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Do ESSA Bancorp's (NASDAQ:ESSA) Earnings Warrant Your Attention?
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeESSA Bancorp(NASDAQ:ESSA). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
View our latest analysis for ESSA Bancorp
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. That makes EPS growth an attractive quality for any company. Over the last three years, ESSA Bancorp has grown EPS by 8.3% per year. That's a pretty good rate, if the company can sustain it.
I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Not all of ESSA Bancorp's revenue this year is revenuefrom operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. While we note ESSA Bancorp's EBIT margins were flat over the last year, revenue grew by a solid 4.9% to US$53m. That's progress.
The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.
Since ESSA Bancorp is no giant, with a market capitalization of US$168m, so you shoulddefinitely check its cash and debtbeforegetting too excited about its prospects.
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. So it is good to see that ESSA Bancorp insiders have a significant amount of capital invested in the stock. To be specific, they have US$14m worth of shares. That's a lot of money, and no small incentive to work hard. That amounts to 8.5% of the company, demonstrating a degree of high-level alignment with shareholders.
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. A brief analysis of the CEO compensation suggests they are. I discovered that the median total compensation for the CEOs of companies like ESSA Bancorp with market caps between US$100m and US$400m is about US$1.2m.
The ESSA Bancorp CEO received US$724k in compensation for the year ending September 2018. That seems pretty reasonable, especially given its below the median for similar sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally.
As I already mentioned, ESSA Bancorp is a growing business, which is what I like to see. Earnings growth might be the main game for ESSA Bancorp, but the fun doesnotstop there. With a meaningful level of insider ownership, and reasonable CEO pay, a reasonable mind might conclude that this is one stock worth watching. Now, you could try to make up your mind on ESSA Bancorp by focusing on just these factors,oryou couldalsoconsider how its price-to-earnings ratio compares to other companies in its industry.
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here's Why You Should Hold on to McKesson (MCK) Stock Now
McKesson CorporationMCK is well poised for growth backed by strong segmental performances and solid prospects in the pharmaceutical and medical supplies distribution market. However, increasing pricing pressure remains a concern.The stock currently carries a Zacks Rank #3 (Hold).Price PerformanceShares of McKesson have gained 18.7%, outperforming the industry’s growth of 17.1% on a year-to-date basis. Moreover, the stock outpaced the S&P 500 Index’s rally of 16.5%.
What’s Weighing on the Stock?The company has been witnessing escalating pricing pressure and entered fiscal 2020 with an assumption of branded inflation in the mid-single digits.Fluctuations in generic pharmaceuticals, negative currency movements and intense competition in the niche space are hindering the company’s prospects.Factors to Bolster McKessonBeing a major player in the pharmaceutical and medical supplies distribution market, McKesson continues to benefit from its position over a considerable period of time. The Distribution Solutions segment caters to a wide range of customers and businesses and stands to benefit from increased generic utilization, inflation in generics driven by several patent expirations in the next few years, and an aging population.Notably, the company announced a multi-year strategic growth initiative update that is currently expected to generate approximately $400-$500 (up from the previously guided range of $300-$400 million) million in annual pre-tax gross savings. This will be substantially realized by the end of fiscal 2021.McKesson continues to benefit from acquisitions and strategic collaborations, which in turn will drive the company’s growth while contributing substantially to the top line.Management aims to increase efficiency, accelerate execution and improve long-term performance through its initiatives that consist of multiple growth pillars. Late 2018, management at McKesson announced that the company has made solid progress in its operating model and other cost-out initiatives. Based on strong business strategies, the company is anticipated to drive increased efficiency and productivity.Which Way Are Estimates Headed?For 2020, the Zacks Consensus Estimate for revenues is pegged at $221.77 billion, indicating an improvement of 3.5% from the year-ago period. For adjusted earnings per share, the same stands at $14.14, suggesting growth of 4.2% from the year-ago reported figure.Key PicksSome better-ranked stocks from the broader medical space are Cardiovascular Systems, Inc. CSII, Oxford Immunotec Global PLC OXFD and Haemonetics Corp. HAE, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardiovascular Systems has earnings growth rate for fiscal fourth quarter of 2019 of 33.3%.Oxford Immunotec has a long-term earnings growth rate of 25%.Haemonetics has a long-term earnings growth rate 13.5%.
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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 reportOxford Immunotec Global PLC (OXFD) : Free Stock Analysis ReportHaemonetics Corporation (HAE) : Free Stock Analysis ReportCardiovascular Systems, Inc. (CSII) : Free Stock Analysis ReportMcKesson Corporation (MCK) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Kit Kat, Heath, and Hersheys Cookies n Creme Iced Coffees Are Coming to Dunkin This Summer
Photo credit: Dunkin' From Cosmopolitan When youre 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 Hersheys for a candy-coated, caffeinated collab we didnt 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 Hersheys Cookies n Creme. This isnt actually the first time Dunkin has incorporated Hersheys into its menu, lest you forget its Hersheys Kisstopped 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 Beanflavored 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. Hersheys Cookies n Cremeflavored coffee combines white chocolate with notes of cookie flavors. Plus, youve got options for how youd like to be taken down via sugar coma. Both flavored coffees can be hot, iced, an espresso drink, a frozen coffee, or a 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 donuts was ever in its name in the first place, Dunkin is releasing a Hersheys Cookies n Creme Donut-a square-shaped confection filled with vanilla buttercream and topped with Hersheys cookie crumbles. (No pinch required. This is real.) Story continues 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 youre coming down from your sugar high, fire up the summer vibes by biting into Dunkins limited-edition Sweet BBQ Bacon Breakfast Sandwich. Egg, cheese, and extra bacon all coated in sweet BBQ seasoning makes for an unforgettable morning. ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne |
Brief Commentary On Star Bulk Carriers Corp.'s (NASDAQ:SBLK) Fundamentals
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Star Bulk Carriers Corp. (NASDAQ:SBLK) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of SBLK, it has a great history of performance and a buoyant growth outlook not yet reflected in the share price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on Star Bulk Carriers here.
SBLK is an attractive stock for growth-seeking investors, with an expected earnings growth of 77% in the upcoming year, made up of high-quality, operational cash from its core business, which is expected to more than double over the next year. This indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. In the past couple of years, SBLK has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did SBLK outperformed its past performance, its growth also surpassed the Shipping industry expansion, which generated a 59% earnings growth. This paints a buoyant picture for the company.
SBLK's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the market, SBLK is also trading below other listed companies on the US stock exchange, relative to earnings generated. This bolsters the proposition that SBLK's price is currently discounted.
For Star Bulk Carriers, I've put together three essential aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Dividend Income vs Capital Gains: Does SBLK return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Ourhistorical dividend yield visualizationquickly tells you what your can expect from SBLK as an investment.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of SBLK? 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. |
A 'One Punch Man' game is coming to consoles and PC
At last, there's a full-fledgedOne Punch Mangame coming to consoles and computers. Bandai Namco hasannouncedwork onOne Punch Man: A Hero Nobody Knows, an "action fighting" game for PC, PS4 and Xbox One. It's a three-on-three brawler that will include many of the characters from the series, including its centerpiece Saitama as well as his sidekick Genos, the selfless Mumen Rider and the obsessive Speed-o'-Sound Sonic.
There's no release date just yet, although the early trailer suggests it's a classic arena fighter. The real question is how Bandai Namco play-balances this game. When Saitama's whole conceit is that he can defeat any enemy with a single fist, how does the game represent him properly without making him wildly overpowered? Have him toodistractedby mosquitos to unleash his full fury? There's likely a lot of time to go before the release, though, so we'd expect answers by then. |
First Colombia Development Corp. Appoints Blair Mullin as Chief Financial Officer
SAUSALITO, CA / ACCESSWIRE / June 25, 2019 /FirstColombia Development Corp.("FCOL") (OTC PINK: FCOL) today announced the appointment of BlairMullinas Chief Financial Officer. Mr.Mullinwill assume CFO duties from Cindy Kelly, who has served in the position since 2011 and will be retained as a consultant through the end of July to assist with a smooth and efficient transition.
Most recently, Mr. Mullin has been primarily involved in consulting and interim CFO roles, with both public and private companies, in a wide variety of industries, in numerous capacities including turnarounds, startups, capital-raising, administration, governance, clean-up, infrastructure, business planning and accounting.
"We are delighted that Blair has agreed to join us as CFO of FCOL," said Chris Hansen, founding CEO of FCOL. "He brings extensive experience in financial management roles with companies in diverse, multinational industries, including medicinal cannabis, through which he has developed high-level expertise in relevant areas, such as startups, capital-raising, business planning and more. These skills will greatly benefit FCOL as we grow and expand our business in the burgeoning medical cannabis market. We appreciate Cindy Kelly's valuable service, and we wish her continued success with her administrative and management consulting firm."
Blair Mullin stated, "I am extremely pleased to come aboard as FCOL's CFO at this key inflection point, as FCOL embarks on the development of a nationwide network of medical marijuana dispensaries and related businesses in the United States, with a focus on both THC- and CBD-dominant cannabis manufacturing, distribution and sales. It is an exciting time in a promising sector, with a company with tremendous prospects and dynamic management team."
About Mr. Mullin
Blair Mullin is managing director of Somerset Associates LLC, a CFO, accounting, tax and financial consulting company, and serves on the board of CanaQuest Medical Corp. Since 2009, he has operated primarily in consulting and interim CFO roles in multiple sectors, including FinTech, blockchain, drones, recycling, medical marijuana and electrical power generation. From 2003-2009, Blair was a partner of Tatum Partners, a human capital firm engaged in providing CFO services. Within Tatum, Blair served in numerous leadership roles: from 2006-2009, as CFO of Zi Corporation, a leading software development company specializing in mobile phones, which was sold in April 2009 to Nuance Communications; from 2003-2006, as interim CFO of Homax Products, Vice President Finance of Yakima Products, and as a consultant in several engagements in industrial construction, manufacturing and air transportation; from 2001-2003, as turnaround consultant to companies in the telecom sector during the critical post-9/11 timeframe; from 1995-2001, he was engaged in various C-level capacities in a public entity that was restructured and eventually became International DisplayWorks, a manufacturer of LCD displays based in Rocklin, California with operations in Shenzhen, China, which was later sold to Flextronics. Mr. Mullin began his career in banking in 1982 after completing his MBA from the University of Western Ontario in London, Ontario, Canada. He currently resides in the Charlotte, North Carolina area.
This press release is not an offer of securities or a solicitation for purchase, subscription or sale of securities in the United States of America or in any other jurisdiction in which it would be unlawful to do so.
For more information
www.FirstColombia.com
Investors:
+1 (415) 729-1720
investors@firstcolombia.com
Media:
media@firstcolombia.com
SOURCE:First Colombia Development Corp.
View source version on accesswire.com:https://www.accesswire.com/549872/First-Colombia-Development-Corp-Appoints-Blair-Mullin-as-Chief-Financial-Officer |
Ex-Trump Economist Joins ‘Crypto Central Bank’ After Failed Fed Bid
Stephen Moore, who recently rescinded his bid to join the Federal Reserve, announced plans to start his own cryptocurrency-based mini-Fed – billed as “the world’s decentralized central bank,” according toFox Business.
A pitch deck sent exclusively to Fox allegedly said Moore has teamed with a group of unnamed entrepreneurs to develop a “central bank” – ironically called “Decentral” – aimed at reducing the volatility among digital currencies.
The bank will attempt to regulate the supply of crypto, just as the Fed controls monetary policy in the U.S. It will exchange its own dollar-backed token for other cryptocurrencies and use an algorithm to control the amount of stable tokens in circulation, Decentral officials told FOX. This stable coin is similar to Facebook’s Libra, and aims to promote uniformity and reliability among a fractured landscape of digital assets.
Related:Boston Fed Announces Plans To Design a Blockchain ‘Supervisory Node’
“I’m really excited about doing this,” Moore told the business media outlet. “I hope it makes me rich.”
Moore said he will officially join Decentral on July 1, as chief economic officer and report to Sam Kazemian, Decentral CEO. “These guys are super smart,” he said of his partners.
He also told Fox, he believes cryptocurrencies can circulate in the economy in such a way that they don’t conflict with the Fed’s monetary policy, adding, “This is an alternative way of making payments.”
Kazemian told Fox that Decentral isn’t trying to compete with the Fed, but plans to introduce their business model to Fed officials at some point.
Related:Cheap Power Is Luring Battered Bitcoin Miners to Iran
“Decentral will solve the biggest problem facing regulators when it comes to the crypto space: The current instability of pricing,” he said.
“Our goal is to be collaborative, not combative,” he said. “The next big wave in the crypto space is a digital currency that is designed to be useful to consumers and keep stable prices instead of acting as volatile, speculative investments. Stable coins are the next big innovation in the crypto industry.”
It’s unclear how Decentral will convince holders to trade their crypto for this new token, or how the firm will act to prevent inflation – a core mandate of Fed – if the business does not have authority to act as a central clearinghouse.
Kedar Iyer will serve as chief technology officer, Travis Moore as director of software, and Henry Liu as chief operating officer —all of whom have backgrounds in crypto and technology startups. The remaining three partners have political backgrounds.
Mike Novogratz is cited as an investor in Decentral’s parent company.
Moore previously worked as an editorial writer for the Wall Street Journal, and was a member of the conservative Heritage Foundation. He is also a distinguished visiting fellow to the White House, following his advisement on President Trump’s 2017 tax plan.
Moore was picked by Trump in March to fill one of two vacant positions at the Fed, but had not been formally nominated. He withdrew his bid in early May after weeks of criticism about his political partisanship, shifting views on interest rate policy, and sexist comments about women.
His discussions with Decentral began at recent SALT conference, a hedge fund and investing confab in early May run by Anthony Scaramucci of SkyBridge Capital.
Federal Reserve seal via Shutterstock
• Ex-Trump Advisor Predicts ‘Global Cryptocurrency’
• Trump Signs Defense Bill Authorizing Blockchain Study |
Amazon Wins ‘.amazon’ Domain Name, Aggravating South American Region and Undermining Digital Commons
This article was written by Tara Van Ho, Lecturer in Law and Human Rights, University of Essex, and originally appeared onThe Conversation, a not-for-profit news site dedicated to unlocking ideas and knowledge from academic experts.
Amazon(NASDAQ: AMZN)has a new means of dominating the market – one that threatens the economic interests of the people who call the original Amazon home. In May 2019, the online megastore secured the general top-level domain name ".amazon." Anyone with the internet will recognize these domain types even if they don't know the term. They're the endings to website addresses, like ".com," ".org," and ".ac.uk."
The ICANN – the organization charged with overseeing the internet's domain names – gave exclusive rights to the US based company to administer ".amazon" domains, allowing the company to expand its branding opportunities. Businesses have been able to purchase these domain names since 2011, and Amazon's application has been pending since 2012.
Part of the reason for the delay is because Brazil and Peru argued against it. They said granting a private company exclusive rights to the domain would "prevent the use of this domain for purposes of public interest related to the protection, promotion and awareness raising on issues related to the Amazon biome".
Along with Brazil and Peru, Bolivia, Colombia, Ecuador, Guyana, Suriname and Venezuela belong to the Amazon Cooperation Treaty Organization (ACTO). Collectively, the ACTO states believe their territorial interests entitle them to be involved in governing ".amazon" domains.
ICANN's guidance limits the right of corporations to register certain geographic names, but not others. The list they use generates absurd results. The Isle of Man receives the highest level of protection in the world, while Scotland receives significantly less. Regions like Mesopotamia and the Amazon receive no protection at all.
Initially, Amazon was unwilling to share the .amazon domains with the ACTO states, arguing that:
Because the .amazon registry will be a single entity registry and for purposes which serve Amazon's strategic business aims, the reserved names cannot be offered to Governments or other official bodies for their own use...
This meant that Brazil could not, for example, use Brazil.amazon to promote tourism in its poorer and more isolated states. Brazil and Peru successfully argued this was inappropriate to an intergovernmental body that is supposed to influence ICANN decisions. As a result, ICANN denied Amazon's application. The company appealed this decision to an independent arbitration panel. In 2017, the panel concluded that ICANN was too deferential to the governments. They ordered ICANN to reconsider the application.
Since 2017, the company and the ACTO states have attempted to negotiate an agreement over the use of the term ".amazon." When talks broke down, Amazon suggested compromises that it felt represented the interests of both parties. The company relented on its earlier opposition to sharing ".amazon" names with the ACTO states, granting nine domain names – one for the ACTO organization and one for each state.
Amazon also promised not to use domain names that are significant for the culture and heritage of the Amazonian region. The company had previously proposed providing USD$5,000,000 worth of Amazon products and services as compensation to the states, but this offer was not included in the latest proposal.
Before last month's Board meeting, ACTO asked for the decision to be postponed so that negotiations could continue. Instead, ICANN's Board of Directors ended the negotiations and granted the company the exclusive rights to administer the '.amazon' domains in the future.
This decision highlights what can happen when domain names like ".amazon" are privatized. ICANN is fulfilling a role previously carried out by the US government, but the arbitration panel's decision indicates that ICANN is no longer subjected to the oversight of any government.
The inability of states to effectively influence ICANN decisions can have a detrimental impact on human rights and environmental protection. In their resolution outlining the Amazon decision, there's no reference to the rights of indigenous peoples in the original Amazon, but these people will still be affected.
Under international human rights law, the indigenous peoples in the region should have been consulted. Exclusive use of ".amazon" will deprive them of using it for economic opportunities in their historical lands, such as eco-tourism. We raised this in a letter to ICANN before the Board's decision. The Board does not appear to have considered these issues, and a response from ICANN acknowledged receipt of the letter but didn't address the substantive concerns over the rights of indigenous peoples. Amazon, meanwhile, has not issued a press statement on the subject since the ICANN decision.
At its inception, the internet was a great equalizer. It meant large and small businesses could compete with one another on a level playing field. ICANN has been entrusted with administering the internet and protecting it. That means protecting its broader purpose in society. ICANN appears to have forgotten that part of its role. It now charges costs USD$185,000 for a top-level domain name like ".amazon". It's not surprising that a company whose 2018 profits were reportedly USD$11.2 billion – for which it paid no federal taxes – was able to purchase the domain before an indigenous community in Brazil.
The implications for the future of the internet are troubling. What was a global commons may become an exclusive field where those who have the most can acquire more. Those who have the least meanwhile lose even the right to use the name of their homeland.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has adisclosure policy. |
What You Must Know About Element Solutions Inc's (NYSE:ESI) Financial Strength
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Mid-caps stocks, like Element Solutions Inc (NYSE:ESI) with a market capitalization of US$2.6b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. Today we will look at ESI’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 ESI here.
See our latest analysis for Element Solutions
ESI's debt levels have fallen from US$5.6b to US$1.7b over the last 12 months , which includes long-term debt. With this debt payback, ESI currently has US$230m remaining in cash and short-term investments , ready to be used for running the business. Additionally, ESI has produced US$4.5m in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 0.3%, meaning that ESI’s current level of operating cash is not high enough to cover debt.
With current liabilities at US$456m, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.2x. The current ratio is calculated by dividing current assets by current liabilities. For Chemicals companies, this ratio is within a sensible range as there's enough of a cash buffer without holding too much capital in low return investments.
ESI is a relatively highly levered company with a debt-to-equity of 73%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. However, since ESI is presently unprofitable, there’s a question of sustainability of its current operations. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.
ESI’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. This is only a rough assessment of financial health, and I'm sure ESI has company-specific issues impacting its capital structure decisions. I recommend you continue to research Element Solutions to get a more holistic view of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ESI’s future growth? Take a look at ourfree research report of analyst consensusfor ESI’s outlook.
2. Valuation: What is ESI 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 ESI 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. |
Yes, there's a total solar eclipse coming next week ... in South America
If you've still got leftover solar eclipse fever from 2017, don't fret: There's another one coming next week. But there's a catch – you'll have to hop on a plane to see it. On July 2, a total eclipse of the sun will be visible in portions of South America, weather permitting. The path of the eclipse, which moves from west to east, "starts in the South Pacific near Pitcairn Island and ends over land, having touched just two countries: Chile and Argentina," according to Astronomy magazine . Specifically, the sun will disappear along a narrow track that stretches from Chile’s coast to just south of Buenos Aires, Argentina's capital and largest city. The diamond ring effect is displayed during totality "Totality will first make landfall in South America on the coast of Chile near the city of La Serena at 4:39 p.m. on July 2," Space.com said. La Serena, population 200,000, is about 250 miles north of Santiago, Chile's capital and largest city. Santiago residents will have to drive over 5 hours north to see the spectacle, Astronomy magazine said. After that, the moon's shadow will cross the Andes Mountains and graze the city of San Juan, Argentina. Then, as the eclipse moves east across Argentina, it will slide just south of the cities of Cordoba and Buenos Aires before heading back out to the Atlantic Ocean just before sunset at 5:40 p.m. Though the total eclipse will be visible in the southern suburbs of Buenos Aires, the sun will be setting and thus very close to the horizon. As a refresher, during a total solar eclipse, the moon blocks the sun, turning day to an eerie twilight. This is what the corona will likely resemble during the #eclipse on July 2nd. Why not a more dynamic corona? We’re at solar minimum, meaning — save for connecting field lined between the poles — we have few regions of magnetic flux or any coronal loops. https://t.co/0YAq3GT9QI pic.twitter.com/mM4qVtVR94 — Matthew Cappucci (@MatthewCappucci) June 22, 2019 If you do venture down to South America, keep this in mind: Never look directly at the sun, except during the brief moments of totality. NASA said the only safe way to look directly at the uneclipsed or partially eclipsed sun is through special-purpose solar filters, such as “eclipse glasses. Story continues It's the Earth's first total solar eclipse "since the Great American Total Eclipse of 2017," according to EclipseWise.com . Here in the U.S., the next total solar eclipse will be on April 8, 2024, and it will be visible from Texas to New England. Big U.S. and Canadian cities in the path of the 2024 eclipse include Austin, Texas; Dallas; Indianapolis; Cleveland; Buffalo, New York; and Montreal. What are your plans for 2 July? We're celebrating 50 years of La Silla Observatory #LaSilla50Years and a Total Solar Eclipse #LaSillaTSE . Watch our live webcast of the eclipse at https://t.co/bXJPfeOhji (photo simulation) https://t.co/yZrGz0ands pic.twitter.com/ocnCIlYPr7 — ESO (@ESO) June 24, 2019 This article originally appeared on USA TODAY: Yes, there's a total solar eclipse coming next week ... in South America View comments |
Why Palatin Technologies Stock Dropped as Much as 21.5% Today
Shares ofPalatin Technologies(NYSEMKT: PTN)fell over 21% on Tuesday after STAT analyst Adam Feuerstein said that the Food and Drug Administration "made a mistake" by approving the company's new drug, Vyleesi. The drug is intended to treat hypoactive sexual desire disorder (HSDD), or low libido, in women.
Investors didn't take the criticisms lightly, owing to Feuerstein's status and reputation for blunt and honest analysis over the years. Shares of Palatin andAMAG Pharmaceuticals(NASDAQ: AMAG), both involved in the drug's manufacture and marketing, sank initially.
As of 3:04 p.m. EDT, Palatin stock had settled to an 8.3% loss, while AMAG had a 3.4% gain.
Image source: Getty Images.
Whether or not the FDA "erred" as Feuerstein contends, it's all a moot point now that the drug has earned marketing approval. The real issue will be whether or not the drug gains any market traction. Feuerstein is correct that the drug demonstrated little benefit in clinical trials and could prove to be rather inconvenient since it has to be injected.
What's more, nearly 40% of women taking the drug in clinical studies reported nausea, and the FDA recommends no more than eight doses per month. While the drug has yet to be priced, there are plenty of warning signs that it could prove to be a commercial flop.
Palatin Technologies was a risky, small-cap stock at the start of 2019. Although shares gradually climbed to a year-to-date gain of 120% by mid-May, they've receded since thefiscal third-quarter 2019 earnings conference call. The company now sports a market cap of just $225 million. Therefore, even if individual investors aren't fond of Feuerstein, there's no denying that Mr. Market isn't terribly optimistic about the company, either.
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Do Institutions Own Sirona Biochem Corp. (CVE:SBM) Shares?
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If you want to know who really controls Sirona Biochem Corp. (CVE:SBM), then you'll have to look at the makeup of its share registry. 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.'
Sirona Biochem is a smaller company with a market capitalization of CA$107m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are not really that prevalent on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about SBM.
View our latest analysis for Sirona Biochem
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Sirona Biochem's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Hedge funds don't have many shares in Sirona Biochem. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
It seems insiders own a significant proportion of Sirona Biochem Corp.. It has a market capitalization of just CA$107m, and insiders have CA$11m 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, who are mostly retail investors, collectively hold 89% of Sirona Biochem shares. 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.
It's always worth thinking about the different groups who own shares in a company. But to understand Sirona Biochem better, we need to consider many other factors.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
Of coursethis may not be the best stock to buy. So take a peek at thisfreefreelist 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. |
New AFL-CIO report shows pay disparity between CEOs, workers
The average S&P 500 CEO made 287 times what a typical American worker made last year, according to the AFL-CEO’s annual Executive Paywatchreport.
“We believe this disparity represents a fundamental problem with our economy,” said Liz Shuler, AFL-CIO Secretary-Treasurer. “For too long, corporate greed and rigged economic rules have created a relentlessly growing pay gap between CEOs and the rest of us.”
The new report says CEOs of companies in the S&P 500 index made $14.5 million on average in 2018, compared to $13.94 million the year prior.
“Over the past decade, the average S&P 500 CEO’s pay increased by more than $5 million, while the average worker over the past decade only saw an increase of less $800 a year,” said Shuler on a call with reporters.
The AFL-CIO has put together the database of CEO pay for decades. It previously compared CEO pay to the average pay of production and nonsupervisory workers, according to the Bureau of Labor Statistics.
But a provision in the Dodd-Frank financial regulations nowrequires companiesto disclose the ratio of CEO pay to median worker pay.
“We finally have company-specific data,” said Brandon Rees, AFL-CIO Deputy Director for Corporations and Capital Markets. “The Executive Paywatch ratio of CEO to worker pay is the simple arithmetic mean – the average – of the company-disclosed pay ratios. So this is what the companies themselves say their ratio of CEO to worker pay is.”
The National Retail Federation argues the requirementis unfairbecause it singles out industries that have high percentages of part-time, seasonal and entry-level employees. The NRF says the rule distorts retailers’ pay ratios.
Of the S&P 500 companies in the AFL-CIO’s database, Gap (GPS) has the highest CEO-to-worker ratio of 3,566 to 1 — with the median worker making $5,831.
The highest paid CEO on the list was David Zaslav of Discovery (DISCA), who raked in more than $129 million in 2018. That’s 1,511 times what the median worker made.
Last year, Copart (CPRT) had the narrowest gap between CEO and worker pay of all S&P 500 companies. Its CEO made six times the median worker pay.
AFL-CIO reports Berkshire Hathaway (BRK-A) came in second, with Warren Buffett making seven times the median worker pay.
But critics say the AFL-CIO’s findings are flawed and misleading.
Mark Perry with American Enterprise Institute, a conservative think tank, argues the labor group should consider the median CEO pay instead of the average.
According to theWall Street Journal,median S&P 500 CEO compensation was $12.4 million last year.
Perry told Yahoo Finance the AFL-CIO should also use the median CEO to worker ratio, instead of the average ratio.
“Since they’re looking at median pay for the employees, then it would make sense to look at the median pay ratio,” said Perry.
Perry says companies with large amounts of part-time and seasonal workers distort the average ratio. Plus, he notes that CEOs often work far more than 40 hours each week.
“They’re comparing part-time worker pay to a CEO who is working 60 hours a week or something — so it’s not really a fair comparison,” said Perry.
Perry argues even if all of the S&P 500 CEOs distributed their salaries to the more than 100 million rank-and-file workers, individual employees would still not see much of a pay raise.
“The AFL-CIO has fallen here hook, line and sinker for the zero-sum, fixed pie fallacy, one of the most common economic mistakes that falsely assumes that there’s a static fixed pie and therefore one party can gain (get a bigger slice) only at the expense of another,” said Perry in aposton AEI’s website.
Jessica Smith is a reporter for Yahoo Finance based in Washington, D.C. Follow her on Twitter at@JessicaASmith8.
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Did You Miss Sirona Biochem's (CVE:SBM) Whopping 538% Share Price Gain?
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Sirona Biochem Corp.(CVE:SBM) shareholders might be concerned after seeing the share price drop 12% in the last week. But that cannot eclipse the spectacular share price rise we've seen over the last twelve months. In that time, shareholders have had the pleasure of a 538% boost to the share price. So the recent fall isn't enough to negate the good performance. The real question is whether the fundamental business performance can justify the strong increase over the long term.
It really delights us to see such great share price performance for investors.
Check out our latest analysis for Sirona Biochem
With just CA$781,017 worth of revenue in twelve months, we don't think the market considers Sirona Biochem to have proven its business plan. 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 Sirona Biochem has the funding to invent a new product before too long.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some Sirona Biochem 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 Sirona Biochem had CA$3,250,851 more in total liabilities than it had cash, when it last reported in January 2019. That makes it extremely high risk, in our view. So the fact that the stock is up 538% in the last year shows that high risks can lead to high rewards, sometimes. It's clear more than a few people believe in the potential. The image below shows how Sirona Biochem's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
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. One thing you can do is check if company insiders are 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.
It's nice to see that Sirona Biochem shareholders have received a total shareholder return of 538% over the last year. That gain is better than the annual TSR over five years, which is 37%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before spending more time on Sirona Biochemit 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 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. |
EMERGING MARKETS-Brazil leads Latam assets lower after Fed comments
(Updates prices) By Susan Mathew June 25 (Reuters) - Latin American currencies and stocks slid on Tuesday, led by Brazil assets, after comments from the U.S. Federal Reserve chief saw traders trim bets of a half-point cut in U.S. interest rates in July. The dollar recovered from three month lows hit earlier in the session, while U.S. stocks remained pressured. Most Latam stock indexes tracked Wall Street amid already subdued sentiment on Chinese-U.S. trade anxiety and rising tensions between the United States and Iran. MSCI's index of regional currencies slipped 0.4% with Brazil's real down 0.7%, while its index of Latam stocks lost 1.5%. Gains on the regional MSCI indexes over recent weeks have been fueled by expectations of more stimulus from both the Fed and the European Central Bank. Fed Chair Jerome Powell pushed back on pressure from President Donald Trump to cut rates, saying that policymakers were grappling with whether trade uncertainties and other issues supporting interest rate cuts. Earlier, St. Louis Fed 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. Investors had broadly started to price in increasing chances of a cut in the Fed's key rates next month. Lower U.S. interest rate tend to boost the relative attractiveness of developing world assets, usually spurring broad inflows into emerging markets. Mexico's peso lost 0.1% and hit two-week lows. Mexico City's IPC stock index edged higher. Mexico's central bank is expected to hold its benchmark interest rate steady at 8.25% on Thursday, a Reuters poll showed, after annual inflation slowed this month more than expected. Brazil's real steepened losses, while the main stock index slid 1.5% after four days of gains. Brazil's economy is stagnating and price pressures are evolving "favorably," but uncertainty surrounding economic and fiscal reforms is clouding the growth and inflation outlook, minutes of the central bank's rate-setting committee, known as Copom, showed. "Our impression is that the tone of the Copom minutes seeks to cool a bit market expectations of a rate cut in July. Yet it does keep the door open for policy easing at some point," wrote Mauricio Oreng, a senior Brazil strategist at Rabobank. Oreng said the first-round approval of an effective pension reform in Congress's Lower House may be the "concrete progress" in reforms that the bank reiterated as a condition to consider rate cuts. He said that three rate cuts of 50 basis points from September onwards could be expected. The lower house vote on pension reform is expected to take place before lawmakers break for recess on July 18, presidential spokesman Otavio Rego Barros said on Tuesday. Argentine assets eked out gains, as did the Colombian peso , which hit a two-month high. Key Latin American stock indexes and currencies at 1940 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1044.67 -0.8 MSCI LatAm 2833.00 -1.54 Brazil Bovespa 100206.98 -1.82 Mexico IPC 43791.35 0.11 Chile IPSA 5089.23 -0.03 Argentina MerVal 40231.40 0.3 Colombia IGBC 12675.15 -0.16 Currencies Latest Daily % change Brazil real 3.8507 -0.65 Mexico peso 19.2180 -0.13 Chile peso 680.8 -0.03 Colombia peso 3188.4 0.10 Peru sol 3.304 -0.09 (Reporting by Susan Mathew in Bengaluru; Editing by Leslie Adler) |
Did You Miss Incitec Pivot's (ASX:IPL) 17% Share Price Gain?
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The simplest way to invest in stocks is to buy exchange traded funds. But the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, theIncitec Pivot Limited(ASX:IPL) share price is 17% higher than it was five years ago, which is more than the market average. Zooming in, the stock is actually down 2.9% in the last year.
See our latest analysis for Incitec Pivot
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Incitec Pivot's earnings per share are down 8.4% per year, despite strong share price performance over five years. The strong decline in earnings per share suggests the market isn't using EPS to judge the company. The falling EPS doesn't correlate with the climbing share price, so it's worth taking a look at other metrics.
The revenue growth of 2.1% per year hardly seems impressive. So it seems one might have to take closer look at earnings and revenue trends to see how they might influence the share price.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
Incitec Pivot is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Incitec Pivot willearn in the future (free analyst consensus estimates)
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Incitec Pivot the TSR over the last 5 years was 35%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
While the broader market gained around 12% in the last year, Incitec Pivot shareholders lost 0.9% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 6.2%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bristol-Myers to Sell Otezla for Celgene Merger, Shares Down
Shares ofBristol-Myers Squibb CompanyBMY declined 7.42% after it announced plans to divest one of Celgene Corporation’s CELG blockbuster drugs, Otezla, to complete the impending merger. The company also announced dismal results from a liver cancer study.
Bristol-Myers is planning to divest plaque psoriasis and psoriatic arthritis drug, Otezla, to be able to close the acquisition on a timely basis in light of concerns expressed by the U.S. Federal Trade Commission (FTC).
We remind investors that the company has tyrosine kinase 2 (TYK2) inhibitor, BMS-986165, in its pipeline, which is being evaluated in several autoimmune diseases, including psoriasis. The regulatory agency was concerned about a possible overlap between Otezla and BMS-986165 in the pipeline.
Hence, Bristol-Myers decided to sell Otezla.
However, investors were clearly disappointed by the decision as Otezla raked in more than $1.6 billion of sales in 2018 and was one of the key growth drivers for Celgene, while BMS-986165 is still in development. Sales of the drug are expected to come in around $1.9 billion in 2019 and retaining the same would have enabled Bristol-Myers to develop a strong inflammation portfolio along with its rheumatoid arthritis drug, Orencia.
Moreover, the impending acquisition will be delayed as the company now expects to complete the merger by the end of 2019 or beginning of 2020, assuming the FTC accepts the consent order and other customary closing conditions are satisfied.
The divestiture is subject to further review by the FTC and requires Bristol-Myers to enter a consent decree with the commission. The proceeds of the divestiture will allow the company to accelerate its post-closing deleveraging plans.
On the other hand, Bristol-Myers might not be able to sell Otezla at a lucrative price, given the regulatory constraints.
Shares of the company have lost 12.2% in the year so far against the industry’s growth of 4.3%.
We remind investors that in January 2019, Bristol-Myers announced that it will acquire Celgene for $74 billion to boost its oncology portfolio, given the stiff competition for Opdivo from the likes Merck’s MRK Keytruda. However, the acquisition has hit a few road blocks, with a few large shareholders of Bristol-Myers opposing the merger.
The shareholders thought it to be risky and may add significant debt to the balance sheet. Moreover, Celgene’s growth-driving oncology drug, Revlimid, is expected to lose patent protection soon. The acquisition was finally given a green signal a couple of months back.
The divestiture of the drug also puts question mark on the targeted synergies and anticipated sales of the combined company, per Bristol-Myers.
Concurrently, it announced that a randomized phase III study CheckMate-459, evaluating Opdivo versus Bayer’s BAYRY Nexavar as a first-line treatment, in patients with unresectable hepatocellular carcinoma (HCC) failed. Nevertheless, Opdivo is being studied by the company across multiple settings and lines of therapy for HCC, including as monotherapy in the adjuvant setting and in combination with Yervoy (ipilimumab) for previously treated patients.
Zacks Rank
Bristol-Myers currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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 reportBristol-Myers Squibb Company (BMY) : Free Stock Analysis ReportBayer Aktiengesellschaft (BAYRY) : Free Stock Analysis ReportMerck & Co., Inc. (MRK) : Free Stock Analysis ReportCelgene Corporation (CELG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Morgan Stanley: Medtronic's $4B Financing Could Be 10-Cent EPS Tailwind
Medtronic PLC(NYSE:MDT)’s announcement that it is commencing an offer for more than $4 billion in debt securities should help the company manage its tax headwind, according to Morgan Stanley.
The Analyst
David Lewismaintained an Equal-weight rating on Medtronic with a $100 price target.
The Thesis
Medtronic announced Monday that it will commence an offer for up to $4.175 billion in outstanding debt securities; Lewis said the offer should be leverage neutral. (See his track record here.)
The financing could amount to as much as a 10-cent tailwind to EPS in fiscal 2020, or nearly 2% EPS growth if the company is able to complete the tender for the full amount, the analyst said.
The medical device company's most recent guidance included $200 million to $210 million in quarterly interest expenses, Lewis said. The offer could bring interest below $175 million, boosting Medtronic's EPS, he said.
“Management could also selectively reinvest some of these savings," the analyst said.
Price Action
Medtronic shares were down 0.16% at $98.95 late in Tuesday's session.
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Wells Fargo: Medtronic An Accelerating Growth Story Trading At A Discount
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Photo courtesy of Medtronic.
Latest Ratings for MDT
[{"Jun 2019": "Apr 2019", "": "", "Upgrades": "Maintains", "Market Perform": "Market Perform", "Outperform": "Market Perform"}, {"Jun 2019": "Feb 2019", "": "", "Upgrades": "Maintains", "Market Perform": "Neutral", "Outperform": "Neutral"}]
View More Analyst Ratings for MDTView the Latest Analyst Ratings
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These Rainbow Houses Will Make Your Month
Photo credit: Patricia J Taylor - Getty Images From House Beautiful It's June, which means in addition to kicking off summer, we're also celebrating WorldPride, the global month dedicated to recognizing the LGBTQ community. While there are literally thousands of special events, launches, and celebrations going on throughout the month (like free NYC hotel rooms and rainbow Ikea Frakta bags ), we think we've officially found our favorite way to celebrate Pride: the rainbow house. Because why only live colorfully one month of the year, when you could celebrate every day? Why settle for one shade of exterior paint when your clapboard or siding is the perfect canvas for a color gradient? {% verbatim %} View this post on Instagram ❤️🧡💛 Priiiiiide Week!!!! 💚💙💜 🏳️🌈🌈🏳️🌈🌈🏳️🌈🌈🏳️🌈 I’m SO incredibly 🙏🏽grateful to live in this weirdo little sanctuary city of inclusivity with these amazing ppl who painted their house 🌈🌈 as a symbol of what SF is all about!!!!! What continues to happen at our border is despicable and heartbreaking, and if it’s overwhelming to you too, then I hope this pic is a little moment of joy this week 🤗🤗🤗 #instagay #rainbowhouse Sending my love to anyone who’s needing it right now!!!! 💖❤️🧡💛💚💙💜💖 A post shared by Noz Nozawa (@noznozawa) on Jun 24, 2019 at 8:14pm PDT {% endverbatim %} Yesterday on Instagram, San Francisco designer Noz Nozawa shared a joyful photo of a delightfully hued home in her home city's Noe Valley neighborhood. Affectionately dubbed-what else?-the Rainbow House, the row house has been a fixture of the neighborhood for years and is a popular tourist destination on Clipper Street. But, a click on the hashtag #rainbowhouse and a quick scroll will reveal that the San Francisco facade is far from the only rainbow home out there. Just look at this colorful cabin on the beach in Mexico's Quintana Roo state: Story continues {% verbatim %} View this post on Instagram The colorful paradise of our dreams! 😍 @whyknotholbox . . . . . #AColorStory #pride #pridemonth #pride2019 #rainbow #rainbowcolors #rainbowcolours #rainbowhouse #rainbowhome #rainbowpaint #homedecor #homeexteriors #rainbowdesign #mexico #lovemexico #MexicoMagico #maxicolindo #thisismexico #descubremexico #cabinlife #cabin #cabinporn #cabintime #cabinstyle #cabindiaries #cabinsdaily #thecabinchronicles A post shared by VacationRenter (@vacationrenter) on Jun 24, 2019 at 10:30am PDT {% endverbatim %} Or how about this multicolor nail salon in Austin, Texas? {% verbatim %} View this post on Instagram In honor of #StPatricksDay I’m sharing this actual leprechaun home 💖🌟🦄🍀🌙🌈🎈 A post shared by Matt Crump • Austin, TX 🏳️🌈 (@mattcrump) on Mar 17, 2018 at 9:24am PDT {% endverbatim %} Looking for something a bit more subdued but within the rainbow theme? May I present this delightful, folksy house in London? {% verbatim %} View this post on Instagram On a mission to make your days more colourful in 2019. 🌈✨ . How is your Insta life going in the new year? Are you doing social media detox or your goal is to level up in the online world and try new things to slay the algorithm? .⠀⠀⠀⠀⠀⠀⠀⠀ Whatever is your plan for this year, I'm offering a fun photo shoot in the most beautiful outdoor locations of London. .⠀⠀⠀⠀⠀⠀⠀⠀⠀ My creative ideas+you=awesome! .⠀⠀⠀⠀⠀⠀⠀⠀⠀ .⠀⠀⠀⠀⠀⠀⠀⠀⠀ .⠀⠀⠀⠀⠀⠀⠀⠀⠀ Send me a DM if you are interested or find more information on my website. Click on the link in my bio. 💕 . . . . . . . @_popyacolour @candyminimal @lcn_london @creatorsclublondon @photoshop #traveltagged #instapassport #fromwhereistand #edlovestravel #photosofengland #colormehappy #beautifuldestinations #flashofdelight #rslove #acolorstory #exploretocreate #passionpassport #visitlondon #thehappynow #candyminimal #photosofbritain #colorhunters #minimalismo #persuepretty #trottegram #cntraveler #dametraveler #beautifulmatters #guardiantravelsnaps #colorpop #suitcasetravels #thatsdarling A post shared by GABOR ESTEFAN 📸 (@gaborestefan) on Jan 9, 2019 at 7:05am PST {% endverbatim %} And, finally, perhaps our favorite, the Equality House in Topeka, Kansas: {% verbatim %} View this post on Instagram •stay strong, you matter//rock chalk• #kansasuniversity #equalityhouse #ladybird #fieldtrip A post shared by Claire (@claire.genis) on Apr 18, 2019 at 1:07pm PDT {% endverbatim %} This unassuming ranch made headlines when Aaron Jackson, founder of the nonprofit Planting Peace, purchased it in 2013 and hired a military veteran to paint it the colors of the Pride flag. The catch? The home is situated just across the street from the headquarters of the Westboro Baptist Church, the notorious anti-LGBTQ group. Now, it stands as a colorful contrast to Westboro's ideology. That's what we call house proud. Follow House Beautiful on Instagram . ('You Might Also Like',) 7 Secrets HomeGoods Employees Won't Tell You 19 Closet Organization Ideas You'll Want to Steal Immediately 15 Styling Tricks That Make A Small Living Room Seem Bigger Than It Is |
Possible outcome of Trump-Xi meeting: A truce in trade war
WASHINGTON (AP) — American businesses are bracing for a painful escalation in President Donald Trump's trade war with China. Yet they might just get a reprieve. If history repeats itself — and most analysts are betting it will — Trump and President Xi Jinping will agree to some kind of cease-fire when they meet late this week at a Group of 20 international summit in Osaka, Japan. Indeed, a senior administration official sought to downplay expectations Tuesday by suggesting that the primary goal for the Trump-Xi meeting is simply an agreement to restart negotiations. The official, who spoke on condition of anonymity, said the hard work of finalizing the complex details of any broad new accord would come later, when negotiating teams for the two sides meet. Under the cease-fire scenario, the two sides' existing tariffs and counter-tariffs on many of each other's goods would remain in place. But no additional import taxes would take effect. This would buy time for U.S. and Chinese officials to restart talks that stalled last month after 11 rounds of negotiations. The last time Trump and Xi met — in early December at a G-20 gathering in Buenos Aires, Argentina — they called a truce. That cease-fire injected some new momentum into the talks between the world's two biggest economies. "Ideally, results at this summit could match the last summit in Argentina," said Tu Xinquan, director of the Institute for WTO Studies at the University of International Business and Economics in Beijing. "That is, to prevent the trade war from escalating." The stakes are even higher now. Trump has ordered U.S. Trade Representative Robert Lighthizer to prepare import taxes on $300 billion in Chinese goods — which would extend U.S. tariffs to everything China ships to the United States. The administration has already imposed 25% tariffs on $250 billion in Chinese imports. Beijing has retaliated by taxing $110 billion in goods from the United States. Story continues "What I'm hoping is that two leaders will recommit to fully engage on the trade talks," said Myron Brilliant, head of international affairs at the U.S. Chamber of Commerce, a traditional Republican ally that has been sharply critical of Trump's use of tariffs. "There's too much at stake in the bilateral relationship for the two governments not to try to work out the final parts of the trade agreement." The administration accuses Beijing of using predatory tactics in a pell-mell push to give Chinese companies an unfair competitive edge in such advanced technologies as artificial intelligence and driverless cars. In particular, Trump officials allege that Beijing forces American companies to hand over technology in exchange for access to China's market, unfairly subsidizes Chinese tech companies and sometimes resorts to outright cyber-theft to pilfer U.S. trade secrets. Beijing denies the charges and contends that the administration is simply trying to suppress a rising competitor in global trade. If Trump did expand his tariffs to the final $300 billion in Chinese imports, it would amount to a significant escalation in the U.S.-China trade war. The earlier rounds of U.S. tariffs mostly spared consumers by targeting industrial goods, not everyday staples. Higher taxes on the rest of Chinese imports — from alarm clocks and baby carriages to contact lenses to Christmas ornaments — are "finally going to get into the average guy's pocket. It's all been hidden up to now," said Jeff Moon, a former China hand with the U.S. State Department and the Trade Representative who runs the China Moon Strategies LLC consultancy. When Lighthizer's office ran seven days of hearings this month on the expanded tariffs, the message from American businesses was fairly uniform: Don't do it. Indeed, economists warn that additional higher tariffs — effectively, a tax increase on consumers and companies — would hurt a U.S. economy that already appears to be weakening. Consider Celestron, a telescopes and optics company with 80 employees at its offices in Torrance, California, that moved most of its manufacturing to China years ago. Trump's earlier tariffs hit only about 10% of what Celestron brings in from China. The next round would cover the remaining 90% — and it might force company to lay off manufacturing and assembly workers it still employs in California. "These skilled positions will be imperiled by the proposed tariffs, because the parts and equipment these workers need to do their jobs are sourced in China," Celestron said in a filing with the government. Until last month, the Trump administration and Beijing seemed to be edging toward an agreement to end the trade war. Then Trump officials accused China of backpedaling on commitments it had made in earlier negotiations. The talks stopped. Trump raised tariffs on $200 billion in Chinese imports from 10% to 25% — the sanctions he had suspended after he met with Xi in December — and threatened to tax the $300 billion in Chinese goods he hadn't already hit. A key reason why analysts say the best to expect from the Trump-Xi meeting is an agreement to resume talks is that a substantive deal remains enormously difficult. The Trump side is demanding concessions that would require China to scale back its aspirations as a global technological powerhouse. The differences between the two countries' political and economic systems — America's free-market capitalist economy versus China state-driven Communist model — are so vast that a resolution to the dispute likely would amount to "a pause in a broader conflict over trade and technology," said James Green, a former U.S. trade official in Beijing and now senior adviser at McLarty Associates consultancy. A few months after any deal, Green said, "we will be back talking about this." The administration will insist on a means to enforce any agreement, reflecting its contention that Beijing has violated past promises. It will likely insist on retaining some tariffs as leverage. Yet Beijing will want to eliminate all the U.S. tariffs. "China seems willing to offer Trump many concessions to de-escalate trade tensions," said Eswar Prasad, a Cornell University economist and former head of the China division at the International Monetary Fund. "But it is unlikely to cave in to demands that it change its economic model or industrial strategy. Such actions would go against the grain of Chinese leaders and their vision of China's economic future." The senior Trump administration official suggested that the negotiations could go on for "months and months," noting that both sides have a "long view" about what's in their best interests. "Solutions to the outstanding remaining issues can be found as long as both sides have the political will to do so," said Wendy Cutler, a former U.S. trade negotiator who is now vice president at the Asia Society Policy Institute. "It's not entirely clear if that political will is there." ___ AP writers Kevin Freking in Washington and Joe McDonald in Beijing contributed to this report. ___ Follow Paul Wiseman on Twitter at http://Twitter.com/PaulWisemanAP |
Disney poaches Netflix film executive for streaming service
(Reuters) - Walt Disney Co said on Tuesday it had hired a top executive in Netflix Inc's original film division, Matt Brodlie, to lead international content development for its upcoming family-oriented streaming service called Disney+.
As director of original film at Netflix, Brodlie was responsible for films including "To All the Boys I've Loved Before" and "Ibiza."
He also acquired award-winning movies "Roma" and "Mudbound" for Netflix. "Roma" won three Academy Awards.
In his new role at Disney, Brodlie will determine what content needs to be produced or acquired for Disney+ customers outside of the United States, according to a statement from the company.
In recent years, Netflix had been luring away high-profile executives from rivals and was earlier sued by Twentieth Century Fox Film Corp for poaching employees as it built an audience of nearly 149 million global customers.
Disney unveiled details of Disney+, an ad-free monthly subscription streaming service, in April and priced it at $7 monthly or $70 annually with a slate of new and classic TV shows and movies from some of the most popular entertainment franchises.
Disney+ is set to launch on Nov. 12.
(Reporting by Sayanti Chakraborty in Bengaluru and Lisa Richwine in Los Angeles; Editing by Arun Koyyur and Lisa Shumaker) |
This Custom Ferrari 612 Shooting Brake Is Absolutely Not a Breadvan
Photo credit: ANSHO NL From Car and Driver The famous Drogo-bodied, Bizzarrini-design Ferrari 250 =GT SWB "Breadvan" is a wildly unconventional racing prototype from the 1960s, made to beat Enzo Ferrari's inner circle at its own game. If you wish to have a modern homage to that famous Ferrari, the good news is that England's Niels Van Roij Design-maker of the Tesla Model S wagon and the Range Rover Coupé -is currently working on one . The car you see here, however, is a magnificent two-plus-two grand tourer by Pininfarina, turned into something that can easily make the Ferrari GTC4Lusso look ordinary. Photo credit: Vandenbrink Design The 612 Scaglietti is probably one of the few Ferraris that haven't been converted into a shooting brake for the royals of Brunei by Pininfarina. Sensing an opportunity, Dutch coachbuilder Vandenbrink Design penned its first 612 longroof sketch back in 2008. With the project led by company owner Van den Heuvel, this Ferrari would become the first car they badged as a Vandenbrink, now simply referred to as their Shooting Brake. Photo credit: Vandenbrink Design Vandenbrink doesn't fail to mention "European aristocracy, fox hunts, and baying hounds" in its press release announcing the car. You know, traditional shooting-brake stuff. The release also notes that, given some time, you too can have a bespoke Vandenbrink Shooting Brake. Photo credit: Vandenbrink Design Photo credit: Vandenbrink Design Just make sure to use one of the 199 manual-equipped 612s as your donor car. Then you'll really stand out. ('You Might Also Like',) Unclogging Streets Could Help City Dwellers Save 125 Hours a Year The 10 Cheapest New Cars of 2018 Get Out Early, Get In Late: What to Know About Auto Lease Transfers |
Earn Cash Selling Clothes From Your Closet With These 6 Online Resale Shops
Truth time: My wardrobe embarasses me.
It’s not because I dislike the things I wear — it’s because I haveso many thingsIdon’twear .
Since cleaning out my closet and attemptinga capsule wardrobe experimenta few years ago, I’ve unfortunately regressed to my old ways — and by “old ways,” I mean my closet is overflowing with things I just don’t wear often enough. In fact, I would guess that at this point, about 60% of my wardrobe is simply taking up space.
But I’m ready to simplify again, and, in the process, I’m hoping to make a little extra money.
So, I’m heading to the internet (because my local consignment shops are — shall we say —choosy) and selling my clothes in an effort to earn back some of the money I’ve carelessly funneled right into my closet (again).
These are the sites I’ll use to try and make a few extra bucks as I clear out my wardrobe.
Poshmark touts itself as a “fun and simple way to buy and sell fashion.” And while “fun” may be an accurate descriptor, “simple” really isn’t — but that’s not necessarily a bad thing.
You see, Poshmark is more than just an online platform for selling clothes — it’s a “social marketplace.” Rather than being a place where sellers can list an item, hope it sells and move along, Poshmark is powered by buyers and sellers who share fashion ideas and styling tips, browse each others’ “closets” and generally connect over clothing and fashion.
What Poshmark isn’t? A set-it-and-forget-it type of site.
In order tomake sales on Poshmark, you need to upload quality photos, write thorough descriptions, offer style guidance, “attend” buying and selling events within the app, share and promote listings and interact with other users.
Some successful Poshmark users recommend investing in nice packaging or thank you cards to keep your ratings up and your listings more visible.
Buyers are allowed to negotiate prices, but you can choose to decline or accept an offer. For sales under $15, Poshmark takes a flat commission fee of $2.95. For sales of $15 or more, you’ll keep 80% of the profit. Once a sale is made, Poshmark will provide you with a pre-paid, pre-addressed shipping label.
All in all, Poshmark is a good option for anyone who’s willing to do a little (virtual) legwork.
ThredUP is an online consignment and second-hand shop focusing on brand-name clothing for women and children — and it couldn’t be easier to use.
If Poshmark is the most involved clothing selling site on the market, thredUP might just be the least. Sure, your return may not be quite as big as if you steamed, photographed and listed each piece individually all while liking, commenting and sharing other people’s items, but for the lazy among us, thredUP couldn’t be more convenient.
Debra Wallace, the woman behind the blog Zero, also notes the small return as a con of selling on thredUP. “Used clothing is not worth much,” she writes. “So if you’re looking to make more money, you’ll have to put in more effort” using other sites or brick-and-mortar stores.
For anyone who’s still on board, thredUP’s process is pretty simple: Go to the “Clean Out” tab on thredUP’s website and select “Order a Kit.” You can then choose whether you’d like to receive a standard clean out bag or an expedited one. (There’s also an option to just donate a bag of clothing, if you’d prefer to do that.) ThredUP will then send you a bag that you’ll fill with clothes, seal up and return for free with a prepaid shipping label.
ThredUP will then sort through your clothes, list the keepers on the site and, depending on which clean out option you chose, either recycle or return the unwanted items to you.
Depending on whether your items are highly trendy and in season or have a little more longevity to them, thredUP will determine whether to give you the money up front or when the item sells on consignment. Once your payout becomes available, you have to cash out via PayPal.
Swap.com is similar to thredUP in a lot of ways, except it also accepts and sells men’s clothes and even kids’ toys and a few household items.
To sell your unwanted clothing on Swap.com, you can either request an “inbound box” or simply print a prepaid shipping label to use for sending in your items. Once the company receives your items, it will price them, upload them to the site and send you your payout after your items sell.
Similar to thredUP, any items not accepted for resale will either be sent back to you or donated, depending on which option you choose.
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If you’re an avid Instagram user, you’ve probably stumbled across more than one person selling their “closet” on the popular app. And while it’s a clunky interface for buying and selling (sales are done through the comments under photos and via direct messages), the return is pretty good because no commissions or fees are shaved off the top.
Still, selling your clothing on Instagram will take a bit of legwork on your part. You’ll have to know how to work the system (lucky you, we havesome tipsright here!), and you’ll have to go through the trouble of steaming (it helps), photographing and listing each piece individually. You’ll also have to be totally in charge of collecting payments and shipping the items.
All in all, though, it’s a great option for those who are willing to go the extra mile to make the extra dollar.
If you want to sell your clothes on a platform that’s just a little bit more seller friendly, (but still notquiteas involved as Poshmark) Tradesy is the way to go. Tradesy says it deals primarily in designer and luxury items, but technically you can sell any brand from Xhilaration for Target to Gucci — and any item from purses to wedding gear.
To sell on Tradesy, all you have to do is take a few photos of an item (Tradesy will even do a little editing for you to make it look better), add a description and input a price. (Again, Tradesy is pretty helpful and will suggest a selling price if you’re at a loss.) When an item sells, you can use one of Tradesy’s complimentary shipping kits to ship the item at no cost.
Tradesy’s flat commission fee is a little steep: The company takes $7.50 ofanyitem sold for under $50. If an item sells for $50 or more, Tradesy takes 19.8%.
The process is a little more involved than just loading up a bag and sending it off in the mail, but with a little bit of work, your payout can be pretty good — as long as you’re selling at the right price point.
You thought we were going to leave eBay off this list for a second there, didn’t you?
But we couldn’t do that!
Even though it’s been around for quite some time (and sometimes has a reputation for being unwieldy or a little outdated), eBay is still a valid option when you’re selling clothing — especially when you’re looking to make a few bucks on something that isn’t necessarily a fancy name brand.
The selling process on eBay is pretty straightforward: Simply take a few photos of the item, list item details, decide between an auction-style or “buy it now” sale and wait.
Once an item sells, you’re in charge of packing and shipping it, although eBay allows you to create and print shipping labels on the platform to make the process simpler.
The fee structure is pretty seller-friendly, too. Listing or “insertion” fees are free for your first 50 listings per month. Find out more about insertion fees here.
After an item sells, eBay will take a “final value fee,” or a percentage of the total amount of the sale (which includes the listing price, shipping fee and any additional charges).
If you need more help getting started selling on eBay, check out thesetips and tricksfor becoming a master eBay seller. Who knows, you might evenmake a business out of it!
Grace Schweizer is the email content writer at The Penny Hoarder.
This was originally published onThe Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. |
Dallas-bound flight makes safe emergency landing in Reno
RENO, Nev. (AP) — An American Airlines flight heading to Dallas-Fort Worth returned to Reno shortly after takeoff and made a safe emergency landing after issues with the landing gear and a tire. American Airlines says Flight 1266 took off from Reno-Tahoe International Airport around 1 a.m. Tuesday and circled the airport for about an hour to burn off fuel before landing safely about 2:30 a.m. No injuries were reported on the plane carrying 169 passengers and crew members. Airport spokesman Brian Kulpin tells the Reno Gazette Journal that the Boeing 737-800 reported it had "blown a tire" and had an issue with the landing gear. He says some runways had been closed briefly but have reopened and airport operations are back to normal. |
White House says Kellyanne Conway won't testify at House hearing on Hatch Act violations
WASHINGTON – President Donald Trump's counselor Kellyanne Conway will not testify at a House Oversight and Reform Committee hearing on allegations she violated the Hatch Act, the White House informed the committee on Monday. "In accordance with long-standing precedent, we respectfully decline the invitation to make Mrs. Conway available for testimony before the Committee," White House counsel Pat Cipollone said in a letter to Chairman Elijah Cummings, D-Md. The refusal sets up another battle between the executive and legislative branches of government. Since Democrats took control of the House in January, several current and former members of the Trump administration have refused to testify or comply with subpoenas in the various House committee investigations. Those committees have responded with threats of contempt and legal action. The Oversight committee said in a memorandum last week that if Conway does not appear at the hearing, which is scheduled for Wednesday, Cummings will subpoena her. Cummings told CNN on Monday that Conway would be held in contempt if she refused to comply with the subpoena. Conway: All the times Kellyanne Conway ran afoul of a federal watchdog over the Hatch Act "We cannot have people disobeying the law. The president is not above the law and nor is Ms. Conway above the law," Cummings said, according to CNN. The Hatch Act is a 1939 law that restricts federal employees' engagement in specific partisan political activities, with the aim of preventing members of the executive branch from interfering in elections. This month, the Office of Special Counsel found that Conway was a "repeat offender" who had committed "egregious, notorious and ongoing" Hatch Act violations by disparaging Democratic presidential candidates . The Office of Special Counsel recommended the president fire her. Trump said he would not . 'Egregious, notorious and ongoing': Watchdog agency urges firing of Kellyanne Conway over political remarks Story continues Ethics chief: Conway likely broke rules with 'go buy Ivanka's stuff' remarks The Office of Special Counsel – which is not connected to Robert Mueller's investigation into Russian election interference – said that Conway's "persistent, notorious and deliberate Hatch Act violations have created an unprecedented challenge to this office’s ability to enforce the Act, as we are statutorily charged." Trump ignored the recommendation and said during an interview on "Fox & Friends" that "they’re trying to take away her right of free speech and that's just not fair." "No, I’m not going to fire her. I think she’s a terrific person," Trump said. "She’s been loyal." When asked about Cummings' threat of a subpoena during a "Fox & Friends" interview on Monday, Conway argued that it's not clear "that the Hatch Act applies to assistants to the president" and contested the assertion that she had spoken out against Democratic candidates. Trump won't fire Kellyanne Conway: President defends counselor's words as 'free speech' "If I'm quoting what some of the candidates say about the other candidates, I'm just repeating the news to you as I read it that day," she said. "They want to put a big roll of masking tape over my mouth," because she is an effective campaigner for Trump, she said. "This is my First Amendment right. So they want to chill free speech because they don't know how to beat him at the ballot box." 'That will not stand': Democrats plan next steps after ex-Trump aide Hope Hicks didn't answer key questions Poll: Most Americans want Trump to comply with House subpoenas. But impeach him? Not so fast More: House panel votes contempt for Attorney General William Barr and Commerce Secretary Wilbur Ross This article originally appeared on USA TODAY: White House says Kellyanne Conway won't testify at House hearing on Hatch Act violations |
Stocks decline, Powell points to economic risks
U.S. stocks slipped and safe haven assets rose as investors digested commentary from Federal Reserve Chair Jerome Powell Tuesday afternoon.
The S&P 500 (^GSPC) dropped 0.95%, or 27.9 points, as of market close. The Dow (^DJI) fell 0.67%, or 179.05 points, while the Nasdaq (^IXIC) declined 1.51%, or 120.98 points.
Five Fed speakers were on the docket to give public remarks Tuesday, with Fed Chair Jerome Powell’s speech on the economic outlook and monetary policy in New York at 1 p.m. serving as a focal point for investors.
In his commentary, Powell emphasized that he and his colleagues were closely monitoring the economic outlook to determine the best course of action for future monetary policy, and reiterated that the Fed would “act as appropriate to sustain the expansion.” He noted the increase to risks since the start of the year, including the threat of further tariffs and data on slowing global growth.
“Against the backdrop of heightened uncertainties, the baseline outlook of my FOMC colleagues, like that of many other forecasters, remains favorable, with unemployment remaining near historic lows,” Powellsaid in prepared remarks. “Inflation is expected to return to 2 percent over time, but at a somewhat slower pace than we foresaw earlier in the year. However, the risks to this favorable baseline outlook appear to have grown.”
This speech came after President Donald Trump on Mondayrenewed his attackson Fed officials, likening them to“a stubborn child”for holding rates steady after last week’s meeting. He suggested that the Fed needed to cut rates “to make up for what other countries are doing against us,” after global central banks loosened their own monetary policy throughout June.
Powell on Tuesdayunderscored the independenceof the central bank from political sway in guiding monetary policy.
Markets priced in a 100% probability of a rate cut after the Fed’s July meeting as of Tuesday afternoon, according toCME Group’s FedWatch tool.This comprised a 5.7% probability of a 25 basis point cut, and a 34.3% probability of a 50 basis point cut.
However, St. Louis Fed President James Bullardtold Bloomberg TelevisionTuesday afternoon that he thought a 50 basis point cut “would be overdone.”
Long-term Treasuries were bid up amid the expectations for a near-term cut to interest rates, with the yield on the 10-year Treasury note breaking below 2% Tuesday afternoon. Other safe haven assets also rose, with the Japanese yen (JPYUSD=X) climbing to its strongest level against the U.S. dollar since January. Gold prices (GC=F) pulled back from six-year highs.
Crude oil prices (CL=F,BZ=F)wavered after Trump on Mondayimposed sanctionson Iran’s supreme leader, Ayatollah Ali Khamenei and several other military commanders, escalating tensions with one of the world’s largest crude exporters.
Market participants are awaiting results from the next meeting of the Organization of the Petroleum Exporting Countries and associated oil producers, which is set to take place July 1-2 in Vienna, Austria. According to CME Group, markets priced in a more than 68% probability of further output cuts amid signals of a slowing global economy and dampened demand for oil.
AbbVie (ABBV) announced it will acquire botox-maker Allergan (AGN) in a cash-and-stock deal with an equity value of about $63 billion,according to a statement.Thetransactionmarks the second largest in the pharmaceutical space this year, after Bristol-Myers Squibb’s $74 billion proposed acquisition of Celgene. Abbvie will pay Allergan shareholders a total of $188.24 per share, representing a 45% premium above Allergan’s closing price Monday. Abbvie said it is expecting the deal will result in at least $2 billion in annual pretax synergies and cost reductions by year three of the acquisition.
Homebuilder Lennar (LEN) topped consensus expectationsin fiscal second-quarter results, citing a recovering housing market as cause for the outperformance. The company delivered adjusted earnings of $1.30 per share on revenue of $5.56 billion, versus consensus estimates for $1.14 per share on sales of $5.1 billion. The company said lower rates, combined with its own incentives, have helped keep the company on track to deliver more than 50,000 homes in 2019.
“The well-documented market pause in the second half of 2018 set the stage for more moderate home price increases and lower interest rates which stimulated both affordability and demand, leading homebuyers back to the market,” Lennar executive chairman Stuart Millersaid in a statement.
Consumer confidence dropped to the lowest levelsince September 2017 in June, according to theConference Board’s monthly index. The headline Consumer Confidence index fell to 121.5 in June, dropping from a downwardly revised reading of 131.3 in May and snapping three consecutive months of improvements. Indices tracking consumers’ assessments of current and future business conditions also sharply declined in June, amid “an escalation in trade and tariff tensions” earlier this month, the Conference Board said.
The pace of home price increases deceleratedfor a 13th consecutive month in April, according to Standard and Poor’s. TheS&P CoreLogic Case-Shillerhome price index registered a 3.5% annual increase in April, down from 3.7% in March but about in-line with consensus expectations, according to Bloomberg data. The 20-City Composite posted a 2.5% year-over-year gain, down from 2.6% in the month prior and marking the slowest pace since August 2012.
Separately, new-home sales unexpectedly declined in Mayto a seasonally adjusted annual rate of 626,000, according to theU.S. Census Bureau. This was 7.8% below April’s upwardly revised rate of 679,000, and 8.5% below consensus expectations for June’s reading, according to Bloomberg-compiled estimates.
—
Emily McCormick is a reporter for Yahoo Finance.Follow her on Twitter: @emily_mcck
Read more from Emily:
• Don’t say ‘IPO’: What to know about Slack’s direct listing
• Buffett on the American economy, capitalism: ‘It works’
• Tech companies like Lyft want your money – not ‘your opinion’
• Levi Strauss shares jump more than 30% above IPO price at open
• Facebook sued by Trump administration for alleged ‘discriminatory’ ad practices
• Boeing 737 Max groundings ‘pressure’ U.S. economic data: Wells Fargo
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Report: Mavs to offer Kristaps Porzingis a full max contract
The Dallas Mavericks are expected to offer Kristaps Porzingis a maximum contract, according to The Athletic’s Shams Charania . This despite an ACL tear that kept him out all of this past season and a rape accusation that followed him from New York. The Mavericks will reportedly meet with Porzingis and offer him a five-year, $158 million contract as soon as free agency opens at 6 p.m. ET on June 30. The 7-foot-3 Latvian is a restricted free agent who could command a four-year, $117 million max deal on the open market. The Mavericks could match any offer, but offering him the five-year max at the start of free agency would demonstrate a serious commitment. Porzingis has not played since Feb. 6, 2018, when he tore his left ACL in a game against the Milwaukee Bucks. He was the 22-year-old face of the New York Knicks at the time — an All-Star, fringe MVP candidate and NBA “ unicorn ” — stretching the floor on offense (39.5 percent on nearly five 3-point attempts per game) and shrinking it on defense (opponents shot 48.7 percent inside of 6 feet opposite him). Soon after the Knicks granted his request for a trade, sending him to the Mavericks for Dennis Smith Jr., two first-round picks and expiring contracts, ESPN obtained an alleged hush-money contract and text messages between Porzingis and a woman accusing him of rape, along with emails between the Knicks and his alleged victim. The New York Police Department confirmed an investigation into the matter. There was some confusion as to what was disclosed before the trade. A report suggesting the Knicks made the allegation known conflicted with the Mavs saying they were informed only of an extortion attempt. Charania’s latest seems to reflect a level of confidence in Dallas that Porzingis will not be found guilty in New York. An injured Kristaps Porzingis often roamed the sidelines for the Dallas Mavericks. (Getty Images) His brief tenure in Dallas was also marked by controversy. When video emerged of a bloodied Porzingis outside a nightclub in his hometown of Liepaja, the Mavericks issued a statement saying, “It is our understanding that Kristaps was jumped and assaulted.” Porzingis could also be seen shoving a woman in the post-fight chaos. Story continues The Mavs reportedly investigated the incident and cleared Porzingis of any wrongdoing, with a Dallas Morning News source calling the alleged altercation with Russian gangsters a case of being “ in the wrong place at the wrong time .” With reigning Rookie of the Year Luka Doncic on the roster, a max offer to Porzingis would mean the Mavericks are intent on building a future contender around a pair of the most promising European players of their generation, whatever the cost. – – – – – – – Ben Rohrbach is a staff writer for Yahoo Sports. Have a tip? Email him at rohrbach_ben@yahoo.com or follow him on Twitter! Follow @brohrbach More from Yahoo Sports: Trump disagrees with Rapinoe not singing the anthem Bucks superstar Antetokounmpo named MVP over Harden Why an emerging receiver can boost the Cowboys’ offense How winning ugly could be a good thing for the USWNT |
Sealed Air (SEE) Commences Investigation Upon SEC's Orders
Sealed Air CorporationSEE recently commenced an internal investigation upon receiving two separate orders from the Securities Exchange Commission (SEC). The company’s disclosures, financial reporting, selection of audit firm and its independence are currently under SEC’s investigation.On Jun 20, Sealed Air terminated its CFO following the completion of an internal review by the audit committee.
In response to the news, Sealed Air’s shares dropped significantly by 5% during the Jun 21 trading session. Sealed Air’s shares has declined around 2.2% as against the industry’s growth of 3.3% over the past year.
Block & Leviton LLP, a securities litigation firm, which represents many of the country’s largest institutional investors and numerous individuals in securities litigation nationwide, is investigating whether or not Sealed Air and certain of its executives violated federal securities laws.Along with Block & Leviton, Kehoe Law Firm, P.C., The Schall Law firm, Glancy Prongay & Murray LLP and Kirby Mclnerney LLP are investigating claims against Sealed Air on behalf of its investors.Last December, Sealed Air announced a reformation plan — Reinvent SEE Strategy — along with a fresh restructuring program, in a bid to drive growth and earnings. The strategy is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer-service enhancements.
It is projected to drive total annualized savings in the $215-$235 million range by the end of 2021. The company is also likely to benefit from the growing demand in fresh food and e-commerce markets, and acquisitions, over the long run.
Sealed Air Corporation Price and Consensus
Sealed Air Corporation price-consensus-chart | Sealed Air Corporation Quote
Zacks Rank & Stocks to ConsiderSealed Air currently carries a Zacks Rank #3 (Hold).A few better-ranked stocks in the Industrial Products sector are The Timken Company TKR, Roper Technologies, Inc. ROP and Harsco Corp. HSC, each sporting a Zacks Rank #1 (Strong Buy), at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.Timken Company has an estimated earnings growth rate of 26.5% for the ongoing year. The company’s shares have gained 15.1%, in the past year.Roper Technologies has an expected earnings growth rate of 9.4% for the current year. The stock has appreciated 34.4% in a year’s time.Harsco has a projected earnings growth rate of 9.1% for 2019. The company’s shares have rallied 9.7%, over the past 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 reportSealed Air Corporation (SEE) : Free Stock Analysis ReportRoper Technologies, Inc. (ROP) : Free Stock Analysis ReportTimken Company (The) (TKR) : Free Stock Analysis ReportHarsco Corporation (HSC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
JP Morgan Chase CEO Jamie Dimon: Student loans are 'hurting America'
JP Morgan ChaseCEOJamie Dimon said this week universities “should feel more responsibility” for their students’ loans and called student lending in the U.S. “a disgrace.”
Dimon made the comments inan interview with Yahoo FinanceTuesday, claiming the government has “irresponsibly” lent more than $1 trillion since 2010 — a move, he says, has been "hurting America." As of Q1 2019, student loan debt has hit $1.6 trillion, according toFederal Reserve data.
“I there an issue with student debt? There is, but you’ve got to stop the creation of bad debt,” Dimon told Yahoo.
Meanwhile, Sen. Bernie Sanders, I-Vt., unveiled a plan this week tocancel all student debtand add taxes for stock, bond and derivatives trades.
Dimon said ataxon financial transactions as proposed by the 2020 presidential hopeful would be paid by investors, according to the report. Also, universities should ensure better graduation rates so their students get good jobs, Dimon said.
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“I think they should look at all parts of student lending, fix the broken parts and then forgive those people who need forgiveness,” Dimon told Yahoo. “Then help people get into school and make sure schools are responsible for getting the kids out.”
People with student debt may be feeling that way as well. More college graduates said theyregret their loansmore than anything else from their education, according to a recent survey.
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We Finally Know Queen Elizabeth's Favorite Grandchild & It's Not William or Harry
Click here to read the full article. It’s not every day you get insight into the royal family when it doesn’t concern princes William or Harry or their families. But that day has come because a new report from The Sun is enlightening the world on why Queen Elizabeth prefers Zara and Mike Tindall over Kate Middleton and Prince William — or any of her other grandchildren, for that matter.. Who knew the queen played favorites? As Reported by The Sun, Ingrid Seward, Editor-in-Chief of Majesty Magazine, told Fabulous Digital recently that Queen Elizabeth genuinely loves hanging out with her eldest granddaughter, Zara Tindall. Now, the Tindalls aren’t in the news as frequently as their royal relatives, so you’d be forgiven for not immediately knowing who they are. Here are the basics: Tindall is the daughter of Princess Anne, Queen Elizabeth ’s daughter, and Mark Phillips. In 2011, Zara married ex-rugby player Mike Tindall and the couple went on to have two daughters, Mia Grace, 5, and Lena Elizabeth, 1. Related stories Why Kate Middleton Can't Travel with Her Husband & Son at the Same Time Queen Elizabeth Passed Down to Kate Middleton a Gift She's Kept for Almost 70 Years There's a Special Reason Chris Pratt & Katherine Schwarzenegger Chose This Honeymoon Location Per Seward, Elizabeth likes that the Tindalls are “normal” and that neither of the Tindalls are “intellectuals” — which might sound like a vicious neg but really it’s more that the Tindalls are approachable, unaffected and not at all selfish with their position in life. Seward elaborated to Fabulous Digital: “The Queen has always adored Zara and is so proud of her riding success.” Notably, the Tindalls lead drama-free lives — which is definitely not the case with William, Kate, Harry or Meghan, Duchess of Sussex. The royal quartet have had an eventful couple of months, with William and Kate weathering cheating rumors , Harry and Meghan fending off her fame-seeking relatives, William and Harry quietly feuding, and both couples parting ways on their joint charity. Seward notes that the Tindalls “are certainly light relief [for Elizabeth]. She can be herself around them and she does not care for the alleged feuding among William and Harry.” Story continues While it’s not entirely clear just how often the Tindalls visit with the queen or what they do during every visit, it’s nice to know she’s able to see all of her grandchildren and great-grandchildren and form close bonds with them. Sign up for SheKnows' Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Should Incitec Pivot Limited’s (ASX:IPL) Weak Investment Returns Worry You?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we'll evaluate Incitec Pivot Limited (ASX:IPL) to determine whether it could have potential as an investment idea. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business.
Firstly, we'll go over how we calculate ROCE. Then we'll compare its ROCE to similar companies. And finally, we'll look at how its current liabilities are impacting its ROCE.
ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. All else being equal, a better business will have a higher ROCE. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'.
The formula for calculating the return on capital employed is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Incitec Pivot:
0.06 = AU$394m ÷ (AU$8.9b - AU$2.4b) (Based on the trailing twelve months to March 2019.)
Therefore,Incitec Pivot has an ROCE of 6.0%.
See our latest analysis for Incitec Pivot
When making comparisons between similar businesses, investors may find ROCE useful. Using our data, Incitec Pivot's ROCE appears to be significantly below the 17% average in the Chemicals industry. This could be seen as a negative, as it suggests some competitors may be employing their capital more efficiently. Aside from the industry comparison, Incitec Pivot's ROCE is mediocre in absolute terms, considering the risk of investing in stocks versus the safety of a bank account. Readers may find more attractive investment prospects elsewhere.
When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is only a point-in-time measure. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company.
Current liabilities are short term bills and invoices that need to be paid in 12 months or less. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets.
Incitec Pivot has total assets of AU$8.9b and current liabilities of AU$2.4b. Therefore its current liabilities are equivalent to approximately 27% of its total assets. It is good to see a restrained amount of current liabilities, as this limits the effect on ROCE.
With that in mind, we're not overly impressed with Incitec Pivot's ROCE, so it may not be the most appealing prospect. 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.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
U.S. launches criminal probe into alleged chicken price fixing by Tyson, rivals
(Reuters) - The U.S. Department of Justice has begun a criminal probe into allegations that Tyson Foods Inc and other poultry processors including Pilgrim's Pride Corp and Sanderson Farms Inc colluded to fix poultry prices, court documents show.
The DOJ filed a motion to intervene and stay discovery of evidence in an antitrust lawsuit involving the companies and has convened a grand jury to investigate, according to a court filing from Friday.
Shares of Tyson, Pilgrim's Pride and Sanderson Farms fell in late afternoon trading.
U.S. food distributors have filed lawsuits against Tyson and other poultry processors, alleging that the companies had colluded since 2008 to reduce output and manipulate prices.
"The civil plaintiffs' claims as to Sanderson Farms are wholly without merit, and we are committed to defending the case vigorously," Sanderson Farms said, adding it has not been subpoenaed in connection with the DOJ investigation.
Pilgrim's Pride Corp, which is mostly owned by Brazilian meat packer JBS SA, said it did not fix prices.
"Pilgrim's strongly denies any allegations of anti-competitive conduct," spokesman Cameron Bruett said. "The company welcomes the opportunity to defend itself against these claims through the legal process."
Tyson, which has previously denied the allegations, did not immediately respond to a request for comment.
(Reporting by Uday Sampath in Bengaluru) |
Micron resumes some chip shipments to Huawei, boosting stock
By Sayanti Chakraborty and Stephen Nellis (Reuters) - Memory-chip maker Micron Technology Inc said it had resumed some shipments to China's Huawei Technologies Co Ltd and still expected demand for its chips to recover later this year, sending its shares 10% late on Tuesday. Micron Chief Executive Sanjay Mehrotra said the Idaho-based maker of chips for smartphones and other devices resumed shipping some chips in the past two weeks after it reviewed the U.S. ban on selling products to the China-based telecommunications company. "We determined that we could lawfully resume shipping a subset of current products because they are not subject to export administration regulations and entity list restrictions," Mehrotra said on a conference call with investors. "However, there is considerable ongoing uncertainty surrounding the Huawei situation, and we are unable to predict the volumes or time periods over which we will be able to ship products to Huawei," he added. Micron and other chipmakers suspended shipments to Huawei after the U.S. government on May 15 added the world's biggest telecoms equipment maker and 68 affiliates to an "Entity List", banning it from acquiring components and technology from U.S. firms without government approval. The sanctions apply to goods that have 25% or more of U.S.-originated technology or materials and likely leave room for global suppliers, but many companies stopped shipments while they studied which components fell outside export control regulations. The New York Times on Tuesday reported, citing sources, that Intel Corp had also resumed shipping some products to Huawei. Intel declined to comment. Micron on Tuesday beat analysts' estimates for quarterly revenue and profit for the fiscal third quarter ended on May 30. While the ban is expected to cost Huawei $30 billion in revenue this year, the company is still able to sell phones with stockpiled components - which some analysts say can last for another year. Story continues Huawei said it had shipped 100 million smartphones this year as of May 30. 'ENTITY LIST' IMPACT Mehrotra noted that Huawei was Micron's No. 1 customer and that the ban cost the company as much as $200 million in missed sales during the third quarter. "Although the market is weak right now, fears have been overdone," Mark Newman, an analyst with Bernstein, told Reuters. Micron had found ways to take advantage of a provision on labeling American-made goods to bypass the ban, the New York Times said. The Semiconductor Industry Association, which is backed by Intel and Micron, said some chips did not fall under the U.S. government sales ban. "As we have discussed with the U.S. government, it is now clear some items may be supplied to Huawei consistent with the Entity List and applicable regulations," the association said. "Each company is impacted differently based on their specific products and supply chains, and each company must evaluate how best to conduct its business and remain in compliance." In an interview, Mehrotra told Reuters that Micron did not work with other chipmakers or the U.S. government to conclude some chips could be shipped to Huawei, but rather had its own lawyers, as well as external attorneys, review publicly available regulations. "Micron independently came to its determination that certain of our products were OK to ship," Mehrotra said. SUPPLY GLUT Stocks in chipmakers have fallen in recent months as demand for smartphones has declined and prices for DRAM and NAND memory chips sank due to oversupply, adding to concerns that a two-year-long semiconductor upswing was coming to a halt. To soften the blow, Micron reduced its output to prop up prices and has invested more in its next generation of chips. The company said on Tuesday it would cut output by as much as 10% to help bring its supply in line with demand. But Micron executives said they expected demand for its chips to recover in the second half of 2019. The company estimated fiscal fourth-quarter revenue largely in line with analysts' estimates. The company further clamped down on capital expenditures, a closely-watched metric in the cash-intensive chipmaking business. Micron said that fiscal 2020's capital expenditures would be less than the $9 billion it expected to spend in fiscal 2019, well below its initial plans to spend $10.5 billion. Quarterly revenue fell to $4.79 billion from $7.80 billion, beating analysts' estimates of $4.69 billion, according to I/B/E/S data from Refinitiv. On an adjusted basis, the company earned $1.05 per share. Analysts were expecting a profit of 79 cents per share. (Reporting by Sayanti Chakraborty in Bengaluru and Stephen Nellis in San Francisco; Additional reporting by Sayantani Ghosh in Singapore; Editing by G Crosse and Stephen Coates) |
Facebook gets Brazil fine for withholding WhatsApp data reduced to $6 mln
SAO PAULO, June 25 (Reuters) - Facebook Inc's fine for withholding WhatsApp messaging from a drug-trafficking investigation in Brazil should be reduced to 23 million reais ($6 million), a Brazilian federal appeals court said on Tuesday.
The decision overturned a fine of around 2.035 billion reais ($528 million) imposed in June 2017, which was deemed disproportionate by the federal appeals court in a trial last Wednesday.
Facebook did not immediately respond to a request for comment.
The world's largest social network has been struggling with legal troubles in Brazil in the last few years.
In 2016, a senior Facebook executive was kept in a Brazilian jail for nearly 24 hours in what the company considered "an extreme and disproportionate measure" resulting from a dispute over a court's demand that the company provide data from its WhatsApp service.
The messaging app also became the frontline in Brazil's bitter presidential race last year, after newspaper Folha de S.Paulo had reported that supporters of far-right candidate and eventual victor Jair Bolsonaro had funded mass messaging attacks against leftist rival Fernando Haddad. ($1 = 3.8550 reais) (Reporting by Gabriela Mello; Editing by Lisa Shumaker) |
Sandstorm Gold Royalties Provides Asset and Corporate Update
VANCOUVER, BC / ACCESSWIRE / June 25, 2019 /Sandstorm Gold Ltd. ("Sandstorm Gold Royalties", "Sandstorm" or the "Company") (NYSE American: SAND, TSX: SSL) is pleased to provide an update related to share repurchases under the Company's Normal Course Issuer Bid ("NCIB"), monetization of non-core equity investments, and recent developments from the Company's royalty portfolio.
Share Buyback Program
During the fourth quarter of 2018, Sandstorm announced a share buyback program to purchase up to 18.3 million of the Company's common shares. Since the announcement, Sandstorm has purchased approximately 7.9 million shares of the Company.
For more information regarding Sandstorm's NCIB, see Sandstorm's press releases dated November 15, 2018 and April 2, 2019 atwww.sandstormgold.comor on Sandstorm's Sedar profile atwww.sedar.com.
The actual number of common shares that may be purchased and the timing of such purchases will be determined by the Company. Decisions regarding purchases will be based on market conditions, share price, best use of available cash, and other factors. Any securities acquired under the NCIB will be cancelled.
Sandstorm Monetizes Non-Core Equity INvestments
Sandstorm recently sold approximately US$17 million of its equity investments, representing a continuation of the Company's strategy to monetize non-core assets. Proceeds from the sale were largely used to pay down debt drawn on the Company's revolving credit facility.
Hod Maden Progress Update
Lidya Madencilik Sanayi ve Ticaret A.S. ("Lidya"), the majority owner and operator of the Hod Maden project in Turkey, has been steadily advancing the project during 2019. A gap analysis and trade-off studies on Hod Maden were completed during the first quarter of 2019 which will contribute to the Feasibility Study work, which began during the second quarter of 2019. The Feasibility Study contract was awarded to GR Engineering Services and AMC Consultants.
In conjunction with the Feasibility Study, an Environmental Impact Assessment has been submitted and a public participation meeting was successfully conducted as part of the permitting process.
The Feasibility Study is expected to be completed in the second quarter of 2020, with first production projected for the fourth quarter of 2022.
Sandstorm has a 30% net profits interest and a 2.0% net smelter returns ("NSR") royalty on the Hod Maden project.
Aurizona Pours First Gold in May 2019
Equinox Gold Corp. ("Equinox Gold") announced on May 14, 2019 that the first gold pour took place at the Aurizona Gold Mine in Brazil. Equinox Gold also announced the receipt of the License to Operate permit, the final operating permit required from the Maranhão State Environmental Agency. The Aurizona Gold Mine is expected to reach commercial production around the end of the second quarter of 2019.
For more information, visit the Equinox Gold website atwww.equinoxgold.comand see the press release dated May 14, 2019. Sandstorm has a 3.0% - 5.0% sliding scale NSR royalty on the Aurizona project. At gold prices less than or equal to US$1,500 per ounce, the royalty is a 3.0% NSR. In addition, Sandstorm holds a 2.0% NSR royalty on the Aurizona Greenfields property, a package of exploration ground adjacent to the Aurizona project.
Erdene Intersects 112.0 metres of 5.9 g/t Gold
Erdene Resource Development Corp. ("Erdene") announced results from their ongoing 2019 drill program at the Khundii Gold Project located in Mongolia. An 1,800 metre drill program was conducted in April 2019 to increase confidence in the existing resource, confirm gold grades, and expand Bayan Khundii mineralization. The results will be incorporated into the recently launched Pre-Feasibility Study and used in planning the next phase of the 2019 exploration drill program.
Highlights from the April drill program include:
Midfield Zone
• BKD-261: 112.0 metres of 5.9 grams per tonne ("g/t") gold from 13.0 metres; and
• BKD-262: 14.0 metres of 14.1 g/t gold from 9.0 metres.
North Midfield
• BKD-260: 23.3 metres of 4.4 g/t gold from 97.6 metres; and
• BKD-259: 2.0 metres of 39.0 g/t gold from 202.0 metres.
Striker west
• BKD-265: 16.0 metres of 1.1 g/t gold from 28.0 metres and 3.0 metres of 40.0 g/t gold from 142.0 metres.
For more information and full drill results, visit the Erdene website atwww.erdene.comand see the press release dated May 13, 2019. Sandstorm has a 1.0% NSR royalty on Erdene's Bayan Khundii and Altan Nar properties.
Kinross Completes Scoping Study on Lobo-Marte
Kinross Gold Corporation ("Kinross") announced that they have completed a Scoping Study on the Lobo-Marte project in Chile. The Scoping Study estimates a mine life that could extend more than 10 years, with total life of mine production of approximately 4.1 million gold ounces at a grade of 1.2 g/t gold. Kinross is now progressing to a Pre-Feasibility study with permitting efforts also underway. The Pre-Feasibility study is expected to be completed by mid-2020.
For more information, visit the Kinross website atwww.kinross.comand see the press release dated May 7, 2019. Sandstorm has a 1.05% NSR royalty on the Lobo-Marte project.
Bonterra Intersects 12.8 g/t gold over 5.6 metres at moroy
Bonterra Resources Inc. ("Bonterra") announced results from their ongoing drill program at the Gladiator, Barry and Moroy deposits located in Quebec, Canada. Bonterra currently has five drills operating at the properties, which are testing a combination of resource expansion and earlier stage exploration targets.
Highlighted drill results include:
Barry
• MB-19-209: 4.2 metres of 5.1 g/t gold from 206.7 metres; and
• MB-19-211: 1.5 metres of 6.3 g/t gold from 453.7 metres.
Moroy
• MY-19-155: 5.6 metres of 12.8 g/t gold from 256.3 metres; and
• MY-19-158: 5.4 metres of 12.2 g/t gold from 70.5 metres.
For more information and complete drill results, visit the Bonterra website atwww.bonterraresources.comand see the press release dated June 12, 2019.
Sandstorm receives a minimum of 1,500 ounces of gold per quarter from Bachelor Lake until 12,000 ounces of gold have been delivered. The gold stream will then convert to a 3.9% NSR royalty. In addition to this, Sandstorm holds a 1.0% NSR royalty on Bachelor Lake. When combined with Sandstorm's existing royalties, the Company will then hold a total 4.9% NSR on Bachelor Lake/Moroy project, a 3.9% – 4.9% NSR on the Barry project and a 1% NSR on a portion of the Gladiator project.
Sandstorm Files Early Warning Report
Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider Reporting Issues, Sandstorm is announcing the acquisition of an aggregate of 3,498,000 common shares (the "Entrée Acquired Shares") of Entrée Resources Ltd. ("Entrée"), representing approximately 2.0% of the outstanding common shares of Entrée (the "Entrée Shares").
Prior to the acquisition of the Entrée Acquired Shares, Sandstorm held 28,643,880 Entrée Shares as well as warrants to purchase an additional 457,317 Entrée Shares ("Entrée Warrants"), representing approximately 16.4% of the outstanding Entrée Shares on a non-diluted basis. Assuming the exercise of all 457,317 Entrée Warrants held by the Company, Sandstorm would have previously held an aggregate of 29,101,197 Entrée Shares, representing approximately 16.6% of the outstanding Entrée Shares (on a partially diluted basis). Upon completion of the acquisition of the Entrée Acquired Shares, an aggregate 32,141,880 Entrée Shares are now owned directly by Sandstorm, representing approximately 18.4% of the outstanding Entrée Shares. Assuming the exercise of the Company´s 457,317 Entrée Warrants, the Company would then hold 32,599,197 Entrée Shares, representing approximately 18.6% of the outstanding Entrée Shares (on a partially diluted basis).
The Entrée Acquired Shares were acquired by Sandstorm on the open market over the facilities of the Toronto Stock Exchange and other published markets for the Entrée Shares at prices ranging from C$0.44 to C$0.46 per Entrée Acquired Share. The acquisition of the Entrée Acquired Shares by Sandstorm was effected for investment purposes. Sandstorm may from time to time acquire additional securities of Entrée, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position.
The early warning report, as required under National Instrument 62-103, contains additional information with respect to the foregoing matters and will be filed by the Company on Entrée's SEDAR profile atwww.sedar.com.
[]
CONTACT Information
For more information about Sandstorm Gold Royalties, please visit our website atwww.sandstormgold.comor email us atinfo@sandstormgold.com.
[{"NOLAN WATSON": "PRESIDENT & CEO", "": "", "KIM FORGAARD": "INVESTOR RELATIONS"}, {"NOLAN WATSON": "604 689 0234", "": "", "KIM FORGAARD": "604 628 1164"}]
ABOUT SANDSTORM GOLD ROYALTIES
Sandstorm is a gold royalty company that provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine. Sandstorm has acquired a portfolio of 188 royalties, of which 21 of the underlying mines are producing. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold royalties. For more information visit:www.sandstormgold.com.
CAUTIONARY STATEMENTS TO U.S. SECURITYHOLDERS
The financial information included or incorporated by reference in this press release or the documents referenced herein has been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, which differs from US generally accepted accounting principles ("US GAAP") in certain material respects, and thus are not directly comparable to financial statements prepared in accordance with US GAAP.
Information contained or referenced in this press release or in the documents referenced herein concerning the properties, technical information and operations of Sandstorm has been prepared in accordance with requirements and standards under securities laws, which differ from the requirements of US securities laws. The terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" used in this or in the documents incorporated by reference herein are mining terms as defined in accordance with NI 43-101 under guidelines set out in the Definition Standards for Mineral Resources and Mineral Reserves adopted by the Canadian Institute of Mining, Metallurgy and Petroleum Council on 11 December 2005. While the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are recognized and required by securities laws other than the requirements of US securities laws, they are not recognized by the SEC. Disclosure of contained ounces are or may be permitted disclosure under regulations applicable to Sandstorm; however, the SEC normally only permits issuers to report resources as in place tonnage and grade without reference to unit of production measures. As such, certain information contained in this document or in the documents incorporated by reference herein concerning descriptions of mineralization and mineral resources under these standards may not be comparable to similar information made public by US companies subject to reporting and disclosure requirements of the SEC.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains "forward-looking statements", within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Sandstorm. Forward-looking statements include, but are not limited to, the future price of gold, the estimation of mineral reserves and resources, realization of mineral reserve estimates, and the timing and amount of estimated future production. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", or similar terminology.
Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Sandstorm to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Sandstorm will operate in the future, including the price of gold and anticipated costs. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, changes in business plans and strategies, market conditions, share price, best use of available cash, gold and other commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold Sandstorm will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact of general business and economic conditions, the absence of control over mining operations from which Sandstorm will purchase gold, other commodities or receive royalties from, and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, risks in the marketability of minerals, fluctuations in the price of gold and other commodities, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the section entitled "Risks to Sandstorm" in Sandstorm's annual report for the financial year ended December 31, 2018 and the section entitled "Risk Factors" contained in the Company's annual information form dated March 21, 2019 available atwww.sedar.com. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Sandstorm does not undertake to update any forward-looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.
SOURCE:Sandstorm Gold Ltd.
View source version on accesswire.com:https://www.accesswire.com/549852/Sandstorm-Gold-Royalties-Provides-Asset-and-Corporate-Update |
FedEx warns of ‘macroeconomic weakness and trade uncertainty’ affecting business
FedEx (FDX) reported Tuesday that ongoing trade uncertainty would impact its business in the current fiscal year, while reporting better-than-expected earnings results for its fourth quarter.
The Memphis, Tennessee-based courier company posted adjusted earnings of $5.01 per share, beating consensus expectations for $4.81 a share, according to Bloomberg data. Quarterly revenue of $17.8 billion was in-line with expectations.
FedEx provided a tepid outlook for the 2020 fiscal year,saying in a statementthat “macroeconomic weakness and trade uncertainty, continued mix shift to lower-yielding services and a strategic decision to not renew a customer contract will negatively impact operating income.”
“Our fiscal 2020 performance is being negatively affected by continued weakness in global trade and industrial production, especially at FedEx Express,” Alan B. Graf, Jr., FedEx executive vice president and CFO, said in a statement. “While we are adjusting our costs to mitigate revenue weakness and market shifts, we will continue to invest in areas that expand our capabilities, improve our long-term efficiencies and reduce our cost to serve.”
The company said it expects that capital expenditures will total $5.9 billion in fiscal 2020, versus $6.16 billion in full-year capex anticipated by consensus analysts.
Shares of FedEx fluctuated between gains and losses after market close Tuesday. The company’s stock has fallen 3.3% for the year-to-date, versus a 16.3% gain in the S&P 500 (^GSPC).
Previously, FedEx lowered its fiscal 2019 earnings guidance in both March and December, with management at the time citing a softer macroeconomic environment in Asia and Europe.
Investors on Tuesday were closely eyeing the company’s updated outlook for fiscal 2020 for signals of the impact of ongoing geopolitical concerns.
Namely, the international courier company has been swept into the crosshairs of the U.S.-China trade war as tensions escalated between the two countries in recent months.
FedExannounced on Monday that it filed a lawsuitagainst the U.S. Commerce Department over recent updates to the Trump administration’s import and export rules.
The lawsuit comes after the U.S. government in May added Chinese telecommunications giant Huawei to a list of entities barred from receiving U.S. technology without Commerce Department license. Shortly thereafter, Huawei complained that FedEx had delivered several of its packages to incorrect addresses, sparking an investigation into FedEx by China.
On a call with investors Tuesday, however, FedEx management said that the Huawei packages were “only peripherally involved” in the lawsuit and that the suit was instead filed as a response to years’ worth of regulation over import and export controls.
In acourt filing, FedEx said that the export restriction rules “essentially deputize FedEx to police the contents of the millions of packages it ships daily even though doing so is a virtually impossible task, logistically, economically, and in many cases, legally.” FedEx argues that it should not be liable in the event that it accidentally ships products violating the Trump administrations’ restrictions.
Macroeconomic concerns aside, FedEx has also faced headwinds at home. E-commerce giant Amazon (AMZN) has beenpushing deeper into the delivery space,threatening to encroach on FedEx’s key business.
Earlier this month, FedEx announced that itdecided not to renewa U.S. domestic contract to fly packages for Amazon.com, with the current agreement ending June 30. Less than 1.3% of FedEx’s total revenue for the 12 months ending December 31 was attributable to Amazon, FedEx said in astatement.
FedEx’s management said Tuesday that it expected the decision not to renew its contract with Amazon to create a near-term headwind, but that this will reverse to a positive in fiscal 2021 as the company optimizes its own network to account for the gap.
—
Emily McCormick is a reporter for Yahoo Finance.Follow her on Twitter: @emily_mcck
Read more from Emily:
• Don’t say ‘IPO’: What to know about Slack’s direct listing
• Buffett on the American economy, capitalism: ‘It works’
• Tech companies like Lyft want your money – not ‘your opinion’
• Levi Strauss shares jump more than 30% above IPO price at open
• Facebook sued by Trump administration for alleged ‘discriminatory’ ad practices
• Boeing 737 Max groundings ‘pressure’ U.S. economic data: Wells Fargo
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Shopify Tumbles as Euphoria Is Put to the Test
(Bloomberg) -- Shopify Inc.’s biggest drop of 2019 shows the e-commerce stock is testing the limits of what investors are willing to pay for rapid revenue growth.
The shares fell 8.9% in New York on Tuesday, their biggest drop since Dec. 14, after more than doubling from the start of the year. That run-up created more than $25 billion in market value as investors looked past rising competitive threats and focused on fast-growing sales and new online checkout products. The money-losing company’s shares now trade at around 21 times estimated sales, more expensive by that measure than any technology stock in the S&P 500 Index.
That’s making Wall Street squeamish. At least five analysts have downgraded the company in the past two months. In almost every case, the lofty stock price was the top concern.
“We now see more limited upside to shares over the next 12 months,” Wedbush analyst Ygal Arounian said in a Tuesday note downgrading the stock to neutral from buy. He cited a “premium valuation.”
What started as co-founder and Chief Executive Officer Tobi Lutke’s effort to sell snowboards on the internet has grown into a business projected to generate more than $1.5 billion in revenue in 2019. In addition to online sales, Shopify now competes with companies like Square Inc. at the point of sale in brick-and-mortar stores. Last week, Ottawa-based Shopify said it plans to spend $1 billion on a chain of fulfillment centers that would pit it even more directly against Amazon.com Inc.
Shopify’s break-neck expansion has come at the cost of profitability. The company hasn’t turned an annual profit on a GAAP basis and isn’t projected to until 2020, according to analyst estimates.
While investors have surely been attracted to Shopify for its revenue growth, which is projected to exceed 40% this year, they also prize its execution. The company hasn’t missed sales estimates in the 16 quarters it has reported financial results as a publicly traded company.
“The reason I think the shares have done so well, independent of the real strong and favorable environment for software stocks, is that it’s lived up to its promise and then some,” Tom Forte, a DA Davidson analyst, said in an interview. “They now have a lengthy track record of execution and being shrewd when it comes to capital allocation.”
Forte remains bullish on Shopify and says increased U.S. regulatory scrutiny of Amazon and other tech giants could create additional opportunities for Shopify, making the fulfillment center push critical.
Notwithstanding the recent downgrades, most analysts remain optimistic. Shopify’s U.S.-traded shares have 15 buy ratings, 11 holds and two sells, according to data compiled by Bloomberg. The stock has gained almost 1,600% since its May 2015 initial public offering at $17 a share.
Bearish bets have fallen to the lowest level in more than a year, according to IHS Markit data. Shares on loan to short sellers account for just 2.1% of the float, down from a high of nearly 10% in October.
Gerber Kawasaki Wealth & Investment Management sold some of its small stake in Shopify earlier this year based on the stock’s performance, according to Chief Executive Officer Ross Gerber.
“We don’t have a large position,” he said. “If I did I would sell a little more for sure.”
At the same time, Gerber said he still “loves” the company and is surprised that it hasn’t been acquired by a bigger rival like Amazon yet.
(Updates shares in second paragraph.)
To contact the reporter on this story: Jeran Wittenstein in San Francisco at jwittenstei1@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Richard Richtmyer, Morwenna Coniam
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Axsome Initiates Phase III Study on Depression Candidate
Axsome Therapeutics, Inc.AXSM enrolled the first patient in its GEMINI (Glutamatergic and Monoaminergic Modulation in Depression) study, a phase III, randomized, double-blind, placebo-controlled trial of AXS-05 in the treatment of major depressive disorder (MDD). AXS-05 is a novel, oral, investigational NMDA receptor antagonist with multimodal activity.
Shares of the company have soared 732.3% in the past year compared with the industry’s growth of 4.6%.
AXS-05 is a novel, oral, investigational non-competitive N-methyl-D-aspartate (NMDA) receptor antagonist with multimodal activity under development for the treatment of central nervous system (CNS) disorder. The company is conducting a phase III STRIDE-1 study of AXS-05 in treatment resistant depression (TRD), and a phase II/III ADVANCE-1 study in agitation associated with Alzheimer's disease (AD). The company completed a phase II ASCEND study in MDD, and a phase II study in smoking cessation.
If successfully developed, AXS-05 will be the first orally administered NMDA receptor antagonist approved for the treatment of MDD. According to the company, the results of either the GEMINI study in MDD or the ongoing STRIDE-1 study, if positive, would, in combination with its previously completed ASCEND study, be sufficient to support the filing of an NDA for AXS-05 for the treatment of MDD.
The company expects top-line results from both the STRIDE-1 and GEMINI studies in the second half of 2019.
In March 2019, Axsome received Breakthrough Therapy designation from the FDA for AXS-05 for the treatment of MDD. The candidate has also been granted Fast Track designation by the FDA for the treatment of TRD and agitation associated with Alzheimer’s disease.
MDD affects about 7.1% of adults in the United States and is a chronic, mental disorder that can result in suicide.
The depression market is quite large and has many players, including biggies like Allergan AGN with product Viibryd, and Eli Lilly LLY with Cymbalta and Zyprexa.
In March 2019, the FDA approved Johnson & Johnson’s JNJ nasal spray, Spravato (esketamine), for treatment-resistant depression (TRD) in adults, but with a boxed warning. The nasal spray has been approved for use in conjunction with an oral antidepressant in patients with MDD, who have not benefited from multiple standard treatments.
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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 reportEli Lilly and Company (LLY) : Free Stock Analysis ReportJohnson & Johnson (JNJ) : Free Stock Analysis ReportAllergan plc (AGN) : Free Stock Analysis ReportAxsome Therapeutics, Inc. (AXSM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
11 best July 4th celebrations across the US
There's nothing as essential for the Fourth of July as hot dogs, a cold beer and an epic anddeafening fireworks display.
And while we can assure you that your family's backyard get-together is most likely the hottest on the block, there are someJuly 4th celebrationsthat are, quite frankly, better than others. One Rhode Island town's annual celebration sees eight times as many visitors during the holiday as its normal resident count; there's a reason it's called the "Most Patriotic Town in America."
Consider yourself lucky if you live near one of these patriotic destinations -- if not, you might want to considera last-minute road tripto check out the most incredible July 4th celebrations in the United States. From Lake Tahoe to Lake Minnetonka, a Dallas suburb to the City of Brotherly Love, ring in America's birthday at one of these hotspots.
Scroll through above to see which places made our list.
Related: Show your pride with these outfits |
Apple reportedly canceled quantum dot camera technology for the iPhone 11
The iPhones arriving this September will feature more cameras than ever, according to various leaks from the past few months. Apple is said to be bringing triple-lens cameras to the iPhone 11 and iPhone 11 Max, while the iPhone XR successor will get a dual-lens shooter. Apple will likely bake a bunch of extra camera features into iOS 13 to take advantage of the additional lens, but these have yet to leak. A new story from the UK, meanwhile, does mention a camera feature that Apple has abandoned because of costs. Related Stories: More proof Apple is making ARM MacBooks: It just hired a key ARM engineer Apple Watch wearer in the UK details how the ECG app helped save his life Microsoft might beat Apple to market with an ARM-powered laptop Apple is believed to be the major Nanoco client that canceled a multi-million dollar deal, per The Telegraph , which crashed its stock by 74%. If this kind of stock behavior sounds familiar, its because it happened in the past with UK companies that lost lucrative supply deals with Apple. Nanoco would not confirm the identity of the customer, but the company did announce a contract with a large undisclosed US listed corporation in 2018 valued at £17.1 million ($21.75 million) over two years, which amounted to more than half its revenues. The Telegraph believes that company to be Apple. The two parties were working on advanced image sensors that should have been featured in this years iPhones, but Apple apparently abandoned Nanocos quantum dot technology in favor of an alternative. Quantum dot technology allows for precise control of light that allows for higher-quality digital camera sensors than the silicon ones in todays smartphones, the report notes, adding that quantum dot technology is also used in TV screens. Interestingly, Apple was rumored to be working on quantum dot technology in the past, but that was in relation to displays , not cameras. Story continues The technology would have improved photography and AR features on the iPhone, but manufacturing the sensor in large numbers would be costly, which is why Apple canceled the project. The news comes from BlueFin Research, which closely tracks Apples supply chain. Apple is still interested in improving AR on iPhone and is working on laser-powered 3D features for the 2020 iPhones, The Telegraph notes. BGR Top Deals: Get an ASUS 2-in-1 touchscreen Chromebook for $279 on Amazon, today only This top-rated fast wireless charger is somehow only $6.99 right now on Amazon Trending Right Now: No, its not just you: Half of the internet is down, including Google, Amazon, and Reddit Apple was right again: Heres why a Galaxy Note 10 without a microSD slot isnt a big deal Fresh Pixel 4 leak gives us another look at Googles unreleased flagship See the original version of this article on BGR.com |
Amazon's Prime Day Will Stretch to 48 Hours in 2019
Amazon.com (NASDAQ: AMZN) announced early Tuesday that its fifth annual customer loyalty sale would get bigger and better. In fact, calling it Prime Day doesn't accurately describe this latest effort. Prime Day debuted in 2015 as a celebration of the company's 20th anniversary and featured 24 hours of deals for Amazon Prime members. In 2017, the sale was stretched to 30 hours, and last year it was extended to 36 hours . Next month, the sale that was originally billed as "Black Friday in July" will last for two full days, beginning at 12 a.m. PDT on Monday, July 15, with more deals than ever before. A graphic with a computer-generated band, people, and products announcing Amazon Prime Day on July 15 and 16. Image source: Amazon. Bigger and better In a press release touting the event, the e-commerce juggernaut said it would offer members around the world more than 1 million deals -- including its best Prime Day deals ever on Alexa-enabled devices. As a bit of a preview, the company said one of its biggest bargains would be available beginning today: A Toshiba HD 43-inch Fire TV Edition Smart TV will sell for $179.99 ($120 less than usual) through June 30 or while supplies last. The company is also offering early deals on a number of devices that incorporate its Alexa-powered, voice-enabled technology. These include Jabra Elite 85h wireless headphones and the iOttie Easy One Touch Connect smartphone car mount. "Our vision is that Prime Day should be the absolute best time to be a member -- when you can enjoy shopping, savings, entertainment, and some of the best deals Prime members have ever seen," said Jeff Wilke, Amazon's worldwide consumer chief. Those who aren't Prime members can, of course, access the deals by joining, but they also have the option of starting a 30-day free trial. New this year Amazon says it's pulling out all the stops this year, roping in actors, musicians, athletes and top brands to make Prime Day a star-studded event -- though it's withholding the names of those involved for now. A number of well-known retailers and brands will host new product launches in conjunction with the sale, among them Nickelodeon, Levi Strauss and Schwinn. Story continues Whole Foods Market, which is owned by Amazon, is also planning product launches and discounts as part of Prime Day. The company is also partnering with FEED , a charity that sells artisan-made products from around the world and uses the proceeds to feed hungry schoolchildren. Amazon will offer a limited-edition canvas tote. For each one sold, FEED will donate 10 meals in the U.S. to support No Kid Hungry's free school breakfast program. Expanding its empire The 2017 Prime Day was, up to that point, Amazon's single-biggest shopping day ever, with higher total sales than 2016's Black Friday and Cyber Monday combined. But producing a midyear sales surge isn't the only reason Prime Day is important to Amazon. Amazon doesn't disclose revenue from Prime Days. It has said in the past that it uses the promotion to hook in new Prime customers and subscribers, which now total more than 100 million worldwide. In the U.S., it's estimated that Prime members spend $1,400 a year, on average, compared to just $600 a year by non-Prime customers, according to Consumer Intelligence Research Partners. This makes clear just how much of a vested interest Amazon has in attracting new subscribers -- and Prime Day is one of the company's top draws. After last year's event, the company said "it welcomed more new Prime members on July 16 than any previous day in Amazon history." No wonder it's expanding the sale to 48 hours. 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 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Danny Vena owns shares of Amazon. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy . |
IPO Edge’s Jannarone: Chuck E. Cheese Offers Steady Alternative to Tech Deals – TD Ameritrade
In an interview withTD Ameritrade Network,IPO EdgeEditor in ChiefJohn Jannaroneexplains that highflying tech IPOs such as Zoom (ticker: ZM) and Slack (ticker: WORK) offer great potential but will likely be very volatile given their steep price-to-sales multiples and slow paths to profitability. Instead, investors might consider shares of Leo Holdings Corp (ticker: LHC), a blank-check company which is merging with Chuck E. Cheese parent CEC Entertainment, which will bring the latter company public. The deal implies a roughly 6.9 times Ebitda multiple, which is less than most restaurant and entertainment venue operators, while growing at around 10% for the next few years. Watch the interviewhere.
Contact:
www.IPO-Edge.com
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Donald Trump threatens 'overwhelming force' against Iran if it attacks 'anything American'
WASHINGTON – President Donald Trump threatened Tuesday to use "overwhelming force" against Iran if it attacks U.S. assets or personnel. "Any attack by Iran on anything American will be met with great and overwhelming force. In some areas, overwhelming will mean obliteration," Trump wrote on Twitter. The threat came less than a week after Trump called off a planned U.S. missile strike on Iran that the military prepared in retaliation for the shooting down of an American drone by Tehran. His remarks marked a sharp pivot from the softer tone the president used in recent days toward Iran, in which he urged negotiations over military action and boasted that he was seen as a "dove" after canceling the strike last week. Trump returned to the subject of Iran during an event in the Oval Office on Tuesday, reiterating his commitment that his administration would not allow Tehran to obtain nuclear weapons. Asked whether he had an exit strategy should a conflict arise with Iran, the president responded, "I don't need exit strategies." Still, the president said he remains willing to talk with Iranian officials. “When they’re ready, they’ll let us know,” Trump said. "Whatever they want to do, I’m ready.” The Islamic republic's leaders mocked new U.S. sanctions and said they prevented negotiations. “The fruitless sanctions on Iran’s leadership and the chief of Iranian diplomacy mean the permanent closure of the road of diplomacy with the frustrated U.S. administration,” said Abbas Mousavi, a Foreign Ministry spokesman, according to the state-run Islamic Republic News Agency Iranian President Hassan Rouhani blasted the sanctions against Iran's supreme leader, Ayatollah Ali Khamenei, as “outrageous and idiotic,” noting the 80-year-old Shiite cleric has no plans to ever travel to the USA. In remarks broadcast on Iranian state television, Rouhani said the White House suffers from "mental retardation." Story continues Trump called those statements "very ignorant and insulting." Trump's threat to obliterate Iran may be met with skepticism. Some foreign policy experts criticized his decision last week to pull back on a retaliatory military strike against Iran, saying the president looked like a "Twitter tiger" and the move was part of a broader pattern of bellicose rhetoric followed by minimal action, resulting in confusion. "This is part of a pattern with Trump, who roars like a tiger but usually acts like a scaredy-cat," Max Boot, a senior fellow for national security studies at the Council on Foreign Relations, wrote Monday in a column for The Washington Post. He noted that Trump vowed to rain "fire and fury" on North Korea, only to sit down with that country's repressive ruler, Kim Jong Un, and declare the two had fallen "in love." This year, he threatened to close the U.S. border with Mexico over illegal immigration but never did. "Trump is a Twitter tiger whose threats cannot be taken seriously," Boot wrote. Still, lawmakers in Congress raised alarms about the Trump administration's increasingly aggressive military posture. The Pentagon has dispatched additional troops and B-52 bombers, among other assets, to the Middle East. Tuesday, Reps. Ro Khanna, D-Calif., and Matt Gaetz, R-Fla., introduced an amendment to the annual defense authorization bill that would bar any federal funds from being used for military force against Iran without congressional authorization. A similar proposal may come up in the Senate as early as this week. "One of the best ways to avoid bumbling into war, a war that nobody wants, is to have a robust open debate and for Congress to have a real say," Sen. Charles Schumer, D-N.Y., said last week after a briefing on Iran at the White House. Trump announced what he called "hard-hitting" new sanctions on Iran at the White House on Monday. He said the measures would deny Iran's leaders access to financial instruments. The penalties target Khamenei, his office and other top Iranian officials. The measures will block transactions involving any property and other assets Iran's leaders hold in the USA. Experts such as Ariane Tabatabai at the Rand Corp. said they would have little practical effect. Trump unveiled the sanctions as Secretary of State Mike Pompeo traveled to the Middle East to meet with U.S. allies in the region, including Saudi Arabia and the United Arab Emirates. Tuesday, Pompeo headed to an undisclosed location, according to a State Department pool report. Tensions between the United States and Iran have been rising for more than a year, beginning when Trump unilaterally withdrew from a multilateral deal with Iran aimed at limiting its nuclear program. Under that agreement, the United States and other countries lifted crippling sanctions on Iran in exchange for caps on its ability to enrich uranium and other restrictions. The Trump administration reimposed those sanctions, aiming to cut Iran's oil exports to zero and force the regime to negotiate a broader agreement that would curb Iran's ballistic missile program and its support for regional terrorist groups. As his plane is reflected in the glass building behind them, Secretary of State Mike Pompeo, right, walks with Abu Dhabi Assistant Foreign Ministry Undersecretary for Protocol Affairs Shihad Al Faheem, as they say goodbye on the secretary's departure from Abu Dhabi, United Arab Emirates, Tuesday, June 25, 2019, en route to an undisclosed location. Iran and other parties to the agreement have tried to salvage it, but that effort has faltered, particularly as the U.S. sanctions started to crush Iran's economy. In recent weeks, the friction between the United States and Iran sharply escalated as Trump administration officials blamed Iran for a series of attacks on oil tankers in the Persian Gulf. Iran denied sabotaging those ships, but last week, Iranian officials said they shot down a U.S. drone that crossed into its airspace. The Pentagon said the unmanned surveillance aircraft was in international airspace. Trump said the new sanctions were in part a retaliation for the drone strike. Trump has made it clear he wants to negotiate with Iran , but Iran has rejected his entreaties. Tehran said he is not a reliable negotiator after he withdrew from the 2015 nuclear deal. Contributing: The Associated Press This article originally appeared on USA TODAY: Donald Trump threatens 'overwhelming force' against Iran if it attacks 'anything American' |
Dairy Queen Launches New Galaxy-Inspired Oreo Blizzard with 'Sparkly Cosmic Swirls'
Dairy Queen is gearing up for the 50th anniversary of the moon landing with a gravity-defying treat. On Monday, the fast food chain announced the new Zero Gravity Blizzard to commemorate the historic occasion, which takes place in July, though the Blizzard is available in stores now. The Blizzard is “made with Oreo cookie pieces, sparkly cosmic swirls and sweet cotton candy topping blended with our world-famous soft serve (ice cream) and topped with colorful galaxy sprinkles,” according to a recent press release. “Consumers have had an unwavering fascination with outer space since America’s landmark achievement nearly half a century ago,” said Maria Hokanson, executive vice president of marketing at American Dairy Queen Corporation. “Fans can feed their imaginations and taste buds alike with the Zero Gravity Blizzard Treat – sending their red spoon spaceships into a deliciously iridescent soft serve galaxy.” Dairy Queen July 20, 2019 marks the 50th anniversary of the United States’ moon landing in 1969, when NASA’s Buzz Aldrin and Neil Armstrong became the first humans to ever set foot on the lunar surface. RELATED: Dairy Queen Is Selling a New Dreamsicle-Dipped Ice Cream Cone Just in Time for Spring Oreo and Dairy Queen’s official Twitter accounts had a little fun over the zero gravity concept following the new Blizzard’s announcement. Zero Gravity? Doǝs ʇɥɐʇ ɯǝɐu ʍǝ ɔɐu ǝɐʇ ᴉʇ ndsᴉpǝ poʍu¿ — OREO Cookie (@Oreo) June 24, 2019 RELATED: Dairy Queen Now Has Blizzard Flights for Those Who Can’t Decide on One Flavor Like all of their Blizzards, the new addition will indeed remain in place when turned upside down, and will be served upside down—or else customers will receive the next one free. This is hardly the first ice cream stunt of its kind, with DQ having celebrated the birth of Prince Harry and Meghan Markle ‘s son with “Royal Baby Blizzards” in May, as well as an Oreo Hot Cocoa Blizzard during this past holiday season. |
Lobby crush: Online shopping leads to mountains of boxes
As online shopping becomes ubiquitous, so do the boxes delivered to homes across the country. For apartment dwellers — and the managers of the buildings they live in — it's tough to manage the boxes that pile up, sometimes clogging precious space for days. (If not watched, packages also can be stolen or left out in the rain.) The problem's only getting worse, says Rick Haughey, vice president of the non-profit National Multifamily Housing Council, which represents many owners, developers and managers of apartment housing. People are ordering more heavy, oversize and perishable items than ever before, he notes, and building managers are "tasked with finding new and creative ways to meet the demand for package storage, sorting and security." The problem is especially acute around the holidays, but continues all year. "Now, you've got a lot of perishables coming in. And things like tires can be ordered online at discount prices. That means four tires are sitting in the leasing office, along with items like flat-pack furniture and even bed mattresses," Haughey says. "They might be there for days or potentially weeks if you're away on vacation. There doesn't seem to be perfect solution, but locker systems and delivery hubs come close." There are a growing number of technologies and services aimed at alleviating the delivery problem in apartment foyers. UPS, FedEx and Amazon all have begun offering services to help manage the flow of delivery boxes. The Amazon Hub program, for example, includes Amazon Locker, based at third-party locations like Whole Foods; Locker+, with staffed locations for pickups and dropoffs; and Apartment Locker, which accepts Amazon and non-Amazon packages in apartment buildings, among other services. Luxer One, a company based in Sacramento, California, provides secure lockers in buildings in the United States and Canada that can be accessed by both delivery companies and residents — including compartments for very large boxes and refrigerated lockers for perishables. The lockers can be placed inside or outside apartment buildings, and are accessible using codes. Story continues "It's a huge issue for a lot of apartment buildings. There's a security factor, but also a convenience factor. Building management offices aren't open as late as some residents need them to be in order to retrieve packages, and in some cases, just accepting a building's packages can easily become a full-time job," says Melody Akhtari, spokeswoman for Luxer One, which started out in 2005 with lockers in apartment buildings for dry cleaning. "A couple years in, a few buildings asked us if we could do something to help with all the boxes that were being delivered. In 2013, we launched across the United States and Canada, and our lockers are now in over 3,500 locations," she says. Along with smart lockers, there are services that arrange deliveries for a specific time when residents know they'll be home; or let recipients have packages delivered to secure hubs or other locations that are conveniently located and open late. "The challenge is that in an apartment building with, say, 400 units, you have FedEx, UPS and USPS all stopping by at multiple times of the day to make deliveries. And these are not just small standard packages. One person might be receiving a Casper mattress and another might be receiving a box of flowers that needs refrigeration," says Akhtari. But such locker systems can be pricey, and in buildings without them, residents can use services offered either by the shipper or by some retailers. Jet.com, for example, which is owned by Walmart, has installed lockers in hundreds of New York apartment buildings. There's also a service called Fetch (www.fetchpackage.com), which collects packages, stores them offsite and delivers them when the recipient is home, taking the burden off building managers. In some cases, buildings have converted space into package storage rooms and hired additional staff to deal with deliveries. In other cases, they have decided not to accept packages at all, so residents must rely on one of the outside services. "Managing deliveries can be especially challenging in high package volume markets like New York, Washington, D.C., and Chicago," says John Falco, principal at Kingsley Associates which, with the National Multifamily Housing Council, published a report on the issue. "In higher-density, urban areas, space is often at a premium, so package storage solutions are important." And the challenge doesn't end at delivery and storage. Once the boxes are opened, some are shipped back as returns, while others create a trash or recycling headache. According to the report, issued in November 2018, over 40 percent of respondents said the large volumes of cardboard and packaging materials being disposed of have created a waste management challenge. |
These are the most undervalued cities in the US this year, study says
If you want to move to a city where you’ll get the most bang for your buck, a new study suggests you should look to Pittsburgh — or at least consider heading to the east coast.
On Tuesday,SmartAssetreleased a study on the most undervalued cities in the U.S. this year and Pittsburgh came out on top.
The company looked at 189 of the largest cities in the U.S. and created a formula to calculate how undervalued each city was, usinghome value per square footand eight otherquality of lifemetrics including: violent crime rate per 100,000 residents, high school graduation rate, walkability, unemployment rate and concentration of dining and entertainment establishments.
The formula determined how much a home should be valued based on the specific metrics and once that was determined, the actual home value — based on Zillow data — was subtracted from SmartAsset’s calculated number.
“The city with the largest positive difference ranked first while the city with the largest negative difference ranked last,” analysts said in the study.
Based on SmartAsset’s formula, the Pittsburgh’s home value per square foot should be $262.79, but it’s actually only $104.50.
That leaves Pittsburgh undervalued by $158.29, making it the most undervalued in the U.S., a spot it heldlast year, too. In fact, the company reported eight of last year’s undervalued cities made it on the list again this year, but in a different order.
The study also found that six cities were on the east coast and three were in Pennsylvania. No cities from the west coast landed on the top 10 list.
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Based on SmartAsset’s findings, here are the 10 most undervalued cities in the U.S. in 2019:
1. Pittsburgh, Pa.
2. Newark, N.J.
3. New Haven, Conn.
4. Philadelphia, Pa.
5. Baltimore, Md.
6. Providence, R.I.
7. Chicago, Ill.
8. Charleston, S.C.
9. St. Louis, Mo.
10. Allentown, Pa.
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Cannabis Sits At The Epicenter Of The Plant-Based Medicine Movement
By Silvia Orizaba, CEO ofSacred.
Sometimes, the easiest solution to a problem sits right in front of your nose or at the touch of a finger.
Plants provided our first medicines; history books suggest that plants have been used medicinally for thousands upon thousands of years. As time—and science—evolved, the use of plants was minimized in favor of chemical compounds that arose out of Petri dishes and chemistry beakers. These days, when the medical or pharmaceutical community speaks of plants as part of the medical process, the conversation steers toward herbal medicine. Ginger helping gastrointestinal pain? That’s a “Far Eastern” remedy. St. John’s Wort helps increase serotonin levels so we can sleep better; it’s natural. Why don’t more people use it?
Quite simply, there are myths associated with their use; they are wise tales. Plant-based medicines don’t deliver the returns as much as “the real thing.”
So it comes as a surprise where and how cannabis plays a role as the plant-based medicine movement takes a new shape—and perhaps the question should be why itisn’tpart of the plant-based medicine movement more than it has been to date.
After all, cannabis IS a plant, Scientific research has contributed to the rise of pharmaceutical drugs; it has also enlightened many on the benefits of medicinal herbs that could complement these drugs. Cannabis and medical marijuana sit at the ideal epicenter of discussion of the plant-based medicine movement. In fact, cannabis—with CBD leading the charge—can go a long way in shaping the pharmaceutical movement for years to come.
Plant-based medicine offers real and bona fide alternatives to traditional medicine and pharmaceutical solutions. The sheer amount of science and research that has been put into the cannabis industry is a mere sliver of what Big Pharma has put into research and clinical trials of those medicines in the pipeline.
A Different Kind Of Awesome
Having been in the cannabis industry since 2012, I have worked with legislators and policymakers to advocate the benefits of medical marijuana. In my early days, I remember being ridiculed with traditional stereotypes, for example, the grandmother who smokes a joint to make her glaucoma go away.“Grandma doing weed—that’s so awesome!”
Try telling Charlotte Fiji about being awesome. I often recall thestory about how her parents sought doctorswho would approve giving cannabis oil to reduce the degree and amount of epileptic seizures. Her success should be a reminder about the “power of the plant.”
Cannabis can be the catalyst that the plant-based medicine industry needs to truly evolve how science, nature—and finance—come together. These days, cannabis and plant-based medicine growth are hitting Main Street far and wide—walk down your favorite main street to see CBD massage treatments, drinks with CBD oils. And it’s not just CBD and cannabis where this is happening. We’re seeing such spices as turmeric, cardamom and cinnamon that are more likely seen on the Food Network end up on the pages of WebMD and Dr. Oz.
Cannabis unleashes so much more power than any of these herbs, spices and plants. More than 400 chemicals and 100 cannabinoids have been identified by cannabis researchers, but CBD and THC are the ones that most people have heard of, simply because they are found in the highest concentrations.
To be sure, many CBD-derived treatments have been used by holistic medicine or naturopathic doctors, but the first signs of plant-based medicine becoming more legitimate are taking shape. In June 2018,the Food & Drug Administration approved Epidiolex, a CBD oral solution for the treatment of seizures. In hispress statement, FDA Commissioner Scott Gottlieb, M.D. noted that controlled clinical trials testing safety, combined with careful review through the FDA’s drug approval process, is the most ideal way to bring marijuana derived treatments to market.
To that end, a growing number ofphysicians in Illinoisandacross the countryare shifting focus to plant-based lifestyles. We envision their role and input will lend more inputs and education with such mainstay medical groups as the American Medical Association and the American Pharmacy Association.
One of the drawbacks that these groups—and some of their patients—share with us is that if the products are not registered by the Food & Drug Administration, the acceptance rate won’t be there. Every industry needs to start somewhere down a path of registration and acceptance, and cannabis is no different. Sacred started down that path by registering our hemp seed oil pain relief products with the FDA. We WANT that approval and that validation, but we also want to be the ones who step to the forefront to get the industry talking, sharing and evolving so that more companies like ours can gain registration and approval.
Our company is watching this trend closely because (when married with the ideals that medical marijuana can offer) we envision a time where more patients will enter a doctor’s office, retail pharmacy or hospital and seek plant-based treatments.
Imagine a time when patients can shop their local drug store and it looks more like a Whole Foods than a Walgreens, where cannabis is sold in different strains to address specific ailments. This is where cannabis’ potential in the plant-based medical movement is headed. We’re ready for the change—and so are patients.
Silvia Orizaba is CEO of Chicago-based Sacred.
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
See more from Benzinga
• Discussing MPX International's South Africa Joint Venture With CEO Scott Boyes
• A European Landscape: The 21st Century's Women In Cannabis - And An Event For Us
• The Secret Sauce Behind The Best Performing Cannabis ETF In Canada
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Why Teva Pharmaceutical Industries, Mesoblast, and New Gold Jumped Today
The stock market lost ground on Tuesday, as investors responded negatively to remarks about the prospects for economic weakening. Fed Chair Jerome Powell gave a speech that included comments about the likely course of monetary policy, and he noted that a "backdrop of heightened uncertainties" could be a wild card even with generally favorable conditions at present. Even though major indexes fell, some stocks posted strong gains. Teva Pharmaceutical Industries (NYSE: TEVA) , Mesoblast (NASDAQ: MESO) , and New Gold (NYSEMKT: NGD) were among the top performers. Here's why they did so well. Teva gets its deal done Shares of Teva Pharmaceutical Industries picked up 7% after the generic-drug specialist received court approval to move forward with a settlement proposal . Teva had offered to resolve a dispute with the Oklahoma attorney general involving allegations about the pharma company's role in the U.S. opioid epidemic, with parties having agreed in late May to an $85 million payment into a fund with the state treasury for use in opioid-related expenses. Late yesterday, an Oklahoma state court approved the settlement as revised, and Teva shareholders hope that the company won't have to deal with more litigation about the issue. Signpost with Teva logo on it, next to a fence. Image source: Teva Pharmaceutical Industries. Mesoblast keeps gaining ground Mesoblast saw its stock climb 12%, following up on gains made yesterday. The Australia-based company had said early Monday that its rexlemestrocel-L candidate treatment for the prevention of post-implantation mucosal bleeding in end-stage chronic heart failure patients requiring a left ventricular assist device had gotten the orphan drug designation from the U.S. Food and Drug Administration. That designation will potentially provide Mesoblast with additional incentives, including market exclusivity upon approval, fee exemptions, tax credits, and other assistance. Mesoblast expects to meet with the FDA to come up with an approval pathway to accelerate release, and investors are warming up to the idea that the drugmaker could be putting itself in position to take advantage of a lucrative niche market. Story continues New Gold shines Finally, shares of New Gold jumped 11%. The gold miner benefited from a strong day in the precious metals markets, as gold bullion prices climbed almost $20 per ounce to nearly $1,440 during the morning hours before pulling back slightly. Gold has performed quite well recently due to concerns about the global economic situation, and investors are hopeful that higher prices will finally put small producers like New Gold in a better position to improve their balance sheets and boost their profits. New Gold in particular needs help from the yellow metal, as its costs are generally well above those of rivals. Going forward, the company will want to see both strong gold markets and good results from its mining assets in order to drive its stock higher. 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 Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy . |
Read This Before Selling Traka Resources Limited (ASX:TKL) Shares
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sellTraka Resources Limited(ASX:TKL), 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, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Traka Resources
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Joshua Pitt for AU$103k worth of shares, at about AU$0.013 per share. That means that even when the share price was higher than AU$0.012 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 20.4m shares worth AU$270k. While Traka Resources insiders bought shares last year, they didn't sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them).
Over the last three months, we've seen significant insider buying at Traka Resources. In total, insiders bought AU$260k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 32% of Traka Resources shares, worth about AU$1.3m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Given that insiders also own a fair bit of Traka Resources we think they are probably pretty confident of a bright future.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 note:Traka Resources may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
NBA free agency: Celtics, Mavericks to pursue Kemba Walker?
Kemba Walker is going to be in high demand as a free agent, and some of the suitors for his services are beginning to emerge. According to the New York Times , Walker, who has spent all eight seasons of his career with the Charlotte Hornets (and Bobcats), will be targeted by both the Boston Celtics and Dallas Mavericks once free agency opens on June 30. The Charlotte Observer also reported Boston’s interest in Walker on Tuesday. Walker was selected ninth overall by Charlotte in the 2011 draft and has been a constant for the franchise ever since. He was a steady scorer early in his career and signed a four-year, $48 million extension the during the 2014-15 season. Now, after three consecutive All-Star seasons in which he averaged 23.2, 22.1 and 25.6 points per game, Walker is in line for a massive payday. And because Walker was named All-NBA Third Team this season, he is eligible for a supermax contract — five years, $221 million — from the Hornets. Under NBA rules, other teams cannot offer Walker the same astronomical figure that Charlotte can. However, Walker said on the record that he would consider taking less money if it meant the Hornets added pieces around him in an effort to build a legitimate contender. But would he take significantly less to play for Dallas or Boston? How would Kemba Walker fit in Boston? It has been widely reported that the Celtics are preparing to lose All-Stars Kyrie Irving and Al Horford in free agency. That would leave young talents like Jayson Tatum and Jaylen Brown, along with Gordon Hayward, as the core of the team. Walker, a 6-foot-1, score-first point guard, would presumably fit in pretty well in that starting lineup. His presence would take pressure off Tatum and Brown to shoulder the scoring load, especially with Hayward still seemingly on the mend from his serious leg injury. Signing Walker would be a clear upgrade over Terry Rozier, who is a restricted free agent. Rozier showed a penchant to score in bunches in 2018 when Irving was injured, but faded into the background as a bench option when Irving returned. Story continues Walker, 29, could keep Boston in the mix with Toronto, Philadelphia and Milwaukee among the contenders in the Eastern Conference. Of course, each of those teams has significant free-agency decisions around the corner, too. Kemba Walker has spent his entire career in Charlotte but is set to hit free agency. (AP Photo/Chuck Burton) How would Kemba Walker fit in Dallas? The Mavericks are building an interesting young core and would be an intriguing fit for Walker. The team was led last year by Rookie of the Year Luka Doncic , who averaged 21.2 points, 7.8 rebounds and six assists per game. Dallas also traded for Kristaps Porzingis, whose tenure with the New York Knicks was full of special play, injuries and off-court controversies. Still, nobody denies Porzingis’ talents, and the Mavericks will reportedly offer him a five-year, $158 million max contract once free agency opens. Porzingis, who missed all of last year because of an ACL injury, is a restricted free agent who could earn a four-year, $117 million max deal on the open market. Dallas can match any offer he receives from another team. So with the assumption that Doncic and Porzingis will be in place, Walker’s presence could make Dallas one of the most intriguing teams in the West. But all three players are ball-dominant, so the three would have to adapt on the fly and navigate who touches the ball and when. More from Yahoo Sports: Trump disagrees with Rapinoe not singing the anthem Bucks superstar Antetokounmpo named MVP over Harden Why an emerging receiver can boost the Cowboys’ offense How winning ugly could be a good thing for the USWNT |
IDC: Smart-Home Market to Soar Through 2023
The market for smart-home technology has been around for years, but only recently has it started to really gain traction and see unit volumes take off as platforms mature and consumers warm up to the idea of putting speakers, microphones, and cameras all over their homes. Smart speakers are largely credited with leading the way, allowing users to control their smart-home gadgets using voice-activated virtual assistants. The market is expected to continue growing at a compound annual growth rate (CAGR) of 15% in the coming years. Woman setting up Amazon Cloud Cam on a shelving unit Home-monitoring and security devices, such as Amazon's Cloud Cam, are expected to be the fastest-growing category. Image source: Amazon. Smart speakers lead the way -- for now Research firm IDC put out its latest estimates on the smart-home market today, noting that global unit volumes in the first quarter jumped 37% to 168.6 million. "This growth was driven by the growing acceptance of connected devices within the home, including smart TVs, smart speakers, cameras, door locks, doorbells, and many more," according to IDC. Smart speakers, which include smart displays, are growing the fastest, hitting 23.2 million units in the first quarter. Amazon.com (NASDAQ: AMZN) grabbed 22% of that total with 5.1 million units, followed by Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google with 4.1 million units. Amazon and Google remain neck-and-neck in the smart-speaker market, often trading the title of top vendor in any given quarter. Google recently reshuffled its smart-home portfolio under the Nest brand and introduced a new Nest Hub Max . That product launched in the second quarter. "The emergence of smart speakers and more recently smart displays has helped make the smart home market more accessible than ever before," IDC's Jitesh Ubrani said in a statement. "Both Amazon and Google have continued to improve their assistants and improve stickiness with consumers." Story continues Rounding out the top five vendors are China's Alibaba , Baidu , and Xiaomi . Those companies only compete in the Chinese market, which recently overtook the U.S. as the largest smart-speaker market in the world. Smart-speaker growth to decelerate IDC breaks down the smart-home market into three main categories: video entertainment, home monitoring/security, and smart speaker. The bulk of volumes will be in video entertainment, which mostly consists of smart TVs. Category 2019 Estimated Shipments 2023 Estimated Shipments CAGR Video entertainment 346.5 million 424.4 million 5.2% Home monitoring/security 163.9 million 349.3 million 20.8% Smart speaker 138.5 million 206.2 million 10.5% Others 191.7 million 483.7 million 26% Total 840.7 million 1.46 billion 14.9% Data source: IDC. The smart-speaker market is expected to cool off slightly, not unsurprising given its blistering growth in recent years, while home monitoring/security devices should grow the fastest through 2023. Amazon and Google are both positioned to capitalize on that trend, thanks to their growing smart-home portfolios and popular platforms. However, it's worth noting that while many people own and buy smart TVs, a significant chunk of smart TV owners don't actually use the integrated connectivity features because intuitive interfaces aren't exactly TV manufacturers' forte. For instance, roughly 25% of smart TV owners in the U.S. don't use the TV's built-in internet access, according to a 2018 survey from GlobalWebIndex. People prefer set-top boxes and streaming media players. 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 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Evan Niu, CFA owns shares of BABA and Amazon. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and BIDU. The Motley Fool has a disclosure policy . |
US STOCKS-Wall St sinks as hopes fade for rate cuts, trade progress
* Fed's Powell and Bullard dampen rate cut optimism
* Tech leads all three major U.S. indexes lower
* Allergan jumps on AbbVie's $63 bln purchase announcement
* Indexes down: Dow 0.67%, S&P 500 0.95%, Nasdaq 1.51% (Updates to market close)
By Stephen Culp
NEW YORK, June 25 (Reuters) - Wall Street stock indexes fell on Tuesday, led by a sharp selloff in technology shares, as simmering trade concerns and disappointing economic data sent buyers to the sidelines, while the Federal Reserve chairman pushed back on pressure from President Donald Trump to cut interest rates.
All three major U.S. stock indexes ended the session in the red after Powell said the Fed was grappling with whether trade uncertainties and other issues warrant rate cuts.
Speaking at the Council on Foreign relations, Powell also reiterated the Fed's independence, a day after Trump tweeted the Fed "doesn't know what it's doing."
Earlier, St. Louis Fed 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.
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 supported a rate cut.
"Powell and Bullard both made comments that were indicative that we might not see any rate cut in July," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "After last week's meeting, hopes for a rate cut took off and that might not be in the picture next month."
"Likewise, last week there was a higher level of hope that something positive will come out of the G20 meeting," Tuz added. "As the date approaches that optimism is waning a little bit."
Indeed, U.S.-China trade war anxieties found no relief in a White House official's remarks that Trump is "comfortable with any outcome" resulting from a planned meeting with Chinese President Xi Jinping at the Group of 20 summit convening in Japan on Friday.
On the economic front, new home sales 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.
The Dow Jones Industrial Average fell 179.32 points, or 0.67%, to 26,548.22, the S&P 500 lost 27.97 points, or 0.95%, to 2,917.38 and the Nasdaq Composite dropped 120.98 points, or 1.51%, to 7,884.72.
Of the 11 major indexes in the S&P 500, ten lost ground, with technology and communications services seeing the biggest percentage drops.
"Weakness in those stocks shows people getting out of the market, out of ETFs," Tuz said.
Rate-sensitive bank stocks were down 0.6%, 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 25.4%. AbbVie's stock dropped 16.3%.
Tyson Foods Inc and Pilgrims Pride Corp dipped 1.1% and 1.3%, respectively, after the U.S. Department of Justice opened a criminal probe over possible poultry price fixing.
Declining issues outnumbered advancing ones on the NYSE by a 2.01-to-1 ratio; on Nasdaq, a 1.77-to-1 ratio favored decliners.
The S&P 500 posted 30 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 24 new highs and 99 new lows.
Volume on U.S. exchanges was 7.05 billion shares, compared to the 7.02 billion average for the full session over the last 20 trading days. (Reporting by Stephen Culp Editing by Chris Reese) |
Why Shopify, Brighthouse Financial, and Zillow Group Slumped Today
Tuesday was a tough day on Wall Street, with market participants moderating their enthusiasm toward the strength of the U.S. economy. Investors have been optimistic, but comments from Fed Chair Jerome Powell about the possibility of an economic downturn threw some cold water on the positive mood. Some bad news from certain individual companies also weighed on sentiment.Shopify(NYSE: SHOP),Brighthouse Financial(NASDAQ: BHF), andZillow Group(NASDAQ: Z)(NASDAQ: ZG)were among the worst performers. Here's why they did so poorly.
Shares of Shopify lost 9% after stock analysts gave thee-commerce services companypoor marks. Wedbush cut its rating on Shopify from buy to neutral and reduced its price target by $35 to $270 per share. To be clear, the analysts were quite happy about the success of Shopify's business, including its ability to attract merchant customers seeking a competitive advantage over rival services. Yet Wedbush is convinced that the company's share price has risen too far to justify current growth expectations. Even after today's pullback, Shopify's stock has doubled so far this year, and that's making it difficult for new investors to climb onboard.
Image source: Shopify.
Brighthouse Financial saw its stock decline 12%following negative analyst comments of its own. Analysts at Credit Suisse cut their rating on the insurance provider from neutral to underperform, reducing their price target by $13 to $22 per share. Meanwhile, Goldman Sachs was also negative on the stock, with a rating reduction from neutral all the way to sell and a $32 price target, down $7 from its previous mark. Lower interest rates could make it difficult for Brighthouse to get as much interest income, and changes to annuity accounting rules will also likely have an impact on earnings. Until the financial markets show more certainty in their likely future direction, it'll be tough to have complete confidence about what Brighthouse's business will look like in the immediate future.
Finally, shares of Zillow Group were lower by 7%. The company's own real estate market report showed that U.S. home prices fell for the second month in a row, posting a modest 0.1% drop to $226,800 during May. The first decline in April marked the first time in more than seven years that home prices had fallen, and the rate of increase has also slowed over time. Zillow tried to provide reassuring comments, saying that the drop is actually a welcome respite after a sharp and unsustainable climb. Yet Zillow investors seem to fear that competition from other corners could threaten its business, and less promising conditions in housing could contribute to that slowdown at anunfortunate timefor the home information specialist.
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Dan Caplingerhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool has adisclosure policy. |
Trump awards the Medal of Honor to David Bellavia, the first living Iraq War recipient
WASHINGTON Tuesday, President Donald Trump presented the Medal of Honor, the nation's highest military award for valor, to David Bellavia , who served as an Army staff sergeant. Bellavia is the first living Iraq War veteran to receive the award. He received it for his "conspicuous gallantry" during the Second Battle of Fallujah, the bloodiest battle of the Iraq War. In a ceremony Tuesday afternoon attended by members of Congress, administration officials and military leaders, Trump praised Bellavia for his heroism. Thirty-two service members who fought alongside Bellavia in Iraq and 12 who fought with him during the Second Battle of Fallujah were also in attendance. US President Donald Trump presents the Medal of Honor to David Bellavia in the East Room of the White House in Washington, DC on June 25, 2019. Bellavia is receiving the award for actions he took on November 10, 2004 while serving with the US Army in Fallujah, Iraq. (Photo by MANDEL NGAN / AFP)MANDEL NGAN/AFP/Getty Images ORIG FILE ID: AFP_1HU5GB "America's blessed with the heroes and great people like Staff Sgt. Bellavia, whose intrepid spirit and unwavering resolve defeats our enemies, protects our freedoms and defends our great American flag," Trump said. "David, today we honor your extraordinary courage, we salute your selfless service, and we thank you for carrying on the legacy of American valor that has always made our blessed nation the strongest and mightiest anywhere in the world," Trump continued. The audience gave Bellavia a standing ovation after Trump presented him the Medal of Honor. According to the White House, Bellavia enlisted in the Army in 1999 and served in Kosovo before deploying to Iraq in 2004. He was discharged from the Army a year later, in 2005, and co-hosts a daily radio talk show in Buffalo, New York. He is the co-founder of Vets for Freedom, a conservative veterans advocacy group. Bellavia spoke at the Pentagon on Monday about the award and praised his fellow soldiers, though he added that the attention for the Medal of Honor felt "awkward." Medal of Honor: Trump will award David Bellavia, the first living Iraq War recipient "You can be victimized by it, you can become prisoner of all of these things, or you could just say, look, what do I feel comfortable talking about? I know I care about these guys, I know they love me. Let's talk about those people that we love. Let's talk about why this is ours," he said, according to WHAM-TV. Story continues During the Second Battle of Fallujah, Bellavia's platoon was ordered to clear out a block of 12 buildings when it became pinned down by enemy fire. Rather than put one of his own men at risk, Bellavia grabbed an M249 light machine gun and provided covering fire for his fellow soldiers to escape. When they came under fire again from a house full of insurgents, Bellavia ran in with an M16 and killed four insurgents inside. Bellavia entered a room full of propane tanks and plastic explosives. To prevent an explosion, he fought an insurgent hand-to-hand before wrestling him to the ground and stabbing him in the collarbone. Staff Sgt. David Bellavia, of Lyndonville, N.Y., speaks at a news conference at an Army recruiting station in Cheektowaga, N.Y., Tuesday, June 11, 2019. (AP Photo/Carolyn Thompson) ORG XMIT: NYR101 Bellavia recalled in an Army oral history interview, This is not a John Rambo moment. Im really scared. Bellavia's wife, Deanna King, who hosts a radio show in Rochester, New York, accompanied him to Washington for the award ceremony, and she thanked the D.C. Police Department for escorting them. Im not going to lie. A police escort is pretty cool. Thank you @DCPoliceDept pic.twitter.com/NmpWooHPTG Deanna King (@CynicalMother) June 24, 2019 Bellavia's guest at the ceremony Tuesday was Gary Beikirch, a Rochester resident and Vietnam War veteran who received the Medal of Honor for heroism as a Green Beret medic during the defense of Camp Dak Seang. Bellavia was previously awarded a Silver Star for his actions. The presentation of the Medal of Honor came after the Pentagon reviewed valor awards and upgraded them for many service members. Contributing: David Andreatta, Rochester Democrat and Chronicle This article originally appeared on USA TODAY: Trump awards the Medal of Honor to David Bellavia, the first living Iraq War recipient |
MSCI upgrades Kuwait equities to its main emerging markets index
June 25 (Reuters) - MSCI Inc upgraded Kuwaiti equities to its main emerging markets index on Tuesday, which could trigger $2.8 billion of inflows from passive funds.
MSCI also said it will consult on the potential reclassification of the MSCI Iceland Index to Frontier Markets status. (Reporting by Jennifer Ablan; editing by Jonathan Oatis) |
Illinois becomes 11th state to allow recreational marijuana
SPRINGFIELD, Ill. (AP) Illinois' new governor delivered on a top campaign promise Tuesday by signing legislation making the state the 11th to approve marijuana for recreational use in a program offering legal remedies and economic benefits to minorities whose lives critics say were damaged by a wayward war on drugs. Legalization in Illinois also means that nearly 800,000 people with criminal records for purchasing or possessing 30 grams of marijuana or less may have those records expunged, a provision minority lawmakers and interest groups demanded. It also gives cannabis-vendor preference to minority owners and promises 25% of tax revenue from marijuana sales to redevelop impoverished communities. Gov. J.B. Pritzker, whose election last year gave Democrats complete control over state government again after four years under GOP predecessor Bruce Rauner, signed the bill in Chicago amid a bevy of pot proponents, including the plan's lead sponsors, Rep. Kelly Cassidy and Sen. Heather Steans, both Chicago Democrats. "Today, we're hitting the 'reset' button on the war on drugs," Cassidy said. Residents may purchase and possess up to 1 ounce (30 grams) of marijuana at a time. Non-residents may have 15 grams. The law provides for cannabis purchases by adults 21 and older at approved dispensaries, which, after they're licensed and established, may start selling Jan. 1, 2020. Possession remains a crime until Jan. 1, a spokesman for Senate Democrats said. "The war on cannabis has destroyed families, filled prisons with nonviolent offenders, and disproportionately disrupted black and brown communities," Pritzker said. "Law enforcement across the nation has spent billions of dollars to enforce the criminalization of cannabis, yet its consumption remains widespread." On the campaign trail, Pritzker claimed that, once established, taxation of marijuana could generate $800 million to $1 billion a year. He said dispensary licensing would bring in $170 million in the coming year alone. But Cassidy and Steans have dampened that prediction, lowering estimates to $58 million in the first year and $500 million annually within five years. Story continues Carrying the psychoactive ingredient THC, marijuana was effectively outlawed in the U.S. in 1937 and in the 1970s was declared a drug with no medicinal purpose and high potential for abuse. Blacks have been most susceptible since then to "Just say 'No'''-era crackdowns. Pritzker quoted a 2010 statistic from the American Civil Liberties Union that while blacks comprise 15% of Illinois' population, they account for 60% of cannabis-possession arrests. Peoria Democratic Rep. Jehan Gordon-Booth summarized marijuana's recent history as one where "white men would get rich and black men would get arrested." The plan addresses those concerns with the criminal-record scrubbing by giving preference to would-be marijuana vendors in areas of high poverty and records of large numbers of convictions. And 25% of tax proceeds must be reinvested in impoverished communities, while 20% is dedicated to substance-abuse treatment programs. "What we are doing here is about reparations," Gordon-Booth said. "After 40 years of treating entire communities like criminals, here comes this multibillion-dollar industry, and guess what? Black and brown people have been put at the very center of this policy in a way that no other state has ever done." Police organizations are wary, concerned about enforcing driving under the influence laws and arguing technology for testing marijuana impairment needs more development. Law enforcement organizations fearing black-market impacts were successful in killing an earlier provision that would have allowed anyone to grow up to five marijuana plants at home for personal use. Police said they'd have difficulty enforcing that, so the bill was amended to allow five plants to be maintained only by authorized patients under the state's medical marijuana law. They previously could not grow their own. Ten other states and the District of Columbia have legalized smoking or eating marijuana for recreational use since 2012, when voters in Colorado and Washington state approved ballot initiatives. This year began with promising proposals in New York and New Jersey , but both fizzled late this spring. Despite a statewide listening tour on the issue by Pennsylvania's lieutenant governor last winter, the idea never took flight. Vermont and Michigan last year were the latest states to legalize marijuana. Vermont did so through the Legislature the first time it wasn't done through a ballot initiative but while it allows residents to grow small amounts for themselves, it didn't establish a statewide distribution system like Illinois did, licensing dispensaries. Other states license dispensaries too, but not all. Illinois' 55 medical-cannabis dispensaries get first crack at licenses to sell under the new law because they're proven business concerns, Cassidy said. They may apply to dispense recreational pot at their current stores and for a license for a second location, meaning the state could have 110 recreational pot outlets by the time sales start Jan. 1. In October, the application period for 75 more dispensaries opens. No more would be allowed to open after that until the state conducts a review of the rollout. ___ The bill is HB1438. Online: https://bit.ly/2Xv5bxM ___ Follow AP's complete marijuana coverage: https://apnews.com/Marijuana ___ Follow Political Writer John O'Connor at https://twitter.com/apoconnor . |
Carl Icahn Responds to Caesars and Eldorado Merger
The activist Caesars investor is 'pleased' |
18 of the best white jeans to rock this summer
While summertime weather typically calls forswimsuitsandsundresses, white jeans can keep you covered during cooler nights or at the office where the air conditioner seems to be stuck on high (seriously, would it hurt to turn it down?).
If you're still searching for the best white jeans—you know, the ones that have a little stretch, aren't totally see through and go with everything—we've got you covered. Our favorite white jeans range in price, from $37 to $225, but are all loved for one reason or another.Madewell's Classic Straight Jeans ($125)andJoe's Skinny Jeans ($188), for example, are favorites of the AOL Lifestyle team for their quality and flattering fits.
Another fan-favorite,Everlane's High-Rise Skinny Jean ($68), racked up almost 5,000 reviews, most of which applauded the comfort and fit.
"These are hands down the best jeans I’ve ever worn," wrote one reviewer. "[They fit] snug but flexible, and they’re effortlessly comfortable. I don’t have to worry about pulling them up, or adjusting them all the time. They fit just right and make me feel fabulous."
TheJ Brand Maria High-Rise Skinny Jeans ($132)are aBloomingdale'sbest-seller and are rated high for their stretch and durability.
"These are my favorite jeans. I have been wearing these for the last 10 years," one reviewer wrote. "They fit me perfectly, hold in the right places of my tummy that I am self conscious about and they last forever. I have been wearing my last pair for 7 years and they are JUST starting to fade."
You can shop the best white jeans, according to our editors and reviews below! |
Eldorado Is Building a Better Casino Giant; McDonald’s Has Built a Better Burger
On Sunday, regional casino companyEldorado Resorts(NASDAQ: ERI)announced it was buying larger peerCaesars Entertainment(NASDAQ: CZR). And while that may seem counterintuitive, it could be a winning combination.
Not counterintuitive is this news fromMcDonald's(NYSE: MCD): Quarter Pounder sales are up 30% since it switched from frozen beef to fresh. But the adjacent plant-based meat alternative business is still in a state of evolution, and vegetarian-burger makerBeyond Meat(NASDAQ: BYND)has lost almost 30% of its market cap in a week.
In thisMarket Foolerypodcast, host Chris Hill and senior analyst Dan Kline -- a man well versed in both casinos and burgers -- discuss the details investors need to be aware of regarding what's happening with all of these companies. They also weigh in on the peculiar logic of Hollywood that allowed analysts to view the almost $240 million thatToy Story 4earned in its opening weekend -- the biggest-ever debut for an animated movie -- as a disappointment.
To catch full episodes of all The Motley Fool's free podcasts, check out ourpodcast center. A full transcript follows the video.
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This video was recorded on June 24, 2019.
Chris Hill:It's Monday, June 24th. Welcome toMarket Foolery! I'm Chris Hill. Joining me in studio today, up from Florida, it's Dan Kline. Good to see you!
Dan Kline:Nice to see you!
Hill:Look at you, all tan!
Kline:I'm always tanned! It's always summer in Florida.
Hill:That's true! My people, we're pale, we don't do that.
We've got entertainment news, we're going to talk about the current state of the burger industry. We are going to start with the Deal of the Day, because once again, Merger Monday has lived up to its title. This time in the casino industry. Eldorado is acquiring Caesars Entertainment. Maybe this shouldn't be curious. It's a little curious, just from the standpoint of, from a market cap standpoint, this is the smaller company acquiring the larger company; certainly the better-known company in Caesars. I think the people at Eldorado recognize that, because they've immediately come out and said that the resulting casino company will be branded Caesars.
Kline:Eldorado, I knew them as a furniture chain. I'd never even heard of them as a casino company. Their casino properties are in offbeat places for the most part. It marries really well with Caesars. Caesars has been under fire for underperformance, there's been a lot of pressure to do something to change management. This is actually the perfect deal. It gives Caesars a presence in places like Florida. I live down the street, about an hour, from six or seven different off-brand secondary casinos and one Hard Rock. I usually go to the Hard Rock. But now, I'm going to go to the Isle Casino, which is an Eldorado property, because I am a Caesars loyalty member. I think that's the part of this that's being underplayed. It's going to give Caesars a presence in a lot of markets where people are going to say, "Gee, I'm in Louisiana. Which casino am I going to go to? Oh, I'll go to the one where I already have the card, where I'm already getting perks." So I think there's a huge synergy here.
The other piece of it is, this gives them sports gambling potential, bigger imprint, a lot more states, and they have the infrastructure. Even places that are going to let you do it electronically are probably still going to need a casino to provide the infrastructure. This positions Caesars really well.
Hill:I'm going to pump the brakes for a second. I'm curious, just in this regard. When you look at what's happening with these stocks today, shares of Eldorado down about 10%, and it's entirely possible, if not probable, that people think they are paying too much for this. The buyout price for Caesars is $12.75 a share. Right now, it's trading about 10% to 15% below that. Let's put it in gaming terms. If you're at a casino, are you betting that this deal goes through as it is currently constructed?
Kline:I do think the deal is going to go through. I think the problem with the casino market overall is oversaturation. We were talking this morning, Matt Frankel and I, often on our podcast, about the New England area. When I lived in New England three years ago, there was Foxwoods and Mohegan Sun about an hour away. There was Atlantic City about five, six hours away.
Hill:Atlantic City, not in New England.
Kline:That was it. Now there's anMGMin Springfield, which would have been 25 minutes from where I lived; the casino in Everett, Mass., which is a Boston suburb, opened today. Who's going to close? It doesn't seem to me that the casual buses of old people who went to Mohegan Sun to have lunch and play bingo, why wouldn't they go to Springfield or Everett? It does feel like there's going to be some shakeout in the industry. But if you look at where a lot of the Caesars and Eldorado properties are located, they're the only player in town. We were at the Horseshoe last night. It's the only downtown Baltimore casino. It's near the baseball stadium. It's very well-positioned for what it is. Same thing with the one near me in Pompano Beach. It's off from the concentration in the Miami area of all the casinos. They all have a natural constituency. But I wouldn't buy this deal for what's going to happen two years from now, I'd buy this deal for 10 years on the horizon when we've figured out sports gambling and hefty casino companies, you're going to see a ton of consolidation, and you're going to see closures. I think Caesars will be a winner because of that.
Hill:I'm glad you mentioned that. That's where I was going next. Assuming this deal goes through, we now have the largest owner and operator of U.S. casinos. This seems like one of those industries where being bigger is better. I was going to ask you, should I be buying this? Should I be buying shares of Eldorado on the drop here? But it seems like, on the flip side, they're going to have to spend a lot of money, not just because Caesars comes with a lot of debt, but also because they may want to do some level of rebranding. Or, I guess I should say, we expect they're going to do some level of rebranding. It's just a question of how much. They're going to be spending money.
Kline:Yeah. And they have to integrate the loyalty programs. They have to think about whether they're going to change some of the names. Does it make sense to have an Eldorado, or should it be a Harrah's? I don't think you can underestimate the value of the Caesars loyalty program, which was just totally revamped. It's one of the more generous ones in the industry. They can use that to market. They know where I live. They can now say, "Hey, there's a casino 45 minutes down the road. Would you like to go to the Japanese restaurant there? You've eaten there before, how about going? By the way, here's 50% off tickets for Comedian X that you like." There's a lot of ability to manipulate people. I know that if it's not like Consumer Electronics Show, I don't pay for a room in Vegas at the lesser Caesar hotels. I'm not some big-ticket gambler. Their ability to say, "Hey, it's a Wednesday night. Do you want to go stay at this property?" that's pretty strong. And adding all these states to it makes their loyalty program a lot more appealing.
Hill:That's another one of those sneaky tech companies. In the same way that for years,Domino'swas this sneaky tech company because they were doing such an amazing job with their mobile app.
Kline:The good thing is, Caesars actually has a nice product compared to Domino's. We've talked about this before. Domino's whole business was, convenient pizza is better than good pizza.
Hill:Convenient passable pizza.
Kline:Right. In this case, Caesars actually has a nice casino. If you're in Vegas, Caesars has everything from the lower-rent casinos to the upscale. I know I am perfectly happy staying at Harrah's. But when we're there in October, Matt's wife is coming, so we're going to stay at Harrah's for the point way there, then he's going to go stay at one of the nice Caesars branded properties once his wife comes. That'll cost him as opposed to the completely comped. But they really have the full circle of stuff.
You talked about the tech side. We don't know where we're going with gambling and apps. Can you place a sports bet from your phone two years from now? If that happens, it's going to be very logical to tie it into existing casino companies.
Hill:One more sign that Matt Frankel is a smart man.
Let's move over to the burger industry. A couple of things going on. McDonald's announced that sales of the Quarter Pounder have risen 30% since the company switched from frozen patties to fresh beef. You have to believe that on some level, the people who run Five Guys,Shake Shack, Culver's, all these other burger businesses that have been using fresh beef for a long time, they're rolling their eyes like, "Yeah, no kidding. We already knew that..."
Kline:It's the first time in a decade they've gained burger share. There's no statistic for burger share. They're telling you this, but that's a very soft number. But yeah, who would think, make your product less terrible and more passable? We both have kids. There is a certain point in the age of most kids where McDonald's has to be part of your repertoire, whether that's just in an airport where they're not going to eat anything else that's available, or it's 5:30 p.m., there's homework to do, and you're just stopping at McDonald's. To be able to offer Mom and Dad a slightly passable, less terrible burger -- I know my kid won't go to Five Guys because he won't eat a cheeseburger. He wants Chicken McNuggets or some variation of fried chicken things. There's a lot of places that aren't available to us. If, as a parent, I had to go to a McDonald's, but at least I could get a burger that's not a grey circle.
Hill:Couple this with the fact that in the past week, shares of Beyond Meat have fallen nearly 30%. I look at it and I think, "Yeah, it still seems outrageously priced." But I'm curious where you think all of this is going. Part of this McDonald's story was a conversation with one of their spokespeople about this industry, the non-meat burger, which McDonald's is already doing in Germany. They have said publicly, "We don't have any current plans to roll this out beyond Germany." But I have to believe that they are watching it closely.
Kline:They will, but it's a supply issue. Beyond Meat cannot supply McDonald's right now. Again, I'm not speaking for them. Maybe they can.
Hill:I'm not speaking for them either, and I know they can't. This is McDonald's we're talking about!
Kline:I would assume that McDonald's is talking with the various players in that space and they're figuring out when they can roll this out. You cannot cede this to Burger King. I've talked about this on the various shows. I actually think the fake burger, it's kind of like, every restaurant had a gluten-free menu for a while and dropped it. Or you go and you're like, "Can I get the gluten-free bread?" And they're like, "Do we have that in the back?" I don't think the person who wants a meatless burger is seeking out McDonald's or Burger King. I think it's a convenience for when they have to be there. That doesn't speak to me of something that's going to be on the menu six months from now. This feels like something that's going to fall off. Not that there's not a huge demand for it, but that demand is going to be at nicer places.
Hill:The counter to that is the example that you used with your son. We can't go to McDonald's because they don't have the meatless version that so-and-so wants when you're on a road trip. And all of a sudden it's like, oh, they have it now.
Kline:Maybe I'm wrong, but I think the market demand for a fresh meat burger from someone who was begrudgingly going to McDonald's is a lot higher than the demand for a meatless burger. I go back to, every time McDonald's has tried to make healthy salads a focus, it doesn't work. Two years later, they come out and say, "Hey, turns out people don't want to come here for healthy." I don't think a product's going to work if it isn't luring a certain amount of people off the street. I think those people are always going to chooseChipotleor places that are more naturally meatless options. And, maybe a little snobby, better? There's probably a correlation between vegan and snobby some of the time, not to be too much of a jerk. I think there might be a little disdain for McDonald's in that crowd?
Hill:I think food snobs come in all stripes and sizes. There are pizza snobs. I'm a little bit of a bagel snob. There was a great piece inThe Washington Postover the weekend about great casual restaurants in the D.C. area. One of them is this relatively new place in Washington, D.C., It's a bagel place, and it's called Call Your Mother. And the write-up ofThe Washington Postsaid, in New York City, bagels are religion. In Washington, D.C., bagels are a prayer, as in, "I wish to God I could find a good bagel somewhere in this city."
Kline:Well, don't come to Florida. Florida is the land of your mother from New England or New York overnights you bagels.
Hill:Just to wrap up on this, I don't want to overlook the point you made about the supply chain. It's worth remembering that McDonald's is such a large business that it has in the past, and will probably continue in the future, to single-handedly sway the beef market, just in terms of beef as a commodity and beef prices. McDonald's has that power. So, yes, once they decide, "We're going to flip this switch," even if it's just on a McRib-level test, just testing it for one month, that is still going to be a massive order for someone to fulfill. Whether it's Beyond Meat or someone else or some combination thereof, and it just gets branded as a McDonald's meatless burger, whoever steps up to do that, they'd better nail it.
Kline:It's a tough call. If you remember, a couple of years ago, they did the Mighty Wing.
Hill:I don't remember that at all.
Kline:They tested chicken wings. It was a national rollout. And that actually forced Buffalo Wild Wings to offer deal prices on boneless wings, because the price of wings went up. They were running all their promotions around boneless wings, because McDonald's single-handedly caused the market -- and then, when they got out of it, they actually had a huge surplus, so they kept them on the menu without promotion just to get rid of, I guess they had a lot of frozen wings somewhere. So, yeah, absolutely. They can completely change how everything goes in this entire industry. It still won't make Beyond Meat worth its current valuation.
Hill:Toy Story 4had a "disappointing" weekend. Disappointing is in air quotes. I put it in air quotes. It's an actual quotes because every story I saw this morning about the opening weekend forToy Story 4talked about how taking in nearly $240 million worldwide was a disappointment.
Kline:It's the highest opening for an animated movie ever, globally. [laughs] Here's the thing.Toy Story 4is the four-quel to a movie that came out long enough ago that the original audience is taking their kids. This is a stupendous opening. The reason it's being perceived as disappointing is because it isn't front-loaded in the U.S. because the timing of the release wasn't Fourth of July weekend. If you look at the $138 million it made in the U.S. this week, it will probably make $90 million or something like that next week. And when you're sitting at the end of week two, which for most people, this will be a four-day weekend. You've got a Thursday Fourth of July. Even people who go to work on Friday, they're not working that hard. There is a lot of opportunity to see this movie. Again, when didToy Story 3come out? A decade ago?
Hill:Less than that. I want to say 2012, 2013, something like that. But yeah, the span of time, to your point, is more than 20 years.
Kline:This is a movie that people remember nostalgically. They're taking their kids. Adults are going to see it just out of fondness. There isn'tAvengers-level pressure to go see this on opening night because you're not getting any answers. You wanted to seeAvengersbecause you needed to know, does Hawkeye die?
Hill:How does it all end?
Kline:Right. What happens to Iron Man? Can Spider-Man fly now? What's going on? In this, there's no big cliffhangers. I am pretty sure the space guy played by Tim Allen, nothing major happens to him. I've never seen these movies.
Hill:Really?
Kline:Toy Story 3was the second most bored I've ever been in a movie. The most bored isUp, a movie where nothing happens.
Hill:Oh, my goodness! I thought you had a soul, Dan!
Kline:No, I don't. I am not in the target audience for these films. Again, I have a kid, I've seen most of them. I likedCars, the original one. That one basically had the Rocky plot. That makes me cry whether it'sAir BudorRockyorCars. It always works every time. But to say this movie is a disappointment, what would have made you happy? Bigger thanAvengers? It's on track to do $900 million to $1 billion at the box office. There is no such thing as a $900 million disappointment.
Hill:I'm still flummoxed by the fact that you cried atAir Bud, but you thinkToy Story 3--
Kline:[laughs] I probably cried atAir Bud 6: Let's Go Budor whatever it was called.
Hill:Wow! Yeah, it is pretty amazing to think about how well the Pixar division of Disney has performed for so long, that this kind of box office is viewed as a disappointment. I went and sawToy Story 3opening weekend when my kids were younger. They're obviously older now. I thought about going this weekend, wasn't able to make it work. But I also know that this is a movie that I will see in the theater this summer because at least one day this summer, it's going to rain. When I go on vacation next week, whenever it is. This is one of those things where it's like, yeah, this has the longer tail.
Kline:Here's the thing -- I don't want to see it. My kid is 15, and he doesn't want to see it. And I'd say there's a 75% chance we see it for exactly the same reason. There's going to be a Wednesday afternoon where it's pouring, we've already intentionally seen all the movies we want to see, where it's like, "Fine, let's just go seeToy Story 4. How bad can it be?"
Hill:By the way, last week, because I love movie previews, there's a preview for, rememberTrolls, the animated movie?
Kline:Yes.
Hill:They've made a sequel to that.
Kline:I've seen the trailer.
Hill:I just thought, "Oh, God, this should be shown to anyone who thinksToy Story 4is a disappointment." Sequels are hard. Animated sequels are hard. If you don't think they're hard, just check out two and a half minutes of the Trolls sequel. That looks like a dumpster fire. A colorful, animated dumpster fire.
Kline:When I saw theTrollstrailer, I actually had to look up whether it was a sequel or not. TheTrollsmovie was so forgettable. [laughs] The one I've got hopes for is,Sonyhas thePeepsmovie coming out later this year.
Hill:Really? There's aPeepsmovie?
Kline:They could have moved it back, but that's what it was originally slated for. Yes. When you think of characters with personalities, you think thePeeps.
Hill:We're talking about the marshmallow?
Kline:The marshmallow candy. [laughs]
Hill:You know what? I won't bet against that. As long as there are college students and a growing market for marijuana and marijuana-based products, I feel like there's hope for the Peeps movie.
Kline:I don't know. It just feels like we're trying to make anything an animated movie. Can'tThe Flintstonesget a movie? Why doesScooby-Dooalways have to be direct to video? It feels like there's some great animated properties out there, and we're trying to force-feed aCap'n Crunchmovie.
Hill:But it's interesting to see how, you have some studios that are saying, "We bought the rights to Peeps. We own that brand now. We're going to option a movie out of that and just build it out of nothing," whereasDisneyis basically taking past hit animated movies and saying, "Let's roll the dice with live action." They've gotLion Kingcoming out later this year. I think in 2020, a live-action version ofMulanis coming out. It's interesting to see how different businesses react.
Kline:It makes a lot more sense to me thanAngry Birds 3.
Hill:As long as a movie makes money, there will be pressure for a sequel. Dan Kline, always good talking to you! Thanks for making the trip!
Kline:Thanks for having me!
Hill:As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. That's going to do it for this edition ofMarket Foolery! The show's mixed by Dan Boyd. I'm Chris Hill. Thanks for listening! We'll see you tomorrow!
Chris Hillowns shares of Walt Disney.Daniel B. Klinehas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Chipotle Mexican Grill and Walt Disney. The Motley Fool has adisclosure policy. |
Illinois becomes the latest state to legalize marijuana, these states may follow
Illinois became the 11th state in the U.S. to legalize recreational marijuana on Tuesday after Governor J.B. Pritzker signed the regulatory bill legislators passed at the end of May. Legal recreational marijuana sales will begin in Illinois on January 1, 2020.
While many other states have legalized marijuana through voter referendums that can leave details to be agreed upon after the fact, Illinois became the first state in the country to legalize through the legislative process.
“We did something that no other state in the nation has been able to do,” Pritzker cheered at the signing ceremony.
Other states looking to replicate the bipartisan legalization bill Illinois was able to pass haven’t been as successful, leaving many wondering what state might become the 12th state in the U.S. to legalize recreational marijuana.
During Yahoo Finance’sThe Business of Cannabisspecial earlier in June, CEOs from the leading marijuana companies, including Canopy Growth (CGC), Curaleaf (CURLF) and Chicago-based Cresco Labs weighed in on that question with differing opinions.
Canopy Growth CEO Bruce Linton and Acreage Holdings (ACRGF) CEO Kevin Murphy agreed that New York would be the next state to legalize recreational marijuana, while Curaleaf CEO Joe Lusardi and Cresco Labs CEO Charlie Bachtell argued New Jersey would be next to change state law.
“The electorate is going to go to the ballot box and continue to vote for cannabis laws,” Lusardi said. “It’s going to get more popular every single month and I suspect we’ll have more medical states, more recreational states in 2020 and the pressure will mount on the federal government to address this issue.”
In the weeks that followed their comments, New York legislators pushing for legalization through the legislative process suffered many setbacks despite having support from Governor Andrew Cuomo on the issue. New York state legislators failed to agree on where the $1.7 billion in estimated annual recreational marijuana sales would be directed and opted to pass a bill decriminalizing small amounts of marijuana instead.
Proponents of marijuana reform in New York have defended the decision to abandon legalization efforts in favor of decriminalization as less of a failure as much as it is a step in the right direction.
“Six years I’ve been trying to get it done. We got it done, and it’s a great step forward,” Cuomo said, referring to decriminalization. Efforts to re-introduce legalization plans could resume with the next legislative session.
Cuomo pointed to the failure of politicians in New Jersey to legalize marijuana back in May as a reason for stalled progress in New York.
Legislators in New Jersey resigned to let voters decide the fate of legalizing recreational marijuana through a November 2020 referendum vote.
Zack Guzman is the host ofYFi PMas well as a senior writer and on-air reporter covering entrepreneurship, startups, and breaking news at Yahoo Finance. Follow him on Twitter@zGuz.
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Streaming boom becomes 'holy grail' for resurgent music industry
After years of erosion, music sales are on the rebound — thanks in large part to amassive boost from worldwide streaming.
Once shunned by a number of high-profile artists, digital music is starting to pay dividends to big-name acts and smaller artists alike, experts say. One reason is that old industry standards have been streamlined for the digital era, ensuring thatmusicians are more fairly compensated for their music.
The other is the white-hot streaming industry, which has led consumers to pay for music via subscriptions. BuzzAngle Music, a firm that tracks industry performance, found that on-demand audio streaming soared41.8% in 2018, topping 534 billion streams.
Yet as the industry reverses a decline in sales, questions remain about how much more impact streaming will have on the industry.
There’s a lot at stake — especially as juggernauts like Spotify (SPOT), Apple Music (AAPL), Amazon Music (AMZN) and YouTube (GOOG) significantly boost market share in an industry once dominated by AM-FM radio and large record stores.
According to Ben Swinburne, a managing director of research at Morgan Stanley (MS), it’s all about global growth and converting consumers from free platforms to paid.
“It’s a growth industry, and we expect that growth to be driven by 20% growth in subscription streaming revenue. That’s really the driver,” Swinburne told Yahoo Finance in a recent interview.
“The streaming companies are global companies concerned with global growth,” he added.
Over the last several years, consumers have increasingly opened their wallets on recorded music, which as a category sawrevenues surge by 12% last year to over $9 billion, according to Recording Industry Association of America (RIAA) data.
The driver behind that surge were paid streaming subscriptions, the RIAA noted.
“Growth of streaming services is amazing, subscription streaming is very positive for us,” Richard James Burgess, the CEO of the American Association of Independent Music (A2IM), told Yahoo Finance recently.
A2IM helpedchampion the legislation that updated copyright laws, which are now more lucrative for independent artists.
“In general, there’s very high optimism right now,” Burgess said on the sidelines of theLibera Awards, a celebration of independent music that was the culminating event of A2IM’sIndie Week.
Streaming services look like a good investment if they can continue to innovate and drive music discovery, which is another way in which they’ve remade the business. A significantly larger catalog of music is now available for music consumption in a way that it never has been before.
“Music discovery is the holy grail for any music business. How do you as a distributor, and for that matter as an artist, find the right listener and deliver the right song at the right time?” asked Morgan Stanley’s Swinburne.
“In a world of 40 million tracks, it’s overwhelming to try to navigate that,” he said. “For a lot of people, they don’t have time to figure out who’s cool and what’s hot.”
That’s why services like Spotify’s “Discover Weekly” playlist, which curates songs from artists based on users’ listening habits, have allowed many more artists to find their way to having their music heard.
“Some of the things that technology brought really decimated the industry, and really was responsible for a lot of the drop-off, said Michael Huppe, president and CEO of SoundExchange, the premier digital performance rights organization in the world.
Now, “that technology is part of the recovery,” Huppe added.
While the business used to be built around a model in which labels were just attempting to drive sales of records, listening itself has become increasingly important, he added.
It’s “the whole kahuna,” Huppe said.
Although streaming has revitalized much of the business side of the industry, it is the artists and their innovation who continue to make this growth possible.
For some artists, the path to accepting streaming has been hard-fought, with most objections having to do with money.
Taylor Swiftfamously withheld her “1989” album from Apple Musicuntil it agreed to pay royalties to artists. Meanwhile, the late Prince was notorious about blocking his music from major platforms, an effort whichprevailed until after his death.
Streaming services have actively attempted to improve their reputation among artists and songwriters, but there are still strains. Recently, most of the major streaming platformslegally objectedto royalty raises for songwriters, which were agreed upon by the U.S. Copyright Royalty Board in January of 2018.
“Everyone knows that the [streaming] services could pay more money, at least from the music industry’s perspective,” said Joe Conyers III, the Co-Founder and Chief Strategy Officer of Songtrust, the largest music publishing administrator in the world.
“We’re just trying to make it equitable, fairer, truthful, and more transparent. Bring some trust back into the music industry,” he added.
Streaming services are forced to walk a difficult line between their bottom lines, and maintaining positive relationships with the artists that undergird the success of their platforms.
Still, simple math may open up new strains between streaming companies and the music industry. Technology has made it cheaper for consumers to enjoy music, but it’s also shrunken elements of the business.
In 2000, music was a $14 billion business (or $20 billion adjusted for inflation). Today, the industry sits at $10 billion.
Meanwhile, a report from Swinburne showed that in 2000, U.S. consumers spent $8 per month on music. Now, they spend $4.
“I think there’s a path back to and beyond the revenue in 2000,” said Huppe, who said that streaming isn’t going anywhere.
“There’s an immense amount of wealth being created by these services. The question is, how do we get a fair part of it to come down to the people who underpin the music,” he added.
Calder McHugh is an Associate Editor at Yahoo Finance. Follow him on Twitter:@Calder_McHugh.
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PG&E's lenders offer billions, new name to rebrand utility
SACRAMENTO, Calif. (AP) — Pacific Gas & Electric's key lenders on Tuesday offered a $30 billion plan to pull the utility out of bankruptcy and give the tarnished company a new name. The proposal filed in U.S. Bankruptcy Court would set aside up to $18 billion of that $30 billion to pay claims on the 2017 and 2018 wildfires caused by PG&E equipment, the Sacramento Bee reported. The plan offered by PG&E's leading bondholders would compete with an alternative that the newspaper says is being drafted by PG&E. Normally the company in bankruptcy has first crack at proposing an exit plan, but the bondholders said in a court filing that they filed their plan because PG&E has "wasted crucial time needlessly." The bondholders also want to rebrand PG&E as Golden State Power Light & Gas Company. Asked about the bondholders' plan, the utility said in a statement that it was considering all options as it navigates the bankruptcy process. The new proposal came four days after Gov. Gavin Newsom, a Democrat, floated the idea of a $24 billion package to deal with the costs of future wildfires, paid for by ratepayers and shareholders of PG&E and the other two big electric utilities in California. Newsom's plan does not offer any cash for PG&E's existing liabilities but would revise state law to give utilities more certainty about recovering costs from ratepayers — enough stability that Newsom believes will allow PG&E to borrow the money it needs to pay existing claims, according to the Bee. The bondholders include some of the biggest investors on Wall Street, including Elliott Management, Pimco and Apollo Global Management. They have been quietly promoting a PG&E restructuring plan for weeks in conversations with legislators, Newsom's aides and others. Tuesday's court filing marks the first time they have taken the proposal public. "Substantial new capital must be infused into the company," the bondholders said in their court filing. Story continues The governor's office had no immediate comment on the bondholders' proposal. Like Newsom's plan, the proposal is "ratepayer neutral" — meaning, customer rates would not go up to pay the costs of getting PG&E out of bankruptcy. But ratepayers would pay: The plan calls for a $2.50 monthly charge, a feature of PG&E bills since the 2001 energy crisis, to be extended for several years to help raise dollars for a wildfire insurance fund proposed by Newsom last week. That fund would help pay claims for future fires. ___ Information from: The Sacramento Bee, http://www.sacbee.com |
Enterprise Products to Pay Back Debt with Notes Offering
Enterprise Products Partners LPEPD announced that it has priced senior notes, with aggregate principal of $2.5 billion, which was offered to the public. The partnership expects the offering of the notes to consummate by Jul 8, 2019.
Of the aggregate amount, the notes with $1.25 billion of principal amount will likely mature by Jul 31, 2029. The partnership added that the senior notes will be priced at 99.955% of par value. The notes will carry a fixed interest rate of 3.125%.
Another senior note, with $1.25 billion of principal amount, is expected to mature by Jan 31, 2050. The notes are expected to be priced at 99.792% of par value and will carry fixed interest rate of 4.20%.
The partnership added that it will utilize the net proceeds from the senior notes offerings for paying back debt. In other words, the net proceeds will be utilized for repaying the outstanding amount under commercial paper program of the partnership. The proceeds will also repay the Senior Notes LL, with principal amount of $800 million, which will mature by October 2019. Enterprise Products added that the net proceeds will be employed for capital investments to support organic growth.
Enterprise Products Partners L.P. Price
Enterprise Products Partners L.P. price | Enterprise Products Partners L.P. Quote
Headquartered in Houston, TX, Enterprise Products is among the leading midstream energy infrastructure providers. The partnership owns pipeline networks, spreading across 49,200 miles and carrying natural gas, oil, natural gas liquids and petrochemicals.
Presently, the stock sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include Chevron Corporation CVX, Helix Energy Solutions Group, Inc. HLX and Calumet Specialty Products Partners, L.P. CLMT. While Chevron carries a Zacks Rank #2 (Buy), Helix Energy and Calumet Specialty sport a Zacks Rank #1.
Chevron beats the Zacks Consensus Estimate of earnings in three of the past four quarters.
Helix Energy is likely to see earnings growth of 47.4% through 2019.
Calumet Specialty surpassed the Zacks Consensus Estimate of earnings in the past four quarters.
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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 reportEnterprise Products Partners L.P. (EPD) : Free Stock Analysis ReportCalumet Specialty Products Partners, L.P. (CLMT) : Free Stock Analysis ReportHelix Energy Solutions Group, Inc. (HLX) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
UPDATE 3-Kuwaiti equities to be in main MSCI emerging markets index from 2020
(Adds market reaction, analyst note, adds dateline)
DUBAI, June 26 (Reuters) - MSCI Inc said on Tuesday it would upgrade Kuwaiti equities to its main emerging markets index in 2020, a move that could trigger billions of dollars of inflows from passive funds.
The index compiler will include the MSCI Kuwait index in the emerging market index in the May 2020 semi-annual index review.
MSCI, the world's largest index provider, whose emerging-market group of indexes has about $1.8 trillion of assets tied to it, also said it would start a consultation on reclassifying the MSCI Iceland Index to Frontier Markets status. It said it would announce the results of this by Nov. 29.
Kuwait's Market Development Project was implementing several regulatory and operational enhancements in the Kuwaiti equity market, said Sebastien Lieblich, global head of equity solutions and chairman of the MSCI Equity Index Committee.
MSCI expects Kuwait to introduce more reforms before the end of 2019, such as introducing omnibus accounts that would allow foreign investors to trade while remaining anonymous, offering the same privileges that local investors now have.
The Kuwaiti capital market regulator has already announced plans for such facilities to be available to the wider market by November, Arqaam Capital said in a note.
"These enhancements have significantly increased the accessibility level of the Kuwaiti equity market for international institutional investors," Lieblich said.
The Kuwaiti market has outperformed markets in the Middle East this year in anticipation of the MSCI move.
The benchmark premier index is up about 20% so far this year. It was down 0.5% in early trade on Wednesday.
"MSCI EM inclusion could represent the biggest ever liquidity event for Kuwait's stock market," said Salah Shamma, head of investment MENA at Franklin Templeton Emerging Markets Equity, adding that a 0.5% representation in the MSCI EM index could attract investor flows of about $10 billion.
MSCI said Kuwait's plans also included introducing central clearing counterparty and making available stock swaps, stock lending and short-selling facilities. (Reporting by Jennifer Ablan in New York and Saeed Azhar and Davide Barbuscia in Dubai; Editing by Leslie Adler and Edmund Blair) |
What's Next For PG&E? Bondholders Look To Forge New Path For The Company
PG&E Corporation(NYSE:PCG) rallied another 1.4% on Tuesday, and the stock is now up more than 50% from its January lows as investors grow increasingly confident that the company’s bankruptcy filing earlier this year will not wipe them out.
On Tuesday, PG&E bondholders filed a newfinancial proposalfor exiting bankruptcy that serves as an alternative to the plan the company is working on.
A Unique Bankruptcy
PG&E’s decision to file for bankruptcy came as the company faced roughly $30 billion in potential liabilities related to California wildfires in 2017 and 2018.
Given that the company has an obligation to keep the lights on for California residents, PG&E had limited options for paying its near-term utility operations and also covering sudden wildfire liabilities.
As a result, PG&E had a liquidity crisis, even though the value of the company’s assets more than covered the amount of its liabilities — a unique situation for a company in bankruptcy.
The bondholders’ plan includes renaming PG&E “Golden State Power Light & Gas Co."; appointing a new board and new management team; selling $1 billion in real estate assets; setting aside $18 billion to a trust dedicated to past wildfire claims; and committing $4 billion to a statewide fund committed to future wildfire claims.
Gov. Gavin Newsom proposed the California liability fund and said utilities would need to spend $3 billion on wildfire safety measuresto qualify.
The Path Forward
The PG&E bondholder plan would be funded by $18 billion in cash from the group of investors, $2.2 billion in insurance payouts and $9.5 billion in new debt.
The bondholder proposal comes after PG&E has dragged its feet on unveiling its own plan to emerge from bankruptcy.
Last week, Bloomberg reported PG&E is planning a $14-billion compensation fund for people impacted by the wildfires and is considering a potential $31-billion restructuring plan.
Earlier this month, PG&E announced a $415-million wildfire liability settlement with the city of Napa as part of its bankruptcy plan. The company may be waiting for the state of California to potentially change its inverse condemnation laws, a topic of debate for the state after 2017 and 2018 wildfires left utilities like PG&E in dire financial straits.
PG&E has until Sept. 26 to file an official bankruptcy plan with the courts, but the bond investors responsible for the alternative plan — including Pacific Investment Management Co., Elliott Management Corp. and Davidson Kempner Capital Management — hope their plan can allow the company to emerge from bankruptcy before the end of 2019.
An Expert Take
Earlier this year, Robin Deshayes, president and chief strategy officer of Miltonian Capital Management,told Benzingathat California and its utilities need to agree on a solution moving forward that reduces the possibility that every major wildfire in the state creates a financial crisis for utility companies.
“If these utilities don’t have access to the debt markets, they can’t finance their operations,” she said.
While California sorts out its mess, Deshayes said PG&E's stock will serve primarily as a risky, volatile trading vehicle that reacts to the latest headlines.
Investors who held the stock at $48 when it was a stable utility paying a nice dividend shouldn’t expect a $48 share price or a dividend to return anytime soon, Deshayes said.
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Why Bankrupt PG&E Isn't Trading AtWhy Bankrupt PG&E Isn't Trading At $0
Large Option Trader Dumped PG&E Puts Minutes Before Restructuring Report
A PG&E yard in San Francisco. Photo byPeter Merholz via Wikimedia.
Latest Ratings for PCG
[{"Feb 2019": "Feb 2019", "": "", "Upgrades": "Upgrades", "Sell": "Neutral", "Hold": "Buy"}, {"Feb 2019": "Jan 2019", "": "", "Upgrades": "Upgrades", "Sell": "Peer Perform", "Hold": "Outperform"}]
View More Analyst Ratings for PCGView the Latest Analyst Ratings
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Why the Era of Free Trade May Be Coming to an End
For the past two years the U.S. and other leading economies have engaged in a series of trade wars with no end in sight, and with populists gaining popularity around the world, national issues are increasingly taking precedence over the benefits of globalization. During a trip to China last week where I was teaching a leadership course to a group of Chinese executives, I became even more aware of the depth of the differences between the world’s two largest economies. And while the world eagerly awaits the meeting between President Donald Trump and President Xi Jinping at this week’s G20 conclave in Osaka, Japan, with hopes that these leaders can settle their differences, a resolution is highly unlikely. The issues are simply too complex and far-reaching. Far more likely is a goodwill statement with commitments to restart negotiations. Meanwhile, Chinese businesses are moving ahead more aggressively with plans for global expansion, as they build diverse trading relationships around the globe. The Trump-initiated tariff wars with China, Mexico, Canada, and Europe began as a way to correct trade imbalances between the U.S. and the rest of the world. Now these trade disputes are escalating into a full-scale trade war that will be hard to stop. If this happens, tariffs and bilateral negotiations will become the norm, supplanting global efforts to eliminate tariffs through multilateral agreements, and trigger the end of the free trade era that began after World War II. This isn’t the first time the U. S. has engaged in trade wars. Following the stock market crash of 1929, political fervor over the loss of jobs to imports led to the passage of the disastrous Smoot-Hawley Tariff Act of 1930. It raised tariffs on 20,000 imported goods and led to retaliatory tariffs from many of America’s trading partners. The bill was intended to reduce the 8% unemployment rate, but just the opposite happened: unemployment jumped to 16% in 1931 and 25% by 1933. Story continues After World War II, the U.S. took an entirely different tack, working with the European nations to open up trade and eliminate tariffs. On October 30, 1947, 30 nations signed the General Agreement on Trade and Tariffs (GATT) . The U.S. passed the Marshall Plan that invested $12 billion (nearly $100 billion in 2018) to rebuild the war-torn economies of Western Europe, leading to Germany’s resurgence as a global economic power. A similar American initiative enabled Japan’s great industries to rebound. In 1950, Frenchman Jean Monnet had the vision of replacing centuries of wars between Germany and France with a trade coalition that benefited and strengthened Europe’s position in the world. In 1958 European government leaders came together to form the European Economic Community, which became the European Community in 1967, and the European Union in 1993. In 1993 the U.S., Mexico and Canada formed NAFTA to compete with Asian and European nations. The following year, 123 nations created the World Trade Organization (WTO) as a comprehensive successor to GATT. These trade agreements fueled the era of globalization and free trade, propelling a prolonged economic boom throughout the world, the rise of the Asian middle class, and the lifting of one billion people out of poverty. Then came the 2008 financial crisis and a massive recession which spread globally. In spite of extreme efforts by governments to backstop banks and restore financial markets, the recession created double digit unemployment. As a consequence, employees who had devoted their working lives to a single company found themselves out of work, with few resources to sustain them. Many U.S. factories closed, unable to compete with Mexican and Asian producers, putting millions more out of work. Even worse, they learned they were not qualified for new jobs as automation and technology made their skills obsolete. Unable to find meaningful jobs, many people simply dropped out of the workforce. Meanwhile, U.S. government leaders and companies failed to create retraining programs to bring these unemployed workers back to productive lives. In spite of the economic rebound since 2010, a large swath of unemployed, disempowered workers have been left behind. Those who had jobs experienced no real wage growth as the wealthy reaped all the benefits of the recovery. Angry workers blamed immigrants and globalization for their problems, and supported nationalist movements in the U.S. and U.K., as well as France, Germany, Poland, Italy, Austria, Venezuela, and Brazil. Meanwhile, the great global institutions formed after World War II are becoming ineffective and need to be revamped for today’s world. Without effective global leaders with the political clout to push reform these institutions will likely continue to lose impact and relevance. Meanwhile, leaders of global companies are pushing hard for an end to the trade wars. Last week 661 companies wrote to President Trump asking him to settle the dispute, as corporate leaders are more committed than ever to their globalization strategies. These CEOs are especially anxious about Trump’s threat to levy 25% tariffs on the remaining $300 billion in Chinese imports, which will trigger a corresponding increase in U.S. consumer prices and a significant reduction in demand. If Presidents Trump and Xi are unable to reconcile their differences, trade threats and tariffs will continue with no end in sight. And without visionary political leaders and effective global institutions to unite nations around free trade, tariff wars are likely to slow economic growth and erase the benefits that such trade brings people around the world, marking the end of the 70-year era of free trade. Bill George is a senior fellow at Harvard Business School, and former chairman and CEO of Medtronic. Follow him on Twitter or read more at BillGeorge.org . More opinion in Fortune : —Private insurers are afraid of Medicare for All. They should be excited —The Uber IPO was not a failure, but IPOs in general are a mess —Upwork CEO: Why we scratched college degree requirements —Does the SEC’s ICO lawsuit against Kik go too far ? —How to stop automation from leaving women behind Listen to our new audio briefing, Fortune 500 Daily |
Smart Beta ETF Opportunities for Today’s Market
This article was originally published onETFTrends.com.
As the bull market extends, exchange traded fund investors can still find opportunities, but they will have to closely monitor the markets for developing trends and act accordingly.
"We think that there could be the potential for a pause in the second half of the year. So our portfolio, we are getting a little bit more defensive, yet we are not calling for recession. We think there are plenty of opportunities across the marketplace," Lance Humphrey, AVP, Portfolio Manager, USAA Asset Management Company, said at the Morningstar Investment Conference.
As a way to help investors better access developing opportunities in the market, USAA Asset Management Company focuses on value and momentum factor-based ETF investments. Through their hands-on experience with investing in ETFs, USAA offers its own ETF suite, includingUSAA MSCI USA Value Momentum Blend Index ETF (ULVM) ,USAA MSCI USA Small Cap Value Momentum Blend Index ETF (USVM) ,USAA MSCI International Value Momentum Blend Index ETF (UIVM) andUSAA MSCI Emerging Markets Value Momentum Blend Index ETF (UEVM) .
The suite of smart beta ETFs is built as core portfolio-building components and allows investors more choices at a competitive cost.
The factor-based lineup screens for the value and momentum factors, identifying stocks with attractive valuations and positive price momentum and weighting the two factors in such a way to help investors diversify against the risk of individual holdings. Academic research suggests that focusing on stock companies with factors like attractive valuations and improving momentum have led to higher excess returns.
Watch the full interview between ETF Trends CEO Tom Lydon and Lance Humphrey:
For more ETF-related commentary from Tom Lydon and other industry experts, visit ourvideo category.
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1 Recent Under-the-Radar Energy IPO to Put on Your Watch List
Last month,Permian Basin-focused oil drillerDiamondback Energy(NASDAQ: FANG)quietly completed the initial public offering (IPO) of itsmidstreamsubsidiaryRattler Midstream(NASDAQ: RTLR). The company raised more than $750 million by selling a 29% stake in Rattler, making it the biggest energy-related IPO of the year.
Given therecent onslaught of IPOs, Rattler has quietly flown under the radar of both Wall Street and most investors, with its stock barely budging from the IPO price. However, what the company might lack in name recognition it certainly makes up for with its growth prospects. Here's a closer look at why investors will be keeping an eye on this recent energy IPO.
Image source: Getty Images.
Diamondback Energy has beenquietly building out midstream infrastructure in recent yearsto support its operations in the Permian Basin. The company constructed a network of pipelines and other assets to gather oil, natural gas, and water produced from its wells in the region. Rattler Midstream collects fees as those volumes flow through this infrastructure, backed by long-term contracts with Diamondback Energy.
In addition to that gathering infrastructure, Rattler Midstream owns stakes in two long-haul oil pipelines that are currently under construction. The company holds a 10% interest in the EPIC project, which will be able to transport 600,000 barrels of oil per day from the Permian Basin to Corpus Christi, Texas. The company also holds a 10% interest in the Gray Oak pipeline; this system will transport up to 900,000 barrels of oil per day from the Permian to Corpus Christi. Long-term, fee-based contracts back both projects, which will enable Rattler to collect a steady stream of cash flow when they come online later this year.
Rattler Midstream's gathering infrastructure is crucial to support the growth of Diamondback Energy. As Diamondback Energy drills more wells, this oil and gas will flow into Rattler's pipeline network. As a result, Rattler Midstream will collect more fees. During 2018, Rattler's earnings tripled thanks to Diamondback Energy's rapidly increasing volumes.
Meanwhile, its cash flow should continue growing at a rapid rate in 2019, given that Diamondback Energy expects its volumes to soar another 29%. That fast-growing cash flow will give the company the money to invest in expanding its infrastructure. Not only will Rattler be able to build additional gathering pipelines, but it could eventually invest in other midstream assets like natural gas processing plants and oil storage terminals.
In addition to the fast-paced growth of its gathering business, Rattler Midstream is about to experience a big uptick in cash flow from its investments in those two long-haul oil pipelines.Phillips 66 Partners, the developer of the Gray Oak pipeline, expects that project to be online by the end of this year. Once it enters service, the pipeline will provide an immediate burst of cash flow to the project's partners, given the Permian's desperate need for new oil pipeline capacity. Meanwhile, volumes flowing into the pipeline should increase in coming years as producers like Diamondback continue drilling new wells in the region, which will fuel healthy cash flow growth for the project's partners.
Likewise, Rattler will enjoy a meaningful uptick in cash flow when the EPIC oil pipeline starts up next January. In addition to that near-term boost, the developers of EPIC can increase its capacity up to 900,000 barrels per day by installing additional pumps and storage tanks. Given thegrowth potential of the Permian, it seems likely that EPIC will eventually reach that expanded capacity. As that happens, it will fuel another meaningful uptick in cash flow to Rattler and the project's other owners.
Rattler Midstream's earnings and cash flow will grow at a fast pace over the next few years. Not only will the company continue to benefit from additional oil and gas volumes as parent Diamondback Energy drills more wells, but its investments in two large-scale oil pipelines are also about to pay dividends. Those dual growth engines could give Rattler Midstream the fuel to produce market-crushing returns, making it an intriguing energy stock to watch.
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Trump Bans More Chinese Tech Companies: ETFs in Focus
At a time when investors are eyeing a truce between the strongest economies in the upcoming G-20 summit meeting, Trump administration has dealt a fresh blow to Chinese tech firms. The U.S. Commerce Department has added four Chinese companies and one Chinese institute to the Entity List.
One of the five entities that have been targeted this time is Sugon, China’s prominent supercomputer developer. A few subsidiaries like Higon, Chengdu Haiguang Integrated Circuit and Chengdu Haiguang Microelectronics Technology, which design and develop microchips, have also been banned along with the Wuxi Jiangnan Institute of Computing Technology.
As these companies make their way into the Entity List, U.S. suppliers will be mandated to apply for licenses to provide components to these Chinese entities. These licenses are likely to be subject to strict U.S. export control regulations, and companies will need to justify that the transfer of such items will not jeopardize national security, restricting access to them.
We would like to add that this is not the first time that the United States has used this card in the trade war. On May 15, Trump signed an executive order to declare national emergency. Post the order, the U.S. Department of Commerce announced the addition of Huawei Technologies and its affiliates to the Bureau of Industry and Security Entity List (read: Will Semiconductor ETFs Survive the Huawei Ban?).
Why the Ban?
Per the U.S. Commerce Department, the newly-banned Chinese entities are leading developers of China’s high performance computing. Some of these high performance computing are used in military applications like simulating nuclear explosions.The department has justified the move by stating that the activities of these entities “pose a significant risk of being or becoming involved in activities contrary to the national security and foreign policy interests of the United States.”
It is worth noting that the United States had placed a Chinese organization engaged in supercomputer development with military uses on the Entity List. In this regard, China's National University of Defense Technology was added to the Entity List in 2015.
Interestingly, Sugon and Wuxi dominate China's exascale high-performance computing development to assist military modernization. Paul Triolo, a technology analyst with the Eurasia Group, said that “the technology involved supports such military-related tasks as running nuclear simulations, calculating missile trajectories and hypersonic algorithms.”
Moreover, over the recent years, U.S. and Chinese companies have been vying to reach the top as makers of the world's fastest supercomputers. In this regard, Sugon ranked 63 of the top 500 recently. The company has also been developing a next-generation processor.
Meanwhile, Higan develops integrated circuits, electronic information systems, software and computer system integration, while the Chengdu entities design X86 architecture chips and make integrated circuits.
Speculations are rife that the ban aims at limiting China’s ability to dominate the next-generation supercomputing space.
Will the Ban Wreak Havoc on U.S. Chip-Making Industry?
Analysts believe that the ban is largely going to impact companies within the semiconductor and software industries. Sugon strongly relies on U.S. suppliers, including chipmakers like Intel, Nvidia and Advanced Micro Devices, for chips which make an integral part of supercomputers. Per CNBC, shares of U.S. semiconductors like Advanced Micro Devices declined more than 3%, while Xilinx and Nvidia lost 2.2% and 1.5%, respectively, after the ban announcement on Jun 21. Also, the PHLX Semiconductor Index lost about 0.7% on the same day.
Semiconductor ETFs in Focus
Against this backdrop, let’s take a look at some of the semiconductor ETFs facing the trade war heat. The iShares PHLX Semiconductor ETF SOXX, VanEck Vectors Semiconductor ETF SMH, Direxion Daily Semiconductors Bull 3x Shares SOXL and the ProShares Ultra Semiconductors USD lost around 0.6%, 0.5%, 2.1% and 0.9%, respectively, on Jun 21.
SOXX
This ETF offers exposure to 30 U.S. companies that design, manufacture and distribute semiconductors by tracking the PHLX SOX Semiconductor Sector Index. The fund has amassed $1.42 billion in its asset base and charges a fee of 47 bps a year. It has a Zacks ETF Rank of 2 (Buy) with a High risk outlook (read: How China Could Retaliate Huawei Ban & Its Impact on ETFs).
SMH
This ETF has AUM of $1.22 billion. The fund provides exposure to 25 global securities by tracking the MVIS US Listed Semiconductor 25 Index. The fund charges an expense ratio of 0.35%. It has a Zacks ETF Rank #2 with a High risk outlook (read: Dividend and Semiconductor: 2 ETFs to Watch on Outsized Volume).
SOXL
This ETF targets the semiconductor corner of the technology sector with 3x leveraged exposure to the PHLX Semiconductor Sector Index. The fund holds 31 holdings in its basket. It has amassed about $652.1 million in its asset base while charging 99 bps in fees per year. It has a High risk outlook (read: Bulls Roar Again in June: Leveraged ETFs in Focus).
USD
This product seeks two times the daily performance of the Dow Jones U.S. Semiconductors Index, charging investors 95 bps in annual fees. The fund holds 32 holdings in its basket. It has accumulated $45.5 million in its asset base and has a High risk outlook (read: 4 ETFs to Invest in Soaring Semiconductor Stocks).
Caveat
The Trump administration is keeping investors perplexed. On one hand, it postponed a provocative speech by Vice President Mike Pence where he was likely to criticize China’s communist regime. On the other hand, the Trump administration has imposed the ban. Commenting on the move, William Reinsch, a former United States trade official and now a senior adviser at the Center for Strategic and International Studies, said “it’s ill timed. It clearly will be received negatively by the Chinese.”
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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 reportDirexion Daily Semiconductor Bull 3X Shares (SOXL): ETF Research ReportsiShares PHLX Semiconductor ETF (SOXX): ETF Research ReportsVanEck Vectors Semiconductor ETF (SMH): ETF Research ReportsProShares Ultra Semiconductors (USD): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
Possible Grocery Strike Raises Questions About Online Delivery In Southern California
A strike by thousands of union workers at major Southern California supermarket chains would have a huge upside for non-union big box grocers and e-retailers but would likely disrupt other online grocery delivery services, industry experts said.
"We knowAmazon.com, Inc.(NASDAQ:AMZN) will not be impacted by a strike," said Bill Bishop, chief architect ofBrick meets Click, a consultancy for grocery retailers and the consumer packaged goods industry. "We know brick-and-mortar will be. What we don't know is the impact on services likeInstacart,whether that process will be disrupted."
Members of theUnited Food and Commercial Workers (UFCW)union in Southern and Central California are voting this week on whether to authorize a strike. Negotiation delays with Albertsons – which owns Vons and Pavilions – and Ralphs are among the reasons for the vote.
The impact of a work stoppage on online grocery delivery depends on the segment, Bishop said. "You've got the pure play coming from Amazon Fresh and then the online grocery that comes from your brick-and-mortar stores likeWalmart Inc(NYSE:WMT),Kroger Co(NYSE:KR) and Safeway."
Most of the order fulfillment occurs in-house, so if there is a strike companies that depend on store products will be disrupted.
"And that's the fastest- growing portion of the business," Bishop said.
Todd Walters, president ofUFCW Local 135in San Diego, said members who work in online fulfillment jobs at Vons and Ralphs fall under the general merchandise classification. Wages for that classification have fallen behind, he said, and the supermarket chains are stalling on a new contract.
"Our members will tell the companies that we are frustrated," Walters said.
Votes from Southern California's seven regional locals will be tallied tonight after the final vote is registered.
A strike will also impact the delivery aspect of the business that's driven by Instacart, although exactly how that will unfold is unclear.
Instacart hires people to go to stores to buy the orders that a retail customer places. Unlike some other grocery delivery services, the company doesn't stockpile items in a warehouse; rather, it lets consumers shop major grocery stores through its website, and then sends orders to one of its employees.
Since Instacart partners with Ralphs and the other retailers that would be impacted by the strike, its service could be disrupted.
Instacart, Ralphs and Albertsons did not immediately respond to requests for comment.
The strike vote evokes memories of a four-month supermarket strike that took place in Southern California in 2003. The affected chains lost $1.5 billion in sales, and consumer shopping habits were forever changed.
Sixteen years later, the grocery industry is in a state of upheaval as Amazon and Walmart muscle in on traditional food retail operations. Both would be clear winners in the event of a strike, said Geoff Welch, a vice president with theShelby Report,a publication that tracks the food and grocery industry, in an email.
"The benefits for Walmart and Amazon would be huge," he said. "But disruption to the food chain affects all," he added. "Hopefully the strike won't happen."
Amazon and Walmart did not return requests for comment.
Even if UFCW members vote yes, a strike won't necessarily take place. The tally would simply enable the union to call a strike whenever it wants. It is also designed to put pressure on the employers, with the next three-day round of negotiations scheduled to start on July 10.
Albertsons, Vons and Pavilions have a combined 342 stores and 29,000 unionized employees in Southern California. Ralphs, a division of Kroger Co., has 190 stores and 17,000 employees.
Image Sourced From Pixabay
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McDonalds Switched From Frozen Beef And Now Their Quarter Pounder Sales Are Skyrocketing
Photo credit: Scott Olson / Getty Images From Delish McDonald's decision to ditch frozen for fresh beef on the iconic Quarter Pounder is majorly affecting sales-in the best way. According to USA Today , purchases are up 30 percent. "Our customers are loving it," McDonalds senior vice president of supply chain management, Marion Gross, said in an interview with the outlet. "We sold 40 million more Quarter Pounder burgers nationally in the first quarter of this year compared to the quarter in 2018." They're not the only fast food giants to opt for fresh either. Wendy's, Culver's, Five Guys, Whataburger, Shake Shack, In-N-Out, and Smashburger all advertise no frozen beef, Gross said. "Customers tell us they have an interest in understanding where it comes from, what goes into it and how is it prepared," he continued. "Were trying to be more transparent and make some necessary changes to delight our customers as we embark on our journey to be a better McDonalds." According to Gross, the change from frozen to fresh was a huge shift for the company. However, fresh beef is still not used at locations in Alaska, Hawaii, and U.S. Territories. Earlier this year, after the brand's Signature Crafted Recipes failed to draw sales, execs decided to nix the products and introduce more Quarter Pounders. View this post on Instagram Winter Safety Tip: The less skin you have exposed the better #burgerswarmthebelly A post shared by McDonald's (@mcdonalds) on Mar 8, 2017 at 9:58am PST "They've had success with fresh beef," senior restaurant analyst at the Telsey Advisory Group, Robert Derrington, told USA Today in April. "It appears they don't need to supplement the higher end of their menu. Instead, they can do that successfully with their core products with updated ingredients." ('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 |
Melania Trump’s Former Aide Stephanie Grisham Will Be the White House Press Secretary
The White House has set records with its rate of staff turnover, and Sarah Huckabee Sanders left another spot open when she announced on June 13 that she would leave her post as press secretary this summer. Her seat won't be empty for long. This week her replacement was announced. On Tuesday, Melania Trump shared that someone from her own team—Stephanie Grisham, her deputy chief of staff and communications director—would replace Sanders and handle press issues for the president and his administration. In a rare move, Trump followed her husband's example and announced the news on Twitter. "I am pleased to announce @StephGrisham45 will be the next @PressSec & Comms Director! She has been with us since 2015 - @potus & I can think of no better person to serve the Administration & our country. Excited to have Stephanie working for both sides of the @WhiteHouse. #BeBest,” she wrote. https://twitter.com/FLOTUS/status/1143560381048283138?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1143560381048283138&ref_url=https%3A%2F%2Fwww.bbc.com%2Fnews%2Fworld-us-canada-48763328 President Trump also discussed the news with reporters and called Grisham a "fantastic" choice for the role. "Stephanie has been with me from the beginning," he said. "A lot of people wanted the job; a lot of people wanted to do it. I've asked people, 'Who do you like?' and so many people said Stephanie. She's here, she knows everyone, she actually gets along with the media very well." Grisham is one of the rare officials who have been with the Trumps since the 2016 campaign, and she's had multiple roles within the administration. She previously worked as a deputy to former press secretary Sean Spicer, who resigned in 2017. She'll be Trump's sixth press secretary in three years. Story continues During her tenure on the First Lady's team, Grisham emerged as an outspoken and controversial force who often responded to criticism directly on Twitter, much like her new boss. She took issue with the media's focusing on Melania Trump's "I Really Don't Care, Do U?" jacket and defended Trump amid criticism that her antibullying campaign was at odds with her husband's inappropriate and misogynistic rhetoric . https://twitter.com/StephGrisham45/status/1009881721012150272 “I think that, honestly, one thing really doesn’t have anything to do with the other, and she is focused on helping children,” Grisham said at the time. “She has said many times that her husband is an adult, he’s the president of the United States, he knows what he’s doing, and she’s focused on Be Best, she’s focused on children. Children are the ones who are impressionable right now, and so she’s going to go out there and do the best that she can to help them succeed.” President Trump had previously tweeted about Sanders's departure, writing that “after 3 1/2 years, our wonderful Sarah Huckabee Sanders will be leaving the White House at the end of the month and going home to the Great State of Arkansas." He added, "She is a very special person with extraordinary talents, who has done an incredible job! I hope she decides to run for Governor of Arkansas - she would be fantastic. Sarah, thank you for a job well done!" https://twitter.com/realDonaldTrump/status/1139263781144596486?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1139263781144596486&ref_url=https%3A%2F%2Fwww.glamour.com%2Fstory%2Fsarah-huckabee-sanders-wont-be-missed Grisham has yet to comment about her new role in the administration. Originally Appeared on Glamour |
Black woman says she was asked to give up her seat to white men at restaurant
A woman wants termination of employees who discriminated against her in a restaurant. (Credit: Facebook) An African American woman wants restaurant employees terminated after they allegedly instructed her to give up her seat for a white man, and then refused her service. She claims they discriminated against her and violated her fundamental civil rights. On Monday, just four days after the alleged incident, Lia Gant revisited the place in question — a J. Alexander’s restaurant in West Bloomfield, Mich. Joining her this time, for a press conference, was her lawyer, Maurice Davis , and another patron, Jerrick Jackson, who says he suffered a similar but unrelated experience there. Gant recounted her story, alleging that the white bartender not only refused to serve her, but also took away her drink and dumped it down the drain. When Gant went to the manager for assistance, she said she was told that she shouldn’t be upset, “because the drink was not thrown on me.” Neither the police department nor J. Alexander immediately responded to Yahoo Lifestyle’s request for comment. But the trio is determined to make sure the employees in question face consequences for their alleged actions. “This type of behavior is archaic racism, reminiscent of the black men and women of the 1950s,” Davis said in the press conference. “Our civil rights leaders fought for over a century to secure and preserve black citizens’ right to have a seat at the table, and we refuse to backslide to a nation where black people are told to give up their seat to white people.” Gant continued to describe how the situation only escalated further after her drink was thrown away, with another customer of color standing up to support her, prompting a white patron to throw food at him and allegedly call him “the n-word.” In response, Gant alleged, management “called the cops” on the black patron. Davis believes that restaurant management failed to protect his clients from the people who were “hurling racist insults.” He tells Yahoo Lifestyle, “J. Alexander refuses to take corporate responsibility for its employees’ actions and has not reached out to counsel.” Davis tells Yahoo Lifestyle that his client will not be suing at this time, and that they are instead focused on obtaining justice and ensuring that this doesn’t happen to anyone else. “Right now our primary focus is demanding the immediate termination of the J. Alexander employee that refused to serve our client,” he says. Gant posted about the incident on Facebook and shared videos of her being ushered out fo the restaurant by a white woman and of a man throwing food. Comments on the post point that the situation was unacceptable. Story continues “This is disgusting. I am in the business and would never let anything like this happen. I’m never stepping foot in that place again,” one person commented. Davis and Jackson both commended West Bloomfield Police for their response and attention in deescalating the situation. According to a statement provided to WXYZ Detroit from J. Alexander, the restaurant has “turned the security surveillance video over to the West Bloomfield police and “await a report on their investigation and their determination as to whether any formal charges related to this behavior are warranted.” And the police, according to Davis, have identified a suspect and assigned a detective to the case. Read more on Yahoo Entertainment: Homeless man shamed on Facebook inspires community support: 'They changed my life in a few days' Couple weds in hospital hallway two hours before baby's premature birth: 'It was like a movie' Teacher loses job after allegedly showing student picture of a gun: ‘He couldn't wait until he could bring it to school’ Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. View comments |
'You can have social impact and profit at the same time': Goldman Sachs executive
Google “opportunity zones” and you’ll be greeted by solicitations for investment. Created in the 2017 tax bill and first designated in April 2018, the zones target economically depressed areas, mostly urban, that come with tax breaks for investors.
The zones have come under criticism because of concern that local residents won’t have enough input in development, or that profit will come at the expense of what’s good for the communities.
“That criticism about making a profit at the expense of a local community — I think it’s based on this underlying premise that you cannot have profit and social impact at the same time, and I think that’s fundamentally incorrect,” said Margaret Anadu, the head of Goldman Sachs’ Urban Investment Group, in an interview with Yahoo Finance’sOn the Move. Anadu’s experience with social impact investing long pre-dates opportunity zones, said “You can have social impact and profit at the same time.”
She cited local examples including the Harlem neighborhood in New York City, and Newark, NJ, where Goldman has worked with for-profits such as grocery stores which generate returns but have created jobs and deliver fresh food to areas that need it. In the case of Harlem, once city-owned land is now populated by mixed-income residential projects and new restaurants as a result of private capital investment.
“Cities can be revitalized when there’s the right intention and focus with local stakeholders and private capital at the table,” Anadu said.
Another Goldman-financed opportunity zone project, in Baltimore, has come underfirefor being situated in a census tract that’s not low-income — but Anadu, and thedeveloperof the project, say that criticism misses the point.
“That project over time is going to be up to 14 million square feet and create 80,000 jobs,” Anadu said. “Those jobs are going to go to the surrounding low income communities — and not by happenstance — but because that project at the core rests on hundreds of meetings with local stakeholders in those communities.”
Goldman Sach’s Urban Investment Group has invested $8 billion since inception in 2001, including the financing of the nation’s largest public housing energy retrofit in Newark. (Anadu joined the unit in 2005).
She noted that opportunity zones aren’t the exclusive vehicle for investment in and revitalization of underserved communities in the U.S. Other tools, like tax increment financing and tax abatements, can also play a role.
Julie Hyman is the co-anchor ofOn the Moveon Yahoo Finance.
Read and watch more about social impact investing:
JUST Capital research finds socially-conscious companies have better margins
‘Post-modern capitalism’: The rise of B corporations
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Business Highlights
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Possible outcome of Trump-Xi meeting: A truce in trade war
WASHINGTON (AP) — If history repeats itself — and most analysts are betting it will — Presidents Donald Trump and Xi Jinping will agree to some kind of cease-fire when they meet late this week at a Group of 20 international summit in Osaka, Japan. That would buy time for U.S. and Chinese officials to restart trade talks that stalled last month.
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Powell says economy facing growing uncertainties
WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell says the economic outlook has become cloudier since early May, with rising uncertainties over trade and global growth causing the central bank to reassess its next move on interest rates. Speaking to the Council on Foreign Relations in New York, Powell says the Fed is now grappling with the question of whether those uncertainties will continue to weigh on the outlook and require action.
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AbbVie makes $63B bid for Botox maker Allergan
Facing competition for the world's top-selling drug, AbbVie will spend about $63 billion to buy Botox maker Allergan as it attempts to spur future growth. The specialty drugmaker said Tuesday that the addition of Allergan's established product lineup will help AbbVie shore up revenue.
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FedEx sues US government over export rules in Huawei case
DALLAS (AP) — FedEx is suing the U.S. government over export rules aimed to block technology shipments to some foreign companies including China's Huawei. FedEx is asking the court to prevent the Commerce Department from enforcing the provisions, saying they are impossible to comply with given the millions of packages FedEx delivers every day. Huawei and China have complained about FedEx diverting several company shipments.
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Cryptocurrencies need close scrutiny, monitor warns
FRANKFURT, Germany (AP) — An international financial monitor is warning that wider use of cryptocurrencies by retail shoppers would call for "close scrutiny" by regulators and should be subjected to tough regulation. The head of the Financial Stability Board made the statement ahead of the Group of 20 summit set for June 28-29 in Osaka, Japan. Finance officials are debating how to regulate cryptocurrencies after Facebook unveiled Libra, a digital form of cash linked to existing currencies.
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US government investigating poultry price-fixing claims
CHICAGO (AP) — The U.S. government is investigating price-fixing charges against the country's biggest poultry companies. The Department of Justice tipped its hand last week when it requested a temporary halt to discovery proceedings in a 2016 class-action lawsuit filed by food distributor Maplevale Farms.
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What's your data worth to Big Tech? Bill would compel answer
WASHINGTON (AP) — As Congress bears down on big tech companies, two senators are proposing to force giants like Google, Facebook and Amazon to tell users what data they're collecting from them and how much it's worth. The proposed legislation was floated Monday by Sens. Mark Warner, D-Va., and Josh Hawley, R-Mo. It comes as bipartisan support grows in Congress for a privacy law that could sharply rein in the ability of the biggest tech companies to collect and make money from users' personal data.
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US consumer confidence hits lowest level since September '17
WASHINGTON (AP) — American consumers are feeling less confident this month as heightened trade tensions have apparently taken a toll on their spirits. The Conference Board, a business research group, says its consumer confidence index fell to 121.5 in June from a revised 131.3 in June after rising in April and May.
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Mitsubishi Motors to relocate North America HQ to Tennessee
NASHVILLE, Tenn. (AP) — Mitsubishi Motors has announced it's relocating its North America headquarters from California to Tennessee. Tennessee Gov. Bill Lee and Department of Economic and Community Development Commissioner Bob Rolfe made the announcement with Mitsubishi Motors North America on Tuesday. The headquarters move from Cypress, California, to Franklin, Tennessee, will result in an $18.25 million investment in the region and approximately 200 jobs.
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TSA plans to send more airport screeners to Mexico border
WASHINGTON (AP) — The Trump administration plans to send more than 650 Transportation Security Administration employees to help law enforcement at the U.S.-Mexico border. TSA says it has already dispatched more than 350 airport screeners and federal air marshals to the border and plans to send more. A key House Democrat says it hurts aviation security, but a Republican lawmaker says it's a response to a crisis.
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Stocks move lower on economic data, Powell remarks
NEW YORK (AP) — Technology and internet companies led a broad slide for U.S. stocks Tuesday after discouraging economic data and cautionary remarks from the head of the Federal Reserve weighed on the market. The sell-off marked the third straight loss for the market and the biggest drop this month for the Dow Jones Industrial Average and S&P 500 index, which hit an all-time only last week.
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The S&P 500 index fell 27.97 points, or 1%, to 2,917.38. The Dow dropped 179.32 points, or 0.7%, to 26,548.22. The Nasdaq composite slid 120.98 points, or 1.5%, to 7,884.72. The Russell 2000 index of smaller company stocks gave up 9.05 points, or 0.6%, to 1,521.04. |
Jameela Jamil criticizes Kim Kardashian's new body makeup line
Actress and body positive activist Jameela Jamil took aim at Kim Kardashian’s newly launched body makeup line, which was designed to cover scars from skin conditions like psoriasis and eczema. Jamil, who has been open about living with chronic eczema, retweeted Kardashian’s announcement of the new KKW Body Collection and said she would take a “hard pass” on the product, which she feels perpetuates body-shaming culture. Jameela Jamil didn't mince words when she criticized Kim Kardashian's new body makeup line. (Credit: Twitter) The Good Place star said that covering bodily scars every day is hardly worth “the work to take it all off before bed so it doesn’t destroy your sheets.” Jamil claimed she would “rather just make peace with my million stretch marks and eczema. Taking off my mascara is enough of a pain in the arse.” But Jamil’s objection to the makeup goes even deeper than just inconvenience. While describing the “huge patches of pigment loss from scratching” at the skin condition, which is “all over” her legs — in addition to stretch marks — Jamil proclaimed, “I refuse to have these normal human marks weaponised against me.” I have such severe eczema all over that my legs are covered in huge patches of pigment loss from scratching. I have a tonne of stretch marks, and because I have Ehlers Danlos Syndrome, *every* time I cut, I scar. I *refuse* to have these normal human marks weaponised against me. — Jameela Jamil 🌈 (@jameelajamil) June 25, 2019 She acknowledged those of her 850,000 Twitter followers who “may not be ready to go without body make up,” saying they feel that way “because you’ve been taught to hate your natural body ... which is devastating but so understandable in our current climate.” But for her part, Jamil said, “I’m not going to stop questioning and fighting the source of our shame.” And HEY I get that some of you may not be ready to go without body make up. Because you’ve been taught to hate your natural body... which is devastating but so understandable in our current climate, but I’m not going to stop questioning and fighting the source of our shame. ❤️ — Jameela Jamil 🌈 (@jameelajamil) June 25, 2019 Many stood in solidarity with Jamil’s sentiments. They described the pride they take in their own imperfections, which stem not only from eczema and psoriasis but also surgery, cellulite, burns and other skin conditions like seborrhea and keratosis pilaris. Story continues Some mentioned the hassle of having to worry about staining every fabric they come into contact with, and others congratulated her for having the courage to take a stand against what they described as a beauty industry that cashes in on shame. One, though, found the tweet “condescending,” and another questioned why women are pressured to hide their scars but men are not. i found this tweet really condescending. i am ready to go without body make up, i have been going without it for the last 20 years of my life. however i have scarring and and other imperfections i’d like to cover up sometimes like on nights out or for auditions and acting. — haribo ~is on t~🌸 (@rosecolored_boi) June 25, 2019 Others stepped in to defend Kardashian’s product and the people who choose to cover imperfections. Some felt the choice to wear body makeup is “a form of expression” just like makeup for the face, but Jamil countered that unlike face foundation, body makeup is “expensive and hazardous.” In a 2018 Instagram post, Jamil posted a video of herself scratching her skin and looking into the camera, saying “eczema means that this is just my life. “This is all I do. I just sit here scratching the living s*** out of my legs.” View this post on Instagram A post shared by Jameela Jamil (@jameelajamilofficial) on Dec 8, 2018 at 5:04pm PST And in February, Jamil revealed on Instagram that she has Ehlers-Danlos Syndrome , a rare connective tissue disorder that she said also causes her to scar easily. Like Jamil, Kardashian has also been open with her own skin struggles, namely her lifelong battle with psoriasis. In February, she struck back on Twitter against a publication that claimed she was suffering “a bad skin day” by letting them know “it’s psoriasis all over my face.” It’s psoriasis all over my face. 😢 https://t.co/E94lI7mfDG — Kim Kardashian West (@KimKardashian) February 5, 2019 According to Paper Magazine, in a now-deleted 2016 post, Kardashian wrote of accepting her psoriasis: “I have that one patch on my right leg that is the most visible. I don't really even try to cover it that much anymore. Sometimes I just feel like it's my big flaw and everyone knows about it, so why cover it? I'm always hoping for a cure, of course, but in the meantime, I'm just learning to accept it as part of who I am." But while debuting her new KKW Body Collection, Kardashian revealed she often uses body makeup to cover her psoriasis. She wrote, “I’ve learned to live with and not be insecure of my psoriasis, but for days when I want to just cover it up I use this Body Makeup.” View this post on Instagram A post shared by Kim Kardashian West (@kimkardashian) on Jun 14, 2019 at 1:44pm PDT But Jamil stands firm in her opinion that women shouldn’t cover their scars ever — not even sometimes, like Kardashian. She tweeted, “Save money and time and give yourself a d*** break.” Read more from Yahoo Lifestyle: 'Fatphobic' article criticizing Nike's plus-sized mannequins slammed by body-positive activists Woman quits job at Platinum Fitness after manager allegedly called her 'unclean' for dating black men Kim Kardashian gets backlash over White House photos: 'Classy on the table just like Trump likes it' Follow us on Instagram , Facebook , Twitter and Pinterest for nonstop inspiration delivered fresh to your feed, every day. |
Can Nike Kick Its Macro Concerns?
Nike (NYSE: NKE) is set to release fiscal fourth-quarter 2019 results after the markets close this Thursday, June 27. Though shares of the sportswear and athletic footwear giant have mustered a 12% year-to-date gain, they're still trading well below their recent highs thanks to a combination of macroeconomic concerns, escalated trade tensions between China and the U.S., and a modest post-earnings plunge in March after Nike's seemingly tepid forward outlook left investors in a cold sweat. So let's tighten our laces to get a better idea of what investors should be watching this time around. Retro-looking pair of Nike Air Jordans. IMAGE SOURCE: NIKE. On Nike's headline numbers Recall in Nike's fiscal third-quarter 2019 report in March, consolidated revenue climbed 11% year over year at constant currencies (to $9.61 billion) -- above management's guidance for an increase "squarely in the high single-digit range" -- but foreign-exchange headwinds reduced reported revenue growth to roughly 7%. Still, Nike saw its gross margin expand 130 basis points to 45.1%, thanks to higher average selling prices and momentum from its direct-to-consumer business. Better yet, Nike's growth was broad-based across each of its geographies and product categories, and CFO Andy Campion insisted the company "will continue investing in key capabilities to [...] fuel strong profitable growth into next fiscal year and beyond." For its fiscal fourth-quarter report this week, however, Campion also told investors to expect foreign exchange headwinds to have an even greater 6-percentage-point impact, effectively reducing what should be high single-digit growth at constant currencies to a low-single-digit gain. To be clear, though currencies have little bearing on the health of Nike's underlying business and demand for its wares, that expected outlook fell short of analysts' consensus targets at the time for reported top-line growth closer to 6.1%. Story continues Of course, Wall Street has adjusted its expectations since then. When Nike's fiscal Q4 report hits on Thursday, most analysts will be looking for earnings of roughly $0.66 per share (down from $0.69 per share a year earlier) on a 3.9% increase in revenue to $10.17 billion. A "catastrophe" in the making? Since Nike's last update, however, investors' concerns over the U.S.-China trade war have only intensified. In particular, Nike joined a coalition of more than 170 footwear companies last month as part of the Footwear Distributors and Retailers of America (FDRA) to pen a letter urging President Trump to reconsider proposed tariffs on imported shoes. In it, the group argued that increasing tariffs on footwear imported from China would be "catastrophic for our consumers, our companies, and the American economy as a whole." "There should be no misunderstanding that U.S. consumers pay for tariffs on products that are imported," the FDRA elaborated, directly contradicting the President's insistence otherwise. "[...] It is an unavoidable fact that as prices go up at the border due to transportation costs, labor rate increases, or additional duties, the consumer pays more for the product." Of course, the argument isn't entirely selfless; should tensions between China and the U.S. escalate, and as the largest shoe company in the world, Nike also stands to lose the most if there's a significant deceleration in growth from its core North American market. But Nike is simultaneously positioned to reap outsized rewards if trade tensions ease, and if consumer demand and the global economy remain healthy. In the meantime, investors should listen closely for any updates this week from Nike on its ability to weather our current uncertain economic environment. If it fares well relative to expectations, that could mean the stock's pullback won't last long. 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 Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nike. The Motley Fool has a disclosure policy . |
FactSet Research Systems Inc (FDS) Q3 2019 Earnings Call Transcript
Image source: The Motley Fool.
FactSet Research Systems Inc(NYSE: FDS)Q3 2019 Earnings CallJun 25, 2019,11:00 a.m. ET
• Prepared Remarks
• Questions and Answers
• Call Participants
Operator
Good morning. My name is Christine, and I'll be your conference operator today. At this time, I would like to welcome everyone to the FactSet Q3, 2019 Earnings Call. (Operator Instructions) Thank you. Rima Hyder, Vice President, Investor Relations, you may begin your conference.
Rima Hyder--Vice President
Thank you, Christine, and good morning, everyone. Welcome to FactSet third fiscal quarter 2019 earnings conference call. Before we begin, I would like to point out that the slides we will reference during the course of this presentation can be accessed via the webcast on the Investor Relations section of our website at factset.com. The slides will be posted on our website as the conclusion of this call. A replay of today's call will be available via phone and on our website. After our prepared remarks, we will open the call to questions from investors. To be fair to everyone, please limit yourself to one question, plus one follow-up.
Before we discuss our results, I encourage all listeners to review the legal notice on Slide 2, which explains the risks of forward-looking statements and the use of non-GAAP financial measures. Additionally, please refer to our Forms 10-K and 10-Q for a discussion of risk factors that could cause actual results to differ materially from these forward-looking statements. Our slide presentation and discussions on this call will include certain non-GAAP financial measures for such measures, reconciliation to the most directly comparable GAAP measures are in the appendix to the presentation and in our earnings release issued earlier today. Joining me today are Philip Snow, Chief Executive Officer and Helen Shan, Chief Financial Officer. I'd now like to turn the discussion over to Philip Snow.
Philip Snow--Chief Executive Officer
Thanks, Rima. And good morning, everyone. I'm pleased to say that we're continuing our long record of steady growth in the second half of our fiscal year with growth -- with growth across all our key metrics, including ASV revenue, EPS and margin, cost pressures in the financial sector remain but clients are looking to invest in technological solutions that drive efficiencies and we continue to benefit from their response to our smarter, more connected data and analytics.
This provides us with the ever growing opportunity to take higher wallet share. Now moving on to the third quarter results. This quarter, our sales team achieved comparable gross sales and expanded our footprint globally at net new clients and users. At the same time, we did see a higher than expected rate of cancellations due to industry wide ongoing cost pressures. We think of our business in half-year increments. And as we pointed out in our last call, we expect our second half to be more weighted toward the fourth quarter. Turning to ASV, analytics and wealth were the main drivers this quarter along with the annual price increase for our international clients. Our ASV this quarter was impacted by a multi-year agreement with a corporate client that came to an end this year. Outside of this cancellation, ASV would have grown in line with our fiscal third quarter of 2019.
Helen will discuss this in more detail, but we did benefit on the revenue side from this cancellation as it resulted in a one-time sale of data to the same client. This cancellation impacted our CTS business ASV, otherwise CTS have a solid quarter. Sales of standard data feeds accelerated through our data exploration product which removes the friction from the trial and evaluation process and these were the -- this was the biggest contributor to CTS ASV. Within analytics, our core equity portfolio analytics solutions and transactional revenue from our trading solutions were some of the biggest drivers of growth. The recent launch of our portfolio management platform and continued progress on our risk portfolio services and API solutions allow us to believe in the growth trajectory of this business. However, while analytics was the largest contributor to growth, changes within our specialist sales force and unexpected cancellations led us to fall short of expectations. Additionally, we overestimated how quickly we could monetize some of our new products and we've taken the necessary steps to address these challenges and believe that these adjustments will have a positive benefit on analytics overall.
Taking all of this into account, we now believe that we'll finish the year between $70 million to $75 million for ASV plus professional services, maintaining our mid-single digit growth target, as we told you at Investor Day last year. We've increased guidance for other key metrics such as margin and EPS. And Helen will walk you through those in a few minutes .
Wealth had another strong quarter as it continue to expand gained share and take competitive wins, with a strong pipeline of dynamic sales team that continues to target larger clients, we believe wealth is well positioned to finish this year, strong and will continue to be a growth driver for us. And within research, the results came in better than expected with workstation wins and RMS sales. However, the business also experienced higher cancellations from continued pressure on the buy side. Cancellations in general were higher this quarter across all our regions, mainly from firm closures and consolidation continues to be a trend in our industry. We are proactively making changes to our sales processes, renegotiating client contracts and ensuring clients understand the full value of the FactSet products to help mitigate future losses. Another significant change we made this past quarter was to move all of the product sales specialists into our various business lines, we have instead of continuing to align them to general sales. This organizational change will give the heads of these businesses more line of sight into product and sales and allow for an even more specialized client experience with our sales teams. In terms of geographic breakdown, we continue to have a growing, global presence with diverse clients taking advantage of our open, flexible and configurable offerings. Looking at our Americas and International businesses, Americas delivered a solid growth rate of 5% driven by analytics and CTS and the EMEA and Asia PAC regions grew 4% and 11% respectively, benefiting from the annual international price increase this quarter. Analytics and CTS both continue to be growth drivers in these regions.
In summary, this quarter is a great example of the FactSet team's ability to perform even amid sector wide challenges.We said last quarter that we remain cautious given client cost pressures and this quarter saw increased cutbacks across the industry with clients increasingly tightening belts with an eye to future volatility, which resulted in the higher than usual cancellation rate. Despite these obstacles, we demonstrated growth in Q3 across ASV revenue, EPS and margin and we remain confident in our long-term strategy and believe, we are well placed to help clients navigate a changing environment.
Our open and flexible solutions are resonating in the market, which is seeing growing technology adoption as clients search for new ways to drive efficiency and create value. We believe, our solutions will continue to serve as mission critical for clients in their dynamic investment workflows. We also continue to focus successfully on cost discipline and higher ASV and EPS growth and are taking steps to accelerate our sales pipeline. And we remain a strong steward of returning capital to shareholders with this quarter marking our 14th consecutive year, the Company has increased dividends. Let me now turn the call over to Helen to talk in more detail about our performance this quarter.
Helen Shan--Chief Financial Officer
Thank you, Phil and good morning, everyone. It's great to be here with all of you.We delivered strong operating results in the quarter with over 7% growth in both GAAP and organic revenue versus the previous year. This increase (inaudible) efficiencies led to a growth of over 20% in GAAP operating income, resulting in a solid expansion in our operating margin.
In addition, we grew adjusted diluted EPS by 20%. The one-time sale of data to a corporate client as referred by Phil earlier increased GAAP revenues by $5 million. Our quarterly results in particular revenue, operating income and cash were positively impacted by this sale. For comparability purposes, we exclude this transaction from our results on an adjusted basis. I will now walk us through the specifics of our third quarter. GAAP and organic revenue increased 7% to $365 million and $366 million respectively versus the prior year. Growth was driven primarily by analytics, CTS and wealth. As prior period ASV is more fully recognized as revenue in the third quarter. For our geographic segments, over the last 12 months, Americas revenue grew 8%, International revenue grew over 6% organically. Americas benefited from an increase in wealth, analytics and CTS. International revenue was largely driven by analytics and CTS. ASV plus professional services increased to $1.45 billion at the end of our third quarter at a growth rate of 5.6% year-over-year, and up $4.5 million since the end of our second quarter. The growth was driven primarily by analytics and wealth, and reflects our annual price increase in our International segment. The positive impact to ASV from pricing was approximately $5 million in line with the prior year.
GAAP operating expenses for the third quarter totaled $247 million nearly flat versus last year. As a result, our GAAP margin increased 470 basis points to 32%. Adjusted operating margin increased to 34%, a 310 basis point improvement from the third quarter of 2018, a level we have not seen in five years. This improvement continues to be driven in part by increasingly disciplined expense management and lower employee costs.
Similar to the second quarter of 2019, movements in foreign exchange rates were also a positive driver this quarter, but to a lesser extent. The dollar strengthened against several of the currencies to which we have the greatest exposure, including the pound, the euro and the Indian rupee, providing a favorable impact to our margins of approximately 80 basis points. As a percentage of revenue, the expense improvement came largely from our cost of services, which was 360 basis points lower than last year on a GAAP basis. On an adjusted basis, the improvement was 250 basis points and margins were impacted positively by faster growth in revenue versus cost of services year-over-year. Contributing factors include decreases in both employee compensation and contractor fees. This benefit was partially offset by an increase in computer-related expenses, as we continue to upgrade our technology stack.
SG&A expenses, expressed as a percentage of revenue experienced an improvement of 110 basis points over the prior year period on a GAAP basis. On an adjusted basis, this improvement was approximately 60 basis points. This result is driven primarily by expense reductions in travel and entertainment, marketing, as well as employee compensation. Given our solid results, we are increasing our guidance range for both GAAP and adjusted operating margins. Our tax rate for the quarter was 18.6% impacted primarily by out of period and one-time tax adjustments. Excluding these discrete items, our tax rate would be 14.2%. Our tax rate has trended lower this quarter from a higher level of stock option exercises and thus, we are lowering our guidance for the fiscal 2019 annual tax rate. I will discuss that further in a few minutes.
GAAP EPS increased 24% to $2.37 this quarter versus, $1.91 in the third quarter of 2018. This increase is attributable to higher revenue, improved margins and a lower effective tax rate. Adjusted diluted EPS grew 20% to $2.62. A reconciliation of our adjustments to GAAP EPS is disclosed at the end of our press release. Free cash flow, which we define as cash generated from operations, less capital spending was $148 million for the quarter, an increase of 24% over the same period last year. This is the strongest free cash flow, we have seen in the history of FactSet. The strength was primarily due to higher net income and improved working capital, including increased cash collections, partially offset by higher capital expenditures.
Our CapEx has trended higher this year due to our new office space build out for some of our locations and increased investments in technology. Looking at our share repurchase program for the second quarter, we repurchased a 175,000 shares for $48 million at an average share price of $272. Additionally, this week, our Board of Directors approved an increase of $210 million to the existing share repurchase program, bringing a total of $300 million now available for share repurchases.
Over the last 12 months, we have returned $327 million to our investors in the form of dividends and share repurchases. We remain committed to buying back our shares at a steady pace and continue to balance the capital allocation between business investment and shareholder returns.
Moving to our annual outlook for the year. We are increasing and narrowing our guidance range for most of our metrics except ASV plus professional services. ASV plus professional services for the year is now expected to be between $70 million and $75 million. We are tightening our GAAP revenue range to $1.42 billion and $1.44 billion. Our GAAP operating (inaudible) benefiting from this quarter's non-core sale transaction will now be between 30% and 30.5%. We are also increasing our adjusted operating margin guidance to 32.5% and 33%. We are pleased with the cost discipline measures that we have taken to be able to implement in order to achieve these results.
As I explained earlier, our tax rate has trended lower this year due to one-time items and a higher-than-expected impact from stock option exercises. We are lowering our annual effective tax rate for the full year. It is now expected to be between 16% and 16.5%. And finally, we are increasing and tightening our ranges for earnings per share. GAAP diluted EPS range is $8.90 and $9. Adjusted diluted EPS range is between $9.80 and $9.90. The midpoint of this guidance represents a 15% growth over the prior year on an adjusted basis. We are proud of our operating results this quarter. Our dedication to cost discipline and process improvement continues to yield growth and we are on track to finish the year on a strong note for revenue, margin and EPS. As we continue to make prudent investments to drive business growth aligned with our long-term strategy, we expect that FactSet will remain resilient, despite sector and industry headwinds. And of course, we look forward to continuing our proven track record of returning value to our shareholders.
With that, we are now ready for your questions. Christine?
Operator
Thank you. (Operator Instructions) Your first question comes from the line of Manav Patnaik from Barclays. Your line is open.
Manav Patnaik--Barclays -- Analyst
Hi, good morning. The first question, I guess was when you had first initiated guidance around the ASV. I mean you had almost sounded like it was conservative and you had a bunch of these renewals and all in the back half that could even add to that. So I was just curious like, what was the real change that you're kind of referring to today, like, was it just a lack of visibility or did something materially change along the way in terms of that shift?
Philip Snow--Chief Executive Officer
Hi Manav. It's, Phil. Thanks for the question. So yes -- it is difficult for us typically to look one year ahead. We -- I think, I've stated multiple times, it's a little bit easier for us to see kind of three to six months out. So based on what we saw in terms of the market and what we thought, each of our businesses could do over the year. That was our guidance at the beginning of the year. I would say to summarize, research, CTS and wealth are all pretty much coming in as or above expected from the beginning of the year. But the biggest area, where we're seeing kind of a difference is our analytics business. So our analytics business as you know, grew at 10% at the end of last year and I would say that's the one where we're seeing the biggest difference versus our original projection. Now, it still is a growth driver. It's going to add we believe the most absolute ASV out of any of the different business lines this year, but it's not, it's just not growing as quickly as we anticipated it would.
Manav Patnaik--Barclays -- Analyst
Okay. And then maybe if I could just follow up on that point then. Can you just elaborate more, is that because of competition, or I guess just anything there on why it's slowing down, it sounds like temporarily but just why is that happening?
Philip Snow--Chief Executive Officer
Yeah. So there are a few things and when we look into it. One is the fixed income, a piece of that business is not growing as quickly as it did last year. Part of that we believe has to do with some of the specialist organization that I spoke about. So our specialist were in the sales organization for a few years for analytics and we've got away from having a completely specialized fixed income team and it was more of a multi-asset class team. But I think what we've learned over the last few years is, it's good to have that additional specialization within the Group. So we've shifted about a third of the client facing sales force back into our business lines, so that the leaders of those businesses now can work more closely with the sales specialists who are still going to work very closely with the general sales population. But we do think that that was a piece of it. There certainly wasn't all of it. Another one is, I think we overestimated a little bit how much revenue or ASV we would get from some of the newer products. So part of that was our APIs that we opened up, it was hard to predict. We now have four or five APIs out in the market for analytics, we are selling them. We're just not getting as much as we thought we would at the beginning, but we're very confident in that strategy. And we believe, over time, we'll get material ASV and growth from opening up the analytic suite outside of the core workstation.
So if I was to highlight two things. Those would be the two.
Manav Patnaik--Barclays -- Analyst
All right, thanks, guys.
Operator
Your next question comes from the line of Bill Warmington from Wells Fargo. Your line is open.
Bill Warmington--Wells Fargo -- Analyst
Yeah, good morning, everyone.
Helen Shan--Chief Financial Officer
Good morning.
Bill Warmington--Wells Fargo -- Analyst
So I wanted to ask -- I wanted to ask for some more detail on the Q3 expense speed (ph) and just -- you ran through a -- the numbers, if you could summarize and for me the -- in terms of how much came from the -- from FX, from acquisition integration, from core expense reduction and then trying to get also a sense from of -- of how sustainable it is?
Helen Shan--Chief Financial Officer
Sure, thanks for that question. When we think about what happened -- what we accomplished in Q3. It's really a continuation of execution on our operational plan. So for the quarter. I would say about 220 basis points were from operational efficiencies and I would classify, that really into little less than half was from expense management of discretionary items T&E, as well as marketing and the balance is driven by productivity improvements and that continues to reflect the mix change between high and low-cost countries in terms of the percentage of employees. So let me give you a little bit additional color on that. If you look at the number of employees in Q3, this year versus last year, we saw a reduction in our -- in the number of employees in our high-cost countries by 4% and an increase in our low-cost countries by 6% and so that really accounts for that mix change. And I'll address the long term view on that. And then -- and then the rest, Bill was on FX. So where the favorable FX provides about 80 basis points for us.
So that is around a quarter of the beat (ph) that we have in terms of the improvement in the margin and that's -- in line to how we did it last quarter except for last quarter it was over 50%, so more of the improvement this quarter came from operational efficiencies. As it relates to the sustainability, another good question. Let me try to address that. If you think about the drivers of where we're getting the benefit. It really is starting with the way that we operate, we established business unit -- lines of business a couple of years ago and this year, we now have cost centers and we have budgets and we have now put the accountability broader and deeper into the organization. So we have folks in our leadership team who have the accountability, have the discretion to be able to manage their head count and expenses and they're doing that. They're managing their spend and they're making more informed decisions.
The other again is the mix between high and low-cost countries.The percentage mix has changed, so if I look at this year to last year, we now have 2% higher in -- of our employees in low-cost countries. And so if I think about those two things, plus some of the integration that we were -- the expense reductions that were expected which quite frankly, it's now quite integrated with the rest of our businesses, we do know of certain contracts, whether it's in technology on content that we've been able to rationalize and those have come through in '19 as well.
So while we continue to look for ways to invest back in for long-term growth, we do believe that a lot of what we have accomplished, we should be able to sustain.
Bill Warmington--Wells Fargo -- Analyst
Okay. And for my follow-up, so I wanted to ask about the, you moved your terminal business to the cloud a couple of years ago and that enables you to, to lower the cost of delivery and to pursue and win some higher seat count opportunities like wealth management. And when you, when do you move your underlying FactSet infrastructure to the cloud? And what does that mean for near and mid-term margin targets?
Philip Snow--Chief Executive Officer
So just to clarify , I mean, we. We have our own sort of private cloud, the web product that we deployed to the large wealth deal we did and others that's still in our private cloud, what we have up in the public cloud now is more of the open FactSet architecture, which is part of what CTS is doing and we do use the public cloud for a few other things, particularly on the analytics side when we need additional capacity for some very heavy duty calculations. So I think, we are Bill, on an -- migration to the public cloud, we can't give you an exact timeframe.
We're considering all of that as part of our multi-year strategy. But I think what we have learned is that's the direction we need to go. It's the direction the world is going and it's going to allow us to develop product a whole lot faster and it's also going to remove a lot of friction from the sales process. So we saw that at CTS having -- the CTS offering up in the public cloud, and having the data discovery module has lowered the amount of time it takes to begin trialing our products by orders of magnitude. It take sort of a day now to go up and begin looking at all of the content we have and to make a decision of versus what it might have taken previously which was weeks for both us and the client to begin setting up the trial and getting it all set up.
So that's a great business model. We think we can leverage it for lots of pieces of our business. The analytics APIs that I mentioned on the previous question, a lot of those were available now if you go into our developer portal. So that's another example of where we're removing friction and exposing our product in new and interesting ways to the clients.
Operator
Your next question comes from the line of Shlomo Rosenbaum from Stifel. Your line is open.
Shlomo Rosenbaum--Stifel -- Analyst
Hi, thank you for taking my questions. Hey Phil, I'm just trying to understand the dynamics between revenue and ASV right now or I'm seeing like the revenue kind of -- organic revenue growth kind of inch up, but I'm seeing the ASV growth kind of inch down. And usually, those things move in tandem, and if I'm saying the ASV inch down, usually revenue should follow the other direction in -- it doesn't seem like you are, you're seeing that that's what you think is going to happen, it sounds like you're confident what's going on. So you can kind of give us a little bit more background on that.
Philip Snow--Chief Executive Officer
So what I'll do is I'll describe the one-time deal or transaction that I mentioned for Q3 and then Helen can follow up, I think a little bit on your question as well. So -- and as I mentioned in my script, we did have a one-time pretty large cancellation in Q3. It was about $4.5 million in ASV to a corporate client. So this has been a 10-year -- over a 10-year contract where FactSet was distributing one of our core content sets that we collected and the client decided to go in another direction. And I would say that's very comparable to FactSet. Over time, we've taken a lot of third-party content internally, but you've seen us turn into a content company and sort of go in another direction for some content.
So there's always the buy and build partner decision when it comes to content. So that obviously negatively impacted our ASV for this quarter. I might have misspoke a little bit in my script, I think what I meant to say was in the absence of that $4.5 million transaction, our growth rate would have been pretty consistent with the last quarter and on an absolute ASV basis, pretty consistent with Q3, of last year. We did get a one-time payment of $5 million at the end of this contract, which Helen mentioned that was booked as revenue, but I'll let Helen explain that in a little bit more detail.
Helen Shan--Chief Financial Officer
Sure . So I think the number that you are looking at there for revenue, that's a GAAP number of 7 (ph) -- over 7% and so that includes this $5 million one-time benefit from the sale. So if you strip that out, we're more at a 5.7% increase and that is more aligned, I think to what you're trying to get at. In terms of the -- a lot between ASV and revenue.
Shlomo Rosenbaum--Stifel -- Analyst
Okay and then just if you don't mind, just on a follow-up, what in terms of what you're seeing in terms of pipeline, what you're selling. You mentioned certain things are not selling as well as they were before. Some of that, it sounds a little bit more kind of belt tightening type stuff or I guess just the environment, not quite as good as you thought it would be, but on the other hand, the tone of what you're seeing just seems still pretty confident. Should we see kind of a pick-up from here? In other words, is your pipeline building that you would expect that we're still bouncing off the bottom in terms of the growth rates or, because I think you said that kind of 5% to 7% organic growth was more at the last Analyst Day is the way to think about things. And just wondering if you could comment in that context?
Philip Snow--Chief Executive Officer
Yeah, it's a great question. And again, Shlomo, it's hard to see into the future that far. When I look out at Q4, the pipeline is very comparable to what we saw this time last year. So I think we're, we feel good about the adjusted guidance that we gave you sort of based on what we can see today. And obviously, we're busy thinking about next fiscal already. And looking at all of our businesses, we have so much great product coming to market within each of our business lines and we've got larger deals in the pipeline than FactSet historically has had. Some of those are pretty binary, right, though so sort of like the BAML deal, you either get it or you don't. So that can actually, obviously materially affect our growth rate. But I do feel that we have a very good opportunity to continue at the pace we have and accelerate from here.
Operator
Your next question comes from the line of Toni Kaplan from Morgan Stanley. Your line is open.
Toni Kaplan--Morgan Stanley -- Analyst
Perfect. Thank you. Phil, you mentioned the sort of unexpected cancellations. Could you give us a bit more color on, are there any commonalities across client type. Are they sort of newer clients or long-term clients? The size of the clients or is there any way to sort of group them as opposed to just, that would be helpful.
Philip Snow--Chief Executive Officer
So Toni, your question is about the clients that cancel completely?
Toni Kaplan--Morgan Stanley -- Analyst
Yeah.
Philip Snow--Chief Executive Officer
Yeah. So I think we showed that we were net around 50 positive clients for the quarter. I would say most of the positive additions that were on the wealth and corporate side, which is pretty consistent. We're adding a lot of new names in wealth and in corporations. I think what we saw was a bit of a tick down in the institutional asset management space and a little bit of a tick down in terms of hedge funds. Hedge funds, though were positive versus Q3 last year. So I think, we continue to do very well in existing hedge funds with, our CTS feeds in particular. But I think, we are seeing, I think it's not unexpected. Right. The most challenged part of the market is the institutional asset management space.
So we're seeing very good growth in the asset owner of space which is smaller, for us. But relatively newer compared to history. But if I was to summarize it, I think it's the -- the institutional asset managers or the traditional asset managers those seeing the pressure but we are seeing the cancellations.
Toni Kaplan--Morgan Stanley -- Analyst
Okay, great. And I know Helen, you talked about the margin sustainability to an earlier question. But just wanted to get an update on -- originally at the Investor Day last year, there was sort of that target of 100 basis points of margin expansion over the next few years. And this year, I think you've had -- you've outperformed that. And so just trying to get a sense of have you accelerated the pace for just given that FX has been a big contributor or should we still be looking at the 100 basis points next year as well. Thank you.
Helen Shan--Chief Financial Officer
Sure. Now, thanks. Thanks for your question. Listen, we're pleased about how we've been executing our operational plan, and our ability to meet and actually beat our commitment for FY '19. As we sated on the last call, we're not looking to manage to a margin but really grow revenues and earnings. We are going through our strategic planning process right now and so we're planning to determine how do we best invest to sustain for long-term growth and this is going to include spending in areas, such as in content and in our infrastructure including technology -- of technology stack and our people. We're not necessarily -- we did get a benefit from FX for this year and, but we're not necessarily assuming that going forward. But we'll come back to you, when we've got new information as it relates to our margins going forward.
Toni Kaplan--Morgan Stanley -- Analyst
Thank you.
Operator
Your next question comes from the line of Peter Heckmann from Davidson. Your line is open.
Peter Heckmann--Davidson -- Analyst
Hi, thanks for taking my question. This may just be a follow-up, but it's a wide range of potential growth rates in the fourth quarter, really just a product of the decimalization of your guidance. Or are there some other uncertainties that you're trying to convey?
Helen Shan--Chief Financial Officer
Make sure, I follow your question because we've narrowed our guidance across the board.
Peter Heckmann--Davidson -- Analyst
But, so, if we take out the first three quarters. The fourth quarter is implying kind of 1% to 7% revenue growth.
Helen Shan--Chief Financial Officer
Well, that's because, I think you're talking about revenue is because the numbers are so large, $1.42 billion to $1.44 billion, you're trying (ph) back into. I wouldn't necessarily look at trying to look at that. I mean that's -- we was much wider before, if you look at our original guidance that was widest. Because the numbers, I think it's a -- it's the law of numbers here that might be a little bit confusing. I don't see that we -- you shouldn't necessarily look to a difference in our -- we're not trying to convey a material difference in our growth rate.
Peter Heckmann--Davidson -- Analyst
Okay. Okay and then just as a follow-up. Can you just talk about the tax item that occurred and was added back to non-GAAP EPS?
Helen Shan--Chief Financial Officer
Yeah, sure happy to do that. So yeah, these were related to a number of things including adjustment to our provision from last year. R&D tax credit, some -- an impact from US tax reform, the toll charge, true up. So it's really a number of things. Again out of this -- this period and in some cases from last year. So that helps drive that delta. But also, as we mentioned, overall, the higher exercise of options by employees where we get the tax benefit of that, it was higher than we would have expected. And that's a material reason as well.
Peter Heckmann--Davidson -- Analyst
Got it. Thank you.
Helen Shan--Chief Financial Officer
You're welcome.
Operator
Your next question comes from the line of Alex Kramm from UBS. Your line is open.
Alex Kramm--UBS -- Analyst
Hey, good morning, everyone. Just Phil, in your prepared remarks, when you were addressing the tough environment out there. You were talking about taking steps with your clients to make sure cancellations will decline. Is that -- it sounded to me like you're taking some pricing steps maybe on the negative side to maybe lock in some clients, can you just flush it out a little bit to know what's going on there? Thank you.
Philip Snow--Chief Executive Officer
Sure. So I think really -- what we're doing there, Alex, is continuing to elevate the level of conversation, we have, particularly with our larger clients. So given the breadth of our offerings now and the challenges our clients face, there is a very good opportunity to sit down with them, educate them about everything we can do from a content and technology and workflow standpoint. And look to get into multiyear agreements, where we can grow and succeed together. So I think that's a little bit more of what we're referring too. Of course in a competitive environment, price does come into it, but I think, we're looking to have conversations with clients before their contracts come to an end to talk about lengthening the contract and restructuring things in a way, which is a win-win.
Alex Kramm--UBS -- Analyst
Okay, thank you. That's helpful. And then just, just for the 4Q guidance on ASV or the implied 4Q guidance. Maybe, we're splitting hairs here. But if I look at the sequential quarter-over-quarter increase that you need at the mid point. I think, it's still a decent step up and I know the fourth quarter is usually a pretty good quarter. And I think somebody asked that before in terms of the pipeline, can you just describe like are there a couple of big wins that you have in the pipeline that need to happen to get to this or is this is a very diverse set of wins that you're looking for. I guess, I'm trying to ask like are you really looking for a couple of big ones here to make the year or is it just business as usual that should get you there?
Philip Snow--Chief Executive Officer
That's a good question. It's the second. It's the business as usual. So I took a very close look at the pipeline. Q4 is a massive quarter for us. But in there, it's a very strong diverse portfolio of opportunities both by geography and by business line. So there are no massive deals, either on the positive or negative side that I believe will impact the quarter in a binary fashion. I think, it's really just a question of the sales team executing at a very high level, which they will do to close a large number of deals in a relatively short period of time. But that's what we do every Q4.
Alex Kramm--UBS -- Analyst
All right, very helpful. Again, thank you.
Philip Snow--Chief Executive Officer
Sure.
Operator
Your next question comes from the line of Joseph Foresi from Cantor Fitzgerald. Your line is open.
Drew Gutman--Cantor Fitzgerald -- Analyst
Hi, this is Drew Gutman on for Joe. I just wanted to ask about how the impact of wealth management this year and what you've seen moving forward?
Philip Snow--Chief Executive Officer
Yes. So obviously, we had that fantastic deal that we signed last year and executed on this year and we capture the majority of the revenue in the first half. What we've been doing for the rest of the fiscal year really is just building the pipeline. So we've got a lot of interest from a lot of clients given the visibility of that deal. We've had some very successful trials that we've been running and I would expect the majority of the impact to start hitting next fiscal year, not in Q4, of this year.
Drew Gutman--Cantor Fitzgerald -- Analyst
Great. And then just as a follow-up. Looking at the Americas, it looks like it continues to be strong, so maybe you could just touch on the demand there and what you're seeing from there?
Philip Snow--Chief Executive Officer
Yes. So the Americas team is performing very well. In a lot of ways, it's our most mature business just in terms of the products that we have for this market and the size of the sales team.I think Americas is really going to benefit highly from some of the new products that we've been releasing, a great example is our portfolio management platform. So we've been hard at work the last two years or three years integrating the acquisitions we did for what we've been calling the portfolio lifecycle and this quarter is the quarter that we released our portfolio management platform, which we believe will have a good impact for us in the front office of the buy side and the Americas sales team now, I think is really getting geared up to go out there and begin to educate clients about this offering.
Drew Gutman--Cantor Fitzgerald -- Analyst
Great, thank you.
Operator
Your next question comes from the line of Ashish Sabadra from Deutsche Bank. Your line is open.
Ashish Sabadra--Deutsche Bank -- Analyst
Thanks for taking my question. Phil, maybe just a quick follow-up, you talked about increased competitive pressure also which is weighing on cancellations but you're also seeing some of your clients having cost pressure and then the changes within your sales force as well. So question there is with all these headwinds, is there any potential risk to converting the pipeline in the fourth quarter given fourth quarter is such as strong in terms ASV and pipeline conversion?
Philip Snow--Chief Executive Officer
I got a lot of confidence in our sales force and we have a great product here. And clients like working with us. They trust FactSet. So I think, we're very well positioned to execute on Q4. There is nothing as I look out over the next few months that makes me feel any different than I felt at this time last year.
Ashish Sabadra--Deutsche Bank -- Analyst
Okay, that's helpful. And maybe Helen, a quick question. The one-time revenue of roughly $5 million which we saw in the third quarter, is it fair to assume that it flowed directly to the bottom line in the sense, there wasn't really any cost associated with it? And so, what was the amount -- sorry. Go ahead.
Helen Shan--Chief Financial Officer
Yeah, so you are correct on that, so that's why you're seeing that difference between GAAP and more significant difference between GAAP and adjusted this quarter. So you are right that just flowed straight through.
Ashish Sabadra--Deutsche Bank -- Analyst
Okay, thanks.
Operator
Your next question comes from the line of David Chu from Bank of America. Your line is open.
David Chu--Bank of America -- Analyst
Thanks, guys. Can you just discuss what you're seeing from the sell side. It looks like ASV moderated quite a bit after five straight quarters of acceleration?
Philip Snow--Chief Executive Officer
Yes. So the sell side is pretty lumpy. We've had a very good run in terms of increasing our footprint on the sell side. Q4 is a little hard for us to gauge, that's when a lot of the banks do their hiring, and that's actually one of the hardest things to predict in terms of the Q4 pipeline sometimes as how many new hires the banks will have and that can be a lot of people multiplied by the price of the FactSet workstation. So we typically get more visibility on this as the quarter comes to a close, but we're very pleased with the work we've done on the sell side and we're doing a lot within our product, particularly on the content side that I think is going to be exciting for our sell side clients as we move into -- to next fiscal year.
David Chu--Bank of America -- Analyst
Okay and then Helen just based on the guide, it looks like intangible asset amortization, is it really expected to fall off in the fourth quarter? Just wondering, if I'm thinking about this correctly?
Helen Shan--Chief Financial Officer
Sorry, that you expect it to fall off, you said.
David Chu--Bank of America -- Analyst
Yeah, because, I mean it looked like it was about -- over $5 million this quarter, right or around $5 million. And based on your annual outlook, does it -- it's expected to fall off quite a bit .
Helen Shan--Chief Financial Officer
Okay. So that's probably a question, you want to follow up with Rima on, but there is nothing material change that that we would see happening. So there might be something which need to clarify with you.
David Chu--Bank of America -- Analyst
Okay. Sounds good. Thank you.
Helen Shan--Chief Financial Officer
Right. Thanks.
Operator
Your next question comes from the line of Peter Appert from Piper Jaffray . Your line is open.
Peter Appert--Piper Jaffray -- Analyst
Hi, good morning. So just -- stock has been a big outperformer obviously. And I'm wondering if that has any impact on your thought process in terms of the -- the pace of buybacks going forward?
Helen Shan--Chief Financial Officer
Sure. Thanks for -- thanks for that. I'll take that one. I mean, year-to-date, we've bought back stock around $150 million (ph). But we're opportunistic is how we enter into the market like you, we watch the share price every day. So we're pretty happy with the trajectory of how the stock performed over the quarter. But from our perspective, we weren't necessarily in the market there to chase that. We continue to be very good about returning cash to shareholders.
We increased our dividend this past quarter, and we just increased the share repurchase program. So right now, we're looking for probably continue to target around $200 million for the fiscal year, but again, we're opportunistic. So we'll see how things go .
Peter Appert--Piper Jaffray -- Analyst
Okay. And then, Phil, I'm wondering if you have any thoughts on is -- the change in the competitive dynamic with Refinitiv now separated from Thomson Reuters, whether you're seeing that having any impact on the market or any changes in behavior related to that?
Philip Snow--Chief Executive Officer
No. Peter, I mean we've not -- actually not seeing much of a change in behavior. So there are -- we do compete with Refinitiv. I would say, that's primarily going to be on the wealth side, I would say moving forward. But beyond that, we've not seen much of a change at all.
Peter Appert--Piper Jaffray -- Analyst
Okay, thank you.
Philip Snow--Chief Executive Officer
Sure.
Operator
Your next question comes from the line of George Tong from Goldman Sachs. Your line is open.
George Tong--Goldman Sachs -- Analyst
Hi thanks, good morning. You called out the cancellation by a large corporate client this quarter since they decided to go in another direction.Can you elaborate on why the client canceled? If it was due to pricing or product capabilities and then talk about how cancellation rates more broadly, are trending.
Philip Snow--Chief Executive Officer
Yeah, so that's, it's difficult to put yourselves in the mind of the other clients. But I think, as I mentioned earlier, if you're thinking about having content within your organization or on your platform, you've got a buy, build or partner decision. It's something that FactSet faces every day and I think in their case, they probably decided that either building it or partnering with someone else was the best solution for them and that could be complicated in terms of their decision making process. When we're talking about cancellations of this type on FactSet, this was a little bit of an outlier for us, honestly, so we do have a very good business with corporates. But this was probably the largest one that we had. So I would not expect more of this -- of this size or frequency, like I said this was a 10-year contract, it was a very long contract.
So there was nothing about our products which we've continued to improve and is massively successful on our platform. That was the reason for the cancellation.
George Tong--Goldman Sachs -- Analyst
Got it. And you indicated that you overestimated how much revenue you would get from new products and that contributed to some of the ASV guidance modifications. Can you discuss what caused that over estimation, whether it's a function of evolving competitive dynamics more recently, whether it's due to pricing or if it's due to sales force efficiency?
Philip Snow--Chief Executive Officer
Great question. A lot goes into, I think the business plan. When you are releasing new product there's a lot of factors. So I think, one of the things I'm excited about is the increased discipline that we have here internally in terms of what we're spending our money on -- on our projections. I think, we're going to get better and better over the time. I'm very confident in the direction. Like I said, we've already begun to monetize analytics APIs, but we've just learned a few things in the market in terms of the functionality the clients would want, how we want to price it and so on. So that's -- that's really all the color I can give you on that one.
George Tong--Goldman Sachs -- Analyst
Got it. Helpful. Thank you.
Operator
Your next question comes from the line of Hamzah Mazari from Macquarie Capital. Your line is open.
Mario Cortellacci--Macquarie Capital -- Analyst
Hi, this is Mario Cortellacci filling in for Hamzah. Could you just give us an update on what you're hearing from clients given the current environment. Just want to see if maybe you could compare what you're hearing in the US versus Europe versus Asia and kind of compare those for us?
Philip Snow--Chief Executive Officer
So I think the themes are very consistent, Mario, globally. Clients are looking to drive efficiencies within their organizations, so that they can free up their resources to work on higher value activities and really look for more offer and so on. So a lot of our conversations really around how we can help them with those efficiencies. Part of that is just them consolidating their services on to FactSet. Lots of clients are trying to make sense of all the data they have within their organizations as the pace of data explodes and people need to look and sift through more of it. So we have lots of conversations with clients around, how to help them, organize their data, how to outsource stuff, things they want to do in the public cloud, that we can help them with. It really -- it's not that complicated. I think clients, just want to do some of the things more efficiently with firms like FactSet, so they can really focus on where they add value.
Mario Cortellacci--Macquarie Capital -- Analyst
Got it, thanks. And just a quick follow-up. I mean, we know that there is pressures from clients regarding cost, but I mean, could you give us a sense of where or when you can reach an equilibrium or do you have working time frame that you guys use while planning for the future. Or how do you think about catalysts that could help you with pricing longer term?
Philip Snow--Chief Executive Officer
Could you restate the question?
Mario Cortellacci--Macquarie Capital -- Analyst
Sure. Yeah, I mean we -- so we know that there is costs from, I'm sorry, there is cost pressures from clients. Do you want to see if you ever thought about like an equilibrium regarding pricing or is it the time frame that you use while planning for the future. Or maybe if you think about catalysts that could help you with pricing longer term?
Philip Snow--Chief Executive Officer
So if pricing is something we're looking at, FactSet is very modular in terms of our pricing. And we may have over complicated things as we've evolved as an organization. So we're in the middle now of evaluating our business model. And as we open up our platform, we're considering new ways that we can get into enterprise agreements with our clients. So that's a piece of work that's ongoing. And I would expect that you might hear more from us on that, but it wouldn't be for probably at least a couple of quarters.
Helen Shan--Chief Financial Officer
So I guess, one thing you might consider, obviously the way to continue to capture price is putting more value for the client, as Philip saying, that's what we're focused on. Clients want to pay for what they will continue to have pricing pressures, but the way to get to the ability for equilibrium to use your words is that we'll continue to add value and clients will want to pay for that.
Mario Cortellacci--Macquarie Capital -- Analyst
Thank you.
Operator
Our next question comes from the line of Keith Housum from Northcoast Research. Your line is open.
Keith Housum--Northcoast Research -- Analyst
Good morning. I was hoping to explore the professional fees line, I know but you guys have includes an ASV. If you could provided the color, obviously that number has been increasing. But how long does it usually take those professional fees to turn around and get recognized into revenue. And then perhaps is the margin profile different from those fees than you would think of the rest of the ASV bucket?
Helen Shan--Chief Financial Officer
Sure. Let me try to talk that through, and then any follow-ups you have, you can definitely have with Rima. But the way that we take a look at professional fees, is that we look at that over the last 12 months and add that in. We don't try to project out per se from an -- it's -- and you'll think about ASV is an annual subscription value, professional fees are quarter-by-quarter. So from that perspective, it's really looking backwards on what we have already captured. In terms of how that comes through, from a revenue perspective, it goes through in the quarter that it gets realized.
Keith Housum--Northcoast Research -- Analyst
Got you. How about the margin profile of that business?
Helen Shan--Chief Financial Officer
Well, it's more of a people-intensive business. But honestly, it get added on to some of our -- it's a mix. So some of it gets added onto our other existing business. So we don't really necessarily look at it as its own stand-alone business.
Keith Housum--Northcoast Research -- Analyst
Okay, then just real quick, in terms of the change in sales leadership over the quarter. Any change in the sales strategy in terms of how you guys go to market?
Philip Snow--Chief Executive Officer
So I think sales has executed exceptionally well over the last two years. I think the biggest change is moving the sales specialists into the business lines that we've created. I think the biggest impact we'll see there is within analytics and CTS. So about a third of our client facing sales force, our sales specialists that know these products in very high detail, they're very good at pre-sales and they also do the implementation. So we think, we will get great efficiency by moving the specialists into these groups. That's one change. I think, we're also going to be looking at the FactSet consultants and how they are coupled up with the sales force to make all of our client facing staff a little bit more commercially focused not just the general sales people. And continuing to push out the regional model that we've begun over the last two years, as well as expanding our focus on the C-suite.
So we had a strategic client group, which is our Top 30 or so clients, but that's been very successful in elevating conversations and we're looking at ways to expand that within the different regions. So that's the summary. I think some of you will have an opportunity to meet Franck, pretty soon. As we meet with you between quarters and I think, he would be very excited to talk to you about some of the changes he is planning to bring to the organization.
Keith Housum--Northcoast Research -- Analyst
Thank you.
Philip Snow--Chief Executive Officer
Sure.
Operator
Our last question comes from the line of Patrick O'Shaughnessy from Raymond James. Your line is open.
Patrick O'Shaughnessy--Raymond James -- Analyst
Hey, good morning. So Symphony Communication raised another $165 million in capital, during the quarter. Are you guys seeing any signs or any evidence of adoption of Symphony as a chat tool by your client base at this point?
Philip Snow--Chief Executive Officer
So we -- we have partnered with Symphony over time. We do see within our clients good, I think adoption within the clients, but we've not yet seen a lot of cross firm communication. So I think it's --- I think it's there, but we don't see a lot of communication directly between the buy side and the sell side on Symphony. But I am not -- I don't want to position myself as an expert in that area by any means, so.
Patrick O'Shaughnessy--Raymond James -- Analyst
Okay, fair enough. And then maybe one last quick question on the tax rate. So moving lower this year due to the stock benefits, any implications as we kind of think about modeling tax rate going forward or are you kind of looking that as a benefit isolated to fiscal 2019 at this point?
Helen Shan--Chief Financial Officer
Right. So I wouldn't necessarily at this point, change the view on that, that is such a -- I'll use the word unpredictable given the trajectory of our share price, if it continues, we would expect that to be a continued positive for us. So I would probably just stay within our range for now.
Patrick O'Shaughnessy--Raymond James -- Analyst
Thank you.
Operator
There are no further questions at this time. Mr. Philip Snow, I turn the call back over to you.
Philip Snow--Chief Executive Officer
Well, thanks everyone for joining us on the call today, we are encouraged by the growth we achieved this year amid challenging headwinds and see this as a proof point that our long-term strategy is working. We expect to finish the year with strong revenue, margin and EPS and to continue to capture wallet share and deliver value to shareholders. If you have additional questions, please call Rima Hyder and we look forward to speaking with you next quarter. Operator. That ends today's call.
Operator
Thank you, this concludes today's conference call. You may now disconnect.
Duration: 57 minutes
Rima Hyder--Vice President
Philip Snow--Chief Executive Officer
Helen Shan--Chief Financial Officer
Manav Patnaik--Barclays -- Analyst
Bill Warmington--Wells Fargo -- Analyst
Shlomo Rosenbaum--Stifel -- Analyst
Toni Kaplan--Morgan Stanley -- Analyst
Peter Heckmann--Davidson -- Analyst
Alex Kramm--UBS -- Analyst
Drew Gutman--Cantor Fitzgerald -- Analyst
Ashish Sabadra--Deutsche Bank -- Analyst
David Chu--Bank of America -- Analyst
Peter Appert--Piper Jaffray -- Analyst
George Tong--Goldman Sachs -- Analyst
Mario Cortellacci--Macquarie Capital -- Analyst
Keith Housum--Northcoast Research -- Analyst
Patrick O'Shaughnessy--Raymond James -- Analyst
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FedEx (FDX) Beats on Bottom Line, Micron (MU) Misses
A couple key earnings reports hit the tape after Tuesday's market close, with global delivery and logistics giantFedEx FDXbeating bottom-line estimates by 20 cents per share, while semiconductor majorMicron MUmissed the Zacks consensus by 4 cents per share. For revenues, FedEx came in about exactly even with estimates at $17.8 billion, while Micron surprised to the upside to $4.79 billion.Put in proper context, however, Micron's top line took a big hit year over year -- $7.8 billion was what the company reported in the year-ago quarter. Industry-related difficulties related to U.S.-China trade-war casualty Huawei and its access to U.S.-based semi firms like Micron (which is based in Boise, ID) have already tripped up companies likeBroadcom AVGO, so investors were looking for a bit of a slip in MU's report this afternoon. In fact, the Semiconductor Memory sub-industry is the lowest in the Zacks universe: 254 out of 254.For FedEx, this is the company's first earnings beat in its last 4 quarters; FDX had missed on the bottom line 6 of its previous 10 quarters. International softness -- again stemming from the trade war between the U.S. and China -- were expected here, as well. Earlier today, FedEx filed a lawsuit against the U.S. Department of Commerce, claiming the department's prohibitions related to Export Administration Regulations is unfairly hurting FDX's business.While both these companies have been facing challenges that showed up in quarterly data this afternoon, neither suffered the dire possibilities that some analysts were expecting. We now look to the companies' conference calls for a way forward for both. Ahead of the earnings releases, FedEx was rated a Zacks Rank #2 (Hold), while Micron was a Zacks Rank #5 (Strong Sell).
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Wayfair Employees Are Protesting After Learning the Company Sold Furniture to Migrant Detention Facilities
Photo credit: Getty Images From House Beautiful Employees of furniture and home goods company Wayfair have announced a walkout tomorrow, Wednesday, June 26th, in protest of the retail brand selling beds to child migrant detention facilities at the southern United States border. As the Boston Globe reported, after learning of these orders being carried out, Wayfair employees sent an email to the leadership team, detailing their concerns and requests: to cease all business deals with BCFS (a non-profit government contractor managing migrant camps at the border) and other contractors involved, as well as establishing a new code of ethics for business-to-business sales for the company. For the record, here’s the letter the employees sent, which includes the details of the B2B order that wayfair fulfilled. pic.twitter.com/mfKs1krawu - Dais (@sun_daiz) June 25, 2019 According to the letter signed by 547 employees, the particular order in question was a $200,000 order meant for a facility in Texas that reportedly houses “3,000 migrant children seeking legal asylum in the United States.” "Wayfair is confirmed to be selling beds to the border camps!" Twitter account @wayfairwalkout wrote . "Employees asked for the order to be canceled and management said no. Everyone deserves a home they can feel safe and loved in, especially children, no matter where they're from." According to the Twitter account, Wayfair employees have asked their CEO to donate the profits made from this specific sale to charities and organizations aimed at helping those in need at the border, including the Refugee and Immigrant Center for Education and Legal Services (RAICES). The Boston Globe reports that the letter was sent to executives last Friday and a response was returned on Monday evening at 6 p.m. Wayfair's response to the controversy, according to a tweet , is that "it is standard practice to fulfill orders for all customers, and we believe it is our business to sell to any customer who is acting within the laws of the countries within which we operate." Story continues In response to a recent letter signed by 547 employees, our CEO said that the company would not cease doing business with contractors furnishing border camps. We ask that the company donate the $86,000 in profit they made from this sale to RAICES. #wayfairwalkout - wayfairwalkout (@wayfairwalkout) June 25, 2019 @Wayfairwalkout is urging employees of the Wayfair headquarters in Boston, Massachusetts to walk out on June 26th at 1:30 p.m. to Copely Square "to show [their] numbers and make this demand.". Wayfair workers couldn’t stomach they were making beds to cage children. They asked the company to stop. CEO said no. Tomorrow, they‘re walking out. This is what solidarity looks like - a reminder that everyday people have real power, as long as we’re brave enough to use it. https://t.co/667abeLDTG - Alexandria Ocasio-Cortez (@AOC) June 25, 2019 House Beautiful has reached out to Wayfair for comment and will update accordingly with their response. Follow House Beautiful on Instagram . ('You Might Also Like',) 7 Secrets HomeGoods Employees Won't Tell You 19 Closet Organization Ideas You'll Want to Steal Immediately 15 Styling Tricks That Make A Small Living Room Seem Bigger Than It Is |
How Does nib holdings limited (ASX:NHF) Fare As A Dividend Stock?
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Today we'll take a closer look at nib holdings limited (ASX:NHF) 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 the income from dividends, it's important to be a lot more stringent with your investments than the average punter.
While nib holdings's 2.7% dividend yield is not the highest, we think its lengthy payment history is quite interesting. Remember though, due to the recent spike in its share price, nib holdings's yield will look lower, even though the market may now be factoring in an improvement in its long-term prospects. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, nib holdings paid out 70% of its profit as dividends. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time.
Remember, you can always get a snapshot of nib holdings's latest financial position,by checking our visualisation of its financial health.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. nib holdings has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. Its dividend payments have fallen by 20% or more on at least one occasion over the past ten years. During the past ten-year period, the first annual payment was AU$0.028 in 2009, compared to AU$0.21 last year. Dividends per share have grown at approximately 22% per year over this time. The growth in dividends has not been linear, but the CAGR is a decent approximation of the rate of change over this time frame.
It's not great to see that the payment has been cut in the past. We're generally more wary of companies that have cut their dividend before, as they tend to perform worse in an economic downturn.
Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. It's good to see nib holdings has been growing its earnings per share at 14% a year over the past 5 years. Earnings per share have been growing rapidly, but given that it is paying out more than half of its earnings as dividends, we wonder how nib holdings will keep funding its growth projects in the future.
To summarise, shareholders should always check that nib holdings'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 nib holdings has an acceptable payout ratio. 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. nib holdings might not be a bad business, but it doesn't show all of the characteristics we look for in a dividend stock.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 7 analysts we track are forecasting for nib holdingsfor 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. |
Smart Beta ETF Opportunities for Today’s Market
As the bull market extends, exchange traded fund investors can still find opportunities, but they will have to closely monitor the markets for developing trends and act accordingly.
“We think that there could be the potential for a pause in the second half of the year. So our portfolio, we are getting a little bit more defensive, yet we are not calling for recession. We think there are plenty of opportunities across the marketplace,” Lance Humphrey, AVP, Portfolio Manager,USAA Asset Management Company, said at the Morningstar Investment Conference.
As a way to help investors better access developing opportunities in the market, USAA Asset Management Company focuses on value and momentum factor-based ETF investments. Through their hands-on experience with investing in ETFs, USAA offers its own ETF suite, including USAA MSCI USA Value Momentum Blend Index ETF (ULVM), USAA MSCI USA Small Cap Value Momentum Blend Index ETF (USVM), USAA MSCI International Value Momentum Blend Index ETF (UIVM) and USAA MSCI Emerging Markets Value Momentum Blend Index ETF (UEVM).
The suite of smart beta ETFs is built as core portfolio-building components and allows investors more choices at a competitive cost.
The factor-based lineup screens for the value and momentum factors, identifying stocks with attractive valuations and positive price momentum and weighting the two factors in such a way to help investors diversify against the risk of individual holdings. Academic research suggests that focusing on stock companies with factors like attractive valuations and improving momentum have led to higher excess returns.
For more ETF-related commentary from Tom Lydon and other industry experts, visit ourvideo category on ETF Trends.
Click here to read the original article on ETFdb.com. |
Stay Put. 7-Eleven and Postmates Will Deliver Slurpees and Chips to Your Place in the Sun
Craving a Slurpee but lacking the motivation to get off a park bench?
No worries.
7-Eleven launched a delivery service Monday that will send a Slurpee or almost anything else carried by the chain to public places ranging from parks to beaches.
The company told The Associated Press that more than 2,000 7-Eleven “hot spots” including New York’s Central Park and Venice Beach in Los Angeles will be activated Monday. Customers need to download7-Eleven’s 7NOW appand select “Show 7NOW Pins” to find a hot spot close by.
7-Eleven believes it will eventually be able to deliver to 200,000 hot spot locations, said Gurmeet Singh, the company’s chief digital information and marketing officer.
Dominos launched a similar service last year, delivering pizzas and more to over 200,000 public locations.
7-Eleven had begun delivering to homes last year when it started getting delivery requests to places away from home where getting a bottle of water may be more tricky, Singh said.
“We’ve been on this journey to redefine convenience,” said Singh. “This makes it easy for people to stay in the moment.”
The jury is still out on how successful public delivery will be.
Jon Reily, vice president and global commerce strategy lead at Publicis Sapient, says he thinks Domino’s pizza delivery hasn’t created much of a buzz.
“It’s a neat idea on paper, sort of Ubering pizza to your location, but I suspect that the logistics of the process is pretty complicated in the real world,” Reily said.
The use of drones, however, might be a game changer, Reily said.
There’s no minimum order required for a delivery from 7-Eleven. The chain charges a flat delivery fee of $3.99. And for orders under $15, customers pay an extra $1.99. For all orders, it promises average wait time of 30 minutes.
7-Eleven is partnering withPostmatesfor delivery to public areas.
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Alexandria Ocasio-Cortez supports #WayfairWalkout
Alexandria Ocasio-Cortez is backing Wayfair employees walking out of work over their CEO’s business dealings with migrant detention camps. “Wayfair workers couldn’t stomach they were making beds to cage children,” Ocasio-Cortez tweeted Tuesday. “They asked the company to stop. CEO said no. Tomorrow, they‘re walking out. This is what solidarity looks like — a reminder that everyday people have real power, as long as we’re brave enough to use it.” Congresswoman Alexandria Ocasio-Cortez lent support to people boycotting Wayfair for doing business with migrant detention camps. (Photo: Getty Images) Last week, Ocasio-Cortez appeared on Instagram Live saying , “The United States is running concentration camps on our Southern border...” and equating the president’s immigration practices to the Holocaust. More than 500 employees at the home decor company signed a petition asking their CEO to stop doing business with detention camps — and that any proceeds from such sales be donated to RAICES (Refugee and Immigrant Center for Education and Legal Services). Wayfair workers couldn’t stomach they were making beds to cage children. They asked the company to stop. CEO said no. Tomorrow, they‘re walking out. This is what solidarity looks like - a reminder that everyday people have real power, as long as we’re brave enough to use it. https://t.co/667abeLDTG — Alexandria Ocasio-Cortez (@AOC) June 25, 2019 Twitter user Sun_Diaz tweeted a two-page letter to Wayfair management about “the atrocities being committed at our Southern border” and concern over a deal with non-profit BCFS , which reportedly manages detention camps. Employees claim Wayfair sold $200,000 worth of bedroom furniture to the non-profit, allegedly used in a Carrizo Springs, Texas, camp for 3,000 occupants. “We believe that by selling these (or any) products to BCFS or similar contractors we are...complicit in furthering the inhumane actions of our government,” wrote workers. Employees asked that Wayfair stop doing business with any organization involved in detaining immigrants and establish a code of ethics for B2B sales. “At Wayfair we believe that ‘everyone should live in a home that they love.’ Let’s stay true to that message by taking a stand against the reprehensible practice of separating families, which denies them any home at all.” According to the authors, in September, Wayfair’s furniture filled up a BCFS camp in Tornillo, Texas, for more than 2,500 children. For the record, here’s the letter the employees sent, which includes the details of the B2B order that wayfair fulfilled. pic.twitter.com/mfKs1krawu — Dais (@sun_daiz) June 25, 2019 But Wayfair management rejected the letter, writing in a response, “...No matter how strongly any one of us feels about an issue, it is important to keep in mind that not all employees or customers agree. Your fellow employees hold a wide range of opinions and perspectives and Wayfair, as a mass-market brand, is oriented to serve a broad and diverse customer base.” Story continues Wayfair stated that it maintains the right to conduct business with “any customer who is acting within the laws of the countries within which we operate.” And that sales do not indicate support for an organization’s values. Wayfair allegedly rejected an employee request to stop furnishing immigrant detention camps at the U.S. border and workers are planning to walk out in protest. (Photo: Twitter/@FizFashizzle) tl;dr - Wayfair sold beds to furnish border camps; 547 employees signed a petition to ask that we cease all business with border camps; CEO said no —>employees are walking out tmrw at 1:30pm. We ask that Wayfair donate all profits made from the sale to RAICES #WayfairWalkout — wayfairwalkout (@wayfairwalkout) June 25, 2019 Employees of the Boston-based company plan will walk out of work on Wednesday, while many customers, celebrities, and public figures are turning their backs on Wayfair. Here’s the deal with the @Wayfair walk out. They absolutely do NOT have to be the company that supplies the prison camps. These are privately owned camps that are for profit. Your elected officials cannot even get in there to see them! This CEO? 👎. Pls follow @wayfairwalkout pic.twitter.com/mYN9IQKTxU — Kathy Griffin (@kathygriffin) June 25, 2019 @ljaconte and I were just about to spend $$$ remodeling our bathroom with @Wayfair - like there's a bathtub, vanity, mirror and lighting sitting in a cart about to - not any more. #BoycottWayfair #ConcentrationCampsForKids #NotMyPresident #NotMyAmerica https://t.co/BMrU0YQgBn — Pj Jacokes (@jcoax) June 25, 2019 We must actively #resist any & all efforts by this cruel, incompetent administration to cage children and separate families. I proudly stand in solidarity w/ the hardworking individuals at #Wayfair who are walking out in the name of #justice & humanity. https://t.co/UFvCZNGeTJ — Rep Ayanna Pressley (@RepPressley) June 25, 2019 Since Wayfair has decided to side with a cruel, fascist regime that keeps kids in cages, they might as well go all out and stockpile Tiki torches for the next Nazi march. Shame on you, @Wayfair . But BRAVO to your courageous employees. #wayfairwalkout https://t.co/nSj1M6qAFJ — BrooklynDad_Defiant! (@mmpadellan) June 25, 2019 Fixed the Wayfair logo pic.twitter.com/oSpHKlGgMZ — ElElegante101 (@skolanach) June 25, 2019 This Wayfair story reveals some of the treacherous waters brands have to navigate with respect to the hateful policies of the Trump administration. + — Shannon Coulter (@shannoncoulter) June 25, 2019 Ugh, just read this after making a purchase from Wayfair - for my 5 year old's room, no less. @wayfair this is important, I'm cancelling the order and won't buy from you anymore unless this is addressed. — Jenny (@JennyHR1976) June 25, 2019 Do we have any followers in Boston? If so can y'all support the #wayfairwalkout tomorrow? Check out @wayfairwalkout for details. They are standing up to their boss who wants to pocked profits from selling beds to border camps. https://t.co/hFYE5WEKrE — RAICES (@RAICESTEXAS) June 25, 2019 The problem is that they are profiting off of the suffering of children. @Wayfair employees asked the CEO to donate the profits to RAICES and they refused. That’s why there is outrage. — Elizabeth Bennet 🌍 (@thujachinook) June 25, 2019 Executives from Wayfair and BCFS did not return Yahoo Lifestyle’s request for comment. Employees involved in the walk-out could not be reached by Yahoo Lifestyle. Read more from Yahoo Lifestyle: Alexandria Ocasio-Cortez says Trump is running immigrant concentration camps and Twitter is outraged Children Are Being Held Without Soap, Toothpaste & Diapers In Overcrowded Detention Centers High school graduate reunites with deported dad at U.S.-Mexico border in emotional video Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day. View comments |
Health Care Price Transparency: Fool’s Gold, or Real Money in Your Pocket?
This article was written by J.B. Silvers, Professor of Health Finance, Weatherhead School of Management & School of Medicine, Case Western Reserve University, and originally appeared onThe Conversation, a not-for-profit news site dedicated to unlocking ideas and knowledge from academic experts.
The news is full of stories about monumental surprise hospital bills, sky-high drug prices and patients going bankrupt. The government's approach to addressing this, via an executive order that President Trump signed June 24, 2019, is to make hospitals disclose prices, including negotiated rates with insurers, so that patients supposedly can comparison shop. But this is fool's gold – information that doesn't address the real question about why these prices are so high in the first place.
I know from my time as an academic researcher, hospital board member, advisor to Congress and health insurance CEO that the problems in healthcare are far deeper than just knowledge about hospital charges that few will ever pay.
While it is easy to blame greedy pharmaceutical manufacturers, health insurers and hospital executives, the problem comes from the very nature of our confused system. Who actually benefits from these high prices and why do they persist? Is it just greed, or something endemic in the system?
Many in the healthcare system, including hospitals, doctors and insurers, are complicit in this confusing mess, although all can justify their individual actions.
The confusion begins for the patient when he or she receives an explanation of benefit (EOB). This typically says it is "Not a Bill," although it really looks like one. What it actually shows is incredibly high provider prices and an equally implausible discount. The bottom line lists the actual payment and the amount the patient owes. Patients are supposed to be grateful for the discounts after they recover from the sticker shock of the listed price.
When a service is provided out-of-network, or is not covered at all, or the person doesn't have insurance, the patient is supposed to pay this full amount. Such "surprise bills"typically come to those least prepared to pay and, as a result, providers typically recover very little. So no one wins, except the collection agency and the lawyers.
I believe the standard EOB is the beginning of unnecessary complexity that leads to higher prices and an impossibly flawed market where shopping can never really work properly.
This ridiculous situation actually starts with insurance companies selling policies to ill-informed employers who don't understand healthcare but effectively are the purchasers. Employers hire brokers and consultants to collect proposals from insurers; by some estimates, as many as 50 million people in the U.S. are covered by such plans.
These proposals frequently focus on the size of the discount from providers' list prices as an indicator of how much the employer can save. The overall total cost or coverage is more important, but harder to estimate, since it depends on actual care delivered to employees. The unrecognized incentive for providers and insurers is to increase prices in order to increase the size of the discount.
I have actually seen cases where the insurer requests higher list prices from a provider to pump up the discount they can report to employers. This is crazy.
One solution to this mess would be to require uniform prices by all providers to all purchasers. Maryland has a form of this "all-payer" system where everyone pays the same under rate regulation or negotiation. France, Germany, Japan and the Netherlands also use this form of control.
Benchmark pricing against what Medicare pays would do something similar, with everyone paying a fixed percent of these nationally regulated rates. This would blunt the ability of hospitals to arbitrarily jack up list charges and negotiate contract prices with insurers based on relative market power.
Unfortunately for consumers, such rate setting may be a political "bridge too far." While some progressives might like regulation, conservatives likely will not because it challenges their faith in the superiority of free-market negotiations around prices.
And it might dampen innovation and even competition, depending on how realistic and flexible the regulators are in responding to new technology, alternative procedures, quality differentials and consumer demands – the decisions where markets are supposed work well.
The overarching question is whether patients and employers can ever do comparison shopping effectively. Clearly for many things, there can be no head-to-head choice. Trauma, highly complex surgery and other care cannot be predicted ahead of time or standardized to fit a consumer market model.
However, some things can be compared. Insurers now routinely let consumers know if a test or image could be done for less elsewhere. Perhaps comparing just a few services as an overall cost indicator is the best we can do.
But it may also be possible to determine overall relative bargains for a typical package of care to guide choices. My Cleveland hospital, MetroHealth System, manages Medicaid patients for a total cost which is 29% less than when they wander around without a medical home. This is a meaningful difference.
A first step toward comparison shopping might be eliminating the EOB as we know it. Rather than showing meaningless list prices, it would be more revealing if hospitals and insurers had to disclose their actual payment terms.
An alternative benchmark might be to provide healthcare consumers with a range of contract rates or the Medicare rate for a service. Then the difference between what you and others actually pay could be useful in comparing providers and insurers.
Those who long for a total overhaul of our system through "Medicare for All" or its variants, such as many Democrats vying for the nomination, will still have to deal with the question of how to contract and pay for all these moving parts. The temptation will be toward simple solutions involving prices, discounts and rate regulation – still, I believe, effectively a pursuit of fool's gold.
The Motley Fool has adisclosure policy. |
Powell says economy facing growing uncertainties
WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell said Tuesday the outlook for the U.S. economy has become cloudier since early May, with rising uncertainties over trade and global growth causing the central bank to reassess its next move on interest rates. Speaking to the Council on Foreign Relations in New York, Powell said the Fed is now grappling with the question of whether those uncertainties will continue to weigh on the outlook and require action. Powell did not commit to a rate cut but said the central bank will closely monitor incoming data and be prepared to "act as appropriate to sustain the expansion." "The crosscurrents have reemerged, with apparent progress on trade turning to greater uncertainty and with incoming data raising renewed concerns about the strength of the global economy," Powell said. Many economists believe the Fed could decide at its next meeting on July 30-31 to cut its key policy rate, something it has not done since 2008. But markets showed disappointment with Powell's comments, which suggested a rate cut was not certain. That followed separate comments Tuesday by James Bullard, head of the Fed's St. Louis regional bank, who said that he believed a quarter-point cut in July would be sufficient as an insurance move against a possible severe economic slowdown. The S&P 500 dropped 1% to 2,917, its biggest loss of the month, while the Dow Jones Industrial Average fell 179 points or 0.7%, to 26,548. In addition to disappointment with the Fed comments, reports showing a drop in consumer confidence and weakness in the housing market added to investor gloom. In an interview with Bloomberg television, Bullard said an "insurance cut" of a quarter-point would be enough to protect against a sharper-than-expected slowdown in economic growth and a half-percentage point cut would be "overdone." Bullard last week cast the lone dissent from the Fed's decision to hold rates steady, favoring instead an immediate rate cut. Story continues Trump on Monday tweeted that the Fed "blew it" by not cuttings rates at its meeting last week. At that session the Fed kept its policy rate unchanged in a range of 2.25% to 2.5% but dropped a previous pledge to be "patient" in changing rates in coming months. Trump reportedly has considered either firing Powell or demoting him from the chairman's job but has been told by the White House legal team that he does not have the power to do either. Asked about the repeated criticism by Trump, Powell said, "We are human. We make mistakes. I hope not frequently but we will make mistakes. But we won't make mistakes of integrity or character." Powell said that the Fed's independence from direct political control had served the country well and when central banks do not have that protection "you see bad things happening." The baseline outlook for the U.S. economy remains favorable for continued growth, Powell said, but "the risks to this favorable baseline outlook appear to have grown." In early May, Trump more than doubled the tariffs on Chinese goods after U.S.-China trade talks broke down. The president has threatened to essentially hit all Chinse imports with tariffs if China does not meet the administration's demands for greater protections for U.S. technology. Trump's moves sent financial markets tumbling because of concerns the trade conflict could end the current 10-year economic expansion, which in July will become the longest in U.S. history. Trump is scheduled to meet Chinse President Xi Jinping later this week at the Group of 20 economic summit in Japan, a meeting that is being closely watched for signals that the two sides are prepared to resume talks in search of a trade deal. In addition to rising trade tensions, Powell said since May incoming data has raised new concerns about the strength of the global economy, noting tentative signs that investment by U.S. businesses has slowed from earlier this year. Many Fed officials believe the case for easier monetary policy has strengthened, but "we are also mindful that monetary policy should not overreact to any individual data point or short-term swing in sentiment," he said. Powell said that would risk adding even more uncertainty to the outlook. Earlier this year, economists believed the Fed would keep its key policy rate unchanged all year long after four rate hikes last year. Now private economists believe from two to four rate cuts are possible this year, although some analysts think the Fed could keep policy unchanged if trade tensions are resolved without harming the economy. |
Amazon Has Big Plans to Make Prime Day 2019 More Lucrative Than Ever Before
Last year’sAmazonPrime Day broke records with100 millionitems sold. This year, the company is raising the stakes by makingPrime Day 2019a two-day affair.
A lot has changed since the first Amazon Prime Dayback in 2015. In an email press release sent, Amazon revealed that Prime Day 2019 will take place on July 15 and July 16. The company described the event as a “two-day parade of epic deals,” with sales on televisions, smart home items, Alexa devices, and other items we didn’t know we needed until we saw them on sale.
Amazon was originally founded onJuly 16, 1995. In 2015, to commemorate the 20th anniversary of its founding, Amazon unveiled Prime Day: a day full of deals for their Amazon Prime service subscribers. The retailer has kept the tradition going since 2015, putting more items on sale and increasing the length of their promotion. Last year’s Prime Day, for example, lasted36 hours.
Amazon is looking to make this Prime Day bigger than ever. Along with giving shoppers two days of discounted shopping, Amazon says it will offer one million deals and offer discounts in 18 countries, including nations that didn’t have Prime Day last year, like the United Arab Emirates.
But one number remains to be seen: How much money could Amazon make during Prime Day 2019? All signs point to a lot—potentially, even more than the$4.18 billionAmazon made last Prime Day.
The company appears to be taking the marketing of Prime Day very seriously. According to Amazon, the company’s birthday celebration will offer “star-studded surprises,” with actors, athletes and music artists enlisted to help get the word out.
Additionally, Amazon may introduce new products to help further drum up hype. According to Amazon’s worldwide consumer CEO Jeff Wilke, the company will “pull back the curtain to reveal exclusive products.” Special Prime Day 2019 items include special edition electric bikes, limited edition tote bags, custom-designed Levi’s jeans, and more.
“Exclusive products” likely only refer to limited edition goods, though it could also hint at an Amazonproduct revealor two.
Amazon’s Prime Day 2019 promotion starts July 15. Savvy shoppers can get a head start by seeing what the retailer has to offerhere.
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San Francisco to become first major U.S. city to ban e-cigarette sales
By Chris Kirkham and Uday Sampath Kumar
June 25 (Reuters) - San Francisco will become the first major city in the United States to ban the sale of e-cigarettes as officials look to control the rapid uptick in teenage use of nicotine devices made by companies such as Juul Labs Inc.
The San Francisco Board of Supervisors approved the ordinance on Tuesday, banning the sale and distribution of e-cigarettes until they have approval from the U.S. Food and Drug Administration.
States and cities across the United States have already moved to ban flavored e-cigarettes and raise the legal age for purchasing tobacco products to 21, but San Francisco's new approach is the most far-reaching yet.
No other major cities have proposed a similar hardline ban, though San Francisco's move could lead others to consider it.
The city council in Beverly Hills, California, this month approved a ban on the sale of tobacco products beginning 2021, though it carved out exceptions for some cigar lounges and hotels. Juul, which is based in San Francisco and has grown to be the dominant e-cigarette maker in the United States, has been at the center of the debate. As its sales soared over the last two years, so did its popularity among teenagers.
Federal data last year showed a 78% increase in e-cigarette use among U.S. high schoolers, and state and local lawmakers have been grappling with how to regulate Juul and other similar products.
San Francisco City Attorney Dennis Herrera, who spearheaded the ordinance earlier this year, praised the move and said it was necessary because of what he called an "abdication of responsibility" by the FDA in regulating e-cigarettes.
E-cigarette makers originally faced a 2018 deadline to submit applications to the FDA to sell products, but the deadline was pushed back several years.
"This lack of clarity is causing tremendous confusion at the same time that a whole new generation of young people are getting addicted to nicotine," Herrera told Reuters. "The explosion in youth use and the health risks to young people are undeniable."
In a statement before Tuesday's vote, Juul said a ban "will not effectively address underage use and will leave cigarettes on shelves as the only choice for adult smokers, even though they kill 40,000 Californians every year."
FDA spokesman Michael Felberbaum declined to comment on the San Francisco ban, but said the agency is "committed to continuing to tackle the troubling epidemic of e-cigarette use among kids," including limiting access to flavored e-cigarettes and cracking down on companies and retailers who sell to minors.
E-cigarettes are generally thought to be safer than traditional cigarettes, which kill up to half of all lifetime users, according to the World Health Organization, but the long-term health effects of the nicotine devices remain largely unknown.
San Francisco city officials last year approved a ban on flavored tobacco and e-cigarette liquids, a move upheld by voters.
Juul last month filed paperwork in San Francisco for another ballot measure that experts say would make the flavor ban and Tuesday's e-cigarette ban unenforceable.
If approved, the measure would put in place regulations favored by Juul, which the company says would "ensure that underage access and use is addressed comprehensively but adults aren't driven back to cigarettes."
The e-cigarette ban will go into effect early next year, according to the city attorney's office, and will apply to both online and brick-and-mortar sales in San Francisco.
City officials also passed a separate ordinance prohibiting the manufacture and distribution of all tobacco products on city property.
When the legislation was first proposed in March, Herrera said the city needed to prohibit e-cigarette sales until the FDA formally authorized the products.
E-cigarettes have existed in a regulatory gray area for years. The FDA in 2016 gave e-cigarette makers two years to submit applications, a deadline the agency pushed back to 2022. Amid the surge in teenage use, the FDA in March moved up that deadline to 2021.
A separate court case from anti-tobacco groups may force the FDA to set an earlier deadline.
Juul, in which Marlboro maker Altria Group has a 35% stake, has already pulled popular flavors such as mango and cucumber from retail store shelves and shut down its social media channels on Instagram and Facebook.
The company also pledged to introduce technology that would better track underage use and hold retailers accountable for selling to minors. (Reporting by Uday Sampath in Bengaluru and Chris Kirkham in Los Angeles; Editing by Arun Koyyur) |
Square Is Expanding Access to Bitcoin Deposits for Cash App Users
UPDATE (June 26, 2019 17:50 UTC):Cash Appformally announcedthat customers can deposit bitcoin directly to their accounts on Wednesday.
Payments company Square is rolling out bitcoin deposits for its mobile Cash App.
The app, available on both Android and iOS, now supports deposits for at least some users, according toTwitter posts by bitcoinersand a check by a CoinDesk reporter of his own Square account Tuesday. Previously, users could purchase or sell bitcoin, as well as transfer the cryptocurrency to another wallet.
Related:Above $13K: Bitcoin’s Price Extends 2019 Gains to New 17-Month High
Square first began allowing select Cash App users to purchase and sell bitcoinin November 2017, announcing afew months laterthat it would roll that feature out to all users.
It is unclear how long Square has been adding the deposit feature; as of press time, not every Cash App user had the ability to deposit bitcoin.
Podcaster Marty Benttweeted a screenshotindicating he could accept deposits on June 18, suggesting that the company may be releasing this feature to a select audience in advance of a full lunch.
According toa support pageon Square’s website, “support for bitcoin deposits to third-party wallets is coming soon.”
Related:Bitcoin’s Price Is Up 43% in 7 Days as Bull Frenzy Grips Market
“In the meantime, you can transfer profits from selling bitcoin to any bank account or debit card linked to your Cash App,” the page says.
The company itself has been investing heavily into bitcoin and its ecosystem, bringing in$65.5 million in revenuethrough the world’s largest cryptocurrency by market cap in the first quarter of 2019 alone (though the actual profit was a more modest $832,000).
Square Crypto, the company’s new bitcoin-focused arm, is also hiring developers to specifically develop tools for thebitcoin blockchain. FormerGoogle director Steve Leewas recently named as the first new hire for this team, though his role has not yet been specified.
Square CEOJack Dorsey– who also founded the social media giant Twitter – has long been a proponent of the cryptocurrency, having said in the past that he expects it to becomethe world’s currency.
Square did not immediately respond to a request for comment.
Image via CoinDesk archives
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Have Insiders Been Selling Nufarm Limited (ASX:NUF) Shares?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 we'll take a look at whether insiders have been buying or selling shares inNufarm Limited(ASX:NUF).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Nufarm
The , Hua Zhang, made the biggest insider sale in the last 12 months. That single transaction was for AU$23m worth of shares at a price of AU$6.78 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of AU$3.94. So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 304k shares for AU$1.7m. But they sold 5.1m for AU$33m. Over the last year we saw more insider selling of Nufarm shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Nufarm insiders own 6.4% of the company, worth about AU$99m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. Recent sales exacerbate our caution arising from analysis of Nufarm insider transactions. The modest level of insider ownership is, at least, some comfort. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
But note:Nufarm may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Spotify's Podcast Strategy Takes Shape
Spotify(NYSE: SPOT)has long been a service focused on music. But music alone has not always been enough for Spotify, whichhas taken an eternity to turn a profit. Fortunately, there may be another way to cash in: podcasts.
Podcasts aren't all that different from music: Spotify pays for them, users listen to them, and they pay it subscription fees. The trick is that podcasts give the company more information. And it is increasingly pitching itself (to advertisers, at least) as a data collector.
Image source: Getty Images
As the saying goes, "If you're not paying, you're the product." Spotify isn't free, but it's also not expensive enough to make much money. And its plan to better monetize its platform isn't about pleasing subscribers so much as it is about using them.
It tracks what they listen to, and it can draw conclusions about them based on that data. If country music fans are more likely to buy pickup trucks and indie fans are more likely to buy vinyl records, those are insights that Spotify can pitch to its advertisers as a service or as an incentive to buy ads.
This isn't usually how it presents itself in the media. In 2018, Spotify's managing director of sales said of sharing data with advertisers, "We just don't do that." Of course, not letting advertisers touch the data themselves is not the same thing as refusing to use it for targeted advertising as a service, and there was never any real barrier keeping Spotify from changing its mind.
Now, it is letting its advertisers target listeners based on their podcast preferences. That's hugely important, in part because podcast listening habits have so much more potential than music in helping Spotify understand its subscribers.
The specificity of podcast topics could theoretically allow it to learn everything from users' political beliefs to their favorite hobbies. Knowing that a given user likes country music is one thing; it's quite another (and more powerful) to know that a given user likes to cook, loves mysteries, votes center-left, and is a parent.
This isn't the first time we've seen a major Spotify announcement related to podcasts. It's worth remembering that it also has its own podcast studios,which it acquired early this year. The power to make its own podcasts could save money by taking ears off of other podcasts and music (it usually pays creators a per-play bonus). Even before it acquired its own studios, the company was pouring money into podcast licensing deals and, in some cases, development.
Being able to create its own podcasts and follow an original-content strategy likeNetflixis certainly good for Spotify. And having its own podcast studios only gives the company even more power to learn about its users. If it wanted to, it could theoretically create podcasts specifically to identify subgroups within its listeners. That may be unlikely, but it's not beyond the realm of imagination, especially for a company that is pitching its big-data capabilities to advertisers.
We don't know every detail of this podcast strategy (and some details of deals with advertisers will certainly remain secret). But it's clear that Spotify is aiming to compete withFacebookin more ways than one. Its podcast goals are in line with its larger goals of learning more about its customers and then, in the grand tradition of big tech, selling what it learns.
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Is the U.S. already in a recession? This economist thinks it's possible.
Economists are increasingly forecasting a recession next year, but one believes the downturn has already begun.
Gary Shilling, an economist and financial analyst who is credited with predicting several recessions over the past 40 years, thinks the U.S. is in a relatively mild slump.
“I think we’re probably already in a recession but I think it will probably be a run-of-the-mill affair, which means real GDP would decline 1.5% to 2%, not the 3.5% to 4% you had in the very serious recessions,” Shilling, president of economic and financial research firm A. Shilling & Co., said ina recent interview broadcast this week by Real Vision.
In such a tempered slide, he says, “Stocks probably wouldn’t fall” but if they did, they likely would tumble about 22% -- similar to other recent recessions. That, he says, would take the Standard and Poor’s 500 index about 200 points below it’s Christmas Eve nadir of 2,351.
His view is at odds with the vast majority of economists who expect the economy to grow a solid 2% to 2.5% this year after expanding at about a 3% clip last year and in the first quarter.
Shilling points to:
• Declining industrial production, a result of a weak global economy and the Trump administration’s trade war with China.
•Feeble job growth of 75,000 in May, along with downward revisions to prior months.
• The Federal Reserve Bank of New York’s recession probability chart, which shows about a 30% chance of a downturn the next 12 months, up from about 10% early this year. That data is based on an inversion of the yield curve, which has shown rates on 3-month Treasury bonds topping 10-year notes recently – a sign that investors don’t have much faith in the longer-term outlook. Inversions do herald recessions but often two years in advance.
• The Organization for Economic Co-operation and Development’s leading economic indicators, which has edged down since last year.
• Shilling also cites weak housing data, though he notes falling mortgage rates have bolstered home sales in recent months.
Jim O’Sullivan, chief U.S. economist of High Frequency Economics, agrees that falling industrial output is worrisome. But while job growth has slowed substantially from last year, he chalks up May’s 75,000 payroll advance to normal volatility. He says it’s typically an outright drop in employment that foreshadows recession, not a slowing.
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More significantly, O’Sullivan notes that initial jobless claims – a gauge of layoffs and perhaps the most reliable real-time recession indicator -- have remained near 40-year lows.
The National Bureau of Economic Research typically calls recessions based on industrial production, employment, retail sales and personal income. Noting that only factory output is flashing red, O’Sullivan says, “A realistic assessment of the evidence is that we are not currently in recession.”
Still, he adds, “There’s clearly a case for some slowing” in the economy. And it won’t be known definitively if the U.S. is in recession for many months.
“They generally don’t call recessions until well after they start,” he says.
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This article originally appeared on USA TODAY:Is the U.S. already in a recession? This economist thinks it's possible. |
Khloé Kardashian's Sisters Share Sweet Video Messages in Celebration of Her 35th Birthday
Khloé Kardashian is feeling the love from her sisters after another year around the sun. Days ahead of her 35th birthday on Thursday, Kim Kardashian West , Kourtney Kardashian and Kylie Jenner shared birthday wishes for Khloé in a video on the Keeping up With the Kardashians YouTube channel. “Happy birthday to my favorite sister Khloé,” Kim, 38, began the video, sporting a new hairdo in tribute to the Good American founder. “In honor of your birthday, I cut my hair just like your favorite hairstyle. God, I have so many memories with you. There really isn’t a particular favorite just because every moment I am with you is a favorite,” she continued. “I honestly wish this next year for you to be drama-free, to be happy, healthy, full of love, and no more bullsh—,” Kim added about Khloé, whose ex Tristan Thompson ‘s cheating scandal is currently unfolding on Keeping Up with the Kardashians . “Just fun and carefree. Seriously, stress-free. That’s all I want for you, I love you.” Khloe Kardashian and Kim Kardashian West | Charley Gallay/Getty Kylie, 21, followed Kim with her own birthday shout-out, which she filmed while wearing a bathing suit on what appears to be a tropical beach. “Happy birthday Khloé. You are such a bright light in this world,” Kylie said. “There will never be another you, you truly are so special. I look up to you so much, I looked up to you all my life, and I still do.” Kylie continued her heartfelt message to Khloé, adding, “I love you so much. You brighten every room you go in, you make every party. You brighten all of our lives. I love you, happy birthday.” Kourtney, who celebrated her 40th birthday in April and is the eldest of the Kardashian-Jenner sisters, concluded the video with her special wishes for the birthday girl. Khloe Kardashian and Kourtney Kardashian RELATED : Rob Kardashian Shares Goofy Throwback Picture with Khloé Ahead of Her Birthday: ‘Mood All Week’ “Happy birthday Khloé, I am so thankful that I’ve had you as my soulmate for — I don’t remember you until you were 16, but starting at 16, you became the Thelma to my Louise, the Suzanne to my Jane, the Ethel to my Lucy.” Story continues “You can be Lucy,” Kourtney added. “The peanut butter to my jelly, I could go on and on and on. My little sprinkle on my cupcake. I love you so much, happy happy birthday.” Following Kourtney, one final birthday wish came form an unexpected guest — Pierre the Mime, who performed a musical tune in celebration of Khloé’s birthday. Kendall Jenner was noticeably absent from the video birthday tribute. Earlier on Tuesday, Rob Kardashian also wished an early happy birthday to his sister with an adorably goofy throwback picture of the pair. Bobby!!!!! It’s our birthday https://t.co/Jw0vxkJwqR — Khloé (@khloekardashian) June 24, 2019 “Almost @khloekardashian bday!! This MOOD ALL WEEK,” Rob, 32, tweeted, with a photo that features a young Rob and Khloé on board what appears to be a boat. “Bobby!!!!!!” Khloé responded. “It’s our birthday.” While Khloé has been busy taking care of her 14-month-old daughter True , the KUWTK star enjoyed a mom’s night out over the weekend to attend the opening of the night club novelle at the Mohegan Sun Casino in Connecticut with friends Khadijah and Malika Haqq . Khloe Kardsahian | Dave Kotinsky/Getty RELATED : Khloé Kardashian Was ‘Throwing Up Blood,’ Worried She Was Pregnant Before Jordyn Woods Scandal As for how she’ll celebrate her special day, Khloé is planning to have a low-key celebration with loved ones. “I’ve never been someone who likes to celebrate my birthday,” she recently told E! News . “It’s fine, it’s just not a huge thing for me, but I’m just going to have a little get-together at the house. It’ll be great, chill vibes.” An all-day marathon of Keeping Up With the Kardashians, Kourtney & Khloe Take Miami and Kourtney & Kim Take Miami followed by special birthday pop-up episodes of KUWTK air on Thursday on E! at 8 p.m ET. |
League of Legends blocked in Iran and Syria because of the U.S. government
James Brightman,Tue, 25 Jun 2019 21:45:00
League of Legendsis fast approaching its 10-year anniversary. The decade-old MOBA game remains one of the most popular in the world and a staple of the esports industry with 100 million viewers for its world championship last year (according toStatista), but now its fans in the countries of Iran and Syria have seen their access completely blocked.
The news was first reported this week byDot Esports, which cited an in-game message from an Iranian player: “Due to U.S. laws and regulations, players in your country cannot accessLeague of Legendsat this time. Such restrictions are subject to change by the U.S. government, so if and when that happens, we look forward to having you back on the Rift.”
Tensions have been rising this week between the United States and Iran, which shot down an American drone that the Iranian army claimed had entered its airspace. Donald Trump nearly ordered military action in retaliation and then yesterday proceeded to sign a new agreementsanctiontargeting Iran and its Supreme Leader Ali Khamenei. While video games are not directly in the crosshairs, titles that can make money with microtransactions do seem to be getting caught in the crossfire.
The Epic Game Store is already forbidden to operate in both North Korea and Iran. The microtransactions that support a free-to-play game likeLeague of Legendsare likely considered a form of trade. A Riot Games spokesperson explained toSlate, “It’s our interpretation of sanctions that providing access toLeague—even if it didn’t include access to the store—could be construed as a service under U.S. sanctions.”
Sanctions expert Richard Nephew, a senior fellow of foreign policy for the Brookings Institution, also commented to Slate, “It is certainly the case that these kinds of service providers are increasingly conscious of the risks of providing such services to Iran, which I would agree would be potentially sanctionable. The regs are pretty clear in describingwhat is sanctionable. There are some exceptions for personal IT, but limited really to communications technology and the like, intended to allow civil society to engage with the rest of the world.”
TheLeague of Legendscommunities in Iran and Syria would no doubt argue that they are part of civil society simply trying to engage in some gameplay with like-minded fans across the globe.
"I'm so shocked. I woke up this morning and I can't play anymore," one player lamented on theLeagueboards on Monday. "Iran is now of the big EUW League communities. There are a lot of players here and now they can't play the game. Political problems between Iran and America are between governments. Players and people have nothing to do with this [issue]."
Some players in Iran and Syria have resorted to VPN usage to circumvent the restrictions, but the fact is that in poorer, war-torn countries VPNs may be too expensive for the average individual. It’s unfortunate that gamers are directly impacted by this conflict, and it does potentially set a precedent for the games industry at large. Is it okay for the government to effectively ban a US game company’s product in any country it has a conflict with? Will we see access toLeagueor other games blocked in more countries?
Riot Games is among the members in the Entertainment Software Association (ESA), which operates the E3 Expo and serves as the official trade body for the U.S. games industry. When reached for comment by GameDaily, the ESA declined to offer any statement.
Riot Games did not have anything to add either when we contacted the developer, simply reiterating that it’s abiding by U.S. laws and regulations. It’s unclear exactly how many players are affected by the decision to block the game. And as much asLeagueplayers would like to regain access, Nephew does not believe anything will change for quite some time.
“There is a slippery slope and that’s why sanctions tend to have fairly bright lines,” he stressed to Slate. “If you allow video games, would you allow other transactions of goods and services? If a video game online is OK, why not physical DVDs or what-have-you? … And there may be good arguments to let all of these goods go to Iran, but, under the embargo, since 1995, we’ve had pretty bright lines to avoid these conundrums, and I don’t see that changing.”
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Most Interesting ETF Filing Ever: Libra
My interest in cryptocurrency and bitcoin has been tangential. It’s this thing happening on the edge of my experience, but not something I interact with much daily.
As a tech nerd, however, I’ve been drawn to the technology underneath it, and as a finance nerd, I’ve been intrigued by the whole Sartre-esque “what is money anyway?” dialogue it’s created.
I initially dismissed the filing by Facebook et al. around Libra. I skimmed some press coverage and moved on with my day.
But this weekend I dug deeper, and ran across this passage from theLibra white paper:
“Users will not directly interface with the reserve. Rather, to support higher efficiency, there will be authorized resellers who will be the only entities authorized by the association to transact large amounts of fiat and Libra in and out of the reserve. These authorized resellers will integrate with exchanges and other institutions that buy and sell cryptocurrencies to users, and will provide these entities with liquidity for users who wish to convert from cash to Libra and back again.”
Accidental ETF
“Huh,” I thought. “That sounds a lot likecreation and redemption in an ETF!”
Reading further, it became clearer and clearer that that’s actually what Libra is: an actively managed ETF that will invest in a basket of currencies based on a set of investment objectives. In this sense, it’s exactly like theWisdomTree Emerging Currency Strategy Fund (CEW).
CEW does, quite literally, the exact same thing Libra is planning on doing, with a few exceptions:
• CEW charges a 0.55% expense ratio. Libra does not have a fee embedded in its valuation peg to its basket.
• CEW invests in short-term instruments in each currency, and holders of CEW gain that interest. Libra invests in short-term instruments in each currency, but the foundation keeps all the interest to fund operations.
• CEW is a 1940 Act-regulated ETF, that trades on regulated exchanges, which customers access through regulated broker-dealers, and whose assets are stored with regulated custodians. Nobody has any idea what Libra is, how its exchange for goods and services (or dollars) will be regulated, how customer access points will be regulated, or how custodians will be regulated.
Knowing that I’m rarely the first one to the party on ideas like this, I started reading everything I could find. There’s a lot out there, including theobligatory Financial Times vitriol, but after some digging, I stumbled acrossthis postfrom David Weisberger on Medium, in which he also got the ETF connection:
“In fact, it is so much like an ETF, I would be stunned if the SEC does not at least contemplate asserting that it has jurisdiction over the market for Libra tokens.”
Regulatory Octopus
Here, Weisberger is getting right to the heart of the matter, and it’s so blatant and obvious that I have to imagine this is intended. Facebook, PayPal and Visa are not slouches when it comes to managing regulators. I’d argue they’re consummate pros: Super Bowl contenders. They know what they’re doing.One possibility is that Facebook et al., have already figured out the regulatory angle by which they think they will be able to dance through the securities registration minefield.
For instance, you can avoid becoming a registered investment company if you stay underneath a specific threshold of owning securities; if Libra aggressively limits its exposure to bonds and other assets, and mostly holds currencies, it could avoid (at least) the ’40 Act (although it would limit the income earned for the foundation).
Big Hill To Climb, But Here’s A Path
Even then, though, questions related to the 1933 Act, potential classification as demand notes, and considerations related to CFTC regulation of the token as a swap still exist. One way or another, it won’t be easy.
And as it stands now, the baseline interpretation of what’s actually written in the filing (I mean “white paper”) is simply: “Libra is just CEW in sheep’s clothing.”
So what does that mean?
For starters, I don’t think that means it’s dead. I actually think it’s much more interesting. If Libra is, at core, just an ETF, it’s a relatively easy cleanup to file it as such, formally.
The ’40 Act bits aren’t hard; the hard part is trading. By definition, Libra is intended to be exchanged 1-to-1. The whole point is that I’ll be able to use Libra the same way I use cash. In that sense, having a wallet with 100 Libra in it is supposed to be very much like having a wallet with a $100 PayPal balance (or if you’re transacting in Chinese renminbi, Alipay).
Libra’s Exciting Element
Libra envisions making these transactions seamless and registered on the blockchain. So for example, right now, I don’t have a way to hand Amazon a share of theSPDR S&P 500 ETF Trust (SPY)in exchange for a bunch of books and sunscreen and groceries. Libra envisions a world where I can directly do just that.
This is why it’s so exciting. Not because I want to use a lot of Libra in my day-to-day life, but because it opens up a regulatory discussion about a radically improved way of moving a security from pocket A to pocket B.
Whatever regulatory solution the Libra consortium comes up with (and there’s going to be a lot of money pushing for a solution), it strikes me that it could have far-reaching implications well beyond digital currencies. Any solution that works for Libra nearly has to work for CEW, or SPY or any other ETF.
After all, ETFs are just baskets of things that we value. And the only reason we have to trade through brokers and exchanges, and settle overnight through the National Securities Clearing Corp. is because the system evolved that way from the Great Depression, one deprecated slip of paper at a time.
Other Tilts At This Windmill
Discussions abound of all the other ways folks are trying to crack this nut—to become “the new dollar” in consumers’ or corporations’ lives. Special drawing rights (SDRs) get brought up in almost every conversation.
SDRs are issued by the International Monetary Fund, and are, like Libra, an actively managed basket of securities. But that’s where the similarity ends: They’re nontransactional, and it’s the transactional piece of this that’s where all the interesting bits are.
What else do we know about Libra and its place in the crypto firmament?
Well, it’s not “its own currency” in the way bitcoin (and its countless variants and copycats) are. Bitcoinisa nonfiat currency; a kind of digital gold whose primary value (to me) seems to be its disconnection from central banking and other governmental oversight.
That’s fine for what it is, but the inherent value fluctuations and basis risk that come with standing apart from fiat backing will always be a huge barrier to entry to bitcoin gaining traction as a primary means of exchange.
No ‘Stablecoin’
Libra is also not a “stablecoin,” the portmanteau used to cover things like Tether. If nothing else, Tether showed the dangers of one firm just deciding how things work, without any regulatory oversight or transparency.
Tether promised to have its cryptocoin backed by dollars held in reserve, but, well,not so much. I gather Tether is still a going concern, but I lost track of thecountless court proceedingsthat have resulted from that flawed claim.
It’s also not a debt instrument—there’s no “promise to pay” here. There’s a “promise to exchange” from a held basket. The rights of unit holders and the mechanisms for dispute resolution and so on are all still very vague, but ultimately, it’s inconceivable to me these don’t end up being … you guessed it … just a fund. An everyday, plain old fund.
The closest example to something like this has been the success ofM-Pesa, a global payment system originally started in Kenya that has spread geographically throughout the region. Unlike Libra, however, M-Pesa is actually, really, just a mobile banking system, which has special licenses from regulators to act as a banking system. In other words, the need for a digital transaction solution forced the regulators to make room for the future, which sounds, well, promising.
Predictions? We Got ’Em
This may make Libra seems like a far-fetched, not-gonna-happen idea, but I don’t think so. I really think it’s just a matter of timing, not feasibility.
There’s nothing technically all that tricky about what Libra is proposing. Essentially all of the hurdles are either adoption related (which, having already grabbed Facebook and Visa as backers, seems pretty well in hand) or regulatory in nature.
It’s certainly possible that U.S. regulators just pooh-pooh the whole thing; in which case, Libra can simply restrict access by geography and say, “Sorry, this ain’t a U.S. thing; never mind.” That would be super unfortunate, ceding more ground to international players (which is already happening; you can use Alipay at Walgreens!).
To me, it’s far more likely this is the beginning of a much-needed and really interesting conversation about the role of money in the modern world. That’s the right discussion to be having in Washington, and Libra is a big enough initiative to put it on the agenda.
For that reason, as much as I’m wary of Facebook, in this case, I for one welcome our new crypto overlords.
Contact Dave Nadig atdnadig@etf.com
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Pfizer (PFE) Flat As Market Sinks: What You Should Know
Pfizer (PFE) closed at $43.76 in the latest trading session, marking no change from the prior day. This move was narrower than the S&P 500's daily loss of 0.95%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 1.51%.
Prior to today's trading, shares of the drugmaker had gained 4.31% over the past month. This has outpaced the Medical sector's gain of 3.89% and lagged the S&P 500's gain of 4.32% in that time.
Investors will be hoping for strength from PFE as it approaches its next earnings release. The company is expected to report EPS of $0.78, down 3.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.42 billion, down 0.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.88 per share and revenue of $52.86 billion. These totals would mark changes of -4% and -1.46%, respectively, from last year.
Any recent changes to analyst estimates for PFE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. PFE is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PFE currently has a Forward P/E ratio of 15.19. Its industry sports an average Forward P/E of 14.83, so we one might conclude that PFE is trading at a premium comparatively.
Meanwhile, PFE's PEG ratio is currently 2.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.12 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportPfizer Inc. (PFE) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Comcast (CMCSA) Dips More Than Broader Markets: What You Should Know
Comcast (CMCSA) closed at $42.75 in the latest trading session, marking a -1.95% move from the prior day. This move lagged the S&P 500's daily loss of 0.95%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 1.51%.
Coming into today, shares of the cable provider had gained 2.18% in the past month. In that same time, the Consumer Discretionary sector gained 3.33%, while the S&P 500 gained 4.32%.
Investors will be hoping for strength from CMCSA as it approaches its next earnings release, which is expected to be July 25, 2019. In that report, analysts expect CMCSA to post earnings of $0.75 per share. This would mark year-over-year growth of 15.38%. Meanwhile, our latest consensus estimate is calling for revenue of $27.55 billion, up 26.73% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.02 per share and revenue of $111.67 billion, which would represent changes of +18.43% and +18.16%, respectively, from the prior year.
Any recent changes to analyst estimates for CMCSA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. CMCSA currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, CMCSA is holding a Forward P/E ratio of 14.45. Its industry sports an average Forward P/E of 28.98, so we one might conclude that CMCSA is trading at a discount comparatively.
Investors should also note that CMCSA has a PEG ratio of 1.22 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CMCSA's industry had an average PEG ratio of 2.18 as of yesterday's close.
The Cable Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportComcast Corporation (CMCSA) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Caterpillar (CAT) Stock Moves -0.49%: What You Should Know
Caterpillar (CAT) closed the most recent trading day at $133.71, moving -0.49% from the previous trading session. This change was narrower than the S&P 500's 0.95% loss on the day. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 1.51%.
Heading into today, shares of the construction equipment company had gained 9.33% over the past month, outpacing the Industrial Products sector's gain of 5.99% and the S&P 500's gain of 4.32% in that time.
Investors will be hoping for strength from CAT as it approaches its next earnings release. On that day, CAT is projected to report earnings of $3.12 per share, which would represent year-over-year growth of 5.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.52 billion, up 3.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.25 per share and revenue of $57.09 billion, which would represent changes of +9.18% and +4.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CAT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CAT currently has a Zacks Rank of #3 (Hold).
Investors should also note CAT's current valuation metrics, including its Forward P/E ratio of 10.97. This represents a premium compared to its industry's average Forward P/E of 10.63.
Meanwhile, CAT's PEG ratio is currently 0.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Construction and Mining industry currently had an average PEG ratio of 1.06 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCaterpillar Inc. (CAT) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Nokia (NOK) Stock Moves -0.89%: What You Should Know
Nokia (NOK) closed at $5 in the latest trading session, marking a -0.89% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.95%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 1.51%.
Prior to today's trading, shares of the technology company had lost 1.56% over the past month. This has lagged the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.32% in that time.
Wall Street will be looking for positivity from NOK as it approaches its next earnings report date. In that report, analysts expect NOK to post earnings of $0.01 per share. This would mark a year-over-year decline of 75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.06 billion, down 4.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.24 per share and revenue of $25.95 billion, which would represent changes of -11.11% and -2.36%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NOK. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. NOK is currently a Zacks Rank #4 (Sell).
Digging into valuation, NOK currently has a Forward P/E ratio of 21.22. This represents a discount compared to its industry's average Forward P/E of 25.02.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportNokia Corporation (NOK) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Advanced Micro Devices (AMD) Dips More Than Broader Markets: What You Should Know
Advanced Micro Devices (AMD) closed at $28.86 in the latest trading session, marking a -1.37% move from the prior day. This move lagged the S&P 500's daily loss of 0.95%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 1.51%.
Prior to today's trading, shares of the chipmaker had gained 10.67% over the past month. This has outpaced the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.32% in that time.
Investors will be hoping for strength from AMD as it approaches its next earnings release. The company is expected to report EPS of $0.08, down 42.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.52 billion, down 13.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.66 per share and revenue of $6.89 billion. These totals would mark changes of +43.48% and +6.39%, respectively, from last year.
Any recent changes to analyst estimates for AMD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.12% lower. AMD is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, AMD currently has a Forward P/E ratio of 44.17. Its industry sports an average Forward P/E of 17.13, so we one might conclude that AMD is trading at a premium comparatively.
Meanwhile, AMD's PEG ratio is currently 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.48 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAdvanced Micro Devices, Inc. (AMD) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
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