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Introducing Rosier (EBR:ENGB), The Stock That Dropped 30% In The Last Five Years Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Ideally, your overall portfolio should beat the market average. But in any portfolio, there will be mixed results between individual stocks. So we wouldn't blame long termRosier SA(EBR:ENGB) shareholders for doubting their decision to hold, with the stock down 30% over a half decade. It's down 2.1% in the last seven days. View our latest analysis for Rosier Rosier isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. In the last five years Rosier saw its revenue shrink by 8.6% per year. That's definitely a weaker result than most pre-profit companies report. It seems pretty reasonable to us that the share price dipped 6.9% per year in that time. This loss means the stock shareholders are probably pretty annoyed. It is possible for businesses to bounce back but as Buffett says, 'turnarounds seldom turn'. You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow). Take a more thorough look at Rosier's financial health with thisfreereport on its balance sheet. While the broader market lost about 4.3% in the twelve months, Rosier shareholders did even worse, losing 12%. 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 6.9% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on BE 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.
Former hostages criticise US treatment of migrant children: ‘The Taliban gave me toothpaste & soap’ The federal government told a panel of Ninth Circuit appellate judges last week that US border detention facilities are "safe and sanitary," as required by law, even though migrant children are denied soap, toothbrushes and dark places to sleep. Judge William Fletcher called the position of Sarah Fabian, a senior attorney from the Office of Immigration Litigation, "inconceivable." Senior US Circuit Judge A Wallace Tashima told the government attorney, "If you don't have a toothbrush, if you don't have soap, if you don't have a blanket, it's not safe and sanitary." Ms Fabian's argument spread rapidly across the internet - and so did several tweets supporting the notion that the United States treats migrant detainees less humanely than foreign pirates and the Taliban treat their captives. American journalist Michael Scott Moore, abducted in 2012 while reporting in Somalia , watched Ms Fabian argue that minimal necessities, like toiletries and sleeping conditions, were not essential to meet minimum "safe and sanitary" standards. "That was - let's say - below my experience in Somalia," he told The Washington Post on Tuesday of his more than two years in captivity. "The conditions were about as miserable as you could imagine," he said, describing a barren and concrete prison house. Often there was no electricity, he said, "but we had certain minimum things that kept it from being completely wretched." He said he was given toothpaste, soap, a daily shower and a foam mattress. Recent reports have surfaced describing US border detainees held in cages of chain-link fencing, sleeping on concrete and covered with blankets made of aluminium foil, allegations that Customs and Border Protection officials dispute. On Tuesday, the agency said that children in custody receive "continuous access to hygiene products and adequate food" while awaiting shelter placement. Story continues The executive editor of the New Yorker , David Rhodes, contributed to the online conversation, too. "The Taliban gave me toothpaste & soap," he wrote on Twitter , drawing from the seven months he spent as a hostage of the Taliban, a group known for abusing captives; the online thread of former prisoners has been liked nearly half a million times. Washington Post Global opinions writer Jason Rezaian, who was held in Iranian custody for a year and a half and has an ongoing lawsuit against the Iranian government, also responded on Twitter. "I felt if I didn't chime in, it would be the height of hypocrisy," Mr Rezaian told The Post on Tuesday, calling US treatment of children at the border misaligned with "what this country stands for." "The government is treating them like they're statistics, 'the other' and not deserving of basic humanity." From the first day in captivity, Mr Rezaian was permitted to shower regularly. He was also given a toothbrush and toothpaste. Mr Rezaian asked, "If we're going to treat the most vulnerable people this way, what does that say about our actual values?" The case heard on Tuesday stems from a motion filed under the Obama administration . In part, it argued that Customs and Border Protection was holding children in detention facilities that were not "safe and sanitary," in violation of a 1997 precedent. The Trump administration , however, opted to bring the appeal, asking the panel of three judges to condone current custody conditions. The Washington Post
IMF's Lagarde says West Bank, Gaza growth must be focused on jobs MANAMA (Reuters) - Growth in the West bank and Gaza must be focused on jobs, the head of the International Monetary Fund said on Wednesday, at the start of a conference on the Trump administration's $50 billion economic plan for Israeli-Palestinian peace. Business leaders and politicians have gathered in Bahrain to discuss the plan that Washington says is vital to ending the decades-old Israeli-Palestinian conflict, but which Palestinian leaders have dismissed as pointless without a political solution. "One of the really good aspects of the plan ... is that it identifies some of the sectors, some of the industrial and economic sectors, that will be conducive to jobs," IMF managing director Christine Lagarde said during the opening session. "It cannot be any kind of growth in the West Bank and Gaza, it needs to be job intensive," she added, listing agriculture, tourism and construction as sectors that "will absorb a lot of labour". The IMF expects the Palestinian economy to contract by 1.6% this year and says unemployment stands at 30% in the West Bank and 50% in Gaza. "There is an economic plan, there is urgency: it is a question of making sure that the momentum is sustained," Lagarde said. The IMF has been operating in the West Bank and Gaza since 1995, providing policy advice to the Western-backed Palestinian Authority. (Reporting by Matt Spetalnick, Davide Barbuscia and Lisa Barrington; Editing by Andrew Heavens)
Do Institutions Own Rosier SA (EBR:ENGB) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in Rosier SA (EBR:ENGB) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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. Rosier is a smaller company with a market capitalization of €36m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about ENGB. View our latest analysis for Rosier Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors. 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. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Rosier, for yourself, below. Rosier is not owned by hedge funds. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Shareholders would probably be interested to learn that insiders own shares in Rosier SA. In their own names, insiders own €1.8m worth of stock in the €36m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checkingif those insiders have been buying. With a 17% ownership, the general public have some degree of sway over ENGB. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. We can see that Private Companies own 77%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. It's always worth thinking about the different groups who own shares in a company. But to understand Rosier better, we need to consider many other factors. Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow. Of 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.
Why Income Investors Should Have Bouygues SA (EPA:EN) In Their Portfolio Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Bouygues SA (EPA:EN) is a true Dividend Rock Star. Its yield of 5.3% makes it one of the market's top dividend payer. In the past ten years, Bouygues has also grown its dividend from €1.6 to €1.7. Below, I have outlined more attractive dividend aspects for Bouygues for income investors who may be interested in new dividend stocks for their portfolio. View our latest analysis for Bouygues It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: • It is paying an annual yield above 75% of dividend payers • It has paid dividend every year without dramatically reducing payout in the past • Its has increased its dividend per share amount over the past • It is able to pay the current rate of dividends from its earnings • It has the ability to keep paying its dividends going forward The company's dividend yield stands at 5.3%, which is high for Construction stocks. But the real reason Bouygues stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income. Reliability is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. EN has increased its DPS from €1.6 to €1.7 in the past 10 years. It has also been paying out dividend consistently during this time, as you'd expect for a company increasing its dividend levels. This is an impressive feat, which makes EN a true dividend rockstar. Bouygues has a trailing twelve-month payout ratio of 51%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 54% which, assuming the share price stays the same, leads to a dividend yield of 5.4%. Furthermore, EPS is forecasted to fall to €2.91 in the upcoming year. When considering the sustainability of dividends,it is also worth checking the cash flow of a company. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios. Investors of Bouygues can continue to expect strong dividends from the stock. With its favorable dividend characteristics, if high income generation is still the goal for your portfolio, then Bouygues is one worth keeping around. However, given this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I've compiled three important factors you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for EN’s future growth? Take a look at ourfree research report of analyst consensusfor EN’s outlook. 2. Valuation: What is EN worth today? Even if the stock is a cash cow, it's not worth an infinite price. Theintrinsic value infographic in our free research reporthelps visualize whether EN is currently mispriced by the market. 3. Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out 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.
Don Lemon slams Trump’s anti-immigrant rhetoric CNN ’s Don Lemon pulled no punches as he and Chris Cuomo discussed the type of xenophobic rhetoric used by some to demonize immigrants. On multiple occasions , Donald Trump has pushed the idea that undocumented immigrants are responsible for the plight of working-class Americans, but Lemon isn’t buying it. Earlier this year in the State of the Union address, Trump said, “Working-class Americans are left to pay the price for mass illegal immigration: reduced jobs, lower wages, overburdened schools, hospitals that are so crowded you can’t get in, increased crime and a depleted social safety net.” As Cuomo was making the case that a lot of Americans believe this to be true, Lemon called the idea as a whole, to paraphrase, BS. “You know that’s not right,” Lemon went on. “You can’t say it’s harder for you because somebody else is coming in. It's not how it works. That’s just not how it works. It's a lie. That is people trading on fear for political purpose.” Lemon also shared his thoughts on why Trump seems only to be focused of stopping illegal immigration at the southern border rather than focusing on visa overstays, which have exceeded illegal border crossings for seven consecutive years . For Lemon, it was simple. “Because they’re not brown. They’re not the brown menace as he casts them,” Lemon said, adding, “Because people who come from airplanes look like him.” CNN Tonight With Don Lemon airs weeknights at 10 p.m. on CNN . Watch Simon Cowell clash with an AGT contestant: ‘You are getting on my nerves’: Read more from Yahoo Entertainment: ‘Songland’s’ Shane McAnally jokes: ‘My name isn’t George and I’m not straight!’ Rosie O’Donnell wishes Meghan McCain ‘wouldn’t be mean to Joy Behar’ Woman, 42, makes history as first mom to complete ‘American Ninja Warrior’ course Tell us what you think! Hit us up on Twitter , Facebook or Instagram , or leave your comments below. And check out our host, Kylie Mar, on Twitter , Facebook or Instagram . Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter.
Should Investors Buy Bouygues SA (EPA:EN) And Lock In The 5.3% Dividend Yield? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you are an income investor, then Bouygues SA (EPA:EN) should be on your radar. Bouygues SA, together with its subsidiaries, operates in the construction, telecom, and media sectors in France and internationally. Over the past 10 years, the €12b market cap company has been growing its dividend payments, from €1.6 to €1.7. Currently yielding 5.3%, let's take a closer look at Bouygues's dividend profile. See our latest analysis for Bouygues It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically: • It is paying an annual yield above 75% of dividend payers • It has paid dividend every year without dramatically reducing payout in the past • Its has increased its dividend per share amount over the past • It can afford to pay the current rate of dividends from its earnings • It has the ability to keep paying its dividends going forward Bouygues's dividend yield stands at 5.3%, which is high for Construction stocks. But the real reason Bouygues stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income. If there's one type of stock you want to be reliable, it's dividend stocks and their stable income-generating ability. EN has increased its DPS from €1.6 to €1.7 in the past 10 years. It has also been paying out dividend consistently during this time, as you'd expect for a company increasing its dividend levels. This is an impressive feat, which makes EN a true dividend rockstar. The company currently pays out 51% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect EN's payout to remain around the same level at 54% of its earnings. Assuming a constant share price, this equates to a dividend yield of around 5.4%. Moreover, EPS is forecasted to fall to €2.91 in the upcoming year. When assessing the forecast sustainability of a dividendit is also worth considering the cash flow of the business. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios. Investors of Bouygues can continue to expect strong dividends from the stock. With its favorable dividend characteristics, if high income generation is still the goal for your portfolio, then Bouygues is one worth keeping around. However, given this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I've compiled three essential factors you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for EN’s future growth? Take a look at ourfree research report of analyst consensusfor EN’s outlook. 2. Valuation: What is EN worth today? Even if the stock is a cash cow, it's not worth an infinite price. Theintrinsic value infographic in our free research reporthelps visualize whether EN is currently mispriced by the market. 3. Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out 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.
Here's Why I Think Epiroc (STO:EPI A) Is An Interesting Stock Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. And in their study titledWho Falls Prey to the Wolf of Wall Street?'Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes. So if you're like me, you might be more interested in profitable, growing companies, likeEpiroc(STO:EPI A). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed. View our latest analysis for Epiroc 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. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. As a tree reaches steadily for the sky, Epiroc's EPS has grown 18% each year, compound, over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling. I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Epiroc maintained stable EBIT margins over the last year, all while growing revenue 24% to kr40b. That's a real positive. You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image. Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want tocheck this interactive graph of professional analyst EPS forecasts for Epiroc. Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. However, small purchases are not always indicative of conviction, and insiders don't always get it right. The good news for Epiroc shareholders is that no insiders reported selling shares in the last year. With that in mind, it's heartening that Jörgen Ekelöw, the Senior Vice President & General Counsel of the company, paid kr201k for shares at around kr91.20 each. You can't deny that Epiroc has grown its earnings per share at a very impressive rate. That's attractive. The growth rate whets my appetite for research, and the insider buying only increases my interest in the stock. To put it succinctly; Epiroc is a strong candidate for your watchlist. Of course, identifying quality businesses is only half the battle; investors need to know whether the stock is undervalued. So you might want to consider thisfreediscounted cashflow valuationof Epiroc. The good news is that Epiroc is not the only growth stock with insider buying. Here'sa a list of them... with insider buying in the last three months! Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Bitcoin Market Dominance Climbs to Over 60% - Highest in Over 2 Years Bitcoin’s (BTC) parabolic advance over $12,000 has taken its market dominance above 60% for the first time since April 2017, data fromCoinMarketCapconfirmed on June 26. Following itsrapid appreciationin recent days, the bitcoin price reached levels not seen since immediately after the end of its 2017 bull run. The successes have come at the expense of altcoins, which have so far failed to produce similar performance. As a result, BTC dominance of the overallcryptocurrencymarket cap is now 62% - more than at any time in the past two years. Bitcoin’s market cap now stands at $226 billion out of a total crypto cap of $365 billion. On the back of 12.5% daily gains at press time, BTC/USD is outperforming even the next best option in the top ten cryptocurrencies, ethereum (ETH). The latter put in 6.2% returns in the same period, its market cap still spiking above $35 billion for the first time since August. Bitcoin commentators rejoiced at the latest dominance figures, with theTwitteraccount known as Armin van Bitcoin adding he distrusted CoinMarketCap and that the actual number was closer to 95%. “If a coin is centralized, premined, has low trading volume, isn't listed on more than one exchange or is pegged to (Bitcoin) only trading, it's market cap is meaningless. Most coins fit in that criteria,” heexplained. In other words, while Bitcoin is a longstanding, established cryptocurrency, the potential amount of new altcoins is virtually limitless, which can distort the overall market capitalization index. Earlier, Cointelegraphreportedon a technical bitcoin price metric which suggested a fair price for the cryptocurrency by the end of 2019 should be around $21,000. This would beat its 2017 all-time high by around $1,000. • Bitcoin Breaks $13,000 As Rally Continues • Bitcoin Price Could See $20K in Two Weeks - $100K This Year, Predicts Market Analyst • 6 Surprising Takeaways From Bitcoin’s 2019 Bull Run • Genesis Capital: Institutional Activity in Crypto Up 300% in 12 Months
Are EQS Group AG's (ETR:EQS) Interest Costs Too High? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While small-cap stocks, such as EQS Group AG (ETR:EQS) with its market cap of €98m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Given that EQS is not presently profitable, it’s crucial to assess the current state of its operations and pathway to profitability. The following basic checks can help you get a picture of the company's balance sheet strength. However, this is not a comprehensive overview, so I’d encourage you todig deeper yourself into EQS here. EQS's debt levels have fallen from €12m to €11m over the last 12 months , which also accounts for long term debt. With this reduction in debt, the current cash and short-term investment levels stands at €1.3m to keep the business going. Moreover, EQS has generated cash from operations of €4.3m during the same period of time, resulting in an operating cash to total debt ratio of 39%, indicating that EQS’s operating cash is sufficient to cover its debt. At the current liabilities level of €19m, it seems that the business may not be able to easily meet these obligations given the level of current assets of €7.3m, with a current ratio of 0.39x. The current ratio is the number you get when you divide current assets by current liabilities. EQS is a relatively highly levered company with a debt-to-equity of 42%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. But since EQS is presently unprofitable, sustainability of its current state of operations becomes a concern. Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate. EQS’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. However, its lack of liquidity raises questions over current asset management practices for the small-cap. Keep in mind I haven't considered other factors such as how EQS has been performing in the past. You should continue to research EQS Group to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for EQS’s future growth? Take a look at ourfree research report of analyst consensusfor EQS’s outlook. 2. Valuation: What is EQS 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 EQS 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.
India's May steel exports drop to lowest in three years By Neha Dasgupta NEW DELHI (Reuters) - India's finished steel exports in May fell to their lowest in three years as shipments to traditional markets in the European Union (EU) and Nepal shrank, preliminary government data reviewed by Reuters showed. India exported 319,000 tonnes of finished steel in May, down 28% from the same month last year and the lowest level since April 2016, the data showed. Steel exports to the EU dropped 55% in May, led by fewer shipments to Italy, Belgium and Spain, which together made up about 80% of India's overall exports to the region. That comes amid 'safeguard' measures by the EU that are designed to limit incoming steel and prevent a surge of imports as a result of Washington's 25% import tariffs, which have effectively closed the U.S. market. Indian exports to Italy slumped 65% to 23,000 tonnes, according to the data. Exports to Spain fell 41% to 13,000 tonnes, while shipments to Belgium were down 42% at 25,000 tonnes. India, which typically ships cold-rolled coil, galvanized steel and some long products such as bars and rods to the EU, saw a decline in these shipments by as much as 30%. Meanwhile, India's exports to Nepal, the top destination last year, were down 22% at 63,000 tonnes. Shipments were also substantially lower to Malaysia and Sri Lanka, which were among the top 10 export destinations last year. Exports of steel plate, which is one of the flat products that comprise most of India's steel exports, fell 60% to 14,000 tonnes, the data showed. Shipments of pipes, which are typically the main steel product exported to the United States, dropped 97% to 2,000 tonnes. Overall, India's finished steel exports were down 30% during April-May and the country remained a net importer. Hit by low exports and facing higher imports, India's steel ministry has been pushing for higher import duties. (Reporting by Neha Dasgupta; Editing by Joseph Radford)
What Type Of Shareholder Owns Equita Group S.p.A.'s (BIT:EQUI)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of Equita Group S.p.A. (BIT:EQUI) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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. Equita Group is not a large company by global standards. It has a market capitalization of €156m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about EQUI. View our latest analysis for Equita Group Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Equita Group already has institutions on the share registry. Indeed, they own 7.7% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Equita Group, (below). Of course, keep in mind that there are other factors to consider, too. We note that hedge funds don't have a meaningful investment in Equita Group. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar. The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. 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 Equita Group S.p.A.. Insiders own €34m worth of shares in the €156m company. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently. The general public, who are mostly retail investors, collectively hold 61% of Equita Group shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions. It seems that Private Companies own 9.8%, of the EQUI stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow. Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Gold Prices Extend Losses as Mnuchin Talks up Trade Progress Investing.com - Gold prices extended losses in early morning trade on Wednesday as demand for haven assets ebbed after U.S. Treasury Secretary Steven Mnuchin talked up the progress of trade negotiations between Washington and Beijing. Spot gold slid $20.27, or 1.42%, to $1,403.11 by 7:15 AM ET (11:15 GMT), pulling back from a six-year high of $1,438.99 reached on Tuesday. Gold futures for August delivery on the Comex division of the New York Mercantile Exchange, fell $12.45, or 0.9%, to $1,406.25 a troy ounce. Mnuchin told CNBC that “we were about 90% of the way there (on reaching a trade deal) and I think there’s a path to complete this”. He also showed confidence that the meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping at the G20 summit on Saturday could achieve progress. Mnuchin’s remarks came after reports that the U.S. is willing todelay the next round of tariffson $300 billion in Chinese goods as trade negotiators prep further talks. Washington would make the temporary concession in order to bring Beijing back to the negotiating table, according to sources cited by Bloomberg. The news added to downward pressure on gold fromFederal Reserve Chairman Jerome Powell’s remarksa day earlier. The Fed chief shrugged off recent calls from Trump to cut rates and emphasized that policymakers were evaluating whether tame inflation and fallout from the U.S.-China trade conflict warranted easing policy. Further dampening the more ambitious expectations of policy easing, St. Louis Fed President James Bullard, the only member of the Fed's policy-making committee to vote for a quarter-point cut in June, said that a 50 basis point reduction would be going too far. Michael Hewson, chief market analyst at CMC Markets, considered Powell’s remarks to be a “wakeup call” for U.S. markets, including gold. “Financial markets have become too used to getting their own way when it comes to easy money, and Powell’s stance last night was entirely sensible in terms of keeping the central banks options open,” Hewson said in a note issued Wednesday. In other metals trading, silver futures lost 0.4% to $15.242 a troy ounce by 7:18 AM ET (11:18 GMT). Palladium futures traded down 0.4% at $1,526.20 an ounce, while sister metal platinum lost 0.5% to $810.85. In base metals, copper dipped 0.1% to $2.733 a pound. Related Articles Americans demand climate action (as long as it doesn't cost much): Reuters poll OPEC Member Fans Out to Australia and Canada in Global Gas Push Saudi Aramco signs 12 deals with South Korean firms
Do Insiders Own Shares In Equita Group S.p.A. (BIT:EQUI)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Every investor in Equita Group S.p.A. (BIT:EQUI) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' With a market capitalization of €156m, Equita Group is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about EQUI. View our latest analysis for Equita Group Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors own 7.7% of Equita Group. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Equita Group, (below). Of course, keep in mind that there are other factors to consider, too. We note that hedge funds don't have a meaningful investment in Equita Group. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own a reasonable proportion of Equita Group S.p.A.. It has a market capitalization of just €156m, and insiders have €34m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently. The general public -- mostly retail investors -- own 61% of Equita Group . This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio. It seems that Private Companies own 9.8%, of the EQUI stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data. 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.
Have Insiders Been Buying Ergomed plc (LON:ERGO) Shares This Year? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 inErgomed plc(LON:ERGO). It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required. We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. 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 Ergomed Founder & Executive Chairman Miroslav Reljanovic made the biggest insider purchase in the last 12 months. That single transaction was for UK£606k worth of shares at a price of UK£3.03 each. That means that an insider was happy to buy shares at around the current price of UK£3.10. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Ergomed share holders is that insiders were buying at near the current price. In the last twelve months insiders paid UK£779k for 264k shares purchased. Ergomed may have bought shares in the last year, but they didn't sell any. 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 plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying. It's good to see that Ergomed insiders have made notable investments in the company's shares. In total, insiders bought UK£779k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence. Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 26% of Ergomed shares, worth about UK£38m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders. The recent insider purchases are 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. Given that insiders also own a fair bit of Ergomed we think they are probably pretty confident of a bright future. Of course,the future is what matters most. So if you are interested in Ergomed, 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.
Alliance Resource (ARLP) to Acquire Interest in Wing's Assets Alliance Resource Partners, L.P.ARLP recently announced that ithas entered into a definitive agreement to acquire oil and gas mineral interests from Wing Resources LLC and Wing Resources II LLC. The acquisition is valued at $145 millionand the transaction is expected to be closed by August 2019. In January, the partnership acquired limited partnership interest in AllDale Minerals III, L.P. The acquisition enabled Alliance Resource to own nearly 3,950 net royalty acres indirectly in Permian Basin. The recent buyout of Wing’s assets will facilitate the partnership to own approximately 51,000 net royalty acres concentrated in the Permian Basin, SCOOP/STACK, Bakken and Appalachian Basin. Focus in Oil and Gas Minerals Segment The partnership generates income from coal production as well as oil and gas mineral interests located in producing regions across the United States. The recent announcement reflects the partnership’s focus on revamping the oil and gas minerals segment as a growth platform for the future. Considering higher awareness toward the environment, the consumption of coal has declined in the past few years. The current scenario of coal market is alarming. Thus, coal companies are either merging to lower cost or shifting their focuses. Alliance Resource’ focus on oil-rich assets will help it possess another alternate revenue source. Per U.S. Energy Information Administration (EIA), crude oil production will increase 1.4 million barrels per day (b/d) in 2019 and 0.9 million b/d in 2020. Production average will stand at 13.3 million b/d in 2020. EIA also projects that U.S. dry natural gas production will average 90.6 billion cubic feet per day (Bcf/d) in 2019, up 8.6% from 2018. A major chunk of U.S. oil production will be generated from Permian Basin. Fortifying Position in Permian Basin Permian Basin is situated in western Texas and southeastern New Mexico. The region is rich with petroleum, natural gas as well as potassium deposits and has large economic significance. After completion of the acquisition, Alliance Resource’presence in the Permian Basin will increase by nearly 9,000 net royalty acres in the Midland Basin, with exposure to more than 400,000 gross acres. Permian Basin’s rich onshore assets make it one of the most prolific hydrocarbon producing regions in the United States. In addition to Alliance Resource, we have already seen some other prominent operator in the oil and energy trying to expand operation in this zone through acquisition. Recently, Chevron Corporation CVX made a bid for Anadarko Petroleum Corporation APC. However, Occidental Petroleum OXY raised bid to acquire Anadarko Petroleum, which compelled Chevron to move out with $1-billion breakup fee. Anadarko Petroleum’s strong presence in Permian Basin made it an attractive option for acquisitions. Zacks Rank & Price Performance Alliance Resource currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Units of Alliance Resource have lost about 8% in the past 12 months compared with the industry’s decline of 29.6%. More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAlliance Resource Partners, L.P. (ARLP) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportAnadarko Petroleum Corporation (APC) : Free Stock Analysis ReportOccidental Petroleum Corporation (OXY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Macron calls for synergies, alliances' to strengthen Renault-Nissan TOKYO (Reuters) - French President Emmanuel Macron on Wednesday called for further synergies and alliances to strengthen the Renault-Nissan partnership in a global market. "The Renault-Nissan alliance is a jewel in the industry," Macron told French expatriates in Tokyo. "We created a giant which we must not only preserve but develop synergies and alliances to strengthen it in the face of international competition." His comments appeared to leave open the possibility both of a deeper integration of the 20-year-old Renault-Nissan alliance, which has been shaken by the scandal over its former chief Carlos Ghosn, and tie-ups with other manufacturers. Last month, Renault and Italian-American group Fiat Chrysler Automobiles (FCA) announced they were in merger talks. But the discussions were called off after FCA grew frustrated with the role the French state was playing, especially its need to secure agreement from Nissan over how to move the merger forward. Since the break-off of the FCA talks, Renault executives have been looking to rebuild ties with Nissan, which is keen to reduce the influence the French state has in the alliance via its 15% stake in Renault. Renault owns 43% of the Japanese automaker, which in turn holds a 15%, non-voting stake in its partner. Nissan on Tuesday threw cold water on hopes for a quick fix to strained relations with France's Renault SA, saying inequality between the partners could unravel their two-decade-old automaking alliance. (Reporting by Chris Gallagher; Editing by Richard Lough)
CORRECTED-Indonesia regulatory changes to bring more uncertainty to coal sector (Corrects attribution in paragraph 12 to Sinadia from Sinadia and Jenie) By Fransiska Nangoy NUSA DUA, Indonesia, June 26 (Reuters) - Indonesian coal miners said upcoming regulatory changes are putting added pressure on their businesses amid depressed prices and rising competition from other energy sources. The Indonesian government is in the process of amending coal mining rules to enforce implementation of a 2009 mineral law that require miners to convert their mining permits to a licensing system upon the expiration of their current contracts. The issue was one of the most talked about by local miners at the Coaltrans industry conference in Bali this week. The coming change has already affected investment sentiment, an Indonesian coal miners group said, and there are fears the reluctance to invest could spread to related sectors such as power generation, even amid a push to add 35 gigawatts to the country's power capacity and boost infrastructure investment to prop up sluggish domestic spending. "This is a big concern for us, because coal investment is not a short-term investment," said Hendra Sinadia, executive director of the Indonesia Coal Mining Association, on the sidelines of Coaltrans on the Indonesian island of Bali. Among the changes the miners are worried about are the rules on how much area a miner can operate under the new permit system, Sinadia said. The 2009 mining law only allows a maximum of 15,000 hectares under a special mining license. A government regulation now in force, though, allows the development of mining areas beyond that size when a site operator can present the government with a long-term plan of operation, he said. Many companies are currently operating mine areas larger than 15,000 hectares, he said. "This is not only affecting the mining sector, because this is contradictive to government efforts to boost investment," Sinadia said. In the past few years, especially when the coal price has dropped, foreign investment appetite has diminished, said Eviaty Jenie, a lawyer in global law firm HFW in Singapore. "One of their considerations is the rapidly changing legal environment and its uncertainty. The nationalism principle, whilst generally good for Indonesia, eventually needs to be accepted by foreign investors," Jenie said. The negative sentiment could also spread to coal-fired power plants, a much needed infrastructure for the country, according to Sinadia. New coal projects are already facing financing difficulties as global banks refuse to back projects to avoid criticism over climate change, industry participants have said. Indonesian energy and mining resources are also waiting for President Joko Widodo to approve the terms of the new licensing system, including revisions to the tax and royalty schemes. Energy and Mineral Resources Ministry officials did not respond to Reuters requests for comments. Similar rules have been implemented in the mineral resources sector and have resulted in long, drawn-out negotiations between the government and mining giants, such as Freeport-McMoRan Inc . The few foreign investors in Indonesian mines will also be required to gradually divest their ownership in local mines until they are only holding a minority share. "It's like letting me build a house and then asking me to leave after that," said a foreign investor who declined to be named due to the sensitivity of the matter. (Reporting by Fransiska Nangoy; Additional reporting by Wilda Asmarini; Editing by Tom Hogue/David Evans)
Who Has Been Buying Ergomed plc (LON:ERGO) Shares? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inErgomed plc(LON:ERGO). 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 Ergomed In the last twelve months, the biggest single purchase by an insider was when Founder & Executive Chairman Miroslav Reljanovic bought UK£606k worth of shares at a price of UK£3.03 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£3.10. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Ergomed insiders decided to buy shares at close to current prices. In the last twelve months insiders paid UK£779k for 264k shares purchased. In the last twelve months Ergomed 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date! 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 Ergomed. Not only was there no selling that we can see, but they collectively bought UK£779k worth of shares. 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. We usually like to see fairly high levels of insider ownership. Ergomed insiders own about UK£38m worth of shares. That equates to 26% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Ergomed shares, given these transactions (along with notable insider ownership of the company). 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:Ergomed 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.
Is EQS Group AG (ETR:EQS) A Financially Sound Company? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While small-cap stocks, such as EQS Group AG (ETR:EQS) with its market cap of €98m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Since EQS is loss-making right now, it’s crucial to understand the current state of its operations and pathway to profitability. We'll look at some basic checks that can form a snapshot the company’s financial strength. Nevertheless, potential investors would need to take a closer look, and I recommend youdig deeper yourself into EQS here. Over the past year, EQS has reduced its debt from €12m to €11m , which also accounts for long term debt. With this reduction in debt, EQS's cash and short-term investments stands at €1.3m , ready to be used for running the business. Moreover, EQS has generated cash from operations of €4.3m in the last twelve months, leading to an operating cash to total debt ratio of 39%, signalling that EQS’s debt is appropriately covered by operating cash. Looking at EQS’s €19m in current liabilities, it appears that the company may not have an easy time meeting these commitments with a current assets level of €7.3m, leading to a current ratio of 0.39x. The current ratio is calculated by dividing current assets by current liabilities. EQS is a relatively highly levered company with a debt-to-equity of 42%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. Though, since EQS is presently loss-making, sustainability of its current state of operations becomes a concern. Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate. Although EQS’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised. However, its low liquidity raises concerns over whether current asset management practices are properly implemented for the small-cap. I admit this is a fairly basic analysis for EQS's financial health. Other important fundamentals need to be considered alongside. You should continue to research EQS Group to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for EQS’s future growth? Take a look at ourfree research report of analyst consensusfor EQS’s outlook. 2. Valuation: What is EQS 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 EQS 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.
Fernheizwerk Neukölln Aktiengesellschaft (FRA:FHW): Commentary On Fundamentals Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Fernheizwerk Neukölln Aktiengesellschaft (FRA:FHW) 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 FHW, it is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on Fernheizwerk Neukölln here. FHW'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 FHW manages its cash and cost levels well, which is a key determinant of the company’s health. FHW currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise. For those seeking income streams from their portfolio, FHW is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.5%. For Fernheizwerk Neukölln, there are three essential aspects you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for FHW’s future growth? Take a look at ourfree research report of analyst consensusfor FHW’s outlook. 2. Historical Performance: What has FHW'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 FHW? 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.
These Fundamentals Make Fernheizwerk Neukölln Aktiengesellschaft (FRA:FHW) Truly Worth Looking At Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Fernheizwerk Neukölln Aktiengesellschaft (FRA:FHW) 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 FHW, it is a notable dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the fullreport on Fernheizwerk Neukölln here. FHW's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that FHW manages its cash and cost levels well, which is an important determinant of the company’s health. Looking at FHW's capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, 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. Income investors would also be happy to know that FHW is a great dividend company, with a current yield standing at 3.5%. FHW has also been regularly increasing its dividend payments to shareholders over the past decade. For Fernheizwerk Neukölln, there are three essential factors you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for FHW’s future growth? Take a look at ourfree research report of analyst consensusfor FHW’s outlook. 2. Historical Performance: What has FHW'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 FHW? 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.
Brent Crude Oil Price Update – Underpinned by Friendly API Report; Next On-tap EIA Data International-benchmark Brent crude oil futures are following U.S. futures higher on Wednesday after a private industry report released late yesterday showed a decline in U.S. crude inventories. Additionally, the conflict between the United States and Iran continued to underpin prices while stoking fears of a potential supply disruption. Demand concerns were also somewhat dampened on Tuesday when Fed Chair Powell failed to acknowledge the need for an interest rate cut due to a weakening economy. At 07:09 GMT, September Brent crude oil futures are trading $59.06, up $1.23 or +2.14%. The American Petroleum Institute (API) reported stockpiles fell by 7.5 million barrels in the week-ended June 21. Traders were looking for a 2.5 million barrel decline. The main trend is up according to the daily swing chart. The uptrend resumed earlier today when buyers took out three days of highs. The market has room to run to get to the next main top at $71.61, however, it’s going to have to get through a series of retracement levels first. The main trend will change to down on a trade through $59.39, followed by $58.47. The 200-day Moving Average at $67.21 is also a potential upside target. The intermediate range is $71.61 to $58.47. Its retracement zone is $65.04 to $66.59. This zone is currently being tested. The main range is $73.35 to $58.47. Its retracement zone at $65.91 to $67.67 is the next upside target. Combining the two retracement zones makes $65.91 to $66.59 the best upside target. Based on the early price action, the direction of the August Brent crude oil market the rest of the session is likely to be determined by trader reaction to the 50% level at $65.04. A sustained move over $65.04 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for the rally to extend into the next 50% level at $65.91. This is followed by a short-term Fibonacci level at $66.59. Overtaking $66.59 will indicate the buying is getting stronger with the next potential target the 200-day Moving Average at $67.21, followed by the main Fibonacci at $67.67. This is the trigger point for an acceleration to the upside. A sustained move under $65.04 will signal the return of sellers. If this move is able to generate enough downside momentum then look for the selling to possibly extend into $61.97 over the near-term. This is highly unlikely at this time unless today’s U.S. Energy Information Administration report is extremely bearish, peace breaks out in the Middle East or Trump and Xi cancel their meeting at the G-20 summit. Given the easing of tensions between the US and Iran so far this week, and the upcoming meeting between Trump and Xi on Saturday, the price action today is likely to be controlled by the outcome of the EIA weekly inventories report at 14:30 GMT. It is expected to show a 2.7 million barrel draw down. Thisarticlewas originally posted on FX Empire • E-mini S&P 500 Index (ES) Futures Technical Analysis – June 27, 2019 Forecast • NEM’s XEM Technical Analysis – Resistance Levels in Play – 27/06/19 • EUR/USD Mid-Session Technical Analysis for June 27, 2019 • EUR/USD Daily Forecast – Euro Holding Above Major Support • Futures Rise as China Takes Steps Towards Trade War Resolution • E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – June 27, 2019 Forecast
How Much Of Visiativ SA (EPA:ALVIV) Do Insiders Own? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of Visiativ SA (EPA:ALVIV) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. Visiativ is not a large company by global standards. It has a market capitalization of €77m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about ALVIV. View our latest analysis for Visiativ Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors own 20% of Visiativ. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Visiativ's historic earnings and revenue, below, but keep in mind there's always more to the story. Visiativ is not owned by hedge funds. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. 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. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. It seems insiders own a significant proportion of Visiativ SA. It has a market capitalization of just €77m, and insiders have €12m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling. The general public holds a 47% stake in ALVIV. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Our data indicates that Private Companies hold 16%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free. But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
How Flughafen Zürich AG (VTX:FHZN) Could Add Value To Your Portfolio Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Flughafen Zürich AG (VTX:FHZN) due to its excellent fundamentals in more than one area. FHZN is a notable dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Flughafen Zürich here. FHZN'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 FHZN manages its cash and cost levels well, which is a crucial insight into the health of the company. FHZN's has produced operating cash levels of 0.49x total debt over the past year, which implies that FHZN's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. FHZN’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 3.7%. For Flughafen Zürich, I've put together three fundamental factors you should look at: 1. Future Outlook: What are well-informed industry analysts predicting for FHZN’s future growth? Take a look at ourfree research report of analyst consensusfor FHZN’s outlook. 2. Historical Performance: What has FHZN'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 FHZN? 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 Finsbury Food Group Plc's (LON:FIF) 4.8% Dividend Worth Your Time? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Is Finsbury Food Group Plc (LON:FIF) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With Finsbury Food Group yielding 4.8% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. There are a few simple ways to reduce the risks of buying Finsbury Food Group for its dividend, and we'll go through these below. Explore this interactive chart for our latest analysis on Finsbury Food Group! 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, Finsbury Food Group paid out 45% of its profit as dividends. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. Plus, there is room to increase the payout ratio over time. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. With a cash payout ratio of 244%, Finsbury Food Group's dividend payments are poorly covered by cash flow. Paying out more than 100% of your free cash flow in dividends is generally not a long-term, sustainable state of affairs, so we think shareholders should watch this metric closely. While Finsbury Food Group's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. Cash is king, as they say, and were Finsbury Food Group to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign. We update our data on Finsbury Food Group every 24 hours, so you can always getour latest analysis of its financial health, here. Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. For the purpose of this article, we only scrutinise the last decade of Finsbury Food Group's dividend payments. The dividend has been cut by more than 20% on at least one occasion historically. During the past ten-year period, the first annual payment was UK£0.022 in 2009, compared to UK£0.033 last year. Dividends per share have grown at approximately 4.1% 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. Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent. With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? Finsbury Food Group'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. Finsbury Food Group is paying out less than half of its earnings, which we like. However, earnings per share are unfortunately not growing much. Might this suggest that the company should pay a higher dividend instead? When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Firstly, the company has a conservative payout ratio, although we'd note that its cashflow in the past year was substantially lower than its reported profit. Unfortunately, earnings growth has also been mediocre, and the company has cut its dividend at least once in the past. Ultimately, Finsbury Food Group comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis. Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 Finsbury Food Group analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Moors murderer 'had access to teenagers in jail' Ian Brady reportedly had access to vulnerable teenagers in jail (AP) Child killer Ian Brady came into contact with young inmates for over five years while in Wormwood Scrubs prison, according to Government files. Moors murderer Brady was reportedly allowed to stay at the prison's hospital for several months after one of the young inmates alleged he had sex with him. The BBC said it had seen Home Office files that showed Brady, who died in 2017 , also received support from Lord Longford, a former Labour cabinet minister and penal reformer. Brady was transferred to Wormwood Scrubs in 1974, eight years after he was convicted of the murders of Lesley Ann Downey, 10, and Edward Evans, 17 - two of the five youngsters he killed with girlfriend Myra Hindley. After being placed on the segregation unit the killer is said to have gone on hunger strike, to force officers to move him and allow him to associate with other prisoners, and he was eventually placed on the prison's Mental Observation Landing. Brady was allowed to stay at the Wormwood Scrubs hospital for several months after one of the young inmates alleged he had sex with him (PA) At the time boys from Feltham Borstal were reportedly sent to Wormwood Scrubs Hospital if they were suffering from mental health problems. Some of them were as young as 15, a similar age to some of the Moors Murders victims. Despite eventually regaining weight Brady was allowed to stay on the wing. Read more from Yahoo News UK: New UK law will raise maximum jail time for animal abusers to five years Two people arrested over A-level exam paper leak Two members of 'callous' puppy farming gang jailed A record from September 1976 shows suspicions had been raised by his "unusual interest in any adolescent inmate" and staff had to move the boys away from him. In December 1977 Brady reportedly wrote to Lord Longford to complain that the prison's principal medical officer had told the governor he should return to segregation. The child killer remained on the wing. In March 1978 the prison's senior medical officer (SMO) is said to have expressed concerns about Brady's residence in the hospital and his contacts with vulnerable prisoners. Brady and Myra Hindley were convicted of murdering five children aged between 10 and 17 (AP) Brady was reportedly allowed to watch television with other inmates and given duties including cleaning toilets and showers. He is said to have lost his duties in autumn 1981 after a young person reported that Brady had had sex with him. He was moved to Parkhurst on the Isle of Wight the following year. Frances Crook, chief executive of the Howard League for Penal Reform, said Brady's high-profile support contributed to an "extraordinary set of circumstances”. A young person reported that Brady (right) had had sex with him in prison (AP) She told the BBC: "What happened, and what he did in prisons, I think, is not extraordinary. Actually, I think it happens and has happened every day for years, and is still happening.” Story continues A Ministry of Justice spokesman said: "There have been huge changes in the criminal justice system in the last 40 years and allegations of sexual assault are taken extremely seriously and reported to the police. "Boys under 18 are placed together in youth custody and those aged between 18-21 are held either in young offender institutions with their own age group, or in designated cells or wings in the adult prison estate. "We are conducting a review into safeguarding in the youth estate to further improve the welfare of those in our care." View comments
Epiroc AB (publ) (STO:EPI A) Insiders Increased Their Holdings Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! 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 before you buy or sellEpiroc AB (publ)(STO:EPI A), you may well want to know whether insiders have been buying or selling. It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information. We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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.' Check out our latest analysis for Epiroc While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction! 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). Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data suggests Epiroc insiders own 0.02% of the company, worth about kr22m. I generally like to see higher levels of ownership. The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Epiroc shares, given these transactions (along with notable insider ownership of the company). Of course,the future is what matters most. So if you are interested in Epiroc, you should check out thisfreereport on analyst forecasts for the company. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity 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.
Have Insiders Been Buying Epiroc AB (publ) (STO:EPI A) Shares This Year? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares inEpiroc AB (publ)(STO:EPI A). 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.' See our latest analysis for Epiroc While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying. 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Epiroc insiders own 0.02% of the company, worth about kr22m. We consider this fairly low insider ownership. It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Epiroc we think they are probably pretty confident of a bright future. Of course,the future is what matters most. So if you are interested in Epiroc, 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.
Should You Like EMS-CHEMIE HOLDING AG’s (VTX:EMSN) High Return On Capital Employed? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll look at EMS-CHEMIE HOLDING AG (VTX:EMSN) and reflect on its potential as an investment. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. First, we'll go over how we calculate ROCE. Second, we'll look at its ROCE compared to similar companies. And finally, we'll look at how its current liabilities are impacting its ROCE. ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. Generally speaking a higher ROCE is better. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for EMS-CHEMIE HOLDING: 0.35 = CHF622m ÷ (CHF2.2b - CHF365m) (Based on the trailing twelve months to December 2018.) So,EMS-CHEMIE HOLDING has an ROCE of 35%. Check out our latest analysis for EMS-CHEMIE HOLDING ROCE can be useful when making comparisons, such as between similar companies. In our analysis, EMS-CHEMIE HOLDING's ROCE is meaningfully higher than the 15% average in the Chemicals industry. We consider this a positive sign, because it suggests it uses capital more efficiently than similar companies. Setting aside the comparison to its industry for a moment, EMS-CHEMIE HOLDING's ROCE in absolute terms currently looks quite high. Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company. Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counter this, investors can check if a company has high current liabilities relative to total assets. EMS-CHEMIE HOLDING has total liabilities of CHF365m and total assets of CHF2.2b. As a result, its current liabilities are equal to approximately 17% of its total assets. The fairly low level of current liabilities won't have much impact on the already great ROCE. Low current liabilities and high ROCE is a good combination, making EMS-CHEMIE HOLDING look quite interesting. EMS-CHEMIE HOLDING looks strong on this analysis,but there are plenty of other companies that could be a good opportunity. Here is afree listof companies growing earnings rapidly. 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.
Is EMS-CHEMIE HOLDING AG’s (VTX:EMSN) 35% ROCE Any Good? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll evaluate EMS-CHEMIE HOLDING AG (VTX:EMSN) to determine whether it could have potential as an investment idea. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. First up, we'll look at what ROCE is and how we calculate it. Then we'll compare its ROCE 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. In general, businesses with a higher ROCE are usually better quality. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for EMS-CHEMIE HOLDING: 0.35 = CHF622m ÷ (CHF2.2b - CHF365m) (Based on the trailing twelve months to December 2018.) So,EMS-CHEMIE HOLDING has an ROCE of 35%. Check out our latest analysis for EMS-CHEMIE HOLDING ROCE can be useful when making comparisons, such as between similar companies. Using our data, we find that EMS-CHEMIE HOLDING's ROCE is meaningfully better than the 15% average in the Chemicals industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Putting aside its position relative to its industry for now, in absolute terms, EMS-CHEMIE HOLDING's ROCE is currently very good. When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. 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. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company. Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counteract this, we check if a company has high current liabilities, relative to its total assets. EMS-CHEMIE HOLDING has total liabilities of CHF365m and total assets of CHF2.2b. As a result, its current liabilities are equal to approximately 17% of its total assets. A minimal amount of current liabilities limits the impact on ROCE. This is good to see, and with such a high ROCE, EMS-CHEMIE HOLDING may be worth a closer look. EMS-CHEMIE HOLDING shapes up well under this analysis,but it is far from the only business delivering excellent numbers. You might also want to check thisfreecollection of companies delivering excellent earnings growth. 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.
Calculating The Fair Value Of Emmi AG (VTX:EMMN) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we will run through one way of estimating the intrinsic value of Emmi AG (VTX:EMMN) by taking the expected future cash flows and discounting them to their present value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. 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 Emmi We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of 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 (CHF, Millions)", "2019": "CHF210.87", "2020": "CHF229.33", "2021": "CHF242.75", "2022": "CHF254.80", "2023": "CHF266.16", "2024": "CHF277.08", "2025": "CHF287.76", "2026": "CHF298.35", "2027": "CHF308.96", "2028": "CHF319.70"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x3", "2020": "Analyst x3", "2021": "Analyst x2", "2022": "Est @ 4.96%", "2023": "Est @ 4.46%", "2024": "Est @ 4.1%", "2025": "Est @ 3.85%", "2026": "Est @ 3.68%", "2027": "Est @ 3.56%", "2028": "Est @ 3.47%"}, {"": "Present Value (CHF, Millions) Discounted @ 8.04%", "2019": "CHF195.17", "2020": "CHF196.46", "2021": "CHF192.47", "2022": "CHF186.99", "2023": "CHF180.78", "2024": "CHF174.19", "2025": "CHF167.44", "2026": "CHF160.67", "2027": "CHF154.01", "2028": "CHF147.49"}] Present Value of 10-year Cash Flow (PVCF)= CHF1.76b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. 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 (3.3%) 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 8%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CHF320m × (1 + 3.3%) ÷ (8% – 3.3%) = CHF6.9b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CHFCHF6.9b ÷ ( 1 + 8%)10= CHF3.19b 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 CHF4.95b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of CHF925.34. Relative to the current share price of CHF941.5, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. 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 Emmi 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%, which is based on a levered beta of 0.800. 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 Emmi, I've compiled three important factors you should look at: 1. Financial Health: Does EMMN 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 EMMN'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 EMMN? 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 CH 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.
Facebook to train UK armed forces veterans in digital skills The logo for Facebook appears on screens at the Nasdaq MarketSite in New York's Times Square. Photo: Richard Drew/AP Photo Facebook ( FB ) will provide 300 British armed service veterans with the digital skills needed to start a business at an event on Wednesday organised in partnership with the defence ministry. The initiative is part of Facebook’s commitment to ensuring former military personnel are afforded equal opportunities, the company said on Wednesday. But it also comes amid heavy criticism of how the internet giant handles consumer data, misinformation, and harmful content — and after Facebook on Monday called for governments to more closely regulate social media platforms. Noting that just 2% of British veterans start their own businesses, Facebook said it would work with armed forces charities Heropreneurs and X-Forces to encourage and support veterans who may be considering setting up their own company. In addition to its Wednesday event, veterans will also be given support via the company’s Boost training platform, which Facebook describes as its “one-stop-shop for small businesses, job-seekers, and other community leaders” looking to expand their digital skillset. Worldwide, the company has committed to training one million people with digital skills by 2020, and says it has invested more than $1bn (£789bn) to help people find jobs and grow businesses. “That's because when small businesses grow and hire, our communities benefit too, which is what Boost with Facebook is all about,” Facebook said in a statement. Facebook also announced on Wednesday that it has recently signed the Armed Forces Covenant, which focuses on helping veterans get access to government and commercial services. Lieutenant General Richard Nugee, a deputy chief of staff of the British Armed Forces, said that Facebook was “taking great steps” to ensure veterans are supported in the workplace. “It is an honour to be signing the Armed Forces Covenant with Facebook,” Nugee said. Wednesday’s event comprises a half day of panel discussions and training sessions. On Monday, former deputy prime minister Nick Clegg — who took over as Facebook’s head of global affairs last year — said the company wanted to work with governments on regulation “that fosters competition, encourages innovation, and protects consumers.” He rejected calls for the tech giant, which also owns WhatsApp and Instagram, to be broken up, saying such a move would not solve issues of privacy.
Is Paperpack A.B.E.E.'s (ATH:PPAK) Balance Sheet A Threat To Its Future? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! While small-cap stocks, such as Paperpack A.B.E.E. (ATH:PPAK) with its market cap of €15m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Understanding the company's financial health becomes crucial, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. Let's work through some financial health checks you may wish to consider if you're interested in this stock. Nevertheless, this is just a partial view of the stock, and I recommend youdig deeper yourself into PPAK here. PPAK has sustained its debt level by about €9.1m over the last 12 months – this includes long-term debt. At this current level of debt, PPAK's cash and short-term investments stands at €1.8m to keep the business going. Moreover, PPAK has produced €2.0m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 22%, indicating that PPAK’s current level of operating cash is high enough to cover debt. Looking at PPAK’s €6.3m in current liabilities, it seems that the business has been able to meet these obligations given the level of current assets of €11m, with a current ratio of 1.79x. The current ratio is calculated by dividing current assets by current liabilities. For Packaging companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment. With debt reaching 85% of equity, PPAK may be thought of as relatively highly levered. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In PPAK's case, the ratio of 6.66x suggests that interest is appropriately covered, which means that lenders may be willing to lend out more funding as PPAK’s high interest coverage is seen as responsible and safe practice. Although PPAK’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. Since there is also no concerns around PPAK's liquidity needs, this may be its optimal capital structure for the time being. Keep in mind I haven't considered other factors such as how PPAK has been performing in the past. I recommend you continue to research PaperpackE.E to get a better picture of the small-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for PPAK’s future growth? Take a look at ourfree research report of analyst consensusfor PPAK’s outlook. 2. Valuation: What is PPAK 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 PPAK 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.
Amun Launches Exchange-Traded Product Using Bitwise Crypto Index Swiss-based fintech firm Amun AG has released plans to launch a new exchange-traded product (ETP) that will use the Bitwise 10 Select Large Cap Crypto Index as a benchmark. This is the fifth ETP the Swiss SIX Exchange has permitted. BitwiseIndex Services, a subsidiary of Bitwise Asset Management, licenced its index for the first physically replicated crypto index product. The Amun Bitwise Select 10 Large Cap Crypto ETP is available to anyone outside the U.S., and will trade with the ticker symbol KEYS. “We are thrilled to partner with Bitwise to bring the most broadly diversified crypto ETP to investors in Switzerland,” said Hany Rashwan, CEO of Amun. “Bitwise is the global leader in crypto indexing, and we are excited to launch a product that builds on their expertise.” Related:Huobi Clamps Down on Crypto Wash Trading After Bitwise Report Bitwise develops, calculates, disseminates, and licenses cryptocurrency indexes and conducts research in the area of cryptocurrency investing. Its parent company Bitwise Asset Management created the first crypto index available exclusively to U.S. investors. The Bitwise 10 Select Large Cap Crypto Index is designed to track the performance of up to 10 of the largest crypto assets in the world, as measured and weighted by free-float and inflation-adjusted market capitalization. Though it excludes privacy coins and Platform Dependent Tokens on third-party blockchains. Constituent securities must meet a variety of criteria to qualify for the Index, including rules related to security, liquidity and institutional support, according to the press release. The Index is rebalanced and reconstituted on a monthly basis. As of a rebalancing on May 31, the index is weighted with Bitcoin comprising 67.8 percent, Ethereum 11.5 percent, Ripple 8.33 percent, and Bitcoin Cash, Litecoin, and EOS comprising around 3 percent. Stellar and Cardano represent around 1 percent of the basket. Related:Public Perceptions of the Bitcoin Spot Market Are Wrong, Says Bitwise To serve as the underlying assets of the ETP, the index must be approved by SIX and must be both supported by appropriate market makers and available for custody at leading institutional custodians. Currently only eight cryptos make all the requirements. However, “SIX is a forward-thinking regulator, however, and as the space matures, we expect to see more assets qualify,” said Matthew Hougan, Global Head of Research at Bitwise. Coinbase Custody and Kingdom Trust currently serve as custodians, though the market makers have not been disclosed yet. Amun previously released a number of crypto ETPs on the Swiss national market, including one holding the top five cryptocurrencies in a basket (HODL), and ones holding Bitcoin (ABTC), Ethereum (AETH), and Ripple (AXRP). “Crypto is moving forward on its journey to becoming a mainstream, regulated financial asset,” said Hougan. “Nasdaq Nordic has also allowed crypto ETPs to launch, and regulators are deeply engaged in the US, Europe, and Canada. This is just the next step in that development.” Swiss piggy bank via Shutterstock • SEC Again Delays Decision on Bitwise Bitcoin ETF Approval • XRP Exchange-Traded Product Goes Live on Swiss SIX Exchange
Japan's Abe hopes U.S., China resolve trade war through constructive talks TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe said on Wednesday that he hoped the United States and China would resolve their trade war through constructive dialogue when they meet at a gathering of leaders from the Group of 20 major economies. Abe, who hosts this week's summit in Osaka, also said he wanted the G20 to deliver a strong message on issues such as the promotion of free trade, innovation-driven global growth and rule-making for the digital economy. "I expect that the United States and China will resolve their trade friction in a constructive manner through dialogue such as their bilateral meeting at G20," Abe told a news conference. (Reporting by Tetsushi Kajimoto; editing by Darren Schuettler)
Bitcoin price rises 7%, closes in on $13,000 Jewelry with the Bitcoin logo is seen on display at the Consensus 2018 blockchain technology conference in New York City, New York, U.S., May 16, 2018. Photo: Mike Segar/ Reuters The price of bitcoin continues to climb higher, with the cryptocurrency spiking 7% against the dollar on Wednesday morning. At 8.45am UK time, Bitcoin is up 7.1% against the dollar to $12,583.66 ( BTC-USD ) and up 7.5% against the pound to £9,967.56. Earlier in the session bitcoin came close to breaking through $13,000. The price rise extends bitcoins recent rally, which has seen it climb over 200% against the dollar so far this year and over 50% this month. Connor Campbell, a financial analyst at SpreadEx, said bitcoin had been immensely aided by the launch of Facebooks Libra, which appears to have renewed interest in the product and acted as further legitimisation of the market. Last week Facebook and a consortium of other major tech and payment players launched their own cryptocurrency, Libra. The cryptocurrency, set to launch next year, aims to help the worlds estimated 1.7 billion unbanked people access financial services. Other analysts said bitcoins recent rise was down to recent signs from central banks around the world that they would cut interest rates. The prospect of lower interest means investors are hunting for yield elsewhere. The liquidity injection from central banks has forced a range of assets like gold, bonds, the yen etc, so bitcoin is just being swept along by those macro currents, Neil Wilson, the senior market analyst at Markets.com, said. Obviously recent dovishness from central banks has seen investors look towards alternative currencies, but perhaps Facebooks unveiling of its Libra currency has seen investors look again at cryptocurrencies with fresh eyes, Deutsche Bank strategists wrote in a note on Wednesday. Whatever the cause, the momentum is powerful right now, Wilson said. Bitcoins rise contrasts with the wider market , which is largely in the red on Wednesday morning. The one notable exception is ethereum, which is up 4.1% against the dollar to $329.50 ( ETH-USD ) and up 4.3% against the pound to £261.20 ( ETH-GBP ). Story continues Oscar Williams-Grut covers banking, fintech, and finance for Yahoo Finance UK. Follow him on Twitter at @OscarWGrut . Read more: 'Perfect storm' blamed for scandals like London Capital Finance Star fund manager Neil Woodford 'sailed close to the wind' UBS on Facebook's Libra: 'We have more questions than answers' Facebook's 'significant' Libra under scrutiny from new UK task force UK and US reputations take a 'nosedive' over Brexit and Trump
Hunt for Market Equilibrium Continues Amid Major Global Uncertainties Open your FXTM account today TheDollar Index (DXY)has bounced off the 96 support level, which has offset recent gains seen in G10 and Asian currencies. Fed Chair Jerome Powell on Tuesday repeated the central bank’s dovish bias, highlighting that “the case for a somewhat more accommodative policy has strengthened”. Market’s reluctance to allow the DXY to remain below 96 for too long suggests that the Greenback should remain supported in light of the gloomier mood in the atmosphere of financial markets this week. There is also the perspective being offered following the Fed speeches that the Federal Reserve will not be cutting interest rates as soon as what has been priced into the market; therefore, this can also support the near-term outlook for the Dollar after a brutal week for the Greenback following last week’s Fed decision. Even though US economic growth is moderating, the prospects of incoming monetary policy stimulus may help buffer the resilience of the world’s largest economy, which should in turn prop up the Greenback. Equity markets are losing momentum with Asian stocks following their US counterparts lower, as investors try and decipher what the crucial Trump-Xi meeting could mean for the global growth outlook for the rest of 2019. The outcome from this meeting could have major implications, not just for financial markets, but also for the global monetary policy bias. Foreign investors could be prompted to move funds away from the developing world, should EM central banks lower their respective benchmark interest rates in hopes of offsetting headwinds from protracted US-China trade tensions. While the loosening of monetary policy should stimulate the domestic economy, it’s also expected to trigger outflows by foreign funds, depending on the interest rate differential at that point in time. Fund flows away from the EM universe could heap more downward pressure on the respective currencies. Goldis shedding some of its gains, having dropped by more than two percent from its near-$1440 high on Tuesday to trade around the $1406 handle at the time of writing. The $1400 line remains a key psychological level for Bullion in assessing whether the risk aversion felt in the markets will be sustained. US 10-year Treasury yields continue to test the two percent support level, whileUSDJPYis hovering above the 107 marks, as markets await the next catalyst that could move the risk barometer either way. While geopolitical tensions have intensified of late, it is just one of several global uncertainties that are featuring on investors’ radars. This weekend’s Trump-Xi meeting is poised to be the market’s litmus test for risk appetite going into the rest of the year. Disclaimer:The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same. Thisarticlewas originally posted on FX Empire • Gold Price Forecast – Gold markets pulled back for support • Price of Gold Fundamental Daily Forecast – Weaker as Chances of 50bp Fed Rate Cut Fade • E-mini S&P 500 Index (ES) Futures Technical Analysis – June 27, 2019 Forecast • EUR/USD Price Forecast – Euro goes back and forth they had to the G 20 • USD/JPY Price Forecast – US dollar running into resistance • Futures Rise as China Takes Steps Towards Trade War Resolution
An Intrinsic Calculation For Prabhat Dairy Limited (NSE:PRABHAT) Suggests It's 45% Undervalued Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we will run through one way of estimating the intrinsic value of Prabhat Dairy Limited (NSE:PRABHAT) by taking the foreast future cash flows of the company and discounting them back to today's value. I will use 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. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. Check out our latest analysis for Prabhat Dairy We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: [{"": "Levered FCF (\u20b9, Millions)", "2019": "\u20b91.67k", "2020": "\u20b9660.50", "2021": "\u20b9729.89", "2022": "\u20b9800.09", "2023": "\u20b9872.08", "2024": "\u20b9946.76", "2025": "\u20b91.02k", "2026": "\u20b91.11k", "2027": "\u20b91.19k", "2028": "\u20b91.29k"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 11.77%", "2020": "Analyst x2", "2021": "Est @ 10.5%", "2022": "Est @ 9.62%", "2023": "Est @ 9%", "2024": "Est @ 8.56%", "2025": "Est @ 8.26%", "2026": "Est @ 8.05%", "2027": "Est @ 7.9%", "2028": "Est @ 7.79%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 14.43%", "2019": "\u20b91.46k", "2020": "\u20b9504.42", "2021": "\u20b9487.12", "2022": "\u20b9466.64", "2023": "\u20b9444.49", "2024": "\u20b9421.70", "2025": "\u20b9398.96", "2026": "\u20b9376.70", "2027": "\u20b9355.20", "2028": "\u20b9334.60"}] Present Value of 10-year Cash Flow (PVCF)= ₹5.25b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. 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 7.6%. We discount the terminal cash flows to today's value at a cost of equity of 14.4%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹1.3b × (1 + 7.6%) ÷ (14.4% – 7.6%) = ₹20b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹20b ÷ ( 1 + 14.4%)10= ₹5.23b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is ₹10.48b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of ₹106.77. Relative to the current share price of ₹58.8, the company appears quite good value at a 45% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. 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 Prabhat Dairy 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 14.4%, which is based on a levered beta of 0.800. 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. Valuation is only one side of the coin in terms of building your investment thesis, and 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 Prabhat Dairy, There are three relevant aspects you should further examine: 1. Financial Health: Does PRABHAT 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 PRABHAT'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 PRABHAT? 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 IN 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.
Australia media demand press freedom law reforms after raids CANBERRA, Australia (AP) Australia's three largest media organizations joined forces on Wednesday to demand legal reforms that would prevent journalists from risking imprisonment for doing their jobs. The demands came after unprecedented raids against media organizations by police searching for leaked documents that some say were deeply embarrassing to the government. News Corp. Australia, Australian Broadcasting Corp. and Nine Entertainment made their demands after raids by federal police on consecutive days earlier this month at ABC's Sydney headquarters and a News Corp. reporter's Canberra home in search of secret government documents. The rival organizations want journalists to be exempt from national security laws passed since 2012 that "would put them in jail for doing their jobs." They also want a right to contest warrants such as those executed in Sydney and Canberra. Both the ABC and New Corp. this week lodged court challenges to both those warrants in a bid to have documents returned. The organizations have called for greater legal protections for public sector whistleblowers as well as reforms to freedom of information and defamation laws. ABC Managing Director David Anderson, News Corp. Australia Executive Chairman Michael Miller and Nine Chief Executive Hugh Marks addressed the National Press Club on Wednesday as part of a campaign to gain public support for reform. "Clearly, we are at a crossroads. We can be a society that is secret and afraid to confront sometimes uncomfortable truths or we can protect those who courageously promote transparency, stand up to intimidation and shed light on those truths to the benefit of all citizens," Anderson said. Miller described the police raids that have united media organizations in their demand for change as "intimidation, not investigation." "But there is a deeper problem the culture of secrecy," Miller said. "Too many people who frame policy, write laws, control information and conduct court hearings have stopped believing that the public's right to know comes first." Marks said "bad legislation on several fronts and probably overzealous officials ... in the judiciary, in the bureaucracy and our security services have steadily eroded the freedoms under which we, the media, can operate." "Put simply, it's more risky, it's more expensive to do journalism that makes a real difference in this country than it ever has been before," Marks said. The demands come a week before Parliament resumes for the first time since the conservative government was elected for a third term on May 18. Story continues Prime Minister Scott Morrison has not criticized the police raids, but has said he is open to suggestions for improvements to Australia's laws. Denis Muller, from the Melbourne University Center for Advancing Journalism, said the three organizations had identified "real flaws" in the laws and said their united front would put pressure on the government. "The government is going to be kicking and screaming every inch of the way with this because they will be getting very severe pushback from the bureaucracy, from the Federal Police, from the intelligence services," he said. Australia is the outlier among its Five Eyes intelligence-sharing partners the United States, Britain, Canada and New Zealand in not having oversight to balance press freedom with national security. "We're the only ones without any sort of formal protection of freedom of the press and we are the ones that have basically enacted the most oppressive national security regime," Muller said. Experts say Australia went from having no counterterrorism laws before the Sept. 11, 2001, attacks in the U.S. to having more than any other country in the world, with more than 60 new pieces of legislation and amendments. There had been no counterbalancing laws to uphold human rights or press freedom. Australia doesn't have enshrined rights like the U.S. First Amendment guarantee of free speech. Yet the World Press Freedom Index rates Australia at 21, higher than the United States at 41. Former army lawyer David McBride will appear in a Canberra court on Thursday on charges relating to the leaking of classified documents about Australian Special Air Service involvement in Afghanistan to ABC journalists. The leak was related to the police raid on the ABC. The ABC reported in 2017 on growing unease in the Australian Defense Force leadership about the culture of special forces, and that Australian troops had killed unarmed men and children. McBride told reporters two weeks ago that his prosecution was not about protecting national security but concealing "a national shame." The police raid on the home of Annika Smethurst, the political editor of Sydney's The Sunday Telegraph newspaper, focused on a 2018 story detailing an alleged government proposal to spy on Australian citizens, which cannot currently be done legally. No arrests were made as a result of either raid. View comments
Is Prabhat Dairy Limited (NSE:PRABHAT) Trading At A 45% Discount? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Does the June share price for Prabhat Dairy Limited (NSE:PRABHAT) 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. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model. See our latest analysis for Prabhat Dairy We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of 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, so we need to discount the sum of these future cash flows to arrive at a present value estimate: [{"": "Levered FCF (\u20b9, Millions)", "2019": "\u20b91.67k", "2020": "\u20b9660.50", "2021": "\u20b9729.89", "2022": "\u20b9800.09", "2023": "\u20b9872.08", "2024": "\u20b9946.76", "2025": "\u20b91.02k", "2026": "\u20b91.11k", "2027": "\u20b91.19k", "2028": "\u20b91.29k"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 11.77%", "2020": "Analyst x2", "2021": "Est @ 10.5%", "2022": "Est @ 9.62%", "2023": "Est @ 9%", "2024": "Est @ 8.56%", "2025": "Est @ 8.26%", "2026": "Est @ 8.05%", "2027": "Est @ 7.9%", "2028": "Est @ 7.79%"}, {"": "Present Value (\u20b9, Millions) Discounted @ 14.43%", "2019": "\u20b91.46k", "2020": "\u20b9504.42", "2021": "\u20b9487.12", "2022": "\u20b9466.64", "2023": "\u20b9444.49", "2024": "\u20b9421.70", "2025": "\u20b9398.96", "2026": "\u20b9376.70", "2027": "\u20b9355.20", "2028": "\u20b9334.60"}] Present Value of 10-year Cash Flow (PVCF)= ₹5.25b "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 (7.6%) 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 14.4%. Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = ₹1.3b × (1 + 7.6%) ÷ (14.4% – 7.6%) = ₹20b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= ₹₹20b ÷ ( 1 + 14.4%)10= ₹5.23b 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 ₹10.48b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of ₹106.77. Relative to the current share price of ₹58.8, the company appears quite good value at a 45% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. 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 Prabhat Dairy 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 14.4%, which is based on a levered beta of 0.800. 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. Valuation is only one side of the coin in terms of building your investment thesis, and 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 Prabhat Dairy, I've compiled three additional factors you should further examine: 1. Financial Health: Does PRABHAT 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 PRABHAT'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 PRABHAT? 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 NSE 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.
Saudi Arabia's NEOM says AECOM hired as project management consultant DUBAI, June 26 (Reuters) - Saudi Arabia's NEOM, which is building a mega economic zone, said on Wednesday it has appointed AECOM as a project management consultant for part of NEOM Bay, the first urban area to be developed in the zone. The company told Reuters that it will start this year the construction of NEOM Bay, which will be built in more than one phase. The $500 billion NEOM zone is part of Crown Prince Mohammed bin Salman's Vision 2030 plan that aims to attract foreign investments and create jobs in a bid to reduce the kingdom's reliance on oil. (Reporting by Saeed Azhar, editing by Davide Barbuscia)
Rome doctors warn of health hazards from city's garbage woes ROME (AP) — Doctors in Rome are warning of possible health hazards caused by overflowing trash bins in the city's streets, as the Italian capital struggles with a renewed garbage emergency aggravated by the summer heat. Trash disposal is a decades-long problem for the Eternal City. Rome was left with no major site to treat the 1.7 million metric tons of trash it produces every year since the Malagrotta landfill was closed in 2013. Successive mayors from different parties have all proved incapable of solving the city's garbage woes, which have re-emerged dramatically since Mayor Virginia Raggi of the populist 5-Star Movement took the helm three years ago. Raggi's administration is facing frustration and anger from both tourists and Romans over the piles of trash that threaten peoples' health and tarnish the city's image. "We've become the third, fourth world in my opinion," said Rome resident Rossana Franza. "Mrs. Raggi should take a small stroll here once and a while. Because in her neighborhood, which I have been to, it is all in order." Another woman living in Rome who only gave her name as Alessia told The Associated Press that a rat walked by her the other day and she cannot even go outside in the evenings because "there's an incredible stink." Animals like dogs, cats and rats or even birds like seagulls pose a serious health risks as they root around in garbage and spread bacterial infections through their waste or urine, Dr. Roberto Volpe from the National Research Council CNR told The Associated Press. "The main risk for us comes when we take out and throw the trash away," Volpe warned. "There's a risk of taking the contamination back home with us. That's why it's important to wash our hands properly afterward." Volpe also discouraged angry citizens from setting garbage piles on fire, saying that could cause greater health risks through dioxin contamination, which can lead to cancer. Officials in Rome, who are often at odds over the possible solutions to the constant waste emergency, do agree on one thing: the garbage problem needs a long-term solution. "Let's be honest ... no waste plan can solve a problem aggravated by 60 years of mismanagement in one year," said Marco Cacciatore, president of the local commission for environmental and city politics in Rome. "Let's tell the truth to citizens: We are human. This difficult infrastructural situation cannot be resolved in the short term."
What to Watch: Ryanair amends buyback, Bitcoin surges, We Buy Any Car takeover Ryanair is preparing for a no-deal Brexit. Photo: Omar Marques/SOPA Images/LightRocket via Getty Images Ryanair amends share buyback deal for no-deal Brexit Irish airline Ryanair, Europe’s largest low-cost carrier, said on Wednesday that it would amend the terms of its €700m (£625m) share buyback to prepare for a no-deal Brexit. The changes, which will allow it to repurchase shares from UK shareholders by way of block trades, would help ensure that the airline remains a majority EU-owned airline, something it needs to be to comply with the bloc’s rules. “Ryanair advises that it is amending the terms of the arrangements to allow for shares to be repurchased by way of block trades from EU holders of shares,” the airline said in a statement. Bitcoin surged 7% as it eyes $13,000 The price of bitcoin continues to climb higher, with the cryptocurrency spiking 7% against the dollar on Wednesday morning. At 8.45am UK time, bitcoin is up 7.1% against the dollar to $12,583.66 ( BTC-USD ) and up 7.5% against the pound to £9,967.56. Earlier in the session bitcoin came close to breaking through $13,000. The price rise extends bitcoin’s recent rally, which has seen it climb over 200% against the dollar so far this year and over 50% this month. TDR Capital is acquiring the owner of auto website We Buy Any Car Private equity firm TDR Capital said on Wednesday that it had reached agreement on an acquisition of BCA Marketplace, which values the company behind auto website We Buy Any Car at around £1.9bn. It comes as BCA Marketplace announced that its revenues jumped 24.5% to £3bn in the year to the end of March, with pre-tax profits climbing 18% to £89.5m. Shares in BCA Marketplace have been boosted by around 20% since the two companies announced last week that they were in advanced discussions about a possible takeover. Even then, the 243p per share offer by TDR Capital is a slight premium on Tuesday’s BCA closing price of 235p. The acquisition comes amid difficult trading conditions for the UK car industry. The Society of Motor Manufacturers and Traders warned on Tuesday that a no-deal Brexit could cost car manufacturers £50,000 per minute . Story continues European stocks fell European stocks looked set to follow their peers in Asia on Wednesday, which broadly fell. The Nikkei 225 ( ^N225 ) was down 0.51%, while the SSE Composite ( 000001.SS ) was down by 0.19%. The Hang Seng ( ^HSI ), however, was up by just 0.10%. The FTSE 100 ( ^FTSE ) fell by 0.13% in early trading. Germany’s DAX ( ^GDAXI ) declined by 0.2%, while France’s CAC 40 ( ^FCHI ) was down by 0.15%. Sterling was down 0.12% against the dollar ( GBPUSD=X ) on Friday, to around $1.267, and down 0.14% against the euro ( GBPEUR=X ), to around €1.115. What to expect in the US Stock futures are pointing to a higher open for the US market. S&P 500 futures ( ES=F ) are up 0.06%, Dow Jones Industrial Average futures ( YM=F ) are up by marginally by 0.01%, and Nasdaq futures ( NQ=F ) are up by 0.11%. Companies reporting later in the US today include: General Mills ( GIS )
Does Esprinet S.p.A. (BIT:PRT) Have A Good P/E Ratio? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Esprinet S.p.A.'s (BIT:PRT), to help you decide if the stock is worth further research. Based on the last twelve months,Esprinet's P/E ratio is 10.2. That means that at current prices, buyers pay €10.2 for every €1 in trailing yearly profits. View our latest analysis for Esprinet Theformula for P/Eis: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Esprinet: P/E of 10.2 = €2.7 ÷ €0.26 (Based on the year to March 2019.) A higher P/E ratio means that buyers have to paya higher pricefor each €1 the company has earned over the last year. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future. Companies that shrink earnings per share quickly will rapidly decrease the 'E' in the equation. That means unless the share price falls, the P/E will increase in a few years. So while a stock may look cheap based on past earnings, it could be expensive based on future earnings. Esprinet's earnings per share fell by 49% in the last twelve months. And over the longer term (5 years) earnings per share have decreased 13% annually. This could justify a pessimistic P/E. The P/E ratio essentially measures market expectations of a company. If you look at the image below, you can see Esprinet has a lower P/E than the average (12.9) in the electronic industry classification. This suggests that market participants think Esprinet will underperform other companies in its industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued. One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. That means it doesn't take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth. Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context. Esprinet's net debt is considerable, at 138% of its market cap. If you want to compare its P/E ratio to other companies, you must keep in mind that these debt levels would usually warrant a relatively low P/E. Esprinet trades on a P/E ratio of 10.2, which is below the IT market average of 15.7. Given meaningful debt, and a lack of recent growth, the market looks to be extrapolating this recent performance; reflecting low expectations for the future. Investors have an opportunity when market expectations about a stock are wrong. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold. Of courseyou might be able to find a better stock than Esprinet. So you may wish to see thisfreecollection of other companies that have grown earnings strongly. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Does PSP Projects Limited (NSE:PSPPROJECT) Have A Volatile Share Price? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Anyone researching PSP Projects Limited ( NSE:PSPPROJECT ) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks are more sensitive to general market forces than others. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market. Check out our latest analysis for PSP Projects What we can learn from PSPPROJECT's beta value Given that it has a beta of 0.86, we can surmise that the PSP Projects share price has not been strongly impacted by broader market volatility (over the last 5 years). This suggests that including it in your portfolio will reduce volatility arising from broader market movements, assuming your portfolio's weighted average beta is higher than 0.86. Beta is worth considering, but it's also important to consider whether PSP Projects is growing earnings and revenue. You can take a look for yourself, below. Story continues NSEI:PSPPROJECT Income Statement, June 26th 2019 Could PSPPROJECT's size cause it to be more volatile? PSP Projects is a rather small company. It has a market capitalisation of ₹19b, which means it is probably under the radar of most investors. It is not unusual for very small companies to have a low beta value, especially if only low volumes of shares are traded. Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility. What this means for you: Since PSP Projects is not heavily influenced by market moves, its share price is probably far more dependend on company specific developments. It could pay to take a closer look at metrics such as revenue growth, earnings growth, and debt. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as PSP Projects’s financial health and performance track record. I urge you to continue your research by taking a look at the following: Future Outlook : What are well-informed industry analysts predicting for PSPPROJECT’s future growth? Take a look at our free research report of analyst consensus for PSPPROJECT’s outlook. Financial Health : Are PSPPROJECT’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here . Other High-Performing Stocks : Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here . 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.
Why You Should Like Punjab Chemicals and Crop Protection Limited’s (NSE:PUNJABCHEM) ROCE Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Punjab Chemicals and Crop Protection Limited ( NSE:PUNJABCHEM ) 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 up, we'll look at what ROCE is and how we calculate it. Next, we'll compare it to others in its industry. And finally, we'll look at how its current liabilities are impacting its ROCE. What is Return On Capital Employed (ROCE)? ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. In general, businesses with a higher ROCE are usually better quality. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussin has suggested that a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. How Do You Calculate Return On Capital Employed? Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Punjab Chemicals and Crop Protection: 0.42 = ₹544m ÷ (₹3.7b - ₹2.4b) (Based on the trailing twelve months to March 2019.) So, Punjab Chemicals and Crop Protection has an ROCE of 42%. View our latest analysis for Punjab Chemicals and Crop Protection Is Punjab Chemicals and Crop Protection's ROCE Good? ROCE is commonly used for comparing the performance of similar businesses. Punjab Chemicals and Crop Protection's ROCE appears to be substantially greater than the 17% average in the Chemicals industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Setting aside the comparison to its industry for a moment, Punjab Chemicals and Crop Protection's ROCE in absolute terms currently looks quite high. Story continues Our data shows that Punjab Chemicals and Crop Protection currently has an ROCE of 42%, compared to its ROCE of 11% 3 years ago. This makes us think about whether the company has been reinvesting shrewdly. NSEI:PUNJABCHEM Past Revenue and Net Income, June 26th 2019 When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is, after all, simply a snap shot of a single year. Since the future is so important for investors, you should check out our free report on analyst forecasts for Punjab Chemicals and Crop Protection . Punjab Chemicals and Crop Protection's Current Liabilities And Their Impact On Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counter this, investors can check if a company has high current liabilities relative to total assets. Punjab Chemicals and Crop Protection has total assets of ₹3.7b and current liabilities of ₹2.4b. Therefore its current liabilities are equivalent to approximately 66% of its total assets. Punjab Chemicals and Crop Protection's high level of current liabilities boost the ROCE - but its ROCE is still impressive. The Bottom Line On Punjab Chemicals and Crop Protection's ROCE So to us, the company is potentially worth investigating further. There might be better investments than Punjab Chemicals and Crop Protection out there, but you will have to work hard to find them . These promising businesses with rapidly growing earnings might be right up your alley. I will like Punjab Chemicals and Crop Protection better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Japan watchdog to recommend $24 million fine for Nissan over Ghosn pay: source TOKYO (Reuters) - Japan's markets watchdog will likely recommend that the financial regulator fine Nissan Motor Co up to 4 billion yen ($37 million) over the alleged underreporting of former Chairman Carlos Ghosn's compensation, a source said. The Securities and Exchange Surveillance Commission (SESC) will likely recommend the fine on the basis that Ghosn's alleged underreported salary had a "significant" impact on investor decisions regarding the company, the source said, declining to be identified. A spokesman for the SESC declined to comment on specific cases, while Nissan was not immediately available for comment. The SESC is expected to formally start its investigation before the end of the month, when it examines Nissan's latest annual filings, the source said. If Nissan files documentation to the SESC before the formal investigation begins and recognizes that previous reporting was incorrect, it may receive a reduced fine of around 2.4 billion yen, the source said. Ghosn was arrested in Tokyo in November over allegations of financial misconduct, including understating his salary by around 9.1 billion yen ($84.71 million) over a period of nearly a decade and temporarily transferring personal financial losses to the books of Nissan, Japan's No. 2 automaker. Since then, he has also been accused of enriching himself by around $5 million at Nissan's expense. Ghosn, who has been released from detention pending his trail, denies all of the charges. The fine, which was earlier reported by domestic media, would cover a four-year period through March 2018, the source said. Due to the statute of limitations, Nissan is not liable for any underreporting before that period. (Reporting by Takahiko Wada; Writing by Naomi Tajitsu; Editing by David Dolan and Himani Sarkar)
Punjab Chemicals and Crop Protection Limited (NSE:PUNJABCHEM) Earns A Nice Return On Capital Employed Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll evaluate Punjab Chemicals and Crop Protection Limited (NSE:PUNJABCHEM) to determine whether it could have potential as an investment idea. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. First up, we'll look at what ROCE is and how we calculate it. Next, we'll compare it to others in its industry. And finally, we'll look at how its current liabilities are impacting its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. All else being equal, a better business will have a higher ROCE. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Punjab Chemicals and Crop Protection: 0.42 = ₹544m ÷ (₹3.7b - ₹2.4b) (Based on the trailing twelve months to March 2019.) So,Punjab Chemicals and Crop Protection has an ROCE of 42%. Check out our latest analysis for Punjab Chemicals and Crop Protection One way to assess ROCE is to compare similar companies. Using our data, we find that Punjab Chemicals and Crop Protection's ROCE is meaningfully better than the 17% average in the Chemicals industry. I think that's good to see, since it implies the company is better than other companies at making the most of its capital. Setting aside the comparison to its industry for a moment, Punjab Chemicals and Crop Protection's ROCE in absolute terms currently looks quite high. Our data shows that Punjab Chemicals and Crop Protection currently has an ROCE of 42%, compared to its ROCE of 11% 3 years ago. This makes us wonder if the company is improving. When considering this metric, keep in mind that it is backwards looking, and 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. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for Punjab Chemicals and Crop Protection. Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets. Punjab Chemicals and Crop Protection has total assets of ₹3.7b and current liabilities of ₹2.4b. Therefore its current liabilities are equivalent to approximately 66% of its total assets. Punjab Chemicals and Crop Protection's high level of current liabilities boost the ROCE - but its ROCE is still impressive. So we would be interested in doing more research here -- there may be an opportunity! Punjab Chemicals and Crop Protection looks strong on this analysis,but there are plenty of other companies that could be a good opportunity. Here is afree listof companies growing earnings rapidly. I will like Punjab Chemicals and Crop Protection better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 What PULSION Medical Systems SE's (MUN:PUS) ROCE Can Tell Us Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we'll look at PULSION Medical Systems SE (MUN:PUS) and reflect on its potential as an investment. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. First of all, we'll work out how to calculate ROCE. Second, we'll look at its ROCE compared to similar companies. And finally, we'll look at how its current liabilities are impacting its ROCE. ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. All else being equal, a better business will have a higher ROCE. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for PULSION Medical Systems: 0.22 = €6.4m ÷ (€35m - €6.2m) (Based on the trailing twelve months to December 2017.) So,PULSION Medical Systems has an ROCE of 22%. Check out our latest analysis for PULSION Medical Systems One way to assess ROCE is to compare similar companies. PULSION Medical Systems's ROCE appears to be substantially greater than the 12% average in the Medical Equipment industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Setting aside the comparison to its industry for a moment, PULSION Medical Systems's ROCE in absolute terms currently looks quite high. PULSION Medical Systems's current ROCE of 22% is lower than its ROCE in the past, which was 41%, 3 years ago. Therefore we wonder if the company is facing new headwinds. It is important to remember that ROCE shows past performance, and is not necessarily predictive. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is only a point-in-time measure. If PULSION Medical Systems is cyclical, it could make sense to check out thisfreegraph of past earnings, revenue and cash flow. Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that 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 counteract this, we check if a company has high current liabilities, relative to its total assets. PULSION Medical Systems has total assets of €35m and current liabilities of €6.2m. As a result, its current liabilities are equal to approximately 18% of its total assets. A minimal amount of current liabilities limits the impact on ROCE. Low current liabilities and high ROCE is a good combination, making PULSION Medical Systems look quite interesting. PULSION Medical Systems looks strong on this analysis,but there are plenty of other companies that could be a good opportunity. Here is afree listof companies growing earnings rapidly. I will like PULSION Medical Systems better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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 What PSP Projects Limited's (NSE:PSPPROJECT) P/E Is Telling Us Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll show how you can use PSP Projects Limited's (NSE:PSPPROJECT) P/E ratio to inform your assessment of the investment opportunity. Based on the last twelve months,PSP Projects's P/E ratio is 20.93. That is equivalent to an earnings yield of about 4.8%. Check out our latest analysis for PSP Projects Theformula for price to earningsis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for PSP Projects: P/E of 20.93 = ₹519.95 ÷ ₹24.84 (Based on the trailing twelve months to March 2019.) A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. Probably the most important factor in determining what P/E a company trades on is the earnings growth. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. That means even if the current P/E is high, it will reduce over time if the share price stays flat. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers. PSP Projects increased earnings per share by a whopping 32% last year. And its annual EPS growth rate over 5 years is 26%. With that performance, I would expect it to have an above average P/E ratio. One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. As you can see below, PSP Projects has a higher P/E than the average company (14.5) in the construction industry. That means that the market expects PSP Projects will outperform other companies in its industry. Clearly the market expects growth, but it isn't guaranteed. So further research is always essential. I often monitordirector buying and selling. The 'Price' in P/E reflects the market capitalization of the company. That means it doesn't take debt or cash into account. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof). With net cash of ₹2.5b, PSP Projects has a very strong balance sheet, which may be important for its business. Having said that, at 13% of its market capitalization the cash hoard would contribute towards a higher P/E ratio. PSP Projects's P/E is 20.9 which is above average (15.4) in the IN market. Its net cash position is the cherry on top of its superb EPS growth. So based on this analysis we'd expect PSP Projects to have a high P/E ratio. When the market is wrong about a stock, it gives savvy investors an opportunity. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. Of courseyou might be able to find a better stock than PSP Projects. So you may wish to see thisfreecollection of other companies that have grown earnings strongly. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
With A Return On Equity Of 16%, Has Powersoft S.p.A.'s (BIT:PWS) Management Done Well? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand Powersoft S.p.A. (BIT:PWS). Powersoft has a ROE of 16%, based on the last twelve months. Another way to think of that is that for every €1 worth of equity in the company, it was able to earn €0.16. Check out our latest analysis for Powersoft Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Powersoft: 16% = €2.5m ÷ €15m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. The higher the ROE, the more profit the company is making. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Powersoft has a similar ROE to the average in the Consumer Durables industry classification (14%). That's neither particularly good, nor bad. ROE doesn't tell us if the share price is low, but it can inform us to the nature of the business. For those looking for a bargain, other factors may be more important. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. While Powersoft does have a tiny amount of debt, with debt to equity of just 0.0084, we think the use of debt is very modest. Its very respectable ROE, combined with only modest debt, suggests the business is in good shape. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreereport on analyst forecasts for the company. But note:Powersoft may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Stocks - Micron, FedEx Gain Premarket; General Mills Falls Investing.com - Stocks in focus in premarket trading on Wednesday: • Micron (NASDAQ:MU) stock surged 8.8% by 8:20 AM ET (12:20 GMT) in premarket trading after the semiconductor maker’s earnings beat expectations and it said that it was still able to export certain products to China, despite the White House ban on American companies doing business with Huawei and others. • FedEx (NYSE:FDX) stock gained 2% after it reported better-than-expected earnings for the fiscal fourth-quarter after the bell on Tuesday. Still, the company warned that the U.S.-China trade dispute and the end of its Amazon.com (NASDAQ:AMZN) contract would hurt its fiscal 2020 results. • Tesla (NASDAQ:TSLA) stock inched up 0.3% despite Electrek reporting that the electric car company has only delivered 49,000 vehicles in North America during the soon-to-end second quarter, suggesting it will not meet CEO Elon Musk’s target of beating its existing quarterly record of 90,700 deliveries. • General Mills (NYSE:GIS) slumped 5.9% after its revenue came in below forecasts due to lower snack demand in North America, suggesting that consumers are turning away from traditional snacks faster than thought. • Walmart (NYSE:WMT) stock ticked up 0.3% on news that it plans a public listing of a minority stake in its Japanese supermarket unit Seiyu. No time frame for the listing was given. • Apple (NASDAQ:AAPL) stock rose 1.2% after it bought autonomous vehicle startup Drive.ai for an undisclosed amount. Related Articles Trump says he would impose additional tariffs on China: Fox Business Brazil med school network Afya aims to raise $250 million in U.S. IPO: sources BlackBerry beats revenue estimates as it reaps rewards of Cylance buy
Taking A Look At Powersoft S.p.A.'s (BIT:PWS) ROE Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Powersoft S.p.A. (BIT:PWS). Over the last twelve monthsPowersoft has recorded a ROE of 16%. That means that for every €1 worth of shareholders' equity, it generated €0.16 in profit. View our latest analysis for Powersoft Theformula for ROEis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Powersoft: 16% = €2.5m ÷ €15m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. That means it can be interesting to compare the ROE of different companies. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. If you look at the image below, you can see Powersoft has a similar ROE to the average in the Consumer Durables industry classification (14%). That's not overly surprising. ROE tells us about the quality of the business, but it does not give us much of an idea if the share price is cheap. I will like Powersoft better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Although Powersoft does use a little debt, its debt to equity ratio of just 0.0084 is very low. Its very respectable ROE, combined with only modest debt, suggests the business is in good shape. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking 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. 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 Now The Time To Look At Buying Esprinet S.p.A. (BIT:PRT)? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Esprinet S.p.A. (BIT:PRT), which is in the electronic business, and is based in Italy, received a lot of attention from a substantial price movement on the BIT over the last few months, increasing to €3.66 at one point, and dropping to the lows of €2.7. 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 Esprinet's current trading price of €2.7 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Esprinet’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 Esprinet The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.4% below my intrinsic value, which means if you buy Esprinet today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth €2.71, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Esprinet has a low beta, which suggests its share price is less volatile than the wider market. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 97% over the next year, the near-term future seems bright for Esprinet. 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?PRT’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor?If you’ve been keeping an eye on PRT, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining 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 Esprinet. You can find everything you need to know about Esprinet inthe latest infographic research report. If you are no longer interested in Esprinet, 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.
Could Quabit Inmobiliaria, S.A.'s (BME:QBT) Investor Composition Influence The Stock Price? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! If you want to know who really controls Quabit Inmobiliaria, S.A. (BME:QBT), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.' Quabit Inmobiliaria is not a large company by global standards. It has a market capitalization of €158m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about QBT. Check out our latest analysis for Quabit Inmobiliaria Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Quabit Inmobiliaria already has institutions on the share registry. Indeed, they own 31% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Quabit Inmobiliaria, (below). Of course, keep in mind that there are other factors to consider, too. It looks like hedge funds own 10% of Quabit Inmobiliaria shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. There is some analyst coverage of the stock, but it could still become more well known, with time. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own a reasonable proportion of Quabit Inmobiliaria, S.A.. It has a market capitalization of just €158m, and insiders have €19m 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, with a 34% stake in the company, will not easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It seems that Private Companies own 14%, of the QBT stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. It's always worth thinking about the different groups who own shares in a company. But to understand Quabit Inmobiliaria better, we need to consider many other factors. I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free. If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Democrats blame Trump's migration policies for drowning of man and daughter - AFP or licensors Democratic presidential candidates have blamed Donald Trump's hard-line immigration policies for the deaths of migrants on the US border after a graphic picture of a father and his daughter lying dead in the Rio Grande shocked the world. The photograph showed the drowned bodies of Salvadoran refugee Oscar Alberto Martinez Ramirez , 25, and his 23-month-old daughter, Valeria, locked in a final embrace as they attempted to cross the river from the Mexican city of Matamoros to Brownville, Texas. The image has come to symbolise the large-scale humanitarian crisis on America's southern border and prompted an outpouring of sympathy from across the globe. Leading Democrats, ahead of the first primary debate of the 2020 race on Wednesday night, were quick to lay the blame for the tragedy directly at the US president's door. "Trump is responsible for these deaths," presidential candidate Beto O'Rourke bluntly stated in a tweet. Rosa Ramirez cries at pictures of her son and granddaughter in her home in San Salvador Credit: Antonio Valladares/ AP Bernie Sanders and Joe Biden, the two front runners in the Democratic race, also lambasted Mr Trump. Mr Sanders called the photograph horrific", saying it demonstrated "the reckless disregard for basic humanity that have come from Trump's policies". Mr Biden called it "gut-wrenching" and "unconscionable". "History will judge how we respond to the Trump," he added. Mr Trump was defiant on Wednesday, saying the picture was proof that he "was right about a crisis on the border - turning fire on Democrats who have opposed his immigration policies, including funding for his proposed border wall. This image is gut-wrenching. The cruelty we're seeing at our border is unconscionable. History will judge how we respond to the Trump Administrations treatment of immigrant families & childrenwe cant be silent. This isn't who we are. This is not America. https://t.co/ZeMBmwUHxU Joe Biden (@JoeBiden) June 26, 2019 "I hate it," he said of the picture. "And I know it could stop immediately if the Democrats change the law. And then that father, who probably was this wonderful guy, with his daughter, things like that wouldn't happen. That's a very dangerous journey." Story continues "If we had the right laws, that the Democrats are not letting us have, those people, they wouldn't be coming up. They wouldn't be trying," Mr Trump said. Mr Trump has made cracking down on illegal immigration and asylum claims a cornerstone of his presidency, most recently with a plan to send thousands of asylum seekers back to Mexico while their cases are considered. As part of the plan, the Mexican government has so far deployed more than 20,000 troops to its borders to stem the tide of migrants attempting to travel to America. But human rights organisations have warned that the move risks causing migrants to attempt ever more dangerous routes to reach the US. Mr Trump's immigration policies have struggled against legal challenges and a number of high profile staff departures. Kirstjen Nielsen, the Homeland Security secretary, left the role in April amid frustration she was not doing enough to tackle the immigration numbers. Just this week, the head of the Customs and Border Protection agency announced that he was stepping down next month, amid outrage over his agency's treatment of detained migrant children. The new acting commissioner, Mark Morgan, an immigration hard-liner and former Fox News contributor, is a strong proponent for the nationwide deportation raids that Mr Trump announced last week. As the photo of Mr Ramirez and his young daughter was broadcast around the world, Democrats in the House of Representatives approved an emergency bill for $4.5 billion in humanitarian aid to address the plight of migrants at the border. The bill was voted down by the Senate, which has drafted its own bill that would allocate $4.59 billion for the border crisis, but with fewer conditions on how the money can be spent, adding to the uncertainty over whether a deal can be reached. How could you look at the @AP 's picture of a Salvadoran father and daughter and not understand that these are human beings, fleeing violence and persecution, willing to risk a periloussometimes fataljourney in search of a better life? https://t.co/nyy7twkPUx Chuck Schumer (@SenSchumer) June 26, 2019 Senate Democratic Leader Chuck Schumer, who earlier produced a large copy of the photo of Mr Ramirez and his daughter in the chamber, said he and most Democrats would vote for the bipartisan bill. "How could president Trump look at this picture and not understand these are human beings, fleeing violence and persecution, willing to risk a perilous - sometimes fatal - journey in search of a better life," he said. According to local media reports, Tania Vanessa Avalos, Mr Ramirezs wife, said the family had been kept for two months in the Puerta México camp, waiting for an appointment to discuss their asylum claim. These families seeking asylum are often fleeing extreme violence. And what happens when they arrive? Trump says, 'Go back to where you came from.' That is inhumane. Children are dying. This is a stain on our moral conscience. https://t.co/NHly7QTiAq Kamala Harris (@KamalaHarris) June 26, 2019 On Sunday, Mr Ramirez and his wife decided to abandon the asylum process and attempt an illegal crossing into the United States by swimming the Rio Grande river. Mr Ramirez took Valeria in his arms and swam across the river, setting her safely on the other side before returning to his wife. But as he started swimming back, his daughter fell into the water. He turned back and grabbed his daughter, but the pair was then swallowed by a strong current as Valerias mother looked on in horror. The following morning their bodies were discovered, 500 metres from the spot where the current took hold. Mr Ramirezs family initially faced immense financial costs of up to $7,500 to repatriate their relatives bodies, but the Salvadorian government has said it will pay for the funeral arrangements. Authorities stand behind yellow warning tape along the Rio Grande bank where the bodies were found The case has already drawn comparisons with that of Alan Kurdi, the three-year-old Syrian refugee whose body was photographed off the coast of the Greek island of Kos. It is very unfortunate that this happens, Mexican President Andrés Manuel López Obrador said at a news conference. He added that as increasing numbers of migrants are turned away by the US, there are people who lose their lives in the desert or crossing the Rio Grande. The Vatican said that Pope Francis had seen the image with immense sadness. The Pope is profoundly saddened by their death, and is praying for them and for all migrants who have lost their lives while seeking to flee war and misery, a spokesman said.
George Osborne's Evening Standard newspaper lost £11m last year Evening Standard editor George Osborne. Photo: Neil Hall/ Reuters The Evening Standard newspaper lost £11.6m last year despite strong readership growth in Britain and across the globe, new figures show. The free London newspaper, edited by former chancellor George Osborne, narrowed its losses in the year to September 2018 when compared to the previous year. The paper cut its operating losses by 5% after losing £11.8m in 2017, accounts filed by Evening Standard Limited with Companies House show. Group turnover increased by 2% to £65m, despite a “tightening market” in traditional print and classified advertising. The slight narrowing of losses came despite rising print costs and was helped by a 29% rise in digital revenue. The Evening Standard’s website and associated Homes & Property website saw a 22% rise in page views overall, with visitor numbers up 21% in the UK and 48% globally. READ MORE: Labour would crack down on lending to firms which ‘kill the planet’ Like many others, the newspaper has struggled with the shift of advertising away from print and towards online. But the Standard said its display advertising revenues had increased and said it has a “growing share of the quality print advertising market.” The accounts show no dividends were paid in either 2017 or 2018. The accounts, filed with Companies House, also show the Evening Standard raised £10m by issuing new shares in the year. The figures come as the newspaper awaits a government decision on whether to probe concerns over a new investor and his reported “strong links to the Saudi Arabian state.” A 30% stake in the parent company of the Evening Standard and the Independent newspapers was sold to a mystery investor through the Cayman Islands earlier this year, according to the Guardian. Culture secretary Jeremy Wright said he was considering ordering regulators to investigate the sale on public interest grounds amid fears over its influence on the newspapers’ editorial agendas. READ MORE: Firms still paralysed by uncertainty three years after Brexit vote
If You Had Bought Qt Group Oyj (HEL:QTCOM) Shares Three Years Ago You'd Have Made 159% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make muchmorethan 100% if the company does well. To wit, theQt Group Oyj(HEL:QTCOM) share price has flown 159% in the last three years. Most would be happy with that. It's also good to see the share price up 29% over the last quarter. Check out our latest analysis for Qt Group Oyj Because Qt Group Oyj is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth. Over the last three years Qt Group Oyj has grown its revenue at 18% annually. That's a very respectable growth rate. It's fair to say that the market has acknowledged the growth by pushing the share price up 37% per year. The business has made good progress on the top line, but the market is extrapolating the growth. It would be worth thinking about when profits will flow, since that milestone will attract more attention. The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart. Take a more thorough look at Qt Group Oyj's financial health with thisfreereport on its balance sheet. We've already covered Qt Group Oyj's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Qt Group Oyj hasn't been paying dividends, but its TSR of 168% exceeds its share price return of 159%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders. It's nice to see that Qt Group Oyj shareholders have gained 76% (in total) over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 39%. Given the track record of solid returns over varying time frames, it might be worth putting Qt Group Oyj on your watchlist. Shareholders might want to examinethis detailed historical 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 companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on FI 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.
Seychelles’ national stock exchange set to list ‘world-first’ regulated security token Seychelles' national securities exchange, MERJ Exchange, is planning to list a regulated security token,Bloomberg writes. It would currently be the world's first exchange to list fully-licensed tokenised stocks, as per the report. While it hasn’t shared any specific timeline, MERJ Exchange has committed to launching its Digital Assets and Security Token markets “soon," according to itswebsite. The exchange, which began trading equities, debt, and derivatives, in 2013, was formerly known as Trop-X Seychelles Ltd. It currently lists 31 securities and reports $325.9 million market capitalisation and is the only licensed securities exchange in Seychelles. “We truly believe this technology will be one of the key steps toward democratizing access to global access to the capital markets,” said MERJ Exchange CEO Edmond Tuohy. MERJ Exchange said the tokens will be traded alongside existing 'traditional' stock.
Are Railcare Group AB (publ)'s (STO:RAIL) Interest Costs Too High? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Investors are always looking for growth in small-cap stocks like Railcare Group AB (publ) (STO:RAIL), with a market cap of kr499m. However, an important fact which most ignore is: how financially healthy is the business? Understanding the company's financial health becomes essential, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. However, this is not a comprehensive overview, so I suggest youdig deeper yourself into RAIL here. Over the past year, RAIL has ramped up its debt from kr206m to kr236m , which accounts for long term debt. With this growth in debt, RAIL currently has kr32m remaining in cash and short-term investments , ready to be used for running the business. On top of this, RAIL has produced cash from operations of kr44m over the same time period, resulting in an operating cash to total debt ratio of 19%, meaning that RAIL’s operating cash is less than its debt. Looking at RAIL’s kr139m in current liabilities, it seems that the business arguably has a rather low level of current assets relative its obligations, with the current ratio last standing at 0.6x. The current ratio is the number you get when you divide current assets by current liabilities. RAIL is a highly-leveraged company with debt exceeding equity by over 100%. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. We can test if RAIL’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For RAIL, the ratio of 1.33x suggests that interest is not strongly covered, which means that debtors may be less inclined to loan the company more money, reducing its headroom for growth through debt. Although RAIL’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised. However, its low liquidity raises concerns over whether current asset management practices are properly implemented for the small-cap. I admit this is a fairly basic analysis for RAIL's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Railcare Group to get a better picture of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for RAIL’s future growth? Take a look at ourfree research report of analyst consensusfor RAIL’s outlook. 2. Valuation: What is RAIL 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 RAIL 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.
Does RAK Petroleum (OB:RAKP) Deserve A Spot On Your Watchlist? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. 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 likeRAK Petroleum(OB:RAKP), which has not only revenues, but also profits. While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. 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 RAK Petroleum In the last three years RAK Petroleum's earnings per share took off like a rocket; fast, and from a low base. So the actual rate of growth doesn't tell us much. Thus, it makes sense to focus on more recent growth rates, instead. Like the last firework on New Year's Eve accelerating into the sky, RAK Petroleum's EPS shot from US$0.18 to US$0.52, over the last year. You don't see 194% year-on-year growth like that, very often. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While RAK Petroleum did well to grow revenue over the last year, EBIT margins were dampened at the same time. So it seems the future my hold further growth, especially if EBIT margins can stabilize. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. While profitability drives the upside, prudent investors alwayscheck the balance sheet, too. It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. As a result, I'm encouraged by the fact that insiders own RAK Petroleum shares worth a considerable sum. Notably, they have an enormous stake in the company, worth US$1.1b. That equates to 26% of the company, making insiders powerful and aligned with other shareholders. Very encouraging. RAK Petroleum's earnings per share have taken off like a rocket aimed right at the moon. That EPS growth certainly has my attention, and the large insider ownership only serves to further stoke my interest. At times fast EPS growth is a sign the business has reached an inflection point; and I do like those. So yes, on this short analysis I do think it's worth considering RAK Petroleum for a spot on your watchlist. Of course, profit growth is one thing but it's even better if RAK Petroleum is receiving high returns on equity, since that should imply it can keep growing without much need for capital.Click on this link to see how it is faring against the average in its industry. 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.
Did You Miss Raspadskaya's (MCX:RASP) Whopping 635% Share Price Gain? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! For many, the main point of investing in the stock market is to achieve spectacular returns. And highest quality companies can see their share prices grow by huge amounts. For example, thePublic Joint Stock Company Raspadskaya(MCX:RASP) share price is up a whopping 635% in the last half decade, a handsome return for long term holders. If that doesn't get you thinking about long term investing, we don't know what will. On the other hand, the stock price has retraced 5.3% in the last week. But note that the broader market is down 0.2% since last week, and this may have impacted Raspadskaya's share price. We love happy stories like this one. The company should be really proud of that performance! See our latest analysis for Raspadskaya There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the last half decade, Raspadskaya became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It is of course excellent to see how Raspadskaya has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Raspadskaya's financial health with thisfreereport on its balance sheet. It's nice to see that Raspadskaya shareholders have received a total shareholder return of 39% over the last year. However, that falls short of the 49% TSR per annum it has made for shareholders, each year, over five years. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow. We will like Raspadskaya better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on RU 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.
Does Rajesh Exports Limited's (NSE:RAJESHEXPO) Past Performance Indicate A Stronger Future? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Assessing Rajesh Exports Limited's (NSE:RAJESHEXPO) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess RAJESHEXPO's recent performance announced on 31 March 2019 and evaluate these figures to its long-term trend and industry movements. See our latest analysis for Rajesh Exports RAJESHEXPO's trailing twelve-month earnings (from 31 March 2019) of ₹13b has increased by 2.1% compared to the previous year. However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 21%, indicating the rate at which RAJESHEXPO is growing has slowed down. To understand what's happening, let's examine what's transpiring with margins and if the rest of the industry is feeling the heat. In terms of returns from investment, Rajesh Exports has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. Furthermore, its return on assets (ROA) of 6.0% is below the IN Luxury industry of 6.3%, indicating Rajesh Exports's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Rajesh Exports’s debt level, has declined over the past 3 years from 31% to 19%. Rajesh Exports's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Rajesh Exports has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Rajesh Exports to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for RAJESHEXPO’s future growth? Take a look at ourfree research report of analyst consensusfor RAJESHEXPO’s outlook. 2. Financial Health: Are RAJESHEXPO’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.
Over 5,000 turtles seized at Kuala Lumpur Airport Customs officials display seized over 5,000 turtles at Kuala Lumpur Airport (AP) Customs agents in Malaysia have seized more than 5,000 turtles from luggage at Kuala Lumpur Airport, along with thousands of pounds worth of drugs. Senior customs official Zulkurnain Mohamed Yusof said agents found 5,255 baby red-ear slider turtles kept in small baskets in the luggage of two Indian nationals who flew in from Guangzhou, China, on June 20. He said the men had no permits for the turtles and told investigators that the terrapins, estimated to be worth about £10,000, were meant to be sold as pets in India. Agents found 5,255 baby red-ear slider turtles kept in small baskets (AP) The turtles were found in the luggage of two Indian nationals who flew in from Guangzhou, China, on June 20 (AP) The men are expected to be charged and could face up to five years in jail and a fine, he said. Mr Zulkarnain said officials also found 14.34kg of methamphetamine worth 717,000 ringgit (£136,000), hidden in special compartments in boxes that were hand-carried by two men. Read more from Yahoo News UK: Ian Brady ‘had access to vulnerable teenagers in jail’ Two members of 'callous' puppy farming gang jailed Police 'arrest' grandmother, 93, and her family is over the moon One of them flew in from Hyderabad, India, on June 19 and another on June 20 from Bengaluru, he said. The two men, believed to be drug mules, are expected to be charged and face the death penalty if convicted. The terrapins, estimated to be worth about £10,000, were meant to be sold as pets in India (AP) The red-ear slider is one of the world's most commonly traded turtles meant for the pet and meat markets. Permits are required as young turtles are susceptible to carrying salmonella and pose health concerns.
Is Public Joint Stock Company Polyus's (MCX:PLZL) 4.6% Dividend Worth Your Time? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Dividend paying stocks like Public Joint Stock Company Polyus (MCX:PLZL) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Polyus is a new dividend aristocrat in the making. It sure looks interesting on these metrics - but there's always more to the story . Some simple research can reduce the risk of buying Polyus for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on Polyus! 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. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Polyus paid out 74% of its profit as dividends. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift 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. The company paid out 69% of its free cash flow, which is not bad per se, but does start to limit the amount of cash Polyus has available to meet other needs. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Remember, you can always get a snapshot of Polyus's latest financial position,by checking our visualisation of its financial health. Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Looking at the last decade of data, we can see that Polyus paid its first dividend at least nine years ago. Although it has been paying a dividend for several years now, the dividend has been cut at least once by more than 20%, and we're cautious about the consistency of its dividend across a full economic cycle. During the past nine-year period, the first annual payment was RUруб17.79 in 2010, compared to RUруб275 last year. Dividends per share have grown at approximately 36% per year over this time. Polyus's dividend payments have fluctuated, so it hasn't grown 36% every year, but the CAGR is a useful rule of thumb for approximating the historical growth. Polyus has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, but it might be worth considering if the business has turned a corner. With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? It's good to see Polyus has been growing its earnings per share at 77% a year over the past 5 years. With recent, rapid earnings per share growth and a payout ratio of 74%, this business looks like an interesting prospect if earnings are reinvested effectively. Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. First, we think Polyus is paying out an acceptable percentage of its cashflow and profit. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Ultimately, Polyus comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 9 analysts we track are forecasting for Polyusfor freewith publicanalyst estimates for the company. Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Kirstie Allsopp quit Twitter after she was abused for smashing her kids' iPads Kirstie Allsopp (Credit: Jeff Spicer/Getty Images) Kirstie Allsopp has revealed she was forced to leave social media by abusive Twitter trolls who targeted her after she smashed her kids iPads. The Location, Location, Location presenter deliberately broke her kids iPads to stop them playing video games, but the backlash she received prompted her to leave the social media site. Speaking to The Sun , Allsopp revealed that she had to quit Twitter because her young sons saw some of the abusive comments that were sent to her. Read more: Kirstie Allsopp says Instagram makes her sad Allsopp received abuse from gamers online after smashing her kids' iPads for playing too much Fortnite (Credit: VALERY HACHE/AFP/Getty Images) I didnt want them to see that and thats why I shut down the account. I usually get zero abuse on Twitter there are controversies and people give their opinion but it was the first time Id been abused. Last year on The Jeremy Vine Show , Allsopp revealed that she smashed their iPads after they broke her screen time rules, playing the popular online game Fortnite. However, some people thought the presenter went too far. A lot of the gamers went nuts, she continued. I think they felt that someone was trying to cut their willy off or something. Fortnite app logo displayed on an tablet (Credit: LIONEL BONAVENTURE/AFP/Getty Images) Read more: Location, Location, Location viewers angered by picky couple She has since rejoined Twitter and is now launching a new craft show on Channel 4 called Celebrity Craft Masters, which will see a number of stars take on Allsopps challenges. On the new show, she said: I want Love Island viewers to be interested in craft. If they watch the show once and never again but go and do a craft, then thats the nut Ive cracked. Yesterday, the presenter urged young people to buy houses and start having babies NOW. She said couples should also stop shelling out thousands and thousands on weddings because they would wish they had that money to spent on top quality childcare one day.
Is Plastika Kritis S.A.'s (ATH:PLAKR) 12% ROE Better Than Average? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Plastika Kritis S.A. (ATH:PLAKR), by way of a worked example. Our data showsPlastika Kritis has a return on equity of 12%for the last year. Another way to think of that is that for every €1 worth of equity in the company, it was able to earn €0.12. See our latest analysis for Plastika Kritis Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Plastika Kritis: 12% = €26m ÷ €250m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. That means ROE can be used to compare two businesses. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. You can see in the graphic below that Plastika Kritis has an ROE that is fairly close to the average for the Chemicals industry (12%). That's not overly surprising. ROE doesn't tell us if the share price is low, but it can inform us to the nature of the business. For those looking for a bargain, other factors may be more important. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. While Plastika Kritis does have a tiny amount of debt, with debt to equity of just 0.061, we think the use of debt is very modest. Its ROE isn't particularly impressive, but the debt levels are quite modest, so the business probably has some real potential. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better. But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. Check the past profit growth by Plastika Kritis by looking at thisvisualization of past earnings, revenue and cash flow. But note:Plastika Kritis may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Oppo's under-screen camera is real and taking photos in Shanghai Earlier this month, Oppoteasedits upcoming under-screen camera tech with a quick and dirty video, and Xiaomi was quick to announce that it was working on something similar. Neither company explained how the tech worked back then, but today, our colleagues over atEngadget Chinesewere able to give this new feature a spin at MWC Shanghai, and Oppo was also willing to shed some light on the how. Just like in the earlier video demo, when the camera is idle, the screen works just as normal. However, when you look up close, the area above the camera appears to be more pixelated. According to Oppo, this zoned-out area features a highly-transparent material plus a redesigned pixel structure for improved light transmittance. In other words, this camera tech requires a customized display panel, because existing ones won't do the job -- their transparency properties are only good enough for in-display fingerprint readers, but not conventional cameras. Oppo added that the under-screen camera itself also packs a larger sensor with bigger pixels, along with a larger aperture to get as much light as possible. This does mean a drop in resolution, and based on our quick comparison, there's certainly room for improvement in terms of clarity and color accuracy. This is a little worrying, considering Oppo has already applied its algorithm fix on haze removal, HDR plus white balance, and it'll have to put in extra effort here to meet its usual selfie standards. There's still no update on when we can expect this under-screen camera technology to show up on a mass-production phone -- all we were told was this will be released "in the near future." Given that Xiaomi is also toying with this tech, chances are these two brands are not alone in this race. At least this will keep us entertained until someone finally figures out thefoldable form factor, anyway.
FAA reassigns three in office overseeing Southwest Airlines: source WASHINGTON (Reuters) - The Federal Aviation Administration has reassigned three managers in its office overseeing Southwest Airlines Co, a person briefed on the matter said on Tuesday. The FAA said in a statement that it takes "allegations regarding safety oversight and retaliation seriously .... To uphold these principles, we take appropriate action as necessary. We do not comment on personnel matters." The Wall Street Journal, which reported the FAA reassignments earlier on Tuesday, said they were "also prompted by allegations that managers retaliated against whistleblowers," citing sources familiar with the matter. Southwest Airlines said in a statement it had no "insight to share on the recent staffing decisions made within the FAA." The people reassigned include the office manager and two assistants, the person said. The shakeup comes as the Transportation Department's inspector general is auditing a number of issues related to the FAA's oversight of Southwest. The inspector general's office said last year it was opening a review after "recent events have raised concerns about FAA's safety oversight, particularly for Southwest Airlines" including a midair incident in April 2018 in which an engine exploded and one person was killed. The Journal reported in February the FAA was investigating Southwest for widespread failure to accurately track the combined weight of checked bags loaded onto its jets. The inspector general said in June 2018 had received a complaint "regarding a number of operational issues at Southwest Airlines, such as alleged pilot training deficiencies, which raise concerns about FAA's oversight of the carrier." In May 2018, the FAA said federal investigators were assigned to monitor Southwest maintenance operations, after whistleblower complaints of mistreatment of mechanics raised concerns. The agency said it found no rule violations and that the assignment of additional inspectors was standard practice to preclude any deterioration in maintenance. (Reporting by David Shepardson; Editing by Sandra Maler)
Taking A Look At Plastika Kritis S.A.'s (ATH:PLAKR) ROE Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand Plastika Kritis S.A. (ATH:PLAKR). Plastika Kritis has a ROE of 12%, based on the last twelve months. One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.12 in profit. See our latest analysis for Plastika Kritis Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Plastika Kritis: 12% = €26m ÷ €250m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all earnings retained by the company, plus any capital paid in by shareholders. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies. By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. The image below shows that Plastika Kritis has an ROE that is roughly in line with the Chemicals industry average (12%). That's neither particularly good, nor bad. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. While Plastika Kritis does have a tiny amount of debt, with debt to equity of just 0.061, we think the use of debt is very modest. I'm not impressed with its ROE, but the debt levels are not too high, indicating the business has decent prospects. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities. Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better. But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. You can see how the company has grow in the past by looking at this FREEdetailed graphof past earnings, revenue and cash flow. 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.
Genesis Capital: Institutional Activity in Crypto Up 300% in 12 Months Bitcoin (BTC)’s rise to multi-month highs may be attributable to a significant uptick in institutional activity over the past year, according to a reportbroadcaston CNBC television on June 25. Data from institutional crypto lender Genesis Capital — an affiliate of Genesis Global Trading — reportedly reveals a significant increase in activity from institutional counter-parties, with volumes two to three times higher than they were twelve months ago. Alongside institution-led momentum, CNBC notes that while many have attributed bitcoin’s strong price performance to market sentiment buoyed by the recent unveiling of Facebook’s Libra, BTC was in factalready trading140% up on the year prior to the revelation. Moreover, an increase in geopolitical tensions — whether it be the United States-China trade war, or the increasinglyhawkish exchangesbetween Iran and President Trump — may be bolstering interest in non-sovereign cryptocurrencies such as bitcoin, CNBC notes. While bitcoin’s popularity to date as a speculative instrument and store of value has often generated comparisons with gold, CNBC cites an unnamed portfolio manager who reportedly claimed that the relationship between the two assets is: “...less about the correlation and more about investors trying to diversify smaller parts of their portfolio into other assets.” As the market continues to see a flush of green — with bitcoin up a further12% todayto break above $12,500 — CNBC singled out the forthcoming U.S. House Financial Services Committee Hearing on Facebook’s Libra, set for July 17, as a key event to watch for those following developments in the space. As reported earlier today, bitcoin has nowsurgedto a market dominance above 60% for the first time since April 2017, as per data from CoinMarketCap. Bitcoin Knowledge podcast hostTrace Mayerhas meanwhileclaimedthat the coin’s current trajectory should favor an year-end bitcoin price of $21,000, citing the soaring readings of a technical price metric that divides the asset’s current price by its 200-day moving average. • Bitcoin Breaks $13,000 As Rally Continues • Bitcoin Doubters ‘Having a Hard Time’ Continuing Doubting, Says Nexo Exec • Bitcoin Holds $9,100 Support While Top 20 Coins Trade Sideways • New CryptoCompare Research Assesses Top Performers Among Crypto Exchanges
Plastika Kritis S.A. (ATH:PLAKR): Has Recent Earnings Growth Beaten Long-Term Trend? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Measuring Plastika Kritis S.A.'s (ATH:PLAKR) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess PLAKR's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements. Check out our latest analysis for Plastika Kritis PLAKR's trailing twelve-month earnings (from 31 December 2018) of €26m has increased by 8.6% compared to the previous year. However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 15%, indicating the rate at which PLAKR is growing has slowed down. To understand what's happening, let’s take a look at what’s going on with margins and whether the whole industry is experiencing the hit as well. In terms of returns from investment, Plastika Kritis has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 8.6% exceeds the GR Chemicals industry of 5.8%, indicating Plastika Kritis has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Plastika Kritis’s debt level, has increased over the past 3 years from 15% to 15%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 14% to 6.1% over the past 5 years. While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Plastika Kritis gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Plastika Kritis to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for PLAKR’s future growth? Take a look at ourfree research report of analyst consensusfor PLAKR’s outlook. 2. Financial Health: Are PLAKR’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 December 2018. 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.
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As president, Biden wants more 'civility.' His rivals want more power. Kamala Harris. (Photo illustration: Yahoo News; photos: Michael Brochstein/SOPA Images/LightRocket via Getty Images, AP (2), Larry Downing/Reuters) Presidential elections are decided by many things: media exposure, financial backing, personal chemistry, timing and luck. Policy positions often are just a way of signaling where a candidate stands on the political spectrum. But 2020 is shaping up to be different, the most ideas-driven election in recent American history. On the Democratic side, a robust debate about inequality has given rise to ambitious proposals to redress the imbalance in Americans’ economic situations. Candidates are churning out positions on banking regulation, antitrust law and the future effects of artificial intelligence. The Green New Deal is spurring debate on the crucial issue of climate change, which could also play a role in a possible Republican challenge to Donald Trump. Yahoo News will be examining these and other policy questions in “The Ideas Election” — a series of articles on how candidates are defining and addressing the most important issues facing the United States as it prepares to enter a new decade. Democrats want to accomplish some very big things in 2021. Extending Medicare to every American. Mobilizing the entire U.S. economy to combat the existential threat of global warming. Creating a pathway to citizenship for 12 million undocumented immigrants. The list goes on. But how? By giving the next president more power — at least in the view of a growing number of Democrats running to be the next president. Consider next November’s likeliest outcome. Based on current polling , one of the Democratic candidates — perhaps Joe Biden, Bernie Sanders, Elizabeth Warren, Pete Buttigieg or Kamala Harris — could well be the next president. The odds also favor a Democratic House. But while Democrats can dream of recapturing the Senate, the best they can hope for is 52 or 53 seats — nowhere near a filibuster-proof supermajority of 60. As a result, Senate GOP leader Mitch McConnell will still have the power to block most, if not all, Democratic legislation. And so the most important question of the 2020 presidential race, at least for Democrats, isn’t “What will you do as president?” Story continues It’s “How will you do anything at all?” House Speaker Nancy Pelosi with a chart referencing Senate Majority Leader Mitch McConnell and the Republican-controlled Senate in June. (Photo: Jonathan Ernst/Reuters; digitally enhanced by Yahoo News) Biden, the early frontrunner, recently offered his answer to that question. For months the former vice president has been predicting that if he wins the presidency in 2020, Republicans will stop stonewalling and start cooperating. “With Trump gone you’re going to begin to see things change,” Biden said in early June. “Because these folks know better. They know this isn’t what they’re supposed to be doing.” Asked by the Washington Post’s Dave Weigel why Republicans would want to work with Biden after making it their mission for eight years to obstruct his old boss, Barack Obama, the former Delaware senator insisted that he could persuade them. How? By showing that cooperation is “in their own self-interest” — then threatening to “go out and campaign against [them]” if they refuse. He even went so far as to cite his history of working with segregationist senators as an example of how he would “get things done.” “The system is not broken; the politics are broken,” Biden told Weigel. “The system’s worked pretty damn well. It’s called the Constitution. It says you have to get a consensus to get anything done.” Yet Biden’s conviction isn’t shared by some of his leading rivals for the Democratic nomination, who describe it as wishful thinking (or worse, in the case of working with segregationists). For them, the only immediate solution to Republican obstruction isn’t, as Biden put it, for the president to “be a lot more civil.” It’s for the president to be a lot more powerful. “This business that Democrats play by one set of rules and Republicans play by a different set of rules — those days are over when I’m president,” Elizabeth Warren recently told Vox’s Ezra Klein . “We’re not doing that anymore.” Experts, meanwhile, are worried about the escalating political conflict that could ensue. “We should not be happy about this,” says Norm Ornstein, the author of “It’s Even Worse Than It Looks: How the American Constitutional System Collided With the Politics of Extremism.” “We’re approaching a fundamental breakdown of the system.” The growing Democratic push for more presidential power has its roots in a U-turn Obama made about halfway through his presidency — and a lingering sense of regret among progressives about how much more he could have accomplished if he’d reversed course earlier. Presidents have always strained against — and stretched — the limits of their power. Abraham Lincoln suspended the writ of habeas corpus during the Civil War. FDR invented the modern administrative state during the Great Depression. George W. Bush pushed the boundaries of intelligence-gathering and law enforcement after Sept. 11. But something changed during the Obama administration. In 2009, the young Illinois senator took office vowing to implement an era of bipartisan cooperation. He spent the first two and a half years of his tenure trying to meet the opposition halfway. What he didn’t realize is that Republicans had already decided not to budge. On inauguration night, as Obama celebrated at various balls, a group of 15 top GOP lawmakers met with former House Speaker Newt Gingrich and messaging maven Frank Luntz at Washington’s Caucus Room restaurant to plot their comeback. “If you act like you’re the minority, you’re going to stay in the minority,” said California Rep. Kevin McCarthy. “We’ve got to challenge them on every single bill.” As Robert Draper later reported in his book “Do Not Ask What Good We Do: Inside the U.S. House of Representatives,” the group agreed to “show united and unyielding opposition to the president’s economic policies.” House Majority Whip Kevin McCarthy at a meeting with the House Republican Conference in 2013. (Photo: Larry Downing/Reuters; digitally enhanced by Yahoo News) The obstruction began immediately. When Obama’s stimulus package came up for a vote that February, the entire House Republican caucus voted against it. Under Carter, Reagan, George H.W. Bush, Clinton and George W. Bush, the Senate confirmed between 79 and 93 percent of the judicial nominees put forward during each administration's first 18 months. The confirmation rate during Obama’s first year and a half was 43 percent, or roughly half the historical norm. In 1981, 37 Senate Democrats voted for Ronald Reagan's tax cuts; 20 years later, 12 Senate Democrats voted for George W. Bush’s. In contrast, Obama pushed seven major bills before Republicans captured the House in 2011. Those proposals, combined, received a total of 15 Republican votes in the Senate. Things only became less collegial thereafter. In the 2010 midterms, Republicans gained 63 seats in the House and six seats in the Senate — not enough for unified control but more than enough to stifle Obama’s entire agenda. And that’s what they did, breaking all filibuster records by blocking legislation at more than twice the rate of any previous Congress . Over the remaining six years of Obama’s presidency, there were more successful filibuster threats in the Senate (289) than there had been from 1919 to 2006. And that led Obama to decide he’d had enough (as the author of this article reported in 2012 ). Under the umbrella of a new governing (and messaging) strategy — “We Can’t Wait” — he began to issue executive orders and administrative directives intended to accomplish what he couldn’t get through Congress. A new program to help homeowners refinance their underwater mortgages. A multipart plan to ease terms on student loans. Waivers from No Child Left Behind education requirements . Waivers from welfare work-participation rules . And finally, in 2012 and 2014, an order deferring the threat of deportation for millions of “Dreamers” who'd been brought to the United States illegally as children — even though he’d previously insisted that the only way to deliver relief was by muscling the long-stalled DREAM Act through Congress. "We live in a democracy," Obama had said in September 2011. "You have to pass bills through the legislature, and then I can sign it. And if all the attention is focused away from the legislative process, then that is going to lead to a constant dead end." Not after 2012. By the end of his second term, Obama had added cutting carbon emissions from coal-fired power plants, strengthening gun background checks, requiring insurers to cover birth control and raising labor standards for federal contractors to his go-it-alone list. President Barack Obama in the East Room in 2012. (Photo: Andrew Harrer/Bloomberg via Getty Images; digitally enhanced by Yahoo News) Taken individually, none of Obama's unilateral maneuvers was extraordinary, conservative hysteria aside; presidents had been making similar moves for decades. And yet together they represented a break from the past. Unlike most of his predecessors, Obama did not expand presidential power to meet the demands of an external crisis. Instead, he was forced to counteract a new pattern of partisan behavior — nonstop congressional obstruction — with a partisan (and increasingly preemptive) approach of his own. The result was an extraconstitutional arms race of sorts: a new normal that habitually circumvented the legislative process envisioned by the framers. Republicans provided a blueprint for future congressional minorities, demonstrating the possibilities and advantages of using procedural tricks to incapacitate a president they oppose. For his part, Obama drafted a playbook for future presidents to deploy in response: How to Get What You Want Even If Congress Won't Give It to You. Now, a few years later, that’s the very playbook many of Obama’s would-be Democratic successors are promising to adopt — and expand. Visit any 2020 campaign website and you’ll see the usual list of utopian legislative proposals. But dig a little deeper, beyond the boilerplate, and you’ll find that when it comes to plans with an actual chance of being implemented, many rely heavily on executive authority. California Sen. Kamala Harris is perhaps the best example. Last week, Harris announced that as president she will reinstate Obama’s Deferred Action for Childhood Arrivals program, or DACA, which Trump has attempted to end. But she won’t stop there . In addition, Harris plans to make it easier for DACA recipients to apply for citizenship while extending the program’s protections to their parents and other law-abiding immigrants with strong community ties. Ultimately, Harris’s campaign estimates that such unilateral maneuvers would give 2 million immigrants a path to citizenship and protect up to 6 million from deportation — many times more than the hundreds of thousands affected by Obama’s order. This would be the closest America has come in decades to wholesale immigration reform, and it would occur entirely through executive fiat. “Sen. Harris is focused on tangible, direct action that helps people, especially in this era of congressional dysfunction and Republican obstruction,” campaign press secretary Ian Sams tells Yahoo News. “While she won't stop fighting to pass broad reforms, such as major middle-class tax cuts, rent relief and protection for reproductive rights, she will use every tool within her executive authority to bring about immediate change.” Sen. Kamala Harris at an immigration roundtable at the University of Nevada, Las Vegas, in June. (Photo: John Locher/AP; digitally enhanced by Yahoo News) Harris would take the same approach to gun control and wage equality. If Congress fails to pass gun legislation during her first 100 days in office, she has pledged to sign an executive order mandating background checks for customers of any dealer who sells more than five guns a year. To help close the gender pay gap, Harris would require federal contractors to show that they are paying men and women equally — and bar them from competing for federal contracts over $500,000 if they fall short. By campaigning in advance on plans meant to circumvent future obstruction — as opposed to just responding to existing obstruction with executive workarounds — Harris is taking Obama’s “We Can’t Wait” strategy more literally than Obama himself did, building a popular mandate for an approach to presidential power that at least partially writes off congressional engagement from the get-go. And she’s hardly alone. Julián Castro, the former mayor of San Antonio and secretary of housing and urban development, would get the government out of the business of routine immigration enforcement; likewise, former Texas Rep. Beto O’Rourke says he will issue a barrage of executive orders to radically restrict immigration enforcement. O’Rourke’s plans on LGBTQ rights and climate change also lean heavily on executive actions. Warren has pledged on her first day in office to sign an executive order “that says no more drilling — a total moratorium on all new fossil fuel leases, including for drilling offshore and on public lands.” New Jersey Sen. Cory Booker announced last month that he would “affirmatively advance reproductive rights and expand access to reproductive care” through executive actions, creating a White House Office of Reproductive Freedom in the process. And on Tuesday, Minnesota Sen. Amy Klobuchar went even further, unveiling a list of 100 executive actions she would take during her first 100 days in office — essentially transforming the president’s traditional “First 100 Days” legislative agenda into a wholly one-sided affair. “After four years of Donald Trump, a new president can’t wait for a bunch of congressional hearings to act,” Klobuchar explained. For now, the politics of presidential power are straightforward. Signaling that you expect Mitch McConnell to block your agenda and promising that you will amass as much power as possible to fight back is a popular position in the eyes of Democratic primary voters scarred by the unprecedented obstruction of the Obama era — which is why such pledges are playing a bigger role in the 2020 presidential campaign than ever before. The issue of presidential power probably won’t hurt Democrats in the general election, either. Though Trump tweeted in 2014 that “Repubs must not allow Pres Obama to subvert the Constitution of the US for his own benefit & because he is unable to negotiate w/ Congress,” he has embraced executive action while in office, boasting on his 100th day that no president since World War II had signed as many executive orders by that point (even if many were essentially meaningless) and leaving acting secretaries in charge of major agencies to skirt the Senate confirmation process (even though his own party is in charge of the chamber). But if a Democrat wins in 2020 — and starts to govern by going solo — all of that will change. Trump should serve as a warning here. During discussions about executive authority, Obama was known to worry about "leav[ing] a loaded weapon lying around”; his successor has since picked up that weapon and used it to blast holes in his legacy. Legislation may be difficult to pass, but it’s also difficult to overturn. Executive maneuvers are the opposite. All it takes to undo them is a president who disagrees with your politics, and Trump has taken advantage, using executive actions and cabinet-level agency decisions to reverse fragile Obama accomplishments on climate change, LGBTQ rights, labor standards, health care and immigration. Even where he’s been stymied by the courts, as with DACA, the resulting uncertainty still serves to undermine the protections Obama unilaterally put in place. President Trump after signing an executive order in October 2017. (Photo: Kevin Lamarque/Reuters; digitally enhanced by Yahoo News) Beyond the absurdity of reducing America’s entire governing process to successive presidents simply erasing each other’s achievements with the stroke of a pen, Democrats should also worry where escalation could lead. Imagine that Warren wins the presidency. The Massachusetts senator hasn’t made executive action a centerpiece of her campaign the way her counterpart from California has. But as the only candidate who has created a federal agency from scratch (the Consumer Financial Protection Bureau), she is unusually familiar with the inner workings of the regulatory state; as president, her campaign tells Yahoo News, she would aggressively advance her agenda on education, the environment and the economy by appointing like-minded regulators and enforcing regulations that previous administrations have overlooked. At the same time, Warren has vowed to push her party to end the legislative filibuster if Democrats win control of the Senate and McConnell continues to “ block things the way he did during the Obama administration .” If that scenario does come to pass — a big if, given how many Senate Democrats still publicly support the filibuster , but one worth considering — Washington would descend into the unknown. Accompanied by regulatory changes, the president’s legislative agenda might sail through on a series of party-line, simple-majority votes, but the increasingly conservative judiciary could push back, leaving the country rudderless. “I can imagine a lot of these judges — most of whom are favorably disposed toward executive power — deciding things are a little different with a Democratic president in charge,” says Norm Ornstein. “So you could start to see these actions and laws being reversed by the Supreme Court.” Democrats, in turn, could respond by pushing some of the big, self-serving structural reforms they’ve been floating this year on the trail: abolishing the Electoral College ; granting statehood to Puerto Rico and Washington, D.C.; adding justices to the Supreme Court . It would be a constitutional clash of epic proportions. “Once you start down the path of expanding presidential authority — or continue down that path, or pave new lanes for that path — you're creating more opportunities for imbalances of power and abuses of power,” Ornstein says. “We’d be in a place dark enough that it would not be at all clear we'd be able to avoid serious unintended consequences. It would be a transformation of the system in a fundamental way.” Which is exactly what Biden, for one, has worried about all along. Back in 2011, as various White House advisers grumbled about congressional obstruction, the 36-year Senate veteran suddenly piped up to remind Obama's team that whatever they did next, they had to do it in a way that preserved the integrity of the White House, Congress and the relationship between them. Joe Biden at Clinton Community College in Iowa in June. (Photo: Charlie Neibergall/AP; digitally enhanced by Yahoo News) "My concern is about the American people losing faith in government," Biden said . "We have to avoid that possibility at all costs." He’s still saying the same thing today. “If you can’t get a consensus, guess what?” Biden fumed last week . “Power flows to the president. An abuse of power takes place. … We’ve got to put the guardrails back up. … The idea that we’re going to come along and do the same thing [Trump] did? Not on my watch! We just fight it out, man. … That’s not who we are. That’s not America.” Democrats aren’t wrong when they say Republicans started this fight. But in figuring out how to respond in 2020, they may have decide which is riskier: a president who spins his or her wheels trying to work with Senate Republicans — or one who veers off into uncharted territory, leaving Congress behind. Read more from Yahoo News: Former top U.S. diplomat deplores policy toward Iran 'untethered to any coherent strategy' Pentagon secretly struck back against Iranian cyberspies targeting U.S. ships Trump admits his Cabinet had 'some clinkers' For Dems, there's no chickening out at Clyburn's fish fry Chore wars: Are men doing enough housework? PHOTOS: They fled Venezuela's crisis by boat — then vanished
16 Ways for Women To Keep Their Money Safe, According to Experts Women face unique money challenges: longevity, career interruption and wage inequality, just to name a few. Not only that, but women can face bigger challenges involving money like divorce and financial abuse, which not only weigh on you financially but emotionally as well. That’s part of why it’s important for women to understand these challenges and how to keep their money safe and their finances in good working order. Gone are the days when mothers would admonish their soon-to-be-married daughters on how to store money without a bank and how they should store a little cash on hand that only they knew about. But the need for women to have financial independence hasn’t changed — in fact, it’s more important than ever. GOBankingRates asked experts for their top tips for women on how to protect your money ifyou’re seeking financial security. “Analyzing where your money goes every month is a great place to start,” said Nancy Doyle, CFA and author of “Manage Your Financial Life: A Thoughtful Organized Approach for Women.” “Add up your essential living expenses — rent or mortgage, insurance, utilities, groceries. You should establish an emergency fund equivalent to six months of your essential expenses…If you have not yet established an emergency fund, direct your [bank] to transfer money automatically every pay period into [one].” To sum it up, you want to know what you’re doing with your money if you want to have it under control. Be Better:96% of Americans Are Missing Out On Savings Using This Trick It’s important to pay attention to how to protect your money in light of all the other obligations you have. “Women tend to always put their kids, their family, their friends and others before themselves. [When it] comes to money it’s especially important for women to pay themselves first,” said Nicole N. Middendorf, CDFA and CEO of Prosperwell Financial. “We as women make less money, we also live longer, but what we have going for us is we are better investors. So we need to max out our 401(k) plans, max out our Roth IRAs and make sure that we have a great allocation with our investments and a great financial plan. We need to give our kids allowances and inspire our children to be independent with their money. One, it will save us money, but, two, it’ll help our kids be even more successful in their future.” No matter how much money you have, it’s important to not only save it but grow it, so you can set yourself up for a better future. Make your money work for you instead of just trying to earn more by working more. While a traditional savings account won’t pay you a high interest rate, certificates of deposit are a nice alternative. However, a traditional CD will lock your money up for a certain amount of time or else you’ll face a penalty fee for removing it early. One way to earn interest and keep your money flexible is a no-penalty CD. For example, a 13-month no-penalty CD can help you earn an APY of at least 2.35% with some financial institutions, and there’s no penalty to withdraw your money early should you need it in the case of an emergency. You’ll get a guaranteed return, and the no-penalty CD is FDIC insured, so your money is safe and available when you need it. Some women might choose to stay home to raise children or aren’t working for another reason, but those women should still be saving and growing their money however they can. “Make sure you fund your IRA, even if you don’t have earned income. A non-working spouse can make a tax-deductible contribution of $6,000 in 2019 ($7,000 if over 50) as long as the couple files a joint return, and the working spouse’s income covers both contributions,” said Bobbi Rebell, CFP, author of “How to Be a Financial Grownup” and host of the “Financial Grownup” podcast. “There are some nuances, so check the IRS website to confirm you are eligible.” Women and Finance:How We’re Fighting the Money Myths About Us Sharing a home with someone is a major step. It’s important to be involved in the process and know what could happen should your situation change in the future. “Make sure your home is titled correctly to protect your interests, because it can make a big difference if there is a change in life circumstance, like becoming a widow,” said Rebell. “Many women don’t realize a home could simply be put in their husband’s name as the sole owner. Better options include Joint Tenancy with the right of survivorship, which means if one spouse passes away, their share goes to the surviving spouse. Another option is Tenancy in Common, which means the deceased spouse’s share goes to the person(s) named in the will, or if there is no will, by state law. This is something that might be used in a second marriage so that the share of the property goes to one’s children from a previous marriage. It can be relatively easy to change the title on a property, but there may be specific language needed and tax implications, so you should enlist a professional.” “A separation of marriage is also a separation of finances. For women going through a divorce, it’s imperative to protect your financial health,” said Nancy Fitzgerald, CEO of iLendingDIRECT. “As long as you and your ex-spouse are both on your major investments, like your home mortgage or auto loans, you’re both responsible for those payments. If your former partner misses a payment or defaults on the loan, your credit score can take a massive hit, and you can be left on the hook for those debts. In order to prevent this, you’ll need to refinance these loans in order to remove the other person and divide your assets. The silver lining? Refinancing also comes with the opportunity to get a better interest rate and monthly payment, so you might be able to save significant money during the process to put toward savings or even your divorce legal fees.” You shouldn’t be taking a passive role in how and where your personal or family’s money is invested, said Michele Lee Fine, RICP, president and founder of Cornerstone Wealth Advisory, LLC. “Ask questions, even if it’s ‘not your thing’ … and if you don’t know what questions to ask, educate yourself enough to be informed to know what to ask. You should understand, be comfortable and confident with the short-term and long-term strategy of how your money is invested. If it isn’t clear, continue to ask for clarification. Is the current positioning or portfolio aligned with your specific goals, concerns and objectives? Oftentimes it’s not, and there will be an inevitable failure in that handling of money.” It’s especially important for women to be involved in their finances should they find themselves in a financially abusive relationship. The abuse can occur in subtle or obvious ways, but the more you know and are in control of your money, the easier it will be to remove yourself from this situation. “It’s important to have a system that keeps you organized,” added Fine. “Whether [or not] you are the primary one in your home that handles the finances, you must take an active role in having a secure system that will keep track of and organize all of your important documents for future reference such as copies of tax returns, passports, birth certificates, Wills, Trusts, business agreements, title/deeds to homes, etc. A good financial advisor or planner can help you organize all of this and establish a digital, secure system for you to be aware of everything you have for a best-case or worst-case scenario.” Part of getting organized can involve making sure your savings are making you money and not just sitting there. By using ano-penalty CD, you can grow your money without risking fees if you need that money sooner than you planned. While today’s financial environment can be uncertain at times, you can stay organized and on top of your money by taking advantage of a guaranteed rate that keeps your money flexible. Women who stayed home to raise children or who earned significantly less than their husbands may be entitled to a Social Security benefit equal to half of their husband’s benefit. Depending on the situation, this can be significantly higher than the benefit they would be entitled to based on their own earnings record. This is true for women who are married or divorced, although it depends on various factors. Widows may be entitled to their late husband’s entire benefit. “A hidden benefit for non-working divorced spouses that most are unaware of is that they may be entitled to a spousal Social Security benefit in the future,” said Fine. “A divorced spouse who is at least 62 years old and was previously married for at least 10 years may receive Social Security retirement or disability benefits on their ex-spouse’s income record as long as they’re currently unmarried. The value of the benefit for a divorced spouse is equal to one-half of their ex-spouse’s full retirement amount (or disability benefit) if you start receiving benefits at your full retirement age. You may also be entitled to a benefit even if your ex-spouse is still working or a survivor benefit if they’ve died.” If your marital situation changes, pay attention to your insurance policies. “After a divorce, one of the first things you should take care of is updating your insurance policies,” said Jacob Dayan, CEO of Community Tax. “This includes life, auto, home and any other coverages you may have. When it comes to auto or home policies, make sure that you are not paying higher premiums that you no longer own or that your spouse may have received in the divorce.” Make sure your beneficiaries are up to date as well. You probably don’t want your life insurance being paid out to your ex-husband instead of your children. “Women make 18% less than men. That means a woman has $82 to save or spend, and the guy next to her has $100 to do the same,” said Debra Brennan Tagg, CFP and president of Brennan Financial Services. “One way to [close that gap] is to ask for more money.” To do this, Tagg listed these five steps she recommends you do to become a better negotiator: 1. Know your facts:Research what others in your company are making and what others outside of your company in your same position are making. Ask when decisions about raises are made about budgeting and salaries, and schedule a meeting with your supervisor before those decisions are made. 2. Be clear about what you are asking for:If making more money is important to you, then make that very clear to your employer. If what you really need is flexibility in your schedule, ask for it. Not everybody in the world wants the highest salary or the biggest title, but they do want to achieve their life goals. 3. Stay in control of the message:There is a strategy in negotiation called anchoring. When you throw an anchor, the ship will move around some but will hover right over the anchor. Anchor the conversation in a bigger number/ask than you are getting or would expect. It’s entirely possible — and maybe even right — for you to be turned down. Which leads to No. 4. 4. No is the beginning of yes:Don’t let a “no” in the first five minutes of a meeting stop you. Ask why the answer was no. Think deeply about how the answers affect your request, and use that to continue the negotiation. Believe in yes and then work to a version of yes that you can accept. 5. Commit to your offer:This aligns with how to find a “version of yes you can accept.” If you go into the negotiation thinking, “this company needs to recognize how useful I am by paying me more, or I’m going to leave,” then you need to be ready to leave. There are different levels of financial independence, and it’s important to understand which level you are at, and where you would like to be. Byron Tully, author of “Old Money, New Woman: How To Manage Your Money and Your Life” offers these definitions: • Minimum Financial Independence:You have enough money to pay your bills most of the time, but if you lose your job, you’re in trouble. • Intermediate Financial Independence:You could lose your job and be okay for three to six months, maybe a year, but not much longer. • Maximum Financial Independence:You are able to live off your investments and cash on hand for a lifetime without worry and without changing your lifestyle. Your job, if you have one, is something you love doing, regardless of the money it generates. “Once [you] understand these three levels of financial independence, [you] can assess where [you] are and what [you] need to do to get to the next level,” said Tully. One way to grow your financial independence is to increase your savings. If you want to be more prepared should an emergency like a job loss hit you or if you’re planning a vacation, a wedding or another big life moment, consider a no-penalty CD. You’ll be able to take advantage of a high interest rate while keeping your money easy to access without a fee if you withdraw it before the CD term is up. Important:40 Things Women Over 40 Need To Know About Money “If you’re going through a divorce, take care of the children first, then get the money settled,” said Tully. “Do not make investment decisions immediately. Sit on the cash. Sit on your assets. Let the emotions pass (as much as they can), and then, 6 months later, look at your financial situation, goals, and investment strategy through more objective eyes. “The same thing goes for women who are widowed. Take care of yourself. Honor your partner’s wishes as fully as you can. Then honor yourself: take the time you need in order to grieve, get some perspective, and then look at how your money fits into your new life. “In both cases, being widowed or divorced, put the brakes on the (hopefully) well-intentioned agendas of children, investment advisors, and attorneys: just take care of what needs to be taken care of, in a timely fashion, and no more. Take it one step at a time, one day at a time, even one hour at a time, during this difficult period. “Be strong enough to say, ‘I’m not dealing with that right now. I’ll look at it 3 months from now.’ Doing this will make the loss manageable, the pain more bearable, and the future more acceptable.” If you want to know where you stand now to plan for where you want to be in the future, you’ve simply got to go over everything. “Everyone should take a comprehensive view of their financial lives,” said Doyle. “In addition to your emergency fund, look at all financial accounts to determine how liquid, or easily accessible they are. Money invested for retirement or the children’s education may hold liquid assets, but the accounts themselves are not liquid. Whether you’re using your company’s 401(k) or a no-penalty CD that provides you with more financial freedom, you want to know where you and your family are putting your money and if you can or should access it when needed. And you’ll want to know how easily you can access those funds. With a no-penalty CD, you’ll take away the stress of fees if you aren’t able to keep your money in for the full term, but you’ll still be making the wise decision to earn interest on that money. And then you’ll also want to examine where your spending money is going. “Take a close look at your non-essential expenses or ‘wants.’ These are often tied to lifestyle choices. Reducing non-essential outlays will free up cash you can use to pay down debt, shore up emergency fund reserves and save for retirement.” Patti B. Black, a CFP at Bridgeworth, a wealth management firm in Alabama, offers these tips for setting goals: • Articulate the “why” behind saving money. Don’t just say, “I’m saving for college.” Instead, say, “I’m saving for college because I don’t want my kids to have burdensome student loan debt.” • Find a picture of something to represent your goal and put it around your credit card/debit card so you see it each time you make a purchase. If you’re doing online shopping, you could make that same picture your screen saver. • Share your goal with someone else to help you stay accountable. • Schedule time on your calendar to monitor your progress on your financial goals. When you make progress, celebrate with a healthy treat — not buying something! “There may never be the ‘right’ time to start owning your financial health, opening an investment account, or implementing a budget,” said Brittan Leiser, founder of AdvisHer: The Financial Resource for the Modern Woman. “However, the key to becoming a successful investor is to simply get started with what you have, where you are. Time is such a key ingredient when it comes to investing and building wealth — don’t miss out on key earning windows just because you were busy waiting for the ‘right’ time.” Keep reading to look at theincredible ways women’s finances have changed over the last 100 years. More on Saving Money • Money-Proof Your Relationship With These Easy Ways To Save as a Couple • 58% of Americans Have Less Than $1,000 in Savings • Why I’m Not Worried About My Skimpy Retirement Savings This article originally appeared onGOBankingRates.com:16 Ways for Women To Keep Their Money Safe, According to Experts
Glastonbury weather: This year's festival could be hottest ever Glastonbury is back in business this year and the full lineup has been announced, so the biggest question remaining is whether the weather will be any good. With Stormzy , The Cure and The Killers all set to headline the Pyramid stage, festival-goers are keen to know if the British summertime will deliver a beautiful setting for performances from the worlds best live acts... or if theyll need to pack a raft and some wellington boots instead of sunglasses and shorts. The Met Office's Aidan McGivern previously said that this could be the hottest Glastonbury on record, with hot and humid air arriving from Europe predicted to push temperatures past the festivals previous record of 31.2°C in 2017. Temperatures are now expected to hit 24°C for those arriving early today (Wednesday 26 June), and 25°C on Thursday with sunny skies. Temperatures will peak at 27°C on Friday 28 June, before a slightly cooler weekend as temperatures drop to 25°C on Saturday and 19°C on Sunday, still with clear skies throughout. Make sure you pack your wellies, however, as the site is reportedly muddy after rainfall earlier this week. And definitely take plenty of sunscreen, drink lots of water, and wear protective headgear to reduce your risk of heatstroke. View comments
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How Mitch McConnell and Elaine Chao turned a Kentucky town into their personal swamp Then-Senate Minority Leader Mitch McConnell, R-Ky., joined by his wife, former Labor Secretary Elaine Chao, celebrates with his supporters at an election night party in Louisville, Ky., Tuesday, Nov. 4, 2014. (Photo: J. Scott Applewhite/AP) WASHINGTON The small western Kentucky town of Paducah loves Mitch McConnell. Even if progressives loathe McConnell for his ruthless effectiveness as master of the Senate, and even if plenty of his fellow Kentuckians disapprove of his performance, he can always find a warm embrace here on the banks of the Ohio River. McConnell is not a native son of Paducah; he was born in Alabama and moved as a child to Louisville, the states biggest city. But he might as well call it home, for while Louisville is one of Kentuckys few Democratic redoubts, Paducah is as red as blood. When McConnell was running for reelection in 2014, Paducah voted for him over his Democratic opponent, Alison Lundergan Grimes, at twice the rate of the rest of the state. Analysis of campaign contributions shows that Paducah gave McConnell a total of $331,029.50 in 2013 and 2014. For a town whose population is only about 25,000 people, that averages to more than $13 for every man, woman and child. By contrast, Louisville gave McConnell $4.64 per citizen. Lexington gave $1.62. Why does Paducah love McConnell so much? Probably because for years, he and his wife, Elaine Chao currently the transportation secretary and previously, under George W. Bush, the secretary of labor have carefully cultivated and courted Paducahs interests in ways that critics charge improperly mix their responsibilities, so that the politics of one can appear indistinguishable from the policy of another. Over the past decade and a half, Paducah has reaped $509 million in funds from federal departments Chao has been in charge of, according to Restore Public Trust, a progressive group that has tracked the Chao-McConnell relationship. Outwardly, that funding appears to violate no laws, but critics say it is improper all the same. The facts are clear Secretary Elaine Chao helped her husband politically through Department of Transportation grants, through Department of Labor grants, and she used her position to campaign for him, Lizzy Price, a spokesperson for Restore Public Trust, told Yahoo News. Taxpayers dont pay Secretary Chaos salary so that she can boost her husbands political career. Chaos actions are as swampy as Trumps administration gets and merit a thorough investigation. Story continues Price and others say that Paducah is a perfect case study of how Washingtons most powerful couple have tended to the very kind of swamp Trump promised to drain. They have done so strategically, consistently and with little notice, according to those making such accusations. And they have done so for years. Paducah is hardly the only example. Politico recently reported that Chao fast-tracked projects favored by McConnell in Owensboro, another Kentucky town on the Ohio River. There, as in Paducah, Chao pushed for projects that McConnell supported and that appeared to benefit him politically. A spokesperson for the Department of Transportation, where Chao has served as the secretary since the beginning of the Trump administration and, until recently , without the kind of controversy that has befallen some of her colleagues took umbrage at suggestions that she was susceptible to such influence. He said that stories like this one are political hit jobs filled with innuendoes being pushed by progressive groups funded by Democrats eager to find any and every way to hobble the Trump administration. The spokesman added that no state or senator receives special treatment, adding that career staff evaluate grant proposals in a way that insulates them from influence. Elaine Chao is sworn in as transportation secretary by Vice President Mike Pence, right, as her father, James Chao, second from left, and her husband, Senate Majority Leader Mitch McConnell, look on in Washington, D.C., on Jan. 31, 2017. (Photo: Nicholas Kamm/AFP/Getty Images) McConnells staffers and supporters say it is absurd for him to face criticism for doing what a politician is supposed to do: agitate with the federal government for what his constituents want or need. They say that he has never exercised improper influence with Chao. In response to questions from Yahoo News, McConnells office sent a multipage document celebrating the many projects he has supported in Paducah, including several that Yahoo News had not asked about, making clear that, in the veteran senators view, the work that detractors are questioning should, in fact, be praised. Kentucky continues to punch above its weight in Washington, and I am proud to be a strong voice for my constituents in the Senate, McConnell told Yahoo News in a statement, reiterating what he has said earlier in response to similar allegations . As the only one of the four congressional leaders who isnt from the coastal states of New York or California, I view it as my job to look out for middle America and of course Kentucky in particular. That means I use my position as Majority Leader to advance Kentuckys priorities. Critics say, however, that McConnell has exerted influence all the same, albeit in ways that are difficult to track. Briefed on the issue, former George W. Bush ethics lawyer Richard Painter said that Chao could have a Kellyanne Conway problem, referring to the senior Trump official who was recently criticized for allegedly violating the Hatch Act , which prohibits federal employees from using their office to promote partisan goals. Trump has defended those alleged violations, which include sharply worded attacks on Democrats, as nothing but Conways exercise of her First Amendment free-speech rights. The House of Representatives should investigate, see what they can find about Chaos work intersecting with McConnells political prospects, said Painter, a vociferous opponent of the Trump administration. He added that Chao was a lot shrewder than Conway and a lot more subtle. He also acknowledged that there were ways for Chao to support her husbands political career without violating the Hatch Act. Indeed, the couples supporters say she has done only that, and nothing more. Chao has been a quietly influential Republican operative for years, showing herself a no-less-shrewd politician than the man she married in 1993. A 2014 profile in the New York Times called her an unapologetically ambitious operator with an expansive network, a short fuse, and a seemingly inexhaustible drive to get to the top and stay there. The same profile noted that Chao can recite the names of people who have donated to her husband and how much they gave. Chaos interest in Paducah appears to have begun in 2006, about two years before McConnell would have had to defend his Senate seat. That September, she went to Paducah to tout the Department of Labors compensation payments to workers at the Paducah Gaseous Diffusion Plant, which enriched uranium during the Cold War. Its been a real challenge, Chao said, noting that she inherited a backlog of nearly 20,000 cases of worker illness from the Department of Energy. She noted that her department had paid out $323 million to 3,000 people who had worked at the gaseous plant or to their surviving family members. Compensating workers who handled radioactive materials for the sake of national security is laudable, but the effort also appeared to disproportionately benefit those in Paducah. A 2009 investigation by McClatchy-Tribune found that Chaos department paid $500 million to former Paducah Gaseous Diffusion Plant employees, a full eighth of the total funds spent by the Department of Labor at that time to compensate workers who may have been affected, although the location was one of 20 major sites covered by the program . Some of those other sites such as Hanford in Washington state and Rocky Flats in Colorado are much bigger than the Paducah Gaseous Diffusion Plant. A sign warns visitors to keep away from a pile of radioactive debris stored on the grounds of the uranium-enrichment Paducah Gaseous Diffusion Plant on Aug. 12, 1999, near Paducah, Ky. (Photo: Billy Suratt via Getty Images) A spokesperson for the Department of Labor said that the payments to Paducah were comparable to those made to former workers at another gaseous diffusion plant, this one in Portsmouth, Ohio. The payments were lower than those made to workers at the only other gaseous diffusion plant in the United States, at the Oak Ridge facility in Tennessee. The spokespersons statement said, in part, Awards are not made to facilities, but rather benefits are paid to current and former nuclear weapons workers whose illnesses are the result of working in the nuclear weapons industry. McConnells office, for its part, celebrated his role in environmental cleanup and health initiatives at the former nuclear plant, noting that those efforts had netted Paducah a total of $2 billion while creating 1,000 jobs. In the fall of 2008, Chaos time in the Bush administration was coming to an end, while McConnell faced a determined opponent in Bruce Lunsford, a wealthy investor from Louisville. Though hed won four previous elections to the Senate, McConnell couldnt seem to shake Lunsford. Thats when Chao stepped in to help. Chao arrived at the offices of the Paducah Sun, the towns only newspaper, in October, less than a month before the election. There, she laid out a compelling case for the senators re-election, the Sun wrote in its Oct. 12 editorial. The editorial acknowledged that her job in Paducah was campaigning for her husband. In campaigning for McConnell, Chao could have been in violation of the Hatch Act, according to Painter, the former White House ethics lawyer. Passed in 1939, the Hatch Act curbs federal employees political activity while attempting not to infringe on their First Amendment rights. In this case, a violation would have occurred if Chao presented herself as the federal labor secretary, Painter explained. He said there is strong reason to make the inference that she did so, since the editorial did praise Chao for working to keep America's workforce competitive in a rapidly evolving global economy. At the same time, it is impossible to say whether that apparent reference was made at Chaos explicit urging. She cannot be blamed, after all, for the newspapers failure to explain to its readers the division between Chaos duties as a federal employee and her personal political interests. A spokesperson for the department referred the matter to the Department of Transportation. The secretary can and does appear at events with or for her husband in her personal capacity, and had a drop-by with the Paducah Sun, as she has done in the past, a Transportation Department spokesperson said. Editors at the Sun did not respond to repeated requests for comment. At the very least, the editorial was evidence of how easy it was to conflate the work of the duo. It said, for example, that McConnell has helped secure more than $1 billion for cleanup at the Gaseous Diffusion Plant. About half of that funding had come from his wifes department. (The rest came from other federal sources.) The editorial also praised McConnell for having secured hundreds of millions in federal grants to Kentuckys universities. Some of those grants came from the Labor Department. In 2005, Chaos department gave $3 million for technical and safety mining work in Kentucky. The next year, there was a Department of Labor grant of $2.48 million to the Kentucky Community and Technical College System for state-of-the-art training in automotive manufacturing, according to a transcript of Chaos remarks to the Paducah Chamber of Commerce. In that same speech, she announced another $3 million would be devoted to educational opportunities for miners in the Pennyrile Area Development District, about 80 miles east of Paducah. The largesse to western Kentuckys educational sector continued. In 2007, the Department of Labor gave $130,000 to West Kentucky Community and Technical College, which is in Paducah, for influenza pandemic training; two years later, the department gave another $1.93 million to West Kentucky, as part of a competitive grant to which 274 institutions applied and which 68 institutions won. From left, Rep. Ed Whitfield, R-Ky., West Kentucky Workforce Investment Board director Sheila Clark, West Kentucky Community and Technical College president Barbara Veazey, and Gov. Steve Beshear, hold an oversize check for $4,598,681 from the Department of Labor to the WKWIB in 2015 at the WKCTC Emerging Technology Building in Paducah, Ky. The federal grant money was targeted to assist workers and families affected by the closing of the Paducah Gaseous Diffusion Plant. (Photo: John Paul Henry/The Paducah Sun via AP) McConnells staff did not answer questions about how the educational funding had come about. But in his initial response to Yahoo News, McConnell broadly addressed his relationship with Chao, arguing that it was no different than his relationship with Cabinet members who are not his wife. I regularly advocated for Kentuckians with members of the Cabinet and agencies of the federal government, he said. Kentucky continues to punch above its weight in Washington, and I am proud to be a strong voice for my constituents in the Senate. McConnell ultimately defeated his Democratic rival Lunsford, but not by much. Kentucky Republican McConnell Survives Political Battle of His Career, said a headline in U.S News & World Report. The accompanying article said that McConnell boasted of the hundreds of millions in federal dollars hed brought home to Kentucky and that he campaigned side by side with his wife, Labor Secretary Elaine Chao, whom Lunsford criticized for leaving her post in Washington to campaign in Kentucky as jobless numbers were rising during the unfolding subprime mortgage crisis. Chao would remain out of public-sector work during the eight years of President Barack Obamas administration, while McConnell, as Senate minority leader, set out to make Obama, in his own words , a one-term president. Although he failed in that regard, he helped Republicans regain the Senate majority in 2014. Two years later, he prevented Obama from filling the Supreme Court seat of Antonin Scalia, exciting conservative hopes that a Republican president would fill the seat with a right-leaning justice. Three weeks after his unlikely victory, President-elect Trump announced that Chao would serve as his transportation secretary . When questions were raised about whether it was proper for McConnell, as the chambers leader, to preside over his own wifes confirmation hearings, McConnell stood firm. Let me be quite clear, he said . I will not be recusing myself. As transportation secretary, Chao is once again in position to help McConnell, who will face a Democratic challenge in 2020 that is expected to be the most ferocious of his career. And once again, Paducah appears to be a focus of Chaos efforts. In 2017, National Maintenance and Repair of Kentucky received $377,000 from Chaos new department to boost Paducahs dry dock capabilities, according to a department briefing the following year. It was the first grant to the dry dock in a decade. That same year, Trump moved to cut the Essential Air Service program, a subsidy for small, rural airports. Cuts to the program would have dealt a serious blow to Paducahs own Barkley Regional Airport, which has two flights per day. Chao opposed the cuts and was ultimately successful in preventing the Essential Air Service program from being eliminated. Although that victory would presumably have been beneficial to 159 regional airports, she made the announcement at a Washington meeting with members of the Paducah Chamber of Commerce. The following year, SkyWest announced a new Chicago-Paducah route, a development that the Paducah Sun said would not have been possible without the help and cooperation of Chao. She was similarly helpful in bolstering Paducahs maritime industry, establishing a Maritime Administration, or MARAD, gateway office in the town, which is on a stretch of the Ohio River busy with industry. According to a local news report , the new MARAD center in Paducah would provide assistance to public ports by helping with congestion relief and improving freight and passenger movement. In her announcement of the new office during a department briefing, Chao reminded that this is the second government office I have established in Paducah, a reference to a Department of Labor office she had opened some 12 years before to handle compensation claims from the Gaseous Diffusion Plant. A report in Politico noted that Paducah was an unusual site for a MARAD office because nine other such offices are in major cities such as New York, Chicago, and Miami. A spokesperson for the Transportation Department said the reporting distorted the matter, because the office was small and, by his estimation, provided employment to only one person. At her confirmation hearing on Jan. 11, 2017, Secretary of Transportation nominee Chao gives her husband, Senate Majority Leader Mitch McConnell, a kiss after introducing her. (Photo: Bill Clark/CQ Roll Call via Getty Images) That same month, Chaos department gave out $4.9 million in maritime highway projects. And once again, Paducah was a winner one of six receiving $251,927 for the Paducah-McCracken Riverport Container-on-Barge Service. A Department of Transportation spokesperson vigorously disputed suggestions of improper coordination. But documents obtained by American Oversight, a progressive watchdog group, through a Freedom of Information Law request, show that Andrew M. Swafford, a director of projects for McConnells office, repeatedly emailed Department of Transportation officials about a grant request. Other staffers in McConnells office made similarly insistent requests. The emails could be seen as a determined campaign undertaken by capable staffers, of the kind that any senator can and perhaps should pursue for the sake of his or her constituents. But thats not how Chao and McConnells detractors see things. The secretary of transportation works for the whole country, not just one state, American Oversights executive director, Austin Evers, told Yahoo News, but the documents we uncovered make it clear that Secretary Chao gave special treatment to Kentucky interests and requests from Senator McConnell's office. Given what we've seen so far, the burden is on the Department of Transportation to show that its spending in Kentucky was driven by the public interest rather than politics or personal connections. A spokesperson for the Transportation Department strongly disputed these suggestions of favoritism. He pointed to a Daily Beast article that described Restore Public Trust, which has been investigating the particulars of the Chao-McConnell relationship, as a group designed to make life miserable for Trump Cabinet officials. McConnells office proudly listed the millions Paducah has received in federal infrastructure funds, in particular relating to the citys waterways and riverfront. Paducah, Kentucky, is the inland waterways capital of the country, and western Kentucky is also home to major civil works projects like Olmsted Locks and Dam and Kentucky Lock. The history of Paducah is a history of life on the river, McConnell told Yahoo News in the statement sent by his press secretary. McConnells supporters say he should be commended, not criticized, for funneling federal funds to Kentucky. McConnells former chief of staff, Janet Mullins Grissom, tweeted the Politico article that called attention to potentially improper coordination between McConnell and Chao, dismissing the assertion that the couple had done anything wrong. Try as you might, she wrote , youll have to look elsewhere for scandal. _____ Read more from Yahoo News: Former top U.S. diplomat deplores policy toward Iran 'untethered to any coherent strategy' Pentagon secretly struck back against Iranian cyberspies targeting U.S. ships Trump admits his Cabinet had 'some clinkers' For Dems, there's no chickening out at Clyburn's fish fry Chore wars: Are men doing enough housework? PHOTOS: They fled Venezuela's crisis by boat then vanished
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The world is spending more propping up coal—not less The signs of the climate crisis are visible all around us. Just not always in governments’ account books. Countries of the G20 , a club of the world’s largest economies, are giving the coal industry three times as much money in subsidies as they did a few years ago, according to a new report by the Overseas Development Institute (ODI). The sum spent on coal-fired power increased from $17 billion to $47 billion between 2013 and 2017. The Ethiopian Airlines 737 Max crash could warrant historic punitive damages against Boeing The increase matters for two reasons. Together, the G20 bloc accounts for nearly 80% of global emissions, and its energy choices affect the global race to zero emissions . Worse still, the member countries increased funding for the dirtiest fossil fuel despite committing in 2009 to phase out such subsidies. Subsidies are a necessary evil . Governments wield them when they need to rapidly reach short-term goals. Poor countries often subsidize fossil fuels to provide affordable electricity to citizens. Rich countries have used subsidies to drive down the cost of desirable technologies, such as solar and wind power. White supremacists and anti-fascists head to DC ahead of Trump’s July 4 celebration Coal doesn’t need any more subsidies, though. Renewables are now so cheap in most parts of the world that they are often the energy source of choice, especially for citizens getting access to electricity for the very first time. And yet these subsidies persist—and even continue to grow. Why? In India, China, and Indonesia, coal subsidies go towards propping up state-owned enterprises, which can provide decent jobs in large numbers. In India, they also support the banking sector, which is overburdened by poorly-performing coal assets. In rich countries like the US, Europe, and South Korea, some of this money is spent on energy resilience, which requires paying high prices to keep coal available for high-energy demand days. Story continues It’s going to be hard to disentangle these complex economic motivations from their historical reliance on coal subsidies. But creativity can help. Governments can start supporting coal-mining communities that will struggle as the world abandons the dirty fuel. Money could also be reallocated to low-carbon technologies, such as carbon capture and storage . It’s a technology scientists believe will be necessary to cut emissions from existing coal power stations—set to run for decades still—or for cement plants that will emit carbon dioxide even after the elimination of fossil fuels. There is some hope. In the same stretch that subsidies for coal-fired power increased, subsidies for coal mining decreased from $22 billion to $10 billion. That’s likely because countries are spending less developing new mines. And not all countries are beefing up coal power subsidies: Canada, France, and the UK have all cut support for the plants in recent years, while spending more money on renewables. Sign up for the Quartz Daily Brief , our free daily newsletter with the world’s most important and interesting news. More stories from Quartz: Five reasons English speakers struggle to learn other languages Ten days of utter silence pulled me back from the brink of a mental breakdown
Are Insiders Buying PITECO S.p.A. (BIT:PITE) Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares inPITECO S.p.A.(BIT:PITE). It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market. We don't think shareholders should simply follow insider transactions. 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.' Check out our latest analysis for PITECO Over the last year, we can see that the biggest insider purchase was by Zanella Francesca for €62k worth of shares, at about €5.45 per share. That means that even when the share price was higher than €5.10 (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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Happily, we note that in the last year insiders bought 73294 shares for a total of €338k. While PITECO insiders bought shares last year, they didn't sell. Their average price was about €4.61. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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 plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying. Over the last three months, we've seen significant insider buying at PITECO. We can see that Zanella Francesca paid €79k for shares in the company. No-one sold. That shows some optimism about the company's future. Many investors like to check how much of a company is owned by 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 PITECO insiders own 17% of the company, worth about €16m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of PITECO we think they are probably pretty confident of a bright future. Of course,the future is what matters most. So if you are interested in PITECO, you should check out thisfreereport on analyst forecasts for the company. But note:PITECO 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.
PJSC PhosAgro (MCX:PHOR): Time For A Financial Health Check Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as PJSC PhosAgro (MCX:PHOR), with a market cap of RUруб322b, often get neglected by retail investors. However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. This article will examine PHOR’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto PHOR here. See our latest analysis for PJSC PhosAgro PHOR's debt levels surged from RUруб124b to RUруб142b over the last 12 months – this includes long-term debt. With this increase in debt, the current cash and short-term investment levels stands at RUруб24b to keep the business going. On top of this, PHOR has produced cash from operations of RUруб77b during the same period of time, resulting in an operating cash to total debt ratio of 54%, meaning that PHOR’s debt is appropriately covered by operating cash. With current liabilities at RUруб51b, it seems that the business has been able to meet these commitments with a current assets level of RUруб87b, leading to a 1.69x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. For Chemicals companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment. PHOR is a highly-leveraged company with debt exceeding equity by over 100%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. We can check to see whether PHOR is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In PHOR's, case, the ratio of 15.24x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving PHOR ample headroom to grow its debt facilities. Although PHOR’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. Since there is also no concerns around PHOR's liquidity needs, this may be its optimal capital structure for the time being. This is only a rough assessment of financial health, and I'm sure PHOR has company-specific issues impacting its capital structure decisions. I recommend you continue to research PJSC PhosAgro to get a more holistic view of the mid-cap by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for PHOR’s future growth? Take a look at ourfree research report of analyst consensusfor PHOR’s outlook. 2. Valuation: What is PHOR 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 PHOR 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.
GLOBAL MARKETS-Fed's Powell resists pressure for hefty rate cut, sends global stocks down * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh * Fed's Powell, Bullard temper July rate cut expectations * European stocks fall for fourth straight session * Gold slips more than 1% By Virginia Furness LONDON, June 26 (Reuters) - Global stocks fell while the dollar rose on Wednesday as comments from U.S. Federal Reserve dampened excitement about an aggressive rate cut as early as July from the world's most important central bank. Fed Chairman Jerome Powell and St. Louis Federal Reserve Bank President James Bullard on Tuesday pushed back on market expectations and presidential pressure for a significant U.S. interest rate cut of half a percentage point as soon as its next meeting. Powell said the central bank is "insulated from short-term political pressures". But he said he and his colleagues are currently grappling with whether uncertainties around U.S. tariffs, Washington's conflict with trading partners and tame inflation require a rate cut. The pan-European STOXX 600 index fell 0.3% to its lowest level in a week, while Germany's Dax was down 0.15%. The MSCI world equity index, which tracks shares in 47 countries, was down 0.16%, while U.S. futures indicated a flat to lower open. The dollar rebounded and gold prices retreated after Powell's comments which pulled the dollar up from three-month lows against a basket of other currencies in the previous session at 95.843. It was up 0.1% at 96.273. Equity markets have rallied this month in anticipation that Fed policymakers would cut rates, but Powell's remarks cast doubt on those expectations when he referred to the Fed's independence. According to latest data from CME Group's FedWatch program, federal funds futures implied that traders now see a 27% chance of the Fed lowering rates by half a percentage point in July, compared to 42% on Monday. However, not all see the comments as evidence of a policy u-turn. Richard Dias, multi asset strategist at Pictet Asset Management, said the Fed had effectively backed itself into a corner, making a cut in July or September highly likely. "They are in a weird dichotomy, so many cuts are priced in and the market has rallied on this news and the bond market has rallied so if they don't deliver what they have telegraphed, their credibility will be impinged," he said, adding that he expected a cut of 25 basis points. "They would never do 50 bps, we are not in a recession," he said. A modest sell-off in U.S. Treasuries, which often sets the tone for other major bond markets, failed to have much of a spill over into the euro zone. Ten-year Treasuries fell to 1.98% on Tuesday, before rising to above 2% on Wednesday. European bond yields remained pinned to all-time lows, unmoved by the apparent shift in tone from the Fed. Germany's 10-year benchmark bond yield held around -0.32%. And with the seemingly insatiable bid for bonds continuing, Austria opened books on a 100-year bond, a tap of its existing September 2117. Market hopes are also pinned on progress in an ongoing trade dispute between the United States and China. The U.S. hopes to re-launch trade talks with Beijing after Trump and his Chinese counterpart Xi Jinping meet in Japan during the G20 summit on Saturday but Washington will not accept any conditions on tariffs, a senior administration official said on Tuesday. Pictet's Dias said he did not expect an immediate resolution. "Everyone is desperate for a deal, but why would they do it then? It is a lot more than just trade, trade is a red herring, what matters is technology and I don't know how we are going to agree on this," he said. "What incentive does Donald Trump have to do a deal now anyway, it is better to drag it out until before the election and show a big win." Gold pulled back from the almost six-year highs hit on Tuesday amid escalating tensions between the U.S. and Iran, slipping more than 1% on Wednesday. The New Zealand dollar edged higher after the Reserve Bank of New Zealand (RBNZ) stood pat on monetary policy, keeping rates at a record low 1.50%. But the kiwi's gains were limited as the central bank expressed concern towards economic risks at home and abroad. "Overall, today's announcement provides a strengthened signal that another cut is coming, most likely soon, unless there is a marked improvement in the global outlook," wrote economists at HSBC. The kiwi last traded 0.2% higher at $0.6651. U.S. crude oil futures advanced roughly 2% to touch a four-week high of $59.10 per barrel after data showed a decline in U.S. crude stocks. (Reporting by Virginia Furness, editing by Deepa Babington)
Here's How We Evaluate Public Joint Stock Company Polyus's (MCX:PLZL) Dividend Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Dividend paying stocks like Public Joint Stock Company Polyus (MCX:PLZL) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Polyus is a new dividend aristocrat in the making. It sure looks interesting on these metrics - but there's always more to the story . Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Click the interactive chart for our full dividend analysis Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Polyus paid out 74% of its profit as dividends, over the trailing twelve month period. A payout ratio above 50% generally implies a business is reaching maturity, although it is still possible to reinvest in the business or increase the dividend over time. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Polyus paid out 69% of its free cash flow last year, which is acceptable, but is starting to limit the amount of earnings that can be reinvested into the business. It's positive to see that Polyus'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. Remember, you can always get a snapshot of Polyus's latest financial position,by checking our visualisation of its financial health. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. The first recorded dividend for Polyus, in the last decade, was nine years ago. It's good to see that Polyus 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 nine-year period, the first annual payment was RUруб17.79 in 2010, compared to RUруб275 last year. Dividends per share have grown at approximately 36% per year over this time. Polyus's dividend payments have fluctuated, so it hasn't grown 36% every year, but the CAGR is a useful rule of thumb for approximating the historical growth. So, its dividends have grown at a rapid rate over this time, but payments have been cut in the past. The stock may still be worth considering as part of a diversified dividend portfolio. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. It's good to see Polyus has been growing its earnings per share at 77% a year over the past 5 years. Earnings per share are sharply up, but we wonder if paying out more than half its earnings (leaving less for reinvestment) is an implicit signal that Polyus's growth will be slower in the future. 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. Polyus's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Ultimately, Polyus comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 9 analysts we track are forecasting for Polyusfor freewith publicanalyst estimates for the company. 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.
UK financial services firms have spent £4bn on Brexit preparations The London offices of major banks in Canary Wharf. Photo: Matt Dunham/ AP Photo UK financial services firms have said that they have spent almost £4bn ($5.07bn) preparing for the UK’s departure from the European Union, according to consultancy firm EY. The figure includes £1.3bn spent on relocation costs, legal advice, and contingency measures since the 2016 Brexit referendum — as well as £2.6bn in capital injected into bases outside of the UK. The £4bn figure accounts only for the spending that companies have publicly disclosed, which means that the true cost of Brexit preparations in the UK financial services sector is likely to be much higher, EY said. At 7,000, the total number of employees that firms plan to relocate remained steady in the last quarter, as did the £1tn in assets that they have said they will shift out of the UK. While EY said the last three months saw “most firms to some extent pause their Brexit planning,” it noted that some firms had “restarted” their Brexit preparations in recent weeks. It also said that it expected preparations for a no-deal “to increase markedly throughout the summer.” The proportion of firms that have said they will move either staff or some aspect of their operations from the UK to elsewhere in Europe increased marginally in the past three months, from 39% to 41%. Dublin remains the most popular post-Brexit location. Some 29 companies have said that they are either considering or have confirmed moves to the Irish capital. At 23 companies, Luxembourg has jumped to second place, while Frankfurt follows closely behind on 22. Brexit is beginning to impact the bottom lines of companies, said Omar Ali, who leads the financial services division at EY. “Capital deployed for supporting new non-UK headquarters is value which is not being returned to shareholders or reinvested in UK businesses. Over time some of this capital may flow back to the UK, but currently is a net loss for our economy,” Ali said in a statement. View comments
Birmingham 2022 Commonwealth Games to cost £778m Birmingham 2022 Commonwealth Games banner The 2022 Commonwealth Games in Birmingham is set to cost £778 million, the government has announced. Funding for the games will be split 75-25 with central government covering £594 million, while Birmingham City Council is footing the rest of the bill with £184m. The hefty budget will see the 11-day summer spectacle become the most expensive sporting event in the UK since the 2012 Summer Olympics and Paralympics in London. The Birmingham 2022 Commonwealth Games will be the biggest sporting and cultural event ever held in the city, said Minister of Sport Mims Davies. Watched by one and a half billion people worldwide, this is a massive opportunity to showcase the best that Birmingham, the West Midlands and the whole UK has to offer. The Games budget is a significant investment in Birmingham and the region that will deliver benefits to local people for years to come. At around £28m above the initial £750m estimated cost, it will still be £200m cheaper than the 2018 Gold Coast games. Team England Netball players show off their medals after the 2018 Commonwealth Games at the Parade in Birmingham. (Photo by Chris Radburn/PA Images via Getty Images) READ MORE: Semenya - IAAF requests overturning of order allowing athlete to compete without hormone suppressants READ MORE: Manchester City forward Riyad Mahrez ordered by court to pay more than £3000 to nanny In addition to the games budget, funding will also be allocated to the development of 1,400 new homes in the Perry Barr area of the region which will serve as the Athletes Village during the Games before being converted to housing. Andy Street, Mayor of the West Midlands, was optimistic about the long-term impact of hosting the games. Investment in the region is already being unlocked thanks to the Games, with improvements to public transport and the regeneration of Perry Barr well underway. Following estimates that the Gold Coast 2018 Games has delivered a £1.3 billion boost to the Queensland economy, Birmingham will be hoping for similar rewards after the event. We expect the wider benefits of hosting the Games, including the economic and tourism boost, to last long into the future. Street added. Birmingham was only awarded the games in December 2017 after original hosts Durban were stripped of their duties for failing to meet Commonwealth Games Federation criteria. Despite the truncated timescale, organisers are confident everything will be ready for the July 27 start date in 2022. Watch our videos: View comments
Polyus's (MCX:PLZL) Incredible 1130% Share Price Run Shows What Is Possible With Stocks Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Buying shares in the best businesses can build meaningful wealth for you and your family. While the best companies are hard to find, but they can generate massive returns over long periods. Don't believe it? Then look at thePublic Joint Stock Company Polyus(MCX:PLZL) share price. It's 1130% higher than it was five years ago. If that doesn't get you thinking about long term investing, we don't know what will. In more good news, the share price has risen 6.7% in thirty days. We love happy stories like this one. The company should be really proud of that performance! See our latest analysis for Polyus In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Over half a decade, Polyus managed to grow its earnings per share at 37% a year. This EPS growth is slower than the share price growth of 65% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here.. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Polyus's TSR for the last 5 years was 1343%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! We're pleased to report that Polyus shareholders have received a total shareholder return of 62% over one year. That's including the dividend. Having said that, the five-year TSR of 71% a year, is even better. Keeping this in mind, a solid next step might be to take a look at Polyus's dividend track record. Thisfreeinteractive graphis a great place to start. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on RU 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.
Mt Gox Founder Hit With Lawsuit Over Alleged Fraudulent Misrepresentation UPDATE: This article has been updated with comment from McCaleb Jed McCaleb, the founder of Mt. Gox, faces a lawsuit over his handling of the now-defunct bitcoin exchange. The two plaintiffs, former Mt. Gox traders Joseph Jones and Peter Steinmetz, filed a complaint with a court in California on May 19, accusing McCaleb of “fraudulent” and “negligent” misrepresentation of the exchange, which partially led to their loss of bitcoin when Mt. Gox suffered a major hack in 2014. Related:Six Arrested Over Cloned Crypto Exchange That Stole €24 Million Once the world’s largest bitcoin exchange by trading volume,Mt. Goxwas breached in February 2014, which resulted in an initial loss of 850,000 bitcoin, worth over $400 million at the time, some of which was later found. According to the complaint, the plaintiffs allege that safety issues already existed at Mt. Gox as early as January 2011, when two security breaches led to the loss of “thousands of a Mt. Gox user’s bitcoin.” McCaleb was immediately aware of the issue, but took no follow-up action and did not make the hack public, they claim. The complaint reads: “Rather than inform the public that these users were not refunded, nor stay to repair the security issues, McCaleb sold a majority of his interest in Mt. Gox to Mark Karpeles.” Related:Over 2,000 Investors Back Kraken Crypto Exchange’s $13 Million Crowdfunding Karpeles took over Mt. Gox as CEO around March 2011, but had to file for bankruptcy three years later following the notorious hack. He has sincefaced a trialin Tokyo over his role in the collapse, being found guilty of data manipulation, but innocent of embezzlement. The plaintiffs argue that McCaleb knowingly hid known security issues while continuing to promote and represent the exchange as a secure, safe platform with good liquidity. “In deciding to use Mt. Gox as offered by Defendants, Plaintiff accepted as true the totality of representations and omissions made by representatives from Defendants that Defendants were uniquely qualified to properly provide the services needed to operate a successful and secure exchange per the needs of Plaintiffs and that Mt. Gox was properly funded,” the plaintiffs said. As such, the two have filed their claim with the court, seeking punitive damages and general damages, among others, to compensate for their loss resulting from McCaleb’s alleged misrepresentation of Mt. Gox. McCaleb – who has become known as thecreator of the stellar cryptocurrencysince the Mt. Gox days – said in an email response: “The idea that I was somehow to blame for the demise of Mt. Gox, three whole years after I had anything to do with the site, is completely ridiculous. The amount missing when Mark took over was relatively minor and he was fully aware of it. Mark ran the site into the ground. He managed to have 100s of thousands of bitcoins stolen from him without ever even checking his wallet balance. He was clearly totally incompetent and this is why the site went bankrupt not because of anything else.This is why these people lost their money. The suit is frivolous and just a money grab by unscrupulous people.” More than five years after Mt. Gox filed for liquidation, the case is now in rehabilitation, with creditors having been granted the right to receive their lost funds in the original bitcoin, instead of fiat currencies arising from the liquidation of bitcoin by Mt. Gox’s trustee. Read the full complaint below: Steinmetz, Jones v.s. McCalebbyCoinDeskon Scribd Jed McCaleb image via CoinDesk archives • Japan Watchdog Charges Zaif Crypto Exchange Owner with ‘Legal Violations’ • QuadrigaCX CEO Set Up Fake Crypto Exchange Accounts With Customer Funds
A Closer Look At Public Joint Stock Company Polyus's (MCX:PLZL) Impressive ROE Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Public Joint Stock Company Polyus (MCX:PLZL). Polyus has a ROE of 74%, based on the last twelve months. One way to conceptualize this, is that for each RUB1 of shareholders' equity it has, the company made RUB0.74 in profit. See our latest analysis for Polyus Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Polyus: 74% = RUруб49b ÷ RUруб68b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all earnings retained by the company, plus any capital paid in by shareholders. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. That means that the higher the ROE, the more profitable the company is. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As you can see in the graphic below, Polyus has a higher ROE than the average (9.0%) in the Metals and Mining industry. That's what I like to see. I usually take a closer look when a company has a better ROE than industry peers. For example,I often check if insiders have been buying shares. Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. It appears that Polyus makes extensive use of debt to improve its returns, because it has a relatively high debt to equity ratio of 4.88. Its ROE is clearly quite good, but it would probably be significantly lower without all the debt. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREEvisualization of analyst forecasts for the company. But note:Polyus may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Policymakers turn up heat on Woodford after fund suspension By Simon Jessop and Carolyn Cohn LONDON (Reuters) - Bank of England Governor Mark Carney on Wednesday said illiquid funds that allow savers to take money out at will were "built on a lie", in the latest criticism of British investment guru Neil Woodford's management of his suspended flagship fund. One of Britain's best-known money managers, Woodford over the years won the trust of thousands of small savers before the fund abruptly barred investors from taking their money out because it could not meet redemption requests. The suspension of the 3.7 billion pound LF Woodford Equity Income fund on June 3 has shocked Britons given the hundreds of thousands of retail investors left dangling and the rarity of an easily accessible fund being suspended. It has also prompted questions over whether any rules were flouted and thrown the spotlight on funds that invest in less-liquid assets like unlisted companies while allowing investors to take their money out with ease. "This is a big deal. You can see something that could be systemic," Carney told lawmakers. "These funds are built on a lie, which is that you can have daily liquidity for assets that fundamentally aren't liquid. And that leads to an expectation of individuals that it's not that different to having money in a bank." The use of illiquid assets also drew a sharp rebuke from Nicky Morgan, chair of parliament's Treasury Select Committee, who said it showed the money manager "seems to have learnt little from the financial crisis". She also pledged to back tighter regulation of 'best buy lists' used by fund supermarkets like Hargreaves Lansdown, which has 300,000 clients exposed to the suspended fund. It had the fund in its best buy list until the day of suspension. Responding to the pressure, Britain's top fund industry trade body on Wednesday said it backed a new type of fund to allow retail investors to access private assets. Investment Association Chairman Peter Harrison said the body was speaking to regulators and policymakers about the inclusion of less-liquid assets in daily dealing, or open-ended, funds. "Today, liquidity is valued, perhaps more highly... and I think end-customers, the really important people, didn't fully understand the nature of gating and the value of that liquidity," he said. A new Long-Term Asset Fund - which was in the works even before the Woodford fund was suspended - would give savers access to investment in private companies and other illiquid assets but would likely require investors to give longer notice if they want to leave the fund, the association said. FUNDAMENTAL ISSUES At present there are two ways for a retail investor to access a fund: one is through a so-called 'open-ended' fund like Woodford's, which lets investors get their money back any time. The other is by buying shares in a listed investment company. However, Ian Sayers, Chief Executive of the Association of Investment Companies, said the IA's plan would not address the fundamental issues raised by the Woodford fund suspension, since asset managers tend to favour open-ended funds for commercial reasons. Woodford is on the verge of appointing PJT Park Hill, a division of the investment bank PJT Partners Inc, to offload stakes in private companies such as Atom Bank and Oxford Nanopore, a source familiar with the matter told Reuters late on Tuesday. Woodford has sold nearly 200 million pounds in the fund's UK listed assets to meet the fund's redemption requests, which include a demand from Kent County Council, in southern England, for the return of a 263 million pound investment by its pension fund. The fund suspension will be reviewed on July 1. Woodford's only listed fund, Woodford Patient Capital Trust, which has heavy investments in unlisted stocks, is trading near record lows but was up 0.15% at 0952 GMT. (Additional reporting by Muvija M and Kirstin Ridley; writing by Sinead Cruise, Carolyn Cohn, Simon Jessop; Editing by Keith Weir and Deepa Babington)
Boasting A 74% Return On Equity, Is Public Joint Stock Company Polyus (MCX:PLZL) A Top Quality Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Public Joint Stock Company Polyus (MCX:PLZL). Our data showsPolyus has a return on equity of 74%for the last year. Another way to think of that is that for every RUB1 worth of equity in the company, it was able to earn RUB0.74. Check out our latest analysis for Polyus Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Polyus: 74% = RUруб49b ÷ RUруб68b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, all else equal,investors should like a high ROE. That means ROE can be used to compare two businesses. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Polyus has a better ROE than the average (9.0%) in the Metals and Mining industry. That is a good sign. In my book, a high ROE almost always warrants a closer look. One data point to check is ifinsiders have bought shares recently. Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. It seems that Polyus uses a lot of debt to fund the business, since it has a high debt to equity ratio of 4.88. Its ROE is no doubt quite impressive, but it would probably be a lot lower without the use of significant leverage. Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking 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. 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.
Putin and Trump will meet on June 28 in Osaka: Kremlin By Katya Golubkova and Roberta Rampton MOSCOW/WASHINGTON (Reuters) - Russian President Vladimir Putin and U.S. President Donald Trump will have an hour-long meeting on the sidelines of a G20 summit on June 28 in Osaka in Japan, a Kremlin aide said on Wednesday, in their first official encounter for almost a year. The meeting will take place amid growing tension over Tehran. Trump threatened retaliatory attacks on Iran after blaming it for attacks on two oil tankers, while Iran has also shot down a U.S. surveillance drone. Tehran has denied responsibility for the tanker attacks and has said the U.S. drone was flying in Iranian airspace. Arm control treaties, which both Putin and Trump threatened to quit, will also be discussed by the two, according to the Kremlin fact sheet prepared for the meeting. The Kremlin aide, Yuri Ushakov, said the leaders will also likely discuss "issues of strategic stability, numerous regional conflicts", including Syria, Venezuela and Iran. Washington has not confirmed so far the date for the meeting. "It's not a formal summit, but it is expected to be a conversation that will focus primarily on regional security issues, including Iran, Ukraine, Syria, the Middle East," a U.S. senior administration official said. "They should also touch on arms control issues and on improving the bilateral relationship." Trump said last week he planned to meet Putin at the G20 summit in Japan. The two met briefly on the sidelines of major international events last December and November, after their summit in Helsinki last July when Trump refused to blame the Russian leader for meddling in the 2016 U.S. election, leading to an outcry in the United States. Putin denies the allegations of Russian meddling. Ushakov also said Putin planned to speak publicly a number of times during the G20 and would address "existing imbalances in the international financial system... (and) issues related to escalation of trade conflicts." Story continues "(Putin) Will share his views regarding the strengthening of the role of the World Trade Organization as a universal platform for resolving various disputes and for dialogue on global trade and economic issues," Ushakov said. China and the United States, the world's two largest economies, are waging a costly trade war that has pressured financial markets and damaged the world economy. Markets are focused on whether Trump and his Chinese counterpart Xi Jinping can narrow their differences when they sit down at the G20. (Reporting by Katya Golubkova in Moscow and Roberta Rampton in Washington; Writing by Vladimir Soldatkin; Editing by Hugh Lawson)
China's Alibaba aims to double Tmall Global brands with English portal SHANGHAI (Reuters) - Chinese e-commerce giant Alibaba on Wednesday launched an English-language website for its Tmall Global marketplace aimed at merchants, in an attempt to double the number of international brands on the platform to 40,000 in the next three years. The company said in a statement it wants to make Tmall Global, which currently hosts 20,000 international brands across 77 countries and regions, more appealing and accessible to niche, small- and medium-sized brands from other countries. The new portal comes as Alibaba is facing lean e-commerce revenue growth, which has been further threatened by the ongoing U.S.-China trade spat, and increased competition from rivals such as recently listed Pinduoduo Inc Launched in 2014, Tmall Global is an extension of Alibaba's Tmall marketplace and hosts overseas brands looking to sell to Chinese consumers. "We believe the launch of this English-language website will expedite the process for brands and merchants to introduce their products to Chinese consumers," said Yi Qian, deputy general manager, Tmall Global. Initially, interested brands were able to get in touch with Alibaba mainly through trade shows, personal introductions, or its Chinese-language website, the company said. The new English-language portal, which will assist merchants with tasks such as opening shops on Tmall Global, will eventually be available in other languages such as Spanish and Japanese, the e-commerce giant added. (Reporting by Brenda Goh, Editing by David Evans and Mark Potter)
Why Paul Hartmann AG (FRA:PHH2) Could Have A Place In Your Portfolio Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! I've been keeping an eye on Paul Hartmann AG (FRA:PHH2) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe PHH2 has a lot to offer. Basically, it is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the fullreport on Paul Hartmann here. PHH2 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that PHH2 manages its cash and cost levels well, which is a key determinant of the company’s health. PHH2 appears to have made good use of debt, producing operating cash levels of 10.82x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. Income investors would also be happy to know that PHH2 is a great dividend company, with a current yield standing at 2.3%. PHH2 has also been regularly increasing its dividend payments to shareholders over the past decade. For Paul Hartmann, there are three relevant factors you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for PHH2’s future growth? Take a look at ourfree research report of analyst consensusfor PHH2’s outlook. 2. Historical Performance: What has PHH2'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 PHH2? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
A Look At Paul Hartmann AG's (FRA:PHH2) Exceptional Fundamentals Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Paul Hartmann AG (FRA:PHH2) 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 PHH2, it is a dependable dividend-paying company that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the fullreport on Paul Hartmann here. PHH2 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that PHH2 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. PHH2 seems to have put its debt to good use, generating operating cash levels of 10.82x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. PHH2 is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy. For Paul Hartmann, I've compiled three pertinent factors you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for PHH2’s future growth? Take a look at ourfree research report of analyst consensusfor PHH2’s outlook. 2. Historical Performance: What has PHH2'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 PHH2? 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.
Talking Trash With Dow's Jim Fitterling: CEO Daily Good morning. Dow CEO Jim Fitterling was in theFortuneoffices yesterday. He’s been busy carving out his company from the old Dow andDuPont. But interestingly, he says he also spends about 25% of his time dealing with the issue of plastic waste. The problem, he says, is that plastic isn’t going away, and shouldn’t go away. If you replaced all plastic packaging with glass and metal containers, the carbon footprint would go up four or five times as a result, he says. So instead, Fitterling is focusing on recycling. He was one of the organizers of the Alliance to End Plastic Waste–a group of more than 25 companies that has committed $1.5 billion over the next five years to ensure plastic gets recycled. Recycling has actually declined in recent years due to a reduction in oil prices, which makes new plastic less expensive, and to the shutting of the Chinese market to imported plastic waste, cutting the demand for recycled material. Fitterling and his colleagues are encouraging ways to increase usage of recycled plastic—by putting it in paving asphalt, for instance. “There is not enough of a market” for the recycled stuff, he says. “We have to create demand.” Asked why he is spending so much of his time on the plastic challenge, Fitterling responded: “My millennials all want to solve this problem, too. And it’s not just millennials. People my age want to solve it, too.” When I asked whether his board approved of him spending so much time on the issue, he turned two thumbs up. Fitterling plans to talk about the plastic challenge when he joins us in September at theFortuneGlobal Sustainability Forum in Yunnan, China. (For more information, gohere.). News below. Alan Murray@alansmurrayalan.murray@fortune.com 1. Top NewsAbbVie Buys AllerganHumira-maker AbbVie is buying Botox-maker Allergan for around $63 billion, representing a premium of 45% on Allergan’s latest closing stock price. The news goosed Allergan’s shares by 26% and hit AbbVie’s by 15%. AbbVie is looking to boost its portfolio before generic alternatives to Humira arrive in 2023; Botox is better shielded from competition.FortuneHuawei BanU.S. tech firms, such as chipmakers Micron and Intel, have decided there are legal ways to continue supplying Huawei, to an extent, despite the American blacklisting of the Chinese telecoms giant. The loophole? The U.S.-headquartered companies are able to classify their technology as foreign, thanks to their overseas subsidiaries and operations.BloombergApple AutonomousApple has bought the autonomous vehicle startup Drive.ai at an undisclosed price. Drive.ai had recently announced its closure, and Apple reportedly snapped up its cars and dozens of engineers. Apple cut a couple hundred staffers from its own self-driving-car venture earlier this year.CNBCMueller TestimonyFormer special counsel Robert Mueller will on July 17 finally testify, in an open session, before the House judiciary and intelligence committees. It’s a big win for the Democratic chairs of those committees, who have been pushing to speak with Mueller about his investigation into President Trump and his 2016 campaign.Wall Street Journal 2. Around the Water CoolerNike in ChinaNike released a limited run of trainers designed by the studio of Japan’s Jun Takahashi. However, the studio, Undercover, then expressed support on Instagram for Hong Kong citizens who have been protesting against a law that would allow extraditions to China. Undercover claimed the post was accidental but Nike has now pulled the line in China.Financial TimesBrexit PreparationsEY says U.K. banks are again showing signs of preparing for a no-deal Brexit by moving out of the country. Here’s the consultancy’s U.K. financial services chief, Omar Ali: “The financial impact of Brexit is beginning to fall to the bottom line, and firms are now making a direct link between financial performance and the tangible commercial impacts of Brexit.”ReutersVape BanSan Francisco is set to ban the sale of e-cigarettes—a first for a U.S. city. The legislation is the result of uncertainty over the health effects of the vaping devices. Juul, the market leader—which happens to be based in San Francisco—said the development would “create a thriving black market.”BBCDemocratic UnderdogSo what do you think of Democratic candidate Wayne Messam? Never heard of him? He’s aware of that, and he writes forFortunethat underdog candidates such as himself face a series of barriers. He’s a mayor, so—unlike congressional candidates—he can’t tap his local accounts for a federal campaign. He hasn’t been able to get a televised town hall, for unclear reasons. Messam writes: “Despite these inequities, I now have reached the 1% threshold in two national polls, and I will continue to press forward.”FortuneThis edition of CEO Daily was edited by David Meyer. Findprevious editions here, andsign up for other Fortune newsletters here.
Bitcoin soars past $13,000 as Facebook's Libra fuels demand By Gertrude Chavez-Dreyfuss and OLGA COTAGA NEW YORK/LONDON (Reuters) - Bitcoin jumped to an 18-month high on Wednesday, as investors looked for safety in alternative investments amid geopolitical tension, and cheered prospects that Facebook Inc's Libra token could push cryptocurrencies into the mainstream. The world's biggest cryptocurrency has surged in value since April and on Wednesday hit a peak of $13,666.02 on the Bitstamp exchange, the highest level since January 2018. So far this year, bitcoin has risen more than 260%, although it remains below its all-time high of nearly $20,000 hit in December 2017. Bitcoin last traded up 14.7% at $13,475. Investors have flocked back in to digital currencies after a bruising 2018. Bitcoin has risen for eight consecutive days. And now Facebook has said it would offer its own cryptocurrency, the Libra coin, by end of June 2020. Analysts say Facebook's announcement this month has revived interest in digital currencies, while investors seeking safety have also pushed up bitcoin's price. "Cryptocurrency traders were reinvigorated by Facebook's launch of their own digital coin and momentum appears to be stirring up fresh new investors," said Edward Moya, senior market analyst, at online FX broker OANDA in New York. "Bitcoin skeptics are cautious in trying to stop this surge and may look for the next key resistance level which is $15,000," he added. With major central banks keeping interest rates near all-time lows, investors have been looking for ways to diversify their portfolios, including through cryptocurrenies, analysts said. Bitcoin CME futures volumes have also increased in the past few days, as investors look for ways to get their hands on the coin via the derivatives market. Traders, who have access to both spot and futures markets have been buying the spot and selling the futures, arbitraging the two prices, said Michael Moro, chief executive officer at Genesis Global Trading, which provides over-the-counter digital currency trading for institutional investors. The cryptocurrency has rocketed 150% since early May, along with big rises in other smaller digital currencies such as Ethereum's ether and Ripple's XRP. "It should be noted that this a very different market today than it was in 2017," said Moro. "2017 saw an overwhelming number of ICOs (initial coin offerings), which was very distracting. 2019 has less distractions. It's also a different space because the CME bitcoin futures product wasn't available until December 2017." ICOs refer to a fundraising scheme that bypasses banks and venture capital firms and involves startups creating their own tokens and selling them to the public. (For a graphic on 'Bitcoin hits highest in nearly 18 months' click https://tmsnrt.rs/2FyOjMa) (Reporting by Olga Cotaga in London and Gertrude Chavez-Dreyfuss in New York; Editing by Larry King and Matthew Lewis)
What Kind Of Shareholder Owns Most PGS ASA (OB:PGS) Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! A look at the shareholders of PGS ASA (OB:PGS) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership. With a market capitalization of øre4.4b, PGS is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about PGS. Check out our latest analysis for PGS Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. PGS already has institutions on the share registry. Indeed, they own 75% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see PGS's historic earnings and revenue, below, but keep in mind there's always more to the story. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. It would appear that 13% of PGS shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. 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. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own less than 1% of PGS ASA. It seems the board members have no more than øre9.8m worth of shares in the øre4.4b company. I generally like to see a board more invested. However it might be worth checkingif those insiders have been buying. With a 12% ownership, the general public have some degree of sway over PGS. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow. Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Should You Investigate Profile Systems & Software A.E. (ATH:PROF) At €3.49? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Profile Systems & Software A.E. (ATH:PROF), which is in the software business, and is based in Greece, led the ATSE gainers with a relatively large price hike in the past couple of weeks. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine Profile Systems & Software A.E’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for Profile Systems & Software A.E The stock seems fairly valued at the moment according to my relative valuation model. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 31.99x is currently trading in-line with its industry peers’ ratio, which means if you buy Profile Systems & Software A.E today, you’d be paying a relatively reasonable price for it. Furthermore, Profile Systems & Software A.E’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward. 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 more than double over the next couple of years, the future seems bright for Profile Systems & Software A.E. 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?PROF’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at PROF? Will you have enough conviction to buy should the price fluctuate below the true value? Are you a potential investor?If you’ve been keeping an eye on PROF, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for PROF, which means it’s worth further examining 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 Profile Systems & Software A.E. You can find everything you need to know about Profile Systems & Software A.E inthe latest infographic research report. If you are no longer interested in Profile Systems & Software A.E, 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.

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