text stringlengths 1 675k ⌀ |
|---|
U.S. Treasury Secretary says U.S.-China trade deal is 90% done - CNBC
June 26 (Reuters) - U.S. Treasury Secretary Steven Mnuchin said on Wednesday that the trade deal between the United States and China is "about 90%" complete, CNBC reported.
"We were about 90% of the way there (with a deal) and I think there's a path to complete this," Mnuchin said in an interview to the news channel.
U.S. President Donald Trump and his Chinese counterpart Xi Jinping will meet this week at the G20 summit in Japan hoping to calm their 11-month trade war.
Separately, in comments on recent U.S. sanctions on Iran, Mnuchin said he believes the sanctions "are working".
(Reporting by Kanishka Singh in Bengaluru; Editing by Rashmi Aich) |
U3O8 Corp. Announces Results of Annual General Shareholder Meeting
Toronto, Ontario--(Newsfile Corp. - June 26, 2019) -U3O8 Corp.(TSX:UWE) (OTCQB: UWEFF)("U3O8 Corp." or the "Company") reports that all matters brought before its shareholders were approved at the Annual General Meeting ("AGM") held yesterday in Toronto, Ontario. A total of 6,644,075 of the Corporation's common shares were voted by proxy and in person, representing 28.83% of the 23,043,436 shares outstanding on May 13, 2019, the record date of the AGM.
Directors
Shareholders voted for the slate of directors proposed by Management as follows:
[{"Director": "Keith Barron", "Number ofVotes For": "3,667,623", "% VotesFor": "96.54%", "Number of VotesWithheld": "131,292", "% Votes Withheld": "3.46%"}, {"Director": "David Constable", "Number ofVotes For": "3,652,305", "% VotesFor": "96.14%", "Number of VotesWithheld": "146,610", "% Votes Withheld": "3.86%"}, {"Director": "David Franklin", "Number ofVotes For": "3,652,305", "% VotesFor": "96.14%", "Number of VotesWithheld": "146,610", "% Votes Withheld": "3.86%"}, {"Director": "Pablo Marcet", "Number ofVotes For": "3,652,805", "% VotesFor": "96.15%", "Number of VotesWithheld": "146,110", "% Votes Withheld": "3.85%"}, {"Director": "David Marsh", "Number ofVotes For": "3,652,305", "% VotesFor": "96.14%", "Number of VotesWithheld": "146,610", "% Votes Withheld": "3.86%"}, {"Director": "Richard Spencer", "Number ofVotes For": "3,668,623", "% VotesFor": "96.57%", "Number of VotesWithheld": "130,292", "% Votes Withheld": "3.43%"}]
Auditors
A total of 6,418,521 (97.38%) of shares were voted in favour of the appointment of Davidson and Company LLP to be the Company's auditors for 2019, with 173,049 (2.63%) of votes withheld.
About U3O8 Corp.
U3O8 Corp. is focused on exploration and development of deposits of uranium and battery commodities in South America. Battery commodities that occur with uranium resources include vanadium, nickel, zinc and phosphate. The Company's mineral resources estimates were made in accordance with National Instrument 43-101, and are contained in the following deposits:
• Laguna Salada Deposit, Argentina- a PEA shows this near surface, free-digging uranium - vanadium deposit has low production-cost potential; and
• Berlin Deposit, Colombia- a PEA shows that Berlin also has low-cost uranium production potential due to revenue that would be generated from by-products of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals that occur within the deposit.
The Company also owns approximately 39% of South American Silica, a private company with frac sand properties in Uruguay.
Additional Information
For further information, please contact Carolina Diaz atcarolina@u3o8corp.comor Richard Spencer, President & CEO, U3O8 Corp. atrichard@u3o8corp.comor by telephone at (416) 868-1491.
Information on U3O8 Corp., its resources and technical reports are available atwww.u3o8corp.comand on SEDAR atwww.sedar.com. Follow U3O8 Corp. on Facebook:http://www.facebook.com/u3o8corp, Twitter:http://www.twitter.com/u3o8corpand YouTube:http://www.youtube.com/u3o8corp.
Forward-Looking Statements
This news release includes certain "forward looking statements" related with the development plans, economic potential and growth targets of U3O8 Corp's projects. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to: (a) the low-cost and near-term development of Laguna Salada, (b) the Laguna Salada and Berlin PEAs, (c) the potential of the Kurupung district in Guyana, (d) impact of the U- pgradeTM process on expected capital and operating expenditures, and (e) the price and market for uranium. These statements are based on assumptions, including that: (i) actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned, and assumptions in the Laguna Salada and Berlin PEAs prove to be accurate, (ii) a joint venture will be formed with the provincial petroleum and mining company on the Argentina project, (iii) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., (iv) economic, political and industry market conditions will be favourable, and (v) financial markets and the market for uranium will improve for junior resource companies in the short-term. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements, including, but not limited to: (1) changes in general economic and financial market conditions, (2) changes in demand and prices for minerals, (3) the Company's ability to establish appropriate joint venture partnerships, (4) litigation, regulatory, and legislative developments, dependence on regulatory approvals, and changes in environmental compliance requirements, community support and the political and economic climate, (5) the inherent uncertainties and speculative nature associated with exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project parameters as plans evolve, (6) competitive developments, (7) availability of future financing, (8) exploration risks, and other factors beyond the control of U3O8 Corp. including those factors set out in the "Risk Factors" in our Annual Information Form available on SEDAR atwww.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. U3O8 Corp. assumes no obligation to update such information, except as may be required by law. For more information on the above-noted PEAs, refer to the September 18, 2014 technical report titled "Preliminary Economic Assessment of the Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina" and the January 18, 2013 technical report titled "U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit, Colombia."
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45880 |
Issues That Divide 2020 Democrats Going Into the First Debate
Twenty contenders, two nights, four hours. Even under the best circumstances, the packed 2019 Democratic debates will be a tough place for 2020 candidates to stand out.
Many of the contenders, scheduled to debate over two nights on June 26 and 27, come down similarly on the party’s mainstay issues, like abortion and gun control. In issues where there are policy differences—the environment, healthcare, criminal justice, and the legalization of marijuana—a candidate’s past record may prove to make waves.
Ahead of the first Democratic debates, here are some of the issues that separate candidates from the rest of the 2020 Democratic field.
When it comes to wealth disparity, Former Colorado Governor John Hickenlooper boldly declared himself a capitalist, a sentiment economically shared by many, but eschewed for the word “progressive.” The more unique proposals include Booker’s so-called $1,000 “baby bond,” that would incrementally be given to every child, depending upon family household income. Those bonds could be used for education or buying a home when the child turns 18. And entrepreneur Andrew Yang will get a chance to explain his guaranteed $1,000-per-month salary.
The Green New Deal or the Paris Accord are generally accepted by the candidates, except for Hickenlooper, who rejected the New Deal, but put forth his own proposal that calls for private sector partnership, and Tulsi Gabbard, who is calling for an end to fossil fuel use for electricity.
While the candidates have drawn attention to higher education costs, they are split on solutions. Some, like Sanders, have called for free public college and others, notably Warren, have proposed pathways to clear student debt. Buttigieg believes in cutting the cost of education but doesn’t think the government should underwrite it; neither does Senator Amy Klobuchar (Minnesota). Biden, who now indicates support for free four-year education, will be pressed on his support in 1998 and 2005 for two different changes to tax code that make it harder to discharge federal and private student loans.
The litmus test for abortion rights now includes overturning the Hyde amendment, which bars federal funds from covering abortion for Medicaid patients, with few exceptions. Biden only early this month reversed his support of the Amendment. He will likely have to answer for this, especially in light of his support in 1981 for an amendment that allowed states to overturn Roe v. Wade. Similarly, Gabbard, who entered politics at age 21, originally didn’t support abortion rights, but has since shifted.
All candidates support marijuana legalization, some at the federal level and some at the state level. Biden, once again, may have to answer for his lengthy voting record. In 2010, he said he considered pot a gateway drug, but now thinks states should consider whether to legalize.
Healthcare is a place for some members to break away. Eight candidates, notably Bernie Sanders (Vermont) in his last presidential bid, supported Medicare for All, which would get rid of private insurance entirely. Ten have supported Medicare for all, but also express an interest in keeping private insurance. Delaney and Biden support improving on the Affordable Care Act.
Immigration is the clearest way for the candidates to distinguish themselves from President Donald Trump. Castro, Gillibrand, Sanders ,and Warren have called for Immigration and Customs Enforcement to either be abolished or restructured. Julian Castro, former Secretary of Housing and Urban Development under President Barack Obama, has proposed reclassifying illegal border entry as a civil violation, in which undocumented immigrants can be returned without a court order.
Mayor Pete Buttigieg, who had enjoyed a surprisingly drama-free ride to popularity, will have to explain his criminal justice platform, as his hometown of South Bend, Ind., is reeling from the death of a black man shot by a white police officer. On Sunday, the Mayor hosted tense town halls that highlighted long-running tensions between the black community and the police and called into question the role Buttigieg played in them.
Meanwhile, Harris and Klobuchar, may face questions about how race figured into their past as prosecutors. Harris has been on the defensive for her anti-truancy initiatives, in which some parents were jailed for their child’s absenteeism. Klobuchar will likely be pushed on her decisions to not press charges in about two dozen cases in which civilians were killed during police incidents.
Each candidate supports gun control, with some combination of background checks and bans on assault rifles, bump stocks, and high capacity magazines. Sanders is hoping to lay to rest his vote against background checks in 1993, challenged by Hillary Clinton in his last campaign. He isn’t the only one trying to appeal to the base, which has supported attention to gun control laws. Representative Tim Ryan had received an “A” rating from the NRA, but he broke from the group after the 2017 Las Vegas shooting. He now supports background checks. Senator Michael Bennet (Colorado) has supported bans on high capacity magazines, but in 2010 said he opposed restricting the right to bear arms.
The first two 2019 Democratic presidential debates will air on NBC News, MSNBC and, in Spanish on Telemundo at 9 p.m. E.T. The debates will live stream on each network’s website and onFacebook, Twitter, and YouTube.
—Meet the2020 Democratic presidential candidatesyou’ve (probably) never heard of
—Why 2020 Democratic presidential candidates are flocking toFox News
—Meetthe Republicanslikely to challenge Trump in the 2020 primary
—How woulda recessionshape the 2020 presidential race?
—Beating Trump in 2020: What theelectability conversationmisses
—The campaign finance power behindTrump impeachment efforts |
Give up employer 401(k) match to pay down debt? Dave Ramsey's advice
Dear Dave,
Should I still contribute up to the match to my401(k)at work, like you recommend, if I’m in the process of trying to get out ofdebt?
Russ
Dear Russ,
Some people disagree with this stance, but my answer is no.
I understand how important it is to take the match in a situation like that, but one of the things I’ve learned over the years is that personal finance is 80 percent behavior and only 20 percent head knowledge. In the short term, the power of focusing on changing your behavior and working hard to pay off debt will supersede the mathematics involved where your company match is concerned.
In other words, if you stop saving temporarily, for just a year or so—and wipe out all your consumer debt—you’ll gain a tremendous amount of financial power. And this will be more beneficial to you than one or two years of your company match.
I’d never tell anyone to stop investing, or taking advantage of a company match, for several years. However, if you put it on hold for just a little while and clean up your debt mess—then go back to investing for retirement—you’ll reap many more rewards down the road.
CLICK HERE TO GET THE FOX BUSINESS APP
You’ll permanently change your financial behavior, and you’ll be able to invest even more for retirement and other things.
Good question, Russ!
—Dave
Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web atdaveramsey.comand on Twitter at @DaveRamsey.
Related Articles
• Ryan Lochte's Brand Value Sinks Amid Rio Scandal
• Here's How You Get a Body Like An Olympian
• The Controversial Way Wealthy Americans Are Lowering Estate Taxes |
You can make millions counting cars in parking lots from space
A dog guards his owner's Saab car at a parking lot in Muiden, near Amsterdam, Investors who can afford to hire satellites to scan parking lots are finding a significant edge in the stock market. Satellite speculators have reportedly used techniques like car-counting, tracking oil inventories or watching corn fields to make profitable forecasts of equity and commodity markets. Now, research from finance professors at UC Berkeley and the University of Kentucky provides the first independent evidence that these trading strategies work—and that they’re likely being used to the detriment of small-time investors. The Ethiopian Airlines 737 Max crash could warrant historic punitive damages against Boeing The space datasets in question, created by firms RS Metrics and Orbital Insight, allow sophisticated investors to gain near-realtime understanding of same-store sales growth, an important metric for understanding the business of physical retailers like Walmart, Target or Costco. Investors can then make bets on or against companies just before they disclose quarterly financial results. A trading strategy based on this data would be able to generate significant gains, according the working paper. The researchers used satellite data—4.9 million daily observations covering 75,992 unique stores from 44 major US retailers between 2011 and 2017—to separate publicly-traded retailers into those with higher and lower sales growth. Per the study, an investor with access to that data who sold the top under-performing stocks short and purchased the top high-performing stocks ahead of quarterly reports could see returns of 4.95% over just a few days, after the cost of trading. White supremacists and anti-fascists head to DC ahead of Trump’s July 4 celebration These returns are only available for investors who are willing to pay a “substantial fee” for the satellite data and have (like these academics) the know-how to correlate that information with other data sets on same-store sales. The researchers found that financial analysts who provide consensus forecasts of stock performance were likely not using the satellite data. That helps explain another finding: There is a measurable increase in the short-selling of retailers whose parking lot data look bad in the days before earnings reports, taking advantage of the divergence between public expectations and actual store performance. Story continues In other words, investors are using a strategy like the one the authors describe. Drilling down, the authors even estimate that the main buyers of retailer stocks ahead of bad earnings reports are individual investors. This raises troubling questions for the lead author, Berkeley professor Panos Patatoukas, about efficient markets and information. Generally, economists expect that information incorporated into public markets will result in more accurate prices. But satellite data on store performance has been around for eight years, and an arbitrage opportunity clearly still exists in the market. The growth of big-data analytics means important data—like the geographic statistics being collected by your mobile phone and millions of others—will likely be inaccessible to most investors, which might require regulators to re-think what material information all investors deserve. Still, this specific advantage isn’t likely to last for long, thanks to this paper, and an industry full of newcomers trying to drive down the price of access to space data. Planet, a satellite startup, is collecting imagery like this view of what is said to be the largest Walmart in the US, located in Albany, New York: And that’s just the beginning when it comes to the usability of satellite imagery. Planet and other new satellite companies are working to deploy higher-resolution cameras and radar sensors that can see through clouds to gather even more detail about what’s happening on Earth. Some of the results will be unambiguously good— fewer missing airliners and secret missile programs . One other thing is certain: Motivated quants on Wall Street are only just beginning to leverage the market-moving information that can be gathered in orbit. 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 |
China renews demand on Canada for Huawei executive's release
BEIJING (AP) China on Wednesday renewed a demand that Canada release a top executive of tech giant Huawei a day after announcing a suspension of all imports of Canadian meat products in an apparent bid to increase the pressure on Ottawa. Foreign ministry spokesman Geng Shuang told reporters at a daily briefing Wednesday that Canada should "take seriously China's concerns" and immediately release Meng Wanzhou, Huawei's chief financial officer and the daughter of the company's founder. The Chinese Embassy in Ottawa said in a statement Tuesday that Chinese customs inspectors detected residue from a restricted feed additive called ractopamine in a batch of Canadian pork products, prompting the ban. The additive is permitted in Canada but banned in China. Meng was arrested Dec. 1 in Canada at the request of U.S. authorities, who want to try her on fraud charges. She resides under house arrest in one of her mansions in the city of Vancouver. Days after Meng's arrest, China responded by detaining two Canadians and sentenced another to death in an apparent attempt to pressure for Meng's release. The two detained men, former diplomat Michael Kovrig and businessman Michael Spavor, have been accused of conspiring together to steal state secrets. No evidence has been provided and they have not been allowed access to family members or lawyers while remaining in custody. The latest action against Canada comes as Prime Minister Justin Trudeau heads to Japan for the G-20 summit later this week. U.S. President Donald Trump is expected to meet with his Chinese counterpart Xi Jinping at the summit amid the ongoing tariff war between the world's two largest economies. Meng's arrest set off a diplomatic furor among the three countries, severely damaging Beijing's relations with Ottawa. The Chinese have refused to talk to senior Canadian government officials, including Trudeau and Foreign Minister Chrystia Freeland. Before acting against Canadian meat, China previously stopped importing certain Canadian products like canola. Last year, Canada's shipments of pork to China were worth about 500 million Canadian dollars, or about $380 million. |
At US$52.06, Is Popular, Inc. (NASDAQ:BPOP) Worth Looking At Closely?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Popular, Inc. (NASDAQ:BPOP), operating in the financial services industry based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $58.68 and falling to the lows of $49.92. 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 Popular's current trading price of $52.06 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Popular’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 Popular
Great news for investors – Popular is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $99.13, but it is currently trading at US$52.06 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Popular’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Though in the case of Popular, it is expected to deliver a negative earnings growth of -14%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
Are you a shareholder?Although BPOP is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to BPOP, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor?If you’ve been keeping an eye on BPOP for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Popular. You can find everything you need to know about Popular inthe latest infographic research report. If you are no longer interested in Popular, 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. |
Bitcoin’s Price Is Up 43% in 7 Days as Bull Frenzy Grips Market
• With bitcoin’s rise to 17-month highs, theMayer multiple(a ratio of price to the 200-day moving average) is teasing a break above 2.40 – a level that has marked the beginning of speculative bubbles in the past.
• BTC may see a short-lived spike to resistances at $17,230 (January 2018 high) and possibly to $20,000 (record high) if the Mayer multiple finds acceptance above 2.40.
• The hourly chart is flashing signs of buyer exhaustion, however, so a correction to $11,000 cannot be ruled out.
• A UTC close below the May 31 high of $9,097 would abort the bullish view.
Bitcoin’s (BTC) surging price over the last week is reminiscent of the bull market frenzy observed a year and a half ago.
The leading cryptocurrency by market valuerose toa 17-month high of $12,936 on Bitstamp earlier today. At that price, the cryptocurrency was up $3,900 from the level of $9,036 seen a week ago.
Notably, with the near 90-degree rally to 17-month highs, the ratio of bitcoin’s price to the 200-day price average – known asMayer multiple– printed a high of 2.42, a level which was last seen in early January 2018.
Related:Bitcoin Price Hits 17-Month High Above $12.9K
The Mayer multiple essentially quantifies the spread between the price and the 200-day MA. An above-1.0 ratio indicates BTC is in bull market territory above the 200-day MA, while a reading below one implies the cryptocurrency is in a bear market below the 200-day MA.
That said, over the years it has been observed that a reading above 2.4 signifies the beginning of a temporary speculative bubble – a self-feeding cycle of higher prices attracting more bids, leading to further rally.
The Mayer multiple rose above 2.4 on Mar. 4, 2013, when the price was trading at $36.00, representing 176 percent gains over lows near $13 seen in December 2012. More importantly, the cryptocurrency rallied more than 600 percent to $259 in the following four weeks before falling all the way back to $45 on April 12.
Related:Tim Draper Is Bullish On Argentina’s Blockchain Tech Potential
Further, prices rose from $11,000 to $20,000 in 16 days following the ratio’s rise above 2.4 percent on Dec. 1, 2018. Again, the bubble was short-lived, with prices falling to $12,000 on Dec. 22.
On similar lines, BTC had gone ballistic, rallying by more than 300 percent to $1,163 in three weeks following the Mayer multiple’s move above 2.40 on Nov. 7, 2013. By Dec. 18, however, the price was trading at lows near $350.
So, if history is a guide, then the fear of missing out may kick in once the Mayer multiple finds acceptance above 2.40, leading to further price rise toward the record high of $20,000.
As of writing, bitcoin is trading at $12,521, representing 10 percent gains on a 24-hour basis. Meanwhile, the Mayer multiple is seen at 2.40.
The cryptocurrency has pulled back from 17-month highs hit earlier today, leaving signs of bullish exhaustion on the short duration chart.
Bitcoin created a doji candle with a long upper shadow earlier today. The doji candle – a sign of bull indecision or exhaustion – is backed by highest sell volume (marked by arrow) since June 6.
Such candles often mark a local top, according to Alex Kruger, a prominent fundamental and technical analyst.
As a result, a deeper pullback, possibly to the psychological support of $11,000 cannot be ruled out – more so, as a widely followed long-term indicator is reporting extreme overbought conditions.
The 14-week relative strength index (RSI) is currently hovering above 81.00, the highest level since mid-December 2017.
While the case for a minor pullback is looking strong, the overall outlook will remain bullish as long as the price is held above the May 31 high of $9,097 and the cryptocurrency could chart another meteoric rise toward $20,000 if the Mayer multiple rises above 2.40.
Disclosure:The author holds no cryptocurrency at the time of writing
Green arrowimage via CoinDesk archives; charts byTradingView
• Bitcoin’s Share of $350 Billion Crypto Market Highest Since 2017
• Square Is Expanding Access to Bitcoin Deposits for Cash App Users |
Where Investors Are Taking Advantage of Airbnb 2019
Airbnb has not only changed the way a lot of people travel, but also the way that many investors take advantage of their real estate properties. Rather than picking from hotel chains and relatively pricey boutique inns, travelers might instead rent out someone’s home or a room in that home. Investors are noticing this and adjusting accordingly, finding ways to make a stay in their home or property more appealing than traditional lodging. Some are even seeking out specialized guidance fromfinancial advisorsin order to take advantage of their location and charge competitive rental rates. SmartAsset has analyzed these and other metrics to put together this list of the cities where investors are most taking advantage of Airbnb.
To create this list, we compared 17 cities across five metrics: the percentage of listings for which the entire home/apartment is available, Airbnbs as a percentage of local housing stock, Airbnb rates compared to local rents, the percentage of very active Airbnb listings and the average days available per Airbnb. For details on our data sources and how we put it all together to create our final rankings, see the Data and Methodology section below.
This is SmartAsset’s second annual look at where investors are taking advantage of Airbnb. Read the2018 version of the study here.
Key Findings
• Southern comfort.Four of our top-7 cities are in states located in Southern states. The Northeast is absent from the top of our list.
• Fab five.Though there’s a bit of shuffling, the top 5 cities on our 2018 list are the same this year. New Orleans, Louisiana holds third place for the second year in a row.
1. Nashville, TN
Nashville tops this list. In Music City, 85.95% of all listings are for the entire home, the highest percentage in this study. The average daily Airbnb rate is 5.70 times the average daily rent rate, the fourth-best rate in this study. Each Airbnb property is available for an average of 184 days, the second-best rate among all 17 cities in this study. Nashville ranks in the top five for all of the metrics we analyzed. Overall, investing in an Airbnb property in Nashville might be a smart decision to make with yourfinancial advisor.
2. Asheville, NC
Another Southern city is next – Asheville, North Carolina. Asheville tops this study in three separate metrics: percentage of local housing stock, percentage of very active listings and average available days. Airbnb listings make up 3.56% of local housing stock, 49.47% of the listings are very active (meaning that they’re rented out at least three times per month) and the average Airbnb is available to rent for 187 days. Asheville doesn’t fare quite as well in the other two metrics. Less than three quarters of all listings – 73.44% to be precise – are for the entire house. Asheville ranks sixth for this metric in the study overall. The average Airbnb rate here is 3.69 times the average daily rent and the city ranks eighth for this metric in the study as a whole.
3. New Orleans, LA
New Orleans comes in third on our list of top 7 places where investors are taking advantage of Airbnb. The Big Easy holds the second-highest rate in the study for percentage of listings for the entire home, at 84.90%. It also ranks second-highest out all 17 cities in our study for percentage of local housing stock – at 2.93% – and rate relative to local rent – at 5.90. New Orleans is also one of thetop cities for new college grads.
4. Austin, TX
Austin, Texas rounds out the quartet of Southern cities leading this study as great places to have aninvestment propertyfor Airbnb. It boasts an Airbnb community where 75.62% of the listings are for the entire home, the third-highest rate overall. The Airbnb rate is 5.98 times the average local rent. That’s the highest rate in the study, so this is the city where renters stand to earn the biggest potential profit from using Airbnb. Austin doesn’t fare as well in the very active Airbnb metric, since only 29.44% of listings are categorized as very active, the third-lowest rate in the study.
5. Los Angeles, CA (tie)
Los Angeles, California is the first of two cities in our top 7 to tie for fifth place. In Los Angeles, 1.64% of all homes are listed as Airbnbs. That’s the third-highest percentage in this study. Los Angeles also ranks well for number of days available: the average Airbnb here is available to be rented for 167 days, which is the fourth-highest amount for this metric in the study overall. That could lead to an attractive revenue stream you should discuss with yourfinancial advisor or financial planner.
5. Seattle, WA (tie)
Seattle, Washington ties with Los Angeles for fifth place. It comes in fourth for two different metrics: percentage of listings that are for the entire home (at 74.75%) and Airbnbs as a percentage of local housing stock (at 1.58%). The Emerald City also ranks sixth overall for percentage of very active Airbnb rentals. More than one-third of Airbnb listings – 38.88% to be exact – are rented out at least three times per month.
7. Columbus, OH
Columbus, Ohio rounds out the list and is the only Midwestern city in our study to rank in the top 7. Columbus ranks third-highest in the study overall for the metric of Airbnb rate relative to the local rent: the Airbnb rental rate is 5.76 times the average local rent. Columbus also comes in fifth in terms of the percentage of listings considered very active, at 44.40%. The city doesn’t do as well when it comes to the percentage of the local housing stock listed on Airbnb. At just 0.26%, it ranks last for this metric overall. If you’re thinking of getting amortgagehere for an Airbnb property, considerfinding a financial advisor.
Data and Methodology
To assemble our list of the cities where investors are most taking advantage of Airbnb, we analyzed data for 17 cities. Specifically, we considered five metrics:
• Percentage of listings for entire home.This shows the percentage of listings for which the entire home/apartment is available. Data comes from InsideAirbnb.com and is the most up-to-date listing for each city.
• Airbnbs as a percentage of local housing stock.This is the total number of Airbnb listings divided by the total number of housing units. Data on Airbnb listings comes from InsideAirbnb.com and is the most up-to-date listing for each city. Data on housing units comes from the Census Bureau’s 2017 1-year American Community Survey.
• Airbnb rate relative to local rent.This is the average daily price for renting an Airbnb divided by average daily price of local gross rent. Data comes from InsideAirbnb.com and is the most up-to-date listing for each city. Data on local rents comes from the Census Bureau’s 2017 1-year American Community Survey.
• Percentage of very active Airbnb rentals.This is the percentage of Airbnb listings rented out at least three times per month. Data comes from InsideAirbnb.com and is the most up-to-date listing for each city.
• Average available days per Airbnb.This is the number of days per year the average Airbnb is available to be rented. Data comes from InsideAirbnb.com and is the most up-to-date listing for each city.
To create our final score, we ranked each city in each metric. Then we found each city’s average ranking, giving equal weight to each metric. Using this average ranking, we assigned a score to each city. The city with the best average ranking received a score of 100, while the city with the worst average ranking received a 0.
Note: In order to retrieve the most accurate data, we only included Airbnb listings with at least 0.5 guests per month for every metric analyzed.
Tips for Managing Your Money
• Explore your options with expert help.Considering finding new income streams? Talk to a financial advisor. It’s easy to find one with SmartAsset’s freefinancial advisor matching service. You answer a few questions and we match you with up to three advisors in your area, all fully vetted and free of disclosures. From there, you talk to each advisor and decide how to move forward.
• Manage your mortgage early.If you’re thinking of buying a home, you’ll need to know what your monthly mortgage payment will be. Get a sense of what it might look like withSmartAsset’s free mortgage calculator.
Questions about our study? Contact us atpress@smartasset.com
Photo credit: ©iStock.com/FG Trade
The postWhere Investors Are Taking Advantage of Airbnb 2019appeared first onSmartAsset Blog.
• How to Invest in Commodity Futures
• What Is Assets Under Management (AUM)?
• The Best Financial Planning Software Programs |
Exclusive: China hacked eight major computer services firms in years-long attack
By Jack Stubbs, Joseph Menn and Christopher Bing
LONDON (Reuters) - Hackers working for China's Ministry of State Security broke into networks of eight of the world's biggest technology service providers in an effort to steal commercial secrets from their clients, according to sources familiar with the attacks.
Reuters today reported extensive new details about the global hacking campaign, known as Cloud Hopper and attributed to China by the United States and its Western allies.
Read the full report here:
https://www.reuters.com/investigates/special-report/china-cyber-cloudhopper
A U.S. indictment in December outlined an elaborate operation to steal Western intellectual property in order to advance China's economic interests but stopped short of naming victim companies. A Reuters report at the time identified two: Hewlett Packard Enterprise and IBM.
Now, Reuters has found that at least six other technology service providers were compromised: Fujitsu, Tata Consultancy Services, NTT Data, Dimension Data, Computer Sciences Corporation and DXC Technology, HPE's spun-off services arm.
Reuters has also identified more than a dozen victims who were clients of the service providers. That list includes Swedish telecoms giant Ericsson, U.S. Navy shipbuilder Huntington Ingalls Industries and travel reservation system Sabre.
HPE said it worked "diligently for our customers to mitigate this attack and protect their information." DXC said it had "robust security measures in place" to protect itself and clients, neither of which have "experienced a material impact" due to Cloud Hopper.
NTT Data, Dimension Data, Tata Consultancy Services, Fujitsu and IBM declined to comment. IBM has previously said it has no evidence sensitive corporate data was compromised by the attacks.
Sabre said it had disclosed a cybersecurity incident in 2015 and an investigation concluded no traveler data was accessed. A Huntington Ingalls spokeswoman said the company is "confident that there was no breach of any HII data" via HPE or DXC.
Ericsson said it does not comment on specific cybersecurity incidents. "While there have been attacks on our enterprise network, we have found no evidence in any of our extensive investigations that Ericsson's infrastructure has ever been used as part of a successful attack on one of our customers," a spokesman said.
The Chinese government has consistently denied all accusations of involvement in hacking. The Chinese Foreign Ministry said Beijing opposed cyber-enabled industrial espionage. "The Chinese government has never in any form participated in or supported any person to carry out the theft of commercial secrets," it said in a statement to Reuters.
The Cloud Hopper attacks carry worrying lessons for government officials and technology companies struggling to manage security threats.
Chinese hackers, including a group known as APT10, were able to continue the attacks in the face of a counter-offensive by top security specialists and despite a 2015 U.S.-China pact to refrain from economic espionage.
Reuters was unable to detail the full extent of the damage done by the hacking and many victims are unable to tell exactly what was stolen. Yet senior Western intelligence officials say the toll was high.
"This was a sustained series of attacks with a devastating impact," said Robert Hannigan, former director of Britain’s GCHQ signals intelligence agency and now European chairman at cybersecurity firm BlueVoyant.
(Additional reporting by Gao Liangping, Cate Cadell and Ben Blanchard in Beijing. Editing by Ronnie Greene and Jonathan Weber) |
Is Cardinal Energy Ltd. (TSE:CJ) Trading At A 28% Discount?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Cardinal Energy Ltd. (TSE:CJ) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. I will use the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for Cardinal Energy
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF (CA$, Millions)", "2019": "CA$48.30", "2020": "CA$42.00", "2021": "CA$38.15", "2022": "CA$35.93", "2023": "CA$34.67", "2024": "CA$34.02", "2025": "CA$33.78", "2026": "CA$33.81", "2027": "CA$34.02", "2028": "CA$34.37"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x3", "2021": "Est @ -9.16%", "2022": "Est @ -5.83%", "2023": "Est @ -3.5%", "2024": "Est @ -1.86%", "2025": "Est @ -0.72%", "2026": "Est @ 0.08%", "2027": "Est @ 0.64%", "2028": "Est @ 1.03%"}, {"": "Present Value (CA$, Millions) Discounted @ 9.95%", "2019": "CA$43.93", "2020": "CA$34.74", "2021": "CA$28.70", "2022": "CA$24.58", "2023": "CA$21.58", "2024": "CA$19.26", "2025": "CA$17.39", "2026": "CA$15.83", "2027": "CA$14.49", "2028": "CA$13.31"}]
Present Value of 10-year Cash Flow (PVCF)= CA$233.82m
"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 (1.9%) 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 9.9%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CA$34m × (1 + 1.9%) ÷ (9.9% – 1.9%) = CA$438m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CA$CA$438m ÷ ( 1 + 9.9%)10= CA$169.61m
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 CA$403.43m. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of CA$3.5. Compared to the current share price of CA$2.52, the company appears a touch undervalued at a 28% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the 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 Cardinal Energy 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 9.9%, which is based on a levered beta of 1.343. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Cardinal Energy, I've compiled three important aspects you should further examine:
1. Financial Health: Does CJ 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 CJ'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 CJ? 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 TSE 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. |
What Is SecureWorks Corp.'s (NASDAQ:SCWX) Share Price Doing?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! SecureWorks Corp. ( NASDAQ:SCWX ), which is in the software business, and is based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $19.9 and falling to the lows of $12.85. 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 SecureWorks's current trading price of $12.85 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 SecureWorks’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for SecureWorks Is SecureWorks still cheap? The stock is currently trading at US$12.85 on the share market, which means it is overvalued by 46.77% compared to my intrinsic value of $8.76. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that SecureWorks’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. What kind of growth will SecureWorks generate? NasdaqGS:SCWX Past and Future Earnings, June 26th 2019 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with a negative profit growth of -8.3% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for SecureWorks. This certainty tips the risk-return scale towards higher risk. Story continues What this means for you: Are you a shareholder? If you believe SCWX should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the risk from a negative growth outlook, this could be the right time to de-risk your portfolio. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you’ve been keeping an eye on SCWX for a while, now may not be the best time to enter into the stock. Its price has risen beyond its true value, on top of a negative future outlook. However, there are also other important factors which we haven’t considered today, such as the track record of its management. Should the price fall in the future, will you be well-informed enough to buy? Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on SecureWorks. You can find everything you need to know about SecureWorks in the latest infographic research report . If you are no longer interested in SecureWorks, you can use our free platform to see my list of over 50 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 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. |
More than half Chinese consumers shun U.S. goods due to trade war -survey
SHANGHAI (Reuters) - More than half Chinese consumers have avoided buying anything made in the United States in support of their country in an escalating trade war, a survey suggests, posing a "significant" risk to U.S. companies.
The poll, conducted by London-based advisory firm Brunswick which surveyed 1,000 Chinese consumers, said 56% of respondents had said they had avoided U.S. products, while 68% said their opinion of American firms had become more negative.
"This poses a significant bottom line risk to U.S. companies as three in four Chinese consumers say they often buy products from American businesses," Brunswick said on Wednesday.
The world's two largest economies have been caught up in a bruising trade war which has seen both sides slap tit-for-tat tariffs on each other's exports, hurting businesses and stoking concerns among firms that they could be caught up in the cross-fire.
U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, are set to meet for the first time in seven months at this weekend's G20 summit in Japan, but prospects for progress in the trade talks look slim.
Brunswick also surveyed 1,000 U.S. consumers for their opinions on China. It said that American opinions of Chinese companies were worsening and that 60% of respondents had noticed price increases on household goods since tariffs were increased.
(Reporting by Brenda Goh; Editing by Nick Macfie) |
When Should You Buy SecureWorks Corp. (NASDAQ:SCWX)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
SecureWorks Corp. (NASDAQ:SCWX), which is in the software business, and is based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $19.9 and falling to the lows of $12.85. 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 SecureWorks's current trading price of $12.85 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 SecureWorks’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for SecureWorks
The stock is currently trading at US$12.85 on the share market, which means it is overvalued by 46.77% compared to my intrinsic value of $8.76. This means that the buying opportunity has probably disappeared for now. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that SecureWorks’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a negative profit growth of -8.3% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for SecureWorks. This certainty tips the risk-return scale towards higher risk.
Are you a shareholder?If you believe SCWX should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the uncertainty from negative growth in the future, this could be the right time to reduce your total portfolio risk. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping tabs on SCWX for some time, now may not be the best time to enter into the stock. Its price has risen beyond its true value, on top of a negative future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on SecureWorks. You can find everything you need to know about SecureWorks inthe latest infographic research report. If you are no longer interested in SecureWorks, 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. |
Are Insiders Buying Trilogy International Partners Inc. (TSE:TRL) 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. 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 inTrilogy International Partners Inc.(TSE:TRL).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Trilogy International Partners
Co-Founder Bradley Horwitz made the biggest insider purchase in the last 12 months. That single transaction was for CA$870k worth of shares at a price of CA$2.90 each. That means that even when the share price was higher than CA$2.78 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders bought 560k shares for a total of CA$1.6m. In the last twelve months Trilogy International Partners insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. 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.
Over the last three months, we've seen significant insider buying at Trilogy International Partners. In total, insiders bought US$1.6m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Trilogy International Partners insiders own about CA$6.8m worth of shares (which is 3.5% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
The recent insider purchases are heartening. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Trilogy International Partners insiders are reasonably well aligned, and optimistic for the future. Of course,the future is what matters most. So if you are interested in Trilogy International Partners, 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. |
Are Insiders Buying Trilogy International Partners Inc. (TSE:TRL) Stock?
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. 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 inTrilogy International Partners Inc.(TSE:TRL).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But 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.'
See our latest analysis for Trilogy International Partners
Over the last year, we can see that the biggest insider purchase was by Co-Founder Bradley Horwitz for CA$870k worth of shares, at about CA$2.90 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$2.78). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders paid CA$1.6m for 560k shares purchased. Trilogy International Partners may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. 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).
It's good to see that Trilogy International Partners insiders have made notable investments in the company's shares. In total, insiders bought US$1.6m 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.5% of Trilogy International Partners shares, worth about CA$6.8m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Trilogy International Partners insiders are expecting a bright future. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Trilogy International Partners.
Of courseTrilogy International Partners may not be the best stock to buy. So you may wish to see thisfreecollection of high quality 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. |
UPDATE 1-Oman to open embassy in Palestinian territories' West Bank -foreign ministry
(Adds details and background)
DUBAI, June 26 (Reuters) - Oman said on Wednesday it was planning to open a new diplomatic mission in the Israeli-occupied West Bank and that a delegation from its foreign ministry would go to Ramallah for that purpose.
The Gulf state made its announcement as Washington launched an economic plan it says will be a foundation for Israeli-Palestinian peace but which Palestinians and many other Arabs dismiss as pointless without a political solution.
"In line with the Sultanate's support for the brotherly Palestinian people, it has decided to open a new diplomatic mission for Palestine at the level of embassy," the foreign ministry said in Twitter post.
"A delegation from the foreign ministry will be going to Ramallah to start procedures to open the embassy," the tweet added.
A source familiar with the decision said that Oman closed its diplomatic mission in Gaza following the 2006 Israeli bombing of the strip of land, but it kept close ties with the Palestinian authority.
Hanan Ashrawi, a senior official in the Palestine Liberation Organisation, welcomed the decision and any recognition of Palestine as a state.
"I hope the embassy will help in educating the Omani government on the real nature of the Israeli occupation," Ashrawi added, speaking at a news conference on Wednesday in Ramallah.
Oman has long been to the Middle East what neutral Switzerland is to global diplomacy. The country helped to mediate secret U.S.-Iran talks in 2013 that led to the historic nuclear deal signed in Geneva two years later.
It has been offering ideas to help Israel and the Palestinians come together although it is not acting as a direct mediator.
Last year, Israeli Prime Minister Benjamin Netanyahu made a rare visit to Muscat and discussed Middle East peace initiatives with Omani leader Sultan Qaboos. (Reporting By Aziz El Yaakoubi and Rami Ayyub in Ramallah, Editing by Toby Chopra, William Maclean) |
Imagine Owning Visible Gold Mines (CVE:VGD) And Trying To Stomach The 89% Share Price Drop
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Some stocks are best avoided. It hits us in the gut when we see fellow investors suffer a loss. Spare a thought for those who held Visible Gold Mines Inc. ( CVE:VGD ) for five whole years - as the share price tanked 89%. It's down 11% in the last seven days. While a drop like that is definitely a body blow, money isn't as important as health and happiness. See our latest analysis for Visible Gold Mines With zero revenue generated over twelve months, we don't think that Visible Gold Mines has proved its business plan yet. You have to wonder why venture capitalists aren't funding it. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that Visible Gold Mines will find or develop a valuable new mine before too long. Companies that lack both meaningful revenue and profits are usually considered high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. It certainly is a dangerous place to invest, as Visible Gold Mines investors might realise. Our data indicates that Visible Gold Mines had CA$524,012 more in total liabilities than it had cash, when it last reported in January 2019. That puts it in the highest risk category, according to our analysis. But with the share price diving 35% per year, over 5 years, it's probably fair to say that some shareholders no longer believe the company will succeed. You can click on the image below to see (in greater detail) how Visible Gold Mines's cash levels have changed over time. Story continues TSXV:VGD Historical Debt, June 26th 2019 It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. What if insiders are ditching the stock hand over fist? I would feel more nervous about the company if that were so. It only takes a moment for you to check whether we have identified any insider sales recently. A Different Perspective It's good to see that Visible Gold Mines has rewarded shareholders with a total shareholder return of 14% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 35% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. Before spending more time on Visible Gold Mines it might be wise to click here to see if insiders have been buying or selling shares. If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor 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. |
JPM's Jamie Dimon describes the bank branch of the future: Fewer tellers, more advisors
JPMorgan Chase (JPM) CEO Jamie Dimon is bullish on the future of retail bank branches as the largest U.S. bank continues its expansion.
"There are people in business who always look at facts. OK, we have a million people a day visit branches. So millennials are doing it less, they're still doing it,” Dimon told Yahoo Finance's Andy Serwer in an exclusive interview at the unveiling of JPMorgan’snew flagship bank branch in Midtown Manhattan.
Approximately 21 million different customers will visit a JPMorgan branch each year, he added. While JPMorgan boasts more than 50 million digital users, the physical branches are crucial to supporting local small businesses and middle-market companies as well as consumers.
[See Also:Jamie Dimon: If we're lucky, we'll get a trade deal by the 'end of the year']
However, over time, the format of a bank branch will change, Dimon acknowledged. The newer format features more ATMs, fewer tellers, and more advisors. Those advisors may give advice to small businesses, private clients, or cutomers looking for a mortgage.
“The advice part is going up. The operational part is going down. On average, the branch will get smaller, ” he said.
The future of the branch has become a topic of discussion among the most prominent banking players in the U.S.
Citigroup (C) CEO Mike Corbat said at a Fortune event last week that the firm’s strategy is shifting toward a “physical light” and forcing “a lot more digital interaction” with customers.
"I'm not prepared to lock all the branch doors yet,"he said, adding, "I think you'll see the nature of physical presence in branches probably change materially."
Elsewhere, Goldman Sachs (GS) wants to disrupt banking with its young online consumer arm Marcus by Goldman Sachs.
[See Also:Jamie Dimon: Student lending in the U.S. is a 'disgrace' and it's 'hurting America']
"There is no reason why you need to walk to a branch to do banking,” Goldman’s Harit Talwar, the head of global consumer,told Yahoo Financeat the same event.
Meanwhile, JPMorgan is on the expansion trail, with plans to open 400 new branches in the next few years across 20 new markets, including some that are “right at the heart” of some of the bank’s competitors.
In the last year, JPMorgan entered new markets in Washington, D.C., Philadelphia, and Boston. This year, new branches will be opened in Charlotte, Minneapolis, St. Louis, and Nashville.
By 2022, JPMorgan Chase expects to have a branch within 93% of the U.S. population.
The expansion will also create “thousands of jobs,” Dimon said. JPMorgan employs 49,100 people across its network of more than 5,000 branches.
—
Julia La Roche is a finance reporter at Yahoo Finance. Follow her onTwitter.
• Dimon: If we are lucky, we’ll get a trade deal by the end of the year
• Jamie Dimon: The U.S. economy should have grown 40% in the last decade, not 20%
• Dimon: Cyber security threats may be the ‘biggest threat to the U.S. financial services system’
• 11 problems that are holding the U.S. back
• Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,SmartNews,LinkedIn,YouTube, andreddit. |
Matson, Inc. (NYSE:MATX) Delivered A Better ROE Than Its Industry
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Matson, Inc. (NYSE:MATX).
Our data showsMatson has a return on equity of 14%for the last year. That means that for every $1 worth of shareholders' equity, it generated $0.14 in profit.
Check out our latest analysis for Matson
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Matson:
14% = US$107m ÷ US$763m (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. 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. The higher the ROE, the more profit the company is making. So, all else equal,investors should like a high ROE. 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. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As you can see in the graphic below, Matson has a higher ROE than the average (3.8%) in the Shipping industry.
That's clearly a positive. We think a high ROE, alone, is usually enough to justify further research into a company. For example,I often check if insiders have been buying shares.
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 use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used.
Matson clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.14. There's no doubt the ROE is respectable, but it's worth keeping in mind that metric is elevated by the use of debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
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 you might want to check this FREEvisualization of analyst forecasts for the company.
But note:Matson 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. |
Facebook's libra has staggering potential – state control of money could end
The UNrecognises180 currencies worldwide as legal tender, all of them issued by nation states. It does not recognise cryptocurrencies like bitcoin in this way, even if communities of enthusiasts have been treating them as a means of exchange for over a decade now.
Yet the latest addition to this group,Facebook’s libra, threatens to do something that no other cryptocurrencies have come close to achieving: the state monopoly over the control and issuance of money is now under serious threat.
Facebookboastsover half the world population as active monthly users: 2.2 billion on Facebook, 0.8 billion on Instagram and 0.7 billion on WhatsApp. Combined with thefact that1.7 billion adults worldwide have no bank accounts, a project like this is the perfect petri dish in which to create a truly global currency.
The independent Libra Council that Facebookproposesto oversee this new currency from Geneva will become nothing short of a quasi central bank. Consisting of 27 giant corporates plus Facebook, it will vet aspiring applicants who wish to join their ranks for a fee of US$10m (£7.9m); as well as manage the reserve of state currencies and short-term government bonds that will back the libra.
This model is very different to the likes of bitcoin, whose exchange rate is driven purely by the supply and demand. In contrast, the Libra Council would be competing in global currency wars against other nation states.
Imagine ten years from now if, say, 40% of all US dollars are held on deposit by Facebook/the council to back the issued libra coins, which have by now become widely used across the world. We can hypothesise that US dollars might constitute a 30% weight of libra’s asset-backing basket – to have a steady exchange rate for libra, the idea is to underpin it with a selection of stable and widely traded financial assets.
In the likely event that the US experiences a moderate, or even severe economic crisis, Facebook/the council would need to rebalance the basket of assets to defend the value of libra. Let’s say they decided to revise down the US dollar weighting in their reserve to 25% of the basket. This would involve selling huge sums of US dollars and replacing them with, say, euros, and would significantly drive down the value of the dollar.
This would be a very negative market signal, encouraging other holders of dollars to dump them as well, thereby exacerbating the fall. And even before this happened, Facebook could potentially use the mere threat as leverage in negotiating with nation states on matters of regulation, taxation and so on.Based onFacebook’s current revenues, it would already be 90th in the world by GDP if it was a nation state, so its power to face off in negotiations with states and trading blocs is formidable even without libra.
Read more:Libra: four reasons to be extremely cautious about Facebook's new currency
How do nation states control a global company with unprecedented access to their citizens’ data, its own currency, and perhaps the ability to affect their domestic politics and the strength of their currency on the global markets? It sounds tricky to put it mildly.
And by the way, it’s not only Facebook that is entering this space. JP Morgan has just launched a cryptocurrency for institutional customers,while13 other global investment banks are planning to follow suit with currencies in 2020. Samsungis rumouredto be looking at launching a currency for ordinary customers, while it would not be surprising if other online giants like Amazon and Google were tempted, too.
Mark Carney, governor of the Bank of England and chairman of the Financial Stability Board,told the G20in 2018 that cryptocurrencies didn’t pose a systemic risk to the global financial system. His assessment might have been based on their current footprint rather than their potential.
In fact, the blockchain technology that underpins new currencies like libra has astonishing potential. The ability to significantly move exchange rates is only part of it: if people buy and sell with these currencies, save with them, trade with them, demand for state currencies and bonds could plunge.
This would undermine the ability of central banks and governments to buy and sell these assets to set national interest rates. It would emasculate this vital means of managing our economies, leaving only fiscal levers like taxing and spending at the disposal of states. What then?
Of course, such a seismic shift in our control of the use of money would first require these new currencies to be widely adopted. Yet the genie has been out of the bottle since the arrival of cryptocurrencies – it will be very difficult to stop it now.
If this space comes to be dominated by big listed companies like Facebook and JP Morgan, it is at least arguably preferable to alternatives like bitcoin which are almost unfettered in having no geographic or tax domicile and being pseudo-anonymous in nature. A currency like libra also has the potential to reduce consumer transaction speeds, improve transparency and allow users to store their wealth digitally using a “trusted” consortium of founding institutions.
And when it comes to future geopolitical shocks like Brexit, consumers will be able to shield themselves more easily by reducing their exposure to, say, the British pound by holding their wealth in libra or whatever instead. Arguably we are talking about a superior type of money that is better aligned to a younger generation that is comfortable with such new forms of money.
Notwithstanding, we need to come to terms with the size of this potential change and its ramifications: Facebook’s impact on our societies has been profound over the previous two decades, and libra may well eclipse that accomplishment. Facebook’sfounding mantraof “move fast and break things” seems entirely consistent with the strategy for this currency.
The American futuristStewart Brandfamouslysaid that“once a technology rolls over you, if you’re not part of the steamroller, you’re part of the road”. Well, nation states appear not to have been invited to get on board this particular steamroller. That leaves a lot of vulnerable road – watch closely to see what they try and do about it in the months ahead.
This article is republished fromThe Conversationunder a Creative Commons license. Read theoriginal article.
Gavin Brown is a Non-Executive Director and Co-founder at Blockchain Capital Limited, a start-up digital assets fund which has yet to launch. It would not benefit directly from this article but does have an interest in digital asset investments such as bitcoin which leverage blockchain technology. |
Better Buy: Cisco Systems vs. Microsoft
Microsoft(NASDAQ: MSFT)andCisco Systems(NASDAQ: CSCO)are both tech stalwarts that have helped shape the landscape of the Internet and computer software for the past several decades.
In the age of cloud-based services, both companies have had to reinvent themselves to accommodate shifting customer demands. The two tech giants appear to have navigated the changes pretty successfully so far, and investors have pushed up Cisco's share price 95% and Microsoft's 165% over the past three years as a result.
But to find out which is the better long-term play for investors, let's look at their financial fortitude, valuations, and competitive advantages.
Image source: Getty Images.
[{"Company": "Microsoft", "Cash": "$131.5 billion", "Debt": "$86.3 billion", "Free Cash Flow (TTM)": "$33.6 billion"}, {"Company": "Cisco", "Cash": "$34.6 billion", "Debt": "$23.7 billion", "Free Cash Flow (TTM)": "$15.1 billion"}]
Data source: Yahoo! Finance and Morningstar. TTM = Trailing 12 months.
Both of the companies have significant debt, but also have substantial cash that offsets their debt obligations. Additionally, Microsoft and Cisco are generating solid trailing-12-month free cash flow, an indicator that their businesses are in good shape. Because of all this, Microsoft and Cisco have stable financial positions that investors don't need to worry about right now.
Winner: Tie.
[{"Company": "Microsoft", "P/E Ratio (TTM)": "30.7", "Forward P/E": "27.0", "EV/EBIDTA": "19.4"}, {"Company": "Cisco", "P/E Ratio (TTM)": "19.8", "Forward P/E": "16.7", "EV/EBIDTA": "15.1"}]
Data source: Yahoo! Finance.
The average P/E for companies in theS&P 500is about 22, which means that Cisco's stock looks cheaper compared with Microsoft's shares. It's not that Microsoft is all that expensive, but when matched up to Cisco, it's the slightly pricier of the two.
Meanwhile, the average EV/EBITDA for companies in the S&P 500 is around 14, which makes Cisco's stock again look cheaper. All of which means Cisco gets the edge in the valuation comparison.
Winner: Cisco.
Cisco has built its business by providing top-shelf internet connectivity hardware and services for years. Providing its clients with some of thebest technology and softwarehas given it a good competitive advantage that won't be easily overcome.
Similarly, Microsoft has successfully transitioned to cloud-based software, and its suite of Office productivity offerings is unmatched. The company has moved quickly and successfully into thepublic cloud-computing market, providing storage and services to companies of all sizes through Azure, the second-largest public cloud service. It's tapping into the massive cloud computing market that is predicted to be worth $278 billion by 2021.
While both of these companies have some advantages over their peers, Microsoft's dominance in both cloud-based software and its Azure cloud services gives the company more opportunities to benefit as cloud services grow. Meanwhile, Cisco is still focused more on hardware rather than the cloud, which gives Microsoft a slight edge right now.
Winner: Microsoft.
Because of Microsoft's successful transition to the cloud, I'm giving the company the win. Cisco is a great company, and it's performing well for investors. But if you look five or 10 years down the road, I see Microsoft continuing to benefit from the cloud and even strengthening its position. Meanwhile, Cisco is still, at its core, a hardware company that likely won't benefit as much from cloud computing as Microsoft will.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors.Chris Neigerhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft. The Motley Fool has adisclosure policy. |
Should Lovesac (NASDAQ:LOVE) Be Disappointed With Their 24% Profit?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
It might be of some concern to shareholders to see theThe Lovesac Company(NASDAQ:LOVE) share price down 18% in the last month. But that doesn't change the reality that over twelve months the stock has done really well. After all, the share price is up a market-beating 24% in that time.
See our latest analysis for Lovesac
Because Lovesac is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Lovesac grew its revenue by 62% last year. That's a head and shoulders above most loss-making companies. The solid 24% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. So quite frankly it could be a good time to investigate Lovesac in some detail. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic.
Lovesac shareholders should be happy with thetotalgain of 24% over the last twelve months. And the share price momentum remains respectable, with a gain of 5.7% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
Of courseLovesac may not be the best stock to buy. So you may wish to see thisfreecollection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Should You Invest in the Invesco S&P 500 Equal Weight Financials ETF (RYF)?
Looking for broad exposure to the Financials - Broad segment of the equity market? You should consider the Invesco S&P 500 Equal Weight Financials ETF (RYF), a passively managed exchange traded fund launched on 11/01/2006.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $285.73 M, making it one of the average sized ETFs attempting to match the performance of the Financials - Broad segment of the equity market. RYF seeks to match the performance of the S&P 500 Equal Weight Financials Index before fees and expenses.
The S&P 500 Equal Weight Financials Index is an unmanaged equal weighted version of the S&P 500 Financials Index that consists of the common stocks of the following industries: banks, diversified financials, brokerage, asset manage-ment insurance and real estate, including investment trusts that comprise the Financials sector of the S&P 500 Index.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.20%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 100% of the portfolio.
Looking at individual holdings, Msci Inc (MSCI) accounts for about 1.80% of total assets, followed by American International Group Inc (AIG) and Cincinnati Financial Corp (CINF).
The top 10 holdings account for about 16.94% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Equal Weight Financials ETF return is roughly 18.56% so far, and it's up approximately 0.98% over the last 12 months (as of 06/26/2019). RYF has traded between $34.13 and $45.11 in this past 52-week period.
The ETF has a beta of 1.13 and standard deviation of 16.01% for the trailing three-year period, making it a medium risk choice in the space. With about 67 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Financials ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RYF is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Financials ETF (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR Fund (XLF) tracks Financial Select Sector Index. Vanguard Financials ETF has $7.45 B in assets, Financial Select Sector SPDR Fund has $23.72 B. VFH has an expense ratio of 0.10% and XLF charges 0.13%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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 reportInvesco S&P 500 Equal Weight Financials ETF (RYF): ETF Research ReportsMSCI Inc (MSCI) : Free Stock Analysis ReportFinancial Select Sector SPDR Fund (XLF): ETF Research ReportsVanguard Financials ETF (VFH): ETF Research ReportsAmerican International Group, Inc. (AIG) : Free Stock Analysis ReportCincinnati Financial Corporation (CINF) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Chocoladefabriken Lindt & Sprüngli AG (VTX:LISN) Potentially Underrated?
Want to participate in a short 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 Chocoladefabriken Lindt & Sprüngli AG ( VTX:LISN ) due to its excellent fundamentals in more than one area. LISN is a notable 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. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Chocoladefabriken Lindt & Sprüngli here . Excellent balance sheet average dividend payer LISN is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that LISN has sufficient cash flows and proper cash management in place, which is a key determinant of the companys health. LISN seems to have put its debt to good use, generating operating cash levels of 0.64x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the companys cash flows. SWX:LISN Historical Debt, June 26th 2019 For those seeking income streams from their portfolio, LISN is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.3%. SWX:LISN Historical Dividend Yield, June 26th 2019 Next Steps: For Chocoladefabriken Lindt & Sprüngli, I've compiled three pertinent factors you should further research: Future Outlook : What are well-informed industry analysts predicting for LISNs future growth? Take a look at our free research report of analyst consensus for LISNs outlook. Historical Performance : What has LISN's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LISN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Liberty Latin America Ltd. (NASDAQ:LILA): When Will It Breakeven?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Liberty Latin America Ltd.'s (NASDAQ:LILA): Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The US$3.3b market-cap posted a loss in its most recent financial year of -US$345.2m and a latest trailing-twelve-month loss of -US$342.4m shrinking the gap between loss and breakeven. As path to profitability is the topic on LILA’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for LILA.
Check out our latest analysis for Liberty Latin America
According to the 6 industry analysts covering LILA, the consensus is breakeven is near. They expect the company to post a final loss in 2019, before turning a profit of US$102m in 2020. So, LILA is predicted to breakeven approximately a couple of months from now! What rate will LILA have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 91%, which signals high confidence from analysts. If this rate turns out to be too aggressive, LILA may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of LILA’s upcoming projects, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one issue worth mentioning. LILA currently has a debt-to-equity ratio of 166%. Typically, debt shouldn’t exceed 40% of your equity, and LILA has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.
There are key fundamentals of LILA which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at LILA, take a look atLILA’s company page on Simply Wall St. I’ve also compiled a list of important factors you should further research:
1. Valuation: What is LILA worth today? Has the future growth potential already been factored into the price? Theintrinsic value infographic in our free research reporthelps visualize whether LILA is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look atwho sits on Liberty Latin America’s board and the CEO’s back ground.
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. |
Airlines and regulators meet to discuss Boeing 737 MAX un-grounding efforts
By Allison Lampert
MONTREAL (Reuters) - Airlines and regulators are gathering at a closed-door summit in Montreal on Wednesday to exchange views on steps needed for a safe and coordinated return of Boeing Co's grounded 737 MAX jets to the skies following two deadly crashes.
The meeting, organized by industry trade group the International Air Transport Association (IATA), comes as airlines grapple with the financial impact of a global grounding of nearly 400 737 MAX jets that has lasted three months.
Boeing, the world's largest planemaker, has yet to formally submit proposed 737 MAX software and training updates to the U.S. Federal Aviation Administration (FAA), which will kick-start a re-certification process that could take weeks.
IATA Director General Alexandre de Juniac has said "shoring up trust among regulators and improving coordination" within an industry that grounded the MAX planes on different dates in March would be priorities at Wednesday's summit.
It is the second such meeting organized by IATA.
China was first to ground the MAX after a March 10 crash in Ethiopia within five months of a similar crash off Indonesia, killing a combined 346 people, while the United States and Canada were the last.
Regulators including Transport Canada, the Civil Aviation Authority of Singapore and the FAA will join airlines at the meeting, representatives from the authorities told Reuters.
Once regulators approve the MAX for flight, airlines must remove the jets from storage and implement new pilot training, a process that will differ for each airline but that U.S. carriers have said will take at least one month.
Some airlines and regulators have argued that pilots should be trained in a MAX simulator before flying, though Boeing's minimum training requirements do not call for flight simulators, according to draft proposals.
"Training is up to each regulator. When the MAX returns to the skies, with the updated software and required training, it will be one of the safest airplanes ever to fly," Boeing spokesman Paul Bergman said.
Boeing's software fix is meant to make a system known as MCAS, which played a role in both crashes, less powerful.
Still, Air Canada has said its 400 MAX pilots, about 10 percent of its pilot force, will train in the simulator. Air Canada is the only North American carrier that currently owns the MAX simulator.
U.S. carriers have discussed putting pilots in scenarios similar to the 737 MAX crashes as part of recurring training.
(Reporting by Allison Lampert; additional reporting by Tracy Rucinski in Chicago, Jamie Freed in Singapore and Eric M. Johnson in Seattle; Editing by James Dalgleish) |
The Daily Biotech Pulse: Decision Day For Regeneron-Sanofi, Vermillion Offering, PDL BioPharma CFO to Depart
Here's a roundup of top developments in the biotech space over the last 24 hours.
Scaling The Peaks
(Biotech stocks hitting 52-week highs on June 25)
• ArQule, Inc.(NASDAQ:ARQL)
• Zai Lab Ltd(NASDAQ:ZLAB)
Down In The Dumps
(Biotech stocks hitting 52-week lows on June 25)
• AbbVie Inc(NYSE:ABBV)(announced a deal to buyAllergan plc(NYSE:AGN) for $63 billion)
• Acer Therapeutics Inc(NASDAQ:ACER)(The FDA issued complete response letter to its rare disease drug Edsivo)
• Aerie Pharmaceuticals Inc(NASDAQ:AERI)
• Aldeyra Therapeutics Inc(NASDAQ:ALDX)(reportednegative results for the late-stage study that evaluated its reproxalap in anterior uveitis)
• Atara Biotherapeutics Inc(NASDAQ:ATRA)
• Axcella Health Inc(NASDAQ:AXLA)
• Biopharmx Corp NYSE:(BPMX) (reported positive results for a Phase 2b clinical trial of BPX-04 in treating moderate-to-severe papulopustular rosacea)
• CELYAD SA/ADR(NASDAQ:CYAD)
• Conatus Pharmaceuticals Inc(NASDAQ:CNAT)(announceddecision to explore strategic alternatives following failed NASH drug trial)
• Enochian Biosciences Inc(NASDAQ:ENOB)
• Evolent Health Inc(NYSE:EVH)
• Innovate Biopharmaceuticals Inc(NASDAQ:INNT)
• Myriad Genetics, Inc.(NASDAQ:MYGN)
• Nuvectra Corp(NASDAQ:NVTR)
• Puma Biotechnology Inc(NASDAQ:PBYI)
• Sellas Life Sciences Group Inc(NASDAQ:SLS)
• ‘Sierra Oncology Inc(NASDAQ:SRRA)
• Surface Oncology Inc(NASDAQ:SURF)
• Tetraphase Pharmaceuticals Inc(NASDAQ:TTPH)
• Trillium Therapeutics Inc(NASDAQ:TRIL)
Stocks In Focus DURECT Shares To Transfer Listing To Nasdaq Capital Market
DURECT Corporation(NASDAQ:DRRX) said the Nasdaq has approved the transfer of the listing of its common stock from the Nasdaq Global Market – meant for mid-cap stocks – to the Nasdaq Capital Market – meant for small-cap stocks - effective June 27.
The Nasdaq has also granted an additional 180-day grace period until Dec. 23 to regain compliance with the exchange's minimum bid price requirement.
The stock rose 0.67% to 66 cents in after-hours trading.
Lilly's Heart Drug Gets Fast Track Designation
Eli Lilly And Co(NYSE:LLY) said the FDA has granted Fast Track Designation to empagliflozin, its investigational asset for the reduction of the risk of cardiovascular death and hospitalization for heart failure in people with chronic heart failure. Lilly is co-developing the drug with Boehringer Ingelheim.
See Also:Adapative Biotechnologies IPO: What You Need To Know
PDL BioPharma CFO To Leave
PDL BioPharma Inc(NASDAQ:PDLI) announced the resignation of its CFO Peter Garcia, effective Aug. 15. The company said Garcia will continue in his role through the filing of its second-quarter 10-Q.
Vistagen Reports Narrower March Quarter Loss
Vistagen Therapeutics Inc(NASDAQ:VTGN) reported a narrower loss of 90 cents per share for the March quarter compared to the loss of $1.12 per share in year-ago quarter.
As of March 31, the company had cash and cash equivalents of about $13.1 million.
View more earnings on IBB
The shares advanced 12.66% to 80 cents in after-hours trading.
Offerings
Global Blood Therapeutics Inc(NASDAQ:GBT) announced an agreement to sell about $200 million of its common stock in a registered underwritten public offering. The company intends to use the net proceeds primarily to fund its clinical development of voxelotor for the treatment of sickle cell disease.
The stock slipped 3.68% to $60.13 in after-hours trading.
Vermillion, Inc.(NASDAQ:VRML) intends to offer shares of its common stock in an underwritten public offering. The company said the offering is subject to market and other conditions, and that there is no guarantee the offering may be completed or as to the actual size or terms of the offering.
The stock slipped 11.37% to 78 cents in after-hours trading.
The Medicines Company(NASDAQ:MDCO) priced its common stock offering of 4.55 million shares at $33 per share that would raise gross proceeds of about $150 million.
The stock slid 1.16% to $33.37 in after-hours trading.
PDUFA Dates
The FDA will announce its decision onSanofi SA(NASDAQ:SNY) &Regeneron Pharmaceuticals Inc(NASDAQ:REGN)'s sNDA for Dupixent to be used as an add-on maintenance treatment for adults with inadequately controlled severe chronic rhinosinusitis with nasal polyps.
Clinical Trial Readout
Ascendis Pharma A/S(NASDAQ:ASND) will release Phase 3 fliGHt data for its TransCon hGH, which is being evaluated for growth hormone deficiency in children.
See more from Benzinga
• The Daily Biotech Pulse: Genfit NASH Drug In China, Conatus Explores Sale, Gilead Stitches Up Immuno-Oncology Partnership
• FDA Type A Meetings: What You Need To Know
• The 5 Most Expensive Drugs In US: What You Should Know
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Is Royce Global Financial Services Service Class (RYFSX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Sector - Finance fund? Well, Royce Global Financial Services Service Class (RYFSX) would not be a good potential starting point right now. RYFSX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
RYFSX is classified in the Sector - Finance segment by Zacks, and this area is full of possibilities. The financial space is notoriously large, complex, and heavily-regulated, and Sector - Finance mutual funds give investors a stable, diversified approach to investing in this industry. These funds can include everything from banks and investment giants to exchanges and insurance companies, though investors should note that interest rates could have a big impact.
History of Fund/Manager
RYFSX is a part of the Royce Funds family of funds, a company based out of New York, NY. Royce Global Financial Services Service Class debuted in January of 2004. Since then, RYFSX has accumulated assets of about $31.79 million, according to the most recently available information. Charles M. Royce is the fund's current manager and has held that role since January of 2004.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 5.29%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 7.83%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 16.19%, the standard deviation of RYFSX over the past three years is 12.5%. The standard deviation of the fund over the past 5 years is 13.31% compared to the category average of 15.85%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. RYFSX lost 51.2% in the most recent bear market and outperformed its peer group by 10.29%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Investors should note that the fund has a 5-year beta of 0.97, so it is likely going to be as volatile as the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -3.52, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, RYFSX is a no load fund. It has an expense ratio of 1.49% compared to the category average of 1.42%. RYFSX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment needs to be at least $50.
Bottom Line
Overall, Royce Global Financial Services Service Class ( RYFSX ) has a low Zacks Mutual Fund rank, strong performance, average downside risk, and higher fees compared to its peers.
Your research on the Sector - Finance segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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 reportGet Your Free (RYFSX): Fund Analysis ReportTo read this article on Zacks.com click here. |
5 U.S. Pot Stocks With the Most Dispensary Licenses
In case you haven't been paying attention, North America is "going green" at a rapid pace -- and I'm not talking about solar energy. The legal cannabis movement is quickly picking up steam, and legal weed sales are expected to soar in the years that lie ahead.
In the 2019 "State of the Legal Cannabis Markets" report from Arcview Market Research and BDS Analytics, which was released last week, the duo calls for global cannabis sales in licensed dispensaries to rise from $10.9 billion in 2018 to$40.6 billion by 2024. That's a cool compound annual growth rate of more than 24%, and it's certainly enough to get Wall Street and investors excited about marijuana stocks.
But at the center of this excitement is the United States, which projects to generate nearly three-quarters of the $40.6 billion to be collected in 2024. A combination of ongoing marijuana legalizations (both medical and recreational), organic growth within existing markets, and the rise of cannabidiol (CBD), the nonpsychoactive cannabinoid best known for its perceived medical benefits, are all reasons that the U.S. cannabis market is expected to thrive.
Image source: Getty Images.
Ultimately, this means vertically integrated, multistate dispensary operators are at the center of the green rush in the United States. With that being said, the following five U.S. pot stocks may have a leg up on their competition by possessing the most retail store licenses.
The kingpin of all multistate dispensary operators in the U.S. currently looks to beHarvest Health & Recreation(NASDAQOTH: HRVSF), which hasmore than 230 facility licenses on a pro forma basis(i.e., if all of its pending acquisitions were to close). Of these facilities, 142 are for retail licenses spanning 17 states.
Harvest Health, whose stores operate under the "Harvest" name, made waves primarily in mid-March, when it announced an all-stock deal to acquire privately held Verano Holdings for about $850 million. For a brief period of time, it was the largest all-stock deal announced in the United States.
However, perhaps an even bigger win for Harvest Health was the announcement three weeks ago that it hadsigned an agreementwith the Asian American Trade Associations Council (AATAC) to provide its Colors, CBx Essentials, and Harvest-branded CBD products in over 10,000 gas stations and convenience stores around the country. The AATAC is a huge trade association that has ties with independent and branded gas station operators -- Harvest also announced that this deal could reach up to 30,000 stores by the end of 2019.
Clearly, Harvest Health has some work to do with just over a dozen stores currently open, but the sheer number of retail licenses it holds is unsurpassed in the dispensary space.
Image source: Getty Images.
AlthoughGreen Thumb Industries(NASDAQOTH: GTBIF)is projected to be a major player, you certainly don't hear much about the company, which operates its stores under the Rise or Essence name. Currently, Green Thumb has licenses to open up to 89 retail locations, with a presence in one dozen states and 23 open Rise-branded stores.
Perhaps the most interesting recent move is the now-completed acquisition of Integral Associates, which operated its stores under the Essence name. This buyout gave Green Thumba position in the tourist-friendly Las Vegas market, with three high-traffic open locations and licenses for an additional five stores in the Las Vegas area. Despite its relatively small population, Nevada projects as one of13 billion-dollar marijuana markets by 2024.
That speaks to the next point: Green Thumb has firmly planted itself in pretty much every one of these billion-dollar markets. With six owned brands and more than a dozen production facilities, GTI, as the company is also known, aims to dominate in Nevada, California, Colorado, New York, Florida, Illinois, and other major marijuana markets.
Image source: Getty Images.
In a tight race for the No. 2 spot,Acreage Holdings(NASDAQOTH: ACRGF)comes in third with 88 retail licenses, just one behind GTI. However, Acreage does lead all multistate dispensary operators on the basis of state presence. It has retail licenses and an aggregate of 1.2 million square feet of production facilities or processing sites in 20 U.S. states on a pro forma basis.
If the name sounds familiar, it's likely because the company -- and now its shareholders through a vote -- has agreed to beacquired on a contingent-rights basisbyCanopy Growth(NYSE: CGC). The deal, valued at $3.4 billion when announced, involves Canopy handing over $300 million in cash up front to Acreage's shareholders, then completing the deal in Canopy's stock if (and here's the contingency) the U.S. federal government legalizes cannabis. Buying Acreage is viewed by Canopy as a quick way to establish the infrastructure needed to succeed in the U.S., if and when the federal government changes its tune on pot.
Acreage also stands out for having a number of well-known lawmakers on its board of advisors. Long-time cannabis opponent-turned-supporterJohn Boehner(former Republican Speaker of the House) and former Canadian Prime Minister Brian Mulroney are both advisors for the company.
Image source: Getty Images.
Slotting in fourth but easily within striking distance for the No. 2 spot is upscale cannabis chainMedMen Enterprises(NASDAQOTH: MMNFF), which is on a mission to normalize the cannabis-buying experience. On a pro forma basis, MedMen has licenses for 86 stores in 12 states, with 37 stores currently open (again, on a pro forma basis).
The transformational deal for MedMen looks to be itspending acquisition of PharmaCann. Announced in October but expected to close in the second half of this year, the $682 million all-stock deal will net MedMen 11 currently operational stores, six new states (bringing it up to the aforementioned 12), and 24 total retail licenses (MedMen currently has 62). A couple of these licenses will prove especially important, such as Illinois, which will be launching recreational cannabis sales at the beginning of 2020.
Looking ahead, the Sunshine Stateis a big-time target for MedMen. Even though the company announced plans to open a 15th retail store in California last week -- the Golden State is the nation's largest pot market by aggregate sales -- MedMen has plans to open as many as 30 retail locations in Florida, where cannabis is currently legal for medical purposes.
Image source: Getty Images.
Lastly, we haveCuraleaf Holdings(NASDAQOTH: CURLF), thecurrent leader among U.S. dispensariesin open locations, with 45. Operating in a dozen states, Curaleaf also has 12 cultivation sites and 11 processing facilities. In case you haven't noticed, this seed-to-sale control is imperative in order to 1) control quality, 2) keep costs down, and 3) follow federal laws that don't allow for the interstate transport of marijuana.
The reason I've alluded to "70 licenses (at least)" above is the company's own recent investor presentation that calls for the number of open dispensaries to climb from 45 to 70 by year's end. Unlike the previous four U.S.-focused pot stocks, Curaleaf doesn't regularly divulge how many retail licenses it holds. That means its efforts to have 70 open dispensaries by year's end likely means it has at least 70 retail licenses in its back pocket.
One thing Curaleaf does have is a rapid path to top-line growth. Two months ago, we learned that Curaleafwould acquire Cura Partners, the company behind the Select brand, for about $950 million in an all-stock deal. According to a Curaleaf presentation, Select generated $117 million in sales in 2018. When added to Curaleaf's $88 million, the pro forma $205 million in 2018 sales between these two companies leaves all of their dispensary-operating peers eating dust!
In other words, aggregate licenses aren't everything when it comes to succeeding as a vertically integrated dispensary operator.
More From The Motley Fool
• Beginner's Guide to Investing in Marijuana Stocks
• Marijuana Stocks Are Overhyped: 10 Better Buys for You Now
• Your 2019 Guide to Investing in Marijuana Stocks
Sean Williamshas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
BlackBerry shares tumble on sales shortfall in largest business
(Reuters) - Canada's BlackBerry Ltd on Wednesday reported lower-than-expected sales for its biggest business, hurt by weak demand for its security software from firms and government agencies, sending its shares down as much as 10%.
Waterloo, Ontario-based BlackBerry, once known for its phones, has pivoted to selling software such as those used in mobiles and by automakers, hoping to find a more stable source of revenue. The company also supplies technology to companies developing driverless cars.
But revenue from its Internet of Things business, which houses its enterprise software and technology solutions, rose only 5% to $137 million, coming in below estimates of $151.4 million, according to IBES data from Refinitiv.
"IoT appeared to have underperformed. Given (technology solutions) revenue stream is typically stable and growing, any shortfall would have been from enterprise software," Raymond James analyst Steven Li said.
Overall adjusted revenue rose 23% to $267 million in the first quarter, benefiting from the company's recent $1.4 billion bet on cybersecurity firm Cylance.
"Excluding Cylance, revenue was down slightly," Li said.
BlackBerry in February completed its acquisition of California-based Cylance, whose software uses machine learning to preempt security breaches.
In the quarter, adjusted revenue from Cylance was $51 million, above the average analyst estimate of $48.8 million.
The company's net loss narrowed to $35 million, or 9 cents per share, in the quarter ended May 31, from $60 million, or 11 cents per share, a year earlier.
Excluding one-time items, the company earned 1 cent per share, in line with analysts' estimates.
BlackBerry's shares were last down 8.6% at C$9.95.
(Reporting by Debroop Roy in Bengaluru; Editing by Maju Samuel and Sweta Singh) |
Lloyds Banking Group plc (LON:LLOY) Is Yielding 5.7% - But Is It A Buy?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Is Lloyds Banking Group plc (LON:LLOY) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.
In this case, Lloyds Banking Group likely looks attractive to investors, given its 5.7% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Explore this interactive chart for our latest analysis on Lloyds Banking Group!
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Lloyds Banking Group paid out 58% 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.
Remember, you can always get a snapshot of Lloyds Banking Group's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of Lloyds Banking Group's dividend payments. This dividend has been unstable, which we define as having fallen by at least 20% one or more times over this time. During the past ten-year period, the first annual payment was UK£0.35 in 2009, compared to UK£0.032 last year. This works out to a decline of approximately 91% over that time.
A shrinking dividend over a ten-year period is not ideal, and we'd be concerned about investing in a dividend stock that lacks a solid record of growing dividends per share.
With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS are growing. It's good to see Lloyds Banking Group has been growing its earnings per share at 51% a year over the past 5 years. With recent, rapid earnings per share growth and a payout ratio of 58%, this business looks like an interesting prospect if earnings are reinvested effectively.
To summarise, shareholders should always check that Lloyds Banking Group's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Lloyds Banking Group's payout ratio is within normal bounds. 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. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Lloyds Banking Group out there.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 19 analysts we track are forecasting for Lloyds Banking Groupfor 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. |
Should You Buy Lloyds Banking Group plc (LON:LLOY) For Its Dividend?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we'll take a closer look at Lloyds Banking Group plc (LON:LLOY) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. 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 Lloyds Banking Group yielding 5.7%, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Lloyds Banking Group paid out 58% of its profit as dividends. This is a fairly normal payout ratio among most businesses. It allows a higher dividend to be paid to shareholders, but does limit the capital retained in the business - which could be good or bad.
Consider gettingour latest analysis on Lloyds Banking Group's financial position here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of Lloyds Banking Group's dividend payments. The dividend has been cut by more than 20% on at least one occasion historically. 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£0.35 in 2009, compared to UK£0.032 last year, and Lloyd's did not pay a dividend for many years in between. Dividend payments have fallen sharply, down 91% over that time.
A shrinking dividend over a ten-year period is not ideal, and we'd be concerned about investing in a dividend stock that lacks a solid record of growing dividends per share.
With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS are growing. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Lloyds Banking Group has grown its earnings per share at 51% per annum over the past five years. With recent, rapid earnings per share growth and a payout ratio of 58%, this business looks like an interesting prospect if earnings are reinvested effectively.
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. First, we think Lloyds Banking Group has an acceptable payout ratio. Next, earnings growth has been good, but unfortunately the dividend has been cut at least once in the past. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Lloyds Banking Group out there.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 19 analysts we track are forecasting for Lloyds Banking Groupfor freewith publicanalyst estimates for the company.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Loophole may clear ECB's way to buying more state debt - sources
* Bond clause could create way around issuer limit
* "Disenfranchisement" would strip ECB of bond voting rights
* Option has yet to be discussed by policymakers
* Likely to face legal, political objections
By Francesco Canepa
FRANKFURT, June 26 (Reuters) - An obscure clause in government bond contracts may help the European Central Bank clear a key hurdle to launching a fresh stimulus programme by allowing it to own even more government debt, according to central bank officials.
With the euro zone's growth and inflation prospects dimming, ECB President Mario Draghi has strongly hinted at more monetary easing in the form of interest rate cuts or new asset purchases.
But after hoovering up 2 trillion euros ($2.27 trillion) worth of public sector bonds in the past four years, the ECB has precious little room for buying more, if it is to respect a self-imposed ban on owning more than a third of each country's debt.
This so-called issuer limit is designed to prevent the ECB from becoming a "blocking minority" if a country applies for a debt restructuring and its bondholders have to vote on it.
This limit already looms large in smaller jurisdictions such as Finland, the Netherlands and Portugal, curtailing the ECB's firepower if it launches a new programme.
But under possible solutions studied by staff of the euro zone's 19 national central banks, this constraint may be circumvented by stripping central banks of their voting rights, two sources familiar with the matter said.
This would be done through a clause, known as "disenfranchisement", which excludes bondholders directly connected to the issuer of a bond from votes.
That way, the ECB and the national central banks that carried out the bulk of the government bond purchases under the previous programme could go over the issuer limit and still avoid getting involved in any vote on debt restructuring.
An ECB spokesman declined to comment.
ECB President Mario Draghi said last week the central bank had "flexibility" within its mandate, adding that a recent ruling by the European Court of Justice on its bond purchases gave it "broad discretion ... in using all (its) tools in a necessary and proportionate way".
VOTING RIGHTS
The logic for taking away the central banks' voting rights is based on the premise that they would not be free to vote in favour of taking a loss on their holdings because that would tantamount to directly financing the government that issued that debt.
This is prohibited by EU Treaties.
This interpretation of the disenfranchisement clause had yet to be discussed by the ECB's policy-making Governing Council and it was likely to face opposition on legal and political grounds.
For starters, the EU body which oversaw the introduction of this and other Collective Auction Clauses (CAC) in 2012 said at the time national central banks were a prime example of a state institution that should keep its voting rights.
"Euro area national central banks ... have autonomy of decision," the EU's Economic and Financial Committee said at the time. "Their holdings of these securities will be enfranchised under the model CAC," it added.
The committee, whose members include representatives from governments, the European Commission and the ECB itself, also said that bondholders should not be excluded because of the supposed predictability of their vote.
Under CAC rules, major changes to a bond's terms, such as a haircut or maturity extension, must be approved by 75% of bondholders present at a meeting where at least two thirds of creditors are gathered.
Second, some ECB policymakers object to the very notion of owning so much of any one country's debt on the grounds that it would blur the line between stimulating the euro zone economy and financing a government, albeit indirectly.
This has been a long standing objection of opponents of the ECB's bond-buying programme in richer countries such as Germany, which fear it may turn into a tool for bankrolling their indebted neighbours in southern Europe. ($1 = 0.8804 euros)
(Editing by Alison Williams) |
Have You Added She/Her/Hers to Your Email Signature?: Broadsheet
Good morning, Broadsheet readers! We speculate about whether architecture can reduce sexual harassment, Time’s Up has some suggestions for the Democratic debates, and preferred pronouns are making their way into corporate America. Have a wonderful Wednesday.
1. EVERYONE’S TALKING•She/Her/Hers.Last month, I wrote aboutanNYTstorylooking at the ways in which the growing number of people—particularly young people—who identify as nonbinary (neither only male nor only female) is challenging our society to evolve beyond its either/or view of gender.This issue’s been on my mind ever since, so I was interested to spotthis pieceabout the trend in the corporate world of specifying your preferred pronouns in your email signature, Twitter bio, or other public profiles—or simply when you introduce yourself.Quartzcites steps by companies like Workday, Intuit, IBM, and TIAA to make the process easier and more normalized. Yet the story doesn’t skip over the complications that can arise when people or companies embrace the practice carelessly. One question that arises: Are firms essentially pressuring employees to reveal information about themselves that could lead to harm—including the loss of a job or even physical violence?The best practice seems to be approaching the issue thoughtfully, sharing your pronouns as you feel comfortable and signaling to others that you’re ready to adopt the correct language if they choose to do so in return.What do you think,Broadsheetreaders? Have you started incorporating your preferred pronouns into how you identify yourself? I’d love to hear about how you’re thinking about this issue—please email me and let me know! We may use your response in a futureBroadsheet.QuartzKristen Bellstrom (she/her/hers)@kayelbeekristen.bellstrom@fortune.com
2. ALSO IN THE HEADLINES•A thousand words.A heartbreaking photo of a father and daughter who drowned crossing the Rio Grande has captured the devastating nature of the growing migrant crisis. Photojournalist Julia Le Duc shot the image and reported on the plight of the pair, Óscar Alberto Martínez Ramírez and 23-month-old daughter Valeria. Le Duc’s photo calls to mind the 2015 image of a 3-year-old Syrian boy who drowned in the Mediterranean, which brought more attention to that crisis.Fortune•Your question’s up.In this op-ed, Eva Longoria, a founding member of Time’s Up, political strategists Ana Navarro, and Hilary Rosen, a Democratic strategist and co-founder of the Time’s Up Legal Defense Fund, put forth six women-centric questions that they’d like to see asked in this week’s Democratic debates—and, I’d imagine, all presidential debates going forward.Washington Post•Building a safer future.Here’s an unexpected angle on #MeToo: How can architects and interior designers create safer professional spaces that will help reduce sexual harassment and other types of misconduct? The answers are surprising.Harvard Business Review•Grisham takes the podium.Stephanie Grisham, deputy chief of staff and communications director for First Lady Melania Trump, will be the next White House press secretary. She replaces Sarah Huckabee Sanders and becomes President Trump’s sixth communications director.PoliticoMOVERS AND SHAKERS:Meredith Whitney,who’s often referred to as “the banking analyst who predicted the financial crisis, joins Zume as CFO.Tonia O’Connor,most recently head of Univision, has been named CEO of Chopra Global.
3. IN CASE YOU MISSED IT•Breakfast badass.We’ll give you one guess on the name of the newest athlete to appear on the iconic Wheaties box. (Hint: Her name starts with an “S” and ends with “erena”!)Star Tribune•An ugly accusation.Fatou Jallow, a winner of Gambia’s top beauty pageant, has accused the nation’s former president, Yahya Jammeh, of raping her. Jammeh, who fled Gambia after losing the 2017 election, has a long history of horrific acts, including the torturing and killing of enemies and the jailing and beating of protesters and journalists. He has never been held to account for his crimes.New York Times•New majority.New Pew Research Center data finds that women will soon represent the majority of the U.S.’s college-educated workforce for the first time ever.NPRShare today’s Broadsheetwith a friend.Looking for previous editions?Click here.
4. ON MY RADARVaginas deserve giant ads, tooNew York TimesChief, the New York club for elite women, is expandingBloombergThe obvious ways to squash tech’s gender gap—from the women who made it to the topLinkedInRomance novelists write about sex and pleasure. On the Internet that makes them targets for abuseGlamour
5. QUOTEI have asked myself if I feel a responsibility to help someone—or a group, that may not be as privileged as me. Is it my responsibility to stand up for them? Is it my responsibility to share the mic? And I’ve answered yes to that.Janelle Monáe, speaking to Fortune's Ellen McGirt about allyship |
Global shares turn higher as investors look to G-20 meeting
TOKYO (AP) — Global shares were turned higher on Wednesday as investors await developments in trade friction between the U.S. and China at the Group of 20 meeting of major economies in Japan later in the week.
France's CAC 40 was up 0.1% in midday trading, at 5,518. Germany's DAX was up 0.4% at 12,280 and Britain's FTSE 100 inched nearly 0.1% higher to 7,427.
U.S. shares were set to drift higher with Dow and S&P 500 futures both adding 0.4%.
Asian markets closed lower earlier. Japan's benchmark Nikkei 225 slipped 0.5% to finish at 21,086.59, while Australia's S&P/ASX 200 fell 0.3% to 6,640.50. South Korea's Kospi stood virtually unchanged at 2,121.85. Hong Kong's Hang Seng edged up 0.1% to 28,221.98, while the Shanghai Composite lost 0.2% to 2,976.28.
Trade policy remains the biggest source of uncertainty looming over the market. Investors are worried about the trade dispute between the U.S. and China and its potential impact on global economic growth and corporate profits.
Presidents Donald Trump and Xi Jinping will meet this week at the G-20 summit. The world's two largest economies spent much of the current quarter escalating their trade war and giving global markets jitters over prospects for economic growth.
"To a large extent, any further deterioration in trade relations is expected to guide expectations here so the focus remains up ahead with the G-20," said Jingyi Pan, market strategist at IG in Singapore.
How the trade war develops could affect whether central banks move in to support the economy. Fed Chairman Jerome Powell this week noted that the economic outlook has become cloudier since early May amid uncertainty over trade and global growth. The Fed and the European Central Bank have indicated they are open to cutting interest rates if needed.
ENERGY: Benchmark crude oil rose $1.07 to $58.90 a barrel amid worries about tensions in the Middle East, centered around concerns about Iran, and industry data that showed a decrease in U.S. crude oil inventories. It fell 7 cents to settle at $57.83 a barrel Tuesday. Brent crude oil, the international standard, rose 75 cents to $65.03 a barrel.
CURRENCIES: The dollar rose slightly to 107.71 yen from 107.03 yen on Tuesday. The euro weakened to $1.1367 from $1.1381.
___
Follow Yuri Kageyama on Twitterhttps://twitter.com/yurikageyama
On Instagramhttps://www.instagram.com/yurikageyama/?hl=en |
A Spotlight On Klépierre SA's (EPA:LI) Fundamentals
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Attractive stocks have exceptional fundamentals. In the case of Klépierre SA (EPA:LI), there's is a notable dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the fullreport on Klépierre here.
LI's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if LI's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, LI's share price is trading below the group's average. This further reaffirms that LI is potentially undervalued.
Income investors would also be happy to know that LI is one of the highest dividend payers in the market, with current dividend yield standing at 7.2%. LI has also been regularly increasing its dividend payments to shareholders over the past decade.
For Klépierre, there are three relevant factors you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for LI’s future growth? Take a look at ourfree research report of analyst consensusfor LI’s outlook.
2. Historical Performance: What has LI'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 LI? 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. |
Should Klépierre SA (EPA:LI) Be Your Next Stock Pick?
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 Klépierre SA (EPA:LI) due to its excellent fundamentals in more than one area. LI is a well-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at thereport on Klépierre here.
LI is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of LI's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, LI's share price is trading below the group's average. This further reaffirms that LI is potentially undervalued.
Income investors would also be happy to know that LI is one of the highest dividend payers in the market, with current dividend yield standing at 7.2%. LI has also been regularly increasing its dividend payments to shareholders over the past decade.
For Klépierre, I've put together three important aspects you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for LI’s future growth? Take a look at ourfree research report of analyst consensusfor LI’s outlook.
2. Historical Performance: What has LI'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 LI? 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. |
General Mills sales hit by low demand for Nature Valley, Fiber One bars
(Reuters) - General Mills Inc's quarterly sales fell short of Wall Street estimates on Wednesday, hurt by lower demand for its Nature Valley and Fiber One snack bars, sending its shares down as much as 10%.
Consumers have been moving away from granola and snack bars, once a staple breakfast food, as they become more conscious of high sugar content in them.
To counter slowing demand for packaged food, companies have been revamping and tweaking flavors and recipes to offer consumers healthier options.
General Mills, which makes Cheerios and Chex Mix, unveiled versions of its yogurt brands in sea salt caramel and dark chocolate raspberry flavors. It also refreshed store displays.
Still, sales of cereal and yogurt were flat in the quarter and that of snacks declined.
"We are very focused and frankly not satisfied with the performance on both Nature Valley and Fiber One, and that's really what we need to turn around in the coming year," Chief Executive Officer Jeff Harmening said.
Last month, Harmening noted that Fiber One, which used to be a part of the diet of half the U.S. population, is now only 2%.
The company said it would now focus on new variations of granola and snack bars, a strategy that has worked for yogurts.
"Last year our new product innovation (for Nature Valley) wasn't what we wanted it to be and we look to correct that this year," Harmening said in an interview with Reuters.
Organic net sales, which excludes revenue from acquisitions, fell 2% to $2.34 billion in the quarter for its North America retail segment - its lowest in nearly three years.
For interactive graphic click link: https://tmsnrt.rs/2X7eHYt
Net sales rose 7% to $4.16 billion, but missed the average analyst estimate of $4.24 billion, according to Refinitiv IBES data. The rise was largely fueled by a 38% increase in sales of Blue Buffalo pet foods.
The company bought Blue Buffalo last year to diversify its portfolio and reduce its dependence on snack, cereal and yogurt businesses. It now expects Blue Buffalo's net sales to grow between 8% and 10% in fiscal 2020.
General Mills earned 83 cents per share, excluding one-time items, above the estimate of 77 cents.
(Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli) |
Would LeoVegas AB (publ) (STO:LEO) Be Valuable To Income Investors?
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 LeoVegas AB (publ) (STO:LEO) 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.
LeoVegas pays a 3.4% dividend yield, and has been paying dividends for the past two years. It's certainly an attractive yield, but readers are likely curious about its staying power. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Click the interactive chart for our full dividend analysis
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, LeoVegas paid out 29% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Plus, there is room to increase the payout ratio over time.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. LeoVegas paid out 53% of its cash flow as dividends last year, which is within a reasonable range for the average corporation. 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.
We update our data on LeoVegas every 24 hours, so you can always getour latest analysis of its financial health, here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. The company has been paying a stable dividend for a few years now, but we'd like to see more evidence of consistency over a longer period. During the past two-year period, the first annual payment was €0.094 in 2017, compared to €0.11 last year. Dividends per share have grown at approximately 8.7% per year over this time.
The dividend has been growing at a reasonable rate, which we like. We're conscious though that one of the best ways to detect a multi-decade consistent dividend-payer, is to watch a company pay dividends for 20 years - a distinction LeoVegas has not achieved yet.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see LeoVegas has grown its earnings per share at 57% per annum over the past five years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth.
We'd also point out that LeoVegas issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective.
To summarise, shareholders should always check that LeoVegas's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. LeoVegas's dividend payout ratios are within normal bounds, although we note its cash flow is not as strong as the income statement would suggest. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. Overall we think LeoVegas is an interesting dividend stock, although it could be better.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 LeoVegas 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. |
Spyder Cannabis Celebrates Canada Day Weekend with Launch of New Hemp Energy Drink Line
Vaughan, Ontario--(Newsfile Corp. - June 26, 2019) - Spyder Cannabis Inc. (TSXV: SPDR) ("Spyder Cannabis" or the "Company") is excited to announce that, in celebration of Canada Day, it will launch its new Hemp Energy Drink line over the Canada Day long weekend, on June 29, across its existing Ontario locations, as well as its two brand new accessories stores in Niagara Falls and Pickering, set to open this weekend. Samples will be available at all locations.
As previously disclosed in the Company's press release of June 18, 2019, Spyder Cannabis signed an exclusive agreement with Tetra Natural Health, a subsidiary of Tetra Bio-Pharma (TSXV: TBP) (OTCQB: TBPMF), to distribute the three flavors of its Hemp Energy Drink in cannabis accessory stores, vape stores, and kiosks in Canada and the United States.
"We are thrilled to launch a premium brand, the Hemp Energy Drink, to our customers this Canada Day long weekend, starting June 29th. This is a historic time for the Canadian hemp industry, and we are excited to be at the forefront of the retail and wholesale distribution of innovative new products. Our focus is on providing unique and distinctive quality hemp derived options, specially curated to meet the needs of all Canadians. We are looking forward to sharing our products throughout Canada," stated Daniel Pelchovitz, CEO and President of Spyder.
Figure 1To view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/3742/45892_16ecf44fe4f8b8d6_003full.jpg
About Spyder
Founded in 2014 Spyder is an established chain of three high-end vape stores in Ontario, with stores located in Woodbridge, Scarborough and Burlington. The Spyder brand is defined by its high-quality proprietary line of e-juice, liquids and exclusive retail deals, dispensed in uniquely designed stores creating the optimal customer experience. Spyder is building off this leading retail, distribution and branding eCig and vapes company and expanding into the legal cannabis and hemp derived market. Spyder has developed a scalable retail model with aggressive expansion plan to create a significant retail footprint with targeted and disciplined retail distribution strategy focusing on Canadian retail and U.S. hemp kiosks in high traffic peripheral areas.
About Tetra Natural Health:
Tetra Natural Health Inc. is a subsidiary of Tetra Bio-Pharma Inc. that focuses on identification, development and marketing of hemp or cannabis-based natural health products, or cannabinoids-based products authorized for sale by Health Canada. For more information, visit:www.tetranaturalhealth.com.
About Tetra Bio-Pharma:
Tetra Bio-Pharma (TSXV: TBP) (OTCQB: TBPMF) a biopharmaceutical leader in cannabinoid-based drug discovery and development with a Health Canada approved and FDA reviewed clinical program aimed at bringing novel prescription drugs and treatments to patients and their healthcare providers. Tetra Bio-Pharma has subsidiaries engaged in the development of an advanced and growing pipeline of Bio Pharmaceuticals, Natural Health and Veterinary Products containing cannabis and other medicinal plant-based elements. With patients at the core of its mission, Tetra Bio-Pharma is focused on providing rigorous scientific validation and safety data required for inclusion into the existing bio pharma industry by regulators, physicians and insurance companies. For more information visit:www.tetrabiopharma.comCautionary Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur.
These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made. Any number of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Spyder Cannabis Inc.Dan PelchovitzPresident & Chief Executive OfficerTelephone: (905) 265-8273Email:dan@spydervapes.com
Bullseye CorporateCrystal QuastBullseye Corporatequast@bullseyecorporate.com
Tetra Natural HealthRichard Giguère, CEOTel.: (438) 899-7575 ext. 210rgiguere@tetranaturalhealth.com
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45892 |
Charlotte’s Web Reports 187% Hike in Hemp Acres Planted for 2019
Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF)reported final hemp planting for its 2019 growing season.
Total acres planted for 2019 has been increased to 862, a 187% jump from 300 acres planted in 2018, the company said, noting the move was needed to meet growing demand from consumer and retail channel partners.
The company produced 41,000 lbs., 63,000 lbs. and 675,000 lbs. of dried hemp biomass in 2016, 2017 and 2018, respectively.
“Interest and demand for our products has been exceptional and growing rapidly. Our 2019 planting strategy ensures we will have the required raw materials to deliver on production targets for Charlotte’s Web products through 2020 and into 2021,” Deanie Elsner, the CEO of Charlotte’s Web, stated.
“Our leading CBD hemp varieties under cultivation today are the foundation of our 2020 production plan. Tens of thousands of Americans have come to rely on Charlotte’s Web products daily making it essential that our products are always available, efficacious and consistent day-to-day, bottle-to-bottle, year-to-year,” Elsner noted.
Charlotte’s Web grows more hemp than it needs for the subsequent year to minimize the impact of farming risks and product shortfalls against forecasted rapid market growth. Dried hemp can be stored for years, with even more longevity in its extracted form.
The company cultivates hemp outdoors in various regions across the U.S. to hedge against potential weather risks and other crop related impacts.
Of the 862 acres planted, 166 (19%) are in Colorado, 325 (38%) are in Kentucky, and 371 (43%) are in Oregon. The Colorado farms are operated by the company’s cultivation team while farms in Kentucky and Oregon employ family-owned contract farmers, supporting the important American agricultural economy through hemp farming.
All acres are cultivated using natural farming methods. An active supporter of organic farming, up to 457 acres, or 53% of the total acres planted for 2019 are designated for USDA organic certification, with additional organic expansion planned in subsequent years.
The company grows several hemp varieties, all of which contain high levels of CBD content but only trace THC amounts of less than 0.3%. Hemp varieties with high CBD potency reduce the amount of biomass required for CBD extracts, allowing for responsible farming practices by maximizing the production of cannabinoids, terpenes and other beneficial botanical compounds.
The company offers full quality control beginning with testing of the soils before planting and the water used for irrigation. By the time customers receive their product, they have typically been tested more than 20 times through the cultivation and manufacturing processes.
The postCharlotte’s Web Reports 187% Hike in Hemp Acres Planted for 2019appeared first onMarket Exclusive. |
IHS Markit (INFO) Q2 Earnings Top Estimates
IHS Markit (INFO) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.65 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 9.23%. A quarter ago, it was expected that this financial information services provider would post earnings of $0.57 per share when it actually produced earnings of $0.60, delivering a surprise of 5.26%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
IHS Markit, which belongs to the Zacks Business - Information Services industry, posted revenues of $1.14 billion for the quarter ended May 2019, missing the Zacks Consensus Estimate by 0.03%. This compares to year-ago revenues of $1.01 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
IHS Markit shares have added about 23.5% since the beginning of the year versus the S&P 500's gain of 16.4%.
What's Next for IHS Markit?
While IHS Markit has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for IHS Markit was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.64 on $1.13 billion in revenues for the coming quarter and $2.55 on $4.45 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Business - Information Services is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
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 reportIHS Markit Ltd. (INFO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is LeoVegas AB (publ) (STO:LEO) A Smart Pick For Income Investors?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Is LeoVegas AB (publ) (STO:LEO) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
LeoVegas yields a solid 3.4%, although it has only been paying for two years. A 3.4% yield does look good. Could the short payment history hint at future dividend growth? 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
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. LeoVegas paid out 29% of its profit as dividends, over the trailing twelve month period. 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.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. LeoVegas paid out 53% 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 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 LeoVegas'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 dividend has not fluctuated much, but with a relatively short payment history, we can't be sure this is sustainable across a full market cycle. During the past two-year period, the first annual payment was €0.094 in 2017, compared to €0.11 last year. This works out to be a compound annual growth rate (CAGR) of approximately 8.7% a year over that time.
LeoVegas has been growing its dividend at a decent rate, and the payments have been stable despite the short payment history. This is a positive start.
The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see LeoVegas has been growing its earnings per share at 57% a year over the past 5 years. Earnings per share have rocketed in recent times, and we like that the company is retaining more than half of its earnings to reinvest. However, always remember that very few companies can grow at double digit rates forever.
We'd also point out that LeoVegas issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Firstly, we like that LeoVegas pays out a low fraction of earnings. It pays out a higher percentage of its cashflow, although this is within acceptable bounds. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. LeoVegas has a number of positive attributes, but it falls slightly short of our (admittedly high) standards. Were there evidence of a strong moat or an attractive valuation, it could still be well worth a look.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 LeoVegas analysts we track are forecasting continued growth with ourfreereport on analyst 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. |
Sneaker site StockX raises funds, hires eBay executive
BERLIN (Reuters) - StockX, an online market place which specializes in reselling limited-edition sneakers, has raised $110 million from investors to fund its expansion and poached Scott Cutler from eBay as its new chief executive, it said on Wednesday.
Founded in Detroit in 2016, StockX has grown rapidly to sell more than $1 billion of products a year on its site and is expanding from sneakers into watches, handbags and streetwear, and opening bricks-and-mortar stores, starting in New York.
It said the new funding round, involving investors including DST Global, General Atlantic, GGV Capital, GV and Battery Ventures, valued the company at more than $1 billion.
It will use the investment to expand internationally, particularly in Europe and Asia, add more product categories like collectible toys, and open stores in key markets.
Prior to his role as senior vice president, Americas at eBay, Cutler was president of ticket marketplace StubHub, and an executive vice president at the New York Stock Exchange, where he led tech listings including LinkedIn, Twitter and Alibaba.
He takes over from StockX co-founder Josh Luber, who will continue to be part of the firm's leadership team.
"All we did was copy how the stock market works and apply it to new commodities," Luber told Reuters during a visit to Berlin last week. "The concept of a retail price is antiquated for certain products."
StockX is capitalizing on a trend for brands like Nike and Adidas to release limited numbers of high-end sneakers, which are then resold as collectors' items at much higher prices than in the store.
"We have taken this category from eBay. How do you take other categories, how do you expand it and how do you work with brands to move into the retail sector," Luber said, adding the model works for any products with finite supply.
Sneakers currently account for about three-quarters of sales on the StockX site, with streetwear making up 20 percent.
StockX charges a commission ranging between 9 and 14 percent depending on the category for goods sold on its site and runs authentication centers, to make sure products are not fakes before they are shipped on to buyers.
(Reporting by Emma Thomasson; Editing by Mark Potter) |
Should We Be Delighted With Matson, Inc.'s (NYSE:MATX) ROE Of 14%?
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 Matson, Inc. (NYSE:MATX).
Over the last twelve monthsMatson has recorded a ROE of 14%. That means that for every $1 worth of shareholders' equity, it generated $0.14 in profit.
Check out our latest analysis for Matson
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Matson:
14% = US$107m ÷ US$763m (Based on the trailing twelve months to March 2019.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is the capital paid in by shareholders, plus any retained earnings. You can calculate shareholders' equity by subtracting the company's total liabilities from its 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. The higher the ROE, the more profit the company is making. So, all else equal,investors should like a high ROE. That means it can be interesting to compare the ROE of 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 is clear from the image below, Matson has a better ROE than the average (3.8%) in the Shipping industry.
That is a good sign. We think a high ROE, alone, is usually enough to justify further research into a company. For exampleyou might checkif insiders are buying shares.
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. 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. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
It's worth noting the significant use of debt by Matson, leading to its debt to equity ratio of 1.14. There's no doubt the ROE is respectable, but it's worth keeping in mind that metric is elevated by the use of debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
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 you might want to check this FREEvisualization of analyst forecasts for the company.
Of courseMatson may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have 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. |
Trump on China trade talks: I will impose ‘very substantial’ additional tariffs if no deal is reached
President Donald Trumpon Wednesday vowed to impose additional tariffs on China if a trade deal is not reached.
“When tariffs go on in China we are taking in billions and billions of dollars — we never took in 10 cents — now you have another $325 billion that I haven’t taxed yet — it’s ripe for taxing — for putting tariffs on,” he said during an exclusive interview with FOX Business’Maria Bartiromo.
Trump is expected to meet withChinese President XiJinpingon Saturday to discusstradebetween the world’s two largest economies. The result could have implications for themarketsand the globaleconomy.
“This never happened to China. Now what is happening is people are moving out of China. Companies are moving out of China, by the way, some are coming back to the United States because they don’t want to pay the tariff, etc., etc. But it’s been an incredible thing. Am I happy now? Absolutely. Now I would do additional tariffs by very substantial additional tariffs if that doesn’t work if we don’t make a deal,” he explained.
CLICK HERE TO WATCH THE FULL INTERVIEW WITH PRESIDENT TRUMP
Although it’s “possible” to reach a good deal, Trump said his “plan B” may include a 10 percent tariff on the remaining "$600 billion" worth of goods.
"So we have much more than $300 billion worth of products," he said. "Now what’s going to happen ... all of those companies will move out of China – most of them—and they’ll move to other places like Vietnam and other places that take advantage of us, and we’ll start working on that too ... I don't want to do too many at one time.”
CLICK HERE TO GET THE FOX BUSINESS APP
Trump said China knows “what we have to have” in order to reach an agreement on trade.
“We don’t have intellectual property rights protections, we don’t have the opening of China,” he said. “You know, China’s not open. We’re open, but China’s not open. So, if we don’t have the openings of China, if we don’t have the things that we negotiated, and maybe even more than that.”
“Look, right now we're getting 25 percent on $250 billion of goods -- nobody ever heard of such a thing -- it’s massive amounts of money. Don’t let anyone tell you that we’re paying -- China’s paying for it,” he explained.
Meanwhile, Treasury Secretary Steven Mnuchin toldCNBCon Wednesday that progress on a trade deal was about 90 percent complete before trade talks broke down.
“We were about 90 percent of the way there [with a deal] and I think there’s a path to complete this,” Mnuchin said. “The message we want to hear is that they want to come back to the table and continue because I think there is a good outcome for their economy and the U.S. economy to get balanced trade and to continue to build on this relationship."
Related Articles
• How Much is Michael Phelps Worth?
• Ryan Lochte's Brand Value Sinks Amid Rio Scandal
• Here's How You Get a Body Like An Olympian |
"Avengers: Endgame" Has Already Beaten Avatar's Box Office Record... Sort Of
Almost since itsrecord-setting debut,Avengers: Endgamehas inspired fans and industry watchers alike to wonder whether theDisney(NYSE: DIS)and Marvel Studios offering could overtake the current all-time worldwide box office king -- director James Cameron's 3D epicAvatar.
Cameron's otherworldly adventure, which takes plan on the planet of Pandora, amassed an unsurpassed $2.788 billion in global ticket sales, having scaled the summit nearly a decade ago. The "will they or won't they" discussion has raged in the blogosphere, with fans of Earth's mightiest heroes even taking up the hashtag #BeatAvatar.
For those following along at home, after this past weekend's ticket take was tallied,Endgamesat at $2.75 billion, roughly $37 million behind the reigning champ.
However, with all the hoopla, one very important detail has gotten lost in the shuffle -- the Avengers havealreadydispatchedAvatarlike so many evil henchmen.
Robert Downey Jr. as Iron Man in a scene from Avengers: Endgame. Image source: Disney.
WhenAvatarfinished its initial theatrical run in 2010, the movie had banked just short of $750 million in North American ticket sales and $1.999 billion from international markets, for a total take of $2.749 billion on worldwide box office. So ifEndgameis already at $2.75 billion, why isn't the Marvel epic already the titleholder?
Given its massive success,Avatarwas rereleased and given an extended engagement in theaters. This generated $40 million in additional ticket sales, but also but an asterisk next to the film's results.
In order to beat Avatar's all-time take, Marvel Studio's president Kevin Feige recently revealed that Endgame will be getting arerelease of its own.
In a recent interview with Screen Rant, Marvel Studio chief Kevin Feige revealed thatAvengers: Endgamewould be rereleased on June 28, boasting additional material to coax Marvel fans back to theaters. The updated edition would include an unfinished, deleted scene from the original release, a tribute, and "a few surprises."
The tribute is presumably for Stan Lee, comic book writer and the longtime creative force behind Marvel Comics, who died recently at the age of 95. Feige didn't elaborate on what the "surprises" were, but many are expecting the signature mid-credits and/or post-credits sequences that have become a staple for fans of the Marvel Cinematic Universe (MCU).Avengers: Endgamemarked the first time in 11 years the studio didn't include the much sought-after scenes, as a way of punctuating the end of the 22 film story arc.
Marvel issued apress releaseon Tuesday, saying theaters would hold a Bring Back event beginning Friday, to offer fans a chance to see "the biggest movie of the year" one more time beforeEndgamefinishes it theatrical run. Ticket-buyers will receive an exclusive piece ofAvengersart -- available in select theaters while supplies last. The rerelease will also include a video introduction by director Anthony Russo and a special sneak peek for the upcomingSpider-Man: Far From Home.
While there's a bit of fun in watching a record being shattered, it should be noted that for Disney, this is nothing more than a little sibling rivalry. With its recent $71 billion acquisition of Fox assets in the rearview mirror, the House of Mouse became the proud owner of theAvatarfranchise.
Cameron has fourAvatarsequels planned, and when Disney released its updated movie timetable in May, the company revealed that the upcomingAvatarfilms had been slated for the coveted Christmas week release, for every other year beginning in 2021.
Disney is hoping that Cameron can recapture some of the magic that accompanied the original release ofAvatar, particularly as Marvel enters a new chapter and theStar WarsSkywalker saga comes to a conclusion.
Who knows? If Cameron comes through with another blockbuster, we might soon be back discussing the next installment of Marvel vs.Avatar. In either case, the ultimate winner will be Disney.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
Danny Venaowns shares of Walt Disney and has the following options: long January 2021 $85 calls on Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has adisclosure policy. |
Japanese Yen ETF (FXY) Hits New 52-Week High
For investors seeking momentum,CurrencyShares Japanese Yen TrustFXY is probably on radar now. The fund just hit a 52-week high, and is up about 6.7% from its 52-week low price of $83.54/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
FXY in Focus
FXY appears a great way to play a rise in the yen relative to the U.S. dollar. It tracks the movement of the Japanese yen relative to the U.S. dollar, net of Trust expenses, which are expected to be paid from the interest earned on the deposited Japanese yen. The product has accumulated $217.3 million in its total asset base and has 40 bps in expense ratio (see: all the Currency ETFs here).
Why the Move?
The Japanese currency ETF has been an area to watch lately as investors are flocking to safe havens amid heightened uncertainty and volatility. This is especially true, as the global fundamentals are getting worse with relentless geopolitical tensions and uncertainty over the Fed’s rate cut in the near term as well as U.S. tariffs. In particular, yen is considered a safe haven currency in times of uncertainty.
More Gains Ahead?
The fund has a Zacks Rank #3 (Hold) and a positive weighted alpha of 4.10, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>
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 reportInvesco CurrencyShares Japanese Yen Trust (FXY): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
What You Should Know About Cub Energy Inc.'s (CVE:KUB) Financial Strength
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 Cub Energy Inc. (CVE:KUB) with its market cap of CA$24m, 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 essential, since poor capital management may bring about 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. Nevertheless, this is just a partial view of the stock, and I suggest youdig deeper yourself into KUB here.
KUB's debt level has been constant at around US$7.5m over the previous year which accounts for long term debt. At this constant level of debt, KUB currently has US$7.0m remaining in cash and short-term investments to keep the business going. Moreover, KUB has produced cash from operations of US$887k during the same period of time, leading to an operating cash to total debt ratio of 12%, indicating that KUB’s debt is not covered by operating cash.
Looking at KUB’s US$9.9m in current liabilities, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.01x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Oil and Gas companies, this is a reasonable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
With a debt-to-equity ratio of 75%, KUB can be considered as an above-average leveraged company. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies.
KUB’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. Since there is also no concerns around KUB'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 KUB has been performing in the past. I suggest you continue to research Cub Energy to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for KUB’s future growth? Take a look at ourfree research report of analyst consensusfor KUB’s outlook.
2. Historical Performance: What has KUB's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is Cub Energy Inc. (CVE:KUB) 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!
Cub Energy Inc. (CVE:KUB) is a small-cap stock with a market capitalization of CA$24m. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Assessing first and foremost the financial health is vital, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. The following basic checks can help you get a picture of the company's balance sheet strength. Nevertheless, this is not a comprehensive overview, so I suggest youdig deeper yourself into KUB here.
KUB's debt level has been constant at around US$7.5m over the previous year including long-term debt. At this current level of debt, the current cash and short-term investment levels stands at US$7.0m to keep the business going. Additionally, KUB has produced cash from operations of US$887k over the same time period, resulting in an operating cash to total debt ratio of 12%, indicating that KUB’s operating cash is less than its debt.
At the current liabilities level of US$9.9m, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.01x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Oil and Gas companies, this is a reasonable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
KUB is a relatively highly levered company with a debt-to-equity of 75%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses.
Although KUB’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 KUB'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 KUB has been performing in the past. I suggest you continue to research Cub Energy to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for KUB’s future growth? Take a look at ourfree research report of analyst consensusfor KUB’s outlook.
2. Historical Performance: What has KUB's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is Social Security Really Disappearing?
There's talk of Social Securitydisappearing completely, and if that were to happen, it would spell disaster for the millions of retirees who count on those benefits at present and the millions of workers who are no doubt planning to fall back on those benefits once their careers come to a close. If you're worried about Social Security's impending demise, fear not: Though the program is facing some financial challenges, it's not in danger of disappearing completely. Still, it certainly pays to have a backup plan for your retirement so that you're not left short on cash if the picture of what Social Security looks like worsens.
In short, the program is facing a funding shortfall that might force it toreduce scheduled benefitsas early as 2035. This isn't a given, but because the program expects to owe more money in benefits than it'll take in revenue-wise, and because the program's cash reserves, or trust funds, are expected to run dry within 16 years, there may come a point when benefits get slashed by 20%, as per recent projections. Again, that percentage could change, for better or worse, as we creep closer to 2035.
IMAGE SOURCE: GETTY IMAGES.
Either way, there's a real chance Social Security won't provide the amount of income you expect it to during retirement. Rather than let that destroy your plans for your golden years, take matters into your own hands by saving enough money to pay for the future lifestyle you desire.
If you're relatively young, and have a few decades left in the workforce, the good news is that you can easily work around a potential reduction in Social Security benefits by saving a nice chunk of cash on your own. The best part? You don't need to part with half your income to amass wealth (though the more you're able to save, the better). What youdoneed to do, however, is commit to saving consistently and invest your savings wisely to fuel your money's growth. For the most part, this means going heavy on stocks, because if you have a 10-year savings window or more, that's plenty of time to ride out the market's ups and downs and come out ahead.
Now, let's assume you have 20 years until you're planning to retire. Here's the amount of savings you might end up with if you invest heavily in stocks:
[{"$250": "$500", "$123,000": "$246,000"}, {"$250": "$750", "$123,000": "$369,000"}, {"$250": "$1,000", "$123,000": "$492,000"}]
*Assumes a 7% average annual return.Table and calculations by author.
The 7% return above is a couple of percentage points below the stock market's average, so it's a reasonable assumption for this sort of time frame.
What if you don't have 20 years until retirement? Delay that milestone as long as you can. Doing so will give you an opportunity to boost your nest egg, all the while leaving your existing savings alone.
It's too soon to tell what the future will hold for Social Security, but rest assured that it won't disappear completely in your lifetime. Still, it certainly doesn't hurt to plan for a reduction in benefits and to save enough to make up for it and then some.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
The Motley Fool has adisclosure policy. |
Is Microchip Technology Incorporated's (NASDAQ:MCHP) 6.7% ROE Worse 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 Microchip Technology Incorporated (NASDAQ:MCHP), by way of a worked example.
Our data showsMicrochip Technology has a return on equity of 6.7%for the last year. That means that for every $1 worth of shareholders' equity, it generated $0.067 in profit.
See our latest analysis for Microchip Technology
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Microchip Technology:
6.7% = US$356m ÷ US$5.3b (Based on the trailing twelve months to March 2019.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is the capital paid in by shareholders, plus any retained earnings. 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 equal,investors should like a high ROE. Clearly, then, one can use ROE to compare 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. 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, Microchip Technology has a lower ROE than the average (14%) in the Semiconductor industry.
That certainly isn't ideal. It is better when the ROE is above industry average, but a low one doesn't necessarily mean the business is overpriced. Still,shareholders might want to check if insiders have been selling.
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 two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Microchip Technology does use a significant amount of debt to increase returns. It has a debt to equity ratio of 1.95. Its ROE isn't too bad, but it would probably be very disappointing if the company had to stop using debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt.
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 you might want to take a peek at thisdata-rich interactive graph of forecasts for the company.
But note:Microchip Technology 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. |
Are Kelt Exploration Ltd. (TSE:KEL) Investors Paying Above The Intrinsic Value?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Kelt Exploration Ltd. (TSE:KEL) as an investment opportunity by taking the foreast future cash flows of the company and discounting them back to today's value. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
See our latest analysis for Kelt Exploration
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF (CA$, Millions)", "2019": "CA$-29.00", "2020": "CA$-23.00", "2021": "CA$44.00", "2022": "CA$48.00", "2023": "CA$51.20", "2024": "CA$53.90", "2025": "CA$56.19", "2026": "CA$58.20", "2027": "CA$59.99", "2028": "CA$61.64"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x3", "2021": "Analyst x1", "2022": "Analyst x1", "2023": "Est @ 6.68%", "2024": "Est @ 5.26%", "2025": "Est @ 4.26%", "2026": "Est @ 3.57%", "2027": "Est @ 3.08%", "2028": "Est @ 2.74%"}, {"": "Present Value (CA$, Millions) Discounted @ 8.55%", "2019": "CA$-26.72", "2020": "CA$-19.52", "2021": "CA$34.40", "2022": "CA$34.57", "2023": "CA$33.97", "2024": "CA$32.94", "2025": "CA$31.64", "2026": "CA$30.18", "2027": "CA$28.66", "2028": "CA$27.13"}]
Present Value of 10-year Cash Flow (PVCF)= CA$207.26m
"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 1.9%. We discount the terminal cash flows to today's value at a cost of equity of 8.6%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = CA$62m × (1 + 1.9%) ÷ (8.6% – 1.9%) = CA$951m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CA$CA$951m ÷ ( 1 + 8.6%)10= CA$418.69m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$625.95m. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of CA$3.4. Relative to the current share price of CA$4.13, the company appears slightly overvalued at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Kelt Exploration 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 8.6%, which is based on a levered beta of 1.108. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Kelt Exploration, I've compiled three additional aspects you should further research:
1. Financial Health: Does KEL 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 KEL'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 KEL? 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 TSE 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. |
Tesco Working on Cashierless Stores as Competition With Amazon Heats Up
(Bloomberg) -- Tesco Plc has turned to an Israeli startup for help as it looks to become the next major food retailer to remove cashiers from some of its stores.
The U.K.’s largest grocery chain is working with Trigo Vision Ltd., which has developed a system of cameras and software that allows retailers to automatically charge customers, according to three people familiar with the matter.
Tesco and other grocers are racing Amazon.com Inc., which could open as many as 3,000 checkout-free Amazon Go stores in the U.S. and is expanding its partnership with the U.K.’s Wm Morrison Supermarkets Plc. Scrapping cashiers could also help Tesco slim down its workforce over time and improve profit margins as it battles German discount chains Aldi and Lidl.
At a capital markets day earlier this month, Tesco said it’s looking at a range of new technologies, also including robot delivery vehicles. Checkout-free stores are “one thing we’re testing, but it’s not something we’re ready to roll out yet,” a spokeswoman said, declining to comment on any business partners for the technology.
Trigo, which has raised $7 million from Vertex Ventures and Hetz Ventures, has also partnered with Israel’s largest supermarket chain, Shufersal Ltd. The companies are working on the pilot branch in Tel Aviv, with the goal of rolling out the product in about a year.
Other startups, including Portugal’s Sensei, are competing with Trigo to provide grocers with checkout-free technology. Tesco has previously trialed an app that allowed customers to scan and pay for groceries using their smartphone. The Scan Pay Go app was limited to staff at Tesco’s headquarters last year.
To contact the reporter on this story: Yaacov Benmeleh in Tel Aviv at ybenmeleh@bloomberg.net
To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, Giles Turner
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Dividend Hunters Should Consider Métropole Télévision S.A. (EPA:MMT), With A 6.1% Yield
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Métropole Télévision S.A. (EPA:MMT) is a true Dividend Rock Star. Its yield of 6.1% makes it one of the market's top dividend payer. In the past ten years, Métropole Télévision has also grown its dividend from €0.85 to €1. Below, I have outlined more attractive dividend aspects for Métropole Télévision for income investors who may be interested in new dividend stocks for their portfolio.
Check out our latest analysis for Métropole Télévision
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 consistently pays out dividend without missing a payment or significantly cutting payout
• 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
Métropole Télévision currently yields 6.1%, which is high for Media stocks. But the real reason Métropole Télévision stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you're investor who wants a robust cash inflow from your portfolio over a long period of time.
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. MMT has increased its DPS from €0.85 to €1 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 MMT a true dividend rockstar.
The current trailing twelve-month payout ratio for the stock is 72%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 73% which, assuming the share price stays the same, leads to a dividend yield of around 6.2%. In addition to this, EPS should increase to €1.4.
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.
With Métropole Télévision producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a top dividend generator moving forward. However, given this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I've put together three important factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for MMT’s future growth? Take a look at ourfree research report of analyst consensusfor MMT’s outlook.
2. Valuation: What is MMT 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 MMT 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. |
FSC Korea Approves ICONLOOP's Blockchain-based Identity Service "my-ID" Into Its Fintech Sandbox
SEOUL / ACCESSWIRE / June 26, 2019 /ICONLOOP, the operator of Seoul's standard blockchain platform and one of the largest blockchain enterprises in South Korea, has introduced its digital ID service that can be utilized for untact (non-face-to-face verification) openings of banking accounts. The Financial Services Commission (FSC), South Korean government's top financial regulator, has announced the inclusion of ICONLOOP's 'my-ID' service into the 'Innovative Financial Services and Regulations Sandbox' created under the Financial Innovation Support Special Law.
Jonghyup Kim, CEO of ICONLOOP, stated,"The designation of my-ID as an Innovative Financial Service will be a monumental turning point in the growth of Korea's blockchain industry."He also said,"Although it has been somewhat difficult to find a meaningful use of blockchain technology in everyday life so far, this will be an opportunity to prove and verify the usefulness of blockchain technology. I hope that this marks not only the expansion of blockchain technology but also the creation of an overall digital identity ecosphere."
As 18 different companies, including manufacturers, banks, stock/securities firms, insurance companies, and e-commerce companies, have expressed their participation in the Innovative Financial Service project, the sandbox inclusion is expected to act as a stimulus towards mass adoption.
my-ID
my-ID, which was designated as an Innovative Financial Service, is a digital identity authentication service built on blockchain technology. It allows for ID authentication information (ID, monetary transfers, verification through mobile phones, etc.) to be saved to the user's mobile phone so that users can reuse said information to open further accounts or access other services that requires identification. This drastically simplifies the cumbersome processes such as taking pictures of one's ID over and over again and will allow consumers to sign up for various financial products in an easier manner.
Under the current process, consumers cannot submit previously saved images of their ID but have to take a picture of their ID in real time. Through my-ID, the identification authentication information will be saved after an initial, one-time authentication process at a financial institution. This information is prevented from being tampered with through a blockchain, and future usage of the saved information requires biometric authentication.
The inclusion of my-ID into the 'Innovative Financial Services Sandbox' is likely due to not only the ease it provides for account openings, but also its tremendous potential for application in other areas. An ID that has been approved by financial institutions to be fit for financial activities is widely seen as having passed the most stringent authentication process. Therefore, it is expected that the said ID can and will be utilized within the digital ecosphere as a whole. For example, it could be used to authenticate driver's licenses for car-sharing services or a method of logging in to an online shopping mall. Essentially, it will solve the problems that we have all faced in the past due to the fact that there was no one unified method of ID authentication that everyone trusted.
In line with the global trend, my-ID is expected to be configured in a 'self-sovereign' manner, eliminating the risk of personal information leaks. The self-sovereign manner refers to a method where one keeps all of his/her information until it needs to be shared with a specific party, as opposed to consigning his/her information to a third authenticating party. This eliminates the risk of a third party holding large quantities of personal information and accidentally leaking information, as well as making it impossible for parties to trade other peoples' private information for monetary returns. This, in effect, returns the ownership of personal information to the actual owners.
* Innovative Financial Services and Regulations Sandbox
It is an exemption system in which innovative financial services are designated and exempted from restrictions on licensing and sales activities. As children play freely in sand playgrounds, the phrase "Regulations Sandbox" is used for the purpose of unlocking regulations.
About ICONLOOP
ICONLOOP, Inc. (formerly theloop) is a tech company, based in Seoul, South Korea, specialized in the implementation and design of blockchain technology. ICONLOOP targets both scalability and security to maximize the utility of blockchain technology. Based on a proprietary blockchain engine, loopchain, ICONLOOP leads diverse innovations in financial transactions, and digital currency.
Dan Edelsteinpr@marketacross.com+972-545-464-238
SOURCE:ICONLOOP
View source version on accesswire.com:https://www.accesswire.com/549948/FSC-Korea-Approves-ICONLOOPs-Blockchain-based-Identity-Service-my-ID-Into-Its-Fintech-Sandbox |
Boris Johnson's team deny he only has one pair of socks
Boris Johnson's team have insisted he has more than one pair of the same socks (AP) As Boris Johnson continues his fight to become the next Tory leader , focus has turned to the most pressing issue of the day - his socks. The favourite to be the next Prime Minister has been appearing at various interviews and campaign events over the past few days and eagle-eyed photographers have noticed something very familiar each time. Mr Johnsons snazzy choice of socks seems to have been the same for three out of four days - leading his team to insist he wasnt wearing the same pair every time. Mr Johnson has been pictured wearing similar socks over several days (PA) One of his aides said that the former London Mayor owns "multiple pairs of similar patterned socks - and puts a clean pair on each day. Mr Johnson will be hoping to focus attention away from both his socks and personal life , following allegations he got into a heated argument with girlfriend Carrie Symonds at the weekend. Attempting to get back on track, he stepped up pressure on leadership rival Jeremy Hunt over his refusal to commit to taking the UK out of the European Union on October 31, with or without a deal. Read more from Yahoo News UK: Boy, 12, arrested on suspicion of homophobic assault in Liverpool UK population hits 66.4 million as growth rate stalls More than 5,000 turtles seized in luggage at Malaysian airport Mr Hunt has called the date a "fake deadline" and said he would be prepared to extend it if a deal with the EU is in reach, but Mr Johnson has made a "do or die" commitment to make sure Brexit is delivered by the end of October. One of Mr Johnson's most senior supporters, former leadership rival Dominic Raab, suggested he could legally ignore the will of Parliament to deliver his pledge to leave by October 31. Former Brexit secretary Mr Raab said a Commons motion passed by MPs opposed to a no-deal Brexit would have "zero legal effect. Mr Johnson is facing a fight to become Tory leader from Jeremy Hunt (PA) He suggested Mr Hunt's willingness to seek an extension could open the door to a second referendum, telling BBC Radio 4s Today programme: "This is the question for Jeremy Hunt, if he thinks October is a fake deadline... how long will this paralysis go on for and what conditions would you accept for an extension? Story continues Mr Johnson has argued that a provision under the General Agreement on Tariffs and Trade - known as Gatt 24 - could be used to avoid tariffs under World Trade Organisation rules for up to 10 years. The timetable for the Tory leadership contest (PA) But Dr Fox, a Brexiteer who is backing Mr Hunt for the Tory leadership, said that would require the agreement of the EU, which Brussels has ruled out. He said it was essential that the public debate on the issue was conducted "on the basis of fact rather than supposition. Mr Johnson and Mr Hunt will face questions from the public in a digital hustings on Wednesday evening. |
Investors Who Bought Karmin Exploration (CVE:KAR) Shares Three Years Ago Are Now Up 162%
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Karmin Exploration Inc.(CVE:KAR) shareholders might be concerned after seeing the share price drop 13% in the last quarter. In contrast, the return over three years has been impressive. Indeed, the share price is up a very strong 162% in that time. So the recent fall in the share price should be viewed in that context. Only time will tell if there is still too much optimism currently reflected in the share price.
Check out our latest analysis for Karmin Exploration
Karmin Exploration didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. For example, investors may be hoping that Karmin Exploration finds some valuable resources, before it runs out of money.
We think companies that have neither significant revenues nor profits are pretty high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some Karmin Exploration investors have already had a taste of the sweet taste stocks like this can leave in the mouth, as they gain popularity and attract speculative capital.
Our data indicates that Karmin Exploration had CA$2,511,142 more in total liabilities than it had cash, when it last reported in January 2019. That puts it in the highest risk category, according to our analysis. So we're surprised to see the stock up 38% per year, over 3 years, but we're happy for holders. It's clear more than a few people believe in the potential. The image below shows how Karmin Exploration's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. Given that situation, many of the best investors like to check if insiders have been buying shares. It's often positive if so, assuming the buying is sustained and meaningful. Luckily we are in a position to provide you with thisfreechart of insider buying (and selling).
It's good to see that Karmin Exploration has rewarded shareholders with a total shareholder return of 23% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 20% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before spending more time on Karmin Explorationit might be wise to click here to see if insiders have been buying or selling shares.
Of courseKarmin Exploration may not be the best stock to buy. So you may wish to see thisfreecollection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
No breakthrough in Swiss-EU battle of the bourses
By Francesco Guarascio and Michael Shields
BRUSSELS/ZURICH (Reuters) - The European Commission and Switzerland both refused to blink on Wednesday in a standoff over a stalled partnership treaty that threatens to trigger stock trading curbs across Europe from Monday.
Barring an improbable last-minute breakthrough, EU-based banks and brokers will be prevented from trading shares directly on Swiss bourses from July 1. They usually generate more than half the turnover on Swiss stock markets.
The Swiss have vowed to retaliate with a decree forcing all Swiss shares to be traded on domestic exchanges by banning EU bourses from hosting Swiss equities trading.
In Brussels, the Commission said it has had no contact with Switzerland in the past few days on avoiding the expiration at the end of this week of the regime which allows Swiss stock exchanges to access the European Union market.
"There have not been any contact," the EU executive's spokeswoman told a news conference. She said there was no update from last week's meeting of the EU Commission that refrained from proposing an extension to the so-called equivalence regime.
Under EU rules, the EU executive had to decide by June 21 on whether to propose an extension of the equivalence regime. It did not make any proposal by that deadline. As a consequence the preferential regime will automatically expire on June 30.
In Bern, a government spokesman said the cabinet had not discussed the Europe dossier at its weekly meeting.
"If (stock market regulation) equivalence is not given then Plan B will be activated -- protective measures for the Swiss exchanges -- and that will simply be activated at the end of this month," he told reporters after the meeting.
Brussels linked the extension to progress on a general partnership treaty, which was agreed in November after years of negotiations but has not yet been endorsed by Bern because of fears over its impact on Swiss labour laws and other issues.
Last week the commission said there was no progress on the partnership treaty. The spokeswoman repeated on Wednesday that the situation had not changed.
She added, however, that Brussels remained open to finalise the overall partnership treaty with Bern by the end of October, when the mandate of the current commission ends.
(Editing by Philip Blenkinsop and Alexander Smith) |
'Future is Here' Declares CEO as Binance Transfers $1.2 Billion For Under 2 Cents
On June 26, about $1.2 billion in binance coin (BNB) has been transferred in 1.1 seconds with a $0.015 fee on the binance chain, reveals datapublishedon WhaleAlert, a platform tracking significant transactions.
Earlier today, CEO of majorcryptocurrency exchangeBinace,Changpeng Zhao,warnedthat big transactions should be expected. He explained that the exchange intended to split its BNBcold walletin multiple addresses. After the transaction took place, Zhaocitedsome data about its cost and speed:
“This transaction: cost $0.015 USD in fees, took 1.1 seconds, and $1.2 BILLION in value transferred. The future is here.”
The exact amount of binance coins moved is 32,888,888. As a Twitter userpointed out, 8 is a number like no other inChinesenumerology, to citeWikipedia: “the number 8 is viewed as such an auspicious number that even being assigned a number with several eights is considered very lucky.” Zhao answeredexplaininga curious strategy internal to his company:
“It sort of signals it's not ahack,hackerswill drain a wallet and not go for a lucky number.”
Binance also recentlymoved9,001 bitcoin (BTC) to back its BTC-backed token on binance chain.
As Cointelegraphreportedearlier this week, trading pairs for USDSB have been listed on Binance Chain-baseddecentralized exchangeBinance DEX.
• US Residents Will Lose Access to Many Altcoins on Binance Starting in September
• Binance Announces Bitcoin-Pegged Token on Binance Chain
• Binance to Stop Serving US Traders Following Announcement of US-Dedicated Platform
• Oxfam Trials Aid Distribution With DAI, Future Use 'Highly Likely' |
Is Now The Time To Look At Buying Monobank ASA (OB:MONO-ME)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Monobank ASA (OB:MONO-ME), operating in the financial services industry based in Norway, saw significant share price movement during recent months on the OB, rising to highs of NOK1.9 and falling to the lows of NOK1.2. 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 Monobank's current trading price of NOK1.2 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 Monobank’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Monobank
According to my valuation model, Monobank seems to be fairly priced at around 10.93% above my intrinsic value, which means if you buy Monobank today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is NOK1.08, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Monobank’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Monobank’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
Are you a shareholder?It seems like the market has already priced in MONO-ME’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor?If you’ve been keeping tabs on MONO-ME, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Monobank. You can find everything you need to know about Monobank inthe latest infographic research report. If you are no longer interested in Monobank, 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. |
Canopy Growth (CGC) Continues to Struggle to Find Its Identity
After a somewhat disappointing earnings report and the accompanying commentary from management, it's apparent to me that Canopy Growth (CGC) is struggling to find its corporate identity and a consistent business model.
It surprisingly generated less revenue from recreational and Canadian medical cannabis in the quarter, while at the same time delivered $34 million in other revenue; that tied into diversification of its revenue streams, one of the most positive parts of its performance in the quarter.
Taking into account the rapidly changing cannabis industry and Canopy considering itself primarily a recreational pot producer, it's apparent the company is struggling to find its identity in a market that isn't going to favor those with heavy exposure to recreational pot because of that segment descending rapidly into a commodity.
Including oils, edibles and infused drinks, it's still going to be hard to differentiate from competitors, even though they will produce wider margins.
Earnings highlights
In its recently released earnings report, Canopy reported fourth quarter revenue of C$94.1 million, a slight beat of C$0.41M. That was up from the C$83 million in revenue generated in the prior quarter.
Some changes in revenue are worthy of note. First, sales from recreational pot dropped sequentially from C$71.6 million to C$68.9 million.
Net losses in the quarter were huge, ending down C$323.4 million, or 98 cents a share, from a loss of C$54.4 million year-over-year. Some of that was a paper loss of C$130 million in relationship to accounting for the increase in its share price and its convertible debt. Even so, it still has C$174.5 million operational losses, far more than its peers.
For the year, net revenue jumped to C$226.3 million, up 191 percent. Breaking it down, C$140.5 million of that came from recreational pot, and C$78.9 million from medical cannabis, up 6 percent year-over-year. Canadian medical revenue ended the year at C$68.8 million, down from C$70.6 million from fiscal 2018.
Of importance was Canadian medical revenue in the reporting period dropped to C$11.6 million, a hefty decline from C$19.5 million in the fourth quarter of fiscal 2018. The company attributed that to transferring some medical products to its recreational unit.
Internationally, medical revenue climbed to C$10.1 million for all of fiscal 2019, up 173 percent from full-year 2018. The main catalyst there was the German market, followed by the Czech and Polish markets.
Going forward its Other sales should become a larger percentage of overall revenue, as evidenced by the acquisition of Storz & Bickel in the third quarter. That helped push Other revenue to C$34 million for the fiscal year, an average of a little over C$2.8 million per month. That should be included in performance models in the future.
The core business problem and capital allocation
In my view one of the major problems Canopy Growth has is it must determine what its core business actually is. It started off as a recreational pot company serving the Canadian market, yet having branched off into just about every other area of the cannabis sector, it hasn't been very effective in markets outside of Canada.
It's obvious that Canopy will have to transition out of recreational pot being its primary business, as it won't be too long before it becomes a commodity product. That means competing primarily on price, which isn't a viable or sustainable long-term strategy.
As the company is attempting to make the adjustments needed to change it product mix going forward, it appears it hasn't decided yet what it core business is. That's crucial to the company because the priority associated with the allocation of capital is dependent on knowing what the core business is, and making operational decisions in alignment with that.
For example, in the last quarter Aurora Cannabis could have sold more recreational pot, but it stated it held back some of its inventory to ensure it would have enough to service its medical segment. That wasn't a difficult decision because Aurora has clearly stated its core business is medical pot.
With Canopy not seemingly in the process of determining what its core business is, it has brought about some problems in major international markets, especially Germany.
Outside of the U.S., at this time Germany is the major market to compete in, and Canopy has struggled to make it work. The company said in its earnings report that it didn't have enough of the product Germany required to that market.
Also in regard to Germany, there were inventory storage capacity restraints that will limit the future exports to the market as well. Didn't the company think this through before going into the market? It should have been very obvious.
The point is, I believe this is partially because the company is not fully focused on any one segment because of its lack of clarity concerning its core. This lack of clarity I believe comes from the understanding it has to make the transition from recreational pot to other segments in order to be profitable over the long term, or even survive. This is something money alone can't buy.
Another related issue in my opinion is the company having so much underutilized capacity. Since it keeps mentioning its cash infusion from Constellation Brands as a competitive advantage, how hard can it be to allocate a little capital to growing more pot in its existing facilities?
These types of things suggest to me management is distracted, and again, I think much of that distraction is coming from not knowing or defining what its core business is, and making decisions and allocating capital in alignment with that.
Conclusion
The issue at hand isn't that Canopy Growth is trying to compete in various segments of the cannabis market, all cannabis companies that will grow and survive will have to do that. The issue is the company appears to be disjointed because it isn't working from a defined core business base, and making decisions based upon that.
It has said its goal is to primarily bring its business operations to a high level in Canada and then scale it out to other markets. The problem is that's not a core business, that's a strategy.
The market needs to know exactly what Canopy Growth is in order to be able to understand better how it's going to perform in the future. That will determine allocation of capital how and why the company will prioritize its decisions.
To read more on the nitty gritty of what’s going on in the rising cannabis industry,click here.
Read more on CGC:
• Canopy Growth: Buy the Dip or Pump the Brakes?
• Canopy: Recent Licence from Health Canada Ain’t Going to Help the Stock
• Top Cannabis Stocks Under Fire: What’s The Stock Market’s Message?
• Canopy Growth (CGC): The Emperor Isn’t Wearing Any Clothes
• Is 33% Upside Good Enough to Risk Buying Fitbit (FIT) Stock? Deutsche Bank Doesn't Think So
• Deutsche Bank Remains Sidelined on AMD Stock; Here's Why
• Antitrust Investigation Is Not a Major Threat to Alphabet (GOOGL) Stock, Says Top Analyst
• Tesla's (TSLA) Gigafactory Is Impressive, But Its Stock Isn't, Says RBC Capital |
Watch Dr. Pimple Popper Remove a Huge Pilar Cyst on a Patient's Eyelid
From Men's Health • In a new Instagram video, Dr. Pimple Popper removes a pilar cyst from a patient's eyelid. • Pilar cysts usually form around hair follicles and are filled with keratin. • They're also common, affecting up to one in ten people, and usually benign. Dr. Pimple Popper's latest procedure is hard to watch—and that's especially true if you happen to be the patient. In a new Instagram video, Dr. Pimple Popper —aka, dermatologist and TLC host Dr. Sandra Lee, MD—extracts a cyst from just above a patient's eyelid. "Don't blink or you'll miss this!" she jokes in the post's caption. As one commenter—and apparently longtime fan—responded, "This is the first time I’ve watched one of her videos and yelled through it. I guess my line is drawn at eyelids." View this post on Instagram Don’t #blink or you’ll miss this Pilar Cyst on the Eyelid! 💥😳💥 #cyst #eyeswideopen #drpimplepopper A post shared by Sandra Lee, MD, FAAD, FAACS (@drpimplepopper) on Jun 25, 2019 at 3:49pm PDT Thankfully for the woman being treated, Dr. Lee's line is not drawn at pilar cysts, sometimes called wents, which are surprisingly common—affecting up to 10 percent of the population, according to Medical News Today . A pilar cyst on the eyelid, however, is more of a rarity—in most cases, pilar cysts form around hair follicles on the scalp and fill up with keratin, a type of protein found in hair, skin, and nails. Thankfully, they tend to be benign and pose no real risks to the patient, aside from being somewhat unsightly. In most cases, they're treated just as smoothly as Dr. Lee does in the video above. Easy as it looks, however, it's better to leave the treatment in the hands of a professional than try pinching them on your own. You Might Also Like This Workout Torches Fat in Under 10 Minutes How to Cool Down After Your Hardest Workouts What’s the Deal With Intermittent Fasting for Weight Loss? |
Does Izotropic's (CNSX:IZO) Share Price Gain of 12% Match Its Business Performance?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Izotropic Corporation(CNSX:IZO) shareholders might be concerned after seeing the share price drop 12% in the last quarter. But that doesn't change the reality that over twelve months the stock has done really well. After all, the share price is up a market-beating 12% in that time.
Check out our latest analysis for Izotropic
Izotropic hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. It seems likely some shareholders believe that Izotropic will significantly advance the business plan before too long.
We think companies that have neither significant revenues nor profits are pretty high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt.
When it reported in January 2019 Izotropic had minimal cash in excess of all liabilities consider its expenditure: just CA$341k to be specific. So if it has not already moved to replenish reserves, we think the near-term chances of a capital raising event are pretty high. Given how low on cash the it got, investors must really like its potential for the share price to be up 12% in the last year. You can click on the image below to see (in greater detail) how Izotropic's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. However you can take a look at whether insiders have been buying up shares. If they are buying a significant amount of shares, that's certainly a good thing. You canclick here to see if there are insiders buying.
Izotropic shareholders should be happy with thetotalgain of 12% over the last twelve months. Unfortunately the share price is down 12% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Ingevity (NGVT) Up 20% in a Year: What's Driving the Stock?
Shares ofIngevity CorporationNGVT have gained around 20% over a year. The company has also outpaced its industry’s rise of roughly 8% over the same time frame.Ingevity, a Zacks Rank #3 (Hold) stock, has a market cap of roughly $4 billion and average volume of shares traded in the last three months was around 255.2K. The company has an expected long-term earnings per share growth rate of 12%, above the industry average of 11.4%.
Let’s take a look into the factors that are driving this producer of specialty chemicals and activated carbon materials.What's Going in NGVT’s Favor?Sustained earnings outperformance, upbeat outlook, strong execution and organic and inorganic initiatives have contributed to the growth story of Ingevity.The company has an impressive earnings surprise history, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, the company delivered a positive average earnings surprise of 16.5%.Ingevity, last month, reaffirmed its sales guidance of between $1.30 billion and $1.36 billion for 2019. It also backed its adjusted EBITDA guidance for the year in the band of $390-$410 million.The Zacks Consensus Estimate for earnings for Ingevity for 2019 is currently pegged at $4.79 per share, reflecting an expected year-over-year growth of 16%. Earnings are also expected to register a 21.8% growth in 2020.Ingevity is gaining from strength in oilfield business, growth in activated carbon demand and focus on high margin application areas. The acquisition of the Capa caprolactone business is also expected to contribute to the growth of the company’s revenues and earnings in 2019.The Capa caprolactone buyout and sales growth in oilfield applications boosted revenues in the company’s Performance Chemicals division in the first quarter. The company is working to drive margins and profitability in this unit and integrate the acquired engineered polymers product line.Ingevity is also benefiting from its buyout of Georgia-Pacific’s pine chemicals business. The acquisition is contributing to strong growth in sales of oilfield technology products in the Performance Chemicals division.Sustained adoption of the company’s solutions geared to meet the U.S. EPA Tier 3 and California LEV III emission regulations is also contributing to the growth in the Performance Materials segment.Ingevity is poised to benefit from an expected rise in activated carbon demand on the back of the adoption of China’s new gasoline emissions standards (the China 6 national standard). The company is expected to gain strong foothold as China gradually shifts to new standards.
Ingevity Corporation Price and Consensus
Ingevity Corporation price-consensus-chart | Ingevity Corporation Quote
Stocks Worth a LookBetter-ranked stocks worth considering in the basic materials space include Materion Corporation MTRN, Flexible Solutions International Inc FSI and Innospec Inc. IOSP.Materion has an expected earnings growth rate of 27.3% for the current year and carries a Zacks Rank #1 (Strong Buy). The company’s shares have gained around 22% over the past year. You can seethe complete list of today’s Zacks #1 Rank stocks here.Flexible Solutions has an expected earnings growth rate of 342.9% for the current fiscal year and carries a Zacks Rank #1. Its shares have surged around 144% in the past year.Innospec has an expected earnings growth rate of 6.6% for the current year and carries a Zacks Rank #2 (Buy). Its shares have gained roughly 9% in the past year.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 reportInnospec Inc. (IOSP) : Free Stock Analysis ReportIngevity Corporation (NGVT) : Free Stock Analysis ReportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Don't Sell Interregional Distribution Grid Company of Urals, Joint Stock Company (MCX:MRKU) Before You Read This
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll look at Interregional Distribution Grid Company of Urals, Joint Stock Company's (MCX:MRKU) P/E ratio and reflect on what it tells us about the company's share price. Based on the last twelve months,Interregional Distribution Grid Company of Urals's P/E ratio is 12.27. In other words, at today's prices, investors are paying RUB12.27 for every RUB1 in prior year profit.
See our latest analysis for Interregional Distribution Grid Company of Urals
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Interregional Distribution Grid Company of Urals:
P/E of 12.27 = RUB0.18 ÷ RUB0.014 (Based on the year to March 2019.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future.
If earnings fall then in the future the 'E' will be lower. That means even if the current P/E is low, it will increase over time if the share price stays flat. Then, a higher P/E might scare off shareholders, pushing the share price down.
Interregional Distribution Grid Company of Urals saw earnings per share decrease by 65% last year. And it has shrunk its earnings per share by 12% per year over the last three years. This could justify a low P/E.
The P/E ratio indicates whether the market has higher or lower expectations of a company. As you can see below, Interregional Distribution Grid Company of Urals has a higher P/E than the average company (7.1) in the electric utilities industry.
That means that the market expects Interregional Distribution Grid Company of Urals will outperform other companies in its industry. Shareholders are clearly optimistic, but the future is always uncertain. So further research is always essential. I often monitordirector buying and selling.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. Thus, the metric does not reflect cash or debt held by the company. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores.
Interregional Distribution Grid Company of Urals has net debt worth 80% of its market capitalization. If you want to compare its P/E ratio to other companies, you should absolutely keep in mind it has significant borrowings.
Interregional Distribution Grid Company of Urals's P/E is 12.3 which is above average (7.4) in the RU market. With significant debt and no EPS growth last year, shareholders are betting on an improvement in earnings from the company.
When the market is wrong about a stock, it gives savvy investors an opportunity. People often underestimate remarkable growth -- so investors can make money when fast growth is not fully appreciated. So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Priyanka Chopra and Nick Jonas Continue Their Paris Fashion Marathon With Vastly Different Day and Night Outfits
Photo credit: Getty Images - Splash News From ELLE While Sophie Turner and Joe Jonas have left Paris to spend a little time on their own ahead of their weekend wedding, Priyanka Chopra and Nick Jonas have remained in the city. And the couple has remained committed to putting on a fashion show for photographers: They were shot out in two very different date ensembles yesterday. The couple's afternoon outfits were pretty, polished, and light: Priyanka wore a millennial pink blazer and mini skirt with a white top for a modern Clueless- like ensemble. Nick complemented her in a white jacket, black and white striped top, black pants, and white sneakers. Photo credit: Marc Piasecki - Getty Images The couple switched up their looks in the evening for dinner at Costes-and went much darker in matching all black looks. Priyanka wore the evening-wear equivalent of Sandy's black Grease outfit: an off-the-shoulder black gown with a red lip. Nick wore a black top with matching black and red pants and white sneakers. Photo credit: Splash News Their sightings come around the same time Sophie shared an Instagram Story of Joe and his chiseled arms hanging out in a bathtub in what looks to be the countryside...or somewhere with a yard, outside of the heart of Paris. Sophie and Joe were last photographed by paparazzi at Gare du Nord, the Paris train station. Photo credit: Instagram Sophie, Joe, Nick, and Priyanka were all photographed together on a boat ride along the Seine two days ago though. Entertainment Tonight was told by a source that this was all part of the pre-wedding festivities. Photo credit: Pierre Suu - Getty Images Photo credit: Pierre Suu - Getty Images Photo credit: Pierre Suu - Getty Images “Sophie and Joe are in Paris with their family and friends," that source said. "The couple is set to get married this weekend, with a week full of dinners, boat rides and time to enjoy one another. Sophie and Joe always have fun and want this weekend to be just that.” ('You Might Also Like',) 10 Pairs of White Sneakers That Go With Everything 50 Surprising Things You Never Knew About 'Sex and the City' 20 Serums to Solve All Your Skincare Problems |
BofA's Merrill Lynch Commodities Agrees to Pay $25M to DOJ
The U.S. Department of Justice (“DOJ”) finedBank of America Corporation’s BAC commodities trading unit — Merrill Lynch Commodities Inc — for unfair trading practices. Merrill Lynch Commodities has agreed to pay $25 million to settle the investigations.The DOJ said in a statement that between 2008 and 2014, Merrill Lynch Commodities’ traders used faulty practices to deceive other participants in the precious metals futures market.Per the statement, these traders tried to inject misleading and materially fraudulent information into the precious metals futures market by placing thousands of orders for precious metals futures contracts. However, just before execution, the traders used to cancel these orders.The main objective behind this was to create a false impression of increased supply or demand within the market for precious metals futures. This would, in turn, persuade other traders to buy or sell metals futures contracts at quantities or prices that they would not have done otherwise.Notably, Merrill Lynch Commodities also agreed to pay a civil monetary penalty of $11.5 million to the Commodity Futures Trading Commission in a separate settlement.Though BofA has resolved quite a many litigation issues, it still faces investigations from several federal agencies for its business conducts in the pre-crisis period. Litigation issues are expected to lead to rise in legal expenses. Hence, higher costs will likely hamper the company’s bottom line in the near future.Shares of BofA have gained 13.9% over the past six months compared with 11.3% growth of the industry it belongs to.
Currently, the stock carries a Zacks Rank #4 (Sell).Some better-ranked stocks from the finance space are Hilltop Holdings Inc. HTH, Cadence Bancorporation CADE and M&T Bank Corporation MTB. Each of these stocks currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Over the past 60 days, Hilltop Holdings witnessed an upward earnings estimate revision of 7.8% for the current year. Its share price has increased 13.7% in the past six months.Cadence Bancorporation’s Zacks Consensus Estimate for earnings in 2019 has been revised 8.8% upward over the past 60 days. Its shares have gained nearly 17.1% in the past six months.Over the past 60 days, M&T Bank witnessed a marginal upward earnings estimate revision for the current year. Its share price has rallied 17.7% in the past six months.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 reportBank of America Corporation (BAC) : Free Stock Analysis ReportM&T Bank Corporation (MTB) : Free Stock Analysis ReportHilltop Holdings Inc. (HTH) : Free Stock Analysis ReportCadence Bancorp (CADE) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Kelly Ripa hailed as 'bod goals' in white bikini
You can’t keep a good woman down. More than a year after being age-shamed for wearing a bikini during her vacation, Kelly Ripa is once again hitting the beach — and impressing her fans in the process. The 48-year-old talk show host showed off her toned figure in a white bikini worn under a gauzy white cover-up. Daughter Lola Consuelos is credited with taking the stunning snap, which is earning raves. View this post on Instagram A post shared by Kelly Ripa (@kellyripa) on Jun 25, 2019 at 7:49am PDT “I would do anything for legs like this!!!!!” reality star Lisa Rinna commented. “Anything.” “Damn sis,” added actress Holly Robinson Peete. One fan dubbed Ripa “model material,” while another cracked, “God, I need to starve myself and do 1,000 squats.” “Is that you Kelly or Lola?!?!?!” asked one follower. “It doesn’t matter ‘cause whoever it is, you look beautiful!!!” “Who says in our 40s we can’t have fun like were 20? Let’s just not get caught doin’ the naughty,” another fan wrote, referencing Ripa and husband Mark Consuelos’s recent admission that their teenage daughter accidentally walked in on them in the bedroom. Another fan summed it up succinctly: “Bod goals.” Read more from Yahoo Lifestyle: 'Fatphobic' article criticizing Nike's plus-sized mannequins slammed by body-positive activists Jameela Jamil slams Kim Kardashian's new body makeup line: 'I'd rather just make peace with my million stretch marks' Elizabeth Hurley rocks plunging yellow bikini top and heart-shaped sunglasses at 54: 'Never aging I guess' Follow us on Instagram , Facebook , Twitter and Pinterest for nonstop inspiration delivered fresh to your feed, every day. |
Should You Think About Buying Interregional Distribution Grid Company of Urals, Joint Stock Company (MCX:MRKU) Now?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Interregional Distribution Grid Company of Urals, Joint Stock Company (MCX:MRKU), which is in the electric utilities business, and is based in Russia, saw significant share price movement during recent months on the MISX, rising to highs of RUB0.19 and falling to the lows of RUB0.16. 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 Interregional Distribution Grid Company of Urals's current trading price of RUB0.18 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 Interregional Distribution Grid Company of Urals’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 Interregional Distribution Grid Company of Urals
According to my relative valuation model, the stock is currently overvalued. 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 12.27x is currently well-above the industry average of 7.12x, meaning that it is trading at a more expensive price relative to its peers. Another thing to keep in mind is that Interregional Distribution Grid Company of Urals’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Interregional Distribution Grid Company of Urals, it is expected to deliver a negative revenue growth of -15% over the next couple of years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
Are you a shareholder?If you believe MRKU should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the risk from a negative growth outlook, this could be the right time to de-risk your portfolio. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping tabs on MRKU for some time, now may not be the best time to enter into the stock. Its price has risen beyond its industry peers, on top of a negative future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Interregional Distribution Grid Company of Urals. You can find everything you need to know about Interregional Distribution Grid Company of Urals inthe latest infographic research report. If you are no longer interested in Interregional Distribution Grid Company of Urals, 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. |
FactSet (FDS) Surpasses Earnings and Revenue Estimates in Q3
FactSet Research Systems Inc.FDS reported impressive results for third-quarter fiscal 2019, wherein the company topped the Zacks Consensus Estimate on both counts.
The company reported adjusted earnings per share of $2.62, which surpassed the Zacks Consensus Estimate of $2.37. The figure increased 20.2% on a year-over-year basis driven by strong operating performance.
We observe that shares of FactSet have gained 42.5% year to date, significantly outperforming the 29.2% rally of the industry it belongs to.
Revenues in Detail
FactSet’s revenues of $364.5 million increased 7.2% from the year-ago quarter and exceeded the Zacks Consensus Estimate of $358.9 million. The uptick was driven by higher sales of analytics, content and technology solutions (CTS) as well as wealth management solutions. Organic revenues increased 7.3% year over year to $366.3 million.
Region-wise, U.S. revenues increased to $227 million from $210.3 million in the year-ago quarter. International revenues were $137.5 million compared with $129.6 million in the year-ago quarter.
FactSet Research Systems Inc. Revenue (TTM)
FactSet Research Systems Inc. revenue-ttm | FactSet Research Systems Inc. Quote
ASV Plus Professional Services
FactSet’s Annual Subscription Value (ASV) plus professional services was $1.45 billion at the end of the quarter, up 5.1% year over year. Organically, it increased 5.6% year over year.
Buy-side and sell-side ASV growth rates were 5.2% and 6.8%, respectively. Nearly 84% of organic ASV was generated by buy-side clients. The rest were derived from sell-side firms performing functions like mergers and acquisitions advisory work, equity research and capital markets services.
ASV generated from the United States was $887.6 million, up 5.2% from the prior-year quarter’s level. Internationally, ASV was $535.4 million, up 4.4% year over year.
FactSet added 50 clients in the reported quarter, taking the total number to 5,455. Annual client retention was 90% of clients and more than 95% of ASV. At the end of the quarter, total employee count was 9,366, up 1.8% year over year.
Operating Results
Adjusted operating income came in at $122.8 million, up 16.2% from the year-ago quarter’s figure. Adjusted operating margin increased 300 basis points (bps) to 34%.
Selling, general and administration expenses increased 2.3% to $83.5 million. Total operating expenses increased slightly to $247.3 million.
Balance Sheet and Cash Flow
FactSet exited the fiscal third quarter with cash and cash equivalents of $324 million compared with $218.3 million in the previous quarter. Long-term debt at the end of the quarter was $574.1 million compared with $574.8 million in the prior quarter.
In the quarter, the company generated $159.8 million of cash from operating activities and capital expenditure was $11.4 million. Free cash flow was $148.3 million.
Share Repurchase and Dividend Payout
FactSet repurchased 175,000 shares for $47.6 million during the reported quarter. The company has $300 million under existing share repurchase program after a recent addition of $210 million.
FactSet paid dividends of $27.3 million in the quarter. The company increased its quarterly dividend by 12.5% to 72 cents marking the 14th consecutive year of dividend increase.
Fiscal 2019 Outlook
FactSet updated fiscal 2019 guidance. The company now anticipates adjusted EPS in the range of $9.80 and $9.90 compared with the previous guidance of $9.50-$9.65. Midpoint ($9.85) of the updated range is higher than the Zacks Consensus Estimate of $9.59.
The company expects revenues between $1.42 billion and $1.44 billion compared with the previous guidance of $1.41-$1.45 billion. Midpoint of the updated guided range matches Zacks Consensus Estimate of $1.43 billion.
Organic ASV plus professional services for fiscal 2019 is now projected to increase in the range of $70-$75 million compared with the previously projected range of $75-$90 million. Adjusted operating margin is projected in the range of 32.5%-33%, compared with the previously projected range of 31.5-32.5%.
The annual effective tax rate is expected between 16% and 16.5%. The previous expectation was between 17% and 18%.
Zacks Rank & Stocks to Consider
FactSet currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked stocks in the broader Zacks Business Services sector are Navigant Consulting NCI, NV5 Global NVEE and FLEETCOR Technologies FLT. While Navigant Consulting sports a Zacks Rank #1, FLEETCOR and NV5 Global carry a Zacks Rank #2 (Buy).
Long-term expected EPS (three to five years) growth rate for Navigant Consulting, FLEETCOR and NV5 Global is 13.5%, 15.4% and 20%, respectively.
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 reportFactSet Research Systems Inc. (FDS) : Free Stock Analysis ReportFleetCor Technologies, Inc. (FLT) : Free Stock Analysis ReportNavigant Consulting, Inc. (NCI) : Free Stock Analysis ReportNV5 Global, Inc. (NVEE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Does Investis Holding SA's (VTX:IREN) CEO Pay Matter?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2015 Stéphane Bonvin was appointed CEO of Investis Holding SA (VTX:IREN). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Investis Holding
Our data indicates that Investis Holding SA is worth CHF869m, and total annual CEO compensation is CHF916k. (This is based on the year to December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at CHF455k. When we examined a selection of companies with market caps ranging from CHF389m to CHF1.6b, we found the median CEO total compensation was CHF1.0m.
So Stéphane Bonvin is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Investis Holding has changed from year to year.
On average over the last three years, Investis Holding SA has grown earnings per share (EPS) by 6.2% each year (using a line of best fit). Its revenue is up 4.0% over last year.
I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Investis Holding SA has served shareholders reasonably well, with a total return of 31% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Stéphane Bonvin is paid around the same as most CEOs of similar size companies.
We think many would like to see better growth. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. If you think CEO compensation levels are interesting you will probably really likethis free visualization of insider trading at Investis Holding.
If you want to buy a stock that is better than Investis Holding, thisfreelist of high return, low debt companies is a great place to look.
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 nice, easy and fast tan': Why shoppers love this $12 sunless tanning mousse
Yahoo Lifestyles shopping team is committed to finding you the best products at the best prices. We may receive a share from purchases made via links on this page. Summertime calls for a makeover of your makeup bag, and Walmart has warm-weather beauty products that are super affordable. (Photo: Getty) Its officially summer , and its safe to say its time to upgrade our beauty stashes. So go ahead and stow away your fall and winter staples youre going to need (OK, want ) some stellar new products to get you through the season. Wondering how youre supposed to afford a whole new arsenal? Well, thanks to Walmarts extensive beauty selection , you dont have to worry about spending a fortune because its all so affordable. Believe it or not, the retail giant is home to a sea of skin, hair and makeup saviors, many of which are wallet-friendly and even rival the expensive brands on the market. Curious to know which summer beauty products you can snag from Walmart for under $20? Weve got you covered simply keep on scrolling. Jergens Natural Glow Instant Sun Deep Bronze Sunless Tanning Mousse (Photo: Jergens) Shop it : Jergens Natural Glow Instant Sun Deep Bronze Sunless Tanning Mousse, $12, walmart.com Looking for a way to enhance your skin without subjecting it to the suns harmful UV rays? This fast-acting self-tanner from Jergens is the way to go. Its airy texture feels like nothing on the skin and dries in seconds, and it provides long-lasting color instantly rather than having to wait around for six hours before seeing a glow. Its no wonder it has nearly 1,000 amazing reviews. One reviewer wrote: I'm a natural redhead/Auburn and have very fair skin so it's very difficult for me to tan without burning I just used this last night and I love it! Definitely would recommend if you want a nice fast and easy tan and want a bronze sun kissed look like seen on Instagram. While another raved, I recently bought this and just tried it yesterday. It looks like I've already sat in the sun for a few days. I applied it all evenly and I don't see any odd streaks. CeraVe Hydrating Face Sunscreen SPF 50 (Photo: CeraVe) Shop it : CeraVe Hydrating Face Sunscreen SPF 50 , $14, walmart.com Sun protection is non-negotiable no matter what season it is, but its especially crucial to be coating your skin in SPF when youll be spending more time outside. This foolproof sunscreen from dermatologist-favorite brand CeraVe is ultra-lightweight and moisturizing with ingredients like hyaluronic acid, panthenol and niacinamide. And, while its most ideal for dry complexions, its truly suitable for all skin types, which explains why its such a top-seller. Batiste Tropical Dry Shampoo (Photo: Batiste) Shop it : Batiste Tropical Dry Shampoo, $3, walmart.com With all the sweating we do during the warm (see: scorching) months, having a solid dry shampoo on hand is essential. This one by Batiste not only sops up oil in seconds without leaving any awkward residue behind, but smells like a vacation to Bora Bora too. With delicious notes of coconut, jasmine and peach, youll find yourself wanting to reapply several times a day. Story continues Essie Nail Polish Nudes in Let It Glow (Photo: Essie) Shop it : Essie Nail Polish Nudes in Let It Glow, $7, walmart.com Weve found your new favorite nail color for summer. This stunning champagne-pink shade is universally flattering, works with just about any outfit and looks even more amazing when the sun hits it. What more could you ask for in a nail lacquer? L'Oreal Paris Voluminous Lash Paradise Washable Mascara (Photo: L'Oreal Paris) Shop it : L'Oreal Paris Voluminous Lash Paradise Washable Mascara, $6, walmart.com This best-selling mascara has more than 1,000 rave reviews and it only costs eight bucks. People love it so much because it gives you high-voltage volume and a flirty, feathery lash look that lasts all day without smudging or flaking. Even sweat and hours in the sun dont stand a chance against this dynamite formula. Neutrogena Glow On Liquid Face Highlighter Moonlight Galaxy (Photo: Neutrogena) Shop it : Neutrogena Glow On Liquid Face Highlighter Moonlight Galaxy, $7, walmart.com Get your glowy skin game on lockdown for summer with this gorgeous liquid highlighter from Neutrogena. Wear it underneath foundation, on its own or where the sun naturally hits for an otherworldly radiance that wont go unnoticed. It also comes in two summer-perfect hues: a deep warm bronze and an iridescent champagne shade that looks like the sun kissed your skin. e.l.f. Cosmetics ELF+ Dewy Coconut Refreshing Mist (Photo: e.l.f. Cosmetics) Shop it : e.l.f. Cosmetics ELF+ Dewy Coconut Refreshing Mist, $8, walmart.com Soothe dry, dull or distressed skin with this ultra-hydrating facial spray, which contains a calming blend of coconut water, hyaluronic acid and argan oil, among other complexion-cooling ingredients. Spritz it on post-cleanse, on top of makeup or simply when you need a midday pick-me-up. Its adorable packaging is just the cherry on top. SheaMoisture Coconut & Hibiscus Curl & Shine Shampoo (Photo: SheaMoisture) Shop it : SheaMoisture Coconut & Hibiscus Curl & Shine Shampoo, $10, walmart.com Sure, this organic shampoo might be especially excellent at defining curls, but it also works wonders on just about every other hair type too. Jam-packed with shine-enhancing ingredients like coconut and neem oils, silk protein and hibiscus flower extract, hair is left looking more luminous and healthy after just one use. Its tranquil tropical fragrance is just another reason we love it. Derma E Purifying Daily Detox Scrub (Photo: Derma E) Shop it : Derma E Purifying Daily Detox Scrub, $10, walmart.com Give your skin a kickstart every day this summer with this gentle scrub from Derma E, which features seaweed, activated charcoal, apricot seed powder and antioxidant-rich green tea for the ultimate skin-rejuvenating effect. This exfoliator is unique in that is actually soothes skin while resurfacing it, so you never have to worry about irritation afterward. That, and it smells delicious sans artificial fragrances too. SGX NYC The Bodyguard Thermal Protective Texture Spray (Photo: SGX NYC) Shop it : SGX NYC The Bodyguard Thermal Protective Texture Spray, $7, walmart.com If you must use heat on your hair this summer, you better make sure youre not without a great heat protective spray. This one not only provides superior protection from all your favorite hot tools but acts as a humidity shield too. On top of that, it adds a little extra volume and shine thanks to sea botanical extracts. Related Video: Three Body Parts Most Vulnerable to Skin Cancer Read more on Yahoo Lifestyle: The best mascaras for longer, thicker eyelashes starting at $7 The $18 leave-in conditioner Hailey Baldwin swears by 1 bottle of this wildly popular anti-aging serum is sold every 60 seconds: Reviewers and experts explain why Follow us on Instagram , Facebook , Twitter , and Pinterest for nonstop inspiration delivered fresh to your feed, every day. Want daily pop culture news delivered to your inbox? Sign up here for Yahoos newsletter. View comments |
Will Qualcomm (QCOM) Stock Win Again? Canaccord Remains Bullish
Investing in Qualcomm (QCOM) stock has been a rollercoaster ride over the past two months. After Qualcomm’s settlement with Apple, the stock soared as the market saw Qualcomm secures rights to provide Apple with its future 5G mobile chips. However, just a few days later, the FTC determined that Qualcomm violated antitrust laws with their royalty structures included in their contracts with smartphone manufacturers. This news shocked the market and the stock plunged as a result.
The complex legal system Qualcomm will navigate over the coming months and years will determine the chip giant's future. Cannacord analystMichael Walkleyhas sorted through the legal implications and remains confident in his Buy rating and $90 price target on QCOM stock. (To watch Walkley's track record,click here)
Qualcomm has already filed its reply to judge Lucy Koh’s ruling on the 18thof June, and although the judge is expected to deny the appeal, Qualcomm can then appeal for a stay in the Ninth Circuit. This Ninth Circuit approach can spiral into a process that can take up to 2 years if the case reaches the US Supreme Court. Walkley believes that the Ninth Circuit will rule in Qualcomm’s favor because of the “irreparable harm to Qualcomm’s business model if not granted a stay during the appeal process.” A stay means that Qualcomm can continue its practice of charging mobile phone manufacturers a percentage of the final selling price before the litigation is settled.
Another factor that gives Walkley confidence in the Ninth Circuit Court of Appeals granting Qualcomm a favorable ruling is the mixed messages coming from the inner workings of the FTC. Rather than the normal five-member vote on whether a case should proceed, only three commissioners have voted, and the Commission is currently in a 2-2 deadlock on the decision. Walkley noted that “a current FTC commissioner, Christine Wilson, stated the legal theory was flawed and encouraged the higher courts to reconsider Judge Koh’s decision.” The appeals court will also take the public interest into consideration, and with Qualcomm’s immense 5G capability, a decision that damages Qualcomm’s business could hurt the wireless industry and the public interest.
All in all, with much uncertainty surrounding Qualcomm’s stock in the midst of constant litigation, there may be a sizeable opportunity for investors believe Qualcomm will come out of this litigation largely unscathed.TipRanks analysisof 24 analyst ratings show a consensus Moderate Buy rating, with 14 analysts saying Buy, nine suggesting Hold and only one recommending Sell selling. The average price target among these analysts stands at $85.29, which implies a 17% upside from current levels.
Read more QCOM:
• Qualcomm Faces Challenges, But the Stock Remains a ‘Buy’
• Owning Qualcomm Stock Should Be Worth the Noise, Says Morgan Stanley
• Susquehanna Remains Bullish on Qualcomm (QCOM) Stock as the Roller Coaster Ride Continues
• A Look at Qualcomm (QCOM)-FTC Outcome and Its Impact on Apple (AAPL)
• Is 33% Upside Good Enough to Risk Buying Fitbit (FIT) Stock? Deutsche Bank Doesn't Think So
• Deutsche Bank Remains Sidelined on AMD Stock; Here's Why
• Antitrust Investigation Is Not a Major Threat to Alphabet (GOOGL) Stock, Says Top Analyst
• Tesla's (TSLA) Gigafactory Is Impressive, But Its Stock Isn't, Says RBC Capital |
You should cover your phone's selfie camera, too
Take a look at your smartphone. Perhaps you're reading this story on it, and the device is planted firmly in your hands. Maybe you're on your laptop, and your phone is resting face up on your desk. Now, focus your attention on the phone's selfie camera. Try to imagine what's in its field of view.
Unless your phone's forward-facing camera has a cover on it, you may not be the only one with that picture in their mind — or on their computer screen. Unless, that is, you have a selfie-cam cover.
It wasn't long ago that the idea of covering a laptop webcam was considered "paranoid," as if to suggest that only thetinfoil-hatwearing would think such a measure necessary. That consensus began to shift, in part, when Mark Zuckerbergaccidentally revealedthat even the King of Sharing had tape obscuring the view from his laptop's camera.Read more...
More aboutIphone,Privacy,Smartphones,Selfies, andTech |
Global PoleTrusion Group Corp. is Obtaining Definitive Agreement And Certification For Composite Pole Distribution Project in East Africa
MIAMI, FL / ACCESSWIRE / June 26, 2019 / Global PoleTrusion Group Corp.(OTC PINK: GPGC) is pleased to announce that it is on schedule to have a definitive agreement completed for their partnership with Kenyan company Avalon Assure for the manufacturing, sales and export of composite utility poles in East Africa. With this joint venture, the companies estimate revenues of approximately $200 million USD, with sales of around 100,000 poles over the next three years.
GPGC and Avalon Assure have submitted the required documentation to start the approval process for the composite poles with the Kenya Bureau of Standards (KEBS). Certification and approvals are expected to be obtained for the completion of the composite pole manufacturing facility in Kenya, which will allow for the distribution of poles throughout East Africa. "Completing the certification process with KEBS will allow our poles to be marketed and widely accepted in the entire East African market," said Ramiro Guerrero, President and CEO of GPGC.
The economy of East Africa is growing rapidly. The East African Community (EAC), an intergovernmental organization composed of 6 countries including Kenya and Tanzania, has launched a common market for goods, labor and capital, which will permit the delivery of GPGC's products within the region without any stifling tariffs.
GPGC and Avalon Assure have been working collectively and presenting their composite pole solutions to the Tanzania Electric Supply Company and the Uganda Electric Transmission Company. The response has been positive, and GPGC trusts that it will obtain orders to coincide with the development of the manufacturing facility in Kenya. "We have been well received and we are looking forward to providing environmentally friendly solutions to East Africa's electrical supply companies," stated Kal Matharu, President of Avalon Assure.
About Global PoleTrusion Group Corp.
GPGC is an engineering firm that fulfills the needs of telecommunications and utility companies, providing composite poles, towers and renewable energy solutions. Their composite structures outperform their steel, wood and concrete counterparts as they are stronger, lighter, easier to install and environmentally safe. With its advanced engineering and manufacturing capabilities, GPGC is at the forefront of providing creative and effective solutions to address the needs of utility companies. In Panama, GPGC is setting up a biomass facility to generate electrical energy within the Barú region in the province of Chiriquí.
PoleTrusion Canada provides engineering services for GPGC. They create the latest state-of-the-art composite structures, custom-designed based on the needs of their clients. The company is part of the Advanced Composite Materials for Civil Structures Chair at the University of Sherbrooke. Dr. Benmokrane, a director of the Chair, is on the technical board at GPGC.
To learn more about GPGC, visitwww.globalpoletrusiongroup.com.
Forward-Looking Statements
This news release contains « forward-looking statements », as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.
CONTACT:
Insa Koeniesinsa.koenies@poletrusion.com
SOURCE:Global PoleTrusion Group Corp.
View source version on accesswire.com:https://www.accesswire.com/549860/Global-PoleTrusion-Group-Corp-is-Obtaining-Definitive-Agreement-And-Certification-For-Composite-Pole-Distribution-Project-in-East-Africa |
Take a Ride With Ghana’s First All-Girls Skate Crew
Sandy Alibo has spent the past few years patiently building and promoting Surf Ghana, the very first skate crew to come from the West African country of Ghana. But when it came time for her and her partner, Kuukua Eshun, to make another dream a reality—a partner group called Skate Gal, exclusively for and by women, which launched last Saturday at the Berj Art Gallery —she wanted to push the subject matter beyond ollies and kick flips. “I wanted to really share more than just skateboarding with these girls,” Alibo said on the phone from Accra a few days after the launch, which included a full day on the boards, yes, but also yoga, a temporary tattoo station, a DJ set, and watercolor painting. “I wanted us to have a place to talk about work, life, family, inspiration. To be really happy to just have one another, to connect with other people.” Photo: Courtesy of Skate Gal Club / @surfghana Photo: Courtesy of Skate Gal Club / @surfghana That doesn’t mean there was no real skate time: More than 60 women showed up to Saturday’s initiation event, where four guys from Surf Ghana were on hand to help the beginners find their balance. “At first it’s just about, can you just stand up on the board?” said Alibo. “People were scared to start, but as soon as they got on, they’d want to do it again and again. Even if they fell, they’d laugh.” Skateboarding is a relatively new phenomenon in Ghana, but Alibo is encouraged that a whole range of women participated on Saturday: from 10 years old to 35, fashion designers to singers. “Skateboarding has gone really viral for the men in Ghana,” she added. “I think we can have twice the number of women at our next event. We’re confident about the future of this sport.” Photo: Courtesy of Skate Gal Club / @surfghana Photo: Courtesy of Skate Gal Club / @surfghana Up next: a weekly meet-up, plus larger events similar in style to the launch, which will take place every two months or so. At some point, Alibo hopes to invite a few famous female skateboarders from the U.S. and U.K. to lead workshops, but most pressing is the group’s current crowdfunding efforts for the creation of Accra’s first true skate park, which Alibo has wanted to build for years. “I know this could all grow with a real skate park,” she said. “We don’t have the best streets to skate on here in Accra like you do in the States. We need this.” There may be a few structural kinks to work out, but the spirit is already there. “I’ve never seen so many women excited about skating before,” she added. “We just want to give women a safe space to come and be courageous.” Story continues Photo: Courtesy of Skate Gal Club / @surfghana Photo: Courtesy of Skate Gal Club / @surfghana Photo: Courtesy of Skate Gal Club / @surfghana Photo: Courtesy of Skate Gal Club / @surfghana Photo: Courtesy of Skate Gal Club / @surfghana See the videos. Originally Appeared on Vogue |
Veeva's Submissions & RIM Implemented by Sumitomo Dainippon
Veeva Systems Inc.VEEV recently announced that its Vault Submissions and Vault Submissions Archive, implemented by Japan’s Sumitomo Dainippon Pharma, have enabled it to respond faster to health authority requests. Notably, the Vault Submissions and Vault Submissions Archive are part of the Vault RIM Suite. This fortifies Veeva’s foothold in the healthcare IT (HCIT) space.
For investors’ notice, Sumitomo Dainippon Pharma focuses on research and development activities for better healthcare worldwide.
On Vault Submissions & Vault RIM Suite
Veeva Vault Submissions is a unique platform, which creates a single authoritative source for submissions content. This makes storage and processing of data easier for healthcare companies. The platform tracks the progress of documents through actionable reports and dashboards, mitigating risks to submission timelines.
Meanwhile, the Vault RIM Suite is a global source for all regulatory content and product registration data.
It provides unified regulatory information management (RIM) capabilities on a single cloud-based platform including submission document management, product registration management, health authority correspondence and commitments, and submission archiving.
Veeva Systems has experienced robust demand for its Vault platform in recent times. In fact, management at Veeva Systems expects Vault subscription revenues to grow a significant 40% in fiscal 2020.
Product Portfolio Strong
Veeva Systems’ industry-specific focus lends it significant leverage.
The company’s unique solutions include Veeva Vault, Veeva CRM, Veeva Network and VeevaOpenData. Veeva Vault is the first cloud-based content management system built specifically for life sciences. Veeva CRM is a customer relationship management platform that offers cloud-based solutions to reach customers on any channel.
Another new cloud application of the company is Veeva Vault Training, designed to simplify role-based training across life sciences organizations and help quality teams remain audit-ready and compliant.
Market Prospects
BCC Research says that the global market for cloud technologies in healthcare is expected to reach $35 billion by 2022, at a CAGR of 11.6%.
Hence, the latest development has been a profitable one for Veeva.
Price Performance
Buoyed by these solid prospects, this Zacks Rank #2 (Buy) stock has skyrocketed 108.5% compared with the industry’s 18.8% and the S&P 500 index’s 6.8% rise, in a year’s time.
Other Key Picks
A few other top-ranked stocks in the broader medical space are DENTSPLY SIRONA XRAY, Penumbra PEN and CONMED Corporation CNMD, each carrying a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DENTSPLY’s long-term earnings growth rate is expected to be 11.5%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
CONMED’s long-term earnings growth rate is estimated at 13.3%.
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 reportVeeva Systems Inc. (VEEV) : Free Stock Analysis ReportPenumbra, Inc. (PEN) : Free Stock Analysis ReportDENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis ReportCONMED Corporation (CNMD) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
5 Successful New ETFs of Q2
The ETF industry has gained huge popularity within a span of 20 years. Issuers have been coming up with products in bulk. This year appears to have solid momentum, with about 127 new funds on board. The second quarter saw around 72 ETF rollouts.
All these have taken the tally to 2,286 ETFs so far, with an average market cap of $3,968.5 billion. Not only this, a considerable number of ETFs are in the pipeline, pointing to growing investor interest in exchange-traded products in this market. There is a wide range of state-of-the-art and fresh-themed products in the space, which hold investors' attention despite market peaks and troughs.
Here are five ETFs launched in Q2 that have amassed a decent asset base within days of hitting the market.
iShares ESG MSCI USA Leaders ETFSUSL — $1.18 billion
The fund hit the market on May 7, amassing a huge asset base within a short span. The underlying MSCI USA Extended ESG Leaders Index comprises U.S. large and mid-capitalization stocks of companies with high environmental, social, and governance performance relative to their sector peers. The fund charges 15 bps in fees (read: May ETF Asset Report: Quality U.S. Equities Win).
Global X Cloud Computing ETF Global X Cloud Computing ETFCLOU — $403.4 million
The fund entered the market in April. It looks to invest in companies positioned to benefit from the increased adoption of cloud computing technology, including companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), managed server storage space and data center real estate investment trusts, and/or cloud and edge computing infrastructure and hardware. The fund charges 68 bps in fees (read: Tech ETFs Plummet on Antitrust Scrutiny Fears).
Innovator S&P 500 Power Buffer ETF - April NewPAPR — $116.5 million
The fund, which debuted on Apr 1, seeks to track the return of the S&P 500 Price Return Index, up to a predetermined cap, while buffering investors against the first 15% of losses over the outcome period. The ETF can be held indefinitely, resetting at the end of each outcome period, approximately annually. The fund charges 79 bps in fees.
Tactical Income ETFTBND — $75.5 million
This actively-managed ETF, which forayed into the market on Jun 18, seeks to provide total return by ETFs that primarily invest in fixed-income securities, REITs, MLPs, dividend paying equity stocks, including utility stocks and exchange-traded notes. The expense ratio is 1.59%.
Timothy Plan US Large Cap Core ETFTPLC — $58.9 million
The fund hit the market at the start of May. The underlying Victory U.S. Large Cap Volatility Weighted BRI Index is an unmanaged, volatility weighted index. It consists of stocks included in the Nasdaq Victory US Large Cap 500 Volatility Weighted Index and eliminates companies that do not satisfy the eVALUEator proprietary Biblically Responsible Investing screening criteria.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>
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 reportInnovator S&P 500 Power Buffer ETF - April (PAPR): ETF Research ReportsGlobal X Cloud Computing ETF (CLOU): ETF Research ReportsTACT-INCM (TBND): ETF Research ReportsTimothy Plan US Large Cap Core ETF (TPLC): ETF Research ReportsiShares ESG MSCI USA Leaders ETF (SUSL): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
S&P 500 dips as healthcare declines counter tech gains
By Stephen Culp
NEW YORK (Reuters) - The S&P 500 ended lower on Wednesday as gains in technology stocks were offset by a drop in healthcare shares, and investors parsed mixed messages over prospects for a deal to end a trade war between the United States and China.
Technology shares led the Nasdaq higher while the Dow Jones Industrial average posted a nominal loss.
U.S. stocks struggled for direction throughout the session as market participants pondered whether a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the Group of 20 summit in Japan would yield any progress in the two country's protracted tariff dispute.
The market initially perked up after U.S. Treasury Secretary Steven Mnuchin was quoted by CNBC interview as saying the trade deal between the United States and China is "about 90%" complete. His comments were later restated to show he was using the past tense to describe progress in the talks.
Trump later said that while it was "absolutely possible" to avoid imposing additional tariffs on imported Chinese goods, he was "very happy where we are now."
"(Trade) optimism has been unwound as the day has gone on," said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York.
"Last week the market had a clear path of what to focus on: A rate cut in July and Trump and Xi meeting at the G20 to discuss reopening trade negotiations," Pavlik added. "What has happened since is this government has muddied the waters and confused the market."
The Dow Jones Industrial Average fell 11.4 points, or 0.04%, to 26,536.82, the S&P 500 lost 3.6 points, or 0.12%, to 2,913.78 and the Nasdaq Composite added 25.25 points, or 0.32%, to 7,909.97.
A rise in crude prices boosted energy stocks. Energy and tech companies were the biggest percentage gainers among the 11 major sectors of the S&P 500, while defensive utilities, real estate and consumer staples saw the largest losses.
Chipmakers led the tech rally. The Philadelphia SE Semiconductor index rose 3.2% after Micron Technology Inc posted upbeat results and forecast a recovery in chip demand. Micron's shares jumped 13.3%.
Apple Inc shares advanced 2.2% after the iPhone maker confirmed that it bought self-driving startup Drive.ai and after Trump suggested in an interview that the European Union was out of line with its lawsuits against U.S. tech firms, saying that the United States was the one that should be taking action.
EU antitrust regulators on Wednesday hit Broadcom with demands that the chipmaker drop its exclusivity clauses with TV and modem makers as part of its ongoing investigation. Nevertheless, Broadcom's shares gained 1.8%
General Mills Inc was the biggest percentage loser on the S&P 500, dropping 4.5% after the packaged food company missed quarterly sales estimates, hit by lower snacks demand in North America.
In economic news, new orders for non-defense capital goods rose more than economists expected in May, suggesting some stabilization in business spending, which had shown signs of weakness amid trade jitters and bloated inventories. But overall orders for durable goods dropped, driven by a 28.2% plunge in non-defense aircraft orders, partly due to Boeing's move to cut production of its troubled 737 MAX aircraft.
Advancing issues outnumbered declining ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored decliners.
The S&P 500 posted 7 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 21 new highs and 94 new lows.
Volume on U.S. exchanges was 6.69 billion shares, compared to the 6.99 billion average for the full session over the last 20 trading days.
(Reporting by Stephen Culp; Editing by Susan Thomas) |
40% of Americans say recession has already begun
By most commonly used measures, the U.S. economy is robust. But nearly 40% of Americans say they feel like the next recession is already here or will start in the next 12 months, according to a newBankrate.comsurvey.
Some of that is because the fruits of the 10-plus-year bull market andstrong job market hasn’t reached all Americans.
“If you haven’t had a raise in a few years, if you’re still living paycheck-to-paycheck not making any headway, it’s tough to feel like the economy is doing great,” says Bankrate’s chief financial analyst Greg McBride. “The unemployment is the lowest in 50 years – doesn’t mean that everybody’s got a job, doesn’t mean that everybody’s doing great.”
Despite the fact that many Americans (39%) say that the economy is “not so good,” only 35% of average consumers actually have the minimum 3-5 months of emergency savings that many experts advocate for as a safety net.
In fact, 28% of Americans have no emergency savings at all, up from 23% last year, the highest level in three years. Only 18% of Americans can manage to get by for six months or more in case of an emergency, according to Bankrate, which surveyed over 1,000 people.
“Six months is a guideline for people, it’s a destination, but it’s not a one-size-fits-all answer. And the fact is whether the goal is six months in expenses or more than that, the vast majority of Americans are far short of that marker,” says McBride. “In the last recession we had at one point seven million people who had been out of work longer than six months, so even an adequately funded emergency cushion could be stretched pretty thin during a period of prolonged joblessness.”
Full-steam economy
May’sunemployment ratestayed at 3.6%, a 49-year low. The GDP’s 2.9% growth in 2018 was its best annual performance since the Great Recession; and Q1 GDP growth was 3.1%. Major stock indexes are near all-time highs.Inflationis low.
Bankrate’s survey found that 88% of “experts” say the economy is “good,” and 11% say it’s “excellent.
Nevertheless, McBride highlights the risk of “talking ourselves into a recession.”
“Consumers that feel the economy is weak, they’re going to be more hesitant to spend and that can be a headwind to the economy,” he said. “Business owners that see the economy as weak – they’re not going to hire people, they’re not going to make capital investments and all of that could add up to a collective headwind to economic growth that’s enough to stall out the expansion.”
Political views and household income brackets are also impacting Americans views of the economy. More than three-quarters of Republicans rate the economy as “excellent,” but only 49% of Democrats share that rosy view.
Amonghouseholdswith income below $30,000, half rate the economy as “not so good.” Just 31% of households share that take when their income is above $30,000.
“Regardless of whether you believe the economy is chugging along or on the brink of collapse, most of us aren’t ready to face another slowdown,”Bankrate says.
Follow Sibile Marcellus on@SibileTV
More from Sibile:
Here’s what graduates regret the most about college
Women are about to reach a new workplace milestone
Southern states that voted for Trump see lower incomes than rest of U.S.
Trump is to blame for strong dollar, not the Fed: Economist
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn,YouTube, andreddit. |
Why MSB Financial Corp.'s (NASDAQ:MSBF) High P/E Ratio Isn't Necessarily A Bad Thing
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 written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at MSB Financial Corp.'s (NASDAQ:MSBF) P/E ratio and reflect on what it tells us about the company's share price.What is MSB Financial's P/E ratio?Well, based on the last twelve months it is 18.92. That corresponds to an earnings yield of approximately 5.3%.
View our latest analysis for MSB Financial
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for MSB Financial:
P/E of 18.92 = $15.5 ÷ $0.82 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio means that investors are payinga higher pricefor each $1 of company earnings. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
Probably the most important factor in determining what P/E a company trades on is the earnings growth. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. And in that case, the P/E ratio itself will drop rather quickly. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
It's nice to see that MSB Financial grew EPS by a stonking 42% in the last year. And it has bolstered its earnings per share by 37% per year over the last five years. I'd therefore be a little surprised if its P/E ratio was not relatively high.
We can get an indication of market expectations by looking at the P/E ratio. The image below shows that MSB Financial has a higher P/E than the average (13.9) P/E for companies in the mortgage industry.
MSB Financial's P/E tells us that market participants think the company will perform better than its industry peers, going forward. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should always consider the P/E ratio alongside other factors, such aswhether company directors have been buying shares.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. Thus, the metric does not reflect cash or debt held by the company. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio.
MSB Financial has net debt worth 72% of its market capitalization. If you want to compare its P/E ratio to other companies, you should absolutely keep in mind it has significant borrowings.
MSB Financial has a P/E of 18.9. That's around the same as the average in the US market, which is 17.8. The significant levels of debt do detract somewhat from the strong earnings growth. However, the P/E ratio implies that most doubt the strong growth will continue.
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.' Although we don't have analyst forecasts, you might want to assessthis data-rich visualizationof earnings, revenue and cash flow.
Of courseyou might be able to find a better stock than MSB Financial. 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. |
Mt. Gox Founder Knew of Security Risks Years Before Collapse, Lawsuit Claims
Mt. GoxfounderJed McCalebis being sued by two traders who used the doomedexchange, court documentsfiledon May 19 show.
Joseph Jones and Peter Steinmetz have accused the ex-CEO of fraudulently and negligently misrepresenting the exchange.
The pair also allege that McCaleb was aware of “serious security risks” back in late 2010 or early 2011 — more than three years before 850,000 bitcoin (BTC) was stolen in an audacious hack. Their complaint adds:
“Rather than secure the exchange, McCaleb sold a large portion of his interest in the then sole proprietorship, and provided avenues to the purchases to cover-up security concerns at the time without ever informing or disclosing these issues to the public.”
Both of the plaintiffs describe themselves as experiencedcryptocurrencytraders. They said they were reassured by McCaleb following a “dictionary attack” in 2011, where a fraudster stole coins after targeting accounts with weak passwords.
The court document alleges that 80,000 BTC was already missing at that time, and claims that McCaleb sold a majority of his interest in Mt. Gox toMark Karpelesinstead of staying to repair the security issues.
While Jones said he owned 1,900 BTC at the time of Mt. Gox’s bankruptcy in February 2014 (worth $24 million at press time,) Steinmetz said he owned 43,000 BTC — crypto that would be worth more than $542 million at today’s rates. Both men are still in pursuit of their lost funds, and say they would not have used Mt. Gox had they known about the “significant security concerns” that existed in 2011.
In April, Mt. Gox rehabilitation trustee Nobuaki Kobayashisuccessfullypetitioned a Japanese court to extend the deadline for the submission of rehabilitation plans to October 2019.
Meanwhile, back in March, former CEO Mark Karpeles wasgivena suspended jail sentence after being found guilty of tampering with financial records.
Mt. Goxwas oncethe world’s biggest crypto exchange, and McCaleb later went on to become the founder ofRippleand the co-founder ofStellar.
• Report: Two Israeli Brothers Arrested for Hack of Bitfinex Crypto Exchange
• Round-Up of Crypto Exchange Hacks So Far in 2019 — How Can They Be Stopped?
• Huobi Expands to Turkey Where 20% of the Population Hold Crypto
• Bitcoin Falls by $1,400 After Crash of Major Crypto Exchange Coinbase |
Should You Be Adding Inwido (STO:INWI) To Your Watchlist Today?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.'
So if you're like me, you might be more interested in profitable, growing companies, likeInwido(STO:INWI). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
Check out our latest analysis for Inwido
As one of my mentors once told me, share price follows earnings per share (EPS). That means EPS growth is considered a real positive by most successful long-term investors. Inwido managed to grow EPS by 16% per year, over three years. That's a pretty good rate, if the company can sustain it.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Inwido maintained stable EBIT margins over the last year, all while growing revenue 5.0% to kr6.7b. That's progress.
You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.
The trick, as an investor, is to find companies that aregoing toperform well in the future, not just in the past. To that end, right now and today, you can checkour visualization of consensus analyst forecasts for future Inwido EPS100% free.
Like that fresh smell in the air when the rains are coming, insider buying fills me with optimistic anticipation. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.
Any way you look at it Inwido shareholders can gain quiet confidence from the fact that insiders shelled out kr2.2m to buy stock, over the last year. And when you consider that there was no insider selling, you can understand why shareholders might believe that lady luck will grace this business. Zooming in, we can see that the biggest insider purchase was by Håkan Jeppsson for kr992k worth of shares, at about kr56.69 per share.
As I already mentioned, Inwido is a growing business, which is what I like to see. While some companies are struggling to grow EPS, Inwido seems free from that morose affliction. The gravy on the mushroom pie is the insider buying, which has me tasting potential opportunity; one for the watchlist, I'd posit. Now, you could try to make up your mind on Inwido by focusing on just these factors,oryou couldalsoconsider how its price-to-earnings ratio compares to other companies in its industry.
As a growth investor I do like to see insider buying. But Inwido isn't the only one. You can see aa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here's Why I Think Inwido (STO:INWI) 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. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inInwido(STO:INWI). While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. 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 Inwido
The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. That means EPS growth is considered a real positive by most successful long-term investors. Inwido managed to grow EPS by 16% per year, over three years. That's a good rate of growth, if it can be sustained.
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. While we note Inwido's EBIT margins were flat over the last year, revenue grew by a solid 5.0% to kr6.7b. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
Fortunately, we've got access to analyst forecasts of Inwido'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting.
Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.
It's good to see Inwido insiders walking the walk, by spending kr2.2m on shares in just twelve months. And when you consider that there was no insider selling, you can understand why shareholders might believe that lady luck will grace this business. Zooming in, we can see that the biggest insider purchase was by Håkan Jeppsson for kr992k worth of shares, at about kr56.69 per share.
As I already mentioned, Inwido is a growing business, which is what I like to see. While some companies are struggling to grow EPS, Inwido seems free from that morose affliction. The gravy on the mushroom pie is the insider buying, which has me tasting potential opportunity; one for the watchlist, I'd posit. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if Inwido is trading on a high P/E or a low P/E, relative to its industry.
The good news is that Inwido 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. |
Here's Why You Should Invest in DENTSPLY SIRONA (XRAY) Now
DENTSPLY SIRONA Inc.XRAY has been benefitting from product launches and sustained focus on research and development (R&D) initiatives.
The Zacks Rank #2 (Buy) stock has rallied 31.7% compared with the industry’s 0.2% rise in a year’s time. The current level also compares favorably with the S&P 500 index’s 6.8% rise.
The company has an impressive earnings surprise history, having beaten estimates in the last three quarters, with a positive average earnings surprise of 5.6%.
What’s Favoring the Stock?
Product Launches
In recent times, DENTSPLY has launched products which are expected to significantly expand the company’s offerings.
Notably, recent launches include digital impression scanner PrimeScan, an important innovation in the CAD/CAM area, which is expected to help the company drive penetration of chairside dentistry. Another launch has been of Surefil One, which is a breakthrough in the restorative dentistry area. Per management, the product will be available for shipment in late 2019. Additionally, DENTSPLY launched a new generation of endodontic files TruNatomy. Another critical piece of the company’s sustainable foundation for growth is the differentiated clinical education program, which has been rolled out in the United States in the first quarter.
R&D Edge
DENTSPLY’s overall growth strategy rests on product innovation.
The company pursues several R&D initiatives to support technological development. In fact, DENTSPLY is creating a comprehensive R&D portfolio program which is expected to be completed by 2019. This apart, new products like WaveOne GOLD, X-Smart iQ, VDW and CONNECT Drive are expected to drive the company’s penetration in Europe. Growing preventive and restorative product portfolio is also expected to drive market expansion in the continent.
DENTSPLY SIRONA Inc. Price and Consensus
DENTSPLY SIRONA Inc. price-consensus-chart | DENTSPLY SIRONA Inc. Quote
Which Way Are Estimates Headed?
For the second quarter, the Zacks Consensus Estimate for DENTSPLY’s adjusted earnings is pegged at 62 cents, suggesting a year-over-year rise of 3.3%. The same for revenues stands at $1.03 billion, calling for a year-over-year decline of 0.7%.
For 2019, the Zacks Consensus Estimate for revenues is pinned at $4.01 billion, indicating growth of 0.6%. The same for earnings stands at $2.35, suggesting a rise of 16.9% from 2018.
Other Key Picks
A few other top-ranked stocks in the broader medical space are Veeva Systems VEEV, Penumbra PEN and CONMED Corporation CNMD, each carrying a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Veeva’s long-term earnings growth rate is expected to be 15.3%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
CONMED’s long-term earnings growth rate is estimated at 13.3%.
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 reportVeeva Systems Inc. (VEEV) : Free Stock Analysis ReportPenumbra, Inc. (PEN) : Free Stock Analysis ReportDENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis ReportCONMED Corporation (CNMD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is PepsiCo Stock a Buy Today?
Few dividend stocks have been as reliable over their history asPepsiCo(NASDAQ: PEP), the maker of Frito-Lay snacks, Quaker Foods, and beverages including its namesake brands.
The company is aDividend Aristocrat, having boosted its payouts annually for 46 straight years. Today, its dividend yield is 2.9%.
Over the last five years, Pepsi has outperformed both theS&P 500and rivalCoca-Colaon a total return basis, which includes dividends.
PEP Total Return Pricedata byYCharts
But is a PepsiCo stock a buy today? To answer that question, let's take a closer look at its business, how the stock stacks up as a dividend payer, and on value.
Though PepsiCo is most closely associated with soft drinks, the company is much more than that. Its business is divided into six segments: North America beverage (NAB), Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), and three international segments that market all of the company's products in their regions.
The NAB division, which includes Pepsi and other well-known brands like Tropicana, Gatorade, and Mountain Dew, is its biggest segment by sales. It brought in $21.1 billion in revenue in 2018, though that was up just 1% from the year before. Like other soft drink makers, Pepsi has struggled as the consumer view of sugary drinks and diet sodas has grown increasingly negative. The division's operating profit, adjusted for restructuring costs, has fallen 21% to $2.4 billion from 2016 to 2018, due to declining volume sales of carbonated soft drinks and rising commodity costs, among other issues.
While falling profits from NAB are clearly a concern, the snacks division has picked up much of the slack. FLNA's organic revenue (which strips out the effects of acquisitions, divestitures, and foreign currency movements) increased 3% in each of the last two years, and operating profit grew 9% over the last two years to $5 billion. That operating profit rose due to productivity savings and price increases, as brands like Doritos, Lay's, and Fritos carry significant pricing power.
Image source: Pepsico.
In international markets, the company's organic revenue grew by high single-digit percentages last year, reflecting the growth of the middle class in much of the world, as well as the strength of PepsiCo's brands, and its distribution and marketing muscle. QFNA, the company's smallest segment, continues to struggle in part due to a general decline in the popularity of ready-to-eat cereal.
After adjustments, Pepsi's net income has grown by 7% in each of the last two years, reaching $8.1 billion in 2018, and the company delivered strong results in its first quarter. Organic revenue rose 5.2%, and core constant-currency earnings per share increased 3%, driven by strong performances from Frito-Lay and the international divisions. Management is guiding for full-year organic revenue growth of 4%.
Given the company's status as a Dividend Aristocrat and its positioning as a defensive stock that's relatively resistant to recessions, many investors will consider buying shares of Pepsi stock at least in part because of its dividend.
Today, the company pays a dividend of $0.955 per quarter, which at current prices yields 2.9% -- a better yield than the S&P 500's average of 1.9%. Over the last five years, the company has raised its dividend by an average of 8% annually, though the hikes have ranged in size from just 3% earlier this year to 15% in 2018, which makes it harder to predict what its future dividend increases will look like. Based on the company's EPS of $5.66 over its last four quarters, its dividendpayout ratiois moderate at 67.4%, meaning the company should be able to continue its modest dividend increases, provided that profits keep growing.
Pepsi today trades at a price-to-earnings ratio of 23.6, slightly higher than the S&P 500's average of 21.8. That premium may stem from Pepsi's brand strength, size, defensive position, and long history of profits and dividends. Management forecasts that its core constant-currency EPS will fall by 1% this year, in part due to the company lapping certain asset-sale and refranchising gains, and also because it is expected to have a higher tax rate. For 2020, the analyst consensus calls for adjusted EPS of $5.97, up 5.5% from $5.66 last year, giving the stock a forward P/E of 22.4, based on expected earnings.
Pepsi's North American beverages and Quaker Foods businesses have been struggling, but the growth provided by its stronger North American snacks and international businesses has been enough to offset those weaknesses.
The company is investing in productivity and cost-savings programs as well as marketing. Even in declining markets, its distribution networks and brands offer it a competitive advantage as it rolls out new products such asflavored sparkling water drinksto meet consumers' changing tastes. Pepsi's also well positioned to make new acquisitions when it sees growth opportunities it can capitalize on, such as its $3.2 billionbuyout of SodaStreamlast year.
PepsiCo will never be a big growth stock, but for dividend investors, it looks like a solid buy. It offers a reliable, slowly growing dividend, growth opportunities in snacks and international markets, and a recession-resistant base of well-known consumer staples brands.
Even at a slightly higher valuation than the market, PepsiCo should delivery steady returns.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
Jeremy Bowmanhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Barrick Gold Corporation - Response to Acacia's Announcement
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION
TORONTO / ACCESSWIRE / June 26, 2019 /Further to its announcement dated 19 June 2019 ("the Barrick Announcement"), Barrick Gold Corporation (GOLD) (ABX.TO) ("Barrick" or the "Company") today provides the following response to the announcement made by Acacia Mining plc ("Acacia") on 24 June 2019 headed "Response to announcement from Barrick regarding the situation in Tanzania and Acacia's mine plans" ("the Acacia Announcement").
Barrick notes Acacia's stated position that:
• Barrick acquiring the remaining shares in Acacia it does not currently own would be an attractive solution for all key stakeholders subject to an offer price which is fair and commands the requisite support of shareholders;
• unless a resolution is achieved in the near term, Acacia's Tanzanian assets face further risks to their operations and ability to deliver against their plans; and
• in the absence of a negotiated settlement and only as a fallback, Acacia has sought to protect Acacia's business through the contractual arbitrations, but has noted that there are significant collateral risks in Acacia's subsidiaries continuing to seek to protect their businesses through maintaining the arbitrations pending a negotiated resolution.
Barrick continues to believe that the terms of its Proposal (as defined in the Barrick Announcement) reflect the fair value of Acacia, not taking into account any further discount which could be applied to reflect the significant risk inherent in the Acacia business and remaining uncertainties of any settlement with the Government of Tanzania.
In the absence of a take-private transaction, Barrick does not consider there is any credible alternative solution which will preserve, to the extent possible, value for all stakeholders.
Barrick has considered the statements made in the Acacia Announcement and has concluded that the Acacia Announcement contains no information of which Barrick was not already aware. Barrick therefore remains firmly of the view that certain assumptions made by Acacia in relation to its mine plans are not appropriately risked or supportable and that adjustments should be made. Whilst Barrick does not consider it necessary to respond to each and every statement made by Acacia in its announcement, it wishes to underline the following key points:
• Barrick notes the reference to Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards (2014), ("CIM Standards") in the Acacia Announcement, and fully endorses the Acacia 2018 Mineral Resources and Mineral Reserves Statement, which included the update to the classification of previously reported Indicated Mineral Resources to the Inferred Resources category at Bulyanhulu to reflect the wide spaced drill data for the Deep West zone of the orebody.
• Barrick maintains that the inclusion of the Deep West Inferred Mineral Resources inventory on an equal footing to the Measured and Indicated Mineral Resources within the Optimisation Study of Bulyanhulu materially overstates the value of the mine, is inconsistent with acceptable industry practice and not in compliance with the CIM Standards. If Acacia's Optimisation Study had been compliant with the CIM Standards, Acacia would not have been able to attribute any economic value to the Deep West Inferred Resources, as per the CIM 2014 Definitions and Standards which states that "Inferred Mineral Resources must not be included in the economic analysis, production schedules, or estimated mine life in publicly disclosed Pre-Feasibility or Feasibility Studies, or in the Life of Mine plans and cash flow models of developed mines"[1], the reasoning for which is that Inferred Mineral Resources are based on very limited information, have a materially lower level of confidence than Measured and Indicated Resources, may not prove to be economic when further drilling is completed, and thus cannot be assumed to fully convert to Mineral Reserves.
• Barrick also notes that Acacia's rebuttal of Barrick's views on conversion and dilution rates by reference to the 96.5% reconciliation factor of gold mined versus the historical Mineral Resource Model over the life of mine ("LOM") is misleading. The 96.5% historic reconciliation is reflective of Mineral Resources supported by 25m spaced drill sample data and development face sample data and thus should not be considered applicable to the expected conversion of Deep West Inferred Mineral Resources, which are based upon on an average of 200m spaced drill data. Barrick is content with the utilization of the Measured and Indicated Resources by Acacia in its Optimisation Study, but not the Inferred Resources in the Deep West. Furthermore, Barrick is of the opinion that the Deep West Inferred Mineral Resources still require full geotechnical stress modelling and therefore any current mine plans should acknowledge this related risk.
• The Barrick model attributes fair value to Bulyanhulu, reflecting the uncertainty of the Deep West Inferred Mineral Resources currently defined with drill data at an average spacing of 200m. This results in a grade of 10.2g/t during steady state UG production. This steady state grade profile is consistent with both the average LOM gold grade of 9.98 g/t achieved at Bulyanhulu and the Bulyanhulu Proven and Probable Underground gold Mineral Reserve grade of 10.7 g/t gold (as of 31 December 2018). This contrasts to the assumed grade in the Acacia Optimisation Study of 12.3g/t during steady state UG production. In Barrick's model, the Bulyanhulu grade drops to 8.6g/t over the LOM after taking into account the initial low grade Tailings Storage Facility ("TSF") feed.
• The Barrick production and dilution rates are justified through the uncertainty inherent in the Inferred Mineral Resource and the geotechnical stress regime, at 1.7-2.6km below surface. The previous dilution rates achieved at Bulyanhulu are not reflective of the anticipated increased geotechnical stress regime.
• Barrick notes that its additional US$50m capital expenditure modelled at Bulyanhulu and US$77m at North Mara, has been benchmarked against its own similar-sized underground operations in Africa and is not just based on conceptual studies. Notably, at North Mara the additional capital for the TSF is reflective of the increased rate of water drawdown rate required from the TSF and additional remediation work required to ensure safety of the existing TSF and construction of a fully compliant new lined TSF facility together with the appropriate land acquisition costs.
Barrick intends to continue to engage on these points, and on the merits of its proposal, with shareholders, Acacia's Board of Directors, its management and other stakeholders.
Takeover Code notes
The Proposal is subject to the satisfaction of a number of customary conditions, including receiving the recommendation of the Acacia board. Barrick reserves the right to waive all or any of such conditions at its discretion. The Proposal does not constitute an offer or impose any obligation on Barrick to make an offer. There can be no certainty that any offer for Acacia will ultimately take place, nor as to the structure of any such offer, should one be forthcoming, even if the pre-conditions are satisfied or waived. Barrick reserves the right to: (a) vary the form and/or mix of consideration referred to in this announcement and/or introduce other forms of consideration; and (b) make an offer or other proposal on less favourable terms than an exchange ratio of 0.153 Barrick shares for each ordinary share of Acacia referred to in this announcement with the agreement, recommendation or consent of the board of Acacia.
Barrick will have the right to reduce the number of new Barrick shares that Acacia minority shareholders will receive under the terms of the Proposal by the amount of any dividend (or other distribution) which is declared, paid or made by Acacia to Acacia shareholders.
This announcement does not amount to a firm intention to make an offer under Rule 2.7 of the Code, which regulates the making of offers for public companies listed in the UK. There can be no certainty any offer will be made, even if the pre-conditions referred to are satisfied or waived.
In accordance with Rule 2.6(a) of the Code, Barrick must, by not later than 5.00 p.m. on 9 July 2019, either announce a firm intention to make an offer for Acacia in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the UK Takeover Panel in accordance with Rule 2.6(c) of the Code.
A further announcement will be made as and when appropriate.
Enquiries:
[]
Website:www.barrick.com
Publication on Website
A copy of this announcement will be made available (subject to certain restrictions relating to persons resident in restricted jurisdictions) at www.barrick.com no later than 12.00 noon (London time) on 27 June 2019 (being the business day following the date of this announcement) in accordance with Rule 26.1(a) of the Code. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.
Overseas jurisdictions
The release, publication or distribution of this announcement in jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom should inform themselves about, and observe, any applicable requirements. The information disclosed in this announcement may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws of jurisdictions outside the United Kingdom.
The Barrick shares mentioned in this announcement (the "Shares") have not been and will not be registered under the US Securities Act of 1933 (the "Securities Act") or under the securities laws of any state or other jurisdiction of the United States. This announcement does not constitute an offer to sell, or the solicitation of any offer to buy the Shares in the United States. Accordingly, the Shares may not be offered, sold, resold, delivered, distributed or otherwise transferred, directly or indirectly, in or into the United States absent registration under the Securities Act or an exemption therefrom, nor shall there by any sale of the Shares in any jurisdiction in which such offer, solicitation or sale would be lawful.
Cautionary Statement on Forward-LookingInformation
Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans, or future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "will", "imply", "could", "possible", "seek", "propose", "may", "can", "should", "could", "would", and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to the future growth, results of operations, performance, business prospects and opportunities of Barrick and Acacia, including gold production from Acacia's mines; the Proposal; the integration of Acacia's business with the existing operations of Barrick; the impact of the Proposal on the financial position of Barrick and Acacia; impairment charges to be recorded by Barrick; and the outlook for Barrick's and Acacia's respective businesses and the gold mining industry generally based on information currently available. These expectations may not be appropriate for other purposes.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: expectations regarding whether the Proposal will be formally announced including whether the pre-conditions to formal announcement of the Proposal will be satisfied, and the anticipated timing of a formal announcement; expectations regarding whether the Proposal will be completed, including whether any conditions to completion of the Proposal will be satisfied, and the anticipated timing for completion; the combined company's future plans, business prospects and performance, growth potential, financial strength, market profile, revenues, working capital, capital expenditures, investment valuations, income, margins, access to capital and overall strategy; expectations regarding the receipt of any necessary regulatory and third party approvals and the expiration of all relevant waiting periods; the anticipated number of Barrick common shares to be issued as consideration for the Proposal, the expected total capitalization of Barrick on a consolidated basis following the Proposal and the ratio of the Barrick common shares to be held by Barrick shareholders and Acacia shareholders, respectively, following the Proposal; the anticipated benefits of the Proposal; expectations regarding the value and nature of the consideration payable to Acacia shareholders as a result of the Proposal; the anticipated mineral reserves of Barrick following completion of the Proposal; and the expenses of the Proposal; fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; risks associated with projects in the early stages of evaluation, and for which additional engineering and other analysis is required to fully assess their impact; the duration of the Tanzanian ban on mineral concentrate exports; the ultimate terms of any definitive agreement to resolve the dispute relating to the imposition of the concentrate export ban and allegations by the Government of Tanzania that Acacia under-declared the metal content of concentrate exports from Tanzania and related matters; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required infrastructure and information technology systems; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; adverse changes in our credit ratings; the impact of inflation; fluctuations in the currency markets; changes in national and local government legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in Tanzania and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; damage to the Company's reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company's handling of environmental matters or dealings with community groups, whether true or not; the possibility that future exploration results will not be consistent with the Company's expectations; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation and legal and administrative proceedings; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; business opportunities that may be presented to, or pursued by, the Company; our ability to successfully integrate acquisitions or complete divestitures; risks associated with working with partners in jointly controlled assets; employee relations including loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40- F/Annual Information Form on file with the United States Securities and Exchange Commission ("SEC") and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick's ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
[1]CIM Definition Standards for Mineral Resources & Mineral Reserves 2014, page 4 definition of "Inferred Mineral Resources".
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contactrns@lseg.comor visitwww.rns.com.
SOURCE:Barrick Gold Corporation
View source version on accesswire.com:https://www.accesswire.com/549950/Barrick-Gold-Corporation--Response-to-Acacias-Announcement |
Net Gaming Europe (STO:NETG) Shareholders Have Enjoyed A Whopping 793% 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!
The last three months have been tough onNet Gaming Europe AB (publ)(STO:NETG) shareholders, who have seen the share price decline a rather worrying 46%. But that does not change the realty that the stock's performance has been terrific, over five years. Indeed, the share price is up a whopping 793% in that time. Arguably, the recent fall is to be expected after such a strong rise. Of course what matters most is whether the business can improve itself sustainably, thus justifying a higher price.
We love happy stories like this one. The company should be really proud of that performance!
See our latest analysis for Net Gaming Europe
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.
During the last half decade, Net Gaming Europe became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
Investors in Net Gaming Europe had a tough year, with a total loss of 60%, against a market gain of about 11%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 55%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SE exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here's Why You Should Add Bruker (BRKR) to Your Portfolio
Bruker CorporationBRKR is well poised for growth on robust segmental performance within the Bruker Nano Surfaces group.
In the past year, shares of thisleading designer and manufacturer of proprietary life science and materials research systems have outperformed the industry and the S&P 500 index. The stock has gained 64.4% compared with the industry’s 26.9% rise and the S&P 500’s 7.8% increase.
The company has a market cap of $7.58 billion. It has an expected growth rate of 12.60% for the next five years.
Banking on solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors right now.
Strong Bruker Nano Surfaces: Of late, the Bruker Nano Surfaces group — which includes Bruker’s atomic force microscopy product — has been registering strong constant-currency revenue growth. This can be attributed to solid academic markets and strong industrial research demand for advanced X-ray and Nano Materials Analysis products. Acquisitions of Anasys and JPK (completed in April and July 2018 respectively) and Alicona look strategic, contributing significantly to the segment’s top line. Notably, in April 2019, the company closed the acquisition of RAVE, a semiconductor mass repair business, which is expected to contribute to the top line in the remainder of 2019.
Bruker Corporation Price
Bruker Corporation price | Bruker Corporation Quote
High MALDI Biotyper Potential:Bruker is expanding its MALDI Biotyper workflow’s menu to include selected high-value resistance testing for clinical microbiology research. In late 2018, the company acquired 80% stake in Hain Diagnostics. According to the company, the Hain portfolio is highly complementary to Bruker's market-leading MALDI Biotyper solution. It is also encouraging to note that demand for the MALDI Biotyper is increasing in applied markets, specifically for food, feed and beverage.
Growth in Preclinical Imaging Market:This division of the company is experiencing increasing customer demand for higher-strength pre-clinical magnetic resonance imaging (MRI) system. In this regard, the company’s recent collaboration with Champalimaud Foundation to develop the world's first 18 Tesla 11 cm bore, preclinical ultra-high field MRI system, seems strategic.
Which Way Are Estimates Heading?
For the second quarter of 2019, the Zacks Consensus Estimate for earnings is pegged at 31 cents, indicating 24% growth from the year-ago quarter. The same for revenues is pegged at $477.3 million, calling for a year-over-year decline of 7.6% from the prior-year quarter.
For 2019, the Zacks Consensus Estimate for earnings is at $1.62, suggesting 15.7% year-over-year growth from the year-earlier figure. The same for revenues is pegged at $2.04 billion, indicating 7.5% rise from the prior-year quarter.
Other Key Picks
A few other top-ranked stocks in the broader medical space are Masimo Corporation MASI, Penumbra PEN and The Cooper Companies COO. Each of these stocks carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Masimo’s long-term earnings growth rate is expected to be 16.1%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
Cooper Companies’ long-term earnings growth rate is estimated at 10.8%.
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 reportBruker Corporation (BRKR) : Free Stock Analysis ReportMasimo Corporation (MASI) : Free Stock Analysis ReportPenumbra, Inc. (PEN) : Free Stock Analysis ReportThe Cooper Companies, Inc. (COO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Inovalon Holdings, Inc.'s (NASDAQ:INOV) Balance Sheet Strong Enough To Weather A Storm?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Mid-caps stocks, like Inovalon Holdings, Inc. (NASDAQ:INOV) with a market capitalization of US$2.2b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. Today we will look at INOV’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Don’t forget that this is a general and concentrated examination of Inovalon Holdings’s financial health, so you should conduct further analysisinto INOV here.
Check out our latest analysis for Inovalon Holdings
INOV's debt levels surged from US$242m to US$1.0b over the last 12 months , which includes long-term debt. With this increase in debt, INOV's cash and short-term investments stands at US$122m , ready to be used for running the business. Moreover, INOV has produced cash from operations of US$98m during the same period of time, resulting in an operating cash to total debt ratio of 9.6%, signalling that INOV’s operating cash is less than its debt.
At the current liabilities level of US$141m, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.89x. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Healthcare Services companies, this is a suitable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
With total debt exceeding equity, INOV is considered a highly levered company. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. But since INOV is presently unprofitable, there’s a question of sustainability of its current operations. Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.
Although INOV’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. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for INOV's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Inovalon Holdings to get a more holistic view of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for INOV’s future growth? Take a look at ourfree research report of analyst consensusfor INOV’s outlook.
2. Valuation: What is INOV 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 INOV 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. |
PPG Industries Announces OneChoice UV Primer System Expansion
PPG Industries, Inc.PPG announced the expansion of the OneChoice UV primer system for incorporating a handheld ultraviolet (UV) LED cure light that will provide a swifter solution.The expanded system features the company’s advanced aerosol technology — SXA1081 UV primer and SUA1080 UV primer cleaner. It also includes the new UV and light protective gloves and glasses. Per the company, the new system will enable technicians to complete spot refinish repairs in only two-to-three minutes, which will boost cycle-time productivity and performance in automotive repair shops.The new system has been engineered by PPG Industries to help shops save time as well as boost throughput and productivity by leveraging the efficiency of UV processing. It has combined an industry-leading cure speed with high-build performance. It is already adopted by automotive repair shops across the United States that utilize the company’s refinish paint systems.Notably, SUA1080 UV primer product is a ‘shake and spray’. It requires no mixing and is quickly ready for sanding at the time of using the new handheld UV LED cure light. The light makes the curing process more convenient and effective compared with fixed-position lamp. Additionally, the SXA1081 primer cleaner enables technician to quickly clean the cured primer before sanding.Moreover, the OneChoice system works over properly cleaned fiberglass, aluminum, steel and galvanized steel, polyester body filler along with semi-rigid and rigid plastic. However, it does not work on polyethylene and polystyrene. The system is compatible with all original equipment manufacturer and PPG refinish paint systems and suitable for usage across the Unites States and Canada.Shares of PPG Industries have gained 10.7% in the past year, against the 33.5% decline of the industry.
PPG Industries is gaining from its cost cutting and restructuring initiatives, pricing actions and strategic acquisitions. It is executing significant restructuring actions to improve cost structure. The company expects to achieve roughly $70 million in cost savings in 2019.The company has also identified certain opportunities to further improve the operating efficiency and also sustain commercial excellence. It is finalizing a new cost-savings program, which targets full-year run-rate savings of roughly $125 million once fully implemented.However, PPG Industries faces cost pressure associated with raw materials and logistics. The company is also exposed to challenges from sluggish global industrial activities. It also faces headwinds from unfavorable currency translation.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
Zacks Rank & Key PicksPPG Industries currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the basic materials space are Materion Corporation MTRN, Flexible Solutions International Inc FSI and AngloGold Ashanti Limited AU. These stocks currently sport a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 21.8% in the past year.Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 144.4% in a year’s time.AngloGold has an estimated earnings growth rate of 90.6% for the current year. Its shares have rallied 116.8% in the past year.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 reportPPG Industries, Inc. (PPG) : Free Stock Analysis ReportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportAngloGold Ashanti Limited (AU) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Brief Commentary On nmcn plc's (LON:NMCN) Fundamentals
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
nmcn plc (LON:NMCN) 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 NMCN, it is a well-regarded dividend payer 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. For those interested in digger a bit deeper into my commentary, take a look at thereport on nmcn here.
NMCN's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that NMCN manages its cash and cost levels well, which is a key determinant of the company’s health. NMCN appears to have made good use of debt, producing operating cash levels of 4.62x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
NMCN 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 nmcn, I've put together three essential factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for NMCN’s future growth? Take a look at ourfree research report of analyst consensusfor NMCN’s outlook.
2. Historical Performance: What has NMCN'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 NMCN? 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. |
Brazil med school network Afya aims to raise $250 mln in U.S. IPO -sources
By Carolina Mandl
SAO PAULO, June 25 (Reuters) - Brazilian medical education group Afya SA hopes to raise at least $250 million in an initial public offering, three sources with knowledge of the matter said on Tuesday, the latest in a series of South American companies to seek U.S. listings.
The company's shares will trade on the Nasdaq in July, the sources added, requesting anonymity because discussions of the offering's size are still private.
Afya, which has been backed by Brazilian private equity firm Crescera Investimentos SA since 2016, intends to use the proceeds of the offering to acquire schools, enter new markets and develop products, according to a Monday filing, which did not mention the share offering size.
Besides raising funds to fuel Afya's growth, the company's partners intend to partially sell their stake in the educational group.
Afya, which has nearly 27,000 students, reported first-quarter net revenue of $37.1 million and net income of $12.7 million.
It will join the ranks of other listed Brazilian for-profit education companies such as Arco Platform Ltd, a seller of educational systems.
Afya will also become part of a wave of listings by high-growth Brazilian firms and tech startups in the United States, where it can take advantage of the large number of investors that specialize in fast-growing companies. That was the case of card processors StoneCo Ltd and PagSeguro Digital Ltd and Arco Platform.
Besides traditional graduation programs, Afya offers continuing medical education through digital and physical channels.
Investment banking units of Bank of America Corp, Goldman Sachs Group Inc, UBS Group AG, Banco BTG Pactual SA, XP Investimentos SA and Morgan Stanley will manage the share offering.
Plans for IPO were first reported by Reuters in April.
Afya did not immediately comment on the matter.
(Reporting by Carolina Mandl; Editing by Christian Plumb and Steve Orlofsky) |
Simon Property Adds AC Hotel by Marriott to Sawgrass Mills
When store closures and retailer bankruptcies are creating a wreck for retail REITs, industry leader,Simon Property Group Inc.SPG, surely knows how to battle the blues. The company has started construction to bring the AC Hotel by Marriott brand to the shopping destination — Sawgrass Mills.Slated to open in late 2020, the eight-story, 174-room hotel will be located near The Colonnade Outlets at Sawgrass Mills, close to its recent expansion. It will have modern guest rooms and public spaces, an AC Lounge, a communal creative space featuring a full bar serving local beers and hand-crafted cocktails, including the brand's signature Gintonic, together with tapas plates. Moreover, the property will provide a European-style breakfast as well as a 24-hour fitness center, per the company’s press release.Notably, Sawgrass Mills, the largest outlet and value retail shopping destination in the United States, is in the middle of a multi-million-dollar revamp. This refurbishment is aimed at creating a modern ambience throughout the shopping center.With more than 350 stores, this enclosed, air-conditioned and climate-controlled mall situated 30 minutes from the Miami International Airport and 15 minutes from Fort Lauderdale-Hollywood International Airport has a number of premium names in its roster. These include Nike NKE, Tommy Hilfiger, Michael Kors and Saks Fifth Avenue OFF 5TH, Bed Bath & Beyond BBBY, Target TGT, Marshalls and electronics superstore, BrandsMart USA.Further, with people flocking to this shopping center from around the globe, addition of the AC Hotel by Marriott is a strategic fit. Also, the move is in sync with the company’s strategy of adding mixed-use components to its shopping centers.In fact, Simon Property is navigating through the retail apocalypse by actively restructuring its portfolio, aiming at premium acquisitions and transformative redevelopments. Over the past years, the company has been investing billions to transform its properties focused on creating value and drive footfall at its properties. The transformational plans included addition of hotels, restaurants, residences and luxury stores.Additionally, the company is undertaking strategic measures to help online retailers fortify their physical presence, besides taking steps to support omni-channel strategy. Simon Property is exploring mixed-use development option which has gained immense popularity in recent years as it helps catch the attention of people who prefer to live, work and play in the same area. Nonetheless, implementation of such measures requires a decent upfront cost and therefore, may limit any remarkable growth in its near-term profit margins.Simon Property currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.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 reportTarget Corporation (TGT) : Free Stock Analysis ReportBed Bath & Beyond Inc. (BBBY) : Free Stock Analysis ReportNIKE, Inc. (NKE) : Free Stock Analysis ReportSimon Property Group, Inc. (SPG) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Deutsche Bank (DB) Incurrs Losses on U.S.-Leveraged Loans
Troubles have been mounting for the German lender,Deutsche BankDB — the latest blow being the sale of two risky corporate loans underwritten by the bank — per a Financial Times article. The bank has incurred multimillion-dollar losses in its U.S. investment banking arm after offloading the two loans underwritten for private equity clients.Per the source, the first loan worth $340 million, backing the leveraged buyout of Smart & Final grocery chain by Apollo Global Management, was priced at a discount of 90 cents on the dollar by a group of banks led by Deutsche Bank, on the one hand. Moreover, such deal eroded the fees to be earned by the bank on the transaction. Though the amount of loss was not known, it was incurred as investors refrained from buying the debt under the prior terms offered.On the other hand, the second loan worth €1.5 billion, which funded the buyout by Advent International, a private equity group of a plastics business owned by Evonik was also priced at a discount of 95 cents on the dollar as investors were not supportive.However, Deutsche Bank refrained from commenting on the deals.The current losses are feared to hit the bank’s chief executive officer (CEO) Christian Sewing’s restructuring initiatives for boosting the company’s returns. Notably, Deutsche Bank is mulling to make cutbacks in the U.S. equities trading business, including prime brokerage and equity derivatives. The bank has also planned to create a ‘bad bank’, a measure taken up by failed U.K. banks post the 2008 financial crisis.The newly-formed unit would hold tens of billions of Euros of assets worth around €50 billion as the bank’s CEO is trimming its investment banking division. This includes Sewing’s plans to shrink or shut down the equity and rates trading businesses outside continental Europe completely, and focus on the core transaction banking and private wealth management business.Notably, the losses incurred on loans are expected to drain returns from debt originations of the bank. In the first quarter of 2019, debt arranging fees declined 8%, leading to a 13% drop in total net revenues of the investment banking unit.Our ViewpointDeutsche Bank is under pressure to trim its investment banking division, following the collapse of merger talks with domestic rival Commerzbank. Though Deutsche Bank’s restructuring efforts, including cost-saving measures, look encouraging, it is difficult to determine how much the bank will gain, considering the prevalent headwinds. Furthermore, dismal revenue performance is another concern.Deutsche Bank currently carries a Zacks Rank #3 (Hold).Shares of Deutsche Bank have lost around 8.8% on the NYSE, in the last six months, as against the industry’s growth of 7.8%.
Stocks to ConsiderHSBC Holdings plc HSBC has been witnessing upward estimate revisions for the past 60 days, with the company’s shares gaining nearly 1% on the NYSE, in six months’ time. It carries a Zacks Rank of 2 (Buy), at present. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.DBS Group Holdings Ltd DBSDY has been witnessing upward estimate revisions for the past 60 days. Over the past six months, this Zacks #1 Ranked company’s shares have been up more than 9% on the NYSE.Banco Latinoamericano de Comercio Exterior, S.A. BLX has been witnessing upward estimate revisions for the past 60 days. In the past six months, this Zacks Rank #1 company’s shares have been up more than 19% on the NYSE.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 reportBanco Latinoamericano de Comercio Exterior, S.A. (BLX) : Free Stock Analysis ReportDBS Group Holdings Ltd (DBSDY) : Free Stock Analysis ReportHSBC Holdings plc (HSBC) : Free Stock Analysis ReportDeutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Grocery Outlet Gets a Post-IPO Bump, but How Good Is It Really?
West Coast discount supermarketGrocery Outlet(NASDAQ: GO)recently completed its initial public offering (IPO) and soared as much as 40% above its starting price. Thecloseout and overstock business modelhas been a successful one in the last decade as bargain shoppers continue to flock to the treasure-hunt-style experience, so it's no surprise that investors piled into the new stock as well. But Grocery Outlet has a lot to prove, and the current valuation is assuming quick runaway success. I'm not sure the rosy outlook is warranted quite yet.
The Grocery Outlet chain operates as a franchisor, with each store independently and locally owned and operated. Corporate takes care of purchasing, which allows its franchisees to sell goods typically 40% to 70% off a typical grocery retailer. The resulting shopping experience is a revolving door of mystery inventory, similar to what one would expect fromTJX Companies' TJ Maxx orRoss Stores.
Sounds great. However, because Grocery Outlet is a franchisor, it needs to somehow pay its partners. Specifically, it shares 50% of gross profit on a per-location basis with store owners. These independent operators are responsible for staffing, local advertising, and other day-to-day operating expenses. But because each store is independently owned, there could be high variability in each location's actual performance -- a risk the company calls out in its prospectus.
The learning curve for new Grocery Outlet openings shows up in the numbers. From the beginning of 2015 to the end of 2018, the company grew its store count by an annual growth rate of 10.1%. Over that same period, comparable-store sales (a combination of foot traffic and average customer ticket size) increased 4.2% a year. All else being equal, that should equate to 14.3%-a-year revenue growth. However, total revenue andadjusted earnings before interest, taxes, depreciation, and amortization (EBITDA)was up an average of only 12% and 12.4% a year, respectively. That implies that, while well-established stores are doing well, new store openings underperform the average. With Grocery Outlet planning on expanding new locations at about a 10%-a-year rate going forward (based on an end-of-2018 store count of 316), there is a possibility that these plans drag down results in the short term. With the stock trading at 145 times trailing-12-month earnings, I'm not sure past performance warrants such a high valuation.
Image source: Grocery Outlet.
Appealing to bargain hunters can be a profitable model, but doing so in the grocery business is different than retail. Add to that the fact that Grocery Outlet is a franchisor and shares gross profit with its franchisees, and it all adds up to pretty slim margins. This is another reason to eye the stock's lofty premium with some skepticism.
[{"Metric": "Adjusted net income", "2016": "$33.8 million", "2017": "$48.7 million", "2018": "$49.3 million", "Q1 2019": "$9.95 million"}, {"Metric": "Adjusted net income margin", "2016": "1.8%", "2017": "2.3%", "2018": "2.2%", "Q1 2019": "1.6%"}]
Data source: Grocery Outlet.
Granted, shifting the bulk of operating expenses onto franchisees can mean Grocery Outlet investors get to enjoy the most profitable aspect of the business and leverage earnings in the years to come as new stores open up. However, even when "adjusting" net profits by backing out interest and tax expenses in the above chart, Grocery Outlet's margins are slim. Over the last 12 months, off-price retailers TJX Companies' and Ross Stores' profit margins of 7.7% and 10.5%, respectively, far surpass the grocery chain's performance.
Perhaps things will look sunnier when Grocery Outlet reports on its second quarter of 2019. After all, the company has said it is using the estimated $346 million in proceeds from its IPO to pay off a term loan. That should help reduce interest expense, which totaled $6.0 million in 2018 and $1.4 million in the first quarter of 2019.
However, even after using up its stock proceeds to reduce liabilities, this grocery chain still carries substantial debt. Listed at $873 million pre-IPO, Grocery Outlet says its total debt will be $513 million going forward. That is a hefty sum considering cash on the books totals just $19.4 million. Thus, interest expense will continue to weigh down the bottom line for some time.
One could argue that Grocery Outlet doesn't need cash to expand as the onus lies with prospective franchisees to pay up-front opening costs. However, the chain offers financing to help new store owners get up and running (which means more debt). Plus, the fact remains that this discount grocery chain is priced high for the modest expansion the company expects to pull off in the immediate future. After a hot IPO, investors should tread lightly.
More From The Motley Fool
• 10 Best Stocks to Buy Today
• The $16,728 Social Security Bonus You Cannot Afford to Miss
• 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own)
• What Is an ETF?
• 5 Recession-Proof Stocks
• How to Beat the Market
Nicholas Rossolillohas no position in any of the stocks mentioned. The Motley Fool recommends The TJX Companies. The Motley Fool has adisclosure policy. |
Fed and Trade Pull Down U.S. Treasury Yields: 5 Safe Picks
Wall Street plummeted on Jun 25 as uncertainty rose out of a possible rate cut by the Fed in July and a positive outcome from the upcoming meeting between President Donald Trump and Chinese premier Xi Jinping. All three major stock indexes --- the Dow, S&P 500 and Nasdaq Composite --- plunged 0.7%, 1% and 1.5%, respectively. Notably, this is the worst single-day loss recorded by these indexes so far in June.As investors’ appetite for risky assets like equities weakened to a large extent, flow of funds started shifting from equities to bond markets. Consequently, yields on safe-haven U.S. government bonds declined significantly.U.S. Government Bond Yields TumbleOn Jun 25, yield on 10-year U.S. Treasury Note dropped 2.8 basis points to 1.994%, its lowest since Nov 8, 2016. The yield on the benchmark sovereign bond is however positively linked to mortgage rates. Meanwhile, yield on 2-year U.S. Treasury Note closed at 1.736% after touching an intraday low of 1.703%. Yield of this bond is sensitive to expectations of interest rate changes.Moreover, yield on long-term, 30-year U.S. Treasury Note slid 2.5 basis points to 2.527% --- lowest since Oct 25, 2016. According to Bloomberg, year to date, investors have poured $72 billion in fixed-income ETFs. Total asset allocation for debt securities hit an all-time high of $741 billion.Fed Dampens Immediate Rate Cut HopeOn Jun 25, in comments at the Council of Foreign Relations, Fed chairman Jerome Powell reiterated his monetary stance declared last week. Powell said that the downside risks to the U.S. economy have increased. Consequently, a growing number of Fed policymakers are looking for a rate cut.However, he said that the Fed will take a wait-and-see approach to monitor how fast economic conditions are changing in recent times. The central bank also reaffirms its view that inflation will rise to 2% although it may take more time. Therefore, a rate cut in July cannot be taken for granted.More importantly, James Bullard, president of the St. Louis Fed, who was most vocal about a rate cut in Fed’s FOMC meeting held last week, said that rate cut of a magnitude of 50 basis points is out of question at present. If a reduction does take place at all, it will be of maximum 25 basis points. Notably, per the CME FedWatch, traders have currently assigned 100% probability to a rate cut at least once in July.U.S.-China Trade Conflict LingersPresident Donald Trump is scheduled to meet his Chinese counterpart Xi Jinping during the two-day G-20 summit in Japan later this week. Market participants are expecting that some sort of positive outcome will appear from this meeting, although a trade deal is a long way to go.However, on Jun 24, Bloomberg reported that U.S. officials have little expectation from this meeting since the Trump administration is sticking to its demand that China should implement significant economic reforms, which will give U.S. companies a level playing field, and protect precious intellectual properties.However, the Chinese Communist regime is highly unlikely to accept these demands. A deadlock may compel Trump to impose 25% tariff on another $300 billion Chinese goods later this year.Our Top PicksUnder these circumstances, rate-sensitive investments like utilities, REITs and health care, with strong growth potential, will be prudent. We narrowed down our search to five such stocks, each carrying a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.The chart below shows price performance of our five picks year to date.
Middlesex Water Co.MSEX owns and operates regulated water utility and wastewater systems. It operates in two segments, Regulated and Non-Regulated. The company has expected earnings growth of 10.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 5.9% over the last 60 days.Atlantic Power Corp.AT owns and operates a fleet of power generation assets in the United States and Canada. The company has expected earnings growth of 50% for the current year. The Zacks Consensus Estimate for the current year has improved by 118.2% over the last 60 days.The Howard Hughes Corp.HHC owns, manages and develops commercial, residential and hospitality operating properties in the United States. The company has expected earnings growth of 198.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 369% over the last 60 days.Safehold Inc.SAFE is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. The company has expected earnings growth of 125% for the current year. The Zacks Consensus Estimate for the current year has improved by 8.3% over the last 60 days.Genesis Healthcare Inc.GEN owns and operates skilled nursing facilities and assisted/senior living facilities in the United States. The company has expected earnings growth of 53.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 23.4% over the last 60 days.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 reportAtlantic Power Corporation (AT) : Free Stock Analysis ReportMiddlesex Water Company (MSEX) : Free Stock Analysis ReportGenesis Healthcare, Inc. (GEN) : Free Stock Analysis ReportHoward Hughes Corporation (The) (HHC) : Free Stock Analysis ReportSafety, Income and Growth, Inc. (SAFE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Should You Consider Infotel SA (EPA:INF)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Attractive stocks have exceptional fundamentals. In the case of Infotel SA (EPA:INF), there's is a notable dividend payer 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 Infotel here.
INF'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 INF manages its cash and cost levels well, which is a crucial insight into the health of the company. INF seems to have put its debt to good use, generating operating cash levels of 4521x 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.
Income investors would also be happy to know that INF is a great dividend company, with a current yield standing at 4.1%. INF has also been regularly increasing its dividend payments to shareholders over the past decade.
For Infotel, I've compiled three important factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for INF’s future growth? Take a look at ourfree research report of analyst consensusfor INF’s outlook.
2. Historical Performance: What has INF'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 INF? 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. |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.