I strongly believe our builder of choice focus has allowed Lennar to minimize the impact of labor -- of the labor shortage, especially in our ability to access labor for our job sites.
Another headwind is tariffs on material costs. First, there was a 10% tariff on the Chinese goods that took place last September and then another 15% this June. On average the impact to us is about $500 per home, we're in constant communication with our manufacturing partners discussing strategies for offsetting impacts to these tariffs with alternate specifications and locations and manufacturing.The strategic relationships with our manufacturers just like with the rest of our trade partners, as a result of the focus of our Builder of Choice program. We're seeing the benefits of this play out in real-time with discussions that develop solutions for avoiding cost increases while improving safety, quality and cycle times, despite the labor shortages.
We consistently give advance visibility to our trades for production needs, allowing them to plan accordingly. Maintaining an even flow start pace with our Everything's included platform allows the trades make better utilization of their limited labor. These efforts, combined with our significant size and scale in each market enables Lennar to be the low cost builder to serve.
Lastly, another headwind affecting our cost of sales is land. Land cost as a percent of sales is increasing primarily due to two factors. As we've noted on previous calls, the land market remains constrained, as land entitlements are taking longer restricting the availability of land in the market, which results an appreciating land cost. Additionally, as Rick mentioned, we're delivering a higher percentage of homes on option or just in time land. Well, this plan delivers higher returns, it comes at a cost premium due to the low risk and short carry time associated with it.
Overall, we remain focused on improving our net operating margin, free cash flow and return on capital. We're driven to simplify our operate -- our operations enabling us to execute on our four pillars. Our Builder of Choice production first operational program, our just in time selling platform driven by our dynamic pricing model, our technology driven efficiency leverage overhead structure and last, are simple and efficient Everything's included platform.
With that, I'll now turn it over to Diane, who will give you more color on how these costs will result in our margin guidance for Q3 and Q4.
Diane Bessette--Vice President, Chief Financial Officer & Treasurer
Thank you, Jon, and good morning to everyone. So let me summarize and reemphasize a few points from our second quarter starting with Homebuilding. So as we've mentioned looking at deliveries, deliveries increased 5% from the prior year and exceeded the upper range of March guidance by 6% as we benefited from both deliveries that were postponed by weather from our first quarter and the recovering housing market.
Our second quarter gross margin on home sales was 20.1%, the prior year's gross margin was 21.6% excluding CalAtlantic purchase accounting. Q2 2019, gross margins were impacted by an increase in sales incentives offered during the Homebuilding market pause and an increase in construction costs as a result of continued cost pressures due to land and labor shortages. Our second quarter SG&A was 8.4%, which is the lowest second quarter SG&A percent we have ever achieved. This compares to 8.7% in the prior year. The decrease was primarily due to continued operating leverage evidenced through improvements in personnel and related expenses, and a decrease in local conditions year-over-year.
And then turning to new orders. New orders increased 1% from the prior year and additionally new orders exceeded the upper range of March guidance by 2%. Looking at absorptions, absorptions for the second quarter was 3.7 versus 3.6 in the prior year. Additionally, we ended the quarter with 1,325 active communities. And finally for homebuilding joint venture land sales and other categories, we had a combined loss of $21 million compared to $17 million of earnings in the prior year. This was primarily due to a loss on consolidation of a previously unconsolidated entity, partially offset by our share of operating earnings from one of our unconsolidated entity.
Now, turning to financial services. Looking at the result. The operating earnings, net of non-controlling interest related to state title were $62 million compared to $56 million in the prior year and here's the detail of the components. Mortgage operating earnings increased to $43 million compared -- from $35 million in the prior year, as a result of the sale of our retail mortgage business in Q1 of 2019 total origination volume decreased to $2.6 billion from $2.9 billion. The sale of the retail business however, enabled the mortgage division to focus solely on the captive business, implement technology improvements, streamline processes and achieve G&A reductions that exceeded the impact from lower origination volumes. Title operating earnings were $13 million compared to $16 million in the prior year. The decrease was due to the sale of the majority of our retail agency business and title insurance underwriter business, that state title in Q1 2019, which resulted in a decrease in retail closed orders. This decrease in retail volume was partially offset by an increase in captive closed orders and a decrease in G&A expenses due to the sale.
Rialto mortgage finance operating earnings were $6 million compared to $3 million in the prior year. The increase was due to higher securitization dollar volume during the quarter as compared to the prior year.
And then turning to multi-family. Our multi-family segment had an operating loss of $4 million compared to operating earnings of $15 million in the prior year. There were no sales in the quarter compared to two sales in the prior year that resulted in $17 million in gains for that segment. However, we had $4 million of promote revenue compared to -- related to communities as Lennar Multifamily Venture Fund 1 compared to $5 million in the prior year.
A few weeks ago, we announced the final closing of Lennar Multifamily Venture Fund II with a total of $1.3 billion of equity commitments, including Lennar's commitment of $381 million. This success is a continuation of the build-to-hold platform that we have migrated to where we earn fees and promotes while creating value within our funds.
And then finally in the Other category as a reminder of this category is for the legacy Rialto assets outside of Rialto mortgage finance and our strategic technology investments. Earnings were $2 million in the second quarter compared to $4 million in the prior year.
And turning to our balance sheet, we ended the quarter with $801 million of cash. At the end of the quarter our home sites owned and controlled were 289,000 of which 215,000 are homes and 74,000 were controlled. Land acquisition spend during the quarter was $755 million and land development spend was $611 million. We had borrowings on our revolving credit facility of $550 million, leaving $1.85 billion of available capacity.
At quarter end, our homebuilding debt to total cap was 38.3%, and during the quarter we repurchased 1 million shares for a total of approximately $52 million. Stockholders' equity increased to $15.2 billion and our book value per share grew to 47.06 per share and then subsequent to quarter-end, as Stuart mentioned we retired $500 million of senior notes that were due in June.
So then turning to guidance. I'd would like to give some guidance for the third quarter, starting with homebuilding. We expect new orders between 12,500 and 12,800. We expect to deliver between 13,000 and 13,250 homes, which reflects the acceleration of some deliveries into Q2. We expect our Q3 average sales price to be between $385,000 and $390,000. We expect our Q3 gross margin to be in the range of 20.25% to 20.5%, and our SG&A to be in the range of 8.3% to 8.4%. And for the combined homebuilding joint venture land sales and other categories, we expect the Q3 loss of approximately $10 million to $15 million.
And turning to our ancillary businesses. We believe our Financial Services earnings will be between $52 million and $55 million. We believe our multifamily earnings will be about $5 million and for the other category related to the Rialto legacy assets and our strategic investments, we expect Q3 earnings of approximately $3 million. We expect our corporate G&A to be about 1.7% of total revenue, and we expect our tax rate to be approximately 25.5% for the remainder of the year. The weighted average share count for Q3 should be approximately 321 million shares. And when you roll up all of those numbers, the guidance that we are expecting is an EPS range of $1.25 to $1.35.
And now let me update guidance for the full fiscal year 2019. With regard to deliveries, we expect to deliver between 50,500 and 51,000 homes. We believe our average sales price will be about $400,000. Our gross margin is still expected to be in the range of 20.5% to 21%. Our SG&A should be in the range of 8.3% to 8.4% as we continue to benefit from operating leverage. Financial Services earnings should be in the range of $200 million to $205 million. Our multifamily earnings should be in the range of $8 million to $10 million, and we expect corporate G&A to be in the range of 1.5% to 1.6% of total revenues. So in summary, we believe we're well positioned to have strong profitability and cash flow generation in 2019.
And now let me turn it over to the operator for questions.
Operator
We will now begin the question-and-answer session. (Operator Instructions) Our first question coming from the line of Mike Rehaut of JP Morgan. Your line is open.
Michael Rehaut--JP Morgan -- Analyst
Thanks. Good morning everyone, and congrats on the results. First question, you know, just on the housing market and some of the commentary that you gave earlier on in your prepared remarks, specifically talking about the housing market strengthening during the second quarter, you highlighted traffic and sales. And I believe even if I heard you right, incentives declining, but I just wanted to get a little bit more granular in terms of the order trends, if possible, how they progressed during the quarter. Obviously, they came in a little bit above your guidance. And any commentary around June as well, particularly as it relates to any possible early impact from the recent -- further decline in rates?
Stuart Miller--Executive Chairman
Yeah. So Mike, I think that -- what we highlighted in the call, is that the market had really continued the trend that we saw in the first quarter. There had been a progressive improvement through the quarter though fairly mild and I was clear to say that the market rather than being robust could be qualified as solid and it really did solidify through the quarter and I think that's what you're seeing play through our numbers. Rick, you want to add to that?
Rick Beckwitt--Chief Executive Officer
Yes. And if I had to give you sort of trajectory in the quarter, May was the strongest month from -- for us from both the new sales order, from an absorption paid standpoint and from just an overall field of traffic and buyer sentiment. Incentives were down quite a bit from our fourth quarter, with regard to the incentive in the sales order and that's what gives us a little bit confidence that you'll start to see some margin improvement in the back half of the year combined with the construction cost stuff that Jon highlighted.
Michael Rehaut--JP Morgan -- Analyst
That's great. Thank you, Stuart and Rick on that. I guess secondly just to highlight or talk a little bit more about the incentive trends, specifically the gross margins, you kind of highlighted that the increase if I heard it right, that the sequential increase in incentives on closings is still more of a flow-through from the softness in the fourth quarter. I wanted to be sure that that was fully the case in that as you're saying, maybe we could just shift the attention little more toward if you have any stats around incentives on orders. And you kind of been saying that they're down materially from the fourth quarter. I was curious on the cadence -- the continued cadence, if there is any improvement in incentives on 2Q orders versus 1Q, because I think that's an area of focus right now as it relates to -- if the market continues to strengthen as you talk about? If the pricing is further improved 2Q versus 1Q?
Stuart Miller--Executive Chairman
Yes. That's what I was trying to address. If you look at the incentives in the new sales orders not in the closed home, for Q4 that was about 6.1% in the fourth quarter. As we moved into Q1 and Q2, we saw additional improvement. Q1 was about 5.7%, Q2 was about 5.6% but trending in the quarter down through the quarter of Q2.
Michael Rehaut--JP Morgan -- Analyst
Okay. So that 5.7% and 5.6% were -- you're talking specifically on orders?
Stuart Miller--Executive Chairman
That's what you asked. Yes.
Michael Rehaut--JP Morgan -- Analyst
Perfect. Thanks so much.
Operator
Thank you. Our next question comes from the line of Stephen East with Wells Fargo. Your line is open.
Kevin Patterson--Wells Fargo -- Analyst
Hi. Good morning everybody. This is actually Kevin Patterson on for Stephen. Thanks for taking our questions. Just piggybacking off that last commentary with you guys saying that May was the strongest month of the year from I believe orders and absorption and incentives. Do you guys believe that the lower interest rate environment has extended the spring selling season?
Stuart Miller--Executive Chairman
Well, I think that's yet to be seen. We generally don't comment beyond the end of the quarter. But, we definitely saw the market be fairly solid through the second quarter, and even as we've started to go into the third. It feels like the market is, as I said, solid. Lower interest rates clearly are impacting affordability that's bringing people back to the market. And while new home sales are reported across the nation, right now at down by about 7% or 8%, we're still looking at a generally solid economic environment with low unemployment and increase in wages. Basically, getting customers to act on their appetite to find a home, we are in short supply relative to homes and interest rates is really enabling affordability to kick in and to bring buyers back to the market. So that's a trend that we've been seeing and that's kind of how we see things as we look through the end of the year, continuing to improve and solidify.
Rick Beckwitt--Chief Executive Officer
Yes. And as I said in my remarks, the market is really following its typical seasonal pattern with improvement from the prior quarter periods. So I think it's too soon to tell whether this -- it's going to be in a long aided selling season because of mortgage rates being down. But what it has done is create buyer interest because things are more affordable right now.
Jon Jaffe--President
This is Jon. I'll just add to that, if you think about it, the second quarter of 2018, everyone thought that was a very strong market for new home sales and we surpassed that level in our second quarter 2019. So again directionally talks about an improving marketplace and to that question, Stuart mentioned the affordability impact of the lower interest rates is helping that.
Kevin Patterson--Wells Fargo -- Analyst
Okay. Thanks for that. I didn't hear a community count number. Could you guys just give us an update on community count growth and last quarter you guys mentioned some weather related catch up. I'm really just trying to get a sense of where you all think you could end the year and looking forward some longer-term growth potential?
Diane Bessette--Vice President, Chief Financial Officer & Treasurer
You see, so we ended the quarter with 1,325 active communities. And if you look at where we think we will be for Q3, we think it will sort of be flattish with the prior year. And If you look ahead to get to the end of the year, we might be a little bit lower than the prior year. Just as we're accelerating our absorption pace.
Kevin Patterson--Wells Fargo -- Analyst
Okay. Thank you guys. And then anything kind of longer term, how you guys are thinking about community count growth?
Stuart Miller--Executive Chairman
Well, we haven't really given projections into 2020. So I think that's a little bit premature right now.
Kevin Patterson--Wells Fargo -- Analyst
Okay. Thank you.
Operator
Thank you. Our next question is coming from the line of Ivy Zelman of IV and Associates. Your line is open.
Stuart Miller--Executive Chairman
Good morning.
Ivy Zelman--Zelman & Associates -- Analyst
Good morning, and congratulations on the quarter. So I'm going to go for the bigger picture question, given the fact that your stock is selling off and I think there is a big elephant in the room, that no one is addressing, which is the fear of recession and the yield curve is certainly telling us that. So people say to me why in the world, that I want to own a homebuilding stock late in the cycle with the risk of recession around the corner after 10 years of economic recovery. And I think something you guys said today, sorry for the background noise. What's really interesting about your ability to sell homes to single family rental operators and one of the big concerns I hear about Lennar specifically is that your factory of 50,000 plus units a year, being number three or higher in 25 markets, you actually have to continue to take a lot of risk in terms of exposure to land and recognizing that if there is a downturn, you actually have more exposure than anybody else because you have such a big machine to feed. So talk to us about in a downturn, if in fact the recession were to come to fruition, which I personally don't think is going to happen, but I'm not an economist and predicting recessions.
But if, in fact, how much of it, for example of the single-family rental piece, whether it's Open Door that's buying your homes or (inaudible) or some of these guys then sell to single family rental operator. I think people are just very concerned about the risk of being involved in homebuilding side this late in the cycle and all of your size, even if you guys are doing an awesome job of scale. It's still a very capital-intensive business with obviously cyclicality risk? Thank you.
Stuart Miller--Executive Chairman
Well, there are a lot of embedded questions there Ivy and a lot of topics. And I think that we can all agree that there are cross current in today's market. There are a lot of reasons to be optimistic and to view the world by positively and there are some concerns that are out there, some of them are at the macro level and those are environmental programs that we're going to have to fit into. At the end of the day, our view is that the base of the economy is strong, unemployment is low, and relative to the housing market, you're really dealing in a world that we've not seen before and that is for the past 10 years you've really seen relative to the population of the country, a production deficit that has persisted. And that persistence means that housing is in short supply is going to continue in short supply. And there are going to be some movements in the market overall that are sometimes up, sometimes down, affordability, will be tested as we saw with the pause, but even with land short, labor constrained, prices or cost being pushed up, there is a need that is driving the housing market, and in our view and I've said this for some time, it presents somewhat of a floor or a downward limit on how constrain the market can get, and while the upside in the market is somewhat constrained as well, because of cost and affordability, there is a channel of production that it seems in order to fill the need for dwellings in the country we're going to be traversing for quite some time. And if you look at a normalized level of production, and I know some people question it of around $1.5 million and and maybe it's a little bit lower. We've been underperforming that for some time.
Now, what we've done is we've created some innovative land strategies and some innovative production strategies recognizing that there will be a balance between what is sold and what is rented, and we're participating in both sides of that market in our rental program and our for sale housing program that will in some instances be sold to groups that are buying and leasing. And we're really adopting a broad strategy of participating in all parts of the market as the country overall has to fill the need of dwellings that are in short supply.
Rick Beckwitt--Chief Executive Officer
I guess the other...
Ivy Zelman--Zelman & Associates -- Analyst
Well I think that's, go ahead Rick, sorry.
Rick Beckwitt--Chief Executive Officer
We benefit from being in the low cost producer. And while margins may move up or down depending on what goes on in the economy, we do know that we have an operating advantage. In addition to that, on this for sale rental stuff, these are areas that we wouldn't build, but for this type of program, because it's not a good-for-sale market, it's more affordable markets where we found an opportunity to leverage our operating platform. As Stuart said, we are not seeing cracks in the system out there. We feel that the economy is moving along and we're quite confident that if there is a downturn that we'll be able to react very proactively and slow down the machine. But still have tremendous cash flow because we won't have to buy as much land. So I think in an environment where the market goes down, we're really strategically positioned to outperform.
You got to keep in mind that during the last downturn there was different issues at play. The biggest issue was that people couldn't afford to stay in their homes because mortgage rates were much higher. We don't have that. And in past decline, that's when a lot of inventory came to the market because people couldn't afford to live where they were living. That's not the case today.
Ivy Zelman--Zelman & Associates -- Analyst
Well, I think, that's really helpful, both of you. I think I'm just trying to be doubled advocate because I think your stock is the best recommendation we have in our sector, sort of topic and what I see is just there is hesitancy and concern. So what you just said Rick that even if there was a downturn, the cash flow that you'd generate, do you -- I'm assuming you guys have modeled out what a recession not led by housing, but let's just say trade wars or something that creates a recession, what you sort of different sensitivities are and I think it'd be helpful, maybe not in this call, but I just think that's what the market is talking about today.
My view in China was growing up in the first quarter of '16 and there's just a lot of fear and uncertainties and you guys have a homebuilding company until you lived through downturn, many people stay away and I think they're not doing themselves a service buying the stock here. But it will be helpful for you guys to help even though you don't think Stuart there is going to be recession, what happens to the company's earnings. What does it look like, what does cash will look like a good goal, that would be really constructive for us to understand better?
Stuart Miller--Executive Chairman
Okay. Look, we can add some color to that but I think that you start with the understanding that our strategy is basically derived from that view of this channel and that's downside protected and upside kind of limited moving through this kind of middle zone. And remember, as we said -- as we went through the pause in the second half of 2018, we are focused on building through using pricing to basically maintain production which maintains cash flow. And so as you think about the way that we would model a recession that is not housing led, and I think that it would not be, but might be a derivative of trade wars or other things, it would be defined by those kinds of thoughts that the production deficit is a buffer, land and labor is a limiting factor, and we're going to continue to produce homes at an accelerated level by using pricing to keep our production machine moving through.
Ivy Zelman--Zelman & Associates -- Analyst
Great. Well, good luck guys. Thank you.
Stuart Miller--Executive Chairman
Thank you.
Operator
Thank you. Our next question is coming from the line of Stephen Kim of Evercore ISI. Your line is open.
Stephen Kim--Evercore ISI -- Analyst
Thanks very much guys. Stuart, Rick. Jon, if I could maybe follow-up here on that line of thinking. I think there is really no dispute about the -- some of the factors which you said can act as buffers to the industry as we go into the next downturn whenever that is. But by the same token, it's a little surprising to me that you would need -- that you wouldn't be seeing those same factors and then together with lower rates, driving better pricing in the marketplace today without the -- in other words, it's surprising to me that you need to continue to have incentives at the level that you're doing, I would have thought that your incentives would have been able to drop substantially sequentially from 1Q to 2Q, in light of the lower rates. And you've talked about the housing market having or your demand experiencing a typical seasonal pattern, I think was your phrase. But rates have not been following a normal seasonal pattern this year. And so in tackling my question with incentives, because you've been kind enough to give us this metric of 6.1%, 5.7%, 5.6%, is that in your view keeping up with the market or are you leading the market with incentives? And if you could talk a little bit about why you think the incentive level that you're at has been necessary in light of the fact that the rates have dropped so much?
Jon Jaffe--President
Hey Steve , it's Jon. I definitely characterize it as keeping up with the market. We are not of a scale nor is any other builder to make the market, and so you have a consumer that is looking at what value can they get for their monthly payment, which interest rates as we all know a big effect on and creates some market pricing. So we're participating in that market from community to community it may vary, might be more or less aggressive depending on that particular marketplace. But in general, or the market and I think it's just a reflection of a long up cycle, but one has to defined as slow and steady which in a lot of respects is more healthy than one that is very robust because that can't last very long.
So when there's channel that Stuart described that in my view is slow and steady. So there isn't robust demand that -- as you think about your question of normal seasonality, why hasn't it been stronger and created a greater reduction incentives. It's really a reflection of the overall marketplace that we've seen for the last few years, just continuing forward at that pace.
Stuart Miller--Executive Chairman
Additionally, I would say this Steve, if the perception is that we are using incentives to stimulate the market in a broader sense. The incentive structure is arrived at a very local level community by community in response to existing market conditions. It's in cooperation that Jon, Rick our division presidents and the people on the ground. So you're really looking at a composite incentive number that derives from what the local level is telling us that the market is requesting. So it's an active feedback rather than something that is forced downward to drive the market.
Rick Beckwitt--Chief Executive Officer
Steve let's also remember that incentives never go to zero. Even in the best of markets where we are and with the closing cost and cost of that nature, so your floor is sort of, call it 3%-ish in terms of what the bottom -- a really strong market would be.
Stuart Miller--Executive Chairman
I think -- I sort of just to end this, we've run the analytics and models to understand where we maximize returns and profitability based on pricing and pace. And we started this year saying that we were going to deliver a certain number, we knew what our fixed overhead and our operating costs were. And we're driving toward the cash flow number, and an earnings number. And we could certainly slow down production and push price, but that wouldn't produce a better result. So I think we're operating the company with the strategy that we entered the year and you're focused on one small piece of the puzzle when there is a big -- a lot of pieces around.
Stephen Kim--Evercore ISI -- Analyst
Yeah, no, that's helpful. And that is just one of the things that we look at -- we look at obviously a lot of and we try to look at as many things as you look at it to the best of our ability. So in that vein, going to land spend, I was a little surprised that your acquisition oriented land spend wasn't lower this quarter given a market environment that is solid, but not robust and given an outlook for -- given the order situation kind of being flattish year-on-year and community count going to be kind of flat to maybe even slightly down by the end of the year. I was a little surprised that your acquisition spend was, I think it's about first half of this year, it's about $1.5 billion and I think in the back half of last year, it was like $1.6 billion or so. I would have thought that the acquisition land spend would be declining as we go forward. So can you give us a sense for what we can expect from the acquisition oriented land spend, which obviously would tie into your cash flow outlook over the next couple of quarters?
Stuart Miller--Executive Chairman
Yes. I'll let Diane to talk about the go forward number, but I think you need to keep in mind, Steve, that the land spend in any quarter is not necessarily dollars that are in (inaudible) just came together in an acquisition in that quarter. Some deals take years to come together in order to get to a point where all the entitlements are in place and we're ready to go. And a lot of the land that you're looking at that got acquired has been under contract for two or three years.
So we can't look at the comparison between last quarter and the quarter before that to this, because it's apples and oranges particularly sense for buying and contracting for a much larger business now than we were in the past.
Diane Bessette--Vice President, Chief Financial Officer & Treasurer
Yes, Stephen, I think if you just look at the numbers, our second quarter was not too dissimilar from the first quarter, a little bit higher, but not materially, and so I think where we are in the second quarter is a good proxy for what you will see in the third and fourth quarter as well.
Stephen Kim--Evercore ISI -- Analyst
Okay, great. Thanks very much guys.
Operator
Thank you. Your next question comes from the line of Matthew Bouley of Barclays. Your line is open.
Matthew Bouley--Barclays -- Analyst
Hi. Thank you for taking my question. I wanted to ask about the guidance. You're guiding to I guess implying growing deliveries by double-digits in the fourth quarter. But you're saying that or guiding to order growth of kind of low single-digits in the third quarter. Obviously, the backlog is down a bit year-over-year in units. So, is there any additional color there perhaps around your internal star projections. What else could you say that give us kind of insight into reaching that fourth quarter delivery guidance in light of orders and backlog are? Thank you.
Diane Bessette--Vice President, Chief Financial Officer & Treasurer
So I think, yes, I think if you look at our third quarter guidance on deliveries, you're absolutely right, we're sort of in the single-digit range. And we do pick up as we go to the fourth quarter. We are generally back-end loaded. So I'm not sure that we are too dissimilar, if you look at the pattern of last year. Pretty similar, we always pick up and have our strongest new order and delivery growth in the fourth quarter. So I'm not sure that we're to odd to think with what the typical pattern.
Matthew Bouley--Barclays -- Analyst
Okay, understood. And then secondly, the SG&A side, I think you've shown some pretty clear progress with the tech investments and streamlining all the cost. I think Stuart you termed it as a significant opportunity still going forward, so just any additional thoughts on kind of the longer term opportunity, broker commissions, advertising, what are the different buckets and how much runway is there on all that? Thank you.
Stuart Miller--Executive Chairman
Yes. Look, I've noted this before. I think that there is still a lot of opportunity throughout our SG&A levels to improve our business operation by using technologies and we're working with a number of really vibrant programs and a lot of them are customer-facing. We've talked about Open Door. Open Door enabled homes or home sales for our company, continue to accelerate, and the better we get at working with Open Door, the more we're able to drive our (inaudible) costs down. And that's a benefit to our SG&A.
But at the same time we're working with companies like states titled to improve the amount of time that it takes to get a title policy and to deliver documentation to our customers. And in time, though not yet, that will improve some of our financial services performances. We're using blend to help our customer better access the mortgage application process. And across our platform there are just a number of technology opportunities to refine the way that we do business and bring cost down incrementally. It's not going to happen in large steps quarter-by-quarter, but what you've been seeing is 10 basis points here, 20 basis points there, over the last quarter, year and over years, you're going to start to see us become a much, much more efficient business because technology has made us better at what we're doing.
Matthew Bouley--Barclays -- Analyst
All right. I appreciate all the details. Thanks again.
Stuart Miller--Executive Chairman
Okay, you bet. Well we take our last question.
Operator
Thank you. Your last question comes from the line of Carl Reichardt of BTIG. Your line is open.
Carl Reichardt--BTIG -- Analyst
Thanks very much. I wanted to ask two questions about California. I'll just ask one question with both the parts in it. One, just can you talk a little bit Stuart about how California performed for you? And then with the move toward more lot options and what looks like a pretty significant move to smaller homes, quicker turns, does that impact at all, how you think about California in terms of the land mix and community mix on a long-term basis, how that might influence your thought?
Jon Jaffe--President
This is Jon. I'll take your questions. So California in general improved, but there's really two different categories to think about when you look at California. The high-end coastal markets, particularly the San Francisco Bay Area and Orange County are still a bit sluggish. Those are the higher price points, you're talking $1 million plus homes and heavily influenced by what's been impacted with the Chinese buyer. So those -- they call it for what it is, those remain sluggish. The more inland markets from the Inland Empire in the South and San Diego up through the Central Valley and into Sacramento, those markets are all performing very well, very consistent with what we're -- Stuart described in terms of the overall market conditions being solid. And we're seeing strength in market there, much lower price point say in the $400,000 to $600,000 price range that's performing very well.
With respect to land in California, we're well positioned. It's not a market that really lends itself to a lot of rolling option develop programs, it's mostly own developed land, but we do have given our scale in the respective markets. We've got very strong strategic relationships where there are opportunities for phase take-downs for long-term relationships, where in every one of those opportunities throughout the state and maximizing it. But you're not going to see the same kind of volume on just-in-time land inventory that you'll see in the Texas or Florida market that's the land positions more setup for delivering that.
Carl Reichardt--BTIG -- Analyst
Great. Thanks, Jon. Appreciate it.
Stuart Miller--Executive Chairman
Okay. It sounds like we come to an end. I want to thank everyone for joining us and we look forward to continuing to give guidance and understanding of our business as we go forward. Thanks.
Operator
Thank you and that concludes today's conference. Thank you all for joining. You may now disconnect.
Duration: 59 minutes
Alexandra Lumpkin--Associate General Counsel
Stuart Miller--Executive Chairman
Rick Beckwitt--Chief Executive Officer
Jon Jaffe--President
Diane Bessette--Vice President, Chief Financial Officer & Treasurer
Michael Rehaut--JP Morgan -- Analyst
Kevin Patterson--Wells Fargo -- Analyst
Ivy Zelman--Zelman & Associates -- Analyst
Stephen Kim--Evercore ISI -- Analyst
Matthew Bouley--Barclays -- Analyst
Carl Reichardt--BTIG -- Analyst
More LEN analysis
All earnings call transcripts
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditionsfor additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribershas 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. |
Do you think Ford's Ontario government should host a Canada Day celebration?
A crowd gathers for the Canada Day celebration on the lawn of the Legislative Building at Queen's Park on July 1, 2014 in Toronto, Ontario, Canada. (Photo by George Rose/Getty Images) With Canada Day less than a week away, the Ontario government has decided on a drastically more limited approach to the celebration. Doug Ford’s government has announced the Ontario legislature will not host a Canada Day celebration this year, due to low attendance and hefty costs totalling approximately $400,000. Instead, the government has decided to offer free admission for the first 500 people to 10 Canada Day attractions in the province, which will cost about $80,000. "Instead of hosting a single event at Queen's Park, we are providing free admission for thousands of people to Canada Day events across the province," Ford's executive director of communications Laryssa Waler said in a statement to The Canadian Press . "Ontario families should have the ability to celebrate Canada Day with us, regardless of where in the province they live." The free Canada Day event locations are: Ontario Science Centre in Toronto Cinesphere at Ontario Place in Toronto Royal Ontario Museum in Toronto Fort William Historical Park in Thunder Bay Huronia Historical Parks in Midland and Penetanguishene St. Lawrence Parks Commission in Morrisburg Butterfly conservatory in Niagara Falls Royal Botanical Gardens in Burlington McMichael Canadian Art Collection in Vaughan Science North in Sudbury Last year, approximately 5,000 people attended the Queen’s Park event, which has historically included performances, a 21-gun salute, and various crafts and activities for children. Once Ontarians heard of the cancellation, many took to social media to share their thoughts on the new approach by the provincial government: You forgot to mention that you have canceled Canada Day celebrations at Queens Park. Ontario will be the only province in Canada without something at the provincial capital. Are you proud of that? — Bob Ernest (@bobernest) June 25, 2019 1.7 trillion Canadian debt, every dollar helps. We need good doctors and nurses and police everything else is not as important. — moodi (@moodabc12345) June 25, 2019 We are ALL hoping that Doug Ford will attend of course. After all it is a Canada Day celebration for ALL Ontario not just for the first 500 lucky people at the 10 designated spots in Ontario. Just remember it is BYOB Bring Your Own Boos #onpoli — Yvonne (@yvonne4tn) June 25, 2019 A shame about cancelling Queen's Park Canada Day festivities. I look back fondly on Canada Day event in 1993 when I received the Ontario Medal for Good Citizenship at the big hoopla event at Queen's Park -- it meant a lot to be connected as a Province. https://t.co/eguRZLnEuZ — Kathryn Woodcock (@safeandsilent) June 25, 2019 Ford saved $400,000 so far when he canceled the declining Canada Day celebrations at the Ontario legislative. He instead is giving back to the kids of the province by giving them free access to places like Ontario Pl, Botanical Gardens, a/ historical parks to learn Cda history. https://t.co/aSPX9MreQA — NoirB (@NoirB6) June 24, 2019 @JustinTrudeau are you really going to let Ford cancel Canada Day at Queens Park. This is gone to far. He is destroying Ontario with all his cuts to programs. But to cancel Canada Day in Ontario, which Ottawa is part off, is insane — Barb Brand (@BarbBrand2) June 25, 2019 Dear good people of Ontario, If you have the financial means to afford admission, please stay away on Canada Day and let those who *need* to take advantage of $0 admission enjoy themselves without it being a madhouse full of people. — Thomas, Prince of Whales (@Thomas_Duncan) June 24, 2019 The Ontario PC party have cancelled the Queen's Park CANADA DAY celebration. What a shameful, entitled, bunch of ignoramuses. They know that Toronto is the capital city of Ontario...right? #onpoli #community #CanadaDay — Kevin Frank (@KWalterFrank) June 24, 2019 What do you think of the Ontario government cancelling Canada Day celebrations at Queen’s Park this year? Vote in the poll above and leave your thoughts in the comments below. |
The RosCan Gold (CVE:ROS) Share Price Is Up 1200% And Shareholders Are Euphoric
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
WhileRosCan Gold Corporation(CVE:ROS) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 28% in the last quarter. But that doesn't displace its brilliant performance over three years. In fact, the share price has taken off in that time, up 1200%. So the recent fall doesn't do much to dampen our respect for the business. The thing to consider is whether there is still too much elation around the company's prospects.
We love happy stories like this one. The company should be really proud of that performance!
View our latest analysis for RosCan Gold
RosCan Gold 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 RosCan Gold 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 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 do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). RosCan Gold has already given some investors a taste of the sweet gains that high risk investing can generate, if your timing is right.
RosCan Gold had liabilities exceeding cash by CA$268,257 when it last reported in January 2019, according to our data. That puts it in the highest risk category, according to our analysis. So the fact that the stock is up 135% per year, over 3 years shows that high risks can lead to high rewards, sometimes. It's clear more than a few people believe in the potential. You can click on the image below to see (in greater detail) how RosCan Gold's cash levels have changed over time.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. Given that situation, many of the best investors like to check if insiders have been buying shares. It's usually a positive if they have, as it may indicate they see value in the stock. You canclick here to see if there are insiders buying.
We're pleased to report that RosCan Gold shareholders have received a total shareholder return of 179% over one year. That's better than the annualised return of 58% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.You can find out about the insider purchases of RosCan Gold by clicking this link.
RosCan Gold is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
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. |
If You Like EPS Growth Then Check Out Cooper Companies (NYSE:COO) Before It's Too Late
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. And in their study titled Who Falls Prey to the Wolf of Wall Street?' Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes. In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Cooper Companies ( NYSE:COO ). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath. View our latest analysis for Cooper Companies Cooper Companies's Earnings Per Share Are Growing. 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). Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Cooper Companies has grown EPS by 27% per year, compound, in the last three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note Cooper Companies's EBIT margins were flat over the last year, revenue grew by a solid 11% to US$2.6b. That's progress. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. Story continues NYSE:COO Income Statement, June 25th 2019 The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. To that end, right now and today, you can check our visualization of consensus analyst forecasts for future Cooper Companies EPS 100% free. Are Cooper Companies Insiders Aligned With All Shareholders? We would not expect to see insiders owning a large percentage of a US$16b company like Cooper Companies. But we do take comfort from the fact that they are investors in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$112m. 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? A brief analysis of the CEO compensation suggests they are. For companies with market capitalizations over US$8.0b, like Cooper Companies, the median CEO pay is around US$11m. The Cooper Companies CEO received US$6.1m in compensation for the year ending October 2018. That comes in below the average for similar sized companies, and seems pretty reasonable to me. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. I'd also argue reasonable pay levels attest to good decision making more generally. Is Cooper Companies Worth Keeping An Eye On? For growth investors like me, Cooper Companies's raw rate of earnings growth is a beacon in the night. If that's not enough, consider also that the CEO pay is quite reasonable, and insiders are well-invested alongside other shareholders. This may only be a fast rundown, but the takeaway for me is that Cooper Companies is worth keeping an eye on. Of course, identifying quality businesses is only half the battle; investors need to know whether the stock is undervalued. So you might want to consider this free discounted cashflow valuation of Cooper Companies. Of course, you can do well (sometimes) buying stocks that are not growing earnings and do not have insiders buying shares. But as a growth investor I always like to check out companies that do have those features. You can access a 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 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. |
Is Retrophin, Inc. (NASDAQ:RTRX) Trading At A 36% Discount?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
In this article we are going to estimate the intrinsic value of Retrophin, Inc. (NASDAQ:RTRX) by taking the expected future cash flows and discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
See our latest analysis for Retrophin
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF ($, Millions)", "2019": "$-75.09", "2020": "$-83.99", "2021": "$-117.10", "2022": "$-28.20", "2023": "$71.70", "2024": "$109.40", "2025": "$150.55", "2026": "$191.43", "2027": "$229.38", "2028": "$263.10"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Analyst x1", "2022": "Analyst x1", "2023": "Analyst x1", "2024": "Est @ 52.57%", "2025": "Est @ 37.62%", "2026": "Est @ 27.15%", "2027": "Est @ 19.83%", "2028": "Est @ 14.7%"}, {"": "Present Value ($, Millions) Discounted @ 11.14%", "2019": "$-67.57", "2020": "$-68.00", "2021": "$-85.30", "2022": "$-18.48", "2023": "$42.29", "2024": "$58.05", "2025": "$71.88", "2026": "$82.24", "2027": "$88.67", "2028": "$91.51"}]
Present Value of 10-year Cash Flow (PVCF)= $195.29m
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 11.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$263m × (1 + 2.7%) ÷ (11.1% – 2.7%) = US$3.2b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$3.2b ÷ ( 1 + 11.1%)10= $1.12b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $1.31b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $31.69. Compared to the current share price of $20.31, the company appears quite undervalued at a 36% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Retrophin as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 11.1%, which is based on a levered beta of 1.411. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Retrophin, There are three fundamental factors you should further examine:
1. Financial Health: Does RTRX have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does RTRX's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of RTRX? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQ every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Hannah Wants opens up about the disease diagnosis that changed her life -- for the better
The touring life of a world-class DJ is an exhausting endeavor, often fueled by alcohol and other substances you might find in a night club. When they’re not performing, they’re usually traveling on their own or holed up in a hotel room.
While the lifestyle can be glamorous, it can also be taxing, stressful and unhealthy. Especially in dance music, there’s pressure to constantly churn out singles rather than take one’s time with an album. Then, you have to tour to promote those singles. Weekends are for performing, and weekdays are for producing. The cycle continues.
For many years, that was no different for British DJ Hannah Wants (real name: Hannah Smith), who rode her bouncy take on garage house music to wide acclaim.
“I’d go to America and tour 10 dates in a row, and some of the nights I wouldn’t be sleeping,” Smith told AOL. “And I’m one of those determined people where I’d just plow through anything, because work came first.”
That is until she got the wake-up call of a lifetime.
Smith was diagnosed with breast cancer in March 2017 at age 30.
It was a shock to the system for the Birmingham native, a former England women’s national soccer team player who felt she was relatively fit. It changed her outlook on just about every aspect of her life.
“I was one of those people who thought it’d never happen to me,” Smith said. “I thought I was healthy, I was living my dream and I was happy. So as you can imagine, it sort of turned my world upside down.”
Despite the diagnosis, Smith didn’t feel ill. So, after she underwent surgery, she decided to take a more holistic approach to her treatment instead of undergoing recommended chemotherapy treatments that would have likely kept her bedridden for long periods.
Smith hired a private nutritionist who frequently tests her blood and urine to examine her hormones, cortisol levels, kidney and liver function, glucose metabolism and other critical health information. Those measurements are used to adjust the 15 or so daily supplements she takes.
She also now (mostly) adheres to an organic, plant-based diet and has incorporated acupuncture, yoga, meditation, CBD oil, thermography and an alternative method of “energy healing” called reiki into her routine.
“The diagnosis sent me on a more spiritual path,” Smith said. “It’s actually been a tap on the shoulder to say I couldn’t have kept doing what I was doing … Sometimes you need something shocking to make you re-evaluate your life, and that's exactly what it did.”
One of the most drastic changes to the former workaholic’s lifestyle is her touring schedule. Smith, who is currently doing shows in the U.S. for the first time since her diagnosis, no longer performs on more than 3 consecutive nights. It’s a radical step in a business that relies on profits from live shows now more than ever, but Smith also feels it’s a necessary one.
“I was obsessed with work and chronically stressed because of the pressure that I put on myself for years,” Smith said. “That’s what I actually believe was the main driver of the illness -- stress.”
It's a mindset that sounds distressingly similar to that of Avicii, the dance music icon who committed suicide in April 2018 after experiencing chronic stress and anxiety from nonstop touring. “There was never an end to the shows, even when I hit a wall,” theDJ said in "Avicii: True Stories,"a documentary about his life that was released before his death. “My life is all about stress.”
Thankfully, Smith makes sure to kick back during the week while touring now, whether that’s staying in bed for a couple more hours, catching some poolside rays in Los Angeles or visiting the hotel spa for a massage.
No matter which parts of her altered regimen did the trick, Smith is now cancer-free -- and eager to continue her career’s upward trajectory.
Her new single “Love Somebody” samples the catchy hook from “Good Love” by Inner City and has the potential to pick up steam this summer in the dance music mecca of Ibiza, where she’s set to play seven weekends between July and September. After her last date there, she’ll return to Australia for the first time since her diagnosis to play several dates.
And by the end of the year, she’s hoping a track that’s in the works with American producer Kevin Knapp -- whom she calls her dream collaborator in the studio -- will be ready for release.
“It’s time to rebuild,” Smith said. “I’ve got lots of challenges and goals to work towards. So I’ll work hard, but rest hard as well.”
Here's to hoping that other DJs learn to do themselves a favor and follow that mantra, too. |
US STOCKS-Wall St drops on trade worries, Fed Chair Powell's speech
* Markets dip, then recover following Fed Chair Powell's speech
* Tech leads all three major U.S. indexes lower
* Allergan jumps on AbbVie's $63 bln purchase announcement
* Indexes down: Dow 0.43%, S&P 0.59%, Nasdaq 1.00% (Updates to late afternoon)
By Stephen Culp
NEW YORK, June 25 (Reuters) - Wall Street lost ground on Tuesday as simmering trade concerns, combined with disappointing economic data, sent buyers to the sidelines, where they remained after Federal Reserve Chair Jerome Powell pushed back on pressure from President Donald Trump to cut rates.
All three major U.S. stock indexes were in the red, weighed most heavily by technology stocks, after Powell said the Fed was grappling with whether trade uncertainties and other issues support interest rate cuts.
Powell, speaking at the Council on Foreign relations, also reiterated the Fed's independence, a day after Trump tweeted that the Fed "doesn't know what it's doing."
Earlier, St. Louis Federal Reserve Bank President James Bullard in an interview with Bloomberg said he does not think the Fed needs to cut rates by a half-percentage point at its next policy meeting, in late July.
"You had a one-two punch," said Art Hogan, chief market strategist at National Securities in New York. "Powell came out and warned against policy bending to short-term political interests, but it is also Bullard, who is a dissenter, saying 50 basis points would be too much."
Bullard last week said he had dissented at the Fed's June policy meeting because he felt that weak inflation and uncertainties about the economic outlook warranted a rate cut.
Despite Tuesday's sell-off, June is shaping up to be a good month for U.S. equities. The benchmark S&P 500 continued to hover within a percent of the all-time high reached last Thursday.
Still, anxieties stemming from the U.S.-China trade war found no relief in a White House official's remarks that Trump is "comfortable with any outcome" arising from a planned meeting with Chinese President Xi Jinping at the Group of 20 summit convening in Japan on Friday.
"The market...is really looking at two issues that push it higher," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey. "One is the trade agreement and the other is Fed policy. It's really trade policy that's going to be more meaningful."
On the economic front, sales of newly constructed homes and consumer confidence numbers both came in well below economist expectations, according to separate reports from the U.S. Commerce Department and the Conference Board.
Growing signs of economic softness, especially related to the trade disputes between the United States and its major trading partners, contributed to the Federal Reserve's last week signaling that interest rate cuts could begin as early as July.
The Dow Jones Industrial Average fell 114.25 points, or 0.43%, to 26,613.29, the S&P 500 lost 17.36 points, or 0.59%, to 2,927.99 and the Nasdaq Composite dropped 80.27 points, or 1%, to 7,925.42.
Of the 11 major indexes in the S&P 500, 10 were in negative territory, with technology and communications services seeing the biggest percentage drops.
Rate-sensitive bank stocks were down 0.2%, as U.S. Treasuries benchmark yields fell below the closely watched 2% level.
AbbVie Inc said it would buy Allergan Plc for about $63 billion, sending the Botox maker's shares up by 26.9%. AbbVie's stock dropped 15.4%.
Declining issues outnumbered advancing ones on the NYSE by a 1.37-to-1 ratio; on Nasdaq, a 1.29-to-1 ratio favored decliners.
The S&P 500 posted 30 new 52-week highs and five new lows; the Nasdaq Composite recorded 22 new highs and 79 new lows. (Reporting by Stephen Culp Additonal reporting by Charles Mikolajczak and Sinead Carew Editing by Leslie Adler) |
An Intrinsic Calculation For Retrophin, Inc. (NASDAQ:RTRX) Suggests It's 36% Undervalued
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
How far off is Retrophin, Inc. (NASDAQ:RTRX) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for Retrophin
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF ($, Millions)", "2019": "$-75.09", "2020": "$-83.99", "2021": "$-117.10", "2022": "$-28.20", "2023": "$71.70", "2024": "$109.40", "2025": "$150.55", "2026": "$191.43", "2027": "$229.38", "2028": "$263.10"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Analyst x1", "2022": "Analyst x1", "2023": "Analyst x1", "2024": "Est @ 52.57%", "2025": "Est @ 37.62%", "2026": "Est @ 27.15%", "2027": "Est @ 19.83%", "2028": "Est @ 14.7%"}, {"": "Present Value ($, Millions) Discounted @ 11.14%", "2019": "$-67.57", "2020": "$-68.00", "2021": "$-85.30", "2022": "$-18.48", "2023": "$42.29", "2024": "$58.05", "2025": "$71.88", "2026": "$82.24", "2027": "$88.67", "2028": "$91.51"}]
Present Value of 10-year Cash Flow (PVCF)= $195.29m
"Est" = FCF growth rate estimated by Simply Wall St
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 11.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$263m × (1 + 2.7%) ÷ (11.1% – 2.7%) = US$3.2b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$3.2b ÷ ( 1 + 11.1%)10= $1.12b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $1.31b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $31.69. Compared to the current share price of $20.31, the company appears quite undervalued at a 36% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Retrophin as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 11.1%, which is based on a levered beta of 1.411. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Retrophin, I've put together three fundamental aspects you should further research:
1. Financial Health: Does RTRX have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does RTRX's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of RTRX? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQ every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Migrant children removed from 'inhumane conditions' at overcrowded Texas detention facility
The U.S. government has removed all but 30 migrant children from a remote Border Patrol station in Texas after reports that they were being held in alarmingly poor conditions and attempting to care for each other with inadequate food, water and sanitation. There were about 255 children being held in what lawyers described as neglectful conditions during a visit Thursday to the station in Clint, Texas. U.S. Rep. Veronica Escobar, D-El Paso, said Monday that all but 30 of the children had been moved from the station in a farming community east of El Paso. A lawyer who had visited the station told Escobar that older children were having to care for younger children, some had been held for nearly a month and some children had not been allowed to contact family members. DACA, asylum, sanctuary cities and more: Here are the 10 key immigration issues presidential candidates face on the campaign trail “How is it possible that you both were unaware of the inhumane conditions for children, especially tender-age children at the Clint Station?” asked Escobar in a letter sent Friday to U.S. Customs and Border Protection acting commissioner John Sanders and U.S. Border Patrol chief Carla Provost. Escobar had called for the immediate release of the children, describing the conditions and situation as unacceptable not only for the children, but Border Patrol agents as well. "How many children in Clint were separated from their parents? This June 20, 2019, file frame from video shows the entrance of a Border Patrol station in Clint, Texas. U.S. Customs and Border Protection has told a Texas congresswoman Monday, June 24, that the agency is quickly removing children from the patrol station following reports that children locked inside were in a perilous situation. "What is the administration doing to reunite these families? "Who will be held accountable for these atrocities?" U.S. Customs and Border Protection did not immediately respond to questions about the children being moved from the Clint station. Escobar said that CBP and Border Patrol leaders told her that the situation was under investigation by the CBP Office of Professional Responsibility and the DHS Office of the Inspector General. "Children do not belong in detention and (President Donald Trump's) failed policies are only harming children and promoting needless and cruel family separation. This must end, " Escobar tweeted Monday. Story continues The situation at the Clint Border Patrol station comes as El Paso continues to see a large influx of asylum seekers, mostly from Central America, but also Cuba and other countries. Talking tariffs: President Trump: 'Progress' but no breakthrough with Mexico as tariff deadline looms The Border Patrol's El Paso Sector apprehended more than 104,000 migrant families and 19,000 single adults between October and May. A temporary tent facility that can hold up to 500 people was set up May on the grounds of Border Patrol Station 1 on Gateway South Boulevard and Hondo Pass Drive. Clara Long, an attorney who interviewed children at the Border Patrol Station 1 last week, told the AP that conditions were not necessarily better there. "One boy I spoke with said his family didn’t get mattresses or blankets for the first two nights and he and his mom came down with a fever," said Long, a senior researcher with Human Rights Watch. “He said there were no toothbrushes, and it was very, very cold." Vice President Mike Pence, asked about the unsafe, unsanitary conditions for the children on "Meet The Press" Sunday, said “it’s totally unacceptable” adding that he hopes Congress will allocate more resources for border security. Long and a group of lawyers inspected the facilities because they are involved in the Flores settlement, a Clinton-era legal agreement that governs detention conditions for migrant children and families. The lawyers negotiated access to the facility with officials and say the Border Patrol knew the dates of their visit three weeks in advance. Government rules call for children to be held by the Border Patrol in their short-term stations for no longer than 72 hours before they are transferred to the custody of Health and Human Services, which houses migrant youths in facilities around the country through its Office of Refugee Resettlement. Contributing: The Associated Press This article originally appeared on El Paso Times: Migrant children removed from 'inhumane conditions' at overcrowded Texas detention facility |
Is Now The Time To Look At Buying Rush Enterprises, Inc. (NASDAQ:RUSH.B)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Rush Enterprises, Inc. (NASDAQ:RUSH.B), which is in the trade distributors business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $45.17 at one point, and dropping to the lows of $35.63. 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 Rush Enterprises's current trading price of $35.63 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 Rush Enterprises’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 Rush Enterprises
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 14.07% above my intrinsic value, which means if you buy Rush Enterprises today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $31.24, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Rush Enterprises’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. Though in the case of Rush Enterprises, it is expected to deliver a negative earnings growth of -14%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
Are you a shareholder?Currently, RUSH.B appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping an eye on RUSH.B for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on RUSH.B should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Rush Enterprises. You can find everything you need to know about Rush Enterprises inthe latest infographic research report. If you are no longer interested in Rush Enterprises, 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. |
How can the U.S. avoid war with Iran?
The 360 is a feature designed to show you diverse perspectives on the days top stories. Speed read What's happening: Over the past two weeks, long-simmering tensions between Iran and the United States have nearly boiled over. The two nations had been engaged in back-and-forth tough talk and subtle adversarial moves for months. Then, seemingly all of a sudden, each day the news was filled with stories of escalation by one side or the other that brought the countries to the edge of military conflict. The relationship between the U.S. and Iran has been at a tense stalemate since last year, when the Trump administration pulled out of the Iran nuclear deal and began imposing sanctions. An attack on two oil tankers on June 13, which the U.S. has blamed on Iran, set off a sequence of retaliation that appears to have brought the nations to the brink of war. On Friday, President Trump said he called off a planned bombing of Iran shortly before it was set to launch. A poll taken before the recent rise in tensions showed more than half of Americans expected war with Iran. Why there's debate: Despite the recent escalation, there is reason to believe that war isn't a foregone conclusion. President Trump has said he doesn't want one, as have Irans leaders. Some believe new sanctions and threats of military action may induce Iran to go back to the bargaining table to negotiate a new treaty that would prevent it from building nuclear weapons. But there are worries that the next aggressive move by either side could lead to a domino effect of escalation, leading to a war that neither nation wants. Trump's critics fear his bold rhetoric and confrontational tactics, including pulling out of the nuclear deal negotiated by President Barack Obama, have locked him into a position where taking steps to de-escalate the situation would make him look weak. Some also believe that de-escalation is not the administration's goal at all. Skeptics say recent U.S. actions echo the spotty intelligence that was used to sell the invasion of Iraq and, earlier, involvement in the Vietnam War. Some have accused members of the administration of provoking the Iranians in order to manufacture an excuse for a war that many on the right have been wanting for years. National security adviser John Bolton has been publicly calling for an attack on Iran for more than a decade. Story continues What's next: For now, the U.S. is using nonmilitary means, such as continued tough talk, stepped-up sanctions and a reported cyberattack , to put pressure on Iran. Secretary of State Mike Pompeo has traveled to the Middle East to meet with leaders in Saudi Arabia and the United Arab Emirates and consolidate regional support in the event of a military conflict. Perspectives The two sides may be stumbling into a war no one wants "As tensions mount between the United States and Iran, American and Iranian leaders publicly insist they want to avoid war. Yet history is littered with accidents, misperceptions, miscalculations, hidden bureaucratic agendas and other factors that produced armed conflicts nobody seemed to want." Colin H. Khal, Washington Post The path to peace runs the risk of sparking a war "The cruel reality is that it may well require more tension, perhaps even a U.S.-Iranian clash, to convince each side that the situation has become too dangerous to continue. But once direct conflict begins, it might be impossible to stop." Aaron David Miller, USA Today Members of the Trump administration are trying to incite a military conflict "Throughout its history, America has attacked countries that did not threaten it. To carry out such wars, American leaders have contrived pretexts to justify American aggression. Thats what Donald Trumps administration and especially its national security adviser, John Bolton is doing now with Iran." Peter Beinart, Atlantic De-escalation and compromise are possible if both sides pursue it "Both sides need to look for ways to move back from the brink.
Once the temperature has cooled, they need to find a path to a renewed deal on nuclear restraint and lifting of sanctions. The problem with brinksmanship is that sometimes you slide over the brink." Matthew Bunn, Defense One Political hard-liners in both countries are pushing for war "Polling has found that Americans have little appetite for war, but the hard hard-liners of the Trump administration and Iran in reaction to their policies may just take us there." Wendy R. Sherman, Los Angeles Times Congress could step in to limit Trump's ability to legally attack Iran "Strong action by Congress will help tip the balance away from a policy of ever more war and toward one grounded in diplomacy and economic cooperation -- with force reserved as an instrument of last resort when there is a serious threat to the United States that can't be resolved through other means." William D. Hartung, CNN Tactical strikes, like the ones Trump used in Syria, could set off a chain reaction "Some Americans speak blithely about 'surgical strikes,' and I fear that many Americans, including those in the White House, dont get how badly these can go awry.
The conflict may start 'surgical,' but its unlikely to end that way." Nicholas Kristof, New York Times Read more 360s Should student loan debt be canceled? Chore wars: Are men doing enough housework? Assisted suicide: Mercy or malpractice? |
Houston infant dies with 90-plus fractures; parents charged
DALLAS (AP) The parents of a Houston newborn who suffered a cracked skull and more than 90 fractures just days after being brought home from the hospital were arrested in their daughter's death, according to police and Harris County prosecutors. Jazmine Robin, who was born prematurely, was 10 weeks old when she died July 15, 12 days after leaving the hospital, prosecutors said Monday. Her father, 24-year-old Jason Paul Robin, is charged with murder. Her mother, 21-year-old Katharine Wyndham White, faces a count of injury to a child by omission. "The evidence shows that Baby Jazmine fell victim to the very people who were supposed to protect her the most in this world," Harris County District Attorney Kim Ogg said. "After a full and thorough investigation of the facts, we have filed charges, and will seek justice for young Jazmine." Detectives last July were called to a Houston hospital after staff there found "clearly inflicted head trauma," according to a Houston police affidavit. An autopsy that was completed last month determined the girl's death was caused by blunt force trauma to the head. Investigators believe Jazmine's crying would anger Robin and he violently shook the newborn, according to the affidavit. The child suffered multiple fractures to several ribs 71 rib fractures in all and 23 "long bone" breaks. "It is concluded that a minimum of two traumatic events resulted in 96 fractures," the affidavit said. It took several months to complete the autopsy because those done on infants, and related testing, generally take much longer than ones done on adults, authorities said. Robin and White were being held Tuesday in the Harris County jail. Online jail records don't indicate whether either has an attorney to speak on their behalf. They face life sentences if convicted on the charges. Robin told an investigator that he read psychology books in an effort to control his anger and said Jazmine "is too beautiful to hit." White blamed the child's brain injury on hospital personnel who administered CPR on Jazmine for an hour, the affidavit said. White later told authorities a woman who also lived at their residence was likely to blame for the girl's injuries. ___ Follow David Warren on Twitter: https://twitter.com/WarrenJourno |
What Is Assets Under Management (AUM)?
assets under management Assets under management (AUM) refers to the market value of the assets a financial institution has discretion over. Increasing AUM is a primary goal of most brokerages , mutual funds and financial advisor firms , and many will use a high AUM as a selling point when marketing themselves to potential investors. How certain institutions define or calculate their AUM can differ slightly. So, it’s important to understand these differences before you use a firm’s AUM to make any decisions. What Does Assets Under Management Mean? While some institutions have differing methods of formulating it, assets under management is the value of the investments that some entity is in charge of managing, typically on behalf of a client or many clients. Where institutions most frequently differ is regarding which specific investments should be included in the AUM calculation. As a general rule, AUM refers only to the values of those funds that it’s directly managing and investing on their clients’ behalf. In its instructions to financial advisors for filling out Form ADV , the Securities and Exchange Commission (SEC) says to only include “the securities portfolios for which you provide continuous and regular supervisory or management services.” Some money managers also include client bank accounts and separate mutual fund shares in their calculations, since they advise clients on how much to keep in the bank and how much to put in mutual funds. This is sometimes referred to as assets under advisement. Usually when you hear about assets under management, it’s referring to the entirety of the assets that advisor or broker is managing. You might also hear your advisor use the term to refer to the value of the investments she’s managing for you alone. This is often the case when discussing financial advisor fees , for example. An advisor may charge 2% of your assets under management for her services. That’s not referring to all of the assets she manages. Rather, it refers to the assets you’ve placed in her care. Story continues Why Assets Under Management Matters assets under management Among financial advisor firms , mutual funds and other financial institutions, AUM is quite a significant metric. These institutions will tout a high AUM as an indicator of success, particularly if it has grown over time. The reasoning behind this claim is easy enough to understand. If a financial advisor firm has a larger AUM than a competitor, then that firm will claim that more people trust the firm to grow their investments than they trust the competitor. And if a firm’s AUM has grown over time, that’s proof that either the firm has attracted more customers, that the firm has grown its existing customers’ money, or both. AUM isn’t the whole story of a financial institution, however. A firm with two high-net-worth clients, each with $5 million in assets, will have more in AUM than a firm with 25 clients, each with $100,000 in assets. However, the second firm has seen 23 more people choose it to handle their money than the first firm. It’s up to you whether you more highly value the firm that manages a large volume of clients, or the firm that is adept at managing the assets of high-net-worth clients. AUM is also a key determinant determining whether financial advisors firms must register with the Securities and Exchange Commission. Firms with more than $100 in AUM are required by the SEC to disclose AUM each year, among other information, in a publicly accessible document called a Form ADV. How to Calculate Assets Under Management Different institutions have varied methods of calculating AUM. Some of these differences are structural — a mutual fund will calculate different than a financial advisor firm. Some, as well, are based on preference. For example, some institutions will have a looser definition of which assets count as under their discretion. This isn’t to say firms have total control on how they define AUM. The SEC also has rules that narrow down what can and can’t be included. When it comes to actually calculating AUM, some sort of portfolio management software will do the work for you today. Where it may have involved a fair bit of manual number crunching in the past, computers handle calculating value and adding it all up now. Mutual funds, especially large funds, are constantly updating their AUM, which they may also refer to as net assets. Because the calculation of AUM involves determining the market value of assets, any institution’s AUM will naturally fluctuate on a daily basis. This is because the value of investments like stock equity will fluctuate with the respective stock price . A mutual fund could start the day with $190 billion, have a great day at the office and end the day with $192 billion, simply because the existing assets increased in value. Bottom Line assets under management Assets under management can mean slightly different things depending on the context in which you see it. It could refer to the value of total investment in a mutual fund, the market value of assets a financial advisor controls or the amount of money you have invested in a firm. Further, AUM can sometimes be helpful in determining the reputation of a financial institution. However, it’s best to refrain from using that as the only factor you review. Tips for Finding a Financial Advisor Looking for a financial advisor to manage your assets? Finding the right advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now . A financial advisor’s assets under management is an important factor to consider when choosing whether to work with a firm. However, arguably more important is how they approach investing. While firms have overarching investing principles (for instance, favoring long-term investing ), most will seek to strike a balance between equities, fixed income and cash that aligns with your goals and risk tolerance. SmartAsset’s asset allocation calculator can help you do just that. Photo credit: ©iStock.com/filadendron, ©iStock.com/Wavebreakmedia, ©iStock.com/kate_sept2004 The post What Is Assets Under Management (AUM)? appeared first on SmartAsset Blog . Related Articles: How to Invest in Commodity Futures Where Investors Are Taking Advantage of Airbnb 2019 The Best Financial Planning Software Programs |
Is Retail Value Inc. (NYSE:RVI) A Healthy REIT?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Retail Value Inc. is a US$652m small-cap, real estate investment trust (REIT) based in Beachwood, United States. REIT shares give you ownership of the company than owns and manages various income-producing property, whether it be commercial, industrial or residential. The structure of RVI is unique and it has to adhere to different requirements compared to other non-REIT stocks. I’ll take you through some of the key metrics you should use in order to properly assess RVI.
Check out our latest analysis for Retail Value
Funds from Operations (FFO) is a higher quality measure of RVI's earnings compared to net income. This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation. For RVI, its FFO of US$73m makes up 41% of its gross profit, which means over a third of its earnings are high-quality and recurring.
Robust financial health can be measured using a common metric in the REIT investing world, FFO-to-debt. The calculation roughly estimates how long it will take for RVI to repay debt on its balance sheet, which gives us insight into how much risk is associated with having that level of debt on its books. With a ratio of 7.5%, the credit rating agency Standard & Poor would consider this as aggressive risk. This would take RVI 13 years to pay off using just operating income, which is a long time, and risk increases with time. But realistically, companies have many levers to pull in order to pay back their debt, beyond operating income alone.
Next, interest coverage ratio shows how many times RVI’s earnings can cover its annual interest payments. Usually the ratio is calculated using EBIT, but for REITs, it’s better to use FFO divided by net interest. This is similar to the above concept, but looks at the nearer-term obligations. With an interest coverage ratio of 1.04x, RVI is not generating an appropriate amount of cash from its borrowings. Typically, a ratio of greater than 3x is seen as safe.
I also use FFO to look at RVI's valuation relative to other REITs in United States by using the price-to-FFO metric. This is conceptually the same as the price-to-earnings (PE) ratio, but as previously mentioned, FFO is more suitable. In RVI’s case its P/FFO is 8.95x, compared to the long-term industry average of 16.5x, meaning that it is undervalued.
Retail Value can bring diversification into your portfolio due to its unique REIT characteristics. Before you make a decision on the stock today, keep in mind I've only covered one metric in this article, the FFO, which is by no means comprehensive. I'd strongly recommend continuing your research on the following areas I believe are key fundamentals for RVI:
1. Valuation: What is RVI 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 RVI is currently mispriced by the market.
2. Management: Who are the people running the company? Experienced management and board are important for setting the right strategy during a volatile market. Take a look atinformation on RVI's executive and directors 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Taking a Closer Look at Japan's Futuristic Attack Submarine
Photo credit: KAZUHIRO NOGI - Getty Images From Popular Mechanics Japan has unveiled what is very likely the design for its next-generation attack submarine. The 29SS submarines would replace the existing Sōryū class submarines starting in the early 2030s. The futuristic undersea warship will ensure that Tokyo retains its reputation for the quietest, most modern non-nuclear submarines in the world. Photo credit: TOSHIFUMI KITAMURA - Getty Images One of the largest submarine powers in the world is a country that technically doesn’t even have a navy: Japan. Japan’s Maritime Self Defense Force has over twenty diesel electric submarines that are considered the finest in the world. The current Sōryū class is a large, quiet submarine equipped with extensive soundproofing, automated combat systems, and an air-independent propulsion system that allows the submarine to operate for weeks without surfacing. Last year Japan upgraded the class by installing large banks of lithium-ion batteries as a quiet source of power. The Sōryū class is relatively young: the first sub was launched in 2009, and in many navies it’s difficult to imagine work already proceeding on a replacement. Japan however typically keeps its submarines in service for just twenty years, a relatively short time for modern warships. So it’s not exactly surprising that Mitsubishi Heavy Industries, one of Japan’s top submarine builders, has already unveiled the country’s next-generation submarine design, designated 29SS. The sub due in the late-2020s. (The designation “29SS” is derived from the 29th year of the reign of Emperor Akihito, otherwise known to everyone else as 2017, and SS is the international shorthand for non-nuclear attack submarine.) 三菱重工 海自向け新潜水艦コンセプトモデル 29SSの次世代型潜水艦として、30FFMで採用された統合コントロールシステムを潜水艦に採用。 全ての情報を艦内1箇所の大型モニターに集約し、省力化を考慮した。 従来の潜水艦と全く異なる、新コンセプトの潜水艦。 pic.twitter.com/cJ8XjBdeLS - フランカー (@kh840124) June 18, 2019 Noted submarine authority H.I. Sutton says 29SS is a "new design...based on the Sōryū class with its distinctive bow form and hull outline, but [it] differs significantly in the sail and hydroplane arrangement." Story continues 29SS retains the general hull form of earlier submarines but with some important changes. The sail is substantially reduced and blended into the hull, which should reduce hydrodynamic drag. This will make the submarine quieter, perhaps a little faster, but also more energy efficient. Non-nuclear powered submarines, operating underwater under combat conditions, must carefully manage their power or risk being forced to surface. The dive planes have also been moved from what’s left of the sail to the hull. Photo credit: H.I. Sutton/Covert Shores 29SS also features a pumpjet instead of the traditional propeller for propulsion. Unlike traditional propellers, which use unshrouded blades to churn through the water, a pumpjet sucks in water and ejects it under pressure from the rear of the pumpjet. Pumpjets are quieter and more maneuverable than bare propellers and are generally used on faster, nuclear-powered submarines. Although Japan will likely not field a nuclear-powered ship anytime soon alternate propulsion systems, such as all-electric drives, could provide a speed boost. “After the Second World War there was a hiatus in Japanese submarine building," H.I. Sutton told Popular Mechanics . "When it resumed it was heavily influenced by American submarines, but over time Japan has gone its own way in submarine design.” Modern Japanese submarines have a reputation for sophistication, pioneering the application of new technologies, like lithium-ion batteries. The new submarine design focuses on improving the actual fabric of the submarine and shows that the Japanese navy will continue pushing the by building highly capable submarines which are arguably the best non-nuclear submarines in the world. Photo credit: Twitter 29SS will likely retain the same armament as the Sōryū boats, which consists of six bow-mounted 533-millimeter torpedo tubes. The submarine can carry up to thirty torpedo-launched weapons, a mixture of the Type 89 heavyweight torpedo and the Sub Harpoon anti-ship missile. Although there is a general trend towards installing vertical launch silos behind a submarine’s sail, Japan does not have the missiles to fill them. The research and development phase will take place from 2025 to 2028, and the first ship of this class will probably hit the water around 2031. Source: Covert Shores . ('You Might Also Like',) This Device Can Send Messages Without Cell Service The Best Portable BBQ Grills for Cooking Anywhere The Best Video Game the Year You Were Born |
Parents reveal how much they'd be willing to pay to stop their child's temper tantrum
If you could resolve your child's public temper tantrum withcash— would you open your wallet?
Arecent surveyfrom insurance broker Policygenius found that one in five parents would do just that. And 44 percent of parents who said they’d pay also said they’d be willing to spend $500 or more.
But giving in to a child’s temper tantrum is just “a short-term solution to a long-term problem,” Susan Newman, a social psychologist and author of “The Book of No,” told Policygenius.
“You’re essentially just paying your child off,” she said. “By paying the ransom you’re reinforcing the behavior.
Saying no will teach children resilience and how to deal with disappointment, Newman told the broker. It’ll alsosave parents moneyas their children get older.
Practicing good money habits also helps teach those good habits to children, Newman said, according to the report.
Policygenius said it surveyed 1,500 parents with children under 18 earlier this month. Theyalso foundthat about 63 percent of parents have talked to their children about at least one major financial concept. Of those who did, budgeting was the most common concept discussed, followed by debt and charity.
But more than a third of parents surveyed also said they hadn’t talked about money with their children. The Department of Education has also released reports showing less than half of high school seniorshave a solid understanding of economics.
CLICK HERE TO GET THE FOX BUSINESS APP
Vince Shorb, the CEO of National Financial Educators Council, previously told Fox Business that high schoolers aren’t the only ones who don’t understand economics.
“People don’t understand the basics about money,” he said. “In the U.S. it has to do with parents not talking about money, not bringing them into activities that involve money. At grocery stores you see children begging and throwing tantrums over wanting something and parents just cave instead of making it a teachable moment.”
Fox Business’ Kathryn Buschman Vasel contributed to this report.
Related Articles
• How Much is Michael Phelps Worth?
• Ryan Lochte's Brand Value Sinks Amid Rio Scandal
• Here's How You Get a Body Like An Olympian |
At US$16.49, Is It Time To Put MarineMax, Inc. (NYSE:HZO) On Your Watch List?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
MarineMax, Inc. (NYSE:HZO), which is in the specialty retail business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $19.9 and falling to the lows of $15.53. 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 MarineMax's current trading price of $16.49 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 MarineMax’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for MarineMax
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 6.49% above my intrinsic value, which means if you buy MarineMax today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $15.48, there’s only an insignificant downside when the price falls to its real value. In addition to this, MarineMax has a low beta, which suggests its share price is less volatile than the wider market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. MarineMax’s earnings over the next few years are expected to increase by 62%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?HZO’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor?If you’ve been keeping an eye on HZO, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on MarineMax. You can find everything you need to know about MarineMax inthe latest infographic research report. If you are no longer interested in MarineMax, 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. |
Roku Extends Slide as Analysts See Retreat From Red-Hot Run
(Bloomberg) -- Roku Inc. shares fell on Tuesday, with the stock retreating further from record levels in what analysts said was a reaction to the company’s massive year-to-date advance. The stock dropped as much as 6.6% in what was on track to be its fourth straight decline, its longest losing streak since a six-day decline in April. Roku, a platform for video-streaming services, has lost about 12% over the four-day slump. Even with the recent losses, the stock is up nearly 250% from a December low, and it hit record levels last week. “There are plenty of examples of high-growth companies that are well positioned in popular sectors, where investors get ahead of themselves,” said Tom Forte, an analyst at D.A. Davidson who has a buy rating on the stock. “Roku is in a very favorable position, where it can exploit the large investments being made by participants in the video category -- not just Netflix, but also Amazon, Apple and Disney,” he told Bloomberg in a phone interview. “As video ad revenue gravitates to where the eyeballs are, to [over-the-top] services and away from legacy, linear television, I think it has the ability to grow into its valuation.” Roku’s stock has long been in a tug-of-war between its high levels of growth and a valuation that analysts often see as excessive. The stock can be extremely volatile, moving more than 20% following each of its past four quarterly results. Roku’s second-quarter results are estimated to come out on August 7, according to data compiled by Bloomberg. Currently, analysts expect it to report revenue growth of more than 40%, a pace that’s expected to continue in the subsequent quarter, and then stay above 30% for the next two quarters. This growth is seen as fueled by the company’s continued popularity with consumers at a time when streaming video has become a dominant part of the entertainment landscape. According to a Citi analysis of over-the-top services, the Roku Channel was the seventh most popular channel in May, up from ninth place in April. Story continues “The market clearly believes Roku has nearly unlimited growth potential,” wrote Wedbush analyst Michael Pachter in a report dated June 24. He added that while the company had built “an exceptional platform” and “has positioned itself as best in class for OTT advertising,” these factors were “fully priced in” the share price. Wedbush has a neutral rating on Roku, but on Monday boosted its price target to $105 from $65. To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.net To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven Fromm For more articles like this, please visit us at bloomberg.com ©2019 Bloomberg L.P. |
What to Expect from Nike's (NKE) Q4 2019 Earnings Results
Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains dives into what investors should expect from Nike’s NKE Q4 fiscal 2019 financial results that are due out Thursday. This includes a breakdown of Nike’s key North American and Greater China segments and much more.
Nike stock fell 1.46% on Monday and was down 1.62% through morning trading Tuesday. Shares of NKE now hover at around $83.14, which marks over a 6% downturn from their 52-week intraday high of $90.00 per share. Overall, Nike stock is up roughly 12% so far this year, which comes in below the Apparel Market Average and the S&P 500, as well as peers Lululemon LULU, Adidas ADDYY, and Under Armour UAA. Nike’s valuation picture also appears just a tad bit stretched at the moment.
Nike is coming off a better-than-projected third quarter. However, executives said they expect low-single-digit revenue growth in Q4. The uncertainty of the U.S.-China trade war also looms over the apparel and footwear industry.
Despite some of these worries, Nike’s overall outlook appears strong over the long run as it expands its digital and direct-to-consumer push in the Amazon AMZN age, which includes its own apps as well as growth across platforms such as Instagram FB. With that said, the sportswear giant has not abandoned its wholesale business altogether, it has instead focused on more measured partnerships with the likes of Foot Locker FL and Dick’s Sporting Goods DKS. Most importantly, Nike has continued to grow its reach around the globe through the mixture of sports and fashion.
Looking ahead, our Zacks Consensus Estimates call for the company’s quarterly revenue and earnings estimates to come in below Q3’s expansion. Therefore, Nike’s North American, Greater China, and digital segments will likely grab even more attention from Wall Street Thursday.
Nike is due to release its Q4 fiscal 2019 earnings results after the closing bell on Thursday, June 27. So, make sure to head back to Zacks for more on the company’s actual metrics and 2020 guidance.
As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating wherever you listen to your podcasts.
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>>
Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportFacebook, Inc. (FB) : Free Stock Analysis ReportFoot Locker, Inc. (FL) : Free Stock Analysis Reportlululemon athletica inc. (LULU) : Free Stock Analysis ReportDICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis ReportNIKE, Inc. (NKE) : Free Stock Analysis ReportAdidas AG (ADDYY) : Free Stock Analysis ReportUnder Armour, Inc. (UAA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is It Time To Consider Buying MarineMax, Inc. (NYSE:HZO)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
MarineMax, Inc. (NYSE:HZO), which is in the specialty retail business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $19.9 at one point, and dropping to the lows of $15.53. 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 MarineMax's current trading price of $16.49 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 MarineMax’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for MarineMax
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 6.49% above my intrinsic value, which means if you buy MarineMax today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $15.48, there’s only an insignificant downside when the price falls to its real value. What's more, MarineMax’s share price may be more stable over time (relative to the market), as indicated by its low beta.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 62% over the next couple of years, the future seems bright for MarineMax. 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?HZO’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor?If you’ve been keeping tabs on HZO, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on MarineMax. You can find everything you need to know about MarineMax inthe latest infographic research report. If you are no longer interested in MarineMax, 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. |
Chinese electric automaker BYD opens first plant in Canada
(Reuters) - Chinese electric vehicle maker BYD Co Ltd said on Tuesday it had opened its first plant in Canada, which will initially focus on assembling buses for the Toronto Transit Commission, a public transport agency.
The 45,000 sq.ft. facility is based in Ontario and the transport agency will receive 10 electric buses with an option for 30 more, the Warren Buffett-backed company said.
As traditional automakers withdraw from Canada, municipalities across the country are doubling their efforts to tackle climate change through zero-emissions transit, Ted Dowling, vice-president of BYD Canada, said.
Last year, Reuters reported that the company had put plans to open its first Canadian electric truck plant on hold but could revive the project when the electric vehicle maker sees a business case.
BYD had last year planned to open the site with about 40 workers, aimed at boosting green manufacturing in Ontario, Canada's most populous province.
The company is looking to replicate its Lancaster, California plant, which started with about 100 workers in 2013 and now employs more than 750 people.
(Reporting by Arundhati Sarkar in Bengaluru and Allison Lampert in Montreal; Editing by Anil D'Silva and Arun Koyyur) |
Monkeys ‘actually entered the Stone Age 3,000 years ago’
'Brown Capuchin Monkeys' (Sapajus libidinosus) NELSON ALMEIDA/AFP Monkeys in South America entered the Stone Age 3,000 years ago, using carefully chosen stone tools to hammer and dig, researchers have found. The capuchin monkeys’ chosen implements highlight how their use of technology has evolved, selecting pounding tools of varying sizes and weights. Stone implements found at a site in Brazil show signs of a shift over the last three millennia, between dealing with relatively small, soft foods or larger, hard-shelled foods. At least four groups of primates are thought to have entered the Stone Age. ‘It’s likely that local vegetation changes after 3,000 years ago led to changes in capuchin stone tools,’ says archaeologist Tomos Proffitt of University College London. Read more from Yahoo News UK: Man who shot dead his best friend cleared of murder Boris Johnson fumbles answers as he’s quizzed on Brexit Bill Gates reveals Microsoft’s biggest ever mistake It is the first evidence of changing patterns of stone-tool use in a nonhuman primate. Relatively small, heavily damaged pounding implements from between around 3,000 and 2,500 years ago were likely used to smash open tiny foods such as seeds or fruits with soft rinds, the researchers say. Similar tools uncovered at the site date to around 600 years ago. Larger pounding stones from overlying sediment appeared about 300 years ago. The appearance of bigger capuchin tools by around that time denoted a shift to eating hard-shelled fruits and nuts that required high-impact pounding to open, the team says. Then starting roughly 100 years ago, capuchins downsized pounding stones slightly to crack cashews efficiently, the researchers suspect. Capuchins living near the site today like to eat cashews that the animals crack with similar pounding stones. Hominids began making and using stone tools at least 2.6 million years ago. |
Hyundai dealers to offer customers Lyft rides through CDK app
June 25 (Reuters) - Hyundai dealers in the United States will offer Lyft Inc rides to customers getting their vehicles serviced at dealerships, the companies said on Tuesday, the latest in a string of partnerships by the ride services company. Dealers who subscribe to Hailer application through CDK Global Inc will be able to offer rides without the customer having to install the Lyft app. Lyft, which debuted on the New York Stock Exchange a couple of months before Uber, has partnered with several companies to offer its services in a bid to gain share in a market dominated by bigger rival Uber Technologies Inc. Last week, the company struck a deal with Agero Inc to provide rides for consumers whose cars need a tow assistance, and has also become the official rideshare of Disney Parks and Resorts. Last month, the company partnered with Google's Waymo to deploy vehicles on Lyft app. Ever since their market debut, shares of both Lyft and Uber have been under pressure, with investors struggling to figure out how much these companies are worth. The ride-hailing companies have not given a timeline for turning a profit. Lyft had 30.7 million riders and 1.9 million drivers in more than 300 cities in the United States and Canada last year. (Reporting by Vibhuti Sharma in Bengaluru; Editing by Arun Koyyur) |
Dunkin' Just Confirmed Kit Kat, Heath, And Hershey’s Cookies ‘n Crème Iced Coffees Are Coming This Summer
Photo credit: Dunkin' From Delish When you’re a kid, each morning feels like a painstaking campaign to get your parents to allow candy for breakfast. As an adult, you begin to recognize the magical healing powers only coffee can provide in the a.m. Well, get ready for your childhood and adulting worlds to collide. Dunkin’ partnered with Hershey’s for a candy-coated, caffeinated collab we didn’t know we needed this desperately. Yes, you heard me. For a limited time, beginning Wednesday, June 26 you can grab iced coffees made with Kit Kats, Heath bars, and Hershey’s Cookies ‘n Crème. This isn’t actually the first time Dunkin’ has incorporated Hershey’s into its menu, lest you forget its Hershey’s kiss-topped holiday donut in 2018. But this was a long-rumored release, with speculation about Kit Kat Dunkin’ coffee emerging earlier this month. Feel free to disband your conspiracy boards and get ready for the new Kit Kat Coolatta, a frozen beverage that features Vanilla Bean-flavored Coolatta, mixed with crispy wafers of Kit Kat. While you recover from that invention, prepare yourself for Heath-flavored coffee, which intertwines milk chocolate and English coffee tastes. Hershey’s Cookies ‘n’ Cream flavored coffee combines white chocolate with notes of cookie flavors. Plus, you’ve got options for how you’d like to be taken down via sugar coma. Both flavored coffees can be hot, iced, an espresso drink, frozen coffee, or frozen chocolate. . @KitKat_US Those who break together stay together. Want to make it official? pic.twitter.com/uQFSqUTKkl - Dunkin' (@dunkindonuts) June 25, 2019 To remind you why donut was ever in its name in the first place, Dunkin’ is releasing a Hershey’s Cookies ‘N’ Crème Donut-a square-shaped confection filled with vanilla buttercream and topped with Hershey’s cookie crumbles. (No pinch required. This is real.) Another real-life dream? Every week through July at nationwide Dunkin’ locations, at least one guest will be surprised at the counter with a Sweet Escape trip to the Bahamas for two. Oh, and while you’re coming down from your sugar high, fire up the summer vibes by biting into Dunkin’s limited-edition Sweet BBQ Bacon Breakfast Sandwich. Egg, cheese, and extra bacon, all coated in sweet BBQ seasoning makes for an unforgettable a.m. This news is so major, it may even inspire Kendall Jenner to embrace the Hershey’s life. Story continues ('You Might Also Like',) Crave Carbs? We Created This 21-Day Keto Plan Just for You Insanely Easy Weeknight Dinners To Try This Week 29 Insanely Delicious Vodka Cocktails View comments |
Rayonier Inc. (NYSE:RYN) Insiders Have Been Selling
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sellRayonier Inc.(NYSE:RYN), you may well want to know whether insiders have been buying or selling.
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Rayonier
The Senior VP & CFO, Mark McHugh, made the biggest insider sale in the last 12 months. That single transaction was for US$326k worth of shares at a price of US$32.62 each. That means that an insider was selling shares at around the current price of US$30.26. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last twelve months insiders netted US$329k for 10100 shares sold. Rayonier insiders didn't buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Rayonier better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Over the last three months, we've seen significant insider selling at Rayonier. In total, insiders sold US$329k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Rayonier insiders own 0.6% of the company, worth about US$22m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
Insiders sold Rayonier shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. Of course,the future is what matters most. So if you are interested in Rayonier, you should check out thisfreereport on analyst forecasts for the company.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
How Eyecarrot Innovations Corp. (CVE:EYC) Can Impact Your Portfolio Volatility
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
If you own shares in Eyecarrot Innovations Corp. (CVE:EYC) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
View our latest analysis for Eyecarrot Innovations
Given that it has a beta of 0.90, we can surmise that the Eyecarrot Innovations share price has not been strongly impacted by broader market volatility (over the last 5 years). This suggests that including it in your portfolio will reduce volatility arising from broader market movements, assuming your portfolio's weighted average beta is higher than 0.90. Beta is worth considering, but it's also important to consider whether Eyecarrot Innovations is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of CA$3.6m, Eyecarrot Innovations is a very small company by global standards. It is quite likely to be unknown to most investors. It is not unusual for very small companies to have a low beta value, especially if only low volumes of shares are traded. Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility.
The Eyecarrot Innovations doesn't usually show much sensitivity to the broader market. This could be for a variety of reasons. Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments. Alternatively, an strong dividend payer might move less than the market because investors are valuing it for its income stream. In order to fully understand whether EYC is a good investment for you, we also need to consider important company-specific fundamentals such as Eyecarrot Innovations’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are EYC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has EYC 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 EYC's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Venezuelan president Nicolas Maduro's ex-spy chief reveals new details of plot topple him
Nicolas Maduro remains in power in Venezuela despite plots to unseat him and opposition from America - AFP The former spy chief to embattled Venezuelan president Nicolas Maduro has revealed new details of the plot to oust him including code names, secret meetings and a back channel to the Americans. Gen. Manuel Ricardo Cristopher Figuera, who fled the country after the plot collapsed in May , laid bare the full scale of the plan during an interview with The Washington Post . Mr Figuera was head of the Venezuelan intelligence police force SEBIN but became disillusioned with Mr Maduros leadership as the country spiraled into economic and political chaos this year. The decision by Juan Guaido, an opposition politician and leader of the National Assembly, to declare himself interim president in January triggered months of turmoil, splitting the international community. Mr Figuera said that while in post he was taken aback by Mr Maduros apparent reliance on Raul Castro, the former brother of Fidel Castro who until last year was the Cuban president. He said that once Mr Maduro interrupted a meeting when Mr Castro called and said after the conversation that a team of Cuban technicians would be dispatched to help stop power outages. Raul Castro was like an adviser for Maduro, Mr Figuera said. The comments add to US claims that Cuba as well as Russia is helping prop up Mr Maduro's regime. Mr Figuera also made allegations against Iris Varela, Mr Maduros prisons minister, claiming she demanded 30,000 rifles to arm male prisoners she had trained up. The allegations have not been verified by this newspaper. The Washington Post said that requests for a response from Venezuelan government figures for their article produced no comment. Mr Figuera claimed that he and other senior figures in the Maduro administration begun to plan how to oust the president, discussing declaring together in favour of Mr Guaido. There were code names. Mr Figuera, an Afro-Venezuelan, said that he was known as Black Panther. Other figures involved were nicknamed Superman and Child Eater. Mr Figuera said that Maikel Moreno, chief justice of Venezuelas Supreme Court, and Vladimir Padrino Lopez, the defence minister, were involved in discussions about removing Mr Maduro. He said that a back channel to the Americans had been established through his wife and that the plot would have involved the Supreme Court saying Mr Guadios claim was legitimate. However the plot unraveled once it begun to become public, with Mr Lopez and Mr Moreno siding with Mr Maduro. Mr Figuera then fled the country and is now in America. View comments |
The Obamas and Clooneys Have a Chic Double Date in Lake Como
Photo credit: Getty Images From Harper's BAZAAR There are double dates and then there are DOUBLE DATES and today, the Obamas and the Clooneys joined forces for the all-caps version. Barack and Michelle joined George and Amal at their home in Lake Como, Italy this weekend-making for one of the most epic (and powerful) group dates of all time. Serving up some major summer style inspo, Michelle Obama and Amal Clooney were spotted in chic vacation looks while on a private boat. The former First Lady donned a white top complete with billowy sleeves while the human rights attorney opted for a colorful dress with pink and orange prints by Gucci . Photo credit: INSTARimages.com Their husbands joined the excursion as well, each wearing suits (Barack in black and George in gray) for the occasion. Though it's likely the couples were on their way to a charity dinner for The Clooney Foundation for Justice, it's unclear exactly what they were up to on their night out. Photo credit: Splash News Obama and Clooney's friendship dates back to before Obama was elected president in 2008. The two previously worked together to aid people in Darfur during Obama's time as a senator, according to ET . They've since maintained a close relationship over the years, bonding over their charity work and humanitarian causes. Barack and Michelle's visit to the Clooneys' Lake Como home follows their vacation to France last week. Just days after their youngest daughter Sasha's graduation from high school, the family ventured to the South of France for a family getaway . Sasha, 18, and Malia, 20, delivered some A+ vacation looks during the trip. Photo credit: MEGA ('You Might Also Like',) The Essential British Packing List 30 Facial Moisturizers for Every Budget We Cut Bangs on 16 Different Women With The Help of Celebrity Stylist Justine Marjan |
Two members of 'callous' puppy farming gang jailed
Two members of a gang in charge of a commercial puppy farming operation Michael Rushmer, 27, and Jacob Murphy, 27 have been jailed three years and six months. Two members of a "callous" puppy farming gang have been jailed for selling dogs they fraudulently claimed were bred in a family environment, when they were actually "sickly and diseased", with some dying within days of being sold. Norwich Crown Court heard that the puppies were advertised for sale as being healthy, socialised and treated for worms and fleas. But when police raided one of their premises in 2017 they found dogs in cages, some in "pitch-dark sheds with no access to light" and others "in a caravan at temperatures of up to 30C", prosecutor Hazel Stevens said. Michael Rushmer, 27, of Low Road, Thurlton, Norfolk, his sister Zoe Rushmer, 26, of no fixed address, and her partner Jacob Murphy, 27, of The Street, Norton Subcourse, all admitted conspiracy to commit fraud by false representation between June 1, 2016 and June 18, 2018. Inside the puppy farm. (RSPCA) Michael Rushmer admitted continuing the offending while on bail for the offence, pleading guilty to a further count of conspiracy to commit fraud by false representation between July 15 2018 and March 16 2019. Michael Rushmer and Murphy were both jailed for three years and six months. Zoe Rushmer was given a two-year prison sentence suspended for two years and ordered to complete 250 hours of unpaid work. Judge Andrew Shaw told the mother-of-four: "It's your children and only your children that have spared you from going to prison." One of the puppies that were fraudulently claimed to have been bred in a family environment, when in fact they were "sickly and diseased" and bred in a "commercial" environment. All three defendants were also disqualified from "owning, keeping or otherwise dealing with dogs for life", and they cannot appeal against this ruling for at least 10 years. He said the fraud, which began "at least as early as 2015", "strikes at the very heart of this nation's love for its pets, dogs in particular". He described Murphy as the "ringleader", Michael Rushmer as "his deputy if not his equal" and Zoe Rushmer as "the legitimate face of your brother's and partner's criminal enterprise" who "even lent (her) own children to the affair as part of (her) efforts to lend a veneer of respectability" to what they were doing. Story continues Ms Stevens said that the dogs had an average price of £675 and the gang made £300,000 from the fraud, though they claimed it was nearer £150,000. Statements were taken from 31 purchasers and one buyer was told by the sellers that their puppy died "due to their negligence" and were refused help with their £2,000 vet bill, Ms Stevens said. Read more from Yahoo News UK: Man who shot dead his best friend cleared of murder Boris Johnson fumbles answers as he’s quizzed on Brexit Bill Gates reveals Microsoft’s biggest ever mistake She added: "This fraudulent activity succeeds as the people who want to buy these small-type breeds, or cross-breeds, want to do something for their family, and because once they see the dog they want to rescue it or buy it. "Once they've fallen in love with the puppy, regardless of the circumstances nine times out of 10 they buy the puppy, even if they think something is going on." She described it as a "sophisticated offence" which required "significant planning", with defendants using false names and addresses and multiple SIM cards so different phone numbers could be used in adverts. Barrister Andrew Oliver said in mitigation that Michael Rushmer took over the business from his late father, started to use cocaine and made the "foolish decision" to buy dogs from travellers, which introduced parvovirus to the farm. Zoe Rushmer was remorseful and Jacob Murphy was trying to fund his drug habit, the court heard. Michael Rushmer also admitted 10 animal welfare offences, and operating a pet shop and breeding establishment without a licence. Zoe Rushmer admitted four animal welfare offences and Murphy admitted three. Jean Boyes, 67, also admitted conspiracy to commit fraud by false representation between June 1, 2016 and June 18, 2018, but the court heard her role was limited to taking a litter of seven puppies to be inoculated on a single occasion. Boyes, whose given address is The Street, Bramerton, but the court heard was now living in a car, was given a two-year conditional discharge. Watch the latest videos from Yahoo UK |
Shareholders Are Raving About How The Abitibi Royalties (CVE:RZZ) Share Price Increased 390%
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
For many, the main point of investing in the stock market is to achieve spectacular returns. And highest quality companies can see their share prices grow by huge amounts. Don't believe it? Then look at theAbitibi Royalties Inc.(CVE:RZZ) share price. It's 390% higher than it was five years ago. If that doesn't get you thinking about long term investing, we don't know what will. The last week saw the share price soften some 2.0%.
See our latest analysis for Abitibi Royalties
With just CA$404,038 worth of revenue in twelve months, we don't think the market considers Abitibi Royalties to have proven its business plan. So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). For example, investors may be hoping that Abitibi Royalties finds some valuable resources, before it runs out of money.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Some Abitibi Royalties 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.
Our data indicates that Abitibi Royalties had CA$3,155,468 more in total liabilities than it had cash, when it last reported in March 2019. That puts it in the highest risk category, according to our analysis. So the fact that the stock is up 37% per year, over 5 years shows that high risks can lead to high rewards, sometimes. Investors must really like its potential. You can click on the image below to see (in greater detail) how Abitibi Royalties's cash levels have changed over time.
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. However you can take a look at whether insiders have been buying up shares. It's usually a positive if they have, as it may indicate they see value in the stock. Luckily we are in a position to provide you with thisfreechart of insider buying (and selling).
It's good to see that Abitibi Royalties has rewarded shareholders with a total shareholder return of 26% in the last twelve months. However, the TSR over five years, coming in at 37% per year, is even more impressive. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.You can find out about the insider purchases of Abitibi Royalties by clicking this link.
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
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. |
AOL Co-Founder: 2020 Candidates Need to Address the Entrepreneurial Gap
In the lead up to the 2016 election, I issued a clarion call to all political parties: become the party for startups and prioritize policies that promote the creation of the high growth businesses responsible for all net new job creation in this country.
Four years later, and I am still advocating for an entrepreneurial agenda. Politicians in the U.S. have started to recognize the geographic inequality that exists in this country, in part because the benefits of technology and innovation have accrued for too few people, in too few cities. But not enough has been done to address this issue. Now is the time to bridge that divide by supporting entrepreneurs everywhere.
The good news is that there are early signs presidential candidates are paying attention. John Delaney, a former Maryland Congressman,announced in Aprilplans to create an Entrepreneurship Czar tasked with encouraging entrepreneurship in rural and urban communities often overlooked by traditional venture investors. Beto O’Rourkewants to triplethe Minority Business Development Agency’s annual funding to $102 million with the goal of increasing mentorship and technical assistance for diverse entrepreneurs. And most recently, Elizabeth Warrenunveiled a proposalto create a $7 billion Small Business Equity Fund to provide grants to minority entrepreneurs.
Such support is critical for bridging that entrepreneurial divide. For instance, as I learned during my road trips (11,500 miles to date) forRevolution’s Rise of the Rest, the number one challenge expressed by founders outside of Silicon Valley is access to capital. According to theNational Venture Capital Association, more than 75% of venture capital last year went to just three states: California, New York, and Massachusetts. Companies with at least one female founderreceive just 12% of venture capitaland less than1% of venture backed firmshave an African-American founder. So, what does this mean if you’re an entrepreneur starting a company? Even if you have a transformative idea, it matters where you live; it matters what you look like; and it matters who you know. That should not be the hallmark of a great entrepreneurial nation.
And while many people in the tech community are talking about diversity, solutions often fail to acknowledge the depth of the structural inequities and biases ingrained over years in the tech and venture capital ecosystem. Tech founders and investors have relied on easily accessible pipelines for talent and investment—hiring and investing in people that look like them and went to the same schools as them—for far too long for these inequities to change overnight. Yes, we need to establish programs that teach all students that entrepreneurship is a viable path. And we need mentorship efforts to support diverse founders and we need more investors who are men and women of color. But we also need efforts to get founders the dollars they need to scale businesses right now.
It is clear that technology plays an outsized role in our lives today. We have entered the third wave of technology where it is no longer about the Internet of Things but the Internet of Everything. Because so many things in this next wave touch critically important areas of society—healthcare, transportation, food, financial services—it is more important now than ever to have diverse representation creating and debating the merits of new technologies. Without such diversity, we risk creating innovations that don’t address the needs of all users, or worse, negatively impact certain groups of individuals.
Presidential candidates will put forth an endless number of policy proposals throughout the primaries, but I hope many will follow the above candidates and present real plans on how to best reignite entrepreneurship. And I hope that moderators press them on those plans at the upcoming debates to further highlight the issue. Supporting small businesses and startups in cities across this country, in all communities, is not only core to continued economic growth, but also to the ability to create innovations that positively impact society.
The U.S. became the world’s most innovative nation because we created an environment in which the builders of new ideas could flourish. To remain the world’s most entrepreneurial nation, policymakers (and the voters that elect them) must be serious about leveling the playing field so that all entrepreneurs have an opportunity to contribute to our shared economic future.
Steve Case is the co-founder of AOL, the chairman and CEO of Revolution LLC, the chairman of the Case Foundation, and the author ofThe Third Wave: An Entrepreneur’s Vision of the Future.
—Western Union CEO: Why cashless bankingis actually bad for business
—Businesses need to step up and address the refugee crisis,says TripAdvisor’s CEO
—Why New York City is introducingsocial-emotional learning in its schools
—Immigration and climate change are linked. To address one,we must solve both
—Amazon’s top lawyer calls for more fundingto fix the broken civil justice system
Listen to our new audio briefing,Fortune500 Daily |
Do Institutions Own Excellon Resources Inc. (TSE:EXN) Shares?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
If you want to know who really controls Excellon Resources Inc. (TSE:EXN), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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.'
Excellon Resources is not a large company by global standards. It has a market capitalization of CA$93m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about EXN.
View our latest analysis for Excellon Resources
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.
Institutions own less than 5% of Excellon Resources. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
Excellon Resources 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 company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of Excellon Resources Inc.. Insiders have a CA$20m stake in this CA$93m business. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
The general public, mostly retail investors, hold a substantial 74% stake in EXN, 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.
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. |
US border chief resigns amid outcry over treatment of migrant children
Donald Trump said he did not know why John Sanders decided to resign - REUTERS The acting commissioner of the US Customs and Border Protection (CBP) agency, John Sanders, is resigning and will leave his post on July 5, amid an outcry over the treatment of detained migrant children. His departure comes amid mounting public backlash over alarmingly unsanitary conditions at an overcrowded migrant facility in Clint, Texas where the discovery of poor care and lack of access to showers or clean clothing prompted the relocation of 250 detained children. The situation has led immigration activists and Democrats to step up criticism of President Donald Trump's hard-line immigration policies. Mr Sanders, whose resignation was first reported by The New York Times , has led the agency since April, when Mr Trump reshuffled the management of US immigration agencies under the Department of Homeland Security. Before taking over CBP, he was the agency's chief operating officer and had also been the Transportation Security Administration's chief technology officer. A temporary detention facility in Clint, Texas Credit: AFP Mr Trump said he had not ask for Mr Sanders to quit, calling him a good man and saying he did not know why he decided to resign. Dealing with a surge of migrants at the US -Mexico border has been a priority for Mr Trump - but the president has proven unable to push most of his goals through Congress. On Tuesday, Democrats in the House of Representatives said they plan to approve $4.5 billion (£3.5 billion) in emergency funding to address the crisis caused by the migrant surge, but the measure has drawn a veto threat from Mr Trump. "This week we have to solve the humanitarian crisis," Hakeem Jeffries, chair of the House Democratic Caucus Chairman said, predicting that the funding package would pass the House with a "strong Democratic vote." But lawmakers were also rushing to add language before the vote to mandate better health and nutrition standards at border facilities. The changes were being made after some liberal Democrats expressed alarm that not enough was being done to improve conditions at the border, where the number of migrants apprehended surged in May to the highest level since 2006. |
Alien crystals ‘unlike any seen on Earth’ could be on Saturn’s moon Titan
The Cassini spacecraft's view of the moons Tethys and Titan were captured in 2012 (Getty) Crystals unlike anything seen on Earth could adorn lakes on the surface of Titan, a moon of Saturn where huge dunes of frozen chemicals roll across the surface. NASA has previously said that liquid water may exist deep under Titan's surface - making it one of the places in the solar system where life could exist. Researchers at NASA’s Jet Propulsion Laboratory simulated the brutally cold ‘chemical soup’ of Titan’s surface - and found crystals which don’t exist on Earth. Previously the researchers have discovered two ‘molecular minerals’, but recently unearthed a third made from acetylene and butane (used in welding and cooking stoves on Earth). On Titan, where the temperature is 90 Kelvin, they actually form crystals, the researchers say. Read more from Yahoo News UK: Man who shot dead his best friend cleared of murder Boris Johnson fumbles answers as he’s quizzed on Brexit Bill Gates reveals Microsoft’s biggest ever mistake The researchers wrote in a paper, ‘We have demonstrated previously that some organic molecules readily form co-crystals in Titan-relevant conditions, including acetylene. ‘We report here preliminary evidence for a third co-crystal between acetylene and butane, which could be the most common molecular mineral discovered so far.’ The researchers believe that structures of the strange crystals could form circles around the lakes of liquid methane on Titan’s surface. structures of alien crystals encircling Titan's methane lakes. |
AbbVie (ABBV) Stock Falls After $63 Billion Allergan Acquisition Announcement
AbbVie ABBV stock fell over 15% through Tuesday morning trading. The significant drop came after the company announced that it will acquire Allergan PLC AGN in a deal worth approximately $63 billion. The drop brought AbbVie stock to a new 52-week low of $66.56 per share. Meanwhile, Allergan stock jumped about 27% after the news.
AbbVie and Allergan agreed on compensation of $120.30 in cash and 0.8660 ABBV shares per AGN share. This valued AGN stock at $188.24, a 45% premium from its closing price on Monday. AbbVie is the producer of the world’s best-selling drug Humira and Allergen is the producer of Botox.
Allergan shareholders still need to vote to approve the deal, but it looks to be a great one for Allergan as many analysts believed the company was headed toward a split to increase shareholder value. AbbVie, in its press release, stated that it expects “the Acquisition will provide annual pre-tax synergies and other cost reductions of at least $2 billion in year three.” Combined R&D resources as well as a reduction in supply chain and manufacturing redundancies are said to be the main sources of these synergies.
Along with synergies, AbbVie expects the acquisition to provide significant cash flow generation. AbbVie and Allergan generated a combined operating cash flow of $19 billion in 2018. AbbVie is looking to use the new cash flow to reduce its debt and continue its dividend growth, which are reasons for investors to be happy.
AbbVie is heavily reliant on revenue from Humira, which brought in $20 billion in revenue last year. But AbbVie has been looking to diversify its portfolio as cheaper alternatives are already becoming available in Europe. Plus, AbbVie’s patent on the drug will expire in 2023 in the U.S. Adding Botox, the most popular cosmetic procedure in the U.S., to its portfolio is a good way for AbbVie to diversify.
Allergan also has products in other major sectors. These sectors include neuroscience, eye care, women’s health, cystic fibrosis, and cardiovascular and infectious diseases. Allergan’s stock has struggled since an attempted merger with Pfizer PFE failed in 2016 in which Pfizer valued AGN at $363.63 per share, nearly double the amount AbbVie is set to pay.
Before Tuesday’s announcement, AGN stock had fallen around 32% over the past 12 months, while ABBV was down over 15%. The acquisition could provide a boost for AbbVie’s stock down the road as it is projected to increase the company’s cash flow as well as diversify its product portfolio.
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 reportAllergan plc (AGN) : Free Stock Analysis ReportAbbVie Inc. (ABBV) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Here's What Sanford Limited's (NZSE:SAN) P/E Ratio Is Telling Us
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). To keep it practical, we'll show how Sanford Limited's (NZSE:SAN) P/E ratio could help you assess the value on offer.Sanford has a P/E ratio of 17.06, based on the last twelve months. That is equivalent to an earnings yield of about 5.9%.
Check out our latest analysis for Sanford
Theformula for P/Eis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Sanford:
P/E of 17.06 = NZ$6.9 ÷ NZ$0.40 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio means that buyers have to paya higher pricefor each NZ$1 the company has earned over the last year. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. That means unless the share price increases, the P/E will reduce in a few years. Then, a lower P/E should attract more buyers, pushing the share price up.
Sanford saw earnings per share decrease by 17% last year. But it has grown its earnings per share by 16% per year over the last five years.
The P/E ratio indicates whether the market has higher or lower expectations of a company. If you look at the image below, you can see Sanford has a lower P/E than the average (23.5) in the food industry classification.
This suggests that market participants think Sanford will underperform other companies in its industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. You should delve deeper. I like to checkif company insiders have been buying or selling.
Don't forget that the P/E ratio considers market capitalization. Thus, the metric does not reflect cash or debt held by the company. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
Sanford has net debt equal to 26% of its market cap. You'd want to be aware of this fact, but it doesn't bother us.
Sanford trades on a P/E ratio of 17.1, which is fairly close to the NZ market average of 17.9. When you consider the lack of EPS growth last year (along with some debt), it seems the market is optimistic about the future for the business.
When the market is wrong about a stock, it gives savvy investors an opportunity. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
You might be able to find a better buy than Sanford. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Fed to hold Facebook's crypto coin to 'high' bar - Powell
(Reuters) - The U.S. Federal Reserve is looking carefully at Facebook's planned cryptocurrency Libra, and will hold it to high standards regarding protecting consumers and regulation, Federal Reserve Chairman Jerome Powell said on Tuesday.
"Libra’s a new thing; we are looking at it very carefully," Powell said in response to an audience question after a talk at the Council on Foreign Relations in New York. "Given the possible scale of it, I think that our expectations -- from a consumer protection standpoint, from a regulatory standpoint -- are going to be very, very high."
Facebook said last week it wanted to expand into payments and launch its own coin, Libra, by next year.
"Authority for overseeing Libra is going to be in a number of places, but I think that the big picture is we are going to be looking really carefully at it," said Powell, whose cautious remarks echoed those of other financial regulators around the world about the possible new currency.
(Reporting by Ann Saphir; Editing by Chizu Nomiyama; Editing by James Dalgleish) |
Read This Before You Buy Sanford Limited (NZSE:SAN) Because Of Its P/E Ratio
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll show how you can use Sanford Limited's (NZSE:SAN) P/E ratio to inform your assessment of the investment opportunity. Based on the last twelve months,Sanford's P/E ratio is 17.06. That means that at current prices, buyers pay NZ$17.06 for every NZ$1 in trailing yearly profits.
Check out our latest analysis for Sanford
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Sanford:
P/E of 17.06 = NZ$6.9 ÷ NZ$0.40 (Based on the year to March 2019.)
A higher P/E ratio means that buyers have to paya higher pricefor each NZ$1 the company has earned over the last year. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
P/E ratios primarily reflect market expectations around earnings growth rates. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. That means unless the share price increases, the P/E will reduce in a few years. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
Sanford's earnings per share fell by 17% in the last twelve months. But over the longer term (5 years) earnings per share have increased by 16%.
The P/E ratio essentially measures market expectations of a company. The image below shows that Sanford has a lower P/E than the average (23.5) P/E for companies in the food industry.
Sanford's P/E tells us that market participants think it will not fare as well as its peers in the same industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. You should delve deeper. I like to checkif company insiders have been buying or selling.
The 'Price' in P/E reflects the market capitalization of the company. In other words, it does not consider any debt or cash that the company may have on the balance sheet. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context.
Net debt is 26% of Sanford's market cap. You'd want to be aware of this fact, but it doesn't bother us.
Sanford trades on a P/E ratio of 17.1, which is fairly close to the NZ market average of 17.9. When you consider the lack of EPS growth last year (along with some debt), it seems the market is optimistic about the future for the business.
Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here's Why New Gold Rose as Much as 14.6% Today
Shares ofNew Gold(NYSEMKT: NGD)gained more than 14% today. While there wasn't any company-specific news, the gold miner is ramping up production at a trajectory-altering growth project just in time to capitalize on soaring gold prices.
A combination of factors includingfalling bond yieldsand a slightly weakened dollar have pushed precious metals prices to multiyear highs in recent weeks. In fact, the price of gold has jumped to more than $1,425 per ounce -- the highest level since late 2013. If the price holds, then New Gold should be able to generate more value from its Rainy River mine sooner than expected.
There's a lot to prove, however, which likely explains why shares have rapidly cooled off. As of 1:33 p.m. EDT, the stock had settled to a 3.7% gain.
Image source: Getty Images.
Investors are assuming that small-cap gold stocks will be de-risked as gold prices rise. Whether that will prove true can be debated, but the rationale is simple to understand. Smaller mining companies tend to have less-efficient operations. Therefore, higher selling prices can make projects with above-average operating expenses more profitable or, at the very least, less devastating to the owner's income statement.
Consider that New Gold expects full-year 2019 all-in sustaining costs (AISC), the primary metric used to assess the profitability of mining operations, in the range of $1,330 to $1,430 per gold equivalent ounce. That's pretty expensive compared to larger peers. For instance,Barrick Goldreported Q1 2019 AISC of just $825 per ounce.
Of course, the driving factor behind New Gold's high AISC guidance is the ramp-up of the Rainy River mine throughout 2019. While the asset is expected to produce at least 250,000 ounces of gold equivalent this year, mining and milling the initial ore and fine-tuning equipment leads to inherently less-efficient operations than those at steady-state. Case in point: Rainy River is expected to have AISC in the neighborhood of $1,740 per gold equivalent ounce in 2019.
If all goes according to plan, New Gold expects operating expenses at Rainy River to drop precipitously in 2020 and enable profitable operations and free cash flow generation. That would be a significant milestone for the small-cap gold miner. And now that gold prices are trekking higher, investors are more optimistic that the business can reach that goal. That said, this remains a high-risk investment. Investors should wait for the company to prove it can rein in operating expenses before assuming higher gold prices will be all the business needs to achieve success.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
Maxx Chatskohas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Ranking the Top Democratic Presidential Candidates for 2020
Getty Images The 2020 Democratic presidential nominating contest has attracted unprecedented interest. Although there are more than 30 politicians, executives and celebrities running or weighing a bid, former Vice President Joe Biden led the pack from day one, months before he officially threw his hat in the ring. His delayed entry gave the long list of dark horses time to prove that they could be the next Barack Obama, ready to catch fire and run away with the nomination. But that didn't happen. Instead, a handful of candidates have had their turn in the spotlight, but none has become The One. Now, with first official party debates coming up, the race begins in earnest as the leaders pull away from the massive herd. SEE ALSO: Tax Plans for All 24 Democratic Presidential Candidates #1 Joe Biden Getty Images The former vice president easily tops all early polls of Democratic voters. Skeptics say that's as much the result of having been in the public eye for nearly 45 years as voters' actual desire to see the 76-year-old former Delaware senator top the ticket next year. Biden has said: "I'm the most qualified person in the country to be president." Now that the Pennsylvania native is seeking the presidency for the third time, the clear front-runner has the chance to prove himself right. Many Democrats, particularly Obama loyalists and party veterans, wanted Biden to challenge former Secretary of State Hillary Clinton in 2016. He has quickly assembled a top team of consultants and advisers and is locking in some of the party's biggest donors. Access to Obama's fundraising mailing list gives him another distinct advantage, as does his ability to tap the organization that their 2008 and 2012 campaigns built for vital ground-game work. Two months into his campaign, he enjoys the support of twice as many primary voters as his closest rivals. SEE ALSO: The Best and Worst Presidents (According to the Stock Market) #2 Sen. Bernie Sanders Getty Images The Vermont lawmaker started his 2020 run with fresher donor and volunteer bases than Biden, as his network never really disbanded since his 2016 loss to Clinton. He remains popular with young voters and the liberal activists seeking to shift the Democratic Party to the left and inspired many of last cycle's first-time candidates to seek office. One of Sanders' biggest strengths is that he has proven he can attract the type of voter that shunned Clinton and backed President Trump: white working-class men. Overall, 12% of Sanders' supporters defected to Trump on Election Day. They provided enough votes in key states that, had they voted Democratic or even just stayed home, Clinton would have won. However, Biden's ability to appeal to that demographic is considered one of his biggest assets. Where Sanders has a major leg up on Biden is small donors. Sanders has raked in an impressive $21 million already, most from supporters who chipped in $200 or less each. And Sanders, now 77, has a formidable base of grassroots activists ready to do battle for the self-proclaimed socialist. Story continues SEE ALSO: Millionaires in America 2019: All 50 States Ranked #3 Sen. Elizabeth Warren Getty Images Warren, like Sanders, is a darling of the party's progressive wing. The 69-year-old's fierce criticism of Wall Street and big banks put her on the map and made her that industry's No. 1 enemy. Her role in creating the Consumer Financial Protection Bureau -- it was the then-Harvard professor's brainchild -- particularly irks the industry. While cruising to reelection as Massachusetts' senior senator in 2018, she amassed a large campaign war chest that can be transferred to her presidential account. Her PAC was also one of the most active on behalf of other candidates. She weathered the controversy over her claims of Native American heritage that dogged her official entry into the race. Her steady introduction of detailed policy initiatives while many of her competitors are still spewing platitudes has catapulted her into the No. 3 spot nationally, after spending months limping along in single digits in the polls. SEE ALSO: The Safest Cars for $30,000 or Less #4 South Bend, Ind. Mayor Pete Buttigieg Getty Images It's hard to say what's more improbable: that a 37-year-old is now a top contender for the nomination or that a mayor of what's not even a midsized city is. But that's where we are. Buttigieg's entire political career has been improbable. Most 29-year-olds don't get elected mayor, especially not gay ones in Middle America. Buttigieg isn't running as "the LGBTQ candidate." And he's even gotten flak for not having a diverse enough base of supporters. But as many of the names on this list pander to the party's far left, Buttigieg has picked up steam for being a fresh face with a thoughtful, pragmatic agenda. SEE ALSO: The Berkshire Hathaway Portfolio: All 48 Buffett Stocks #5 Sen. Kamala Harris Getty Images California's Harris was liberal Democrats' darling before Alexandria Ocasio-Cortez burst onto the national scene last cycle. However, since the 29-year-old political novice won't be old enough to run for president in 2020, they'll have to settle for Harris, Warren or Sanders. Harris has taken heat recently for her tenure as California's attorney general, costing her much-needed support from the party's liberal wing. Harris, 54, consistently ranks in the top five polling wise, but has been stuck at No. 5 for months, while the two spots above her have churned, but never with her name. Her current trajectory has her more on the path to also-ran status than to the White House, at least this cycle. But a stellar performance in next week's debate could give her the bounce she needs. SEE ALSO: The 19 Best Stocks to Buy for the Rest of 2019 #6 Beto O'Rourke crockodile via Flickr The former three-term Texas congressman's high-profile attempt to unseat GOP Sen. Ted Cruz in 2018 garnered him national headlines and the adoration of Democrats across the country and catapulted the 46-year-old to near rock star status within the party. O'Rourke shattered fundraising records in what officially became the most expensive Senate contest ever weeks before Election Day. He raised $38 million in the third quarter, breezing past the old $22 million record ($31 million in today's dollars) set in 2000. And he did so without dollars from corporate and labor political action committees. In that two-year cycle, he amassed a national donor base and list and built a loyal army of volunteers from both inside and outside the Lone Star State that would happily help march him to the Democratic nomination. But the excitement generated by his Senate run has faded. After initially polling as high as third, O'Rourke has continually slid down the early rankings amid reports of erratic behavior and unimpressive stump speeches. Buttigieg has been the main beneficiary of O'Rourke's inability to transfer his 2018 momentum to a national campaign. SEE ALSO: Tax Breaks and Deductions You Won't Believe Are Real #7 Sen. Cory Booker Getty Images The 49-year-old Rhodes scholar and former Stanford football player (who entered early) was expected to make a big splash. Comparisons to Obama were immediate when Booker came onto the national scene, after winning his first mayoral race in 2006. But such comparisons can cut both ways and so far, he hasn't generated anywhere near the kind of energy that Obama did in 2008. His presidential bid increasingly is becoming a case of unmet high expectations. And now a Republican (Hirsh Singh) has declared his Senate candidacy in the Garden State, pressuring Booker to either forego seeking a second term next year or split his energy between keeping his day job and going for the big prize. SEE ALSO: Relax, Your Social Security Benefits Are Safe (Barely) On the Debate Stage Courtesy Lou Aronson The end of June brings the first culling of the field--seven months before a single primary vote is cast. The first official Democratic debates are June 26-27 in Miami. Candidates must be either polling at 1% or have 65,000 donors to make it on to the stage. (Only two "major" candidates didn't qualify: New York Mayor Bill de Blasio and Mont. Gov. Steve Bullock.) The following are headed to Miami but are only polling at 1% or less at this early stage. Colo. Sen. Michael Bennet. Former HUD Secretary Julian Castro. Former Md. Rep. John Delaney. Hawaii Rep. Tulsi Gabbard. N.Y. Sen. Kirsten Gillibrand. Former Colo. Gov. John Hickenlooper. Wash. Gov. Jay Inslee. Minn. Sen. Amy Klobuchar. Mass. Rep. Seth Moulton. Ohio Rep. Tim Ryan. Calif. Rep. Eric Swalwell. Venture for America founder Andrew Yang. SEE ALSO: Best States for Low Taxes: 50 States Ranked for Taxes, 2018 EDITOR'S PICKS Millionaires in America: All 50 States Ranked Best States for Low Taxes: 50 States Ranked for Taxes, 2018 101 Best Dividend Stocks to Buy for 2019 and Beyond Copyright 2018-2019 The Kiplinger Washington Editors View comments |
Officials reveal cause of death for New York pizzeria owner who died in Dominican Republic
A New York man who passed away last Tuesday while vacationing in the Dominican Republic allegedly died from respiratory and heart failure,CNNreports.
Vittorio Caruso, a former pizzeria owner from Glen Cove, died after reportedly feeling sick at the Boca Chica Resort in Santo Domingo. Last week, his sister-in-law, Lisa Maria Caruso, toldFox Newsthat he had been in good health before he visited the Caribbean country.
"We found out he was brought by ambulance to the hospital in respiratory distress after drinking something," she said at the time. "We were told he wasn't responding to any meds he was given and died. I honestly don't know exactly what happened, as we have been told conflicting stories from different people there."
A preliminary autopsy report released on Monday, however, disputed Lisa's assertion that Vittorio had been healthy, claiming instead that he had long suffered from hypertension, heart disease and pulmonary disease. The Dominican Republic's Attorney General's office, citing the report, further noted that the autopsy revealed that Vittorio had previously suffered heart attacks. It also contended that the 56-year-old was a frequent smoker and drinker.
Vittorio's partner, Yomaira Ramirez de Jesus, purportedly told prosecutors that the victim began to cough and feel shortness of breath on June 11. Though he was treated and released, he reportedly complained to Ramirez de Jesus a week later about experiencing respiratory distress and chest pain. He was transferred to a hospital in Santo Domingo, where he unfortunately suffered from cardiorespiratory arrest and died.
Vittorio's official cause of death is similar to that of others who have recentlydiedon the island, although relatives of many of the victims remain skeptical.
On June 13, New Jersey residentJoseph Allenwas found dead in his room at the Terra Linda Resort in Sosua. The day before he died, he had complained to friends about feeling uncomfortably hot in the pool. An autopsy preliminarily revealed that Allen, who was found to have prior heart issues, may have died of cardiac arrest.
Other victims who died under similar circumstances include New York Donette Edge Cannon, Pennsylvania woman Yvette Monique Sport, Maryland residentDavid Harrison, CalifornianRobert Wallace, Ohio residentJerry Curran, Pennsylvania residentMiranda Schaup-Werner, Maryland coupleEdward Nathaniel Holmes and Cynthia Day, California residentRobert Turlockand New York residentLeyla Cox.
The FBI is currently assisting Dominican authorities in investigations into at least three of the deaths, and Dominican officials have scrambled to put an end to the rising fear over their country's safety. In a recentinterviewwith Fox News, Ministry of Public Health spokesman Carlos Suero dismissed some of the mysterious deaths as "fake news."
"It’s all a hysteria against the Dominican Republic, to hurt our tourism, this is a very competitive industry and we get millions of tourists, we are a popular destination," he said. |
What Kind Of Shareholders Own Exact Sciences Corporation (NASDAQ:EXAS)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Every investor in Exact Sciences Corporation (NASDAQ:EXAS) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.
Exact Sciences is a pretty big company. It has a market capitalization of US$15b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about EXAS.
View our latest analysis for Exact Sciences
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors own 88% of Exact Sciences. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Exact Sciences's earnings history, below. Of course, the future is what really matters.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Exact Sciences. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Shareholders would probably be interested to learn that insiders own shares in Exact Sciences Corporation. It is a very large company, and board members collectively own US$208m worth of shares (at current prices). I sometimes take an interest inwhether they have been buying or selling.
The general public holds a 11% stake in EXAS. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Should Election Day be a federal holiday? Elizabeth Warren the latest Dem to support change
The push to make Election Day a federal holiday is gaining popularity with 2020 candidates. Sen. Elizabeth Warren on Tuesday became the latest White House hopeful to announce her support for giving Americans Election Day off so they can be certain to have time to cast their ballots, an idea shes floating as part of a $20 billion plan to bolster election security and voter participation. The Massachusetts senator joins two other candidates, Sen. Cory Booker and former Rep. Beto ORourke , who have previously called for creating a voting-day holiday. Our democracy shouldnt be about keeping people out - it should strive to bring everyone to the polls, Warren said in essay announcing her plan. Democratic presidential candidate Elizabeth Warren speaks during the South Carolina Democratic Convention, Saturday, June 22, 2019 in Columbia, S.C.. Theres no shortage of Americans who have scratched their heads about holding presidential elections on the first Tuesday following the first Monday in November, a more than 170-year-old tradition started to accommodate a more agrarian and church-going electorate. Police shooting disrupts campaign: Pete Buttigieg's tense town hall might hurt or help his campaign Former veep's controversial comments: Joe Biden courts black voters as segregationist flap lingers A U.S. Census survey of about 19 million registered voters who did not participate in the 2016 election found that 14.3%, or about 2.7 million people, said they were too busy to vote. And 65% of Americans (71% of Democrats and 59% of Republicans) said they support making Election Day a holiday, according to a October 2018 Pew Research Center survey. Twenty-seven of the 36 member countries of the Organization for Economic Cooperation and Development hold their national elections on the weekend, while two others, Israel and South Korea, hold elections on weekdays but make those days national holidays so economic hardship wont be a barrier to electoral participation, according to Pew. Election Day is a paid holiday in 13 states for state employees , with Kentucky state workers getting the day off in presidential-election years and New Mexico state workers being granted two hours of the work day to cast their ballots. New York and California state law specifies that workers cant be docked any pay for taking time off to vote. More than three dozen states, including Colorado, Oregon and Washington that mail ballots to voters, and the District of Columbia allow citizens to vote ahead of Election Day. Story continues Not the first call for change There have been previous pushes to make Election Day a holiday that have floundered. Free college: Bernie Sanders unveils plan to forgive $1.6 trillion in student loan debt McConnell balks: What if Election Day were a holiday? Dates to know: When are the 2020 presidential election primaries? Most recently, in January, newly-empowered House Democrats introduced a bill to make Election Day a national holiday as part of a broad anti-corruption proposal. The legislation also included calls to establish automatic voter registration, require presidential and vice-presidential candidates to release their tax returns, and force states to create independent redistricting commissions to help prevent gerrymandering of districts. But Senate Majority Leader Mitch McConnell scuttled the bill, calling the push to make Election Day a federal holiday a power grab by Democrats. Just what America needs, another paid holiday and a bunch of government workers being paid to go out and work, I assume (with) our colleagues on the other side on their campaigns, McConnell said in a speech on the Senate floor . This is the Democrat plan to restore Democracy? Democratic presidential candidate, Sen. Cory Booker (D-NJ) speaks to the crowd during the 2019 South Carolina Democratic Party State Convention on June 22, 2019 in Columbia, South Carolina. Booker in April was the first major 2020 candidate to call for an Election Day holiday as part of his proposal for a new and expanded Voting Rights Act, which would restore provisions of the original act and also tackle gerrymandering. In 2013, the Supreme Court invalidated protections at the center of the Voting Rights Act in Shelby County v. Holder, saying states should not need federal approval to change their elections laws. ORourke earlier this month unveiled his voter rights plan that includes making Election Day a federal holiday, allowing automatic and same-day voter registration and cracking down on laws and practices that make it more difficult to vote. The former Texas congressman, who as part of his plan has set a goal of getting 35 million new Americans to the polls and raising voter turnout to 65% in 2024, also calls for pushing states to implement same-day voter registration and automatically register voters when they do business at a government office. Democratic presidential candidate Beto O'Rourke addresses the South Carolina Democratic Party convention, Saturday, June 22, 2019 in Columbia, S.C. Replacing every voting machine Warren is billing her plan as a broad proposal to bolster election security and improve participation. She includes calls for the federal government to replace every voting machine in the country with new state-of-the-art equipment and require adoption of a uniform federal ballot, mandate automatic voter registration and same-day registration for federal elections. In addition, she wants to ban the purge of any voter from state election rolls unless the person asked to be removed or the election agency has proof to remove the person from rolls such as death, change of address, or loss of eligibility. She said her $20 billion plan, the latest in a long string of proposals, would be funded through a new tax that she wants to levy on families and individuals earning more than $50 million per year. Warren also wants to create a new agency, the Secure Democracy Administration, that would manage cybersecurity aspects of the election and develop additional security procedures administering elections. In the 2016 election, the Russian government tried to infiltrate at least 39 state election systems and at least one election equipment company. McConnell has resisted a push by Senate Democrats to bolster election security as well as bipartisan legislation from Sen Lindsey Graham, R-S.C., and Sen. Robert Menendez, D-N.J., that would set in motion new sanctions against Russia if there is interference in the 2020 election. The majority leader questioned the need for such legislation. I do think the missing story that very few of you have written about is the absence of problems in the 2018 election," McConnell told reporters earlier this month. "I think the Trump administration did a much, much better job. This article originally appeared on USA TODAY: Should Election Day be a federal holiday? Elizabeth Warren the latest Dem to support change |
How Does SB One Bancorp (NASDAQ:SBBX) Fare As A Dividend Stock?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Dividend paying stocks like SB One Bancorp (NASDAQ:SBBX) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.
With a 1.4% yield and a five-year payment history, investors probably think SB One Bancorp looks like a reliable dividend stock. A low yield is generally a turn-off, but if the prospects for earnings growth were strong, investors might be pleasantly surprised by the long-term results. The company also bought back stock during the year, equivalent to approximately 0.9% of the company's market capitalisation at the time. Some simple research can reduce the risk of buying SB One Bancorp for its dividend - read on to learn more.
Click the interactive chart for our full dividend analysis
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. SB One Bancorp paid out 17% of its profit as dividends, over the trailing twelve month period. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings.
Remember, you can always get a snapshot of SB One Bancorp's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. SB One Bancorp has been paying a dividend for the past five years. During the past five-year period, the first annual payment was US$0.12 in 2014, compared to US$0.30 last year. Dividends per share have grown at approximately 20% per year over this time.
We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see SB One Bancorp has been growing its earnings per share at 36% a year over the past 5 years. The company is only paying out a fraction of its earnings as dividends, and in the past been able to use the retained earnings to grow its profits rapidly - an ideal combination.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Firstly, we like that SB One Bancorp has a low and conservative payout ratio. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. SB One Bancorp has a number of positive attributes, but falls short of our ideal dividend company. It may be worth a look at the right price, though.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 3 analysts we track are forecasting for SB One Bancorpfor freewith publicanalyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
5 Reasons That Make Piper Jaffray (PJC) Investment Worthy
Underlying strength and healthy growth prospects makePiper Jaffray CompaniesPJC a solid bet now. Further, the company is well poised for revenue growth, driven by decent capital markets performance. Moreover, it has a solid balance sheet position.The company’s Zacks Consensus Estimate for earnings has moved 1.6% upward for 2019 and has remained unchanged for 2020, over the past 60 days. This indicates sound earnings growth potential. Currently, the stock carries a Zacks Rank #2 (Buy).Also, shares of Piper Jaffray have rallied 8.5% so far this year, outperforming the industry’s growth of 6.6%.
Factors That Make Piper Jaffray a Viable Investment OptionEarnings strength:Over the past three to five years, Piper Jaffray witnessed earnings growth of 11%. Continuing the momentum, the earnings growth rate is expected to be 6% and 9.2% for 2019 and 2020, respectively.Revenue growth:Piper Jaffray’s revenues have seen a compounded annual growth rate of 4.9%, over the last five years (2014-2018). The company’s business streamlining efforts and decent performance of capital markets will support revenues in the quarters ahead. Its projected consensus sales growth rate of 3.2% for 2019 and 6.6% for 2020 indicates continued upward momentum in top line.Steady capital deployment:Piper Jaffray’s ability to generate positive cash flows and enhance shareholder value through regular dividend payments and share repurchases is commendable. Notably, as of Mar 31, 2019, the company had $102.8 million remaining under its buyback authorization. Driven by solid balance sheet position and earnings strength, the company’s capital deployment actions look sustainable.Strong leverage:Piper Jaffray’s debt/equity ratio is nil compared to the industry’s average of 0.36. The relatively strong financial health of the company will help it perform better in an unstable economic environment compared with its peers.Stock looks undervalued:Piper Jaffray looks undervalued when compared with the broader industry. Its current price/earnings (F1) and price/book ratios are below the respective industry averages.Also, the stock has a Value Score of A. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.Other Stocks to ConsiderEarnings estimates for JMP Group LLC JMP has been moving 3% upward over the past 60 days for 2019. The company’s shares have rallied 1.7% so far this year. It sports a Zacks Rank of 1, at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.LPL Financial Holdings Inc.’s LPLA earnings estimates for 2019 have moved 9.3% upward over the past 60 days. So far this year, this Zacks #1 Ranked company’s shares have jumped 28.2%.Raymond James Financial, Inc.’s RJF fiscal 2019 earnings estimates has been revised 1.1% upward over the past 60 days. This Zacks Rank #2 company’s shares have risen 7.9% so far this year.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 reportRaymond James Financial, Inc. (RJF) : Free Stock Analysis ReportJMP Group LLC (JMP) : Free Stock Analysis ReportPiper Jaffray Companies (PJC) : Free Stock Analysis ReportLPL Financial Holdings Inc. (LPLA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Does SB One Bancorp (NASDAQ:SBBX) Have A Place In Your Dividend Portfolio?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Is SB One Bancorp (NASDAQ:SBBX) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
With a 1.4% yield and a five-year payment history, investors probably think SB One Bancorp looks like a reliable dividend stock. A 1.4% yield is not inspiring, but the longer payment history has some appeal. The company also bought back stock during the year, equivalent to approximately 0.9% of the company's market capitalisation at the time. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, SB One Bancorp paid out 17% of its profit as dividends. We'd say its dividends are thoroughly covered by earnings.
Remember, you can always get a snapshot of SB One Bancorp's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. SB One Bancorp has been paying a dividend for the past five years. During the past five-year period, the first annual payment was US$0.12 in 2014, compared to US$0.30 last year. Dividends per share have grown at approximately 20% per year over this time.
The dividend has been growing pretty quickly, which could be enough to get us interested even though the dividend history is relatively short. Further research may be warranted.
The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see SB One Bancorp has grown its earnings per share at 36% per annum over the past five years. The company is only paying out a fraction of its earnings as dividends, and in the past been able to use the retained earnings to grow its profits rapidly - an ideal combination.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Firstly, we like that SB One Bancorp has a low and conservative payout ratio. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. Overall we think SB One Bancorp is an interesting dividend stock, although it could be better.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 SB One Bancorp analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Young Americans Are Increasingly 'Uncomfortable' With LGBTQ Community, GLAAD Study Shows
GLAAD, the organization dedicated to LGBTQ advocacy in media and culture, released its fifth annual Accelerating Acceptance Index on Monday. The index is a national survey of nearly 1,800 American adults who were asked to rate their position, on a scale of very uncomfortable to comfortable, to prompted situations like having LGBT members at my place of worship, learning a family member is LGBT, and learning my child has a lesson on LGBT history in school. In doing so, the goal of the survey is to track Americans attitudes toward LGBTQ people in everyday scenarios (and then advocate to further acceptance). Just over 80 percent of Americans surveyed said they knew someone who identifies as LGBTQ, and the survey found that an equal amount of non-LGBTQ Americans surveyed support equal rights for the LGBTQ community. The idea of equal rights is largely supported by Americans, but legal equality is not the same as acceptance, Rich Ferraro, GLAADs chief communications officer, tells TIME. Acceptance cannot be legislated. In its first three years of results, the index showed a steady increase in Americans who felt comfortable with LGBTQ issues and people. Last year, however, results saw a sharp drop in acceptance across all scenarios surveyed. Headlines that stated LGBTQ acceptance is eroding were a call to arms for GLAAD and so many around the country, a press release accompanying the new index explained. GLAAD doubled down on our formula for making culture change. And with some success: The percentage of non-LGBTQ adults reporting being very or somewhat comfortable with LGBTQ people across seven scenarios remained stable, the new results show. (Thats a group just shy of half those surveyed.) However, this years survey found that millennials and Gen-Z (adults in the 18-34 age bracket) are becoming increasingly uncomfortable with at least some of the hypotheticals the percentage of those surveyed who were very or somewhat comfortable in all the scenario prompts dropped by eight points on average, from 53 to 45 percent. Of the groups surveyed, young people were the only demographic to see such a sharp decline in acceptance. And while allyship was more common for responders identifying themselves as millennial females than millennial males, the percentage of female allies dropped more sharply. Story continues In four of the seven given scenarios, 18 to 34 year-olds reported feeling substantially more uncomfortable around LGBTQ people. These were: learning my child had a lesson on LGBT history in their school (a 9 percent rise in survey responders reporting theyd be uncomfortable), learning a family member is LGBT and learning a doctor is LGBT (both seeing a 7 percent rise in uncomfortable responses), and having a child placed in a class with an LGBT teacher (a 4 percent rise). Significantly, GLAAD notes that these scenarios are more immediately personal than the others surveyed, like seeing an LGBT co-workers wedding photo or having LGBT members at my place of worship. These changes underscore shifts in whom GLAAD considers allies versus those considered detached supporters. The index classifies respondents who were comfortable in all of the situations as allies, and those whose comfort levels shifted depending on the situation as detached supporters. (The group GLAAD terms resisters, meanwhile people who report being consistently uncomfortable with LGBTQ people has remained consistent at between 13-14 percent across all five years in which the index has been produced.) The younger generation has traditionally been thought of as a beacon of progressive values, a press release accompanying the index noted. We have taken that idea for granted. When you have a country and a culture that is normalizing hate and discrimination, you will see [people] move from an allied position to become detached supporters, Sarah Kate Ellis, President and CEO of GLAAD, tells TIME. The shift in attitudes toward LGBTQ people also aligns with the studys report of a significant increase of discrimination toward the LGBTQ community. In the fight for acceptance, there is still more work to be done, Ellis says. You know, its not a job we would want necessarily. Its a job that we have
When you look at whats going on to our community these days, we do not have full equality. We still can be fired in over half the states in this country. We can still be denied housing. The Supreme Court a year ago this June was debating whether or not we could be served a cake. The rise in young people identifying as LGBTQ doesnt negate the rise of intolerance. In fact, Ellis says a lack of education on (or understanding of) the LGBTQ spectrum has also contributed to young people becoming increasingly uncomfortable. Kids [today] are dealing directly with this generation of people that define sexual orientation and gender identity so broadly, Ellis says. Theyre finding this newness a little bit confusing. (GLAAD, she adds, can solve for them and we have been [with] our youth ambassador program.) We are absolutely at an inflection point where culture and policy policy is stalled right now, Ellis concludes. Closing the gap to full acceptance of LGBTQ people will not come from legislation on judicial decisions alone, but from creating a culture where LGBTQ people are embraced and respected. |
Evans Bancorp, Inc. (NYSEMKT:EVBN) Is An Attractive Dividend Stock - Here's Why
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 take a closer look at Evans Bancorp, Inc. ( NYSEMKT:EVBN ) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. A high yield and a long history of paying dividends is an appealing combination for Evans Bancorp. We'd guess that plenty of investors have purchased it for the income. Some simple research can reduce the risk of buying Evans Bancorp for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on Evans Bancorp! AMEX:EVBN Historical Dividend Yield, June 25th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Evans Bancorp paid out 28% of its profit as dividends, over the trailing twelve month period. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. We update our data on Evans Bancorp every 24 hours, so you can always get our latest analysis of its financial health, here. Dividend Volatility Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. For the purpose of this article, we only scrutinise the last decade of Evans Bancorp's dividend 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$0.82 in 2009, compared to US$1.04 last year. Dividends per share have grown at approximately 2.4% per year over this time. Story continues Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend. Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. It's good to see Evans Bancorp has been growing its earnings per share at 13% a year over the past 5 years. A company paying out less than a quarter of its earnings as dividends, and growing earnings at more than 10% per annum, looks to be right in the cusp of its growth phase. At the right price, we might be interested. Conclusion To summarise, shareholders should always check that Evans Bancorp's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Firstly, we like that Evans Bancorp has a low and conservative payout ratio. We like that it has been delivering solid improvement in its earnings per share, and relatively consistent dividend payments. Evans Bancorp fits all of our criteria, and we think there are a lot of positives to it from a dividend perspective. Now, if you want to look closer, it would be worth checking out our free research on Evans Bancorp management tenure , salary, and performance. We have also put together a list of global stocks with a market capitalisation above $1bn and yielding more 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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. |
NATO Demands Russia Destroy New Missile System
NATO said Tuesday that Russia must destroy a new missile system the U.S. claims to be in violation of a Cold War-era nuclear-arms treaty or face the consequences. The U.S. and its NATO allies have demanded Moscow give up the 9M729/SSC-8 nuclear-capable cruise-missile system by August, as it violates the Intermediate-range Nuclear Forces Treaty signed in 1987 by President Ronald Reagan and Soviet leader Mikhail Gorbachev. The treaty bans either country from possessing land-based nuclear and non-nuclear missiles with a range between 310 and 3,410 miles. The U.S. will officially withdraw from the deal on August 2 if negotiations fall through. “We call on Russia to take the responsible path, but we have seen no indication that Russia intends to do so,” said NATO secretary-general Jens Stoltenberg. “We will need to respond.” That response could include flying U.S. warplanes capable of carrying nuclear weapons over Europe as well as repositioning U.S. sea-based missiles. “All options are on the table, but we are looking at conventional systems. That’s important for our European allies to know,” U.S. Ambassador to NATO Kay Bailey Hutchison told reporters. Russian prime minister Dmitry Medvedev said in March that the Kremlin wants U.S. nuclear weapons and missile systems completely removed from Europe, a day after Russia said it was suspending its obligations under the arms deal. The U.S. currently has about 150 nuclear weapons stationed in five European NATO countries. In December, Russian president Vladimir Putin made a thinly disguised threat to Western powers who might consider attacking Russia. “I hope our new systems will provide food for thought to those who are used to militaristic and aggressive rhetoric,” Putin said in an address to his defense advisers, before complaining that “NATO continued to build up its military infrastructure near our borders during the year.” More from National Review NATO Chief Warns of Russian Aggression in Speech to Congress Russia Demands U.S. Missiles Be ‘Eliminated’ from Europe Putin Officially Suspends Russia’s Obligations Under Nuclear-Arms Treaty |
Could The Eton Pharmaceuticals, Inc. (NASDAQ:ETON) Ownership Structure Tell Us Something Useful?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
A look at the shareholders of Eton Pharmaceuticals, Inc. (NASDAQ:ETON) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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$125m, Eton Pharmaceuticals is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about ETON.
Check out our latest analysis for Eton Pharmaceuticals
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.
Since institutions own under 5% of Eton Pharmaceuticals, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. 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.
Our data indicates that hedge funds own 5.0% of Eton Pharmaceuticals. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of Eton Pharmaceuticals, Inc.. It has a market capitalization of just US$125m, and insiders have US$22m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
The general public -- mostly retail investors -- own 53% of Eton Pharmaceuticals . This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
It appears to us that public companies own 20% of ETON. It's hard to say for sure, but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
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. |
Chevy's New Silverado HD Trucks Are All About Towing
Photo credit: Ezra Dyer From Popular Mechanics Engines: 3-liter I6, 277 hp and 460 lb-ft of torque (1500 Duramax); 6.6-liter gas V8, 401 hp and 464 lb-ft of torque; 6.6-liter turbocharged diesel V8, 445 hp and 910 lb-ft of torque / Transmission/transfer case: Six-speed auto (6.6-liter gas) or 10-speed automatic (diesels) / EPA Fuel Economy / (1500 Duramax): Not yet announced, but we estimate 24 mpg combined / 0-60 (3500 Duramax 4x4 Crew Cab Dually): 7.4 seconds / 0-60 for that truck while towing 18,000 pounds: 19.9 seconds Suspension: Independent front, solid axle rear with leaf springs / Max t owing Capacity: 35,500 pounds The heavy duty pickup wars are an ongoing exercise in oneupmanship, most of it purely academic. Everybody lays claim to superlatives, as long as they last. It gets silly-years ago, when Chevy's 6.6-liter Duramax diesel hit 397 horsepower, Ford immediately re-rated its engine to 400 horsepower. So I figured that with the 2020 HD trucks, Chevy would torpedo Ram's 1,000 lb-ft of torque by tuning its trucks to, I don't know, 1,005 lb-ft? But no. They're not playing that game. The diesel trucks make 445 horsepower and 910 lb-ft of torque. Ford's diesel makes 450 horsepower, allowing them to claim best-in-class horsepower. So Chevy is just getting stomped by everyone, huh? Well, no. The most bodacious of the HD trucks, the crew cab dually 4x4, runs 0-60 in 7.4 seconds, two seconds ahead of the equivalent Ram. That advantage remains even when towing an 18,000-pound trailer-in that case, the Chevy's 0-60 time is 19.9 seconds. A big part of the credit goes to the Chevy's new Allison 10-speed automatic, which offers four more ratios than either Ford or Ram. That's a hard thing to brag about, though: Best-in-class number of gears isn't really a thing. Photo credit: Ezra Dyer GM didn't mention where Ford fits into the drag-race scenario, but did offer a bit of trash-talk about Ford's solid-axle front end. Some time ago, GM bought a Ford Super Duty and ran it through their own durability testing. About halfway through, the truck felt like the front end was falling apart, and engineers had to go through and tighten everything up. They made it about another 10 percent of the way through and then had to tighten everything again, at which point they gave up and sold the truck back to the dealer. Story continues Their point was to show that GM's independent front suspension works just fine in a heavy-duty truck, reducing fatigue on both the driver and the truck itself. Meanwhile, over at the Ford factory in Dearborn, I've heard them say that IFS is the hallmark of a "coffee-shop truck." Which front suspension you prefer depends on whether you're typically sliding your axle into tree stumps or, I don't know, driving on bumpy roads. Anyway, GM's point is that we should stop obsessing on towing stats and concentrate on how the trucks actually work in the real world. So GM claims that its tow ratings aren't based on some wildly specific combination of attributes that nobody would ever actually order. Most of the time, however a truck is set up, it'll be near the top of the class in towing. And the new 6.6-liter gas trucks are "altitude rated," meaning that their tow rating doesn't change if you're in the mountains. On gas-powered HD trucks, which don't benefit from a turbo's altitude compensation, Ford cuts its rating two percent for every 1,000 feet of altitude. That gas 6.6 puts out some beastly power numbers (401 hp, 464 lb-ft) but it's hauling around a whole lot of truck, even when empty. So fuel economy isn't its strong suit-I saw maybe 15 mpg unladen, and more like 6 or 7 when hauling an excavator in the mountains. But if you're not hauling stupidly heavy things every day, the gas trucks could make a lot of sense. Particularly because this is one of the few HD trucks I've climbed into, looked at the price and said, "That's not too bad, for what you get." I drove a fairly decked-out LTZ 4x4 with the Z71 off-road package, heated and cooled front seats, power up/down tailgate and much else that stickered for $58,685. There are definitely half-ton trucks that cost more than that. Photo credit: Ezra Dyer If there's one disappointment about the 6.6 gas motor, it's that it won't be offered with a shaker hood scoop reading "6.6 litre". Yes, I asked. And on the topic of the 2020 trucks' restyled front ends, they look best in black. The chromed-out versions might cause snow blindness. The diesel trucks were noticeably quicker than the gas ones, and more at ease towing. One Duramax truck was hooked up to a trailer that purportedly weighed 35,500 pounds-the new maximum tow rating, which is achieved with a rear-wheel-drive regular-cab long-bed dually. Besides physically hauling around whatever you're hauling, GM worked hard to make the towing experience less stressful and confusing. To that end, every individual truck has its tow rating stamped on a VIN badge on the door sill. That's a simple move that eliminates a lot of confusion, given that tow ratings vary depending on engine, driveline, bed length, rear axle ratio, interior color, and the position of Jupiter. Cameras, Lots of Cameras They also added cameras. Lots of them. There are cameras in front and cameras behind, a camera for the bed and one for the inside of your trailer. The cleverest angle, though, is "invisible trailer," a view developed with Valeo that combines multiple angles to make it appear as though you're looking straight through the back of your trailer. No more wondering if there's a car lurking off the rear corner of your boat before you change lanes. Photo credit: Ezra Dyer They also paid attention to the little annoyances of towing. Like, even if you have a rear-view camera and get the hitch ball lined up, you always have to remember that your truck will lurch forward a couple inches after you put it in park, thereby screwing everything up. GM's solution: when you've got the rear camera set for the hitch view, the truck automatically engages the e-brake when you shift from reverse to park. No lurch. Nice. Oh, and one other clever move: when a trailer is hooked up and the truck is locked, disconnecting the trailer will set off the alarm and send a notification to your phone. So you don't have to worry about backing up against a wall to make your trailer hard to steal out of the hotel parking lot. And, There's a New Diesel Chevy also had a new diesel on hand: the 1500 Duramax, a 3.0-liter I6 that joins the fray against Ford and Ram's light-duty offerings. It's the most powerful of the domestic trio, with 277 horsepower and 460 lb-ft of torque running through a 10-speed transmission. The diesel costs the same as the 6.2-liter V8-$2,495 more than the 5.3-liter V8. Photo credit: Ezra Dyer It's a great engine. The straight six is inherently one of the smoothest configurations, and the small diesel is quiet and refined. It's also plenty quick, with the variable-geometry turbo blowing 42.8 pounds of boost and the 10-speed transmission keeping the power in its sweet spot when you're accelerating and letting revs drop way low when you're loafing. On that front, Chevy says a RWD truck doing a steady 65 mph will get 30 mpg. If you need your truck to double as a thrifty highway commuter, here you go. But if you need to tow 35,500 pounds, there's a truck for that, too. ('You Might Also Like',) This Device Can Send Messages Without Cell Service The Best Portable BBQ Grills for Cooking Anywhere The Best Video Game the Year You Were Born |
5 Ways Apple's iOS 13 Public Beta Can Improve Your iPhone Privacy Right Now
Apple’s iOS 13 public beta for iPhone has finally released to early adopters everywhere. Even though iOS 12’s sequel doesn’t officially launch until fall,Appleis offering an unfinished version of the software, containing most of the upcoming features. Unlike the previous beta release for app developers, the iOS 13 public beta (despite having a few bugs) is meant for average consumers. And if you’re brave enough to jump the gun, you’ll find some upgrades in your privacy settings.
Apple’s new call-blocking feature is sure to be one of the most popular additions to iOS 13. In the Settings app, under Phone, you’ll see a toggle titled, “Silence Unknown Callers” towards the bottom. Tap this and only phone numbers in your contact book will be able to ring your phone—all other callers go straight to voicemail.
Apple made a big deal about their sign-on feature during theirdeveloper showcasein early June. Similar to sign-in options fromGoogleandFacebook, Apple will let you sign up for new services using your Apple ID as a login. But what separates Apple’s solution from Google and Facebook’s is privacy: Apple can hide your email address from sites you sign up with, offering the site a randomly generated email address instead. The randomly generated address will forward messages to your actual address.
With iOS 13,Apple is mandatingthat third-party apps include a Sign in with Apple button. While most apps haven’t made the switch yet, the feature is built into the iOS 13 public beta. A site likeCard Pointersallowed us to test the new service. After signing into our Apple ID account, we were taken back to the third-party site. Apple’s sign on solution allowed us to hide our email and even change our name to whatever we wanted.
iOS 13 improves the relationship between using third-party apps and keeping your location private. Beta users now have the option of giving an app access to your location just this one time. The feature, presumably, is meant to thwart apps that continue to track users, even if they switched location sharing to “On” one time long ago and eventually forgot about it.
In the Settings app, under the Location Services section of Privacy, a new option has appeared in iOS 13. Apps requesting access to your location have always had the option of “Always,” “Never,” and “While Using the App.” A new, fourth option, “Ask Next Time,” allows your iPhone to regularly check-in with you regarding location permissions, in case you don’t want your favorite ice cream app keeping tabs on your whereabouts.
If you’d prefer certain third-party apps don’t connect to your Bluetooth devices, you can now choose so. In the iOS 13 beta, when you have a Bluetooth device connected, a pop-up will note that the app would like to make use of Bluetooth. From here you can choose if the app can push sounds into your headphones, for example. Want to reverse a decision you made earlier? You can find a new Bluetooth section under Privacy in the Settings app.
Safari’s got a few new tricks in iOS 13. One of which pertains to how sites can use your camera, microphone and phone’s GPS chip. The browser will now remember your camera/microphone/location sharing preferences for each site. Or you can mass ban or allow sites from accessing these three data points in Settings under Safari. Simply scroll down to “Settings For Websites.”
To install the iOS 13 public beta on your device, you’ll have to join Apple’s beta software program. Head to the portal on your iPhonehere. Scroll down and you’ll see a bright blue “Sign Up” button. Here, Apple will ask you to log into your account. Once you do, scroll down. Under the iOS section, tap the link that says “enroll your iOS device.” From here, Apple suggests you backup your device (we do too). Once that is complete, download and install Apple’s beta profile (found here). This will allow you to update your iPhone to the iOS 13 beta from your Settings app, under General > Software Update.
iOS 13 is expected to officially release sometime this fall.
—The fall and rise of VR: The struggle tomake virtual reality get real
—“It’s just lazy”: Current’s CEO on FacebookCalibra’s similar logo
—Slack went publicwithout an IPO. Here’s how a direct offering works
—Welcome to the next generation ofcorporate phishing scams
—Listen to our new audio briefing,Fortune500 Daily
Catch up withData Sheet,Fortune‘s daily digest on the business of tech. |
Beth Chapman in 'Very Grave Condition' as Family Prays for a Miracle, Source Says
Beth Chapman, 51, is in “very grave condition" as she fights for her life in a Hawaii hospital, ET has learned. A source says Beth, who is married to Dog the Bounty Hunter ’s Duane "Dog" Chapman, has been “heavily sedated” since she was admitted to Hawaii’s Queen’s Medical Center on Saturday, and that her mother has flown to Hawaii to be by her daughter’s side. Dog and the couple’s children have also been by her side “around the clock,” the source says. The source added that doctors are “doing their best to keep her comfortable” while the family continues to pray for a miracle. On Monday, Dog shared a hospital snap on his Twitter account, showing Beth's blingy manicure. “You all know how she is about HER NAILS !!” he wrote. You all know how she is about HER NAILS !! pic.twitter.com/w8iWMYrWZd — Duane Dog Chapman (@DogBountyHunter) June 25, 2019 He also called for prayers from fans in a tweet posted late on Saturday night, writing, "Please say your prayers for Beth right now thank you love you.” A rep for the Chapman family confirmed to ET over the weekend that Beth was admitted to the hospital on Saturday and placed in a medically-induced coma amid her battle with cancer, which started with a stage II throat cancer diagnosis in September 2017. In November 2017, the family shared that the cancer had been removed, but it returned in 2018 and Beth had surgery in November to remove a mass from her throat. She began chemotherapy the next month, but was hospitalized again in April. See more on the family below. Reporting by Brendon Geoffrion. RELATED CONTENT: Dog the Bounty Hunter's Wife Beth Chapman Is in Medically-Induced Coma 'Dog the Bounty Hunter' Star Beth Chapman Hospitalized, Undergoes Emergency Procedure 'Dog the Bounty Hunter' Star Beth Chapman Undergoing Chemotherapy for Throat Cancer Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear |
European central banks require more details on Libra
Facebook’s Libra project continues to attract the attention of central banks and regulators.
Before Facebook’s announcement, global central banks were not very keen on regulating cryptocurrencies, believing them to be too insignificant to pose a risk to the financial system,Reuters writes. However, with the Libra project underway, regulators have shown greater interest in the new token.
Multiple European central bankers and regulators say they expect more details from Libra. Financial Conduct Authority admits there is currently not enough information regarding Facebook’s cryptocurrency project, therefore it is unlikely to get a go-ahead easily without sharing more information.
“They are not going to walk through authorization without that,” said FCA’s chief executive Andrew Bailey.
Similarly, the Bank of Italy’s head of market and payment system oversight Domenico Gammaldi has also asked for more details regarding Libra.
Meanwhile, Bank of France Governor Francois Villeroy de Galhau expects Libra to respect anti-money laundering regulations. He also said Libra backers are expected to seek a banking license if it offered certain services. As France is currently presiding over the Group of Seven (G7), it is also planning toset up a task forceto look into Libra.
The Bank for International Settlements (BIS) has also voiced its concerns over Libra, saying it couldharm the banking sector. |
Warren Buffett denies tensions with Kraft Heinz partner despite company troubles: report
Warren Buffetthas denied any tensions with Brazilian equity firm 3G Capital, despite troubles withKraft Heinz.
The Berkshire HathawayCEOtold CNBC he is a "good friend" of 3G Capital co-founder Jorge Paulo Lemann.
Buffett also reportedly told theoutletthat Lemann attended Berkshire’s meeting in May and that he plans on seeing Lemann in July at a conference and in August for Lemann’s 80th birthday.
According to the outlet, rumors of tensions between the two companies could stem from difficulties with Kraft Heinz.
In 2015, Berkshire teamed up with 3G Capital tocombine Kraft Foods with H.J. Heinz. Berkshire had previously purchased Heinz in 2013 and now Buffett’s company owns 27 percent of the merged company.
Kraft Heinz’s stock has lost more than half of its value in the last year, and in May, Buffett said Berkshire overpaid for the merger.
“We paid too much for Kraft,”he told FOX Business’ Liz Clamanduring an interview ahead of Berkshire’s annual shareholder meeting in Omaha, Nebraska, last month.
That’s because shares of Kraft Heinz plummeted after the food and beverage retailer disclosed the U.S. Securities and Exchange Commission had launched an investigation into the firm’s accounting policies. It also slashed its quarterly dividend to 40 cents per share annually.
Losses fromKraft Heinz battered Berkshire’s fourth-quarter earningsat the end of February, during which the conglomerate posted a rare $3.02 billion write-down that Buffett said was “almost entirely attributable” to its significant stake in Kraft Heinz.
However,Kraft Heinz shares opened higherearlier this month after the company disclosed that it completed an internal investigation into its procurement operations.
TheSecurities and Exchange Commissionprobe remains ongoing, but the Chicago-based company’s own investigation spurred new policies to “strengthen internal control over financial reporting,” Kraft said in a statement on June 7.
At the time, the firm expected to report first-quarter earnings, which were twice delayed by the internal review, by the end of July.
CLICK HERE TO GET THE FOX BUSINESS APP
Despite troubles with Kraft Heinz, Buffett told CNBC he supports Kraft Heinz’sincoming CEO, Miguel Patricio,a longtime executive at Anheuser-Busch InBev, who will replace outgoing CEO Bernardo Hees in July.
Buffett told the outlet he and Berkshire Hathaway Vice Chairman Greg Abel are “high” on Patricio, who was named by Kraft Heinz as its new CEO in April.
Fox Business’ Henry Fernandez, Joe Williams, Megan Henney and The Associated Press contributed to this report.
Related Articles
• Fmr. Notre Dame Coach Lou Holtz Predictions for Trump vs. Media
• Trump May Have Dropped Another Clinton Bombshell
• Fmr. Notre Dame Coach Lou Holtz: College Teams That May 'Shock' this Fall |
Is Everbridge, Inc. (NASDAQ:EVBG) A Financially Sound Company?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Stocks with market capitalization between $2B and $10B, such as Everbridge, Inc. (NASDAQ:EVBG) with a size of US$3.0b, do not attract as much attention from the investing community as do the small-caps and large-caps. Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. EVBG’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto EVBG here.
Check out our latest analysis for Everbridge
EVBG has built up its total debt levels in the last twelve months, from US$91m to US$112m , which includes long-term debt. With this growth in debt, EVBG currently has US$258m remaining in cash and short-term investments to keep the business going. Moreover, EVBG has generated cash from operations of US$4.5m during the same period of time, resulting in an operating cash to total debt ratio of 4.0%, signalling that EVBG’s current level of operating cash is not high enough to cover debt.
With current liabilities at US$129m, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.42x. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Software companies, this is a suitable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
EVBG is a relatively highly levered company with a debt-to-equity of 52%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. However, since EVBG is currently loss-making, there’s a question of sustainability of its current operations. Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.
EVBG’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for EVBG's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Everbridge to get a more holistic view of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for EVBG’s future growth? Take a look at ourfree research report of analyst consensusfor EVBG’s outlook.
2. Valuation: What is EVBG 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 EVBG is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Tesla likely to miss record Q2 delivery target - Electrek
June 25 (Reuters) - Shares of Tesla Inc fell 1.3% on Tuesday after news website Electrek reported that the electric-car maker has so far delivered 49,000 vehicles in North America during the second quarter and may miss its quarterly target.
Chief Executive Officer Elon Musk had said last month that the company was on course to deliver a record number of cars in the quarter, beating the 90,700 it sent to customers in the final quarter of last year.
Tesla did not immediately respond to a request for comment. Electrek did not give any delivery number for international markets for the quarter.
It has over 12,000 additional orders as well and Tesla could end the quarter by delivering 61,000 vehicles in North America, the report said https://electrek.co/2019/06/25/tesla-orders-surge-record-quarter-delivery-bottleneck, citing sources inside the company.
(Reporting by Sayanti Chakraborty in Bengaluru; Editing by Arun Koyyur) |
One senator with two different plans to save Social Security
On Tuesday, Sen. Chris Van Hollen (D-MD) introduced theStrengthen Social Security by Taxing Dynastic Wealth Actto return the estate tax to 2009 levels to shore up the retirement program.
Van Hollen’s office noted that the bill would be “rolling back the most recent boon for wealthy estates in the 2017 Republican tax law.”
At the same time, the Van Hollen is also behind aHouse planchampioned by Rep. John Larson (D-CT), which would shore up Social Security by increasing the payroll taxes on wages above $400,000 and “gradually phase in an increase in the contribution rate beginning in 2020.” The bill, known as the Social Security 2100 Act is also being backed by Sen. Richard Blumenthal (D-CT).
“Sen. Van Hollen is committed to strengthening Social Security and ensuring all Americans have financial security in their later years,” Bridgett Frey, a spokeswoman for Van Hollen, said in a statement to Yahoo Finance. On the bill unveiled Tuesday, she added “this new legislation would be a down payment on that effort, closing 21% of the current long-range estimated shortfall in the Social Security OASI/DI Trust Fund. Social Security 2100 is a more expansive bill that would completely address the shortfall and expand benefits.”
Both of the bills are aimed at the same larger problem – the Social Security Trust Fund could be depleted in 16 years with no action, according to arecent reportby the program’s trustees.
Social Security reform has, so far, gotten little traction during the 116th Congress. Instead, the House of Representatives recently passed theSECURE Act, which is focused on helping people save for retirement in private accounts but doesn’t address Social Security.
Larson recently testified at a House Budget Committee hearing and noted that he supports the efforts to reform private accounts, but added: “our greatest responsibility here in Congress is to protect Social Security and ensure that it meets the needs of today’s beneficiaries and future generations.”
Ben Werschkul is a producer for Yahoo Finance in Washington, D.C.
Read more:
4 ways Washington may soon change how you save for retirement
Retirement reform is (probably) coming — but is it enough for young savers?
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn,YouTube, andreddit. |
GLOBAL MARKET-Gold soars to six-year high, stocks slide after Powell speech
(Adds oil, gold settlement prices)
* Dollar rebounds, gold retreats as Powell casts doubt on rate cut
* Stocks slip on disappointing U.S. economic data
* Brent rises ahead of U.S. data
By Herbert Lash
NEW YORK, June 25 (Reuters) - Gold soared to an almost six-year high on Tuesday on escalating U.S.-Iran tensions, while equity markets slid on disappointing economic data and uncertainty that the Federal Reserve will cut interest rates in July as has been expected.
Fed Chairman Jerome Powell said in a speech the U.S. central bank is insulated from short-term political pressures as policymakers wrestle with whether to cut rates amid slowing growth as President Donald Trump has demanded.
Equity markets have rallied this month in anticipation Fed policymakers would cut rates, but Powell's remarks cast doubt on those expectations when he referred to the Fed's independence.
"Clearly, he's referring to comments from the White House," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey. "The market wants to hear the Fed remains steadfast - what it perceives is the correct path to follow in terms of monetary policy, rather than acquiescing to the administration."
The dollar rebounded and gold prices retreated after Powell's comments trimmed expectations that the Fed will cut rates by half a percentage point next month.
Gold had gained 10% in price so far in June, climbing above $1,400 an ounce for first time since August 2013 after briefly touching the psychological barrier on Monday.
The dollar had slid to a three-month low against the euro and dropped to its weakest level against the Japanese yen since early January as the prospect of a Fed rate cut knocked demand. The yen had also benefited from concerns about tensions between the United States and Iran, which on Tuesday said the U.S. sanctions permanently closed the path to diplomacy between the two countries.
The dollar index rose 0.14%, while the euro reversed course to fall 0.19% to $1.1374. The yen strengthened 0.18% versus the greenback at 107.11 per dollar.
Disappointing economic data weighed on stocks.
U.S. consumer confidence tumbled to a 21-month low in June as households grew a bit more pessimistic about business and labor market conditions amid concerns of an escalation in the trade tensions between the United States and China.
The U.S. economy's prospects were further dimmed by other data showing sales of new single-family homes unexpectedly fell for a second straight month in May.
MSCI's gauge of global equity markets, most major European indexes and stocks on Wall Street slipped.
MSCI's gauge of stocks across the globe shed 0.62%, while the pan-European STOXX 600 index closed down 0.1%.
The Dow Jones Industrial Average fell 149.93 points, or 0.56%, to 26,577.61. The S&P 500 lost 23.09 points, or 0.78%, to 2,922.26, and the Nasdaq Composite dropped 113.81 points, or 1.42%, to 7,891.89.
Trump threatened to obliterate parts of Iran if it attacked "anything American," in a new war of words. Tehran condemned the latest U.S. sanctions on Iran and called White House actions "mentally retarded."
Trump is due to meet one-on-one with at least eight world leaders at the G20 summit in Osaka, Japan, at the end of the week, including Chinese President Xi Jinping, for discussions on trade, and Russian President Vladimir Putin.
Chinese investors seemed none too hopeful as Shanghai blue chips slipped 1%. Japan's Nikkei dropped 0.4%.
Oil prices rose slightly ahead of U.S. data expected to show crude stocks declining there, outweighing investors' concerns that U.S.-China trade tensions could weigh on fuel demand.
Benchmark Brent crude futures rose 19 cents to settle at $65.05 per barrel.
U.S. crude futures slid 7 cents to settle at $57.83 a barrel.
U.S. gold futures were little changed on settlement at $1,418.7 an ounce.
(Reporting by Herbert Lash; Editing by Steve Orlofsky and Leslie Adler) |
Eaton Corporation plc (NYSE:ETN): The Best Of Both Worlds
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
I've been keeping an eye on Eaton Corporation plc (NYSE:ETN) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ETN has a lot to offer. Basically, it is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at thereport on Eaton here.
ETN's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that ETN has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. ETN appears to have made good use of debt, producing operating cash levels of 0.38x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
ETN is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Eaton, I've put together three key aspects you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for ETN’s future growth? Take a look at ourfree research report of analyst consensusfor ETN’s outlook.
2. Historical Performance: What has ETN's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of ETN? 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. |
Greece: Turkey's gas drilling off Cyprus shows 'weakness'
NICOSIA, Cyprus (AP) The prime minister of Greece says Turkey's ongoing drilling for gas in waters where Cyprus has exclusive economic rights is a sign of "weakness." Greek Prime Minister Alexis Tsipras warned Tuesday of "grave consequences" for Turkey's relations with the European Union and for regional stability if the Turkish government persists. Tsipras said "everyone knows" that Turkey's "futile" exploration in waters where Cyprus has economic rights and there is no naval deterrent indicated weakness on Ankara's part. Turkey says it's protecting its rights and those of breakaway Turkish Cypriots to the area's energy reserves. A Turkish drillship is operating off Cyprus' west coast. Turkey has dispatched a second vessel to drill off the Mediterranean island nation's east coast. EU leaders have condemned the actions and warned of sanctions. |
Tesla faces delivery bottleneck at close of second quarter - Electrek
(Reuters) - Shares of Tesla Inc <TSLA.O> fell 1.7% on Tuesday after news website Electrek reported that the electric-car maker has so far delivered 49,000 vehicles in North America during the second quarter, threatening its goal of a new record.
Chief Executive Officer Elon Musk had said last month that the company was on course to deliver a record number of cars in the quarter, beating the 90,700 it sent to customers in the final quarter of last year. [nL4N22Z3GB]
Electrek did not give any delivery number for international markets for the quarter.
The report said that when international market numbers are added, especially in places like Norway and China, Tesla will get pretty close to a new record.
It has over 12,000 additional orders as well and Tesla could end the quarter by delivering 61,000 vehicles in North America, the report said https://electrek.co/2019/06/25/tesla-orders-surge-record-quarter-delivery-bottleneck, citing sources inside the company. The report also says, citing a source familiar with the matter, that Tesla has delivered 22,000 vehicles in North America in June so far.
In the first quarter, Tesla reported a 31% fall in deliveries, sparking concerns about the company's ability to make profits and meet its delivery targets while it grapples with issues related to cash flow and manufacturing.
Demand for Tesla's Model 3 sedan and other cars have also moved to the top of investors' list of worries after the company reported slack first-quarter demand against a backdrop of U.S.-China trade tensions.
(Reporting by Sayanti Chakraborty and Arundhati Sarkar in Bengaluru; Editing by Arun Koyyur and Phil Berlowitz) |
Flip this house: How Zillow helps sellers offload homes without the stress
Amid signs that the housing market is cooling, onecontroversial element of the pre-financial crisis erais staging a comeback: House flipping.
The resurgence inflipping homes— where buyers purchase a home, perform necessary repairs and resell it within months, hopefully at a tidy profit — comes as the real estate market isshowing signs of cooling.
Still, housing companies like Zillow are moving to help buyers navigate what’s usually a tough process. With its new initiative,Zillow Offers, the company aims to “take the stress”out of selling a house quickly.
“We’ll sell the house for you, so if you don’t want to go through that process, you can very quickly get an offer,” Zillow Offers program president Jeremy Wacksman told YFi PM.
By answering a few questions and snapping a few pictures, eligible home-sellers will receive an offer from the company within a few days.
“Zillow Offers is really about helping people sell their house, because ...selling is really hard,” Wacksman said. “The stress of going through the process, the uncertainty of what you’re going to get at the end of it, and most sellers are trying to time the sale of their current house with going and buying their next house.”
Zillow will offer a service fee that amounts to 7% of the purchase price on average, but could differ depending on factors such as repairs. The seller then chooses the date within a 90-day period.
Zillow Offers, which launched a little more than a year ago and is now live in nearly a dozen markets, will resell the home soon after.
“We’re paying market value for each house. We’re trying to estimate what it’s going to cost you to sell, and then that’s the fee we charge so that we take on the work of selling,” Wacksman said.
Of course, some housing markets are better than others.
According to Wacksman, Phoenix is the ideal market for house-flipping, with relatively inexpensive houses and one of the fastest growing metro areas.
“Markets like Phoenix are great places to start, because as you mentioned training the technology to get to really accurate offers quickly, is the best way to provide the strongest offer to a home seller,” Wacksman told Yahoo Finance.
Zillow aims to buy 5,000 homes a month through Zillow Offers, and generate an annual revenue of $20 billion.
“Ultimately, we expect this service to be available everywhere,” says Wacksman.
McKenzie DeGroot is a producer at Yahoo Finance. Follow her on Twitter:@degrootmckenzie
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit. |
Tesla faces delivery bottleneck at close of second-quarter: Electrek
(Reuters) - Shares of Tesla Inc fell 1.7% on Tuesday after news website Electrek reported that the electric-car maker has so far delivered 49,000 vehicles in North America during the second quarter, threatening its goal of a new record.
Chief Executive Officer Elon Musk had said last month that the company was on course to deliver a record number of cars in the quarter, beating the 90,700 it sent to customers in the final quarter of last year.
Musk reiterated on Tuesday that the company has enough orders to set a quarterly record for vehicle deliveries, according to a leaked email cited by Bloomberg.
"We already have enough vehicle orders to set a record, but the right cars are not yet all in the right locations," Musk was quoted as having said in the mail to Tesla employees.
Electrek did not give any delivery number for international markets for the quarter.
The Electrek report said that when international market numbers are added, especially in places like Norway and China, Tesla will get pretty close to a new record.
It has over 12,000 additional orders as well and Tesla could end the quarter by delivering 61,000 vehicles in North America, the report said, citing sources inside the company. The report also says, citing a source familiar with the matter, that Tesla has delivered 22,000 vehicles in North America in June so far.
In the first quarter, Tesla reported a 31% fall in deliveries, sparking concerns about the company's ability to make profits and meet its delivery targets while it grapples with issues related to cash flow and manufacturing.
Demand for Tesla's Model 3 sedan and other cars have also moved to the top of investors' list of worries after the company reported slack first-quarter demand against a backdrop of U.S.-China trade tensions.
(Reporting by Sayanti Chakraborty and Arundhati Sarkar in Bengaluru; additional reporting by Kanishka Singh in Bengaluru; Editing by Arun Koyyur, Phil Berlowitz & Uttaresh.V) |
Heading to New York? Treat yourself to these beauty treatments
Summer is officially here and that means we're putting our best selves forward. Living in New York City, means we're always on-the-go, leaving very little time for some TLC -- after all, it's the city that never sleeps.
From whitening treatments to wellness destinations and facials, these aren't your typical spa day scenarios. Think places that emphasize increased serotonin levels, an updated smile and non-invasive fat removals. We're rounding up all of the best beauty pit stops you'll want to make on your next NYC trip.
WHERE:Beauty Fix Medspa
WHAT: Microdermabrasion Facial: A gentle exfoliation process that gently sloughs off dead skin from the surface. This polishing treatment clears away dull, congested and lifeless skin to reveal a more youthful, polished and radiant look.
The spa's medical director Dr. Steve Falleks says his "favorite part of the treatment is how the gentle microdermabrasion tool is used to remove dead skin cells followed by high frequency to close down pores and kill bacterias. This is beneficial for oily or acne prone skin types. It delivers a clearer, smoother, softer and naturally radiant complexion."
We also love Beauty Fix Spa for itstruSculpt --the latest body sculpting treatment solution that treats the entire fat layer, resulting in an average of 24 percent fat reduction without surgical or invasive methods.
WHERE:Clean Market
WHAT:IV Drip and Booster Shot Lounge: Whether you're in need of a major cleanse and detox or are interested in increased serotonin levels, Clean Market offers a slew of services that cater to your wants and needs.
Not to mention, you can improve your hangover recovery ASAP!
WHERE:JBL New York City
WHAT:Teeth Whitening: Dr. Jonathan Levine is the master when it comes to fast and easy whitening results, perfect for those sensitive to pain. Levine's office is decked out in the utmost high-tech medical devices, so much so that patients get to wear a virtual reality headset throughout the appointment.
We also love JBL for its first-everLipSync-- a 3D-infused process that seamlessly creates the most natural smile.
In collaboration withOren Tepper(you might recognize his name from the headline-making 27-hour surgery that separated twin boys born joined at the head), the doctors have teamed up to offer patients a comprehensive approach that emphasizes one’s face, lips, mouth, and smile as a whole. As leading figures in 3D technology, Levine and Tepper use co-diagnostic software that focuses on the face, forecasting how a new lip length and tooth positioning can result in a more youthful look.
WHERE:VSPOT Medi Spa
WHAT:The V-Steam: This relaxing, detoxifying spa treatment for your nether regions works to increases your libido, cleanses and revitalizes the uterus, effectively reducing discomfort associated with menstruation. If you want to feel sexy, this full steam treatment is calling your name.
Not to mention, some members of the "Real Housewives of New York" count themselves as fans of this modern-day spa.
Related; More celebrity beauty secrets we're stealing |
Is Now An Opportune Moment To Examine E*TRADE Financial Corporation (NASDAQ:ETFC)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we're going to take a look at the well-established E*TRADE Financial Corporation (NASDAQ:ETFC). The company's stock saw significant share price movement during recent months on the NASDAQGS, rising to highs of $51.27 and falling to the lows of $44.56. 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 E*TRADE Financial's current trading price of $44.56 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at E*TRADE Financial’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for E*TRADE Financial
Good news, investors! E*TRADE Financial is still a bargain right now. According to my valuation, the intrinsic value for the stock is $75.88, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that E*TRADE Financial’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.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 grow by a double-digit 10% over the next couple of years, the outlook is positive for E*TRADE Financial. 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 ETFC 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on ETFC 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 ETFC. 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 investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on E*TRADE Financial. You can find everything you need to know about E*TRADE Financial inthe latest infographic research report. If you are no longer interested in E*TRADE Financial, 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. |
Is Elastic N.V. (NYSE:ESTC) A Financially Strong Company?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Elastic N.V. (NYSE:ESTC), with a market cap of US$5.5b, often get neglected by retail investors. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. Today we will look at ESTC’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look furtherinto ESTC here.
Check out our latest analysis for Elastic
What is considered a high debt-to-equity ratio differs depending on the industry, because some industries tend to utilize more debt financing than others. As a rule of thumb, a financially healthy mid-cap should have a ratio less than 40%. For Elastic, investors should not worry about its debt levels because the company has none! This means it has been running its business utilising funding from only its equity capital, which is rather impressive. Investors' risk associated with debt is virtually non-existent with ESTC, and the company has plenty of headroom and ability to raise debt should it need to in the future.
Given zero long-term debt on its balance sheet, Elastic has no solvency issues, which is used to describe the company’s ability to meet its long-term obligations. However, another measure of financial health is its short-term obligations, which is known as liquidity. These include payments to suppliers, employees and other stakeholders. Looking at ESTC’s US$204m in current liabilities, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.11x. The current ratio is calculated by dividing current assets by current liabilities. For Software companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
ESTC has zero-debt in addition to ample cash to cover its near-term commitments. Its safe operations reduces risk for the company and shareholders, though, some degree of debt could also ramp up earnings growth and operational efficiency. This is only a rough assessment of financial health, and I'm sure ESTC has company-specific issues impacting its capital structure decisions. I suggest you continue to research Elastic to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ESTC’s future growth? Take a look at ourfree research report of analyst consensusfor ESTC’s outlook.
2. Historical Performance: What has ESTC's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
New Pentagon chief seeks Europe's help for Trump's Iran view
BRUSSELS (AP) — The Trump administration aims to persuade allies the confrontation with Iran, which threatened to worsen into a deadly shooting war last week, is "not Iran versus the United States" but rather a global challenge requiring global diplomacy, the new acting Pentagon chief said Tuesday. Speaking to reporters traveling with him to a meeting of NATO defense ministers in Brussels, Mark Esper said he wants to help form a broader coalition to deter Iran and compel its leaders to return to the negotiating table for nuclear talks. President Donald Trump, who withdrew the United States last year from an international deal to limit Iran's nuclear program and then reinstated harsh economic sanctions, says he wants to work out an even more restrictive deal with Tehran. Iran, however, denounced the latest U.S. sanctions as "idiotic" and an obstacle to talks. On Tuesday, Trump responded in kind, lashing Iran's leaders for rejecting his overtures and vowing that "any attack by Iran on anything American" would be answered with overwhelming U.S. military force that "in some areas" would mean "obliteration." Acting Defense Secretary Esper's arrival in Europe was meant to reinforce a message delivered this week by Secretary of State Mike Pompeo, who conferred with leaders in Saudi Arabia and the United Arab Emirates about countering any military threat from Iran by building a broad coalition that includes Asian and European countries. Officials said they hope this will include a wider international effort to monitor shipping in the Persian Gulf to deter Iranian attacks. Esper faces a tall order, however. His first major appearance in his new job will be Wednesday at NATO, the alliance that Trump has frequently bashed as a collection of freeloaders. And European leaders have appeared cool to the U.S. approach to Iran. Europe wants more emphasis on minimizing the chances of war, especially after the events of last week when Trump approved military retaliation for the shooting down of an American military drone aircraft but withdrew the order at the last minute. Since then, the administration has publicly emphasized its goal of "internationalizing" the Iran crisis. Story continues "This is not Iran versus the United States. This is Iran certainly versus the region, and arguably the broader global environment," said Esper, who took over Monday as acting secretary, replacing Patrick Shanahan, who resigned last week. Esper said his goal is, first, for allies to express outrage at Iran's activities, which the U.S. says include the drone shootdown and bombings of several tanker ships in the Gulf of Oman. Second, he said he wants allies to support "any range of activities" to help deter conflict with Iran. "This is the reason why we need to internationalize this issue and have our allies and partners work with us to get Iran to come back to the negotiating table and talk about the way ahead," he said. Esper said discussions about creating a maritime coalition to secure freedom of navigation in the Persian Gulf are still in the early stages. It's too early, he said, to start "counting ships" and which allies have agreed to participate. Germany, France and Britain, as well as Russia and China, remain part of the nuclear deal that Trump abandoned last year. The 2015 agreement aimed at curbing Iran's nuclear ambitions in exchange for relief from economic sanctions. Because of the unusual circumstance of being an acting defense secretary -- replacing Shanahan, who also had not been confirmed by the Senate -- Esper faces the added challenge in Brussels of assuring his international counterparts and military commanders in the region that the U.S. military is in stable and capable hands. Esper, 55, was a top lobbyist for the defense contractor Raytheon Co. before becoming Army secretary in November 2017. A West Point classmate of Pompeo, Esper served in the 1991 Gulf War with the 101st Airborne Division and retired from the Army in 2007 after 10 years on active duty and 11 in the National Guard and Army Reserve. This is by far the longest period the Pentagon has ever gone without a Senate-confirmed secretary. Trump's first defense chief, Jim Mattis, resigned in December in protest of Trump's policies and what the retired four-star Marine general considered Trump's destructive approach to allies. The two-day NATO meeting of defense ministers will include talks on many of the most worrisome international security topics: possible war with Iran; the ongoing conflict in Afghanistan; the continued fight against Islamic State militants in Syria and Iraq, and tensions with Russia. Esper, who until Sunday evening had been serving as the civilian leader of the U.S. Army, may be familiar with many of the issues, but to European defense ministers he is a relative unknown. "Expectations are really low. They are not going to expect him to be able to speak authoritatively for the president and go beyond what's in his talking points," said Derek Chollet, who served in senior positions at the White House, State Department and Pentagon during the Obama administration. On the other hand, the Brussels gathering allows Esper to meet many of his key counterparts in a short period of time, "sort of like speed dating," Chollet said. |
The Klein Law Firm Reminds Investors of Class Actions on Behalf of Shareholders of MOMO, XENT and RMED
NEW YORK, NY / ACCESSWIRE / June 25, 2019 /The Klein Law Firm announces that class action complaints have been filed on behalf of shareholders of the following companies. If you suffered a loss you have until the lead plaintiff deadline to request that the court appoint you as lead plaintiff.
Momo Inc. (MOMO)Class Period: April 21, 2014 to April 29, 2019Lead Plaintiff Deadline: July 15, 2019
During the class period, Momo Inc. allegedly made materially false and/or misleading statements and/or failed to disclose that: (i) Momo's compliance procedures and controls were inadequate to prevent, inter alia, illicit financial reporting activity; (ii) Momo's social and dating app, Tantan, was materially noncompliant with PRC law and/or regulations; (iii) Tantan was consequently at an increased risk of being removed from Chinese app stores at the direction of Chinese governmental authorities; and (iv) as a result, Momo's public statements were materially false and misleading at all relevant times.
Get additional information about theMOMOlawsuit:http://www.kleinstocklaw.com/pslra-1/momo-inc-loss-submission-form?id=2054&from=1.
Intersect ENT, Inc. (XENT)Class Period: August 1, 2018 to May 6, 2019Lead Plaintiff Deadline: July 15, 2019
Intersect ENT, Inc. allegedly made materially false and/or misleading statements and/or failed to disclose that: (1) Intersect lacked adequate reimbursement representatives to ensure physicians had access to SINUVA, Intersect's sinus implant; (2) Intersect's sales force would focus on ensuring reimbursement; (3) Intersect's sales representatives were less focused on driving sales; (4) physicians were less likely to adopt Intersect's SINUVA due to transaction costs associated with seeking reimbursement; (5) Intersect would increase staffing to address these issues; and (6) as a result of the foregoing, defendants' positive statements about Intersect's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Get additional information about theXENTlawsuit:http://www.kleinstocklaw.com/pslra-1/intersect-ent-inc-loss-submission-form?id=2054&from=1.
Ra Medical Systems, Inc. (RMED)Class Period: stockholders that purchased Ra Medical securities pursuant and/or traceable to the Company's September 2018 initial public offering.Lead Plaintiff Deadline: August 6, 2019
The complaint alleges that during the class period Ra Medical Systems, Inc. made materially false and/or misleading statements and/or failed to disclose that: (1) the Company's evaluation of sales personnel candidates was inadequate; (2) the Company's training program for sales personnel was inadequate; (3) as a result, the Company could not reasonably assure that its newly hired sales personnel were adequately experienced; (4) as a result, the Company would suffer a shortage of qualified sales personnel; (5) the Company's manufacturing process could not reasonably support increased catheter production; (6) as a result, the Company would suffer production delays; and (7) as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
Get additional information about theRMEDlawsuit:http://www.kleinstocklaw.com/pslra-1/ra-medical-systems-inc-loss-submission-form?id=2054&from=1.
Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. There is no cost or obligation to you. If you suffered a loss during the class period and wish to obtain additional information, please contact J. Klein, Esq. by telephone at 212-616-4899 or visit the webpages provided.
J. Klein, Esq. represents investors and participates in securities litigations involving financial fraud throughout the nation. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
J. Klein, Esq.Empire State Building350 Fifth Avenue59th FloorNew York, NY 10118jk@kleinstocklaw.comTelephone: (212) 616-4899Fax: (347) 558-9665www.kleinstocklaw.com
SOURCE:The Klein Law Firm
View source version on accesswire.com:https://www.accesswire.com/549873/The-Klein-Law-Firm-Reminds-Investors-of-Class-Actions-on-Behalf-of-Shareholders-of-MOMO-XENT-and-RMED |
Trump Shrugs Off Rape Accuser as 'Not My Type.' Accuser Natasha Stoynoff Shoots Back: Your 'Type' Is Any Woman in Reach.
Headline-grabbing as President Donald Trump s comments about E. Jean Carroll were in which he said the noted writer, after she accused him of raping her in the 90s, was not my type his defense did not surprise Natasha Stoynoff . Like Carroll, Stoynoff has also come forward describing a physically harrowing sexual assault by Trump : A former PEOPLE writer, Stoynoff said in 2016 that she was forcibly kissed by the now-president while interviewing him for the magazine in Florida in 2005. And, as with Carroll, Trump dismissed Stoynoffs accusation in part by attacking her appearance. Look at her. Look at her words. Tell me what you think, he said in 2017. I dont think so. Stoynoff tells PEOPLE now: When Trump feels threatened or challenged by women, hes quick to cast aspersions on their moral character, their motives and their mental health. Im not surprised at all that it took E. Jean so long to speak publicly about this, Stoynoff says. She was afraid, as were the rest of us who finally spoke up. In her forthcoming memoir, Carroll, a longtime advice columnist for Elle and former TV host, recounts in unsparing detail how Trump allegedly raped her in a dressing room at Bergdorf Goodman in Manhattan in the mid 90s. Her accusation was made public in an excerpt from her book published Friday in New York magazine . RELATED: 7 Women Who Accused Trump, Including PEOPLE Writer, Tell Their Stories Onstage I Feel Triumphant The moment the dressing-room door is closed, he lunges at me, pushes me against the wall, hitting my head quite badly, and puts his mouth against my lips, she recalled, adding, He seizes both my arms and pushes me up against the wall a second time, and, as I become aware of how large he is, he holds me against the wall with his shoulder and jams his hand under my coat dress and pulls down my tights. Carroll continued: The next moment, still wearing correct business attire, shirt, tie, suit jacket, overcoat, he opens [my] overcoat, unzips his pants, and, forcing his fingers around my private area, thrusts his penis halfway or completely, Im not certain inside me. Carroll wrote that she fought back and, after a few minutes, was able to escape. Story continues She did not report the incident to police and there were no witnesses, she wrote; Bergdorf Goodman said they had no security footage from that time period, according to New York . However, two unnamed friends of Carrolls confirmed to the magazine that she told them what happened at the time. In a lengthy statement later Friday, Trump pointed to the lack of corroborating witnesses or security video for Carrolls story. In an Oval Office interview on Monday, he again insisted she was lying. Ill say it with great respect: No. 1, shes not my type. No. 2, it never happened. It never happened, okay? he told The Hill . From left: E. Jean Carroll and President Donald Trump | Astrid Stawiarz/Getty; NICHOLAS KAMM/AFP/Getty I Natasha Stoynoff | Melanie Acevedo The president has been accused of sexual assault or misconduct by more than a dozen women. He has steadfastly denied the allegations and repeatedly claimed he does not know the women involved despite, as in Stoynoffs case, there being evidence the two had met . During his 2016 campaign, when a woman said he had reached up her skirt on an airplane, Trump told supporters: Believe me, she would not be my first choice, that I can tell you. His defense against Carroll was just the latest example of this habit of denigrating women who speak out against him, as has been noted . Indeed, Trumps public image has long deeply intertwined with vicious attacks on Mika Brzezinski, Megyn Kelly and Rosie ODonnell, all of whom have challenged him in various ways. Trumps favorite method of bullying and demeaning women who stand up to him is to attack and ridicule their physical appearance be they beauty queens, actresses, politicians, comedians, journalists, supermodels, or
anyone who happened to be born female, Stoynoff says. Its a true measure of the depth of his misogynistic contempt, she says. (A White House spokesman did not respond to a request for comment on Stoynoffs interview.) RELATED: Physically Attacked by Donald Trump a PEOPLE Writers Own Harrowing Story She tells PEOPLE she believes there are more women like us out there. While the president has tended to generalize that his accusers looks are so far beneath him it must prove that they are liars, Stoynoff says the long list of stories of his predation all of which he denied proves exactly the opposite. I dont know what his type for assaulting is, she says. I think its simply a woman who is unfortunate enough to come within his reach at that moment. But Ill tell you one thing: Im sure each and every one of us who has come forward about his assaults wished we were not his type. Stoynoff continues: To Trump, a man who has bragged that he could shoot someone on Fifth Avenue and get away with it, a bit of rape in a department store change room must be no big deal at all. |
Is Elastic N.V.'s (NYSE:ESTC) Liquidity Good Enough?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Elastic N.V. (NYSE:ESTC), with a market cap of US$5.5b, are often out of the spotlight. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. Let’s take a look at ESTC’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look furtherinto ESTC here.
See our latest analysis for Elastic
What is considered a high debt-to-equity ratio differs depending on the industry, because some industries tend to utilize more debt financing than others. A ratio below 40% for mid-cap stocks is considered as financially healthy, as a rule of thumb. The good news for investors is that Elastic has no debt. It has been operating its business with zero debt and utilising only its equity capital. Investors' risk associated with debt is virtually non-existent with ESTC, and the company has plenty of headroom and ability to raise debt should it need to in the future.
Given zero long-term debt on its balance sheet, Elastic has no solvency issues, which is used to describe the company’s ability to meet its long-term obligations. But another important aspect of financial health is liquidity: the company’s ability to meet short-term obligations, including payments to suppliers and employees. With current liabilities at US$204m, the company has been able to meet these obligations given the level of current assets of US$430m, with a current ratio of 2.11x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Software companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
ESTC has zero-debt as well as ample cash to cover its near-term liabilities. Its safe operations reduces risk for the company and its investors, but some level of debt may also ramp up earnings growth and operational efficiency. I admit this is a fairly basic analysis for ESTC's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Elastic to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ESTC’s future growth? Take a look at ourfree research report of analyst consensusfor ESTC’s outlook.
2. Historical Performance: What has ESTC's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Kind Of Investor Owns Most Of SBD Capital Corp. (CNSX:SBD)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Every investor in SBD Capital Corp. (CNSX:SBD) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. 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.'
SBD Capital is a smaller company with a market capitalization of CA$3.0m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are not on the share registry. Let's delve deeper into each type of owner, to discover more about SBD.
View our latest analysis for SBD Capital
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of SBD Capital, for yourself, below.
SBD Capital is not owned by hedge funds. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own a reasonable proportion of SBD Capital Corp.. Insiders own CA$670k worth of shares in the CA$3.0m company. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling.
The general public, mostly retail investors, hold a substantial 77% stake in SBD, 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.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Maxine Waters Wasn't Kidding About Facebook Token Moratorium
(Bloomberg) -- The powerful chairwoman of the House Financial Services Committee is doubling down on her demand that Facebook Inc. hit the pause button on its ambitious cryptocurrency.
Representative Maxine Waters said Tuesday that she’s pressing House leadership and other lawmakers to join her in requesting that the social media giant halt any development until Congress has a chance to review the token, known as Libra. The California Democrat added that Facebook hasn’t responded to her call for a moratorium, which she first made June 18.
Read More: Waters Urges Libra Pause, as Facebook Gets Fresh Washington Fury
Facebook’s announcement last week that it was developing a coin that could be used to buy goods and services triggered alarm among lawmakers, who are concerned about potential impacts on the global financial system and whether the company can protect consumers’ financial data. Facebook is already under fire in Washington for a series of stumbles, including major data breaches and allowing Russians to hijack its platform during the 2016 election to push President Donald Trump’s candidacy.
"It’s a huge idea about changing the system as we know it," Waters said of Facebook’s plans during a press conference on Capitol Hill. "We’re talking about privacy issues, the use of big data," she added.
Congressional Hearings
In a statement last week, Facebook said it would address lawmakers’ concerns. David Marcus, the Facebook executive leading the company’s cryptocurrency efforts, separately told Bloomberg News that he has been in touch with regulators and central banks in multiple countries.
Facebook has been invited to testify at a July 17 hearing of the financial services panel, Waters said. She said such hearings need to happen as soon as possible so lawmakers can get a better understanding of the company’s plans for Libra. The Senate Banking Committee has scheduled a hearing for one day earlier.
Waters said she is also circulating a letter among House lawmakers to build momentum for a halt on Libra.
Facebook, in an emailed statement Tuesday, said it looks “forward to next month’s House Financial Services’ hearing.”
Bill Foster, a Democrat from Illinois on Waters’ committee, said at the press briefing that he had met with Facebook officials about the project and was skeptical that the token would launch next year as planned. He cited the lengthy registration processes that will likely be involved.
"Their actual timescale for launching this gives us time to react," he said. "When you look at the realistic timescale -- it’s not going to be next summer."
(Adds Facebook statement in eighth paragraph.)
To contact the reporter on this story: Ben Bain in Washington at bbain2@bloomberg.net
To contact the editors responsible for this story: Jesse Westbrook at jwestbrook1@bloomberg.net, Gregory Mott
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.