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Boeing (BA) Dips More Than Broader Markets: What You Should Know
Boeing (BA) closed at $369.31 in the latest trading session, marking a -1.25% move from the prior day. This move lagged the S&P 500's daily loss of 0.95%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 1.51%.
Prior to today's trading, shares of the airplane builder had gained 5.38% over the past month. This has lagged the Aerospace sector's gain of 7.76% and outpaced the S&P 500's gain of 4.32% in that time.
Investors will be hoping for strength from BA as it approaches its next earnings release. The company is expected to report EPS of $1.81, down 45.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.48 billion, down 19.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.37 per share and revenue of $98.87 billion. These totals would mark changes of -10.24% and -2.23%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% lower. BA currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that BA has a Forward P/E ratio of 26.03 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.57.
Meanwhile, BA's PEG ratio is currently 2.33. 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. BA's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Boeing Company (BA) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Arbor Realty Trust (ABR) Dips More Than Broader Markets: What You Should Know
Arbor Realty Trust (ABR) closed at $12.03 in the latest trading session, marking a -1.15% move from the prior day. This change 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 real estate investment trust had lost 5.95% in the past month. In that same time, the Finance sector gained 2.3%, while the S&P 500 gained 4.32%.
ABR will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.28, down 9.68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $73.10 million, up 23.27% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.23 per share and revenue of $303.30 million. These totals would mark changes of +1.65% and +20.47%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ABR. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.77% higher. ABR is currently a Zacks Rank #1 (Strong Buy).
Investors should also note ABR's current valuation metrics, including its Forward P/E ratio of 9.93. For comparison, its industry has an average Forward P/E of 15.33, which means ABR is trading at a discount to the group.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportArbor Realty Trust (ABR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Qualcomm (QCOM) Stock Moves -0.83%: What You Should Know
Qualcomm (QCOM) closed at $72.55 in the latest trading session, marking a -0.83% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.95%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 1.51%.
Prior to today's trading, shares of the chipmaker had gained 10.5% 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 QCOM as it approaches its next earnings release. On that day, QCOM is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 24.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.11 billion, down 8.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.82 per share and revenue of $20.43 billion, which would represent changes of +3.52% and -10.1%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for QCOM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. QCOM is currently a Zacks Rank #3 (Hold).
Digging into valuation, QCOM currently has a Forward P/E ratio of 19.16. This valuation marks a discount compared to its industry's average Forward P/E of 25.02.
We can also see that QCOM currently has a PEG ratio of 1.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment was holding an average PEG ratio of 3.03 at yesterday's closing price.
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 reportQUALCOMM Incorporated (QCOM) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
JPMorgan Chase (JPM) Stock Moves -0.83%: What You Should Know
JPMorgan Chase (JPM) closed at $107.76 in the latest trading session, marking a -0.83% 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%.
Coming into today, shares of the biggest U.S. bank by assets had lost 0.96% in the past month. In that same time, the Finance sector gained 2.3%, while the S&P 500 gained 4.32%.
JPM will be looking to display strength as it nears its next earnings release, which is expected to be July 16, 2019. The company is expected to report EPS of $2.55, up 11.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $29.38 billion, up 5.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.03 per share and revenue of $115.29 billion. These totals would mark changes of +11.44% and +5.74%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for JPM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. JPM is currently a Zacks Rank #3 (Hold).
Digging into valuation, JPM currently has a Forward P/E ratio of 10.84. This valuation marks a premium compared to its industry's average Forward P/E of 10.79.
Also, we should mention that JPM has a PEG ratio of 1.55. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow JPM 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 reportJPMorgan Chase & Co. (JPM) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Exxon Mobil (XOM) Stock Moves -0.88%: What You Should Know
In the latest trading session, Exxon Mobil (XOM) closed at $76.27, marking a -0.88% move from the previous 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%.
Heading into today, shares of the oil and natural gas company had gained 3.85% over the past month, outpacing the Oils-Energy sector's gain of 3.19% and lagging the S&P 500's gain of 4.32% in that time.
Wall Street will be looking for positivity from XOM as it approaches its next earnings report date. In that report, analysts expect XOM to post earnings of $0.98 per share. This would mark year-over-year growth of 6.52%. Our most recent consensus estimate is calling for quarterly revenue of $74.45 billion, up 1.29% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.99 per share and revenue of $282.29 billion. These totals would mark changes of -19.07% and -2.73%, respectively, from last year.
Any recent changes to analyst estimates for XOM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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% lower. XOM currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that XOM has a Forward P/E ratio of 19.29 right now. For comparison, its industry has an average Forward P/E of 12.07, which means XOM is trading at a premium to the group.
We can also see that XOM currently has a PEG ratio of 1.76. 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. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 13% 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 XOM 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 reportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Jeep Cherokee remains the most American car of the year, according to Cars.com
As President Donald Trump'stariff threats loomand globalization increasingly blurs the lines between what's "made in USA" and what's not, Americans worry about whatrestrictions on automobile importswould mean for domestic jobs and car prices.
That's according toCars.comdata released Tuesday, which found that about half of all U.S. consumers are concerned about the possibility of the president slapping taxes on car goods coming from other countries.
What complicates the situation even further for buyers is that knowing what constitutes an American brand or model can be tricky because having a U.S. automaker’s emblem on your car doesn’t necessarily mean that it was built in the states – just as cars with a Korean or Japanese logo on them could have been constructed in Alabama.
Cars.com's data broke apart the hazy criteria when creating its 2019 American-Made Index (AMI), which ranks the top 15 new vehicles that contribute most to the U.S. economy, and found that consumers looking for a new set of wheels have a reason to be concerned.
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“Tariffs or other changes in trade policy could have a major impact on consumers and the auto industry, including rising costs,” said Kelsey Mays, senior editor at Cars.com.
“It’s no small task to move supply chains, much less alter where a car or its major components are built – both factors that influence AMI rankings. Such actions take years to plan, negotiate and implement.”
Few of the vehicles on Cars.com's list indicated major manufacturing changes as a result of imposed tariffs, Mays said, which comes as no surprise since American-made vehicles are largely resilient to tariffs.
For the second year in a row, the Jeep Cherokee, which is built in Belvidere, Illinois, took the top spot on Cars.com's American-Made Index.
In 2018, the report found that the Cherokee was made up of 72% domestic parts.
Other determining factors include engine sourcing and transmission sourcing, according to Cars.com.
Japanese automaker Honda's Odyssey minivan and Ridgeline pickup took the second and third spots, respectively, again this year, while Honda's Passport edged into the fourth-place position, which was occupied by the Chicago-built Ford Taurus in 2018. All three Hondas are made in Lincoln, Alabama.
About 120 models are being assembled in the U.S. for the 2019 model year, and more than 50% of vehicles bought by consumers are built in the states, Cars.com found.
Neither amount has changed significantly over the past year.
The list, ranked from highest to lowest, shows where each vehicle is assembled.
1. Jeep Cherokee,Belvidere, Illinois
2. Honda Odyssey,Lincoln, Alabama
3. Honda Ridgeline,Lincoln, Alabama
4. Honda Passport,Lincoln, Alabama
5. Chevrolet Corvette,Bowling Green, Kentucky
6. Acura MDX (excludes hybrid variants),East Liberty, Ohio
7. Honda Pilot,Lincoln, Alabama
8. Chevrolet Colorado,Wentzville, Missouri
9. GMC Canyon,Wentzville, Missouri
10. Acura RDX,East Liberty, Ohio
11. Chevrolet Camaro,Lansing, Michigan
12. Toyota Avalon (excludes hybrid variants),Georgetown, Kentucky
13. Ford F-150,Claycomo, Missouri / Dearborn, Michigan
14. Honda Accord,Marysville, Ohio
15. Toyota Tundra,San Antonio
Follow Dalvin Brown on Twitter: @Dalvin_Brown.
This article originally appeared on USA TODAY:Jeep Cherokee remains the most American car of the year, according to Cars.com |
Why Rite Aid Stock Popped Today
Shares ofRite Aid(NYSE: RAD)were moving higher on Friday as investor enthusiasm for the stock surged after news of yet another acquisition deal in the healthcare industry, and as the market is anticipating the struggling pharmacy chain's first-quarter earnings report out tomorrow afternoon.
The stock closed up 8.7% after gaining as much as 10.5% earlier in the session.
Image source: Getty Images.
This morning,AbbVie, the drugmaker best known for Humira, said itwould acquireBotox makerAllerganfor $63 billion, a move that sent shares of the target company up 25%. AbbVie, on the other hand, plunged 16% as investors seemed to think the companyoverpaidfor Allergan.
Nonetheless, the deal sparked hopes that Rite Aid would find a suitor after a deal withWalgreens Boots Alliancewas repeatedly blocked, ending in Rite Aid selling nearly half of its stores to the larger drugstore chain, rather than all of them.
M&A in the healthcare sector has been heating up, withCVSand Aetna merging, andCigna's acquisition of Express Scripts. After today's news, investors have newfound hope that Rite Aid will be the next to find a dance partner.
Shares of the country's No. 3 pharmacy chain have utterly collapsed since the Walgreens deal was blocked, as the stock is down 83% over the last year. Investors even had to endure the ignominy of a 1-for-20reverse splitin April to keep the stock from being delisted by the New York Stock Exchange.
Investors may also be hopeful ahead of the company's first-quarter report coming out after hours tomorrow. Analysts are expecting another round of unremarkable results with an adjusted loss per share of $0.07 and revenue of $5.38 billion, down 0.2% from a year ago, but given its low price and recent volatility, the stock could move sharply again Thursday after the quarterly results come out.
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Jeremy Bowmanowns shares of CVS Health and Rite Aid. The Motley Fool recommends CVS Health. The Motley Fool has adisclosure policy. |
Wilshire Phoenix ETP proposal published to SEC registry, starts the clock on public comment period and SEC decision
The U.S. Securities Exchange Commission (SEC) published arule change proposalfor Wilshire Phoenix Funds to list shares of its ETP on the NYSE Arca exchange. This marks the start of a public comment period before the SEC rules.
The comment period will last 21 days. While the SEC has a total of 45 days from publication to decide, it can extend this period to 90 days
The Wilshire Phoenix ETP proposal hedges bitcoin with Treasury bills to control for volatility, re-allocating the portion of bitcoin to Treasury bills each month depending on the previous month's volatility. Wilshire Phoenix Founder and Managing Partner Bill Herrmann told The Blocklast monththat it felt confident in the possibility of approval since the SEC has expressed concerns of volatility with a crypto ETP, and the fund mitigates that problem by grouping bitcoin with Treasury bills.
The Wilshire Phoenix ETP joins other ETF rule change proposals, like that of Bitwise Asset Management and VanEck/SolidX, both of which have seen multiple deadline extensions form the SEC. Some movement from the SEC on these proposals, whether in the form of decisions of delays, can be expected in mid-July. |
TrustToken rolls out its first Asian offering with Hong Kong dollar-backed stablecoin
Stablecoins issuer TrustToken has launched yet another product - this time pegged to the Hong Kong dollar (HKD), the firm announced Tuesday.
Dubbed TrueHKD, the stablecoin is backed by Hong Kong-licenced digital asset custody provider Legacy Trust, according to the announcement. Users can purchase TrueHKD from the firm's app.
TrustToken said the new offering is its "first major" expansion into the Asian market after launching TrueUSD,TrueGBP, TrueCAD and TrueAUD with custody providers based in the U.S.
"Asia is a significant market for the digital asset industry, and Hong Kong is the financial centre of the region, so it makes sense to launch TrueHKD to tap into that market and facilitate international transactions," said Legacy Trust founder and CEO Vincent Chok.
Earlier this month, TrustToken alsopartneredwith cryptocurrency exchange Binance to provide users an easier way to move in and out of TrueUSD stablecoin. |
Kemet (KEM) Stock Moves -0.83%: What You Should Know
In the latest trading session, Kemet (KEM) closed at $17.90, marking a -0.83% move from the previous day. This change was narrower than the S&P 500's 0.95% loss on the day. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 1.51%.
Coming into today, shares of the electronic capacitor maker had gained 6.99% in the past month. In that same time, the Computer and Technology sector gained 4.37%, while the S&P 500 gained 4.32%.
Investors will be hoping for strength from KEM as it approaches its next earnings release. On that day, KEM is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 36.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $343.47 million, up 4.84% from the year-ago period.
KEM's full-year Zacks Consensus Estimates are calling for earnings of $3.11 per share and revenue of $1.39 billion. These results would represent year-over-year changes of -12.15% and +0.78%, respectively.
It is also important to note the recent changes to analyst estimates for KEM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. KEM is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, KEM currently has a Forward P/E ratio of 5.8. Its industry sports an average Forward P/E of 17.41, so we one might conclude that KEM is trading at a discount comparatively.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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 reportKemet Corporation (KEM) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Flexible Solutions International (FSI) Gains As Market Dips: What You Should Know
Flexible Solutions International (FSI) closed the most recent trading day at $3.91, moving +1.3% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.95%. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 1.51%.
Heading into today, shares of the company had gained 18.77% over the past month, outpacing the Basic Materials sector's gain of 8.11% and the S&P 500's gain of 4.32% in that time.
FSI will be looking to display strength as it nears its next earnings release. On that day, FSI is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 50%. Our most recent consensus estimate is calling for quarterly revenue of $8.35 million, up 101.69% from the year-ago period.
FSI's full-year Zacks Consensus Estimates are calling for earnings of $0.31 per share and revenue of $32.74 million. These results would represent year-over-year changes of +342.86% and +83.62%, respectively.
Any recent changes to analyst estimates for FSI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, 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. FSI is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, FSI is holding a Forward P/E ratio of 12.45. Its industry sports an average Forward P/E of 16.19, so we one might conclude that FSI is trading at a discount comparatively.
The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FSI 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 reportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
CyberArk (CYBR) Dips More Than Broader Markets: What You Should Know
In the latest trading session, CyberArk (CYBR) closed at $124.83, marking a -1.8% move from the previous day. This change lagged the S&P 500's daily loss of 0.95%. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 1.51%.
Prior to today's trading, shares of the maker of software that detects attacks on privileged accounts had lost 5.07% 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.
CYBR will be looking to display strength as it nears its next earnings release. On that day, CYBR is projected to report earnings of $0.47 per share, which would represent year-over-year growth of 30.56%. Meanwhile, our latest consensus estimate is calling for revenue of $97.21 million, up 25.09% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.14 per share and revenue of $417.83 million. These totals would mark changes of +3.88% and +21.75%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CYBR. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.97% higher within the past month. CYBR is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, CYBR is holding a Forward P/E ratio of 59.33. Its industry sports an average Forward P/E of 36.82, so we one might conclude that CYBR is trading at a premium comparatively.
We can also see that CYBR currently has a PEG ratio of 3.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Security stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCyberArk Software Ltd. (CYBR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Cumberland Pharmaceuticals (CPIX) Gains As Market Dips: What You Should Know
Cumberland Pharmaceuticals (CPIX) closed the most recent trading day at $6.35, moving +0.79% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.95%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 1.51%.
Heading into today, shares of the pharmaceutical company had lost 1.56% over the past month, lagging the Medical sector's gain of 3.89% and the S&P 500's gain of 4.32% in that time.
Wall Street will be looking for positivity from CPIX as it approaches its next earnings report date. On that day, CPIX is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 600%. Our most recent consensus estimate is calling for quarterly revenue of $12.59 million, up 23.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.37 per share and revenue of $49.09 million. These totals would mark changes of +1333.33% and +20.49%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CPIX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CPIX is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, CPIX is holding a Forward P/E ratio of 17.03. This represents a discount compared to its industry's average Forward P/E of 18.11.
The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% 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 reportCumberland Pharmaceuticals Inc. (CPIX) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Marathon Petroleum (MPC) Stock Moves -0.41%: What You Should Know
Marathon Petroleum (MPC) closed the most recent trading day at $51.39, moving -0.41% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.95%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 1.51%.
Heading into today, shares of the refiner had gained 2.6% over the past month, lagging the Oils-Energy sector's gain of 3.19% and the S&P 500's gain of 4.32% in that time.
Investors will be hoping for strength from MPC as it approaches its next earnings release. In that report, analysts expect MPC to post earnings of $1.65 per share. This would mark a year-over-year decline of 27.31%. Our most recent consensus estimate is calling for quarterly revenue of $30.93 billion, up 37.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.59 per share and revenue of $115.39 billion, which would represent changes of -32.3% and +18.83%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MPC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.88% lower. MPC is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MPC is currently trading at a Forward P/E ratio of 11.25. This represents a discount compared to its industry's average Forward P/E of 13.82.
Meanwhile, MPC's PEG ratio is currently 1.31. 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. MPC's industry had an average PEG ratio of 1.61 as of yesterday's close.
The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportMarathon Petroleum Corporation (MPC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
San Francisco Becomes First U.S. City to Pass an E-Cigarette Ban
(Bloomberg) -- Although San Francisco is home to America’s most popular e-cigarette brand, city officials are signaling that they want nothing to do with Juul.
The city voted Tuesday to ban sales of e-cigarettes, making it illegal to sell nicotine vaporizer products in stores or for online retailers to ship the goods to San Francisco addresses. The ban will be the first of its kind to go into effect in the U.S.
The ordinance will now go to the mayor to sign into law. Cigarettes and other tobacco products will remain legal in the city, along with recreational marijuana.
As cigarette use in the U.S. declines, tobacco companies have looked to other areas for revenue growth. Altria Group Inc., which sells Marlboro cigarettes in the U.S., bought a 35% stake in Juul Labs Inc. last year, valuing the startup at $38 billion. Juul told investors last month that revenue rose to $528 million in the first quarter, as international sales took off. This week, an Indonesian retail chain that sells iPhones said it expected to begin carrying Juul products, sending its stock surging.
The legislation in San Francisco is aimed at all e-cigarette companies, but it has to feel personal for Juul. The San Francisco-based startup is the biggest target for vaping critics, who say it’s hooking kids on nicotine and creating a new generation of addicts.
Juul said it’s committed to stopping people under 21 from buying or using its products, but it wants to keep its vaporizers available to adult smokers looking for an alternative to cigarettes. “This full prohibition will drive former adult smokers who successfully switched to vapor products back to deadly cigarettes, deny the opportunity to switch for current adult smokers and create a thriving black market instead of addressing the actual causes of underage access and use,” Ted Kwong, a spokesman for Juul, wrote in an email after the vote.
Read more: The debate over vaping—a QuickTake explainer
After Tuesday's vote, Mayor London Breed has 10 days to review the legislation. If she signs it, the ban will take effect seven months later, when Juul and similar products will have to be removed from store shelves.
Juul has a backup plan: Put the issue in front of voters. The company said it has collected the required number of signatures to add a measure to the November ballot that would keep e-cigarettes available for purchase in the city to adults over 21. Juul is the major financier behind the Coalition for Reasonable Vaping Regulation, which has been collecting signatures.
On Tuesday, city supervisors also passed an ordinance blocking the sale, manufacture and distribution of e-cigarettes on city property. Juul currently leases office space from the city on Pier 70, but because the ordinance doesn’t apply retroactively, Juul will be able to stay in its space. Even so, Juul has a backup plan for this, too: Last week, the company said it bought a 29-floor office tower at 123 Mission Street and plans to start adding employees there in the next year.
City Attorney Dennis Herrera co-sponsored the sales ban with a city supervisor because, he said, the U.S. Food and Drug Administration failed to require e-cigarette companies to go through a pre-market approval process before they were allowed to sell their products. The FDA began overseeing e-cigarettes in 2016 under the Obama administration. After Donald Trump took office the next year, the agency said it would push back until 2022 a requirement that vape companies submit applications to continue selling their products. Once a product has FDA approval, the legislation would allow its sale in San Francisco again.
“We’ve seen a tremendous increase in use of e-cigarettes, which has led to increased rates of nicotine addiction among young people,” Herrera said. “I don’t think San Francisco is any different from any other city.”
Three weeks ago, Beverly Hills, California, passed the first sweeping prohibition on most tobacco sales, including e-cigarettes, starting in 2021. But a sales ban can’t stop people from heading to nearby cities to get their nicotine fix. That doesn’t worry Herrera.
“This is groundbreaking legislation that shows local governments are prepared to step up,” he said. “What you will see in the aftermath of this legislation is other jurisdictions looking at what they might be prepared to do to protect their young people.”
(Updates with comment from Juul in the sixth paragraph.)
--With assistance from Anna Edney.
To contact the author of this story: Ellen Huet in San Francisco at ehuet4@bloomberg.net
To contact the editor responsible for this story: Mark Milian at mmilian@bloomberg.net, Anne VanderMey
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
The Social Artist: Sandy Linter on How Disco Launched Her Life in Makeup
Sandy Linter is asked pretty much the same two questions every day:What does she remember about Studio 54, and what was it like to date Gia?
The 71-year-old has the response down to a science: First, she rolls her eyes—in the kindest way possible— then, she offers a quick lesson in how to refer to the larger-than-life club.
“It was Studio or 54, but never the two names together. You told the taxi to take you to Studio or 54 and they knew where to go.”
“I used to work a full day, go home, and my neighbor, hairdresser Howard Fugler, would come over and say, ‘You’re going out!’ And I would say, ‘Put me together!’ He would do my hair and pick out my outfit; I almost always ended up wearing springolators. That was the fashion!”
Photo by Allan Tannenbaum/Getty Images
Linter says she got through the disco’s infamously tough doors because Fugler, their mutual friend, and she knew the formula: “A straight guy, a gay guy and a girl who was practically nude. They saw us and knew we were ready to party. We were always in.”
You May Also Like:Debi Mazar on Disco Makeup, 'Chanel-Bag Face' and the Product She’s Used Since the '70s
Then, there is the subject of Gia Carangi—a not-as-succinct tale that Linter prefers to keep private.
“I met Gia on a shoot with Chris Von Wangenheim in 1978. I was doing the makeup and they asked me to hang around afterward to take some photos. I said ‘sure’ very stupidly and very emphatically before I realized we were going to be nude against a chain-link fence. I didn’t have a choice after that! How could I back out? The rest is history.”
Photo by Deborah Turbeville/Conde Nast via Getty Images
While she’s proud to be associated with both subjects, the makeup guru has since chosen to live in a world “post-disco,” and her focus now, at least when it comes to her career, is on the digital age.
“I owe so much to Instagram. I was popular in the first place because I had this bleach-blond hair and I looked like Debbie Harry. I stuck around because I was good at makeup. I’m still here because I have so many cool things to share on social media.”
In the morning, the first thing Linter does is scroll. “If I can’t relate to what other people are posting, I look through my own stuff and post what I’m feeling. Those are the photos that always get the most likes.”
Her personal archive is best described as “almost never-ending,” a well-preserved history of albums, prints, tear sheets, and— her personal favorite—the Polaroids.
“I would take my SX-70 Polaroid camera everywhere. It was amazing and the colors have held up so well. I loved seeing people and I saved everything I shot—it was never hard to get the shot. I was always around interesting people; I was with Warhol at a diner any night of the week. It was such a scene, and one thing would always lead to another.”
Polaroid Courtesy of Sandy Linter
EARLY MOVESGrowing up in Staten Island, Linter knew she had a talent when her mom, a secretary who “stackedVogueon the nightstand and had a bathroom covered with products she didn’t know how to use,” started asking her to do her makeup before work.
“I started copying the makeup on myself when I was 15—that’s how all makeup and hair experts start—and next I thing I knew, I was in Bloomingdale’s behind the Kenneth counter. Mr. Kenneth owned a beautiful brownstone on 54th and Madison where all the celebrities went.Jackie Kennedy, Barbara Walters and all the names were his clients. So, by default, they became my clients. I never had to knock on doors. I never had to suffer from lack of confidence.”
It’s that confidence, Linter says, that got her to the next step in her career. “All I ever knew, all I ever had to know, was just a little bit more about makeup than my clients.”
“There were very few makeup artists in New York in the ’70s—it was like the Wild West in a way that it was so open. I never had to network! I never had a business card, yet I always had the best jobs. I coasted until MAC came along, which gave way to droves and droves of makeup artists. After that, nothing was the same, but it was a positive change.”
SQUAD GOALSA photo shoot in 1977 also changed Linter’s professional course, setting up another important relationship. More than 40 years later, after all the Studio 54 and Gia stories have been told, it is still a story that makes her tear up.
“I was in Santo Domingo withVogueand Iman was there. I had worked with her a few times before and we were sitting by the pool under one of those tables with an umbrella.”
“Then cameChristie [Brinkley], introducing herself like she always does, with that big smile. I can still remember telling myself, ‘This is the most beautiful girl you have ever seen. You have to remember this moment.’”
Yet life continued. Linter remembers doing shoots with Brinkley over the years. “She was a very popular girl. She got married, she had children, she was doing her thing and I was doing my thing.”
Then, a few years back, New York colorist Rita Hazan mentioned to Linter that she was doing Brinkley’s hair for an event.
“When Christie walked into the salon that day, I was ready for her. I did thisNARSCruella red lip on her that I’ll never forget. It was great—here I was, 40 years later, working with another model, a model who is still here and not going anywhere!”
Brinkley is also one of Linter’s favorite subjects to post on Instagram, and Linter shows up in a fair share of Brinkley’s posts.
“This whole social media thing feels like a continuation of the story I’ve always done. It feels very much like survival mode,” she says with a laugh.
“Sometimes I forget the names, but I never forget the makeup.”
Photo Courtesy of Sandy Linter
Watch Sandy recreate one of her favorite makeup makeovers atnewbeauty.com/sandylinter |
The Netlinkz (ASX:NET) Share Price Is Up 267% And Shareholders Are Boasting About It
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Unless you borrow money to invest, the potential losses are limited. But if you pick the right stock, you can make a lotmorethan 100%. Take, for exampleNetlinkz Limited(ASX:NET). Its share price is already up an impressive 267% in the last twelve months. On top of that, the share price is up 175% in about a quarter. Also impressive, the stock is up 108% over three years, making long term shareholders happy, too.
View our latest analysis for Netlinkz
We don't think Netlinkz's revenue of AU$277,703 is enough to establish significant demand. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. Investors will be hoping that Netlinkz can make progress and gain better traction for the business, before it runs low on cash.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Of course, if you time it right, high risk investments like this can really pay off, as Netlinkz investors might know.
Netlinkz had liabilities exceeding cash by AU$5,785,905 when it last reported in December 2018, according to our data. That puts it in the highest risk category, according to our analysis. So the fact that the stock is up 267% 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. You can see in the image below, how Netlinkz's cash levels have changed over time (click to see the values).
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. Given that situation, many of the best investors like to check if insiders have been buying shares. It's usually a positive if they have, as it may indicate they see value in the stock. Luckily we are in a position to provide you with thisfreechart of insider buying (and selling).
We're pleased to report that Netlinkz rewarded shareholders with a total shareholder return of 267% over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 28%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
But note:Netlinkz may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast).
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. |
'Braxton Family Values' Star Towanda Braxton Accused of Fraud by Ex-Landlord Over $76k Debt
Braxton Family Values star Towanda Braxton is being accused of lying about her income and assets as part of her bankruptcy, and her ex-landlord has slapped her with a lawsuit. According to court documents obtained by The Blast, Michael Wagoner sued Braxton as part of her bankruptcy case. Wagoner is owed $76,000 from Braxton relating to a judgment stemming from a lawsuit over unpaid rent and damages to a rental home. He is demanding the debt NOT be wiped clean as part of Braxtons recent Chapter 7 bankruptcy. Braxton and Wagoner entered into a deal back in September 2018, where she agreed to make payments to settle the debt. He says she only made one payment and refused to make the rest. He claims she damaged the home she rented from him substantially. He claimed she left the home with knife holes in the garage doors and bedroom walls and claims she caused fire damage to the home. Once he started to try and collect on the money, he claims Braxton filed for bankruptcy. Wagoner accuses the reality star of misrepresenting the value of her property in the bankruptcy. He also accuses her of failing to disclose all her income and her full list of assets. He wants the entire debt owed him to not be discharged and for punitive damages against Braxton. As The Blast first reported, Towanda Braxton filed for Chapter 7 bankruptcy in April, listing $277,650 in assets but $547,056.39 in liabilities. She listed her monthly income as $4,692 but expenses per month total $6,020, leaving her in the red. Her assets include a new Georgia home (worth about $275k), $1,500 in household goods, $1k in clothing and only $150 in her checking account ... with zero in her savings. Towandas debt includes $417,715 to a mortgage company, $76k to her former landlord, $982 to Comcast, over a thousand to collection attorneys, $8,480 to Covenant Christian Academy, $6,211.30 in medical bills, $35,000 to her sister Tamar who gave her a personal loan and various other debts. Story continues Braxton recently completed an online class on personal financial management . The reality star completed her class on May 18 and now is one step closer to having her $450k in debt wiped clean. The case is ongoing. |
AbbVie, Allergan Deal Puts Spotlight on Pharmaceutical ETFs
This article was originally published onETFTrends.com.
Pharmaceutical sector-specific exchange traded funds showed mixed results Tuesday after AbbVie (ABBV) agreed to acquire Allergan (AGN) for $63 billion.
Among the largest pharma-specific ETFs,Invesco Dynamic Pharmaceuticals Portfolio (PJP) was up 0.1%,SPDR Pharmaceuticals ETF (XPH) gained 2.4%,iShares U.S. Pharmaceuticals ETF (IHE) rose 1.9% andVanEck Vectors Pharmaceutical ETF (PPH) was 0.1% higher on Tuesday,
AbbVie agreed to buy out Allergan for about $63 billion as the two drugmakers bet that combined they will deliver new sources of growth they have struggled to find on their own, theWall Street Journalreports.
AbbVie's acquisition of Allergan would cement a dominant position in the $8 billion-plus market for Botox and other beauty drugs, along with a number of popular eye treatments. The combined line could help AbbVie shore up weakness as it sees the end of patent protection for the world’s top-selling drug, Humira.
Additionally, companies’ portfolios have some overlap in treatments for brain, women’s-health, stomach and other disorders. However, their combined businesses would help AbbVie move into into beauty lines from frown-line smoothing, eyelash lengthening and double-chin removal.
Triggering the disparate performances among the various pharmaceutical ETFs on Tuesday, AbbVie shares plunged 16.3% while Allergan shares surged 25.4% in response to the deal.
The varying performances in the pharmaceutical ETF segment goes to show the importance of looking closer into an ETF holdings and considering one's own goals before making the final decision to invest.
Specifically, something like XPH, which includes a 4.9% tilt toward AGN, follows a more equally weighted indexing methodology, so smaller or mid-sized companies hold a larger weight in the portfolio. These types of companies are also some of biggest take-over targets when larger players are looking to shop around for an acquisition.
On the other hand, ETFs that follow more cap-weighted indexing methodologies, such as PPH, will tilt toward some of the largest companies in the space, including a 5.0% position in ABBV.
For more information on the pharma sector, visit ourpharmaceuticals category.
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This Ikea Will Upcycle Your Old Linens to Make Beds For an Animal Shelter
Photo credit: Getty Images From House Beautiful I am an avid Ikea shopper and I'm not afraid to admit it. Besides selling great furniture at affordable prices, the company has long been dedicated to sustainability and giving back to its community. Now, one location is upping the game. The brand's Tempe, Australia location is upcycling by allowing customers to bring in used linens-quilts, quilt covers, sheets, blankets, and towels, as long as they are clean and in decent condition-which the store is gifting to a really good cause. All of the donations are going to an animal shelter. The donations will be made into beds for all of the animals at RSPCA NSW a nonprofit animal charity located in New South Wales, Australia. So, not only is this effort a move at sustainability with a zero-waste goal, but it also helps the puppies! What more could you ask for? Local residents can drop off their linens from July 6 to July 14 (beware– they have a strict timeline, no donation will be accepted before or after the predetermined dates). But there's more-for all the passionate animal lovers who decide to donate, Ikea will be hosting adoption days, with the intention to try and help these animals find their forever home. In the terms and conditions Ikea says it believes "our products deserve a second life," and it's clear that they believe the animals do too. The Ikea adoption days will be held July 6 and July 11, from 11am-2pm. Photo credit: House Beautiful Hopefully, Ikea stores in the U.S. see this great initiative and decide to adopt it. Not that we need another reason to visit Ikea! 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 |
Qian Hu Corporation Limited (SGX:BCV) Might Not Be A Great Investment
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Today we are going to look at Qian Hu Corporation Limited (SGX:BCV) to see whether it might be an attractive investment prospect. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business.
First of all, we'll work out how to calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Finally, we'll look at how its current liabilities affect its ROCE.
ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. Ultimately, it is a useful but imperfect metric. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.'
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 Qian Hu:
0.022 = S$1.1m ÷ (S$80m - S$28m) (Based on the trailing twelve months to March 2019.)
Therefore,Qian Hu has an ROCE of 2.2%.
See our latest analysis for Qian Hu
When making comparisons between similar businesses, investors may find ROCE useful. Using our data, Qian Hu's ROCE appears to be significantly below the 7.4% average in the Leisure industry. This performance could be negative if sustained, as it suggests the business may underperform its industry. Independently of how Qian Hu compares to its industry, its ROCE in absolute terms is low; especially compared to the ~2.3% available in government bonds. Readers may wish to look for more rewarding investments.
Our data shows that Qian Hu currently has an ROCE of 2.2%, compared to its ROCE of 1.2% 3 years ago. This makes us think the business might be improving.
It is important to remember that ROCE shows past performance, and is not necessarily predictive. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. ROCE is only a point-in-time measure. If Qian Hu is cyclical, it could make sense to check out thisfreegraph of past earnings, revenue and cash flow.
Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. 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.
Qian Hu has total liabilities of S$28m and total assets of S$80m. As a result, its current liabilities are equal to approximately 35% of its total assets. In light of sufficient current liabilities to noticeably boost the ROCE, Qian Hu's ROCE is concerning.
So researching other companies may be a better use of your time. But note:make sure you look for a great company, not just the first idea you come across.So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20).
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
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. |
Wildfire Risk Blazing Across Western U.S.
It's been a fairly busy wildfire season in the western U.S. this year, but it hasn't been nearly as destructive as in 2018. However, some meteorologists and wildlife officials aren't ruling out the chance that this season could get much worse, asreported by FreightWaves last week. Crews in several parts of the Desert Southwest and Great Basin have been busy trying to contain some large fires, and conditions are prime for these fires to possibly get worse and then out of control.
SONAR Critical Events: Woodbury Fire outside of Phoenix, Arizona on June 25, 2019.
This year's fires haven't received much coverage in the national news, but at least one is noteworthy because of its proximity to a large city. TheWoodbury Fire– as seen below in FreightWaves' SONAR – began on June 8, about 60 miles east of Phoenix, Arizona in the Superstition Wilderness. It's still burning, and as of today, June 25, it covers nearly 116,000 acres, having increased in size by 80 percent in the past four days. It's 48 percent contained, according to InciWeb, and the exact cause hasn't been determined.
Timing and length of typical wildfire seasons differ from state to state, and even from region to region within a state. Mark O'Malley, a meteorologist with the National Weather Service (NWS) in Phoenix, told FreightWaves that this is the peak of wildfire season in southern Arizona. It typically starts around Memorial Day and lasts through July 4. This season hasn't been as destructive as last year's, but O'Malley said there's one significant difference.
"The winter was wet, leading to a lot of overgrowth in the lower elevations," explained O'Malley. "So, fires are burning in areas around 2,000 to 4,000 feet up, while the higher elevations [near Flagstaff] aren't burning yet." This is the reverse of what happened in 2018.
With the Woodbury fire not far from Phoenix, there's a concern due to the urban-wildlife interface often found near metropolitan areas. But the Woodbury Fire, as well as several smaller fires in Arizona, are also endangering many tucked-away low population communities. O'Malley believes this fire season "may end later than normal" because there's no rain in sight for the next couple of weeks.
SONAR Critical Events: High-risk wildfire regions (circled in red) as of June 25, 2019.
So far this year, more than 1,5000 wildfires have scorched more than 12,500 acres of land in California. These are only the fires to which the California Department of Forestry and Fire Protection (CalFire) responded. Including fires worked by the U.S. Forest Service (USFS), the totals are 1,815 and 16,719, respectively.
Earlier this June, fires were easily sparked during a triple-digit heat wave. The Sand Fire in Yolo County, California started on June 8 and lasted a week, burning around 2,500 acres.
In anticipation of the Golden State's peak wildfire season in the months to come, CalFire, under an executive order from California Governor Gavin Newsom,released a reportin February identifying 35 top-priority projects to thin vegetation in and around more than 200 vulnerable communities. CalFire is now working with local communities to carry out the projects and has asked the state's National Guard to help execute them.
One of the most recent fires was the Doe Canyon Fire in southwestern Colorado. It was discovered on the afternoon of June 20, caused by a lightning strike on June 18 about 10 miles southeast of Dove Creek. This area is lush with vegetation, and the fire has increased from 1.5 acres on the day it was discovered to 215 acres today. Crews are monitoring the fire and taking steps to keep it within an area that will not threaten ongoing timber sales and other areas. Some forest roads are closed due to the Doe Fire, and smoke may be visible from both it and nearby prescribed fires.
As fires burn in many other western states, dry and breezy conditions are forecast for the rest of this week. This increases the chances for fires to spread rapidly and for new ones to spark. In response to the threat, the NWS has issuedRed Flag Warnings and Fire Weather Watchesacross the region and offersthese tipsfor wildfire weather safety.
Image Sourced From Pixabay
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San Francisco Is the First U.S. City to Ban E-Cigarettes Sales
Although San Francisco is home to America’s most popular e-cigarette brand, city officials are signaling that they want nothing to do with Juul.
The cityvotedTuesday to ban sales of e-cigarettes, making it illegal to sell nicotine vaporizer products in stores or for online retailers to ship the goods to San Francisco addresses. The ban will be the first of its kind to go into effect in the U.S.
The ordinance will now go to the mayor to sign into law. Cigarettes and other tobacco products will remain legal in the city, along with recreational marijuana.
As cigarette use in the U.S. declines, tobacco companies have looked to other areas for revenue growth.Altria GroupInc., which sells Marlboro cigarettes in the U.S., bought a 35% stake in Juul Labs last year, valuing the startup at $38 billion. Juul told investors last month that revenue rose to $528 million in the first quarter, as international sales took off. This week, an Indonesian retail chain that sells iPhones said it expected to begin carrying Juul products, sending its stock surging.
The legislation in San Francisco is aimed at all e-cigarette companies, but it has to feel personal for Juul. The San Francisco-based startup is the biggest target for vaping critics, who say it’s hooking kids on nicotine and creating a new generation of addicts.
Juul said it’s committed to stopping people under 21 from buying or using its products, but it wants to keep its vaporizers available to adult smokers looking for an alternative to cigarettes. “The prohibition of vapor products for all adults in San Francisco will not effectively address underage use and will leave cigarettes on shelves as the only choice for adult smokers,” Ted Kwong, a spokesman for Juul, wrote in an email
After Tuesday’s vote, Mayor London Breed has 10 days to review the legislation. If she signs it, the ban will take effect seven months later, when Juul and similar products will have to be removed from store shelves.
Juul has a backup plan: Put the issue in front of voters. The company said it has collected the required number of signatures to add a measure to the November ballot that would keep e-cigarettes available for purchase in the city to adults over 21. Juul is the major financier behind the Coalition for Reasonable Vaping Regulation, which has been collecting signatures.
On Tuesday, city supervisors also passed an ordinance blocking the sale, manufacture, and distribution of e-cigarettes on city property. Juul currently leases office space from the city on Pier 70, but because the ordinance doesn’t apply retroactively, Juul will be able to stay in its space. Even so, Juul has a backup plan for this, too: Last week, the company said it bought a 29-floor office tower at 123 Mission Street and plans to start adding employees there in the next year.
City Attorney Dennis Herrera co-sponsored the sales ban with a city supervisor because, he said, the U.S. Food and Drug Administration failed to require e-cigarette companies to go through a pre-market approval process before they were allowed to sell their products. The FDA began overseeing e-cigarettes in 2016 under the Obama administration. After Donald Trump took office the next year, the agency said it would push back until 2022 a requirement that vape companies submit applications to continue selling their products. Once a product has FDA approval, the legislation would allow its sale in San Francisco again.
“We’ve seen a tremendous increase in use of e-cigarettes, which has led to increased rates of nicotine addiction among young people,” Herrera said. “I don’t think San Francisco is any different from any other city.”
Three weeks ago, Beverly Hills, Calif., passed the first sweeping prohibition on most tobacco sales, including e-cigarettes, starting in 2021. But a sales ban can’t stop people from heading to nearby cities to get their nicotine fix. That doesn’t worry Herrera.
“This is groundbreaking legislation that shows local governments are prepared to step up,” he said. “What you will see in the aftermath of this legislation is other jurisdictions looking at what they might be prepared to do to protect their young people.”
—P&G and Thrive Global team upto boost wellness with everyday products
—As states like Texasban under-21 tobacco sales, retailers are adapting
—Commentary: WhyAlexa gaining medical skillscould be bad for health care
—CVS wants to make yourdrugstore your doctor
—Listen to our new audio briefing,Fortune 500 Daily
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UPDATE 2-Brazil court slashes fine for Facebook's refusal to share WhatsApp data
(Adds details on WhatsApp's comments about the decision, context)
By Gabriela Mello
SAO PAULO, June 25 (Reuters) - Facebook Inc's fine for withholding WhatsApp messages from a drug-trafficking investigation in Brazil should be reduced to 23 million reais ($6 million), a Brazilian federal appeals court ruled on Tuesday.
The decision overturned a fine of around 2.035 billion reais ($528 million) imposed in June 2017, deemed disproportionate by the court.
In a statement to Reuters, a WhatsApp spokesperson welcomed the appeals court decision. "We care deeply about the privacy of our users and are grateful the Parana court affirmed the importance and legality of end-to-end encryption within Brazil. This significant decision will help safeguard the rights of people in Brazil to have safe and private conversations online."
The world's largest social network has struggled with legal troubles in Brazil in recent 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 to 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 reported that supporters of far-right candidate and eventual victor Jair Bolsonaro had funded mass messaging attacks against leftist rival Fernando Haddad.
A few days before the election, Facebook removed dozens of pages and accounts associated with a Brazilian marketing group, for violating the social media network's misrepresentation and spam policies.
WhatsApp has more than 120 million users in Brazil, a country of nearly 210 million people, rivaling the reach of Facebook's main platform in one of the company's biggest global markets.
The messaging service has become one of the main ways Brazilians keep in touch with friends, colleagues and family, and also an important channel for getting political information.
($1 = 3.8550 reais) (Reporting by Gabriela Mello; Editing by Lisa Shumaker and Rosalba O'Brien) |
Growth of US Debt Slows, but Record Levels Still Ahead
The national debt will reach “unprecedented levels” over the next 30 years, according to the new long-term budget outlook released Tuesday by the Congressional Budget Office. Federal outlays will exceed revenues during the entire period, as increased spending on Social Security, Medicare and interest on the debt outpaces more modest increases in tax revenues.
Debt held by the public is projected to rise from the current level of 78% of GDP to 144% of GDP by 2049 – far higher than the 106% of GDP recorded in 1946, on the heels of the historic military buildup during World War II.
The CBO said the rate of increase in debt expenses has slowed slightly compared to last year’s estimate, largely due to lower interest rate projections, and future debt levels could be larger or smaller than current estimates depending on productivity growth and interest rates between now and 2049. Still, virtually all projections show a substantial increase in debt over the 30-year window.
Some additional key details from the report:
* Interest costs are projected to rise significantly. “In CBO’s extended baseline projections, net outlays for interest more than triple in relation to the size of the economy over the next three decades, exceeding all discretionary spending by 2046.”
* Demographics play an important role.As analysts have long understood, the ongoing retirement of the Baby Boomers will drive Medicare and Social Security spending higher in the coming years. Rising health care costs per person are particularly important, since they amplify the effects of an aging population.
* Annual deficits are expected to grow.The Republican tax cuts reduced federal revenues as a percentage of GDP and the most recent spending deal raised spending well above the caps imposed by the Budget Control Act, producing a deficit equal to 4.2% of GDP in 2019. The CBO expects the deficit to rise to 4.5% of GDP by 2029 and 8.7% of GDP in 2049 – far above the 2.7% average recorded over the past 50 years.
* Stabilizing the debt could be painful.In order to hold the debt at its current level of 78% of GDP, the federal government would need to do some combination of tax increases and spending cuts totaling 1.8% of GDP every year beginning in 2020.
* Political decisions could make things worse.The CBO analysis assumes that current policies governing government spending and tax levels will remain in effect. But if lawmakers decide to change those policies – especially raising spending above the budget caps in 2020 and overriding the expiration of the individual tax cuts in 2026 – then the debt could be substantially larger, rising to 219% of GDP by 2049.
* Rising debt levels come with increased risks.“The prospect of such large deficits over many years, and the high and rising debt that would result, poses substantial risks for the nation and presents policymakers with significant challenges,” CBO Director Phillip Swagel said. Those risks include a possible dampening effect on economic growth and a greater likelihood of experiencing a fiscal crisis.
Read “The 2019 Long-Term Budget Outlook” from the CBO.
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Do Directors Own China Ruifeng Renewable Energy Holdings Limited (HKG:527) Shares?
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If you want to know who really controls China Ruifeng Renewable Energy Holdings Limited (HKG:527), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
With a market capitalization of HK$864m, China Ruifeng Renewable Energy Holdings is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about 527.
View our latest analysis for China Ruifeng Renewable Energy Holdings
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. China Ruifeng Renewable Energy Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Hedge funds don't have many shares in China Ruifeng Renewable Energy Holdings. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders maintain a significant holding in China Ruifeng Renewable Energy Holdings Limited. It has a market capitalization of just HK$864m, and insiders have HK$259m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
The general public, mostly retail investors, hold a substantial 69% stake in 527, suggesting it is a fairly popular stock. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here's Why I Think Azeus Systems Holdings (SGX:BBW) Might Deserve Your Attention Today
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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
In contrast to all that, I prefer to spend time on companies likeAzeus Systems Holdings(SGX:BBW), which has not only revenues, but also profits. Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.
View our latest analysis for Azeus Systems Holdings
In a capitalist society capital chases profits, and that means share prices tend rise with earnings per share (EPS). So like the hint of a smile on a face that I love, growing EPS generally makes me look twice. You can imagine, then, that it almost knocked my socks off when I realized that Azeus Systems Holdings grew its EPS from HK$0.062 to HK$0.42, in one short year. When you see earnings grow that quickly, it often means good things ahead for the company.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Azeus Systems Holdings shareholders can take confidence from the fact that EBIT margins are up from -8.2% to 14%, and revenue is growing. Ticking those two boxes is a good sign of growth, in my book.
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
Azeus Systems Holdings isn't a huge company, given its market capitalization of HK$21m. That makes it extra important to check on itsbalance sheet strength.
I always like to check up on CEO compensation, because I think that reasonable pay levels, around or below the median, can be a sign that shareholder interests are well considered. For companies with market capitalizations under HK$1.6b, like Azeus Systems Holdings, the median CEO pay is around HK$1.8m.
The CEO of Azeus Systems Holdings only received HK$618k in total compensation for the year ending March 2019. That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense.
Azeus Systems Holdings's earnings have taken off like any random crypto-currency did, back in 2017. Such fast EPS growth makes me wonder if the business has hit an inflection point (and I mean the good kind.) At the same time the reasonable CEO compensation reflects well on the board of directors. While I couldn't be sure without a deeper dive, it does seem that Azeus Systems Holdings has the hallmarks of a quality business; and that would make it well worth watching. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if Azeus Systems Holdings is trading on a high P/E or a low P/E, relative to its industry.
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What the $63 Billion AbbVie Allergan Deal Says About the Drug Industry: Brainstorm Health
Good afternoon, readers.
Let’s parse the big news out of the health care acquisitions world—AbbVie announced on Tuesday thatit will buy Allergan in a deal valued at about $63 billion, a 45% premium on Allergan’s most recent closing stock price. The proposed M&A will be one of the largest health care mergers of the year and bring together a portfolio that includes AbbVie’s Humira, the world’s best-selling drug, and Allergan’s flagship beauty treatment Botox.
The reaction from investors was mixed. Allergan shareholders rejoiced as shares shot up more than 25% in Tuesday trading. AbbVie stock, for its part, was down more than 16%.
But the AbbVie Allergan deal isn’t just a story about health care consolidation – it’s one about the state of innovation among big, legacy biopharma companies scurrying to find ways to plug future holes in their revenue streams. Both companies have bled market value in the past year as investors questioned whether AbbVie can make up for falling sales of its blockbuster psoriasis and arthritis treatment Humira, which rang in nearly $20 billion in 2018 revenues alone, and pushed for abreakup of Allerganamid pipeline struggles.
AbbVie CEO Richard A. Gonzalez heralded the deal as “transformative.”
“This is a transformational transaction for both companies and achieves unique and complementary strategic objectives,” he said in a statement. “[T]his strategy allows us to diversify AbbVie’s business while sustaining our focus on innovative science and the advancement of our industry-leading pipeline well into the future.”
Allergan chief Brent Saunders will join AbbVie’s board if and when the deal closes while Gonzalez will remain chairman and CEO of the combined company. While Saunders has a reputation as aprolific deal makerwho chases bolt-on acquisitions, growth from recent drug pipeline additions has been hard to come by.
For AbbVie, the rationale for the acquisition is clear – expand the portfolio and preserve the bottom line ahead of Humira’s patent expiration in the U.S. in 2023. Several of AbbVie’s experimental drug hopefuls have hit hitches in the past year, and Humira has already faced increased competition in markets like Europe.
Put another way: “AbbVie has near-term growth but faces a cliff, or more like a canyon, problem with the loss of Humira to [generic] biosimilars in the U.S. beginning mid-2023 while Allergan… has struggled to generate growth but doesn’t face any key near-term exclusivity loss,” wrote Raymond James analyst Elliot Wilbur in a research note.
Wilbur went on to state that AbbVie’s expected role as “the key R&D decision maker” could present several advantages, including “accelerated investment behind Botox therapeutics as well as simply better pipeline decision making than what Allergan management has demonstrated in the past.”
Humira and Botox are such quintessential elements of their respective companies’ portfolios that the firms have done everything possible to safeguard their patents and ward off potential rivals from entering the market. And Gonzalez was quick to note Botox’s immunity from competition as a rationale for the deal.
“It’s very unlikely we’ll see a Botox biosimilar for a long, long time, if ever,” he said on Tuesday of Allergan’s efforts to protect the product.
Legacy pharmaceutical giants have resorted to deal-making and preserving patents in recent years as their return on investment in new R&Dplummeted to 10-year lowsin 2018. One recent trend has been a focus on niche therapies with high price points and a reliance on list price hikes, alongside bolt-on acquisitions and in-licensing products from leaner biotechs. The AbbVie Allergan acquisition may prove a $63 billion case study in how some large drug makers are grappling with the reality of an innovation gap.
Read on for the day’s news.
Sy Mukherjee@the_sy_guysayak.mukherjee@fortune.com
1. DIGITAL HEALTHUnproven stem cell treatments are still a problem.In recent years, the Food and Drug Administration (FDA) has clamped down on clinics hawking unproven stem cell treatments for a variety of conditions. But a new study finds that physicians themselves are a major source of the problem—in fact, half of physicians who work as clinicians at stem cell companies specialize in areas completely unrelated to stem cell therapy, according to the Mayo Clinic researchers.(Reuters)
2. INDICATIONSA new gene therapy shows promise for “butterfly children.”Shares of Krystal Biotech surged more than 25% in Monday trading (before dipping a modest 2% on Tuesday) after the company reported promising results for a gene therapy to treat dystrophic epidermolysis bullosa (patients of the rare skin disorder are sometimes called “butterfly children” to reflect the blisters and wounds caused by the condition). The experimental KB102 treatment has received the FDA’s expedited review designation; the incurable condition often forces patients to cover up their skin, as even light contact or scratching can cause painful blisters.(MarketWatch)
3. THE BIG PICTURECommonly prescribed meds linked to dementia risk, study finds.Popular medications—including certain antidepressants and antipsychotics in a class of treatments called “anticholinergic” drugs—are linked with significantly elevated risk for dementia, according to a new studypublished in JAMA Internal Medicine. The study authors found a nearly 50% increase in dementia cases among older adults who took certain treatments in this class at least once a day over a three-year period compared to those who didn’t.(CNN)
4. REQUIRED READINGRecreational Marijuana Is Now Legal in 11 States,by The Associated PressThe Apple Watch Series 4 Outsold Every Other Smart Watch in 2018—In Just One Quarter,by Don ReisingerWhat New U.S. Sanctions Mean for Iran,by Terry CollinsAs More Products Are Made for Single People, a Waste Conundrum Emerges,by Lydia BelangerProduced by Sy Mukherjee@the_sy_guysayak.mukherjee@fortune.comFind past coverage. Sign up for other Fortune newsletters. |
CanAlaska Announces up to $1,500,000 Private Placement Financing
Vancouver, British Columbia--(Newsfile Corp. - June 25, 2019) -CanAlaska Uranium Ltd. (TSXV:CVV) (FSE:DH7N), (the "Company") announces that it proposes to undertake a non-brokered private placement of flow-through units (the "FTUnits") and non-flow-through units (the "Units") for total gross proceeds of up to $1,500,000. Each FT Unit will be sold at a price of $0.32 and consist of one flow-through common share and one transferable common share purchase warrant (a "Warrant"). Each Unit will be sold at a price of $0.275 and will consist of one common share and one Warrant. Each Warrant will entitle the holder thereof to purchase one non-flow-through common share for a period of 5 years at a price of $0.60. The exact number of Units and NFT Units sold will be determined at closing.
The gross proceeds received from the sale of the FT Units will be used for work programs on the Company's exploration properties, with priority given to its West McArthur property. The net proceeds received from the sale of the Units will be used for general working capital.
The Company may pay finders' fees comprised of cash and non-transferable warrants in connection with the private placement, subject to compliance with the policies of the TSX Venture Exchange. Completion of the private placement and the payment of any finders' fees remain subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
About CanAlaska Uranium
CanAlaska Uranium Ltd. (TSXV: CVV) (FSE: DH7N) holds interests in approximately 152,000 hectares (375,000 acres), in Canada's Athabasca Basin - the "Saudi Arabia of Uranium." CanAlaska's strategic holdings have attracted major international mining companies. CanAlaska is currently working with Cameco and Denison at two of the Company's properties in the Eastern Athabasca Basin. CanAlaska is a project generator positioned for discovery success in the world's richest uranium district. The Company also holds properties prospective for nickel, copper, gold and diamonds. For further information visitwww.canalaska.com.
On behalf of the Board of Directors
"Peter Dasler"Peter Dasler, M.Sc., P.Geo.President & CEOCanAlaska Uranium Ltd.
Contacts:
Peter Dasler, PresidentTel: +1.604.688.3211 x 138Email:info@canalaska.com
Cory Belyk, COOTel: +1.604.688.3211 x 138Email:cbelyk@canalaska.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking information
All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. In particular, this news release contains forward-looking information regarding the private placement offering and the use of proceeds of such offering. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company's control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.
Not for distribution to United States newswire services or for dissemination in the United States.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45885 |
Wayfair Employees Plan Walkout to Protest the Company Selling Beds to Border Detention Facilities
Wayfair employees have planned a walkout on Wednesday to protest furniture sales by the online home goods store to a detention facility based along the U.S.-Mexico border. The planned protest comes after more than 500 employees signed a letter asking company leadership to cancel an order that would provide bedroom furniture to a border detention site in Texas, a Wayfair employee, who declined to be named, tells TIME. Wayfair’s CEO rejected the request. The letter to executive leadership, a copy of which was provided to TIME, details that the company received an order of more than $200,000 worth of bedroom furniture from BCFS, a non-profit network that contracts with the government. The order would send supplies to Carrizo Springs, Texas, where a facility is reportedly being prepared to “detain up to 3,000 migrant children,” according to the letter. The Washington Post reported earlier this month that a private contractor will manage a temporary influx shelter in Carrizo Springs, where 1,600 migrant children are expected to be housed in a compound where oil field workers used to stay. “We believe that the current actions of the United States and their contractors at the Southern border do not represent an ethical business partnership Wayfair should choose to be a part of,” the employees’ letter states. “We believe that by selling these (or any) products to BCFS or similar contractors we are enabling [a child rights] violation and are complicit in furthering the inhumane actions of our government.” In the letter, employees asked that the company stop future business with BCFS and other contractors and enact a code of ethics for business-to-business sales. A representative for BCFS tells TIME in a statement: “We believe youth should sleep in beds with mattresses.” 📣Our demands, as stated in the petition:📣 1) cease all current&future business w/contractors participating in operation of migrant detention camps, 2) establish a code of ethics for B2B sales that empowers employees to act in accordance w/ Wayfair’s core values #WayfairWalkout — wayfairwalkout (@wayfairwalkout) June 25, 2019 In response, Wayfair’s executive leadership team thanked the employees in a letter for being “focused on impacting our world in meaningful and important ways.” But speaking as business leaders, the team said, “We also believe in the importance of respecting diversity of thought within our organization and our customer base. 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.” Story continues “As a retailer, 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,” said the leadership team’s letter, a copy of which was also provided to TIME. A Wayfair representative confirmed to the Boston Globe that a letter was sent in response to the workers’ concerns. Wayfair representatives did not immediately respond to TIME’s requests for comment. A Twitter account called @wayfairwalkout appeared Tuesday, announcing the planned protest for 1:30 p.m. on Wednesday, June 26, at the company’s headquarters in Boston. The Wayfair employee confirmed that workers at the company are behind the Twitter account. 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 The border has received renewed national attention in recent days after reports surfaced that more than 300 detained children at a remote Border Patrol station in Clint, Texas, were living in alarming conditions, including with inadequate food, water and access to hygiene. Attorneys monitoring how migrant children are receiving care said older children at the facility were taking care of toddlers and that some children had been detained at the facility for three weeks. While most of the children were reported to have been moved out of the facility on Monday, government officials said Tuesday that more than 100 kids were transported back to the detention center . The Wayfair employee who spoke with TIME says the recent news surrounding the treatment of detained migrant children “certainly galvanized many colleagues who wouldn’t have been involved in something like this” before. It is unclear if Wayfair has previously contracted with government agencies that provide furniture to detention facilities. Following the executive team’s response, the employees decided to plan a walkout. Workers were “disheartened” by the response from leadership, but felt energized about continuing the conversation, the Wayfair employee says. “We can all make active choices to decide whether or not we are aligning ourselves with these atrocities and these behaviors,” the employee says. “We’re in a time when small things can go a really long way, and we wanted to leverage what little power we have.” Their efforts quickly gained steam— after going public on Twitter, the @wayfairwalkout account gained nearly 11,000 followers in one day. Rep. Alexandria Ocasio-Cortez, who has called the detention centers concentration camps to loud criticism, tweeted her support of the Wayfair employees. 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 RAICES, which provides legal services to immigrants, also supported the protest efforts. We applaud @Wayfair workers who are walking out to protest Wayfair profiting from detention centers. No one who works for a company profiting from these camps should be standing idly by as children are dying. This takes a village. #WayfairWalkout https://t.co/rLElrcUsKi — RAICES (@RAICESTEXAS) June 25, 2019 |
Have Insiders Been Buying NOVA Group Holdings Limited (HKG:1360) Shares This Year?
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sellNOVA Group Holdings Limited(HKG:1360), you may well want to know whether insiders have been buying or selling.
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for NOVA Group Holdings
Wilson Lee made the biggest insider purchase in the last 12 months. That single transaction was for HK$33m worth of shares at a price of HK$4.20 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$2.04). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Wilson Lee was the only individual insider to buy over the year. Notably Wilson Lee was also the biggest seller, having sold HK$9.7m worth of shares.
Wilson Lee purchased 14.6m shares over the year. The average price per share was HK$4.22. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
There has been significantly more insider buying, than selling, at NOVA Group Holdings, over the last three months. In total, Wilson Lee bought HK$61m worth of shares in that time. But Wilson Lee sold shares worth HK$9.7m. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that NOVA Group Holdings insiders own 18% of the company, worth about HK$536m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
It's certainly positive to see the recent insider purchase. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about NOVA Group Holdings. One for the watchlist, at least!I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
But note:NOVA Group Holdings 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. |
Money 2.0 Stuff: Fork your mother if you want to fork
Here is a very simple three-period model for cryptocurrency development financing:
1.A team raises money through some kind of fundraising process
2.A team bootstraps development and relies on patronage and donations
3.A team allocates itself some percentage of the protocol’s rewards
Among the litany of cybercoins, Zcash is perhaps most well renowned for pioneering the third model, dubbed the Founder’s Reward. For the first four years of the project’s life, 20% of block rewards are distributed as follows: 3% to the Zcash Foundation, 2.8% to the Electric Coin Company, 14.2% to 44 employees, advisors, and founders.
Zcash was launched in 2016 and the Founder’s Reward is expected to expire Q4 2020.
Join Genesis nowand continue reading,Money 2.0 Stuff: Fork your mother if you want to fork! |
Global Coin Research: Top news in Asia from the weekend to today
This twice-weekly newsletter is republished with permission from Global Coin Research, a global research firm with a focus on Asia blockchain and related technologies. You can find more resources on Asia Cryptocurrency and Blockchain at GlobalCoinResearch.com and on Twitter at @globalcoinrsrch
Binance Chain gaining traction:-Blockchain ride-hailing app Tada to switch from Ethereum onto Binance chain.Source- A portion of MEET.ONE-Pegged Token will be migrating to Binance Chain, which will mark the first$EOStoken on the Finance DEX.Source
Bitmain, along with Ebang, the world’s third-largest bitcoin mining machine maker, are reportedly considering an initial public offering (IPO) in the U.S. after their Hong Kong plan flopped.Source:Bitmain,Ebang
Malaysia has launched a work visa programfor Blockchain Tech Professionals.Source
Highlights and Excerpts from Neo Global Capital’sAll-Weather Investment Strategy for Crypto.Source
Amber AI’s cheat sheetfor Algorand’s Dutch Auction.Source
Xfers, backed by 500 Startups,Golden Gate Ventures and Facebook co-founder Eduardo Saverin, will make use of Zilliqa’s recently launched smart contracts to make payments more efficient and transparent for Xfers 500,000 users.Source
StakingConis taking place in July 10th in Beijing- with Algorand, Cardano, Tezos, Dash, NEM, IRISnet, VSYS, Edgeware, AELF, MultiVAC, Near Protocol, Decred.Source
Complimentary tickets are available to KryptoSeoulforBUIDL 2019on July 22nd and 23rd, a technical and business forum held at Novotel Ambassador Gangnam. We have partnered up with the team to bring premium subscribers complimentary tickets to the conference, while supplies last.
Complimentary tickets are available for our premium subscribers to Asian Blockchain Chain in Taipeiin July 2&3, while supplies last. New speakers include Justin Sun, CZ and Arthur Hayes.
Korean exchange Bithumb announcesplans to start of EOS blockchain voting. The report says that Koreans own about 10% of EOS tokens and Bithumb owns the most out of all the Korean exchanges.Source
Wal-mart China announced the creation of a BlockchainFood Safety and Traceability Platform alongside partners VeChain, PwC, China Chain Store and Franchise Association. Wal-Mart will use VeChain’s blockchain technology to verify products along the supply chain, increasing consumer trust.Source
IRISnet, a Chinese based project and also a hub built on Tendermint, announced a One-year Token Burning Plan.Source
Chinese blockchain game developer launchescloud-based integrated development environment (IDE) tool to access the Libra Move language, supposedly reducing compiling time from 1 hour to 3 minutes.Source
Bitcoin Arbitrage Scams Run Rampantin China with Over 15,000 ETH Swindled in “Huobi Arbitrage Scam”.Source
China says will not allow Hong Kong issueto be discussed at G20 summit.Source
The Japanese community'sview on Libra.Source
Global Coin Research founder Joyce Yanggave a talk about how to think about go-to-market in Asia, and shared some insight and resources to help folks see the opportunities and happenings in Asia.Source
Korea regulators announce that if Korean virtual currency exchangesfail to comply with the FATF virtual currency regulatory guidelines, their business license will be canceled. The bill is under review and is expected to be implemented in the second half of next year.Source
Russian Central Bank official:Fraudsters ‘very rarely’ use crypto to withdraw stolen funds.Source
Hong Kong cryptocurrency exchanges and custodiansare seeking out insurance to cover the risks of hacking and theft, in an effort to comply with future regulation by the city’s securities watchdog to provide full protection for client assets.Source |
Huawei Gets New Pressure From Congress as Trump Prepares to Meet Xi
(Bloomberg) -- U.S. pressure on Huawei Technologies Co. increased as senators voted to cite the Chinese telecommunications gear maker as a security risk ahead of this week’s meeting between President Donald Trump and Chinese President Xi Jinping. The Senate Foreign Relations Committee, on a voice vote, passed a resolution Tuesday designating Huawei and fellow Chinese equipment maker ZTE Corp. as a threat to the national security of the U.S. and its allies. The measure, which moves on for further votes, called for more pressure for allies to shun the companies’ network equipment. “Huawei and ZTE telecommunications products are not safe for the U.S. or any of our allies around the globe,” said resolution sponsor Cory Gardner, a Colorado Republican and member of the Foreign Relations panel. “It is my hope all of our allies in Europe and around the globe hear us loud and clear.” Germany and other countries “against the strong advice of the United States” have indicated they may let Huawei build out advanced 5G wireless networks, according to the resolution. Germany has resisted U.S. attempts to persuade it to blackball Huawei and instead plans stringent testing and oversight for all vendors. ‘Necessary Measures’ The Senate resolution said the U.S. “will consider all necessary measures” to limit risks of the U.S. government or military using networks “compromised” by Huawei or ZTE gear. Secretary of State Mike Pompeo has said use of the Chinese manufacturers could jeopardize intelligence-sharing arrangements. U.S. officials say Chinese communications equipment might be used for spying. Huawei has vigorously denied such allegations, and ZTE provided security guarantees last year after Trump lifted penalties imposed over accusations of sanctions violations. Trump has said Huawei could be part of discussions with Xi at the G-20 summit that begins in Osaka on June 28. The countries are embroiled in a trade dispute, and Trump in a June 18 tweet said there will be an “extended meeting” without offering details. Story continues Legislators have called for a firm hand. Senate Minority Leader Chuck Schumer earlier said Trump “needs to make it crystal clear to China that the United States takes this threat seriously and not use our national security as a bargaining chip.” Senators Marco Rubio and Mark Warner -- both members of the Intelligence Committee -- this month sent a letter to Pompeo and U.S. Trade Representative Robert Lighthizer, warning them against using Huawei as a bargaining chip. The Commerce Department last month put Huawei and more than 60 of its subsidiaries on its entity list, meaning American companies have to obtain a special license to sell components to the Shenzhen-based company -- and requests for such licenses are seldom approved. Trump has also signed an executive order restricting Huawei’s presence in U.S. networks. To contact the reporters on this story: Todd Shields in Washington at tshields3@bloomberg.net;Daniel Flatley in Washington at dflatley1@bloomberg.net To contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, Elizabeth Wasserman, Laurie Asséo For more articles like this, please visit us at bloomberg.com ©2019 Bloomberg L.P. |
Need To Know: NOVA Group Holdings Limited (HKG:1360) Insiders Have Been Buying Shares
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sellNOVA Group Holdings Limited(HKG:1360), you may well want to know whether insiders have been buying or selling.
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for NOVA Group Holdings
Over the last year, we can see that the biggest insider purchase was by Wilson Lee for HK$33m worth of shares, at about HK$4.20 per share. That means that an insider was happy to buy shares at above the current price of HK$2.04. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Wilson Lee was the only individual insider to buy over the year. Notably Wilson Lee was also the biggest seller, having sold HK$9.7m worth of shares.
Wilson Lee bought 14.6m shares over the last 12 months at an average price of HK$4.22. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
There has been significantly more insider buying, than selling, at NOVA Group Holdings, over the last three months. Wilson Lee spent HK$61m on stock. On the other hand, Wilson Lee netted HK$9.7m by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
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. It appears that NOVA Group Holdings insiders own 18% of the company, worth about HK$536m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about NOVA Group Holdings. Nice! Along with insider transactions, I recommend checking if NOVA Group Holdings is growing revenue. This free chart ofhistoric revenue and earnings should make that easy.
But note:NOVA Group Holdings 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. |
Facebook's Libra cryptocurrency faces questions from international regulators
Photograph: Dado Ruvić/Reuters Facebook’s Libra cryptocurrency is facing increasing skepticism from international regulators days after ambitious plans for it were unveiled by the social media company. On Tuesday, Randal Quarles, chair of the Financial Stability Board (FSB), a policy coordinator for G20 countries, said Facebook’s plan to expand into retail payments could lead regulators to take a closer look at such financial instruments . Quarles’s comments mark the first time a senior US regulator has spoken of how they might approach Libra, which aims to transform the global payments markets. Related: Bitcoin passes $11,000 on news of Facebook's cryptocurrency plan Quarles said that while the board did not plan to discuss the issue at this week’s G20 summit in Japan and “crypto-assets” like Libra did not currently pose a risk to global financial stability, he envisioned gaps where they fall outside the remit of regulators and the oversight of international standards. “A wider use of new types of crypto-assets for retail payment purposes would warrant close scrutiny by authorities to ensure that they are subject to high standards of regulation,” Quarles said in a letter released ahead of the summit and first reported by Reuters . Quarles added: “The FSB and standard setting bodies will monitor risks very closely and in a coordinated fashion, and consider additional multilateral responses as needed.” The remarks follow an agreement in March 2018 by G20 finance ministers and central bankers to monitor crypto-assets. The FSB has said if Libra takes off, a different regulatory response will be needed. Quarles’s remarks follow a statement from the Bank for International Settlements on Sunday that politicians need to move rapidly to coordinate regulatory responses to any new risks. The FSB’s interjection over Facebook’s Libra, which is backed by more than 20 international institutions including Visa, Mastercard, PayPal and Uber and could launch as soon as next year, come as the UK’s Financial Conduct Authority said it would not allow the social media company to use the digital currency without close scrutiny. Story continues Andrew Bailey, the head of the UK’s FCA, confirmed on Tuesday that the organization was working with the UK Treasury and the Bank of England to monitor Facebook’s plans. “We will have to engage domestically and internationally, with Facebook and this other [Libra] organisation. They are not going to walk through authorisation without that,” Mr Bailey told a Treasury select committee. The FSB and the FCA have joined Mark Carney, governor of the Bank of England, in alerting Facebook that if its plan to attract users to a new currency are successful “it would instantly become systemic and will have to be subject to the highest standards of regulation”. The European Union’s head of financial stability, Olivier Guersent, said ahead of Libra’s unveiling that Facebook’s potential concentration of both personal and financial data needed attention from regulators. |
Sentencing Delayed For Truckers Accused Of Illegally Hauling Hemp
The sentencing date fortwo truckers accused of illegally transporting hempin Idaho has been delayed until September 17. It was originally scheduled for today, June 25.
The decision to continue the hearing was a joint agreement between the office of the Ada County Prosecutor and the two attorneys for the truckers.
"The parties were concerned these cases would be viewed as precedent setting," saidMichael Bartlett,a lawyer for Erich Eisenhart, one of the truck drivers. "We were trying to get it right and for that we needed additional time."
Eisenhart and Andrew D'Addario have been charged with possession of marijuana with intent to deliver, a charge that carries a sentence of up to five years in prison, or a $15,000 fine.
The two men were transporting hemp plants from one licensed industrial hemp farm in Colorado to another farm in Oregon when they were arrested by Idaho State Police on April 12, 2018.
The state of Idaho does not distinguish between hemp and marijuana. Both are illegal under Idaho law, a state of affairs defense attorneys and an army of supporters maintain is not consistent with the science and policy developments related to hemp, which was legalized at the federal level last year.
"My client was transporting a non-intoxicant," said Bartlett. "And there is a chasm between someone illegally transporting a drug for profit and someone transporting hemp. I believe the state is aware of that and is trying to treat these young men fairly."
The Prosecutor's office filed a document on June 24 outlining a "stipulation" to continue the hearing.
"In the absence of Idaho legislation setting forth a regulatory system that would provide a legal framework to allow the interstate transport of hemp, the Ada County Prosecutor's Office has been diligently researching and working to develop a solution to avoid the recurrence of the issue facing law enforcement, prosecutors and those seeking to transport hemp in Idaho," the document stated.
"Recognizing the above, the State and defense team are also in discussions about reaching an appropriate resolution in this case, while at the same time being mindful of finding an overall solution to this issue for Idaho."
In a separate, high profile case,Oregon trucker Denis Palamarchuk is scheduled to go to trial for illegally transporting hemp in Idaho.His court date is set for October 2019.
Image Sourced From Pixabay
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
What Voters Really Want on Health Care
The nearly two dozen Democrats running for president are debating a variety of proposals for providing universal health care in the U.S., but voters seem to have a more basic issue on their mind: how to pay less for the drugs and medical services they need.
The Washington Post’s Amy Goldsteinsaysthat although numerous surveys and polls show that health care is the top concern for voters, the primary problem they are worried about is their own personal cost, not system design or access. As a result, all the talk about large-scale proposals such as Medicare for All may be failing to connect with substantial portions of the public. For example, Bernie Sanders argues that his plan for a single-payer system would reduce health care spending at the national level by creating efficiencies, but voters aren’t as interested in the overall pattern and just want to know how his plan will lower their medical bills.
Robert J. Blendon, a health policy expert at Harvard University, told Goldstein that, unlike 2008 or 2016, the 2020 election won’t be about the dynamics of universal coverage. Instead, the election is “going to be about the price of insulin, hospital charges and insurance premiums, with, ‘What are you going to do about them for me?’”
Democratic strategists have taken note of the trend, and hope to use it against President Trump, who they say is vulnerable on the topic among white working-class voters. A recent survey by the Democratic research group American Bridge found that a majority of such voters in four battleground states gave Trump negative ratings on “reducing health care costs” and “taking on the drug and pharmaceutical companies,” Politico’s Scott Blandreports. American Bridge says it wants to weaken support for the president among some of some his most loyal followers, through a $50 million campaign focused on pocketbook issues, especially health care.
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Durable goods orders — What to know in markets Wednesday
On Wednesday, the Census Bureau will be releasing May’s durable goods orders ahead of the opening bell.
Market participants will be closely watching to see how the continued uncertainty surrounding the trade war has impacted the manufacturing sector. Durable goods orders declined for the past three consecutive months, and economists are expecting headline orders to have fallen again by 0.1% in May, up from the 2.1% drop in April, according to data compiled by Bloomberg. Durable goods excluding transportation are anticipated to have risen 0.3%.
Boeing’s woes surrounding its 737 Max jets rage on — and will likely weigh on the headline durable goods orders. “Most of the expected drop is due to cancellations of Boeing orders. Data from Boeing showed zero gross orders in May,” Credit Suisse wrote in a note Thursday. “Additionally, total net orders data suggest there were 6 cancellations, which will count as negative orders in May.”
On the corporate earnings side, General Mills (GIS) is scheduled to release results ahead of the market open, while Rite Aid (RAD) reports after the market close.
—
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter:@heidi_chung.
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit.
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McDonald’s remains brand favorite among consumers: UBS survey |
The China Finance Investment Holdings (HKG:875) Share Price Is Down 97% So Some Shareholders Are Very Salty
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Every investor on earth makes bad calls sometimes. But you have a problem if you face massive losses more than once in a while. So spare a thought for the long term shareholders ofChina Finance Investment Holdings Limited(HKG:875); the share price is down a whopping 97% in the last three years. That would be a disturbing experience. And more recent buyers are having a tough time too, with a drop of 38% in the last year. The last week also saw the share price slip down another 18%.
We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
Check out our latest analysis for China Finance Investment Holdings
Because China Finance Investment Holdings is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last three years, China Finance Investment Holdings saw its revenue grow by 7.1% per year, compound. Given it's losing money in pursuit of growth, we are not really impressed with that. But the share price crash at 67% per year does seem a bit harsh! We generally don't try to 'catch the falling knife'. Before considering a purchase, take a look at the losses the company is racking up.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic.
While the broader market lost about 4.6% in the twelve months, China Finance Investment Holdings shareholders did even worse, losing 38%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, longer term shareholders are suffering worse, given the loss of 47% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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. |
Blackstone Group (BX) Stock Moves -0.47%: What You Should Know
In the latest trading session, Blackstone Group (BX) closed at $44.19, marking a -0.47% move from the previous day. This change was narrower than the S&P 500's 0.95% loss on the day. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 1.51%.
Coming into today, shares of the investment manager had gained 9.23% in the past month. In that same time, the Finance sector gained 2.3%, while the S&P 500 gained 4.32%.
Investors will be hoping for strength from BX as it approaches its next earnings release. On that day, BX is projected to report earnings of $0.60 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.44 billion, down 26.8% from the year-ago period.
BX's full-year Zacks Consensus Estimates are calling for earnings of $2.36 per share and revenue of $5.89 billion. These results would represent year-over-year changes of +4.42% and -1.44%, respectively.
It is also important to note the recent changes to analyst estimates for BX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. BX is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, BX currently has a Forward P/E ratio of 18.84. Its industry sports an average Forward P/E of 12.18, so we one might conclude that BX is trading at a premium comparatively.
It is also worth noting that BX currently has a PEG ratio of 0.96. 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 Financial - Investment Management industry currently had an average PEG ratio of 1.83 as of yesterday's close.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Click to get this free reportThe Blackstone Group L.P. (BX) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
‘The Office’ to Leave Netflix After 2020, as NBCUniversal Announces Exclusive Streaming Rights
“ The Office ” is leaving Netflix , officially, after 2020. Starting in 2021, the only destination to watch online will be via NBCUniversal’s yet unnamed streaming platform. NBCUniversal made the announcement Tuesday afternoon, confirming the long-feared yet largely inevitable result. As more and more streaming services are announced, and more and more profits stem from demand for popular, pre-existing properties (along with new, must-watch originals), it was only a matter of time before “The Office” moved to its producers’ streaming home. Related stories Netflix's 'The Office' Loss Proves Original Content Is Key For Streamers Netflix Picks Release Date for Obamas' First Oscar Contender, 'American Factory' -- Exclusive “‘The Office’ has become a staple of pop-culture and is a rare gem whose relevance continues to grow at a time when fans have more entertainment choices than ever before,” Bonnie Hammer, chairman of NBCUniversal direct-to-consumer and digital enterprises, said in statement to Variety . “We can’t wait to welcome the gang from Dunder Mifflin to NBCUniversal’s new streaming service.” Netflix has been preparing for this eventuality. The streaming giant with more than 148 million worldwide subscribers has been ramping up original content in recent years in the hopes of establishing its own stable of must-see TV. A few originals have appeared to make a dent in that regard, including “Stranger Things,” “Ozark,” and “The Crown,” but many of their popular shows have a limited lifespan or are already ending — series like “Orange Is the New Black,” “Making a Murderer,” “13 Reasons Why,” and the Marvel series are all ending or already on the outs. Netflix also confirmed “The Office’s” departure with a tweet of its own, pointing out that the series will still be available “ad free” until 2021. We’re sad that NBC has decided to take The Office back for its own streaming platform — but members can binge watch the show to their hearts’ content ad-free on Netflix until January 2021 — Netflix US (@netflix) June 25, 2019 Still, NBCU stood to make quite a lot of money if they continued to license “The Office” to Netflix. “Friends,” another popular series licensed to Netflix from Warner Bros., saw its deal extended to the tune of $100 million back in 2018, extending the series’ run on Netflix through the end of this year. Most expect WarnerMedia to maintain exclusive rights following 2019, however, meaning Netflix will lose two of its big ticket comedies in the span of two years. Story continues Those considering adding NBCU’s streaming service will be doing so well after they’re asked to purchase plenty more content hubs. In addition to Netflix, Hulu, and Amazon (among other existing streamers), Disney+ is set to launch in November 2019, Apple TV+ will debut in Fall 2019, and WarnerMedia’s streaming service is set to launch in the fourth quarter of 2019, as well. NBCU’s service will hit in 2020, featuring pre-existing NBCU properties (expect for “The Good Place” to make the move off Netflix, as well), in addition to new original programming. Little else is known about NBCU’s offering, though it will be ad-supported to some degree, meaning you might be going back to watching “The Office” with commercials. All seasons of “The Office” are available to stream on Netflix, for now. Sign up for Indiewire's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . View comments |
Asian Stocks Lower as Fed Officials Curb Rate Cut Bets
Investing.com - Asian stocks traded mostly lower on Wednesday in Asia after comments by U.S. Federal Reserve officials curbed expectations for aggressive rate cuts this year. China’s Shanghai Composite and the Shenzhen Component both dropped 0.1% by 10:30 PM ET (02:30 GMT). Hong Kong’s Hang Seng Index inched up 0.2%. Expectations for a half percentage point cut at the Fed’s July meeting receded after St. Louis Fed President James Bullard said Tuesday that such a move "would be overdone". Separately, Fed Chairman Jerome Powell said the central bank is "insulated from short-term political pressures," pushing back against U.S. President Donald Trump's demands for a significant rate cut. The comments tempered expectations for aggressive easing, but investors are still expecting at a quarter percentage point cut next month. Japan’s Nikkei declined 0.3%. South Korea’s KOSPI fell 0.1%, while down under, Australia’s ASX 200 fell 0.1%. Traders continue to focus on developments on the Sino-U.S. trade front, ahead of the upcoming G-20 summit this weekend. The U.S. is willing to delay the next round of tariffs on an additional $300 billion of Chinese goods, CNBC reported citing people familiar with the matter. The decision might be announced next week after the G-20 summit is concluded, the sources said, adding that no trade deal is expected when Trump and Chinese leader Xi Jinping meet at the summit in Japan. Related Articles China's Alibaba aims to double Tmall brands with English portal Fed's Powell resists pressure for hefty rate cut, sends global stocks down Japan watchdog to recommend $24 million fine for Nissan over Ghosn pay: source View comments |
SHAREHOLDER NOTICE: Brodsky & Smith, LLC Announces an Investigation of Caesars Entertainment Corp. - CZR
BALA CYNWYD, PA / ACCESSWIRE / June 25, 2019 /Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Caesars Entertainment Corp. ("Caesars" or "the Company") (CZR) for possible breaches of fiduciary duty and other violations of federal and state law in connection with the sale of the Company to Eldorado Resorts, Inc. ("Eldorado").
Click here to learn morehttp://www.brodskysmith.com/cases/caesars-entertainment-corp-nasdaq-czr/, or call: 877-534-2590. There is no cost or obligation to you.
Under the terms of the transaction, Caesars shareholders will receive only $8.40 in cash and 0.0899 of a share of Eldorado stock for each share of Caesars stock they own. The transaction values Caesars stock at only approximately $12.75 per share. The investigation concerns whether the Board of Caesars breached their fiduciary duties to shareholders and whether Eldorado is underpaying for the Company. The transaction may undervalue the Company and would result in a substantial loss for many Caesars shareholders. For example, Caesars stock has traded at $16.96 per share and an analyst has set a $13.00 per share price target for the stock.
If you own shares of Caesars stock and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire, or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 510, Bala Cynwyd, PA 19004, by visitinghttp://www.brodskysmith.com/cases/caesars-entertainment-corp-nasdaq-czr/, or calling toll free 877-LEGAL-90.
Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.
SOURCE:Brodsky & Smith, LLC
View source version on accesswire.com:https://www.accesswire.com/549879/SHAREHOLDER-NOTICE-Brodsky-Smith-LLC-Announces-an-Investigation-of-Caesars-Entertainment-Corp--CZR |
Netflix loses 'The Office' after 2020 to NBCUniversal's service
Wondering what the most watched show on subscription streaming is? According to NBC it'sThe Office, and as such, it's no surprise that once the company'sagreement with Netflixexpires at the end of 2020,it's keeping the show for its own streaming service. The ad-supported NBCUniversal package is launching in 2020, but it won't have the show's nine seasons until 2021.
It's following a trend we've seen fromAT&TandDisney, as they try to capitalize on back catalogs to launch new streaming competitors. Of course, for viewers it means they won't be able to see popular shows all in one place, and it's unclear how this will impact international distribution. In response, Netflixtweetedthat at least members can binge watch "ad-free" until January 2021. |
Women's World Cup: USWNT co-captain Megan Rapinoe shuts down White House visit
An earlier version of this story incorrectly reported that Megan Rapinoe made her comment recently. The video in question was actually recorded in January, per the outlet . United States women’s national team star Megan Rapinoe made it clear last month that she won’t be visiting the White House if the United States women’s national team wins the Women’s World Cup. Now, an even more blunt answer has surfaced from the USWNT co-captain via months-old video released today by Eight by Eight magazine. “I’m not going to the f---ing White House,” Rapinoe said. “No, I’m not going to the White House. We’re not going to be invited. I doubt it.” Rapinoe had been asked if she was looking forward to making the trip, which was met with an audible scoff. Megan Rapinoe (center) and her teammates are standing for the national anthem during the 2019 FIFA Women's World Cup France group F match between USA and Chile. (Getty Images) That emphatic answer backs up what Rapinoe said before the tournament, that she would “absolutely not” attend a White House celebration in the event of a World Cup win. Fellow USWNT star Alex Morgan also said she would not attend. Rapinoe, who drew a public condemnation from President Donald Trump for not putting her hand on her heart during the national anthem before a game, has made no attempt to hide her scorn for the Trump administration. From an interview with Yahoo Sports earlier this month : She is at ease, however, in her role as USWNT co-captain. She is "a walking protest when it comes to the Trump administration," she says, because of "everything I stand for." "I feel like it's kind of defiance in and of itself to just be who I am and wear the jersey, and represent it," she continues. "Because I'm as talented as I am, I get to be here, you don't get to tell me if I can be here or not. So it's kind of a good ‘F you' to any sort of inequality or bad sentiments that the [Trump] administration might have towards people who don't look exactly like him. Which, God help us if we all looked like him. Scary. Really scary. Ahh, disturbing." As Rapinoe mentions in her more recent quote, the USWNT probably shouldn’t even be expecting an invitation from Trump if it wins the tournament given his past history with not inviting any champion he thinks will reject him. Story continues No NBA or WNBA champion has visited the White House during the Trump administration, and the NFL’s Philadelphia Eagles also had their invitation rescinded after it became clear most of the team’s players would be skipping the event. This year’s NBA champion Toronto Raptors seem set to continue the trend . 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 |
Is It Gold's Time To Shine?
Gold futures are trading at their highest levels in over 6 years as interest rates plummet. Gold is up roughly 12% as the US 10-year Treasury yield falls 12% in the past 30 days.
The Federal Reserve is on thin ice with every syllable Jerome Powell utters being overly scrutinized. They are now taking a flexible stance with interest rate as uncertainty in trade disputes increase. The market has taken this as a sign that the only option for the Fed in the upcoming July meeting is a rate cut. The market has completely priced in a rate cut in the benchmarked, Fed Funds rate, with a more than 1/3 chance of a 50 basis point cut.
There is also quite a bit of ambiguity surrounding the tensions building between the US and Iran. The geopolitical tension was started with US sanctions on Iran due to concerns over nuclear and other military stockpiles. The pressure has been escalated since then, with six US oil tankers and a US spy drown being attacked near the Strait of Hormuz. These attacks are being blamed on Iran and further verbal attacks have ensued between the US and Iranian Presidents.
This geopolitical tension is concerning investors and they are flocking to gold as a safe haven to protect against the uncertainty of potential war.
Not Convinced
This conviction that the trade war can go nowhere but south in the next month or so is miss placed, I speculate. Still, investors are flocking to gold as a temporary inflationary safe haven for their funds. The question that investors need to be asking themselves is, what happens if the trade disputes deescalate and a rate cut does not occur? This is going to spike US 10-year Treasury yield and sink gold prices as these “safe haven investors” move their money to more profitable securities.
Fast moves in commodities like this make me think the distorted buyer-to-seller ratio is causing this commodity to have a short-lived spike that will quickly retract once the buyers dry up.
Gold Could Still Have Further Upside
It is quite hard to say how much of this rate cut and geopolitical risk is already priced into gold and gold mining stocks. The uncertainty is clearly enough to send this commodity flying. If tensions between Iran and the US begin to escalate to a hostile level, gold will have more room to run. If the trade tariffs are escalated further and the Fed does indeed cut rates the same gold runway will likely appear.
Some solid Gold stocks and ETFs to keep an eye as gold finds its equilibrium include AngloGold Ashanti AU which has already seen a 48.6% jump in the past month. AU also has a strong negative beta which will help hedge your portfolio in the case of an equity market downturn. Analysts have been increasing their EPS estimates propelling this stock to a Zacks Rank #1.
A gold ETF like the SPDR Gold Trust GLD will track gold more closely because it is back by physical gold bullion. This ETF hasn’t seen the same strong returns as AU but could provide a safer gold investment.
Vaneck Vectors Gold Miners ETF GDX will give you a nice diversified portfolio of gold miners, so you don’t have to worry about systemic risks with any one firm. This ETF has seen 27.3% returns over the past month.
Take Away
The uncertainty in the trade dispute combined with the escalating tensions between the US and Iran have caused investors to flock to the gold safety net. Gold is trading at a level it hasn’t seen in over 6 years, whether or not the gold rally will continue remains to be seen. I will add that when this level was hit back in 2010 the price rallied another 25% to its high of $1773 an ounce in mid-2012. If you believe in the gold bull market, I would look to invest in one of the options I mentioned above.
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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 reportSPDR Gold Shares (GLD): ETF Research ReportsVanEck Vectors Gold Miners ETF (GDX): ETF Research ReportsAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Five Strong Buy Stocks Ignoring the Selloff
Carnage today in the market as stocks came under pressure early and never relented. Over the last several weeks, most of the overnight moves were faded. Meaning, if the futures sold off overnight, buyers of the dip would be rewarded. On the flip side, fading the overnight move higher often lead to profits. Throw that out of the window today as the sellers took control, giving us an old-school bloodbath made worse by Fed talk.
Check out Dave’s Daily Dive video above where I break down the market action today!!!
Each day I, Dave Bartosiak of Zacks.com (Twitter @bartosiastics) dive into the charts, pointing out key price action and levels for you to watch.
But it doesn’t stop there because the highlight of today’s video, which you can see for free by clicking above, is where I uncover five Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks that are breaking out despite the rough market. These stocks have a ton of momentum behind them and are charging higher. The list of stocks I cover today include:
AngloGold AU
AngloGold Ashanti Limited operates as a gold mining company. It also produces silver, uranium, and sulphuric acid; and dóre bars. The company operates 14 mines and 3 projects in 10 countries in South Africa, Continental Africa, the Americas, and Australasia. AngloGold Ashanti Limited was incorporated in 1944 and is headquartered in Johannesburg, South Africa.
The Estee Lauder Companies EL
The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. The company offers a range of skin care products, such as moisturizers, serums, cleansers, toners, body care products, exfoliators, acne care products, facial masks, cleansing devices, and sun care products; and makeup products, including lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes, and powders, as well as related items, including compacts, brushes, and other makeup tools.
Hallmark Financial Services HALL
Hallmark Financial Services, Inc., through its subsidiaries, underwrites, markets, distributes, and services property/casualty insurance products to businesses and individuals in the United States. The company operates in the Specialty Commercial, Standard Commercial, and Personal segments. The Specialty Commercial segment markets, underwrites, finances, and services commercial lines of insurance products, including commercial automobile, general liability, commercial property, commercial excess liability, and commercial umbrella insurance products.
LVMH-Moet Hennessy Louis Vuitton LVMUY
LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury products company. The company operates through Wines and Spirits; Fashion and Leather Goods; Perfumes and Cosmetics; Watches and Jewelry; Selective Retailing; and Other Activities business groups.
The Boston Beer Company SAM
The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, and hard seltzers under the Samuel Adams, Twisted Tea, Angry Orchard Hard Cider, and Truly Hard Seltzer brand names.
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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 reportThe Boston Beer Company, Inc. (SAM) : Free Stock Analysis ReportThe Estee Lauder Companies Inc. (EL) : Free Stock Analysis ReportHallmark Financial Services, Inc. (HALL) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportLVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is Now The Time To Look At Buying Lenovo Group Limited (HKG:992)?
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Lenovo Group Limited (HKG:992), which is in the tech business, and is based in Hong Kong, saw significant share price movement during recent months on the SEHK, rising to highs of HK$7.49 and falling to the lows of HK$5.36. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Lenovo Group's current trading price of HK$5.79 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Lenovo Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Lenovo Group
According to my relative valuation model, the stock seems to be currently fairly priced. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Lenovo Group’s ratio of 14.79x is trading slightly above its industry peers’ ratio of 12.53x, which means if you buy Lenovo Group today, you’d be paying a relatively reasonable price for it. And if you believe Lenovo Group should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Lenovo Group’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 83% over the next couple of years, the future seems bright for Lenovo Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder?992’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at 992? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor?If you’ve been keeping an eye on 992, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic forecast is encouraging for 992, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Lenovo Group. You can find everything you need to know about Lenovo Group inthe latest infographic research report. If you are no longer interested in Lenovo Group, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Minnesota appeals court orders hearing on PolyMet permit
MINNEAPOLIS (AP) — A district court must determine if state environmental regulators improperly sought to suppress a federal agency's serious concerns about the pollution risks arising from a proposed copper-nickel mine in northern Minnesota, the state Court of Appeals ruled Tuesday. The St. Paul-based Ramsey County District Court must hold a hearing "as soon as practicable" on the Minnesota Pollution Control Agency's dealings with the U.S. Environmental Protection Agency in the issuance of a major water permit for the PolyMet mine. It must report back with findings of fact, the appeals court said. The allegations stem from a leaked email sent by a top official at the Minnesota agency to her counterparts at the EPA asking them not to file their written comments about the permit during the state agency's public comment period on PolyMet's application. Opponents of the PolyMet project say the state agency's request kept the EPA officials' criticisms of the permit off the public record. The email was leaked last week by the union that represents EPA career staffers. The email and EPA documents released this month after a Freedom of Information Act challenge show that instead of filing comments in writing, EPA officials read them to MPCA officials over the phone. The environmental group WaterLegacy had sought the documents for close to a year and is using them in its appeal of the MPCA's decision to grant the water permit in December. "We conclude that WL has provided substantial evidence of procedural irregularities not shown in the administrative record, and thus that it is appropriate to transfer this matter to district court for a hearing and determination of the alleged irregularities," the order said. WaterLegacy attorney Paula Maccabee pointed out that the district court has the power to issue subpoenas, place people under oath and allow lawyers to question witnesses. "What this means is the courts are making sure that the permitting process has integrity," Maccabee said. "And there will be an opportunity for the district court to find out the truth, and make sure the public knows the truth, and make sure that Minnesota doesn't issue PolyMet a weak permit that fails to protect the environment and human health." An MPCA spokesman did not immediately return a message seeking comment on the order. The agency has previously defended its permitting process as rigorous and said that it made "substantive changes" to the draft permit in response to EPA officials' concerns. EPA spokesman Michael Abboud concurred earlier this month, saying "the permit was changed to reflect many of EPA's recommendations" following discussions between the two agencies. Story continues WaterLegacy obtained the EPA documents after going to court to get them. Maccabee said she and other lawyers involved in the case, who represent the Fond du Lac Band of Lake Superior Chippewa, are expected to ask Gov. Tim Walz and MPCA Commissioner Laura Bishop to put PolyMet's water permit on hold pending the court's findings. PolyMet spokesman Bruce Richardson said the company views Tuesday's order as procedural to make sure that the record is clear before the Court of Appeals addresses broader challenges to the permit. "Because the permit meets all the requirements of the law, we believe the permit, as issued, will be upheld," he said. The EPA's inspector general's office said earlier this month that it had opened an investigation into whether agency officials properly followed the appropriate regulations during the permit review process. Minnesota's nonpartisan legislative auditor will also investigate. Rep. Rick Hansen, who chairs the Legislative Audit Commission and a House environment committee, said in a statement Monday that the auditor's review would start immediately. The South St. Paul Democrat said the allegations require "an independent, nonpartisan, third-party investigation." PolyMet is now working to raise around $950 million in construction financing. CEO Jon Cherry told the Star Tribune for an interview published Tuesday that he's confident the planed mine near Babbitt and processing plant near Hoyt Lakes will move forward despite concerns over the permit. PolyMet hopes to begin major construction next year with an eye toward becoming operational in 2023. "It's going to happen," Cherry said. "It is so rare to get a fully permitted mine at this time in the United States." Switzerland-based global mining giant Glencore AG holds a 29% stake in PolyMet, but Cherry said its final share may grow depending on how the financing is structured. View comments |
FedEx Partners With Dollar General for Package Pickup and Drop-Off
FedEx(NYSE: FDX)knows where consumers are shopping, and it wants to be there for them. This summer, the package carrier will add pickup and drop-off service at 1,500Dollar General(NYSE: DG)stores, and plans to expand it to 8,000 stores by 2020, meaning 90% of the country's population will live within five miles of a FedEx access point.
The carrier is making a concerted effort to become more tightly enmeshed in e-commerce. By severing its ties withAmazon.com(NASDAQ: AMZN)for its Express delivery service, launching seven-days-a-week delivery, and lowering Express delivery fees, it's putting itself in one of the largest retail footprints in the country and vastly expanding its reach.
Image source: FedEx.
With almost 15,600 stores stretched across 44 states, Dollar General has an expansive footprint. It opened 900 stores last year and another 240 in the first quarter, and plans to open a total of 975 new stores in 2019.
That's a much more impressive touchpoint for FedEx than Amazon has withKohl's(NYSE: KSS), where the department store chainserves as a return centerfor packages purchased on the e-commerce giant's website. Because Kohl's operates around 1,100 stores nationwide, many of which are located in strip malls in urban centers in the Midwest, it's a much more limited network of locations.
Dollar General also targets low-income neighborhoods and rural towns that are traditionally overlooked by big-box merchandisers and national retailer. Its customer demographic includes people typically making less than $35,000 a year and living in towns with fewer than 20,000 people. In fact, three-quarters of the country's population lives within a five-mile drive of one.
This focus helps explain why the dollar storeenjoys sales and earningsthat regularly exceed expectations and why it's a smart partner for FedEx.
The carrier notes that regardless of where they live, consumers want convenient options for package delivery and returns. While a physical store isn't a necessity for an e-commerce operation, by adding thousands of Dollar General locations, it helps retailers provide more options to better serve their customers. And with a third of people returning what they buy online, being able to drop it off at the local dollar store improves upon the convenience.
On the company's blog announcing the partnership, FedEx noted, "When it comes time for returns, 47 percent of customers prefer to make them in-store. With the addition of more than 8,000 Dollar General stores... online merchants can enjoy the perks of a physical store without having to invest in building one."
The partnership also seems to be part of a plan FedEx is developing to counteract the growing threat of Amazon. Although it insistsdropping Express deliveriesfor the online retailer had nothing to do with Amazon building its own delivery service that may one day challenge FedEx andUPS, by doing so it opens up more delivery capacity for other e-commerce players.
FedEx seems to be rolling out the red carpet to online retailers that are also worried about Amazon and making drop-off points for purchases available to communities that otherwise might not have them reinforces how the carrier is focusing on their needs.
Adding Dollar General's 8,000 stores brings to over 62,000 the number of retail locations that can be used as pickup and return centers. FedEx has also said it will be putting 500 offices inside ofWalmart, andWalgreensandKrogerare also participating retailers with FedEx access points.
Yet it's the dollar store network that vastly expands the program's reach as previously just 55% of the U.S. population was within five miles of a FedEx center, so these stores are going into places that were especially underserved by the carrier.
The partnership is also good business for Dollar General as it has the chance to bring in a more diverse customer, who may also stay and shop at its stores, particularly as it adds more fresh food and produce.
Where Kohl's is dealing only with Amazon purchases -- admittedly Amazon dominates the online marketplace -- Dollar General and FedEx have a much broader universe of retailers to profit from -- basically everyone not named Amazon.
Coupled with its new year-round delivery schedule that will reach most of the U.S. beginning in 2020, FedEx may become a more competitive carrier for online retailers seeking closer ties to their customers.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Rich Dupreyhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and FedEx. The Motley Fool has adisclosure policy. |
Should You Take Comfort From Insider Transactions At China Beststudy Education Group (HKG:3978)?
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inChina Beststudy Education Group(HKG:3978).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for China Beststudy Education Group
Senior VP & Executive Director Gui Zhou made the biggest insider purchase in the last 12 months. That single transaction was for HK$697k worth of shares at a price of HK$2.53 each. That means that even when the share price was higher than HK$2.40 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 905k shares worth HK$2.3m. While China Beststudy Education Group insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
China Beststudy Education Group is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Over the last quarter, China Beststudy Education Group insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CN¥2.3m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. China Beststudy Education Group insiders own 68% of the company, currently worth about HK$1.4b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Beststudy Education Group. Looks promising! 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:China Beststudy Education Group 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. |
Why I Like Futong Technology Development Holdings Limited (HKG:465)
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Futong Technology Development Holdings Limited ( HKG:465 ) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 465, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Futong Technology Development Holdings here . Flawless balance sheet and good value 465's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that 465 manages its cash and cost levels well, which is a crucial insight into the health of the company. 465's has produced operating cash levels of 16.14x total debt over the past year, which implies that 465's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. 465's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 465's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the tech industry, 465 is also trading below its peers, relative to earnings generated. This bolsters the proposition that 465's price is currently discounted. SEHK:465 Price Estimation Relative to Market, June 25th 2019 Next Steps: For Futong Technology Development Holdings, there are three relevant factors you should further research: Future Outlook : What are well-informed industry analysts predicting for 465’s future growth? Take a look at our free research report of analyst consensus for 465’s outlook. Historical Performance : What has 465's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 465? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Old Navy Launches Purple 4th Inclusion-and-Unity Campaign
Old Navy is trending purple.
Although the color isn’t associated with American patriotism, the fashion retailer, starting today, is leaning into the hue for the Fourth of July as a sign of unity—a blend of Old Glory’s red, white, and blue.
The company has created a digital Purple 4thpop-up shop“with all the purple items Americans need to celebrate belonging,” according to the company. (Purple flag t-shirts are already almost sold out—only 1,994 were made, in honor of Old Navy’s 1994 founding byGapInc.) To further celebrate, its navy logo on social media, and on its Times Square store, is now purple.
Purple 4th, launchedduring Pride Month, is part of Old Navy’s 25-year anniversary celebration, called 25 Days of Belonging, to include social media conversations, such as Love is Love (for Pride), Size YES! (size-inclusive styles), and International Women’s Day (honoring the brand’s almost 80% female employees).
Although not specified by the company’s campaign, its Purple 4th message ofunity and inclusion comes at a particularly divisive political timein the U.S.
“Businesses have an opportunity, and a responsibility, to be a force for good,” an Old Navy spokesperson said. “Our decision to celebrate Old Navy’s 25th birthday with purple is illustrative of what can happen when the flag’s emblematic colors of red, white, and blue come together. It’s not about taking sides, it’s about leaning across the aisle—finding a place of understanding and respect that exists in the middle.”
Additionally, Old Navy is donating $25,000 to Open to All, of which it’s a founding member,along with parent company Gap Inc., and its Banana Republic.Started in 2018, the anti-discrimination group of businesses, as well as nonprofits, labor, community, and religious entities, furthers the understanding that companies and services “maintain a welcoming and safe environment for all people—including employees, visitors, customers, vendors, and clients.” To this end, Open to All members have signed a pledge.
Open to All started in the wake of theMasterpiece Cakeshop v. Colorado Civil Rights Commission.In that case, the U.S. Supreme Court, on the basis of freedom of religion, ruled a Colorado baker was within his constitutional rights for refusing to make a cake for a gay couple. This occurred before same-sex marriage was recognized in the state.
“We know that regardless of laws, the experiences of people of color, people of minority faiths, people with disabilities, immigrants, speakers of languages other than English, the LGBT community, and others don’t always reflect those values,” according to Calla Rongerude, campaign manager at Open to All. “The Open to All pledge is less about following a law—in the case of women, LGBT people, and immigrants, there is no federal law ensuring fair treatment in places of public accommodation—and more about creating a culture of inclusion and fairness.”
Although businesses in the U.S. aren’t legally allowed to discriminate against shoppers, there have been incidents of alleged racial profiling and LGBT discrimination over the past few years, including at Old Navy stores.
In 2018, Old Navyfired three employeesat a West Des Moines, Iowa store, after a video went viral on the internet in which workers were shown accusing a customer of stealing a jacket. Just last week, the company apologized to aCanadian customerwho asked to see proof of purchase for the shirt she was wearing, which still had tags on it.
In April, Grammy-nominated singer-songwriter SZA took Sephora to task on social media after a sales associate called security about her. Shetweeted, “Lmao Sandy Sephora location 614 Calabasas called security to make sure I wasn’t stealing . We had a long talk. U have a blessed day Sandy.” On June 5,Sephora closedall of its U.S. stores for one hourfor a diversity workshop.
While promoting diversity and inclusionis the right thing to do, for businesses it can also pay off. In March, an Accenture report found 29% of shoppers would switch to a brand committed to inclusion and diversity, and that number goes up among shoppers from marginalized communities. Forty-two percent of non-white shoppers would switch to a retailer committed to inclusion and diversity, and 41% of LGBTQ shoppers would do the same.
The data represents the shift from “customer-as-buyer,” said Jill Standish, senior managing director and head of retail at Accenture.
“We are moving from a retail industry whereby the consumer is hyper-focused on convenience to one that may be hyper-focused on social issues such as [diversity and inclusion] and climate change. We also are living in a time where tech and social media is ubiquitous and issues spread like wildfire/go viral within hours and can create a movement,” Standish said.
Internet-savvy millennial and Gen Z consumers recognize the connection between social issues and shopping, Standish said. “They are most certainly shopping with their values, which is a trend we expect to get stronger,” she explains. “U.S. companies that stand for something bigger than what they sell, tune into customers’ beliefs, and take decisive action on social issues, aremore likely to recast their customer relationshipsand connect with consumers on a deeper level.”
—Women’s World Cupendorsements in the wings
—Big Gay Ice Creamgrowing from coast to coast
—Taco Bell’s newest limited-editionmenu item: a hotel room
—GameStop wants to bethe ‘local church’ of gaming
—Trump’sChina tariffs threaten U.S. BridalGown Industry
—Listen to our new audio briefing,Fortune500 Daily
GetFortune’s RaceAhead newsletterfor sharp insights on corporate culture and diversity |
Merck, Coca-Cola and other top CEOs join NYSE’s new council to advance corporate diversity
The New York Stock Exchange is taking a big step to advance diversity on corporate boards.
On Tuesday, NYSE parent company Intercontinental Exchange (ICE) launched the NYSE Board Advisory Council, which will hold a series of live networking events to connect prospective board candidates with NYSE-listed companies.
The council has 15 founding members, including Merck (MRK) CEO Kenneth C. Frazier, Coca-Cola (KO) CEO James Quincey, Procter & Gamble (PG) CEO David Taylor, Delta Air Lines (DAL) CEO Ed Bastian and American Water Works (AWK) CEO Susan Story, among others.
“The issue of diversity on boards to me is an issue of financial performance and the sustainability of that performance,” Story said in an interview with Yahoo Finance from the floor of the New York Stock Exchange. “If you don’t reflect your communities, if you don’t reflect your customer, I don’t think you stay in business for a long period of time, and that’s important to investors.”
The council’s first networking summit takes place on Tuesday.
“This [council] is an opportunity for us to get to know people,” Story said. “It’s exciting to see how many women and people of color [are participating].”
Duriya Farooqui, a board member of Intercontinental Exchange, who will also lead the council, said less than 5% of Fortune 500 companies are led by women, although progress has been made in increasing corporate board diversity over the past few years.
“While last year more women were added to boards than any other year in history, we still have a big distance to go,” Farooqui said.
Read the latest financial and business news from Yahoo Finance
Scott Gamm is a reporter at Yahoo Finance. Follow him on Twitter@ScottGamm.
More from Scott:
• The earnings picture for 2019 is showing more signs of deterioration
• The next rate cut is unlikely to be caused by weak growth, economist explains
• Why Trump should be worried about the stock market selloff
• What the plunging 10-year Treasury yield says about the economy and stock market
• Why one top strategist is bullish on tech even with lingering trade worries
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit. |
Does The Data Make Futong Technology Development Holdings Limited (HKG:465) An Attractive Investment?
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Attractive stocks have exceptional fundamentals. In the case of Futong Technology Development Holdings Limited (HKG:465), there's is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at thereport on Futong Technology Development Holdings here.
465's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. 465 appears to have made good use of debt, producing operating cash levels of 16.14x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. 465 is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if 465's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, 465's share price is trading below the group's average. This supports the theory that 465 is potentially underpriced.
For Futong Technology Development Holdings, there are three essential factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for 465’s future growth? Take a look at ourfree research report of analyst consensusfor 465’s outlook.
2. Historical Performance: What has 465's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of 465? 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. |
CPA's Invited to VQ Financial's CPE Seminar at South Hills Country Club
WASHINGTON, PA / ACCESSWIRE / June 25, 2019 /VQ Financial is pleased to announce a CPE seminar for CPAs to be held on the 30th of July at the South Hills Country Club located at 4305 Brownsville Rd Pittsburgh, PA. The event will be conducted jointly by John G. Harris of Harris Financial Management and Dave Herrman, the CPA of Vision Quest Financial.
The seminar will cover Partnership Buy/Sell Agreements, with the goal being to provide CPAs with some of their required CPE training-centered around a valuable topic of interest to CPA's and their clients. The seminar comes as a result of the efforts of two companies with years of experience in providing financial advice to businesses and high net worth clients. Both Mr. Harris and Mr. Herrman have a wealth of experience in their fields, and the seminar is guaranteed to be a worthwhile investment of time for all those present Find out more here:www.vq-financial.com.
David R. Herrman, CPA of VQ Financial, will be one of two people conducting the seminar. He has nearly 30 years of experience in senior business and finance roles. Mr. Herrman specializes in providing consulting services to CPAs and small business owners, focusing exclusively on increasing profitability and business value by providing access to proactive planning solutions that they otherwise would not have access to.
Before working with VQ Financial, Mr. Herrman served as Chief Financial Officer and then President and CEO of Montauk Energy Holdings, a Pittsburgh based renewable energy company. He has also held various senior financial positions at Duquesne Light Holdings and the Interstate Hotels Corporation. Mr. Herrman is a Certified Public Accountant and started his career at the public accounting firm Coopers & Lybrand after graduating from Wake Forest University in 1990.
VQ Financial boasts a collective 40+ years in senior business and financial services roles focusing on both businesses and individuals. "VQ Financial combines unique talents that provide a wide range of experiences and expertise that allows us to provide services and guidance for any situation a business owner or individual may encounter," says the company. "For businesses, we focus on profitability, growth, expense and tax mitigation, risk management, succession planning, and owner/executive benefits. For individuals, we focus on stabilization, wealth accumulation and growth, and retirement/estate planning that allows individuals to have the peace, freedom, and big impact on the lives of the people and causes we love that only true financial freedom can deliver."
VQ Financial prides itself on providing specialized, tailor-made business strategies and solutions. They provide strategies for everything from mitigation to retirement services. They work with their clients' attorneys, CPAs, and/or other advisors to contribute to a holistic and comprehensive financial picture.
In order to provide the best value to their clients, VQ Financial is part of a national team-based network of some of the country's best attorneys, CPAs, financial advisors, and professional subject matter experts. They function as a 'one-stop shop' for business owners and high net worth individuals.
John G. Harris of Harris Financial Management is a financial advisor with almost 40 years of experience in the Financial Services Industry. After graduating from Georgetown University in 1978, Harris began his career as a stockbroker, before founding and working as the editor of an international newsletter for Vanguard Investors for 20 years. In 1996, he founded Harris Financial Management, a registered investment advisor. Today, Mr. Harris' firm specializes in educating CPA firms on why and how to add proactive forward-looking business advisory services to their CPA firms and to their business owner clients. "Our primary objective is to strive to put systems, processes, and strategies in place to double a firm's Enterprise Value in four to six years," says Harris Financial Management. Find out more about Harris Financial here:http://harris-financial.com.
The representatives of the two companies will be combining their years of experience and training to hold the CPE seminar. Contact Dave Herrman of VQ Financial for more information regarding the seminar. For more information on the two companies, visit their respective websites.
###
For more information about VQ Financial, contact the company here:
VQ FinancialDave Herrman724-503-1925david.r.herrman@gmail.com100 Adios DriveSuite 1140Washington, PA 15301
SOURCE:VQ Financial
View source version on accesswire.com:https://www.accesswire.com/549910/CPAs-Invited-to-VQ-Financials-CPE-Seminar-at-South-Hills-Country-Club |
Meghan McCain slams comparisons between migrant detention centers, torture facilities
Meghan McCain spoke out against people who compare migrant detention centers to torture facilities on Tuesday’s episode of The View . “When you have a facility whose specific purpose is to torture people, that is not what’s going on,” she said. McCain’s father, Senator John McCain , survived more than five years as a prisoner of war. The co-host invoked her late father when slamming the comparison between the centers and his experience. “My father couldn't lift me above his head as a child because of his torture wounds,” McCain shared. Panelist Sunny Hostin expressed frustrations that the debate has been around what the centers are called rather than what is going on behind their gates. “I don’t care what we’re calling them. Kids are dying inside of them,” said Hostin. McCain conceded that the conditions aren’t acceptable. “It is horrific and it's a complete and total humanitarian crisis, and we don't have the infrastructure to deal with it,” said McCain. The outspoken conservative also took issue with Alexandria Ocasio-Cortez’s recent labeling of the facilities as a “concentration camp.” McCain said, “I think hyperbole when you’re saying this is a ‘concentration camp’ and ‘this is a torture center,’ it’s when you get people to stop paying attention.” Co-host Joy Behar disagreed. “I believe that A.O.C. calling it a ‘concentration camp,’ in a very strange way, has put the focus on the situation,” said Behar. Many viewers on Twitter disagreed with McCain’s objection to calling the centers “torture facilities,” and insisted that what’s going on inside of them does qualify as “torture.” @MeghanMcCain The torture your father lived through is IN WARTIME! Incomparable to anything else. That being said, these little children did not sign up for this and it is torture! Just like your father, they will be damaged for the rest of their lives! @TheView — SmartyPants (@goldendebbie) June 25, 2019 Others felt Meghan was right to condemn the comparisons: Story continues @TheView @JoyVBehar let @MeghanMcCain speak. I'm liberal but let the woman speak. I want to know her side. Also, torture and inhumane treatment at totally different things. Torture is deliberate. The immigrants are not being tortured. Not even close. — Mandy Vargy (@MandyVargy) June 25, 2019 The parents that thought illegally crossing the US border was a good idea are to blame. At least they're not forced to watch The View. That would be torture. — Hank Rearden (@HenryRearden7) June 25, 2019 Did real housewife Bethenny Frankel yell at Sunny Hostin’s child? Read more from Yahoo Entertainment: Olivia Munn criticizes white men who complain about having to watch what they say: 'The rest of us have been doing this forever' Veteran meteorologist 'let go' from job after objecting to station's 'Code Red' weather alerts Meghan McCain says Gwyneth Paltrow's living situation with her husband 'sounds like rich people stuff' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
Lone Pine Capital Discloses Stake in Chewy
Steve Mandel's investment company has position in hyped pet-care IPO |
Is There An Opportunity With China State Construction International Holdings Limited's (HKG:3311) 42% Undervaluation?
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Does the June share price for China State Construction International Holdings Limited (HKG:3311) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
View our latest analysis for China State Construction International Holdings
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF (HK$, Millions)", "2019": "HK$651.60", "2020": "HK$3.85k", "2021": "HK$5.27k", "2022": "HK$6.45k", "2023": "HK$7.51k", "2024": "HK$8.41k", "2025": "HK$9.17k", "2026": "HK$9.81k", "2027": "HK$10.34k", "2028": "HK$10.80k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x5", "2020": "Analyst x4", "2021": "Analyst x5", "2022": "Est @ 22.49%", "2023": "Est @ 16.34%", "2024": "Est @ 12.04%", "2025": "Est @ 9.03%", "2026": "Est @ 6.92%", "2027": "Est @ 5.45%", "2028": "Est @ 4.41%"}, {"": "Present Value (HK$, Millions) Discounted @ 12.09%", "2019": "HK$581.32", "2020": "HK$3.06k", "2021": "HK$3.74k", "2022": "HK$4.09k", "2023": "HK$4.24k", "2024": "HK$4.24k", "2025": "HK$4.13k", "2026": "HK$3.94k", "2027": "HK$3.70k", "2028": "HK$3.45k"}]
Present Value of 10-year Cash Flow (PVCF)= HK$35.17b
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2%. We discount the terminal cash flows to today's value at a cost of equity of 12.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = HK$11b × (1 + 2%) ÷ (12.1% – 2%) = HK$109b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= HK$HK$109b ÷ ( 1 + 12.1%)10= HK$34.88b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is HK$70.05b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of HK$13.87. Compared to the current share price of HK$8, the company appears quite good value at a 42% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at China State Construction International Holdings as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 12.1%, which is based on a levered beta of 1.517. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For China State Construction International Holdings, I've compiled three important factors you should look at:
1. Financial Health: Does 3311 have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does 3311's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of 3311? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the HKG every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Texas court rejects challenge to $2 bln Kinder Morgan gas pipeline
HOUSTON, June 25 (Reuters) - Kinder Morgan Inc can begin work on a $2 billion natural gas pipeline without having the Texas energy regulator approve its proposed route, a state judge ruled on Tuesday.
Judge Lora Livingston dismissed a lawsuit brought by a group of landowners that challenged the state's pipeline approval process. The lawsuit sought to halt construction on the pipeline, which would carry natural gas from west Texas to the U.S. Gulf Coast. (Reporting by Liz Hampton, Editing by Rosalba O'Brien) |
Defiance's AUGR ETF Debuts as Video Gaming ETF (VIDG)
Defiance ETF has repurposed its existing augmented and virtual reality Defiance Future Tech ETF AUGR to tap the booming video games industry. Tracking the BlueStar Augmented and Virtual Reality Index, the fund could amass only $3.6 million in its asset base since inception in August 2018. Effective Jun 24, 2019, the AUGR started trading as Defiance Next Gen Video Gaming ETF VIDG (read: Video Gaming Industry Warming Up: Play These ETFs).
VIDG in a Nutshell
VIDG seeks to track, before fees and expenses, the price and yield performance of the Bluestar Next Gen Video Gaming Index. Interestingly, 75% of the index is dominated by the companies engaged in the video gaming industry. Moreover, VIDG charges a fee of 30 basis points a year.
Per aFinancial Advisorarticle, the BlueStar Next Gen Video Gaming Index comprises companies involved in developing and designing video games, interactive media and eSports streaming, video game consoles and gaming-focused cloud services. It also includes companies engaged in social media applications with augmented or virtual reality features, mobile or wearable devices enabling virtual or augmented reality along with video processing semiconductors and other semiconductors with applications in electronics for gaming or augmented and virtual reality, and online casinos. This market capitalization weighted index is rebalanced semi-annually.
What Makes Video Gaming an Attractive Space?
The global video gaming market is growing at an attractive pace. The advent of innovative technologies like augmented and virtual reality-based head-mounted and head-up displays is leading to the development of advanced games aimed at assisting in academics and skill development.
Moreover, the distribution of games on mobile and online has opened up market areas, creating demand in this niche space. Goldman believes that eSports, mobile gaming, subscription models, streaming services and significant penetration into Chinese market will act as long-term drivers for the industry. In fact, per a report by ReportLinker, the global video game market is anticipated to reach a value of around $179.1 billion, at a CAGR of 6.4% between 2019 and 2024.
ETF Competition
The fund faces moderate competition owing to its high focus on the video gaming industry. Here we discuss a few ETFs that seek to provide exposure to the same:
ETFMG Video Game Tech ETF GAMR) — Up 10.7% YTD
GAMR tracks the EEFund Video Game Tech Index, which follows companies actively involved in the electronic gaming industry, including the entertainment, education and simulation segments. The 86-stock fund has exposure to the afore-mentioned stocks but none of the stocks account for more than 2.77% of the fund. It charges 75 bps in fees (read: Least-Hurt Tech ETFs as China Hits Back).
VanEck Vectors Video Gaming and eSports ETF ESPO— Up 23.4% YTD
The fund ESPO follows the MVIS Global Video Gaming and eSports Index, which intends to track the overall performance of companies involved in video game development, eSports, and related hardware and software. The 25-stock fund charges 55 bps in fees (read: eSports ETF Race: ESPO vs NERD).
Bottom Line
VIDG charges near the low-end in the growth-oriented funds category. Thus, we expect the fund to amass considerable assets in the coming days owing to its more concentrated exposure to the high-potential video gaming space and decent charges.
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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 reportETFMG Video Game Tech ETF (GAMR): ETF Research ReportsVanEck Vectors Video Gaming and eSports ETF (ESPO): 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 |
Lennar (LEN) Stock Falls Despite Earnings Beat as Trade Concerns Grow
Lennar Corporation LEN reported earnings of $1.30 per share, beating the Zacks Consensus Estimate of $1.13, an EPS surprise of +15.04%. The company's reported earnings sent the stock up as much as 3.6% but closed down over 6% on the day. Their strong report stemmed from an improving housing market that has since recovered from 2018 who felt the weight of rising interest rates and home prices. Lennar reported that home sales increased 5% to 12,729 topping the company’s previous forecasts of between 11,700-12,000. Orders also increased 0.5% to 14, 518, which also toppled previous projections of 14,300. The homebuilding company was able to bring in revenues of 1.9% to $5.56 billion.
In spite of these better than expected results, Lennar confirmed its full year outlook of selling around 50,000 homes. This cautious revenue guidance possibly reflects the deceleration of economic growth. Additionally, analysts have also expressed concerns about future home sales in the U.S for the remainder of 2019, as the stimulus from the Trump administration tax cuts and spending increases fades.
Growing concerns from the ongoing U.S-China trade war added to the growing worries about the housing market and homebuilders. Lennar issued a warning stating that an escalation of the trade war would lead to tariffs on Chinese goods, driving up material costs. To help offset these costs, the homebuilding company has priced in the tariffs at a $500 increase per home. Growing uncertainty would deter foreign buyers from large housing hubs such as California, which is Lennar’s most prominent revenue stream.
Lennar is currently sitting at a Zacks Rank #3 (Hold). The company has had a solid year-to-date return; shares are currently up 31%, and the stock is up 11.44% relative to the S&P 500. The company has been able to surpass our consensus estimate three out of the previous four quarters for an average earnings surprise of 67.51%. Despite these earning beats, Lennar has a Style Score of F in Growth, as our current consensus estimate is calling for a 14.65% decrease in earnings for the current fiscal year.
With the manner in which things are moving relative to the trade relations between the U.S and China, the homebuilding company must look for reassurance from the upcoming G-20 summit where President Trump and President Xi are expected to meet and restart trade talks. If the two countries can find common ground, the stock’s valuation could potentially bring investors back to Lennar, as the stock has historically been trading at a discount relative to its respective industry the past three years.
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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 reportLennar Corporation (LEN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Know This Before Buying Da Ming International Holdings Limited (HKG:1090) For Its Dividend
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Is Da Ming International Holdings Limited (HKG:1090) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
Investors might not know much about Da Ming International Holdings's dividend prospects, even though it has been paying dividends for the last seven years and offers a 2.4% yield. While the yield may not look too great, the relatively long payment history is interesting. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.
Explore this interactive chart for our latest analysis on Da Ming International Holdings!
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Da Ming International Holdings paid out 49% of its profit as dividends. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Plus, there is room to increase the payout ratio over time.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Last year, Da Ming International Holdings paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. It's positive to see that Da Ming International Holdings's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
As Da Ming International Holdings has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA measures a company's total debt load relative to its earnings (lower = less debt), while net interest cover measures the company's ability to pay the interest on its debt (higher = greater ability to pay interest costs). Da Ming International Holdings has net debt of 6.66 times its earnings before interest, tax, depreciation and amortisation (EBITDA) which implies meaningful risk if interest rates rise of earnings decline.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. With EBIT of 2.48 times its interest expense, Da Ming International Holdings's interest cover is starting to look a bit thin. High debt and weak interest cover are not a great combo, and we would be cautious of relying on this company's dividend while these metrics persist.
Remember, you can always get a snapshot of Da Ming International Holdings's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Looking at the data, we can see that Da Ming International Holdings has been paying a dividend for the past seven years. It's good to see that Da Ming International Holdings has been paying a dividend for a number of years. However, the dividend has been cut at least once in the past, and we're concerned that what has been cut once, could be cut again. During the past seven-year period, the first annual payment was CN¥0.028 in 2012, compared to CN¥0.043 last year. Dividends per share have grown at approximately 6.2% 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 good to see the dividend growing at a decent rate, but the dividend has been cut at least once in the past. Da Ming International Holdings might have put its house in order since then, but we remain cautious.
With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. Da Ming International Holdings's EPS are effectively flat over the past five years. Flat earnings per share are acceptable for a time, but over the long term, the purchasing power of the company's dividends could be eroded by inflation.
To summarise, shareholders should always check that Da Ming International 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 like Da Ming International Holdings's low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. Second, earnings per share have been in decline, and its dividend has been cut at least once in the past. In summary, Da Ming International Holdings has a number of shortcomings that we'd find it hard to get past. Things could change, but we think there are a number of better ideas out there.
See if management have their own wealth at stake, by checking insider shareholdings inDa Ming International Holdings stock.
We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
China tells Canada to stop meat shipments over bogus documents
By Kelsey Johnson and Rod Nickel
OTTAWA (Reuters) - China said on Tuesday it wants the Canadian government to stop allowing meat shipments to China after bogus export certificates were discovered.
The announcement comes just four days before China and the United States are due to sit down to work on settling a trade dispute that has caught Canada in the crossfire.
An investigation into Canada's export certificates has revealed as many as 188 "counterfeit" veterinary health documents and the existence of "obvious safety loopholes," the Chinese Embassy in Canada said in a statement on its website.
Canadian Agriculture Minister Marie-Claude Bibeau said in a statement that the Canadian Food and Inspection Agency (CFIA) confirmed it had found "inauthentic export certificates."
The Chinese Embassy, in its statement, said, "... China has taken urgent preventive measures and requested the Canadian government to suspend the issuance of certificates for meat exported to China.
"We hope the Canadian side would attach great importance to this incident, complete the investigation as soon as possible and take effective measures to ensure the safety of food exported to China in a more responsible manner," it added.
Bibeau said in her statement that the CFIA had been working closely with industry and Chinese officials on the matter.
"CFIA is investigating this technical issue and has informed appropriate law enforcement agencies. This incident is specific to export certificates to China. Export certificates to other countries are not affected," Bibeau said.
Bibeau did not say whether the CFIA would suspend the certificates, but a Canadian government source said the issue was a "technical" and not a political one, and that a "temporary suspension" may be announced.
Relations between China and Canada nosedived in December after Meng Wanzhou, the chief financial officer of Huawei Technologies Co, was detained in Vancouver on a U.S. arrest warrant. She denies any wrongdoing and Beijing is demanding her return.
After Meng's arrest, China detained two Canadians and later formally charged them with espionage. Canada says the arrest of the two men was arbitrary. China has already blocked imports of Canadian canola seed.
In its statement on Tuesday, the Chinese Embassy did not link its call to suspend Canadian meat imports to the Meng case.
On Monday, Meng's lawyers urged Canada's justice minister to withdraw extradition proceedings against Meng, but received no immediate response.
Though the issue is not on the official agenda, Canada's justice minister, David Lametti, is due to meet U.S. Attorney General William Barr in Washington on Wednesday.
U.S. President Donald Trump last week told Canadian Prime Minister Justin Trudeau that he was prepared to raise the case of the two detained Canadians with Chinese President Xi Jinping, whom he is to meet with in Japan on Saturday at the Group of 20 meeting.
The United States hopes to relaunch trade talks with China. It will be the first time Trump and Xi sit down together since trade talks between the world's two largest economies broke down in May of last year.
China bought C$310 million ($235.26 million) worth of Canadian pork from January through April, making it Canada's third-largest export market by value, according to official data.
Earlier this month, Reuters reported exclusively that China planned to boost inspections of imported Canadian meats and meat products.
A Canadian Agriculture Ministry notice said the Canadian Embassy in Beijing had been told that Chinese customs agents would open all containers of Canadian meat and meat products, and that in some cases 100% of the contents would be inspected.
The move to block Canadian meat imports comes at a difficult moment for Chinese pork consumers. China's sow herd is being closely watched by the global livestock market as an epidemic of incurable African swine fever has killed millions of animals in the world's most populous country, pushing up prices.
(Reporting by and Kelsey Johnson in Ottawa and Rod Nickel in Winnipeg; Writing by Steve Scherer; Editing by Sandra Maler, Matthew Lewis and Leslie Adler) |
FACTBOX -Where are the world's stateless people?
By Emma Batha THE HAGUE, June 26 (Thomson Reuters Foundation) - An estimated 10 to 15 million people are not recognised as nationals by any country, often depriving them of basic rights most of the world takes for granted such as education, healthcare, housing and jobs. An international conference opening in The Hague on Wednesday will assess progress on a United Nations campaign called #Ibelong which aims to end statelessness by 2024. Here are some examples of stateless populations: MYANMAR/BANGLADESH: In 1982, Buddhist-majority Myanmar passed a citizenship law that effectively rendered stateless most Rohingya, who are Muslim and of South Asian descent. Ethnic violence has driven many to leave, but hundreds of thousands remain in Myanmar. There are about 900,000 Rohingya in neighbouring Bangladesh and smaller populations across Asia. Some are sold into slavery on fishing boats and plantations. IVORY COAST: Ivory Coast is home to 692,000 stateless people. Many are descended from migrants, particularly from Burkina Faso, Mali and Ghana, who were encouraged to work on Ivory Coast's coffee and cotton plantations in the 20th century. At least a quarter of Ivory Coast's population is estimated to be of foreign descent and the question of who is or is not Ivorian helped fuel two civil wars in French-speaking West Africa's largest economy. THAILAND: Nearly 479,000 people are stateless, including members of ethnic hill tribes such as the Yao, Hmong and Karen who live in the mountainous border with Myanmar and Laos and the semi-nomadic 'Sea Gypsies' along the Andaman coast. ESTONIA/LATVIA: When the Soviet Union broke up, many ethnic Russians were stranded in the new Baltic states and defined as "non-citizens". Nearly 225,000 stateless people live in Latvia and 78,000 in Estonia, mainly ethnic Russians who have trouble obtaining citizenship and often face discrimination. SYRIA: In 1962, many Kurds in the northeast were stripped of citizenship, a move that Human Rights Watch described as part of a plan to "Arabise" the resource-rich region. Story continues Before the civil war, there were an estimated 300,000 stateless Kurds in Syria, many of whom were promised nationality by President Bashar al-Assad in reaction to the 2011 uprising. U.N. data suggests the number of stateless fell to 160,000, but this is most likely because many fled the war. Experts on statelessness have warned that babies born to Syrian refugee women in Lebanon and Jordan could end up stateless. KUWAIT: Many people among the nomadic Bedouin tribes failed to acquire citizenship at independence in 1961. Their descendants are known as Bidoon, which means "without" nationality in Arabic. There are about 92,000 Bidoon in Kuwait, according to U.N. data but some estimates are much higher. They are often barred from free education, healthcare and many jobs. NEPAL: Although Nepal says it does not have a stateless population, experts on statelessness believe many people, possibly hundreds of thousands, may be affected. Part of the problem derives from a law banning women married to foreigners passing their nationality to their children. There is also a stateless population of people who were expelled by Bhutan in the 1990s. DOMINICAN REPUBLIC: A 2013 court ruling, along with earlier changes to nationality laws aimed at tackling illegal migration, has left many stateless, mostly people of Haitian descent who were born in Dominican Republic. In 2015, there were about 134,000 stateless people, according to U.N. data, but the figures are being updated. IRAQ: There are about 47,500 stateless people who include Bidoon, Palestinian refugees and Faili Kurds, an ethnic group that historically live both sides of the Iraq-Iran border. At least 150,000 Faili Kurds had their nationality revoked in 1980 under the Ba'ath regime. Although many have since had their nationality reinstated, others remain stateless. EUROPE: Tens of thousands of stateless Roma - an ethnic group with origins in India - are thought to live in central and eastern Europe. With the break-up of Czechoslovakia and Yugoslavia, successor states claimed they belonged elsewhere. Other Roma in Kosovo and Bosnia have become stateless due to war-time displacement. Roma families often do not register their children's births or hold official property titles, preferring to pass houses to relatives informally. This can make it hard to prove where they are from. COLOMBIA: Up to 25,000 children born to Venezuelan parents who have fled to Colombia amid a political and economic crisis in their homeland may be stateless or are at risk. Children must have at least one Colombian parent to qualify for citizenship. Sources: U.N. refugee agency (UNHCR), Institute on Statelessness and Inclusion (Reporting by Emma Batha @emmabatha; Editing by Katy Migiro. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, women's and LGBT+ rights, human trafficking, property rights, and climate change. Visit http://news.trust.org) |
FedEx says ‘weakness in global trade’ impacting business in fiscal 2020
Global delivery companyFedExwarned Tuesday that "macroeconomic weakness and trade uncertainty" could hurt its fiscal 2020 performance.
The cautious outlook came as the Memphis, Tennessee, corporation reported revenue for the fourth quarter, which ended May 31, of $17.8 billion, which met Wall Street forecasts, according to The Associated Press.
FedEx also reported a fourth-quarter loss of $1.97 billion, or $7.56 per share, compared to the year-earlier period when it earned $1.32 billion, or $5.01 per share. Revenue rose 3 percent from the same quarter in the previous fiscal year.
“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’s executive vice president and chief financial officer, said ina news release.
The company predicted that the operating income during the 2020 fiscal year for its Ground and Freight divisions would rise as a result of higher revenues, according to the news release. However, the expectation was not as bright for FedEx Express.
"At FedEx Express, 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," the company said.
The fourth-quarter reportcomes a day after the company announcedit was suing the Trump administration because it cannot police the “millions” of shipments that transit its network daily.
“It’s impossible, even with the fantastic computer systems and compliance investments we made. We simply can’t be the policeman for the U.S. Department of Commerce,” FedEx Chairman and CEO Fred Smith told Fox News’ Bret Baier.
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The shipping giant filed suit in U.S. District Court in the District of Columbia seeking to block the Department of Commerce from enforcing regulations in the Export Administration Regulations (“EAR”) against FedEx.
Smith said the new government regulations create an “impossible burden” on FedEx and common carriers to know the origin and technological makeup of the contents of all the shipments that companies handle each day and whether they comply with the EAR.
Fox Business’ Henry Fernandez and The Associated Press contributed to this report.
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Will Gold Stocks Jump Amid Gold Price Boom?
Gold regained its shine this month after a dismal year. It has risen about 11% since May 30, after dropping steeply at this time last year. Morgan Stanley MS commodities strategist Susan Bates recently said that gold is the firm’s number one commodities pick.
Gold is generally seen as a safe haven investment in times of economic and monetary uncertainty. Gold makes the most sense to invest in when the dollar weakens, as it holds true value more steadily than unbacked paper currency. It also generally rises in times of geopolitical turmoil, as there is a higher risk to economic instability.
Many commodities experts have spoken about the high likelihood that the price of gold increases in the coming weeks due to both of the factors just mentioned. The DXY, which is the dollar index against foreign currencies, has fallen 1.85% over the last month. This has caused investors to put more money in gold in anticipation of its rise.
Rising geopolitical tensions in the Middle East have also helped gold climb. Two oil tankers were attacked earlier this month in the Gulf of Oman. Later a U.S. military drone was shot down in international airspace near Iran. This week President Trump authorized an attack by U.S. Cyber Command to cripple Iranian military command and control systems.
If these two issues continue or worsen in the near future, it is likely that gold will continue to rise. Some analysts are predicting the price to rise from $1430.15 to over $1,500 per ounce.
A great way to capitalize on this trend without getting into commodities trading is to buy stocks in companies that manufacture or handle gold. Below are three great companies that may rise in the coming weeks along with the price of gold.
1. AngloGold Ashanti AU
AngloGold Ashanti is a South African gold mining company with operations in nine countries. It is currently the third largest gold producer in the world, producing 7 million ounces of gold. AU is currently a Zacks Rank #1 (Strong Buy) with Style Scores of “A” for Value and Momentum and “B” for Growth. It also has a terrific projected 19.44% EPS growth over the next 3-5 years due to reinvestment in new high-yield mine sites.
The year over year earnings growth for 2019 is estimated at 90.57%, a huge number for a 15-year-old company. AU also has a market beta of -1.1, meaning that it on average moves inversely to the market. If you think that this bull market may end soon and are looking to protect your portfolio, AU may be a great choice.
2. Agnico Eagle Mines Ltd. AEM
Agnico-Eagle Mines Limited is a Canadian-based gold producer with operations, exploration, and development in Canada, Finland, and Mexico. Last year, AEM produced 1.63 million ounces and plans to expand to 1.75 million ounces in 2019. Analysts have upgraded earnings per share estimates for this year in the last 90 days from 0.45 to 0.51, a trend that shows positive movement for the company.
In the past, AEM has performed worse than the gold mining industry on average. However, it has performed 80% better than the industry in the past 12 months.
3. Royal Gold, Inc. RGLD
Royal Gold, Inc. acquires and manages precious metals royalty and stream interests, with a primary focus on gold. The company contracts with mine operators to be able to purchase a portion of the metal that the mine produces at a fixed price, in exchange for an upfront payment. This means that the company is insulated from the costs and risks of mine operation. It also means that the company is highly exposed to gold market fluctuations. Which, if the gold market rises as speculated, will be extremely good for RGLD’s business.
RGLD has a P/E ratio that is higher than the industry ratio. However, this is likely due to RGLD’s stability of earnings. It is not subject to the extreme riskiness of discovering and exploring new gold mines. Investors are willing to pay more for this stock’s earnings, as the earnings have a lower risk of taking a dive.
In 2020, RGLD’s earnings are projected to grow by 33.3%. Zacks Consensus Estimates for 2020 EPS have also been on the rise over the past 90 days, from $1.83 to $2.04. Both of which are signs of positive share price growth.
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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 reportMorgan Stanley (MS) : Free Stock Analysis ReportRoyal Gold, Inc. (RGLD) : Free Stock Analysis ReportAgnico Eagle Mines Limited (AEM) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Does Da Ming International Holdings Limited (HKG:1090) Have A Place In Your Dividend Stock Portfolio?
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Is Da Ming International Holdings Limited (HKG:1090) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.
With a 2.4% yield and a seven-year payment history, investors probably think Da Ming International Holdings looks like a reliable dividend stock. A low yield is generally a turn-off, but if the prospects for earnings growth were strong, investors might be pleasantly surprised by the long-term results. Some simple analysis can reduce the risk of holding Da Ming International Holdings for its dividend, and we'll focus on the most important aspects below.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Da Ming International Holdings paid out 49% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Last year, Da Ming International Holdings paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. It's positive to see that Da Ming International Holdings's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
As Da Ming International Holdings has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. With net debt of more than 5x EBITDA, Da Ming International Holdings could be described as a highly leveraged company. While some companies can handle this level of leverage, we'd be concerned about the dividend sustainability if there was any risk of an earnings downturn.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. With EBIT of 2.48 times its interest expense, Da Ming International Holdings's interest cover is starting to look a bit thin. Low interest cover and high debt can create problems right when the investor least needs them. We're generally reluctant to rely on the dividend of companies with these traits.
Consider gettingour latest analysis on Da Ming International Holdings's financial position here.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Da Ming International Holdings has been paying a dividend for the past seven years. It's good to see that Da Ming International Holdings has been paying a dividend for a number of years. However, the dividend has been cut at least once in the past, and we're concerned that what has been cut once, could be cut again. During the past seven-year period, the first annual payment was CN¥0.028 in 2012, compared to CN¥0.043 last year. Dividends per share have grown at approximately 6.2% per year over this time. Da Ming International Holdings's dividend payments have fluctuated, so it hasn't grown 6.2% every year, but the CAGR is a useful rule of thumb for approximating the historical growth.
Dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income.
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. Da Ming International Holdings's earnings per share have been essentially flat over the past five years. Over the long term, steady earnings per share is a risk as the value of the dividends can be reduced by inflation.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Da Ming International Holdings has a low payout ratio, which we like, although it paid out virtually all of its generated cash. Earnings per share are down, and Da Ming International Holdings's dividend has been cut at least once in the past, which is disappointing. In summary, Da Ming International Holdings has a number of shortcomings that we'd find it hard to get past. Things could change, but we think there are a number of better ideas out there.
You can also discover whether shareholders are aligned with insider interests bychecking our visualisation of insider shareholdings and trades in Da Ming International Holdings stock.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Microsoft might beat Apple to market with an ARM-powered laptop
Click here to read the full article. Apple is expected to replace Intel chips that typically power MacBooks with ARM-based creations of its own, and we keep seeing rumors pointing in that direction . But while Apple hasn’t confirmed that it’s working on A-series processors that could deliver desktop-grade performance, its partner (and rival) Qualcomm has already launched a bunch of ARM processors that can run Windows. The latest one is the Snapdragon 8cx that has been engineered specifically for notebook use. And that’s the platform Microsoft might use on an upcoming Surface laptop. Related Stories: More proof Apple is making ARM MacBooks: It just hired a key ARM engineer Microsoft is reportedly testing two exciting new Surface models Galaxy Note 10 might get an exciting iPhone feature, and it's all thanks to... Windows 10? Windows Central’s Zac Bowden said on Twitter that the latest Surface codename to keep an eye out for is “Excalibur,” which is reportedly powered by an 8cx processor: Just a couple of months ago, we saw a Snapdragon 8cx laptop at Computex 2019, meant to demo 5G connectivity on notebooks. Qualcomm, of course, is also pushing its 5G chips, which power several of the 5G smartphones that are available in stores, including the Samsung Galaxy S10 5G and the OnePlus 7 Pro 5G. At the time, Qualcomm partnered with Lenovo on the “Project Limitless” device, although we have no idea when this laptop will launch. Microsoft, on the other hand, is already rumored to be working on dual-display and foldable devices, with a foldable Surface tablet/laptop expected in the first half of 2020. It’s unclear whether the Excalibur is related to any of these products. However, using a Snapdragon 8cx platform, complete with 5G connectivity on a foldable device, makes a great deal of sense. Intel chips have powered all of Microsoft’s Surface models to date. Many future Surface laptops will likely continue to rely on Intel chips, but having Microsoft launch an ARM-based Surface would put even more pressure on Intel, as well as signal to other vendors that Windows on ARM is a real alternative. Story continues As for Apple, the company is expected to deliver a novel 16-inch MacBook Pro this fall, although the laptop will probably run on Intel chips. Other MacBook lines will also see refreshes, but there’s no indication that an ARM-based MacBook will launch this year. BGR Top Deals: Get an ASUS 2-in-1 touchscreen Chromebook for $279 on Amazon, today only This top-rated fast wireless charger is somehow only $6.99 right now on Amazon Trending Right Now: No, it’s not just you: Half of the internet is down, including Google, Amazon, and Reddit Apple was right again: Here’s why a Galaxy Note 10 without a microSD slot isn’t a big deal Fresh Pixel 4 leak gives us another look at Google’s unreleased flagship See the original version of this article on BGR.com |
Exclusive: Investors with $34 trillion demand urgent climate change action
By Simon Jessop and Nina Chestney
LONDON (Reuters) - Investors managing more than $34 trillion in assets, nearly half the world's invested capital, are demanding urgent action from governments on climate change, piling pressure on leaders of the world's 20 biggest economies meeting this week.
In an open letter to the "governments of the world" seen by Reuters, groups representing 477 investors stressed "the urgency of decisive action" on climate change to achieve the Paris Agreement target.
Almost 200 nations agreed in Paris in 2015 to limit the global average temperature rise to well below 2 degrees Celsius above pre-industrial times. Current policies put the world on track for at least a 3C rise by the end of the century.
The letter comes ahead of a June 28-29 G20 summit in Japan and as United Nations Secretary-General Antonio Guterres urges countries to back more ambitious climate goals.
"There is an ambition gap... This ambition gap is of great concern to investors and needs to be addressed, with urgency," a statement from the investors accompanying the letter said.
Governments were urged to strengthen their Paris Agreement targets by 2020; phase out thermal coal power and fossil fuel subsidies by set deadlines; set a robust global carbon price by 2020 and improve climate-related financial reporting.
"It is vital for our long-term planning and asset allocation decisions that governments work closely with investors to incorporate Paris-aligned climate scenarios into their policy frameworks and energy transition pathways," the statement said.
The investor letter was signed by the chief executives of the seven founding partners of The Investor Agenda, including the Institutional Investors Group on Climate Change and the United Nations-backed Principles for Responsible Investment.
Large investors signing the statement included Legal & General Investment Management and the California Public Employees' Retirement System (CalPERS), although the world's two biggest asset managers, BlackRock and Vanguard, did not.
A BlackRock spokeswoman declined to give a specific reason for not supporting the call, but pointed to a statement from its annual report that said it typically does not join such initiatives. Reasons can include overlap with the company's existing efforts or a misalignment of views.
A spokeswoman for Vanguard was not able to give a specific reason, but said it was concerned about the long-term impact of climate risk and was actively engaged on a number of climate related initiatives with an emphasis on good disclosure.
A U.N.-backed panel of scientists has said limiting global warming to 1.5C would cost at least $830 billion a year but the cost of inaction is thought to be much higher.
DIVESTING DRIVE
A number of institutional investors have already started to divest from fossil fuel companies due to the risk their assets will become stranded as the cost of renewable energy falls.
Last month, the U.N.'s Guterres urged countries to end approval for new coal-fired power plants beyond 2020, as well as fossil fuel subsidies.
Carola van Lamoen, Head of Active Ownership at global asset manager Robeco, said: "As investors, in our view the development of new coal power plants after 2020 puts at risk both the return on investment and the world's chance of limiting global warming in line with the goals of the Paris Agreement."
However, some countries argue that they need to keep using fossil fuels to power their economic development.
A report by researchers which tracks countries' progress towards limiting global warming showed that only five out of 32 nations have targets in line with a 2C limit.
A report by the Overseas Development Institute think-tank said on Tuesday that G20 governments boosted backing for coal-fired power plants, particularly in poorer nations, from $17 billion to $47 billion a year from 2014 to 2017.
Japan, as host of the G20 summit in Osaka this week, has been criticised for its plans to continue using coal. It backs the use of carbon capture and storage to trap emissions, but the technology is costly and not yet commercial.
(Reporting by Simon Jessop and Nina Chestney; Editing by Alexander Smith) |
Haier Electronics Group Co., Ltd. (HKG:1169): Financial Strength Analysis
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Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Haier Electronics Group Co., Ltd. (HKG:1169) with a market-capitalization of HK$60b, rarely draw their attention. Surprisingly though, when accounted for risk, mid-caps have delivered better returns compared to the two other categories of stocks. 1169’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto 1169 here.
See our latest analysis for Haier Electronics Group
Over the past year, 1169 has reduced its debt from CN¥193m to CN¥92m , which includes long-term debt. With this debt payback, 1169 currently has CN¥19b remaining in cash and short-term investments , ready to be used for running the business. Moreover, 1169 has generated CN¥4.2b in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 4597%, meaning that 1169’s debt is appropriately covered by operating cash.
With current liabilities at CN¥19b, it seems that the business has been able to meet these obligations given the level of current assets of CN¥37b, with a current ratio of 1.95x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Consumer Durables companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
A debt-to-equity ratio threshold varies depending on what industry the company operates, since some requires more debt financing than others. A ratio below 40% for mid-cap stocks is considered as financially healthy, as a rule of thumb. For Haier Electronics Group, investors should not worry about its debt levels because the company has very, very little on its balance sheet! This means it has been running its business utilising funding from primarily its equity capital, which is rather impressive. Investors' risk associated with debt is virtually non-existent with 1169, and the company has plenty of headroom and ability to raise debt should it need to in the future.
1169’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. In addition to this, the company exhibits proper management of current assets and upcoming liabilities. Keep in mind I haven't considered other factors such as how 1169 has been performing in the past. I suggest you continue to research Haier Electronics Group to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for 1169’s future growth? Take a look at ourfree research report of analyst consensusfor 1169’s outlook.
2. Valuation: What is 1169 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 1169 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. |
The It List: Yesterday, BTS, The Black Keys, Lion King, Freaknik
The It List is Yahoos weekly look at the best in pop culture, including movies, music, TV, streaming, games, books, podcasts and more. Here are our picks for June 24-30, including the best deals we could find for each. WATCH IT: Yesterday It has the most intriguing premise of any film to hit theaters so far this year: After a struggling British musician (Himesh Patel) suffers a bike accident, he wakes up to find the world has no collective memory of The Beatles , thus allowing him to pass all their hit songs off as his own and quickly ascent to international superstardom. As for how it all works, all you need is Love Actually scribe Richard Curtis and Slumdog Millionaire director Danny Boyle coming together and it all but guarantees a feel-good jukebox musical that finds a most inspired way to celebrate the most beloved rock band of all time: by pretending they no longer exist. Given Curtis's involvement, it shouldn't be surprising, but beyond its high concept scenario the film also leans just as heavily into its "Will They or Won't They?" romantic subplot. In other words, it's a perfect date movie for Beatles lovers. Get tickets for Yesterday at Fandango . PLAY IT: BTS World The K-pop bands new mobile game is particularly well named, since its members have practically taken over the planet in the last few years. Their latest project offers devotees known as members of their ARMY some new fun, as it allows them to have the virtual experience of interacting with their favorites in the role of their manager, attempting to steer them to the bigtime. The game, available June 26, is also chock full of new material fans will adore: 10,000 new photos, 100 video clips exclusive to the game and, best of all, first dibs on new BTS music, featured throughout the game. BTS World is available on Apples App Store and Google Play . HEAR IT: The Black Keys, Lets Rock The scrappy garage rock duos first album since 2014 has been described by band member Patrick Carney as an homage to electric guitar. Proving rock n roll is in fact not dead, the albums lead single Lo/Hi made history by topping Billboard 's Mainstream Rock, Adult Alternative Songs, Rock Airplay and Alternative Songs charts, making it the first time any song has hit No. 1 on all four formats simultaneously. Story continues Download on iTunes ; buy on CD/vinyl at Amazon . STREAM IT: The Lion King (25th anniversary) (Photo: Disney) Its the Hollywood circle of life: The same year that the animated Lion King celebrates its 25th anniversary, Disney is releasing a new live action version thats expected to be the king of the July box office. And while were just as eager as everyone else to hear Donald Glover and Beyoncé croon Can You Feel the Love Tonight, director Jon Favreau has a tall order in equaling the pop culture longevity of the cartoon version, which premiered in theaters on June 24, 1994. It may be hard to believe now, but the Mouse House was dubious about The Lion King in the run-up to the movies release, uncertain whether it would equal the grosses of The Little Mermaid , Beauty and the Beast and Aladdin . Instead, the movie wound up out-earning all of its predecessors by a healthy margin, while the Elton John/Tim Rice soundtrack remains one of the 90s defining albums. In hindsight, The Lion King represents the culmination of Disneys hand-drawn animated renaissance, as well as its inevitable decline. The following year, the first Toy Story arrived in theaters and kick-started the computer-animation revolution thats led a quarter-century later to the roar of a new Lion King . The Lion King is available to purchase on Amazon , iTunes and Vudu . HEAR IT: Freaknik: A Discourse on a Paradise Lost podcast While MTV spent all those years chasing the debaucherous images of spring breakers on Florida beaches, an arguably even wilder party was happening some 600 miles north on the streets of urban Atlanta. Launched in 1983, Freaknik became a full-on phenomenon by the early 90s, drawing upwards of 200,000 mostly black college students to ATL from all over the country. And eventually, the city couldn't handle it. In a fascinating new podcast produced by Endeavor Audio and Mass Appeal, documentarian Christopher Frierson unspools an oral history of the event, highlighting not just the infamous intersection of sex, drugs and hip-hop, but also the (oftentimes unjustified) strife between revelers and law enforcement and city officials that would ultimately spell its doom. Stream the Freaknik podcast on Endeavor Audio starting June 25. WATCH IT: The Amazing Race (Season 31 finale) For its 31st season, CBSs globetrotting competition series decided to switch things up by staging a showdown between the networks three big reality franchises: Big Brother , Survivor and TAR . Headed into this weeks season finale, its three teams of Amazing Race veterans Colin and Christie, Leo and Jamal and Tyler and Korey against lone Big Brother survivors, Nicole and Victor. In other words, the producers may have been better off just doing another TAR all-star season, as the promised fireworks between the different reality shows never really materialized. Other format tweaks like putting the game changing U-Turn to a vote yielded similarly mixed results. On the other hand, the international locations were postcard-perfect as always, and the mix of old-and-new challenges kept the teams on their toes. Heres hoping that Season 32 gets back to the basics that has kept this show on the air for 18 years and counting. The season finale of The Amazing Race airs Wednesday at 8 p.m. on CBS and CBS All Access . HEAR IT: Ingrid Michaelson, Stranger Songs The singer-songwriters ninth album is inspired by the Netflix hit Stranger Things , with its release preceding the series Season 3 premiere on July 4. Expect lots of moody 80s synthesizers: Michaelson says one of her biggest sonic touchstones for the album was Only You by Alison Moyet and Vince Clarkes new wave duo Yaz. Download on iTunes ; buy on CD/vinyl/cassette at Amazon . READ IT: I Like to Watch: Arguing My Way Through the TV Revolution by Emily Nussbaum From Buffy the Vampire Slayer to The Sopranos , from to Archie Bunker to Carrie Bradhsaw, New Yorker TV critic Emily Nussbaum covers it all in this collection of essays mostly reprinted but a couple published for the first time. The Pulitzer Prize winner profiles TV showrunners like Ryan Murphy ( Glee ) and Kenya Barris ( Black-ish ), tackles the #MeToo movement and reality TVs role in the election of President Donald Trump and much more. I Like to Watch: Arguing My Way Through the TV Revolution is available at Amazon and Barnes & Noble . WATCH IT: The Rook (series premiere) Cross The Bourne Identity with the X-Men and youve got The Rook , Starzs eight-episode adaptation of a 2012 bestseller by Daniel OMalley. Emma Greenwell plays Myfanway Thomas, a card-carrying member of the Checquy a top-secret British secret service agency tasked with keeping the homeland secure from those with extraordinary powers. It turns out that Myfanway has extraordinary powers herself... not that she remembers how to use them, due to the fact that a big chunk of her memory is missing. Enter Linda Farrier (Joely Richardson), Thomass boss and supposed ally. But as with any good spy-meets-superhero serial, you can bet that not everything is as it appears to be. The Rook premieres June 30 at 8 p.m. on Starz and the Starz app. STREAM IT: The Feels The YouTube web series offers bite-size chunks 95 seconds to just over six minutes of humanity. The show follows Charlie, a bisexual high school teacher, as he experiences life as a queer man, from dating to changing in the locker room and beyond. Writer Tim Manley and filmmaker Naje Lataillade created the series based on Manleys frustration at the lack of representation of people like himself, and theyve released an episode each day to commemorate LGBTQ Pride Month. As the month comes to a close, now is the perfect time to catch up on the series, which is guaranteed to alternately amuse and make your heart feel something. The Feels is available on YouTube . HEAR IT: Generation Axe, Generation Axe: The Guitars That Destroyed the World (Live in China) This record is even more of an homage to the electric guitar than the Black Keyss album, harnessing the onstage five-pronged power of six-string gods Steve Vai, Yngwie Malmsteen, Zakk Wylde, Nuno Bettencourt and Tosin Abasi. Download on iTunes ; buy on CD/vinyl at Amazon . Yahoo Entertainment may receive a share from purchases made via links on this page. |
A Real-Life Thriller: State-Sponsored Hackers Spy on Targets Through Their Cellular Providers, Report Says
An ambitious group of suspected state-backed hackers has been burrowing into telecommunications companies in order to spy on high-profile targets across the world, a U.S. cybersecurity firm said ina report published Tuesday.
Boston-based Cybereason said the tactic gave hackers sweeping access to VIPs’ call records, location data, and device information—effectively turning the targets’ cellular providers against them.
Cybereason Chief Executive Lior Div said because customers weren’t directly targeted, they might never discover that their every movement was being monitored by a hostile power.
The hackers have turned the affected telecoms into “a global surveillance system,” Div said in a telephone interview. “Those individuals don’t know they were hacked—because they weren’t.”
Div, who presented his findings at the Cyber Week conference in Tel Aviv, provided scant details about who was targeted in the hack. He said Cybereason had been called in to help an unidentified cellular provider last year and discovered that the hackers had broken into the firm’s billing server, where call records are logged.
The hackers were using their access to extract the data of “around 20” customers, Div said.
Who those people were he declined to say, describing them as mainly coming from the world of politics and the military. He said the information was so sensitive he would not provide even the vaguest idea of where they or the telecom were located.
“I’m not even going to share the continent,” he said.
Cybereason said the compromise of its customer eventually led it to about 10 other firms that had been hit in a similar way, with hackers stealing data in 100 gigabyte chunks. Div said that, in some cases, the hackers even appeared to be tracking non-phone devices, such as cars or smartwatches.
Cybereason said it was in the process of briefing some of the world’s largest telecommunications firms on the development. The GSMA, a group that represents mobile operators worldwide, said in an email it was monitoring the situation.
Who might be behind such hacking campaigns is often a fraught question in a world full of digital false flags. Cybereason said all the signs pointed to APT10—the nickname often applied to a notorious cyberespionage group thatU.S. authoritiesanddigital security expertshave tied to the Chinese government.
But Div said the clues they found were so obvious that he and his team sometimes wondered whether they might have been left on purpose.
“I thought: ‘Hey, just a second, maybe it’s somebody who wants to blame APT10,'” he said.
Chinese authorities routinely deny responsibility for hacking operations. The Chinese Embassy in London did not immediately return a request seeking comment.
Div said it was unclear whether the ultimate targets of the espionage operation were warned, saying that Cybereason had left it to the telecom firms to notify their customers. Div added he had been in touch with “a handful” of law enforcement agencies about the matter, although he did not say which ones.
The FBI in Washington did not immediately return a message from The Associated Press seeking comment on the topic.
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Wayfair Employees Threaten Walkout Over Sales to Migrant Detention Contractor
Employees at Wayfair are threatening a Wednesday walkout after the home goods company declined to end bed sales to federally-contracted facilities holding detained immigrants.
More than 500 employees in the company’s Boston office signed a letter protesting the fulfillment of a furniture order from BCFS, a government contractor in Texas.
The internal conflict is just the latest in a growing trend of public executive-employee rifts generated by the increased politicization of immigration and treatment of immigrant detainees along the southern border. In June 2018, groups of employees atMicrosoft, Salesforce, andAmazonall went public with petitions imploring the respective CEOs to tear up contracts with various law enforcement agencies.
According to the employee letter to Wayfair management, which has been posted to social media, the employees drafted the petition after learning of a BCFS order last week.
“This particular order, for over $200,000 worth of bedroom furniture, is destined for Carrizo Springs, Texas, to a facility that will be outfitted to detain up to 3,000 migrant children seeking legal asylum in the United States,” said the letter to the company’s management team, including cofounders Niraj Shah and Steve Conine. “The practice of detaining children and adults at our Southern border has been condemned since its inception but since the acceleration of the practice in 2018, and the increase in death and injury that has come with that acceleration, we have seen more vocal condemnation of the practice. We, the undersigned, are writing to you from a place of concern and anger about the atrocities being committed at our Southern border.”
The letter asks the company to end sales with border camp contractors in addition to establishing a formal code of ethics for future business-to-business relationships.
“We believe that the current actions of the United States and their contractors at the Southern border do not represent an ethical business partnership Wayfair should choose to be a part of,” the letter stated. “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 protesting group of employees, Wayfair management responded with an unsigned letter defending its position as “respecting diversity of thought within our organization and across our customer base.”
“As a retailer, 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,” the response letter stated. “… It is our hope that Wayfair’s continued success will enable all of us as individuals to pursue our passions and advance the causes we believe in. We are already seeing much of this through the ongoing philanthropic work and donations driven by many individuals at Wayfair.”
Wayfair did not immediately respond to a request for further comment.
A Twitter account promoting the protest, @wayfairwalkout, was subsequently set up and had grown to 6,000 followers by 4 p.m. Tuesday, A post on the account says the walkout is scheduled for 1:30 p.m. EST at the Wayfair corporate headquarters in the Back Bay area of Boston.
In addition to announcing the walkout, the employees have asked the company to donate all of the proceeds from the BCFS sale to the Refugee and Immigrant Center for Education and Legal Services (RAICES), a non-profit organization providing immigrant legal services.
Some Wayfair customers backing the employees’ stand have begun venting on social media.
Last year, more than 400 Microsoft employees signed a petition demanding termination of a contract with ICE, more than 650 Salesforce employees challenged the company’s agreement with CBP, and Amazon employees criticized work being done to provide law enforcement agencies with new facial recognition technology. To date, none of the companies have decided to change course despite the public employee protests.
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UPDATE 1-Brazil's Petrobras prices secondary offering at 30.25 reais per share -sources
(Adds details on the offering, context)
By Tatiana Bautzer and Carolina Mandl
SAO PAULO, June 25 (Reuters) - Brazilian state-controlled oil company Petroleo Brasileiro SA priced a secondary share offering on Tuesday at 30.25 reais per common share, two sources with knowledge of the matter said.
State-owned lender Caixa Economica Federal has agreed to sell its 2.3% stake in Petrobras at a 1.5% discount to Tuesday's closing price of 30.70 reais per common share. Large demand from foreign investors allowed the offering to price at a discount lower than the 4% average in Brazilian secondary offerings in recent years.
The bank will raise 7.3 billion reais ($1.9 billion) with the sale of 241.3 million common shares, as Caixa aims to increase early repayment of loans to Brazil's National Treasury.
Investment banking units of Caixa, UBS Group, Morgan Stanley, Bank of America and XP Investimentos managed the offering.
($1 = 3.8468 reais) (Reporting by Tatiana Bautzer and Carolina Mandl, Editing by Rosalba O'Brien) |
CFTC trading data shows many are shorting CME bitcoin futures
Despite the recent bitcoin price spike, big traders are bearish, according to a report from the Wall Street Journal.
The outlet reported data from the Commodity Futures Trading Commission showing managers holding 14% more short positions in CME bitcoin futures last week than long positions. Other firms, neither money managers nor small investors, also held three times as many short positions, according to the report.
Futures allow traders to bet on the rise and fall of an asset, so the increase of short positions indicates an overall bearish attitude by big players. However, bitcoin has risen above $11,000, indicating there is some optimism.
The CFTC report showed small investors held more long positions. The demographic of investors with fewer than 25 BTC contracts showed four times as many long positions. That report was released Friday, with data reflecting when bitcoin was hovering around $9,000. |
A Look At The Fair Value Of Jiashili Group Limited (HKG:1285)
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Today we will run through one way of estimating the intrinsic value of Jiashili Group Limited (HKG:1285) by taking the expected future cash flows and discounting them to today's value. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
Check out our latest analysis for Jiashili Group
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF (CN\u00a5, Millions)", "2019": "CN\u00a553.83", "2020": "CN\u00a545.78", "2021": "CN\u00a541.26", "2022": "CN\u00a538.65", "2023": "CN\u00a537.18", "2024": "CN\u00a536.41", "2025": "CN\u00a536.10", "2026": "CN\u00a536.10", "2027": "CN\u00a536.32", "2028": "CN\u00a536.69"}, {"": "Growth Rate Estimate Source", "2019": "Est @ -22.23%", "2020": "Est @ -14.96%", "2021": "Est @ -9.87%", "2022": "Est @ -6.31%", "2023": "Est @ -3.82%", "2024": "Est @ -2.07%", "2025": "Est @ -0.85%", "2026": "Est @ 0.01%", "2027": "Est @ 0.61%", "2028": "Est @ 1.02%"}, {"": "Present Value (CN\u00a5, Millions) Discounted @ 7.36%", "2019": "CN\u00a550.14", "2020": "CN\u00a539.72", "2021": "CN\u00a533.34", "2022": "CN\u00a529.10", "2023": "CN\u00a526.07", "2024": "CN\u00a523.78", "2025": "CN\u00a521.96", "2026": "CN\u00a520.46", "2027": "CN\u00a519.17", "2028": "CN\u00a518.04"}]
Present Value of 10-year Cash Flow (PVCF)= CN¥281.77m
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.4%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CN¥37m × (1 + 2%) ÷ (7.4% – 2%) = CN¥699m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CN¥CN¥699m ÷ ( 1 + 7.4%)10= CN¥343.63m
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CN¥625.41m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. This results in an intrinsic value estimate in the company’s reported currency of CN¥1.51. However, 1285’s primary listing is in China, and 1 share of 1285 in CNY represents 1.135 ( CNY/ HKD) share of SEHK:1285,so the intrinsic value per share in HKD is HK$1.71.Relative to the current share price of HK$1.37, the company appears about fair value at a 20% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Jiashili Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.4%, which is based on a levered beta of 0.898. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Jiashili Group, I've put together three fundamental aspects you should further examine:
1. Financial Health: Does 1285 have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of 1285? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every HK stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
AeroVironment's 2020 Outlook Clips Its Wings
The potential foraircraft without human pilotsto serve military and commercial purposes has never been greater, and investors have been adamant thatAeroVironment(NASDAQ: AVAV)should be one of the biggest beneficiaries of this growing trend. Recently, the company has made big efforts to bounce back from some past setbacks, and many had gotten optimistic that this would finally be the time that AeroVironment made the most of its opportunities.
Coming into Tuesday's fiscal fourth-quarter financial report, AeroVironment shareholders were ready to deal with declines in quarterly revenue and profit, but they still wanted to seehope for a stronger fiscal 2020. Unfortunately, AeroVironment wasn't able to give investors the long-term outlook they had wanted to see, once again raising questions about whether the UAV manufacturer will ever live up to the hype surrounding the drone market.
Image source: AeroVironment.
AeroVironment's fiscal fourth-quarter numbers showed the challenges the company has faced. Revenue sank 23% to $87.9 million, and just about the only good news about that was that the decline was less severe than the 30% drop that most of those following the stock had expected. Meanwhile, net income came in at $5.7 million, down by nearly two-thirds from year-ago levels. The resulting earnings from continuing operations of $0.26 per share matched the consensus forecast among investors, even though it too was down sharply from the fourth quarter of fiscal 2018.
Nearly all of AeroVironment's top-line declines came from weaker product sales. Service revenue was relatively flat for the period, but product-related revenue dropped by more than $25 million for the period. The fact that AeroVironment got more of its business from service revenue also contributed to about a three percentage point drop in gross margin levels to 42%.
Backlog also remained relatively stagnant. AeroVironment said that it has $164.3 million in funded backlog, which is down just $100,000 from year-ago levels.
For the full fiscal year, though, the numbers looked better. Full-year revenue climbed 17% from 2018 levels, and earnings per share almost doubled over the same period on a continuing basis.
CEO Wahid Nawabi tried to take a big-picture view. "We strengthened our position as an industry leader," Nawabi said, "accelerated our growth strategy, and expanded our footprint." The CEO said that AeroVironment is still going through a longer-term transformation to become more competitive.
AeroVironment highlighted the specific missions that the company has taken on. As Nawabi described it, "We are protecting more United States and allied forces with ourunmanned aircraftand tactical missile systems, empowering more farmers and researchers with data tools to grow more and earn more, and rolling out the next generation HAWK30 solar HAPS system to help connect billions of people to the global information network."
Yet that optimism didn't meet the expectations that investors had with respect to AeroVironment's results for the coming fiscal year. The company set guidance for fiscal 2020 at $350 million to $370 million in revenue, working out to adjusted earnings of $1.47 to $1.67 per share. Not only is that less than the $1.74 per share that AeroVironment posted for earnings from continuing operations during fiscal 2019, but the midpoint is below the consensus forecast for $1.61 per share on the bottom line.
Shareholders in AeroVironment wanted to see more encouraging projections, and the stock quickly dropped almost 10% in after-hours trading following the announcement. That doesn't mean that the drone maker's long-term future is doomed, but it does indicate that AeroVironment will have to get back on track if it wants to reassure its investors that its vision for the future is still attainable.
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Dan Caplingerhas no position in any of the stocks mentioned. The Motley Fool recommends AeroVironment. The Motley Fool has adisclosure policy. |
Do BAIOO Family Interactive's (HKG:2100) Earnings Warrant Your Attention?
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It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inBAIOO Family Interactive(HKG:2100). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
Check out our latest analysis for BAIOO Family Interactive
The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. That means EPS growth is considered a real positive by most successful long-term investors. We can see that in the last three years BAIOO Family Interactive grew its EPS by 4.2% per year. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. To cut to the chase BAIOO Family Interactive's EBIT margins dropped last year, and so did its revenue. That will not make it easy to grow profits, to say the least.
In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart.
Since BAIOO Family Interactive is no giant, with a market capitalization of CN¥1.2b, so you shoulddefinitely check its cash and debtbeforegetting too excited about its prospects.
Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So we're pleased to report that BAIOO Family Interactive insiders own a meaningful share of the business. In fact, they own 54% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. To me this is a good sign because it suggests they will be incentivised to build value for shareholders over the long term. In terms of absolute value, insiders have CN¥661m invested in the business, using the current share price. That should be more than enough to keep them focussed on creating shareholder value!
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Well, based on the CEO pay, I'd say they are indeed. For companies with market capitalizations between CN¥688m and CN¥2.8b, like BAIOO Family Interactive, the median CEO pay is around CN¥1.9m.
The BAIOO Family Interactive CEO received CN¥1.6m in compensation for the year ending December 2018. That seems pretty reasonable, especially given its below the median for similar sized companies. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of good governance, more generally.
As I already mentioned, BAIOO Family Interactive is a growing business, which is what I like to see. The fact that EPS is growing is a genuine positive for BAIOO Family Interactive, but the pretty picture gets better than that. With a meaningful level of insider ownership, and reasonable CEO pay, a reasonable mind might conclude that this is one stock worth watching. Of course, just because BAIOO Family Interactive is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry.
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. |
Activist 'feels unsafe' after Confederate flag, note are left for him at community center
Louis Smith, a longtime local black activist, found a Confederate and a note addressed to him on the door of the Summerville Community Resource Center he oversees. (Credit: Louis Smith) A long-time Black community activist says he feels threatened after discovering a Confederate flag and a blue note addressed to him posted on the doors of the local community resource center he oversees. The note read, Louis Smith, we hope you find love in your heart and get rid of your hate for the beautiful Confederate flag. We will pray for you Louis. May God bless the Confederate soldiers and the flag! Deo Vindice. At 67, Louis Smith says the act is reminiscent of tactics used by the Ku Klux Klan to signal to Black community members that danger was right on their doorstep. Coming from my generation, when the Ku Klux Klan posted a sign or symbol on a black mans door that meant in the coming days they planned to do bodily harm, even up to killing that person, Smith tells Yahoo Lifestyle. Smith is an outspoken political activist in the Summerville, S.C., community. Beyond his role as executive director of the Summerville Community Resource Center, Smith has made a name for himself for fighting against the public display of the Confederate flag in his hometown, going head-to-head with organizations such as the Sons of Confederate Veterans and the former South Carolina Secessionist party. I have a history of fighting them, and Ive basically won every battle that weve fought, Smith tells Yahoo Lifestyle. On June 21, Smith thought it was a joke when a local barber sharp notified him that a Confederate flag had been left on the door of the Summerville Community Resource Center. When Smith arrived, he was angry and upset to find the disgusting flag and equally repugnant note attached to the window next to it, according to his Facebook post. He believes the culprits to be white supremacists. Besides evoking past intimidation methods used by the KKK, Smith says he was also alarmed by the use of deo vindice, the motto of the Confederate States . The Latin phrase meaning, God will vindicate, reflected the belief they were ordained by God protect the Confederate states, says Smith. Story continues A blue sticky note addressed to Louis Smith referencing the Confederate States motto was left on the door of the Summerville Community Resource Center. (Credit: Louis Smith) Living in what he calls the ground zero for slavery, Smith says he views the incident as a serious threat. We live in the Deep South theres codes of conduct in the South that you must adhere to survive. Racism is institutionalized if you look at prisons here, says Smith. For someone to place a confederate flag on a business like this is unacceptable totally...I feel unsafe. Smith reported the incident to the local Summerville police, who investigated into the matter and determined that there was no direct threat in the note, while also acknowledging that it was concerning, reported local station WBCD . The Summerville police department did not respond to Yahoo Lifestyles requests for comment. According to Smith, the police have obtained surveillance footage revealing the perpetrators were a white man and woman. They allegedly proceeded to take selfies in front of the flag before leaving the premises. Smith says local police refuse to release the tape to him. He adds that the man he believes to be involved in the incident has an alarming history, including urinating on a slave monument at the University of North Carolina. This is despicable that they would put a confederate flag in 2019 on a black business, Smith tells Yahoo Lifestyle, adding that South Carolina is one of five states without hate crime laws . And not to say its a hate crime, the powers that be are still perpetuating this myth. Smith left the flag up over the weekend and on Monday to show the Summerville community what had happened at the Community Resource Center. While some community members are ashamed about the incident, others believe that it has been orchestrated, comparing it to the Jussie Smollett incident. However, Smith says he doesnt plan to sit idly by after the event that has made him feel like a second-class citizen. He plans to speak with the Summerville police department and the South Carolina Republican party, in addition to organizing a town hall to discuss how the community should act moving forward. This is a community issue. Were trying to bring the community together, says Smith. Im not going to sit and pray and say forgive them. I am going to stand up to this situation. Hate will never win. Read more from Yahoo Lifestyle: Virginia school named after Confederate general changed to honor Barack Obama New Jersey governor bans Mississippi flag from annual tradition due to its Confederate symbol School district slams racist incidents after student yells 'white power' at reporter, another wears Confederate flag to school Follow us on Instagram , Facebook , and Twitter for nonstop inspiration delivered fresh to your feed, every day. |
Kinder Morgan wins Texas court challenge, removing obstacle to $2 billion gas pipeline
By Liz Hampton
DENVER/HOUSTON (Reuters) - Kinder Morgan Inc can begin work on a $2 billion natural gas pipeline without having the Texas energy regulator approve its proposed route, a state judge ruled on Tuesday.
The decision removes a challenge to the state's licensing process that lets gas pipeline companies determine their own route and acquire land without a landowner's consent. Texas is in the midst of a pipeline-construction boom with multibillion-dollar projects under way to bring shale oil and gas to market.
A Travis County District court ruled the Texas Railroad Commission, the state's oil and gas regulator, is not required to set standards for routing the pipelines or private land-takings, Judge Lora Livingston wrote on Tuesday. The state allows gas pipeline operators that qualify as utilities to use eminent domain to take land for the public good.
"The court finds no authority for the proposition that the legislature has granted authority to the Commission to oversee the rights granted," she wrote. She also granted Kinder Morgan's request to dismiss it from the lawsuit.
A group of Texas landowners and officials had sued to block construction, arguing the oil and gas regulator failed to seek public input or properly supervise the routing of Kinder Morgan's Permian Highway Pipeline, which will carry 2 billion cubic feet per day of natural gas roughly 400 miles (645 km) from West Texas to the U.S. Gulf Coast.
Kinder Morgan had asked the court to throw out the landowners' lawsuit, arguing it was up to the state legislature, not the court, to change the pipeline permitting process.
"The court's finding validates the process established in Texas for the development of natural gas utility projects," Tom Martin, a Kinder Morgan executive, said on Tuesday.
U.S. shale gas production in July is projected to hit a record 81.4 billion cubic feet per day, which would be an 18th consecutive monthly increase. Shale oil could hit 8.52 million barrels per day that same month, according to the U.S. Energy Information Administration.
Landowners argued that the pipeline will cross "sensitive environmental features," such as endangered species habitats, sites of historical significance and residential subdivisions, according to a filing.
The Texas Real Estate Advocacy and Defense Coalition, which advocates for Texas landowner rights, said it was weighing an appeal and additional legal actions in other venues.
The ruling "is unfortunate but not unexpected," said Travis Mitchell, mayor of Kyle, Texas, a co-plaintiff. "We will be working to determine the best path forward. We're certainly not giving up."
A spokeswoman for the Railroad Commission of Texas declined to comment.
(Reporting by Liz Hampton; writing by Gary McWilliams; editing by G Crosse and Lisa Shumaker) |
Calling All At-Home Cooks, Signature Sauces is Searching for the Best Across the U.S.
Calling All At-Home Cooks, Signature Sauces is Searching for the Best Pasta Sauces, Barbecue Sauces, Soups, and Salsas Across the U.S.
Recipe Contest Invites Consumers to Share Their Special Recipes orShow Their Creative Spin on Classic Dishes with 10 $1000 Prizes Awarded to theWinners Across Each Category
INDEPENDENCE, OH / ACCESSWIRE / June 25, 2019 /Signature Sauces, an Ohio-based manufacturer specializing in sauces of all sorts, has announced a recipe contest to celebrate Americans' creativity, passion and traditions by finding the top tried and true recipes from across the country. Focusing on four categories - Pasta Sauce, Barbecue Sauce, Soups, and Salsas - Signature Sauces will choose winners starting June 21 through August 15, 2019 and take the winning recipes on their 2020 Flavor Trends Roadshow.
"Our Flavor Trends Roadshow shares our artisan concepts with colleagues and foodies alike," says Perry Stancato, founder of Signature Sauces. "We're thrilled at the chance to highlight at-home cooks and their winning recipes in our show and potentially bring them to restaurants across the country."
With such a diverse range of categories for submissions, Signature Sauces encourages at-home cooks to provide the recipes that have been a favorite in their homes and share with the masses.The four categories include:
Pasta Sauce-a simple marinara to a hearty meat sauce, there aren't many who don't love a steaming bowl of pasta with homemade pasta sauce on it, no matter what iteration. There is a myriad of ways to make pasta sauce, from a Tex-Mex-infused version to a traditional marinara from New York, break out the saucepan and let's pour it on. The pasta sauce group will have four categories available for submission: Garlic; Marinara; Meat; Unique - a unique spin on pasta sauce such as a special ingredient or twist from a specific region.
Barbecue Sauce-From the great state of Texas' ketchup-based sauce to the tangy white concoction of the Carolinas, Barbecue Sauce is certainly a condiment that has its own geographic spin. Signature Sauceswants to see what kind of saucey 'cue you can do. Recipe contestants can submit for two categories, tomato-based and other (such as vinegar, mustard, etc.).
Soups-talk about regionality, nothing else tells eater exactly where they are on the U.S. map than soup. From a famous clam chowder from Boston to a Cheddar and Cheese Beer Soup from Wisconsin, Signature Sauces wants to sop up all of the best soup recipes from around the country. The soup group has two categories for submission, cream-based and broth-based.
Salsa-salsa literally means sauce in Spanish and hails from the ancient Aztecs. Now one of the most popular condiments in the country, salsa can take on many forms. From spicy to mild, tomato-based to even cilantro based, it's time to chip in and bring the best salsa recipe from the family. Recipe contestants can submit to either the spicy or mild categories for salsa.
"Some of the best-tasting foods are 'Americanized' versions of recipes from other countries," says Stancato. "In fact, something as seemingly simple as a salsa has a variety of different flavor profiles based on the way it has been personalized in home kitchens across America."
Recipes will be based on the following criteria: fifty percent based on taste; twenty-five percent for the contestant's tribute to their recipe creation or the story and tradition of the recipe; and twenty-fivepercent on the ease of recipe/adherence to the guidelines.
The Recipe guidelines for each category include:
Detailed, step-by-step preparation instructions; list each ingredient in exact common U.S. household measurements and order of use in making the recipe; indicate cooking times and number of servings; ingredients list must be 15 ingredients or less; ngredients must be easy to find in grocery stores or online and not cost prohibitive (so no edible gold); fit within one of the four categories; nclude a short story/paragraph or detail of the recipe, and mention if it came from a family recipe or why it fits within a certain region of the United States plus a photo of one's recipe and oneself. Submit as many recipes and to as many categories as one would like.
The winners will be announced August 31 with four pasta sauce category winners; two soup category winners; two barbecue sauce category winners; and two salsa category winners. Each winner will receive $1,000 and an invitation to be featured in the upcoming Signature Sauces 2020 Flavor Trends Road Show.
To submit a recipe and photo and learn more about the contest visit:www.ssrecipecontest. Follow them for continued updates on Instagram @ssrecipecontest_10 and Facebook:www.facebook.com/ssrecipecontest.
About Signature Sauces:
Signature Sauces was born out of passion for food, the fine art of preparing consistent authentic family recipes and the restaurant and foodservice industry. They specialize in developing and creating products that are custom-tailored and consistent in quality and taste in respect to a customers specific needs. Their individual journey as Signature Sauces started as a boutique manufacturing facility and has blossomed into a large-scale food manufacturing operation that provides the same foundation on which they were built: our sincere passion for the fine art of culinary precision within the restaurant and foodservice industry. Learn more atwww.ssrecipecontest.com.
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For more information about Signature Sauces Recipe Contest, contact the company here:
Signature Sauces Recipe ContestEmily Kealey5126381416emily.kealey@conversationpiecepr.comSignature Sauces 7169 E Pleasant Valley Rd, Independence, OH 44131 and Poiema Brands LLC, 2910 Nature Nate Farms, McKinney, TX 75071SOURCE:Signature Sauces
View source version on accesswire.com:https://www.accesswire.com/549911/Calling-All-At-Home-Cooks-Signature-Sauces-is-Searching-for-the-Best-Across-the-US |
What caused this weekend’s BTC price surge? Hourly trading volumes suggest the catalyst was large orders on Bitfinex
Between Friday evening and Saturday afternoon, the price of bitcoin increased by over 10% to breach the $11,000 milestone. Although there has been a lot of speculation as to what may have caused the seemingly spontaneous surge, analysis of the hourly exchange trading volumes implies it was induced by a large investor or set of large investors on Bitfinex.
Timezone: UTC
Source: CryptoCompare
By examining the bitcoin trading volumes at the10 exchangesvetted by Bitwise, we can see that trading activity went up fairly dramatically between Friday 11:00 p.m. UTC (7 p.m. EST) and Saturday 4 a.m. UTC (12 p.m.
Join Genesis nowand continue reading,What caused this weekend’s BTC price surge? Hourly trading volumes suggest the catalyst was large orders on Bitfinex! |
FedEx sues US government over export rules in Huawei case
DALLAS (AP) — A lawsuit filed by FedEx against the U.S. government over export rules follows a dispute over diverted shipments that were intended for Huawei Technologies, the Chinese telecommunications-equipment giant. The lawsuit challenges changes to export rules designed to keep technology out of the hands of entities or people that the U.S. government considers potential risks to national security. In May, the U.S. government added Huawei to a list of entities and people barred from receiving U.S. technology without a special license from the Commerce Department. Shortly after that, Huawei complained about FedEx diverting several company shipments. FedEx apologized to Huawei for the missed deliveries, which it said were accidental. However, China announced that it was investigating FedEx over the matter. The delivery company complains that the 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." FedEx Corp. sued the Commerce Department and Commerce Secretary Wilbur Ross in federal district court in Washington on Monday. It asked the court to block the government from enforcing export controls against it. The Commerce Department said in a statement that it has not reviewed the complaint but looks forward to "defending our role in protecting U.S. national security." FedEx Chairman and CEO Fred Smith said the lawsuit was broader than "the Huawei issue ... which was three packages out of 15 million packages a day." "The Huawei packages were only peripherally involved in this lawsuit that we filed, and in fact it goes back many, many years," Smith said Tuesday on a conference call to discuss the company's quarterly results with analysts. He said the final straw was Friday, when the Commerce Department added five more entities covered by the same rules. On Sunday, the Huawei dispute flared again when the Chinese company complained on Twitter about FedEx blocking shipment of a Huawei phone from the United Kingdom to the U.S. Smith called it a mistake by a junior employee. Story continues "We are expected to be policemen for these export and import controls, and there are about 1,100 entities now on this list," Smith told Fox News. If the company makes a mistake on any shipment, he said, it can be fined $250,000 per piece without having a trial or due process of law. In its lawsuit, FedEx said most packages are sealed when customers drop them off, making it impossible for the company to know the contents. FedEx said it compares names and addresses of shippers and recipients against the government's watch list of restricted groups and people. FedEx wants a so-called safe harbor — a provision that would protect it from being penalized if it didn't know that a particular shipment would violate the export rules. Meanwhile, tension between the U.S. and China over trade, tariffs and the export rules continues to rise. Huawei filed a lawsuit in federal court in Texas to challenge the constitutionality of a law that bars the government and its contractors from using Huawei equipment. FedEx has run afoul of export controls before. Last year, the company agreed to pay $500,000 to settle government allegations that it violated the rules with some shipments to flagged entities in France and Pakistan. Memphis, Tennessee-based FedEx released its latest financial results Tuesday reflecting weakness in its core express business. The company also indicated its profit in the coming year would be squeezed by slower global economic growth and a move to drop an Amazon delivery contract. FedEx shares were down for a second straight day. They lost $4.92, or 3.1%, to close at $155.98 after falling 2.7% on Monday. |
Looking At Goldlion Holdings Limited (HKG:533) From All Angles
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Attractive stocks have exceptional fundamentals. In the case of Goldlion Holdings Limited (HKG:533), there's is a financially-robust company with a a strong history of performance, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at thereport on Goldlion Holdings here.
Over the past year, 533 has grown its earnings by 17%, with its most recent figure exceeding its annual average over the past five years. Not only did 533 outperformed its past performance, its growth also surpassed the Specialty Retail industry expansion, which generated a 12% earnings growth. This is what investors like to see! 533's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that 533 manages its cash and cost levels well, which is a crucial insight into the health of the company. 533 currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
533's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if 533's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the specialty retail industry, 533 is also trading below its peers, relative to earnings generated. This bolsters the proposition that 533's price is currently discounted.
For Goldlion Holdings, there are three key factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for 533’s future growth? Take a look at ourfree research report of analyst consensusfor 533’s outlook.
2. Dividend Income vs Capital Gains: Does 533 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 533 as an investment.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of 533? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is CSE Global Limited's (SGX:544) CEO Paid Enough Relative To Peers?
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Boon Lim has been the CEO of CSE Global Limited (SGX:544) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for CSE Global
According to our data, CSE Global Limited has a market capitalization of S$249m, and pays its CEO total annual compensation worth S$2.1m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at S$644k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of S$135m to S$541m. The median total CEO compensation was S$656k.
It would therefore appear that CSE Global Limited pays Boon Lim more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at CSE Global has changed over time.
Over the last three years CSE Global Limited has shrunk its earnings per share by an average of 56% per year (measured with a line of best fit). In the last year, its revenue is down -2.6%.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
CSE Global Limited has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We examined the amount CSE Global Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
And shareholder returns are decent but not great. So we doubt many shareholders would consider the CEO pay to be particularly modest! Whatever your view on compensation, you might want tocheck if insiders are buying or selling CSE Global shares (free trial).
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
You Only Need $1 To Earn Major Interest on Your Money With This Savings Account
GOBankingRates writes about products and services to help you find the best financial solutions for your needs.GOBankingRates.comcan receive a commission from our affiliate partners when you sign up through our links, but our reporting and recommendations are always independent and objective.
What are you doing with your cash? Well, other than spending it responsibly, right? If you’re like most Americans, you simply keep a balance in your checking account to pay your bills and possibly to contribute to your retirement savings. But unfortunately, like many Americans, you’re probably earning little, if any, interest on the money in your checking account.
Interest checking accounts from many major banks offer just a 0.01% annual percentage rate, which is very close to absolutely nothing. So, instead of keeping your money in your checking account, you could be earning significant interest through a savings account. And if you’re looking to earn big with a savings account, the HSBC Direct Savings account now offers a 2.30% annual percentage yield. That could add up to somenice, extra money in the long run.
Who doesn’t want to make money while doing absolutely nothing? Even though you might think that’s just a dream, you can make it come true with the right savings account. When you open anHSBC Direct Savings account, you’ll earn 2.30% APY on your savings, which equates to an interest rate of 2.28% APR.
The HSBC account is an online-only savings account, which means that you won’t have access to a teller in a branch. Instead, you’ll have to use telephone banking, e-statements and the internet to manage your account. Furthermore, this is a personal account, and it’s not available for business use.
When opening this account, you only need $1, which is the minimum balance for the account. However, there are no effective limits on the amount you can deposit, other than a $350,000 maximum daily online limit and a total maximum of $2 million. More importantly, there are no monthly fees for this account — just another way to keep more money in your pocket.
Find Out:Here’s How the Average Savings Account Interest Rate Compares To Yours
To open an account, you need to be 18 years old and have a Social Security number. You also need to supply your current U.S. residential address and your addresses dating back three years. Finally, you’ll need a valid U.S. ID such as a driver’s license, ID card, passport or permanent resident card (green card).
Once open, you can deposit money using the HSBC Mobile Banking App. You can also use it or your online login to complete online transfers, view, download and print e-statements and receive live chat assistance, if necessary. Through this account, your money is FDIC insured, which is backed up by the full faith and credit of the United States. This means that your account isn’t an investment that is subject to loss; it’s an interest-earning deposit account that’s guaranteed by the U.S. government. Not a bad deal.
Why not consider a savings account that adds to your savings? Why notearn more moneywithout trying? Seriously, why wouldn’t you want to consider this free cash?
According to Moebs Services, an economic research firm that studied data from the Federal Reserve, U.S. consumers maintained historically high balances in their checking accounts in 2018, which averaged $3,673. If you were to deposit that amount in an HSBC Direct Savings account, it would grow to $3,758.38 after one year. This means that you could earn $85.38 in interest. That’s not a fortune, but it’s money you didn’t work for that you’re just leaving on the table if you aren’t earning significant interest on your checking account balance. And if you deposit $8,000, you could earn $185.95 in interest each year.
Opening a savings account will never be exciting or glamorous, but it can offer you the opportunity to earn interest on the money you already have. By taking a closer look at the HSBC Direct Savings account, you could be earning more interest income than you might have thought possible.
Click through to find outhow much Americans have in savings at every age.
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This article originally appeared onGOBankingRates.com:You Only Need $1 To Earn Major Interest on Your Money With This Savings Account |
Hebei Construction Group Corporation Limited (HKG:1727): Will The Growth Last?
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Hebei Construction Group Corporation Limited's (HKG:1727) released its most recent earnings update in April 2019, which showed that the company experienced a small tailwind, leading to a single-digit earnings growth of 8.5%. Below, I've laid out key numbers on how market analysts view Hebei Construction Group's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Hebei Construction Group
Market analysts' prospects for next year seems rather muted, with earnings rising by a single digit 9.4%. The growth outlook in the following year seems much more buoyant with rates arriving at double digit 33% compared to today’s earnings, and finally hitting CN¥1.8b by 2022.
Although it is useful to understand the growth rate year by year relative to today’s figure, it may be more valuable to gauge the rate at which the earnings are growing on average every year. The benefit of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Hebei Construction Group's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 16%. This means, we can presume Hebei Construction Group will grow its earnings by 16% every year for the next couple of years.
For Hebei Construction Group, I've put together three fundamental 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. Valuation: What is 1727 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 1727 is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 1727? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Wayfair employee walkout called over alleged furniture sales to U.S. migrant camp
By Melissa Fares
(Reuters) - Wayfair Inc came under pressure on Tuesday after hundreds of employees were reported to be planning a walkout over the retailer's alleged sale of more than $200,000 in bedroom furniture for a Texas detention facility for migrant children.
Shares of the company fell 5.3% to $144.40 on the New York Stock Exchange.
A Twitter account under the handle @wayfairwalkout, created this month with a following of more than 13,000 including high-profile Democratic U.S. Representative Alexandria Ocasio-Cortez, called for the work stop on Wednesday.
Wayfair, headquartered in Boston, did not immediately respond to a request for comment. The @wayfairwalkout account referred Reuters to the company and Reuters was not able to confirm it was created by Wayfair employees.
Democratic presidential candidate Senator Elizabeth Warren said on Twitter: "I stand with hundreds of @Wayfair employees who are planning to stage a walkout at their Boston headquarters tomorrow. The safety and well-being of immigrant children is always worth fighting for."
An image of a letter to Wayfair leaders from employees said that an order for more than $200,000 of bedroom furniture was destined for a facility in Carrizo Springs, Texas that would house migrant children seeking asylum.
Criticism has mounted this week over the detention of migrant children in overcrowded, squalid conditions.
"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," @wayfairwalkout tweeted.
It demanded that Wayfair stop selling to migrant detention camps and that it give profits, which they claim amount to $86,000, to a Texas-based non-profit agency offering legal services to immigrants.
Screenshots on Twitter of a letter to employees that said it was from the retailer's "leadership team" read, "...We believe it is our business to sell to any customer who is acting within the laws of the countries within which we operate."
The walkout, scheduled to take place on Wednesday at 1:30 p.m. ET in Boston's Copley Square, is the latest example of employees protesting workplace social issues.
In June 2018, Alphabet Inc's Google faced internal upheaval over a contract to help the U.S. military analyse aerial drone imagery.
The hashtag "#wayfairwalkout" was top trending in the United State on Twitter as of Tuesday evening.
"Wayfair workers couldn’t stomach they were making beds to cage children," tweeted Ocasio-Cortez. "They asked the company to stop. CEO said no. Tomorrow, they're walking out."
(Reporting by Melissa Fares in New York, editing by Peter Henderson and Cynthia Osterman) |
U.S. sues ex-Trump aide Omarosa, alleges failure to file required financials
By Jonathan Stempel (Reuters) - The United States on Tuesday sued Omarosa Manigault Newman, the former aide to President Donald Trump and reality television star, saying she knowingly failed to file a required public financial disclosure report after she left the White House. The government is seeking a civil fine of up to $50,000 from Omarosa, who spent 11 months as director of communications in the White House Office of Public Liaison before her December 2017 dismissal. Omarosa, as she is typically known, was accused of violating the Ethics in Government Act by not filing the report, which was required because her salary exceeded $124,406, despite several oral and written reminders from White House ethics lawyers. John Phillips, a lawyer for Omarosa, in an emailed statement called the lawsuit "premature, retaliatory and yet another attempt to silence a dissenting voice." He said Omarosa had not filed the report because the White House withheld documents she needed to complete it, and that it was "untrue" to suggest her failure to file was knowing and willful, as the complaint alleged. Omarosa shot to fame as a contestant in the first season of Trump's reality TV show "The Apprentice" in 2004, and was one of Trump's most visible African-American supporters during his successful 2016 presidential run. But she had what appeared to be an ambiguous role at the White House, where the New York Times said she was a difficult colleague and had been on former chief of staff John Kelly's "no fly list" of aides he deemed unfit to attend serious meetings. After leaving the White House, she appeared on the CBS reality show "Big Brother," drawing attention for condemning Trump and his administration. Omarosa also published a memoir, "Unhinged: An Insider's Account of the Trump White House," last August. According to the complaint filed with the federal court in Washington, D.C., Omarosa's financial disclosure report had been due by Jan. 18, 2018, one month after she left the White House. Story continues The complaint said the White House later referred the matter to the Department of Justice, and the lawsuit was authorized on March 17, 2019, nearly a year after Omarosa had twice acknowledged receiving reminders to file the report. The case is U.S. v. Manigault Newman, U.S. District Court, District of Columbia, No. 19-01868. (Reporting by Jonathan Stempel in New York; Editing by Leslie Adler, Phil Berlowitz and Richard Chang) |
How Many Oversea-Chinese Banking Corporation Limited (SGX:O39) Shares Did Insiders Buy, In The Last Year?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sellOversea-Chinese Banking Corporation Limited(SGX:O39), you may well want to know whether insiders have been buying or selling.
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Oversea-Chinese Banking
In the last twelve months, the biggest single purchase by an insider was when Non-Executive & Non-Independent Director Tih Lee bought S$2.5m worth of shares at a price of S$10.53 per share. That means that an insider was happy to buy shares at around the current price of S$11.25. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders paid S$3.1m for 297k shares purchased. In the last twelve months Oversea-Chinese Banking insiders were buying shares, but not selling. 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 Oversea-Chinese Banking. Overall, nine insiders shelled out S$3.1m for shares in the company -- and none sold. 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Oversea-Chinese Banking insiders own 0.4% of the company, currently worth about S$169m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Oversea-Chinese Banking. Nice! Of course,the future is what matters most. So if you are interested in Oversea-Chinese Banking, you should check out thisfreereport on analyst forecasts for the company.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
2020 hopeful Elizabeth Warren pushes election security plan
WASHINGTON (AP) — Democratic presidential candidate Elizabeth Warren on Tuesday pitched a sweeping overhaul of the nation's systems for securing its elections, including the creation of a "uniform federal ballot" and the replacement of the independent commission that currently helps administer the vote. Warren's latest in a series of hefty policy proposals — which have become a trademark as she climbs in the Democratic 2020 presidential primary polls — arrived the day before she's set to appear alongside nine rivals in the first of two highly anticipated debates in Miami. The Massachusetts senator's new election security plan gives her fresh fuel as she makes her case to a Democratic base that's keen to choose a nominee who's best prepared to defeat President Donald Trump next year. At the heart of Warren's election security platform is the establishment of federal rules for the administration of voting, a task that's currently led by state and local officials. Warren would replace the Election Assistance Commission, created in 2002 to help states in holding their votes, with a new independent agency to safeguard balloting from online interference and ensure states comply with the federal standards she's urging. Warren promoted her election security plan at the top of a town hall in Miami on Tuesday night. "In a democracy, there's nothing that's more important than voting, and yet we treat it like one of the least important parts of our democracy. We make it inconvenient to vote," she told the crowd, citing the "long lines, confusing ballots, old equipment" and what she called "racist voter suppression" some Americans experience when trying to vote. Warren noted that few reforms have been implemented since it was revealed that the Russian government interfered in the 2016 presidential race. She told the crowd that "we need to step up our game on protecting our vote." Story continues "So I've got a plan for that," she added, to huge cheers from the crowd. Beyond the use of a systematic, federally mandated ballot, Warren is proposing requirements for "automatic and same-day registration, early voting, and vote by mail," she wrote, besides the designation of Election Day as a federal holiday. The redrawing of congressional districts would fall to independent commissions under her plan, an attempt to alleviate concerns about gerrymandering that strengthens a majority party's control. To help ensure state compliance, Warren's plan would offer to fully fund the elections of states and localities that adhere to her new federal standards, adding extra funding for those that "achieve high percentage voter turnout." Warren is rolling out her proposal as public worries about the integrity of future balloting remain high after Russian interference efforts during the 2016 election. Polling released last week by The Associated Press-NORC Center for Public Affairs Research found that a majority of Americans describe themselves as extremely or very concerned about foreign interference in forthcoming elections . Warren, who launched her presidential campaign in February, projects that her election security agenda would cost $20 billion over 10 years, using money raised by her proposed tax on the fortunes of the wealthiest 0.1% of American households. Some experts have raised questions about whether that tax would raise as much money as Warren's campaign estimates, citing concerns about the IRS' ability to effectively collect it. ___ Associated Press writer Alexandra Jaffe contributed to this report from Miami. |
Recreational Marijuana Is Now Legal in 11 States
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 Illinoisalso 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. Thelaw provides for cannabis purchasesby 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 marijuanacould 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.
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 planaddresses those concernswith 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 Columbiahave 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 inNew YorkandNew Jersey, but both fizzled late this spring. Despite a statewide listening tour on the issue byPennsylvania’s lieutenant governorlast 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.
—California putsillegal pot shops(and shoppers) on notice
—Congress weighsnew banking lawsthat could light up the pot business
—Make marijuana legal? Gen X, millennials, and Generation Z say yes.Most boomers? Nope
—The weed industry’s biggest secret?What everyone gets paid
—Listen to our new audio briefing,Fortune 500 Daily
Follow Fortune on Flipboardto stay up-to-date on the latest news and analysis. |
A Look At The Fair Value Of Grand Ocean Advanced Resources Company Limited (HKG:65)
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Does the June share price for Grand Ocean Advanced Resources Company Limited (HKG:65) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. I will be using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
View our latest analysis for Grand Ocean Advanced Resources
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF (HK$, Millions)", "2019": "HK$42.80", "2020": "HK$40.27", "2021": "HK$38.85", "2022": "HK$38.12", "2023": "HK$37.85", "2024": "HK$37.89", "2025": "HK$38.14", "2026": "HK$38.55", "2027": "HK$39.07", "2028": "HK$39.68"}, {"": "Growth Rate Estimate Source", "2019": "Est @ -9.3%", "2020": "Est @ -5.91%", "2021": "Est @ -3.53%", "2022": "Est @ -1.87%", "2023": "Est @ -0.71%", "2024": "Est @ 0.1%", "2025": "Est @ 0.67%", "2026": "Est @ 1.07%", "2027": "Est @ 1.35%", "2028": "Est @ 1.55%"}, {"": "Present Value (HK$, Millions) Discounted @ 8.36%", "2019": "HK$39.50", "2020": "HK$34.30", "2021": "HK$30.53", "2022": "HK$27.65", "2023": "HK$25.34", "2024": "HK$23.41", "2025": "HK$21.75", "2026": "HK$20.29", "2027": "HK$18.98", "2028": "HK$17.78"}]
Present Value of 10-year Cash Flow (PVCF)= HK$259.53m
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2%. We discount the terminal cash flows to today's value at a cost of equity of 8.4%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = HK$40m × (1 + 2%) ÷ (8.4% – 2%) = HK$637m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= HK$HK$637m ÷ ( 1 + 8.4%)10= HK$285.58m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is HK$545.11m. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of HK$0.36. Relative to the current share price of HK$0.38, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Grand Ocean Advanced Resources as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.4%, which is based on a levered beta of 0.955. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Grand Ocean Advanced Resources, There are three additional aspects you should look at:
1. Financial Health: Does 65 have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of 65? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every HK stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Why Uniti Group Stock Plunged Today
Shares of telecom infrastructure-focused real estate investment trust (REIT)Uniti Group(NASDAQ: UNIT)fell more than 12% on Tuesday, following a debt sale announcement.
Uniti Fiber Holdings, a subsidiary of Uniti Group, plans to sell as much as $345 million of exchangeable senior notes. The notes will be exchangeable into cash, shares of Uniti Group stock, or a combination of the two. Uniti Group will also guarantee the notes.
Uniti intends to use part of the proceeds of the notes offering to pay down roughly $100 million of outstanding debt.
As part of the notes offering, Uniti intends to enter into hedge transactions with some of the initial purchasers to reduce the potential dilution of its stock upon any exchange of the notes. However, Uniti also intends to enter intowarranttransactions that could dilute shareholders, should owners of the warrants choose to exercise them in the future.
Image source: Getty Images.
With the stock down sharply today, investors appear displeased with the terms of the debt sale and the potential dilution it could bring about. But Uniti Group is struggling to overcome thebankruptcy of its largest customer, and it probably didn't have the leverage to negotiate better terms with creditors. It's a difficult position to be in, but if the cash Uniti Group receives as part of the debt sale helps to put it on stronger financial footing, it could turn out to be the correct long-term move for the company.
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Micron Resumes Some Huawei Shipments Despite Trump Blacklist
(Bloomberg) -- Micron Technology Inc., the largest U.S. maker of computer memory chips, said it resumed some shipments to China’s Huawei Technologies Co., appearing to find a way around an export ban that threatens growth for the semiconductor industry.
Micron, which explained the decision Tuesday as it reported earnings, studied the export restrictions and determined “a subset” of products it sells to Huawei are not subject to the rules, Chief Executive Officer Sanjay Mehrotra said on a conference call. That sent stock surging as much as 11% in extended trading.
Micron was forced to halt shipments to one of its largest customers after the Trump administration banned Huawei from buying American technology. Micron makes chips used as the main memory in computers and as storage in mobile devices. Sales to the Chinese telecommunications company generate about 13% of Micron’s annual revenue, according to data compiled by Bloomberg.
“We began those shipments in the last two weeks,” Mehrotra said. The company completed its own review of the various and complex restrictions on supplying the Chinese company and made its own decision, he said, without providing further specifics.
Micron’s announcement helped other chip shares gain. The Boise, Idaho-based company’s stock had been among the most hardest hit this year by concern that a trade war between would cut U.S. companies off from their largest market, China. Mehrotra also said there are signs that demand is increasing as his customers work through their stockpiles of unused parts.
Micron may be the first company to go public about continuing some level of business with Huawei after looking closely at the rules, according to Cross Research analyst Steven Fox. Even when companies have headquarters in the U.S., they may be able, through ownership of overseas subsidiaries and operations, to classify their technology as foreign, he said.
“It’s one of those things that’s very hard to calculate,” Fox said. “There’s a partial amount of shipments that you should think about, not just with Micron, but with other companies in the supply chain too, as continuing.”
Micron and others may be taking advantage of a loophole, according to Kevin Cassidy, an analyst at Stifel Nicolaus & Co. If less than 25% of the technology in a chip originates in the U.S., then it’s not covered by the ban, he said. That could lead to the transfer of patents to overseas entities, something the U.S. government would oppose, he said.
Cassidy said he’s concerned that President Donald Trump’s administration might see the resumption of shipments to Huawei as undermining its goal of putting pressure on the Chinese in trade negotiations and take other actions.
The U.S. Senate Foreign Relations Committee passed a resolution Tuesday designating Huawei and fellow Chinese equipment maker ZTE Corp. as threats to national security.
Mehrotra has been telling investors that a much broader set of customers will help insulate the industry from the brutal downturns that have wiped out profitability in the past. He said that data-center owners, such as Alphabet Inc.’s Google and Amazon.com Inc.’s AWS, who had cut orders as they worked through stockpiles of unused components, are now starting to order again.
Earlier, Micron Chief Financial Officer David Zinsner said the company’s revenue will be $4.5 billion, plus or minus $200 million, in the period ending in August. Analysts, on average, projected $4.56 billion. Micron reported sales fell 39% to $4.79 billion in the fiscal third quarter, topping analysts’ estimates of $4.68 billion.
Profit, excluding certain items, was $1.05 a share in the period ended May 30. Analysts, on average, estimated 78 cents a share. The company projected adjusted profit of 45 cents a share, plus or minus 7 cents, in the current quarter. Analysts estimated 63 cents a share.
Last quarter, the company said it would idle 5% of production for DRAM and NAND memory chips because of weaker demand and reduce its planned capital expenses in the fiscal year to about $9 billion. Micron said Tuesday it intends to “meaningfully” reduce its spending on new plants and equipment in its fiscal year 2020, in order to align increases in supply with demand levels.
(Updates with comments from analyst in the sixth paragraph.)
To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.net
To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew Pollack, Alistair Barr
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
With A -9.7% Earnings Drop, Did ANI Integrated Services Limited (NSE:AISL) Really Underperform?
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In this commentary, I will examine ANI Integrated Services Limited's (NSE:AISL) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the professional services industry performed. As an investor, I find it beneficial to assess AISL’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
View our latest analysis for ANI Integrated Services
AISL's trailing twelve-month earnings (from 31 March 2019) of ₹52m has declined by -9.7% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 31%, indicating the rate at which AISL is growing has slowed down. What could be happening here? Let's examine what's going on with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, ANI Integrated Services has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 11% exceeds the IN Professional Services industry of 7.4%, indicating ANI Integrated Services has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for ANI Integrated Services’s debt level, has declined over the past 3 years from 43% to 17%.
ANI Integrated Services's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors influencing its business. I suggest you continue to research ANI Integrated Services to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for AISL’s future growth? Take a look at ourfree research report of analyst consensusfor AISL’s outlook.
2. Financial Health: Are AISL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Will Champion Iron Limited's (ASX:CIA) Earnings Grow In The Next 12 Months?
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As Champion Iron Limited (ASX:CIA) announced its earnings release on 31 March 2019, analysts seem highly optimistic, with earnings expected to more than double in the upcoming year, against the historical 5-year average growth rate of 27%. Presently, with latest-twelve-month earnings at CA$83m, we should see this growing to CA$189m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you canresearch its fundamentals here.
View our latest analysis for Champion Iron
The longer term view from the 8 analysts covering CIA is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for CIA, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of CA$83m and the final forecast of CA$157m by 2022, the annual rate of growth for CIA’s earnings is 9.6%. EPS reaches CA$0.27 in the final year of forecast compared to the current CA$0.20 EPS today. Margins are currently sitting at 13%, which is expected to expand to 23% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Champion Iron, I've compiled three key aspects you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is Champion Iron 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 Champion Iron is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Champion Iron? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Women's World Cup: Hope Solo said USWNT 'got lucky' against Spain
The U.S. women’s national team snuck past Spain 2-1 in the round of 16 at the World Cup on Monday in Reims, France, thanks to a pair of penalty kicks, to reach the quarterfinals. Former goalie Hope Solo, however, isn’t giving the United States much credit for the win. “The United States got lucky against Spain,” Solo wrote in The Guardian. “They didn’t score from open play and their second penalty was very soft — if it was a penalty at all.” Team captain Megan Rapinoe scored both goals for the United States, each on controversial penalties. The second penalty in the 70th minute, which ended up deciding the game, triggered a lengthy VAR review after Rose Lavelle went down in the penalty box after minimal contact — and was by far the more controversial of the two. #WWCTelemundo ¡Polémico penal! después de ser revisado por el VAR es penal a favor de #USA Falta sobre @roselavelle pic.twitter.com/ZPEJgp6HXu — Telemundo Deportes (@TelemundoSports) June 24, 2019 While Solo praised Rapinoe for converting both penalties, she was confused as to why Alex Morgan went to take the second penalty, but then backed off after the review. “That showed she was off her game,” the longtime U.S. goalkeeper wrote . “Spain put her on the floor a few times early in the match and she didn’t overcome that. For her to be considered one of the best forwards she needs to step up and put that penalty away when she had the opportunity. Alex needs to score when it matters.” Now, Solo made sure to credit Spain, too — a program she feels can actually win the World Cup in 2023. Their talent, she said, should not have shocked the United States one bit. Story continues “Spain’s quality should not have been a surprise,” Solo wrote . “If you’d been properly prepared and watched their recent games — and then re-watched their games — you would know that this team was going to cause the U.S. trouble, and could beat them. “Spain have a quality team, and Jorge Vilda is an excellent coach. He has demanded the team have fantastic fitness levels and even though they play possession-oriented soccer they know when to go direct.” The win on Monday for the United States sets up a quarterfinal match against France in Paris — which has the potential to become the most expensive Women’s World Cup game ever. While the Americans entered the tournament as favorites to repeat, France had the second-best odds to win, according to FiveThirtyEight. With France being the host nation, the matchup is likely to be even more exciting. “What will add to Friday’s quarterfinal is that no one knows what to expect — from France or the U.S.,” Solo wrote . “The USA can’t prepare anything radical for France in just three days, so on Friday they will give us what they’ve got ... As the host nation, (France has) the weight of their country on their shoulders. We don’t yet know if that expectation is going to be an extra player for France — or the U.S.” Former USWNT goalie Hope Solo said the United States "got lucky" in their World Cup win against Spain on Monday, and she doesn't know what to expect from Friday's quarterfinals match against France. (Charlotte Wilson/Getty Images) 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 |
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