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U.S. Secretary of State Pompeo promises to ensure oil supplies to India after Iranian crude ban
NEW DELHI (Reuters) - The United States will ensure India receives adequate supplies of oil as New Delhi stops buying Iranian crude in line with U.S. sanctions, U.S. Secretary of State Mike Pompeo said on Wednesday.
India, the world’s third-biggest oil importer, bought about 184,000 barrels per day (bpd) of oil from the United States between November 2018 and May 2019, compared with about 40,000 bpd in the same period a year earlier, tanker data obtained from shipping and industry sources shows.
(Reporting by Neha Dasgupta; Writing by Alasdair Pal; Editing by Martin Howell) |
The Zacks Analyst Blog Highlights: Shopify, Amazon and Walmart
For Immediate Release
Chicago, IL –June 26, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Shopify SHOP, Amazon AMZN and Walmart WMT.
Here are highlights from Tuesday’s Analyst Blog:
Buy Shopify (SHOP) Amid Analyst Optimism?
Shopify has been making noise as a possible Amazon alternative, and analysts are giving the Canada-based company a fighting chance against the ecommerce giant. Shopify unveiled its “shopper fulfillment network” last week that will allow third party merchants to better compete with Amazon’s delivery times. Analysts received the news of Shopify’s latest endeavor with open arms and the stock spiked 7% last week, adding to an already successful year of growth for the company. Through this latest venture, the company is acquiring new warehouses in various parts in the U.S and Canada. In addition, Shopify is also utilizing AI technology in order to get consumers their goods at a faster and more efficient rate.
Analyst Hype
Consumer packaged goods is one area where analysts at Rosenblatt believe that Shopify can thrive. This allows a business to take its product directly to the consumer and avoid competition from the likes of Amazon or Walmart. Analysts at the firm went on to say “Consumer packaged brands have long been squeezed on the margin (pun intended) by Amazon and Walmart,” furthering the notion of an underlying opportunity for a business such as Shopify. This untapped facet of the industry could catapult Shopify into a position where it can actually compete with the likes of Amazon for a significant portion of the market.
Additionally, Summit Insights pointed out that Shopify’s new network can also appeal to merchants who are wary of Amazon’s white labeling practices. White labeling is a product or service produced by one company that other companies rebrand to make it appear as if they had made it. The firm commented “Merchants have expressed reservations when doing business on Amazon’s platform including concerns of Amazon white labeling their own product to compete,” displaying the existential precautious sentiment towards the Amazon practice. Summit went on to say that Shopify provides an appealing alternative to Amazon.
Bottom Line
Shopify is currently listed at a Zacks Rank #3 (Hold) with a Style Score of A in Growth. Our Zacks Consensus Estimates are currently calling for 100% earnings growth on top of a 42.9% revenue increase for the current quarter. This colossal triple digit earnings growth is expected to continue through the next fiscal quarter and decelerate to double digit growth for the remainder of this year and through the next.
Shopify also has a strong earnings history, boasting an average earnings surprise of 176%. And just last quarter, the company was able to beat our consensus estimate by 280%.
Furthermore, Shopify has been able to leave the broader Computer Software-Services industry in the rear-view mirror, outpacing its peers since 2016.
While Shopify’s growth has been undeniably remarkable, the stock does face some valuation issues. Shopify has a Zacks Style Score of F in Value, as it is currently trading at 546X its forward earnings to go along with a PEG ratio of 23.08. Both metrics are substantially higher than the industry averages. While potential investors will be paying for the stock’s growth up front, Shopify has the potential to sustain its incredible growth if they can continue to create innovative initiatives that can put them into serious competition with the likes of Amazon.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportShopify Inc. (SHOP) : Free Stock Analysis ReportWalmart Inc. (WMT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Sea Limited's (NYSE:SE) Liquidity Good Enough?
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Investors looking for stocks with high market liquidity and little debt on the balance sheet should consider Sea Limited (NYSE:SE). With a market valuation of US$15b, SE is a safe haven in times of market uncertainty due to its strong balance sheet. These companies are resilient in times of low liquidity and are not as strongly impacted by interest rate hikes as companies with lots of debt. Assessing the most recent data for SE, I will take you through the key ratios to measure financial health, in particular, its solvency and liquidity.
View our latest analysis for Sea
SE's debt level has been constant at around US$768m over the previous year which accounts for long term debt. At this stable level of debt, SE's cash and short-term investments stands at US$2.4b to keep the business going. Moving on, operating cash flow was negative over the last twelve months. For this article’s sake, I won’t be looking at this today, but you can examine some of SE’soperating efficiency ratios such as ROA here.
Looking at SE’s US$1.4b in current liabilities, it appears that the company has been able to meet these commitments with a current assets level of US$3.2b, leading to a 2.26x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Entertainment companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
SE’s level of debt is appropriate relative to its total equity, at 38%. SE is not taking on too much debt commitment, which can be restrictive and risky for equity-holders. SE's risk around capital structure is low, and the company has the headroom and ability to raise debt should it need to in the future.
Although SE’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings. This may indicate room for improvement in terms of its operating efficiency. However, the company exhibits an ability to meet its near-term obligations, which isn't a big surprise for a large-cap. I admit this is a fairly basic analysis for SE's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Sea to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SE’s future growth? Take a look at ourfree research report of analyst consensusfor SE’s outlook.
2. Valuation: What is SE 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 SE 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. |
ZOM: One Instrument; Multiple Solutions
ByJohn Vandermosten, CFANYSE:ZOM85 million American families own a pet, mostly split between 60 million dog owners and 47 million cat owners1. These animal companions need health care just like people do. The high level of ownership stimulates the $19 billion2in estimated veterinary care spending and the mid-single digit growth rate that the industry is experiencing. As pets become a more important part of the family, the quality of their health care is also receiving more attention. There is a parallel between improvements in therapies and diagnostics for human and animal health. New technologies are enabling higher quality testing to more cheaply and accurately figure out what is wrong with our pets when they get sick.The veterinarian has a big job to do. He or she must interact with a variety of species and find a remedy for sick animals that cannot verbally communicate and balance this with owners are frequently in a hurry and price sensitive. Time and cost are as important as an accurate diagnosis and effective treatment. One of the primary tools used in the effort to address these concerns are diagnostic tests, which are critical for evaluating and identifying a condition. Some tests can be performed in the clinic; however, many of the more complex assessments must be sent out to the lab. While the reference lab can provide an accurate result, turnaround takes a few days and frequently the patient needs an immediate diagnosis. Outsourcing test results requires additional work including another review of the case after results are received, contacting the owner, and issuing a prescription. Many times the prescribed food or therapy will be purchased elsewhere rather than at the clinic, resulting in lost revenue.What should a veterinarian do?Zomedica Pharmaceuticals (ZOM) is a companion animal diagnostic and therapeutic development company with a full pipeline of products that target the most important unmet needs in veterinary medicine. The company’s lead candidate is TRUFORMA™, a point of care (PoC) biosensor platform that is initially being developed to test thyroid and adrenal disorders. Other diagnostics in development include ZM-020, a PoC pathogen detection platform being developed in a partnership with Seraph Biosciences as well as ZM-017 and ZM-022, both canine cancer liquid biopsy platforms being developed with Celsee, Inc. to detect circulating tumor cells associated with cancers of the bone, connective and blood tissue.Zomedica also has a full portfolio of therapeutics that are in the pilot study stage. The candidates are pharmaceuticals that have been approved for human use; however, the method of administration and dosages have not been tailored to companion animals and frequently a compounding pharmacy is required to create what is needed. The company is seeking to develop new formulations of approved human drugs that provide the proper dosage and format for animals. The four therapeutics in the pipeline include anti-diarrheal metronidazole oral suspension and tablet, transdermal methimazole for hyperthyroidism and transdermal fluoxetine for behavioral disorders. These ambitions have received recognition from the investment bankH.C. Wainwright & Co.and analystDr. Ramakanthwho has highlighted the company’s diversified pipeline, 2020 expected launch of two PoC diagnostic platforms and high 10-year compound annual growth rate of 47%.View Exhibit I- Zomedica Diagnostic and Therapeutic PipelineZomedica’s diagnostics can fill an unmet need in veterinary practices, providing not only a rapid and accurate result, but also allowing the veterinarian to generate higher revenues through the immediate sale of the prescribed food or therapeutic.Trends and StatisticsThere are a number of trends driving the increase in demand for pet products and services, including medicines and diagnostics. In the United States and in other parts of the world such as China, disposable income is increasing, allowing for greater rates of pet ownership. Veterinary care has advanced, allowing pets to live longer lives and older dogs and cats need more care compared to younger ones.Pet ownership is high and surveys find from 49 percent to 68 percent3of households own a pet and that pet industry spending has increased from $51 billion in 2011 to almost $73 billion in 20184. Of this total, veterinary care was estimated to be $17.1 billion in 2017 and $18.1 billion in 2018. The APPA forecasts that this segment will grow 4.5% in 2019. The diagnostics subcategory of diagnostics has even higher expectations with MarketandMarkets citing an8.8%compound annual growth rate until 20235. The APPA also noted that Millennials are the largest pet-owning demographic and they are willing to pay more for the health and welfare of their pets compared to previous generations.Corporate StrategyZomedica’s goal is to find gaps in the diagnostic and therapeutic offerings of veterinary practices and fill them with products that increase effectiveness and profitability. Based on their experience in practice, the company’s veterinary management identified diagnostic needs that can be served with PoC testing that can provide reference lab sensitivity and specificity with a turnaround time of less than 15 minutes. This will allow the practice to prescribe more quickly and accurately for the pet patient, retaining drug revenues and reducing follow up work. On the therapeutic side, Zomedica’s strategy is to develop products that are now commonly synthesized in the compound pharmacy and make them available in dosages and formats appropriate for dogs and cats. This approach seeks to develop therapeutics with the appropriate format, formulation and dosage. Veterinarians can ensure higher compliance with prescribed therapies and dispense a broader variety of medicine at their practice to retain a portion of the revenues when immediately writing a script.TRUFORMAWhile Zomedica initially began as a therapeutics company with the goal of adding complementary diagnostics, the more direct pathway to market for animal diagnostics propelled this business segment into the lead. The rapid pace of development is possible as there are no direct regulatory requirements from the FDA Center for Veterinary Medicine (CVM) or the U.S. Department of Agriculture (USDA). However, all of the verification and validation records need to be maintained if they are requested by the regulatory authorities. Of the four diagnostic contenders, TRUFORMA emerged as the company’s lead candidate in early 2019 due to partner Qorvo’s substantial development resources and is expected to be available for launch in 1Q:20.View Exhibit II- TRUFORMA TechnologyTRUFORMA is a diagnostic platform that fits on the tabletop and employs bulk acoustic wave (BAW) technology to isolate a target bandwidth and detect a potential immunological reaction. If a reaction takes place, the mass of the combined particle is greater and the sensor located in the cartridge detects a change in the oscillation frequency, indicating a positive test. As compared to commonly used optical sensors, the acoustic approach is substantially more precise. The higher level of precision provided by the BAW approach can bring gold standard quality to PoC in what was previously only available in the reference lab. Zomedica is building the instrument in conjunction with Qorvo Biotechnologies, LLC, a wholly owned subsidiary ofQorvo, Inc., a leader in radio frequency solutions for mobile and other devices.View Exhibit III- TRUFORMA Device Size ComparisonThe arrangement with Qorvo required an initial $1 million upfront payment and issuance of $3.9 million in shares for the exclusive worldwide license to commercialize the device over a 10 year period. Further milestone payments are required if future goals are met and they total approximately $10 to $11 million. Qorvo is responsible for the manufacture and supply of the equipment and consumables to Zomedica.The device employs sound waves to detect changes in mass that signal an immunological reaction. A disposable cartridge with an assay specific sensor is used to contain the reaction with the sample. When a sample antigen which indicates the presence of a disease binds to the antibody that is specific to that antigen, the mass of the combined molecule increases. TRUFORMA is able to detect this change through a frequency shift and present a test result.View Exhibit IV- Mass Increase from Antibody-Analyte Binding6Steps for conducting test:1) Blood sample taken from animal patient2) Sample is added to cartridge3) Cartridge is inserted in machine4) Patient characteristics are entered into TRUFORMA instrument5) Test is run6) Test result appears on screen and is shared with printer and Zomedica data portalView Exhibit V- TRUFORMA Instrument with CartridgeDeveloper Qorvo is using the same technology for human diagnostic development due to the superior properties of BAW compared to the standard of optical testing. When compared to reference lab optical diagnostic readers, substantial additional cost and complexity are required to achieve the same level of sensitivity and specificity that can be obtained using BAW technology.Zomedica has made substantial progress this year with its validation work, focusing on gold standard comparisons with reference lab diagnostics7which have demonstrated greater than 95% analytical range correlation. Feasibility studies have also been completed using both spiked and real life samples, both of which are compared to the gold standard. Zomedica plans to work with several key opinion leaders (KOLs) to determine the performance standards that are appropriate for veterinary medicine. The company is currently conducting optimization work now that is balancing the tradeoff between time to result and specificity and it appears that accurate output can be generated in less than 15 minutes. After the optimization steps are completed, then verification will take place to determine performance for the assays and reference ranges. When verification is completed, validation will begin and the instruments will be placed in the field where results will show if TRUFORMA is achieving the consistent real-world performance that is expected.A beta launch is planned when commercialization begins so that any bugs in the system can be resolved before the machine is widely available. Targeted groups include top academic institutions, emergency referral centers and endocrinologists. Publication of articles and white papers from KOLs that will discuss the capabilities of TRUFORMA and highlight the benefits it can provide to a veterinary practice are anticipated. The publication efforts will focus on peer reviewed journals. The early part of the launch will attempt to penetrate TRUFORMA with referenceable physicians and institutions that are recognized as experts and leaders who can further validate the technology. Zomedica has the benefit of IDEXX Laboratories Incorporated’s former US Head of SalesBruk Herbstas its Chief Commercial Officer. He has over 20 years’ experience developing customer relationships and launching new products among other accomplishments.The TRUFORMA platform is expected to initially offer five different tests that are focused on thyroid and adrenal disorders. Future cartridges can be designed to address a wide variety of additional tests including gastrointestinal (GI) panels, fructosamine detection for managing diabetes and the identification of novel biomarkers that are not currently available in the marketplace. Multiplexing is also possible. Below are the current tests in development.View Exhibit VI- Diagnostic Tests Planned for TRUFORMAZomedica has identified both diagnostics and therapeutics that can fill holes in the veterinary practice to address common priorities. The goal for TRUFORMA and the rest of the diagnostic portfolio is to accelerate turnaround time, provide accurate PoC diagnosis, provide a better customer experience and maintain revenues for the veterinary practice. To support the optimization, verification and validation activities necessary to attain the commercialization stage, Zomedica completed a $12 million preferred share transaction in the second quarter. Funds are sufficient to complete development of TRUFORMA and provide a valuable tool for today’s veterinarian.Milestones• Finalization of TRUFORMA instrument design - Completed• Completion of feasibility testing of first arrays – 2H:19• Optimization work balancing sensitivity, specificity and test duration – 2H:19• Completion of assay verifications – 4Q:19• Completion of assay validations – 1Q:20• Market launch of TRUFORMA – 1Q:20SummaryToday’s veterinary practice faces multiple competing priorities in the clinic including demanding and selective pet owners, lost revenue, timely results and the need for greater precision in diagnostic testing. A tool that has the potential to address all of these issues is being developed by Zomedica. While the company’s first candidates for advancement were therapeutics, they require a more structured regulatory process to obtain the required FDA-CVM marketing approval. Facing this extended timeline, the company identified several diagnostic candidates that have a more streamlined pathway to market and do not require regulatory approval. Zomedica’s partner Qorvo has substantial resources which have been able to propel TRUFORMA into the lead candidate position. The collaboration is conducting internal feasibility, verification and validation efforts with a detailed plan to advance the diagnostic instrument through these processes. Commercialization efforts will obtain the recognition of key opinion leaders and institutions in conjunction with peer reviewed articles and white papers demonstrating TRUFORMA’s comparison with gold standard reference lab diagnostics.The goal of Zomedica’s efforts in diagnostic and therapeutic development is to provide the practice veterinarian with the ability to obtain reference lab quality at point of care. This has a number of benefits to the practice including better patient and customer service through timely and accurate diagnosis, maintenance of drug and food revenues at the practice and efficiency by minimizing the need for follow up. The company expects to complete assay verification in late 2019 and complete assay validation in 1Q:20 and launch the PoC biosensor platform in the first quarter of 2020. After a beta launch to work out bugs, TRUFORMA will be available widely for veterinary practices throughout North America helping alleviate the multitude of pressures they face every day.SUBSCRIBE TO ZACKS SMALL CAP RESEARCHto receive our articles and reports emailed directly to you each morning. Please visit ourwebsitefor additional information on Zacks SCR.DISCLOSURE: Zacks SCR has received compensation from the issuer directly or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks provides and Zacks receives quarterly payments totaling a maximum fee of $30,000 annually for these services. Full DisclaimerHERE._______________________________1. Source: American Pet Products Association's 2017-2018 National Pet Owners Survey.2. Source: The American Pet Products Association’s 2019 Annual Industry-Wide Spending Figures3. Source: American Pet Products Association (68%); American Veterinary Medical Association (57%), Census American Housing Survey (49%).4. Source: American Pet Products Association. https://www.americanpetproducts.org/press_industrytrends.asp5. Source: MarketsandMarkets 2018 Veterinary Diagnostics Market by Product Report6. Source: Qorvo Immunoassay Technology Landscape primer. A = analyte; D = detection enzyme; C = competitor7. The comparison system in the reference lab is theSiemens Immulite2000 XPi Immunoassay System. |
Stock Market News For Jun 26, 2019
Markets closed in the red on Tuesday after Fed Chief Jerome Powell stated that the central bank was still not clear about reducing the benchmark interest rate. He stated that the Fed wanted to carefully monitor the economy and look for long-lasting weaknesses in order to avoid lowering interest rates in haste. The three major benchmarks closed in the negative territory.
The Dow Jones Industrial Average (DJI) decreased 0.7%, to close at 26,548. The S&P 500 decreased 1% to close at 2,917. The tech-laden Nasdaq Composite Index closed at 7,885, losing 1.5%. The fear-gauge CBOE Volatility Index (VIX) increased 3.5% to close at 15.80. Decliners outnumbered advancers on the NYSE by a 1.37-to-1 ratio. On Nasdaq, a 1.29-to-1 ratio favored declining issues.
How Did the Benchmarks Perform?
The Dow dipped 179 points to post its worst single-day drop since May 31. Losses for the 30-stock index were broad. Shares of Microsoft MSFT and Nike NKE declined 3.2% and 2.2%, respectively and weighed on the Dow. Both the stocks carry a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 lost 28 points to end in negative territory. Of the 11 major sectors of the S&P 500, 10 ended in the red, with communication services and technology stocks leading the decliners. Communication Services Select Sector SPDR Fund (XLC) and Technology Select Sector SPDR Fund (XLK) decreased 1.9% and 1.8%, respectively on Monday.
Meanwhile, the Nasdaq dropped 121 points to also close in the red for the third consecutive session. Losses for the Nasdaq were broad-based. Further, shares of Adobe ADBE dipped 4% and weighed on the Nasdaq.
Comments from Powell and Bullard Weigh on Markets
Speaking at the Council on Foreign Relations in New York on Jun 25, Fed Chief Jerome Powell acknowledged that the economy is reeling under pressures from trade war uncertainties as well as a slowdown in the global economy.
He stated that while such factors continued to weigh on the outlook for the economy, members of the Fed were not sure if these factors would continue weighing “on the outlook and thus call for additional policy accommodation.” However, Powell also stated that “many FOMC participants” believed that the current scenario has strengthened a case for an accommodative policy.
Meanwhile, speaking on Bloomberg Television, St. Louis Fed President James Bullard stated that while he thinks that a quarter-point reduction in interest rates would be an “insurance” move, a half-point rate cut would be “overdone.” He said that he doesn’t see the need “to take huge action."
Such comments weigh on the markets as Fed is still unsure about the possibility of a rate cut in July. Meanwhile. CME’s FedWatch tool predicts a 26.1% probability of a rate cut in July.
Lighthizer and Mnuchin Speak to China’s Liu He
Per a Bloomberg report, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke to Chinese vice premier Liu He on Jun 24 over the phone. Both the leaders told Liu He that they believed in continuing trade talks between both the countries.
Meanwhile, President Donald Trump and China’s Xi Jinping are likely to meet on Jun 29 during the G-20 meeting. Though investors hope that a trade truce will be achieved, experts opine that these hopes are misguided.
Economic Data
On the economic data front, per S&P’s CoreLogic Case-Shiller 20-city index, home prices in America rose a seasonally adjusted 2.5% in April from the year ago quarter. This marked the metric’s slowest pace of growth since August 2012 and its 13th monthly decline on the trot.
Meanwhile, U.S. consumer confidence for June came in at 121.5, lower than the consensus estimate of 131.2. Further, new home sales for May came in at 626,000, lower than the consensus estimate of 681,000.
Stocks That Made Headlines
FedEx Q4 Earnings Beat, Fiscal 2020 Outlook Dull
FedEx Corporation’s FDX fourth-quarter fiscal 2019 (ended May 31, 2019) adjusted earnings per share which beat the Zacks Consensus Estimate. (Read More)
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.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportAdobe Systems Incorporated (ADBE) : Free Stock Analysis ReportNIKE, Inc. (NKE) : Free Stock Analysis ReportFedEx Corporation (FDX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Transport ETFs in Focus on FedEx Earnings Beat
After the closing bell yesterday, transport bellwether FedEx FDX reported robust fourth-quarter fiscal 2019 earnings. Although the courier company’s bottom line topped the Zacks Consensus Estimateit warned weakness in global demand and trade tensions will continue to weigh on the FedEx Express business (read: Go for Safe-Haven ETFs Amid Rising Geopolitical Risks).Earnings per share came in at $5.01, trumping the Zacks Consensus Estimate by 20 cents but declining from the year-ago earnings of $5.91. Revenues rose 3% year over year to $17.81 billion but were in line with the consensus mark. For fiscal 2020, FedEx projects a low-single-digit percentage point increase in earnings per share before taking into account the effects of mark-to-market retirement plan accounting adjustments.Following the mixed results, shares of FDX inched up 0.7% at the close in after-hours trading. FedEx has a Rank #3 (Hold) and an impressive VGM Score of A. It currently falls under a top-ranked Zacks industry (top 42%).ETFs in FocusThe FedEx report has put transport ETFs —iShares Dow Jones Transportation Average Fund IYT,SPDR S&P Transportation ETF XTNandFirst Trust Nasdaq Transportation ETF FTXR— in focus. All these funds currently have a Zacks ETF Rank #4 (Sell) (see: all the Industrials ETFs here).IYTThe ETF tracks the Dow Jones Transportation Average Index, giving investors exposure to a small basket of 20 securities. Of these, FedEx occupies the third position in the basket with 9.6% of the assets. Within the transportation sector, railroads, and air freight and logistics take the top two spots with 33.2% and 24.9% share, respectively, while airlines (18.3%) and trucking (16.7%) round off the next two. The fund has accumulated nearly $541.3 million in AUM while it sees a good trading volume of around 258,000 shares a day. It charges 43 bps in fees per year.XTNThis fund follows the S&P Transportation Select Industry Index and uses almost an equal weight methodology for each security. Holding 43 stocks with AUM of $142.7 million, FedEx accounts for 2.6% share in the basket. The product is heavily exposed to trucking, which represents one-third of the portfolio while airlines and air freight & logistics also make up for 25.3% and 21.7%, share, each. The fund charges 35 bps in fees per year from investors and trades in a light volume of about 15,000 shares a day (read: A Look at Transport ETFs After Q1 Earnings).FTXRThis fund offers exposure to the 30 most-liquid U.S. transportation securities based on volatility, value and growth by tracking the Nasdaq US Smart Transportation Index. FedEx holds 0.6% share in the basket. FTXR has amassed $7 million in its asset base and charges 60 bps in annual fees. Average trading volume is meager at 2,000 shares.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 reportSPDR S&P Transportation ETF (XTN): ETF Research ReportsiShares Transportation Average ETF (IYT): ETF Research ReportsFedEx Corporation (FDX) : Free Stock Analysis ReportFirst Trust NASDAQ Transportation ETF (FTXR): ETF Research ReportsTo read this article on Zacks.com click here. |
Amir Khan vs Neera Goyat fight off after opponent suffers 'severe injuries' in car crash
Amir Khan ’s next fight has been called off after his opponent, Neeraj Goyat , suffered serious injuries in a car accident. But the former world champion will still fight in Saudi Arabia on 12 June after a new opponent was found immediately, with Australian Billy Dib stepping up from featherweight to take on Khan. Khan was expected to return to the ring for the first time since suffering a controversial defeat against Terence Crawford, who beat the former WBA and IBF light welterweight world champion when he decided against continuing after a low blow, against India’s Goyat. The Bolton boxer had very much taken a low-key fight following the high-profile defeat, but he now has two weeks to prepare for a new opponent after it was confirmed by the fight promoter that Goyat has suffered injuries to his head, face and left arm that has left him in hospital following an accident while travelling back from training. The statement was issued by Bill Dosanjh, who is promoting the event through the Super Boxing League, and who appeared alongside Khan at a press conference in Saudi Arabia on Wednesday before the accident happened. "We are very sad to inform that our star Indian boxer Neeraj Goyat who was preparing for his mega-fight against Amir Khan met with a car accident last night that has caused him severe injuries on his head, face and left arm,” Dosanjh said. "He is currently in hospital and we wish him a speedy recovery. “We are in the process of looking for Neeraj’s replacement. Please bear with us till we announce the new opponent of Amir Khan." Khan was due to face Goyat for the WBC Pearl World Championship in Jeddah, but he did not have to wait long before confirmation came of Gib’s promotion to the main event, having already been scheduled to fight on the undercard. The 32-year-old revealed earlier this week that his rapid return to the ring since the April defeat by Crawford was out of determination to prove he still has a future inside the ring, as well as banish the memories of what happened in New York two months ago. Story continues “That’s why I took this fight so quickly, I want to erase that memory,” Khan said. “That fight, I just can’t live with it. It did upset me. I’m one of those guys who, if I get knocked down, I get back up. I fight with my heart. Khan is currently in Saudi Arabia to promote the fight that has now been cancelled (Reuters) “Reading the comments and stuff about me afterwards, that’s why I had to get this fight, to fight again as soon as possible. "If that fight had not gone the way it did, I’d never have taken this fight. I want to erase that fight from my memory, move forward, get back to winning ways, and just keep busy.” |
Read This Before Selling Superdry Plc (LON:SDRY) Shares
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares inSuperdry Plc(LON:SDRY).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Superdry
Jonathan Wragg made the biggest insider purchase in the last 12 months. That single transaction was for UK£118k worth of shares at a price of UK£13.26 each. That means that even when the share price was higher than UK£4.73 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Jonathan Wragg was also the biggest seller, having sold UK£117k worth of shares.
Over the last year, we can see that insiders have bought 59078 shares worth UK£316k. On the other hand they divested 8900 shares, for UK£117k. Overall, Superdry insiders were net buyers last year. They paid about UK£5.34 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Superdry is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Superdry insiders own about UK£110m worth of shares (which is 28% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
It doesn't really mean much that no insider has traded Superdry shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Superdry insiders think the business has merit. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
But note:Superdry may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
IQVIA Launches eCOA Based Patient Centered Endpoints Solution
IQVIA Holdings Inc.IQV yesterday launched a Patient Centered Endpoints (PCE) solution that captures patient experience during clinical trials and real-world studies.
It is an electronic clinical outcome assessment (eCOA) cloud-based technology platform powered by IQVIA CORE, which integrates data, transformative technology, advanced analytics and deep scientific domain expertise to develop and execute clinical outcome assessments.
The company claims that this solution delivers real-time insights about patients, improved data transparency, reduced timeliness and increased efficiency. It features IQVIA’s patient questionnaires library, which allows users to use pre-built and validated assessments for study.
Jon Resnick, president, Real World & Analytics Solutions, IQVIA stated. “IQVIA is committed to bringing together deep scientific expertise and cutting-edge technology to disrupt clinical development and real world evidence generation”.
We observe that shares of IQVIA have gained 32.7% year to date, outperforming the 20.4% rally of the industry and 15.1% rise of the Zacks S&P 500 composite.
Our Take
We believe that the new offering will help boost IQVIA’s Technology & Analytics Solutions segment that delivers critical information, technology solutions and real-world insights and services to life science customers.
In the last reported quarter, the segment performed well with revenues of $1.08 billion, up 9.1% on a reported basis and 12.9% on a constant-currency basis.
IQVIA Holdings Inc. Revenue (TTM)
IQVIA Holdings Inc. revenue-ttm | IQVIA Holdings Inc. Quote
Zacks Rank & Stocks to Consider
Currently, IQVIA carries a Zacks Rank #3 (Hold).
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 (Strong Buy), FLEETCOR and NV5 Global carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
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 reportFleetCor Technologies, Inc. (FLT) : Free Stock Analysis ReportNV5 Global, Inc. (NVEE) : Free Stock Analysis ReportNavigant Consulting, Inc. (NCI) : Free Stock Analysis ReportIQVIA Holdings Inc. (IQV) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Here's Why Investors Should Steer Clear of Carnival (CCL)
Carnival CorporationCCL has been losing sheen of late. A look at the company’s price trend reveals that the stock has had an unimpressive run on the bourses in the past three months. Notably, Carnival has lost 10.3% compared with the industry’s 3.5% decline. The recent decline can be primarily attributed to soft fiscal 2019 view. Let’s delve deeper.Bleak Fiscal 2019 ViewDespite reporting better-than-expected earnings in second-quarter fiscal 2019, the stock took a hit after the company trimmed its fiscal 2019 guidance. Carnival now expects net cruise revenues to improve 4.5%, with 4.5% capacity growth compared with the prior projections of increase by 5.5-4.6%, respectively. For the fiscal year, the company anticipates EPS to be in the $4.25-$4.35 band, down from $4.35-$4.55 projected earlier. Carnival expects third-quarter fiscal 2019 EPS to be $2.50-$2.54 compared with adjusted earnings of $2.36 per share reported the prior-year quarter.Also, both third-quarter and fiscal 2019 estimates were pegged below the Zacks Consensus Estimate. Earnings estimates for the current quarter and year have too declined 5.2% and 4.2%, respectively, over the past 7 days, reflecting analysts’ concern surrounding the company’s earnings potential.
Policy Change on Travel to CubaTrump administration's policy change on travel to Cuba is concerning. Travel ban to Cuba will have a huge impact on cruise industry at the beginning of summer vacation season as demand for sailings in the region is very high. It will impact Carnival’s earnings by 4-6 cents in fiscal 2019. Moreover, Voyage disruptions related to Carnival Vista will hurt the bottom line by 8-10 cents.This apart, the company is expecting lower ticket prices in the second half of 2019. Policy change on travel to Cuba will also impact other cruise operators like Norwegian Cruise Line Holdings Ltd. NCLH and Royal Caribbean Cruises Ltd. RCL.Rising CostsCarnival aims to make additional investments this year as its brands have identified more revenue generating opportunities. Though these efforts are expected to benefit the company over the long run, these might weigh on the near-term margins and earnings.Also, increased investments in advertising and TV programming are adding to the company’s costs. During the third quarter of fiscal 2019, net cruise costs (excluding fuel), per ALBD, are expected to increase by 0.5-1.5% compared with the prior-year figure, in constant currency. During fiscal 2019, the company expects full-year net cruise costs (excluding fuel) per ALBD to be up approximately 0.7% compared with prior guidance of 0.5% increase.Zacks Rank & Stock to ConsiderCarnival has a Zacks Rank #5 (Strong Sell).
A better-ranked stock in the same space is SeaWorld Entertainment, Inc. SEAS, carrying a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
SeaWorld Entertainment reported better-than-expected earnings in the trailing four quarters, the average being 35.6%.More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportCarnival Corporation (CCL) : Free Stock Analysis ReportSeaWorld Entertainment, Inc. (SEAS) : Free Stock Analysis ReportRoyal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis ReportNorwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Could Selecta Biosciences, Inc.'s (NASDAQ:SELB) Investor Composition Influence The Stock Price?
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Every investor in Selecta Biosciences, Inc. (NASDAQ:SELB) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.
Selecta Biosciences is not a large company by global standards. It has a market capitalization of US$86m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about SELB.
See our latest analysis for Selecta Biosciences
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors own 41% of Selecta Biosciences. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Selecta Biosciences's earnings history, below. Of course, the future is what really matters.
It would appear that 8.1% of Selecta Biosciences shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can see that insiders own shares in Selecta Biosciences, Inc.. As individuals, the insiders collectively own US$1.7m worth of the US$86m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checkingif those insiders have been buying.
With a 43% ownership, the general public have some degree of sway over SELB. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
With an ownership of 6.4%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Pakistan rupee reaches record low, sliding more than 3% slide in a day
By Syed Raza Hassan
KARACHI, Pakistan (Reuters) - Pakistan's rupee dropped to another record low on Wednesday, sliding more than 3% in a day, the central bank said.
The rupee closed at 161.94 against the dollar in the interbank market, continuing a slide since Pakistan signed an agreement with the International Monetary Fund last month for a $6 billion loan.
The rupee on Tuesday closed at 156.97 against dollar in the interbank market. In the open market it was selling at 162.50 on Wednesday, money exchange dealers said.
The rupee has lost more than 50% of its value since December 2017, stoking inflation and putting pressure on the government as voter anger at higher prices grows.
The IMF accord, which has yet to be approved, foresees a "market-determined" rate for the rupee, which previously has been managed by the central bank in a de facto controlled float.
The State Bank of Pakistan, which raised interest rates by 150 basis points last month to 12.25%, said it was watching the foreign exchange market closely and would act in the case of "unwarranted" volatility.
It said the recent slide "reflects the continuing resolution of accumulated imbalances of the past and some role of supply and demand factors".
The newly appointed governor of the central bank, Reza Baqir, dismissed the idea of a free-floating rupee in his first news conference, on June 17, as he outlined reforms aimed at ending instability in the economy.
Pakistan has ballooning current and fiscal account deficits and has seen repeated devaluations of the rupee. Pakistan's exchange-rate policy is a "market-based" system that follows supply and demand, but that will not be left completely to the market, Baqir said.
(Writing by Asif Shahzad, editing by Larry King) |
Is Sabra Health Care REIT, Inc.'s (NASDAQ:SBRA) CEO Being Overpaid?
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In 2010 Rick Matros was appointed CEO of Sabra Health Care REIT, Inc. (NASDAQ:SBRA). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Sabra Health Care REIT
Our data indicates that Sabra Health Care REIT, Inc. is worth US$3.5b, and total annual CEO compensation is US$4.7m. (This is based on the year to December 2018). That'slessthan last year. While we always look at total compensation first, we note that the salary component is less, at US$850k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.2m.
So Rick Matros 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.
You can see a visual representation of the CEO compensation at Sabra Health Care REIT, below.
Sabra Health Care REIT, Inc. has increased its earnings per share (EPS) by an average of 24% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 17%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
Sabra Health Care REIT, Inc. has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Rick Matros is paid around what is normal the leaders of comparable size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Sabra Health Care REIT (free visualization of insider trades).
Important note:Sabra Health Care REIT may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Company News For Jun 26, 2019
• AbbVie Inc.’s ABBV shares plummeted 16.3% after the company announced that it had entered into an agreement to buy Allergan plc AGN in a $63 billion deal
• Lennar Corporation’s LEN shares lost 6.2% after the company reported second quarter fiscal 2019 earnings per share of $1.30, lower than the year-ago quarter of $1.58 a share
• Shares of Xencor, Inc. XNCR gained 13.9% after the company announced that it would replace HFF, Inc. HF in the S&P SmallCap 600
• Shares of USANA Health Sciences, Inc. USNA gained 7.6% after the company announced that it would replace Fidelity Southern LION in the S&P SmallCap 600 on Jul 1, 2019
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 reportAbbVie Inc. (ABBV) : Free Stock Analysis ReportAllergan plc (AGN) : Free Stock Analysis ReportFidelity Southern Corporation (LION) : Free Stock Analysis ReportLennar Corporation (LEN) : Free Stock Analysis ReportXencor, Inc. (XNCR) : Free Stock Analysis ReportUSANA Health Sciences, Inc. (USNA) : Free Stock Analysis ReportHFF, Inc. (HF) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
How Does Selecta Biosciences, Inc. (NASDAQ:SELB) Affect Your Portfolio Volatility?
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If you're interested in Selecta Biosciences, Inc. (NASDAQ:SELB), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
See our latest analysis for Selecta Biosciences
Zooming in on Selecta Biosciences, we see it has a five year beta of 1.38. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If the past is any guide, we would expect that Selecta Biosciences shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. Beta is worth considering, but it's also important to consider whether Selecta Biosciences is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of US$86m, Selecta Biosciences is a very small company by global standards. It is quite likely to be unknown to most investors. It has a relatively high beta, suggesting it is fairly actively traded for a company of its size. Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies.
Since Selecta Biosciences tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. In order to fully understand whether SELB is a good investment for you, we also need to consider important company-specific fundamentals such as Selecta Biosciences’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Future Outlook: What are well-informed industry analysts predicting for SELB’s future growth? Take a look at ourfree research report of analyst consensusfor SELB’s outlook.
2. Past Track Record: Has SELB been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of SELB's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how SELB measures up against other companies on valuation. You could start with thisfree list of prospective options.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Shares of Mexican energy firm IEnova fall after arbitration request
MEXICO CITY, June 26 (Reuters) - Shares of Mexican energy infrastructure firm IEnova, a unit of Sempra Energy , fell nearly 2.5% on Wednesday after the country's Federal Commission of Electricity requested arbitration over a pipeline project. (Reporting by Mexico City Newsroom) |
MOVES-Goldman Sachs hires Asia healthcare banker from Morgan Stanley -sources
HONG KONG, June 26 (Reuters) - Goldman Sachs has hired Samuel Thong from Morgan Stanley as the chairman of the healthcare group in the bank's Asia excluding-Japan investment banking division, people with knowledge of the move said.
Thong, who will also be designated as co-head of the U.S. bank's healthcare group in Asia excluding-Japan, will start in his new role next month, said the sources, who declined to be named as the information is not public yet.
Before covering healthcare investment banking in Asia at Morgan Stanley, Thong worked at Bank of America Merrill Lynch, according to the people and the information available in his LinkedIn profile.
A spokesman for Goldman in Hong Kong confirmed the hiring of Thong.
Goldman's hiring of the banker comes against the backdrop of a surge in healthcare deals in the region, mainly by Chinese firms such as Hansoh Pharmaceutical Group that raised roughly $1 billion this month in an IPO. (Reporting by Sumeet Chatterjee; editing by David Evans) |
Does Selecta Biosciences, Inc. (NASDAQ:SELB) Have A Particularly Volatile Share Price?
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If you're interested in Selecta Biosciences, Inc. (NASDAQ:SELB), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Check out our latest analysis for Selecta Biosciences
Given that it has a beta of 1.38, we can surmise that the Selecta Biosciences share price has been fairly sensitive to market volatility (over the last 5 years). If the past is any guide, we would expect that Selecta Biosciences shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Selecta Biosciences's revenue and earnings in the image below.
Selecta Biosciences is a noticeably small company, with a market capitalisation of US$86m. Most companies this size are not always actively traded. It takes less money to influence the share price of a very small company. This may explain the excess volatility implied by this beta value.
Beta only tells us that the Selecta Biosciences share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. In order to fully understand whether SELB is a good investment for you, we also need to consider important company-specific fundamentals such as Selecta Biosciences’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for SELB’s future growth? Take a look at ourfree research report of analyst consensusfor SELB’s outlook.
2. Past Track Record: Has SELB been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of SELB's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how SELB measures up against other companies on valuation. You could start with thisfree list of prospective options.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Turning Point Brands Wins Hemp Pilot Approval
Kentucky-basedTurning Point Brands Inc(NYSE:TPB), a provider of "Other Tobacco Products (OTP)" and adult consumer alternatives,said in a press releaseWednesday it received conditional approval for hemp processing.
Turning Point said the Kentucky Department of Agriculture granted conditional approval to participate in a new industrial hemp research pilot program. The company also said it was granted a Processor/Handler License.
Graham Purdy, the President of Turning Point subsidiary Nu-X Ventures, said the conditional approval will put it in a position to help Kentucky farmers in developing CBD market capabilities. The executive said the company will be able to strengthen its own position as an "innovative leader in this exciting market."
Turning Point Brands shares traded lower by 1.8% to $47.08 at time of publication.
Need more cannabis news?Check out all of our coverage here.
See more from Benzinga
• Canopy Growth Acquires KeyLeaf Life Sciences
• Netflix's Tough Week: Disney Poaches Top Executive, 'The Office' Moving To NBC
• StockX Reaches B Valuation, Latest VC Funding Round The Largest Ever For A Michigan Company
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Are SilverBow Resources, Inc.'s (NYSE:SBOW) Interest Costs Too High?
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Investors are always looking for growth in small-cap stocks like SilverBow Resources, Inc. (NYSE:SBOW), with a market cap of US$158m. However, an important fact which most ignore is: how financially healthy is the business? Understanding the company's financial health becomes 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. However, this is just a partial view of the stock, and I’d encourage you todig deeper yourself into SBOW here.
Over the past year, SBOW has ramped up its debt from US$245m to US$426m , which accounts for long term debt. With this increase in debt, the current cash and short-term investment levels stands at US$876k , ready to be used for running the business. Moreover, SBOW has produced US$147m in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 34%, signalling that SBOW’s operating cash is sufficient to cover its debt.
With current liabilities at US$98m, the company may not have an easy time meeting these commitments with a current assets level of US$44m, leading to a current ratio of 0.45x. The current ratio is calculated by dividing current assets by current liabilities.
With total debt exceeding equity, SBOW is considered a highly levered company. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. We can check to see whether SBOW is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In SBOW's, case, the ratio of 3.88x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving SBOW ample headroom to grow its debt facilities.
SBOW’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. However, its lack of liquidity raises questions over current asset management practices for the small-cap. This is only a rough assessment of financial health, and I'm sure SBOW has company-specific issues impacting its capital structure decisions. I recommend you continue to research SilverBow Resources to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SBOW’s future growth? Take a look at ourfree research report of analyst consensusfor SBOW’s outlook.
2. Historical Performance: What has SBOW'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. |
Visa to Acquire Token and Ticketing Businesses From Rambus
Visa Inc.V recently entered into a definitive agreement to purchase the token services and ticketing businesses — formerly called Bell ID and Ecebs LTD — from Rambus (RMBS). However, the deal is subject to certain closing conditions.The consolidation of Visa’s network tokenization abilities with Rambus’ local and account tokenization technology is expected to lead to secure and safe transactions across international commerce. Visa is one of the market-leading companies in tokenization technology that swaps sensitive payment information with a unique identifier, also known as token. This token makes the transactions more safe and sound.Tokenization has been one of the most prominent methods of curbing fraud and securing card transactions at the point-of-sale, online and for stored card credentials. Visa provides these solutions via Visa Token Service for card-based transactions on the Visa network.With the addition of Rambus’ token technology, Visa will be able to ensure the safety and ease of tokenization to alternate payment types other than Visa cards, such as those made on domestic card networks, real-time and account-based payment modes. The company might extend these knowhow and scale to further enhance all forms of global commerce in the future.Notably, Rambus would be able to come up with a new product and service suite while continuing to cater to its current customers.Since the inception of Visa Token Service in 2014, the company has made a significant progress in making and scaling tokenization for card-based payments. It is impressive that Visa has made 100 markets tokenization-friendly by offering this solution to 90% of its total payment volume, of which more than 60 global token requesters were recently added to the platform.Apart from tokenization, Rambus’ digital ticketing portfolio and knowledge in transit go well with Visa’s effort to provide global transit and mobility solutions to public transit operators, technology partners and cities across the globe. Visa has transit projects underway around the world and it will diligently work for public transport operators, clients and partners to develop novel mobility solutions and acceptance.Shares of this Zacks Rank #3 (Hold) company have rallied around 29.2% in a year's time, outperforming its industry's growth of 22.8%.
Stocks to Consider
Investors interested in the same space may take a look at some better-ranked stocks like Cardtronics PLC CATM, Mastercard Incorporated MA and Global Payments Inc. GPN. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardtronics offers automated consumer financial services through its network of automated teller machines and multi-purpose financial services kiosks. The company pulled off average four-quarter positive surprise of 43.8% and sports a Zacks Rank #1.Mastercard provides transaction processing and other payment-related products and services. It delivered average four-quarter positive surprise of 5.8% and carries a Zacks Rank #2 (Buy).Global Payments offers payment technology and software solutions and came up with average four-quarter beat of 3.1%. The company is a Zacks #2 Ranked player.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 reportCardtronics PLC (CATM) : Free Stock Analysis ReportVisa Inc. (V) : Free Stock Analysis ReportMastercard Incorporated (MA) : Free Stock Analysis ReportGlobal Payments Inc. (GPN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Increase in working women means more delivery, fewer home-cooked meals
The increase in women in the workforce over the past few decades has boosted economic growth, productivity and wages in the U.S. It has also profoundly changed America’s dining habits.
According to a new report by Credit Suisse, 60% of Americans order food delivery “more often because they don’t feel like cooking.” And the bank attributes this shift, at least in part, to more women being out of the house.
Women’s participation in the U.S. labor market has nearly doubled, from 34% of working age women (16 and older) in the workforce in 1950 toalmost 57% in 2016.
“The increase of women in the labor force over the last several decades has been a notable factor in driving an increase in food away from home stomach share,” the report says. (In a typical household, if both spouses work, who’s around to cook dinner?)
Women’s decision to delay marriage in their childbearing years – particularly among millennials – means they will likely “maintain younger generational trends” for a longer period of time than previous generations, according to Credit Suisse. As the median age of women (28) and men (30) at their first marriage has climbed since the 1990’s, the share of food consumed away from home has peaked proportionally.
Pressed for time, half of Americans get food delivered – and restaurants are taking a bigger bite out of consumers’ wallets. The fact that eating at restaurants is relatively more expensive than consuming food bought at grocery stores has not been a deterrent, according to Credit Suisse.
Americans spend roughly $1.6 trillion on food annually with $747 billion on food they’ll consume at home bought at grocery stores, warehouse clubs, convenience stores, and other food services.
But that number is dwarfed by the $869 billion people spend on food prepared outside their home: $5 billion on food at drinking places, $311 billion on full-service restaurants, $314 billion on limited-service restaurants, $36 billion on meals at hotels and motels, and $203 billion on other places.
While consumers across all generations spend about 12% to 14% of their budgets on food, an increasing amount of that food budget is being spent on fast food, takeout, and delivery.
Delivery is seeing the most growth, currently representing $35 billion of U.S. restaurant sales and expected to surpass overall restaurant growth over the next few years, according to Credit Suisse.
No doubt the rise offood-delivery services, like Uber Eats, GrubHub (GRUB) and Seamless, has driven this trend.
Among the top fast food restaurants that deliver, Credit Suisse says Domino’s (DPZ) has the best delivery infrastructure, while Chipotle (CMG) is the only large restaurant to have delivery integrated in its app.
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Opera releases iOS browser with built-in crypto wallet
Opera has made its latest web browser, including a built-in cryptocurrency wallet, available for iOS, the firmannouncedWednesday. With today's release, Opera now has a Web 3-supporting browser across three major platforms - iOS, Android andPC.
The Norwegian browser maker said that like theAndroid version, the iOS browser lets users interact seamlessly with dApps built on the Ethereum blockchain and supports all ERC-20 tokens, stablecoins and non-fungible tokens (NFTs).
“We believe that all modern browsers should integrate a crypto wallet,” said Opera’s head of crypto, Charles Hamel. “This will enable new business models to emerge on the web.”
Opera announced it had firststartedtesting the iOS browser, dubbed Opera Touch, in March of this year. It also recently announced it would be addingsupport for the TRONblockchain. |
What To Know Before Buying Xenia Hotels & Resorts, Inc. (NYSE:XHR) For Its Dividend
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Is Xenia Hotels & Resorts, Inc. (NYSE:XHR) 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.
In this case, Xenia Hotels & Resorts likely looks attractive to dividend investors, given its 5.3% dividend yield and four-year payment history. We'd agree the yield does look enticing. Some simple research can reduce the risk of buying Xenia Hotels & Resorts for its dividend - read on to learn more.
Explore this interactive chart for our latest analysis on Xenia Hotels & Resorts!
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. 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. Xenia Hotels & Resorts paid out 52% of its profit as dividends, over the trailing twelve month period. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift the payout ratio over time.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Xenia Hotels & Resorts paid out 50% 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.
As Xenia Hotels & Resorts has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. With net debt of above 3x EBITDA, investors are starting to take on a meaningful amount of risk, should the business enter a downturn.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Interest cover of less than 5x its interest expense is starting to become a concern for Xenia Hotels & Resorts, and be aware that lenders may place additional restrictions on the company as well.
We update our data on Xenia Hotels & Resorts 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. Looking at the data, we can see that Xenia Hotels & Resorts has been paying a dividend for the past four years. 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 four-year period, the first annual payment was US$0.92 in 2015, compared to US$1.10 last year. Dividends per share have grown at approximately 4.6% per year over this time.
Modest dividend growth is good to see, especially with the payments being relatively stable. However, the payment history is relatively short and we wouldn't want to rely on this dividend too much.
The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Xenia Hotels & Resorts has grown its earnings per share at 41% per annum over the past five years. With recent, rapid earnings per share growth and a payout ratio of 52%, this business looks like an interesting prospect if earnings are reinvested effectively.
We'd also point out that Xenia Hotels & Resorts 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.
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. Xenia Hotels & Resorts's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Xenia Hotels & Resorts out there.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 8 analysts we track are forecasting for Xenia Hotels & Resortsfor 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. |
Supreme Court strikes down Tennessee liquor retail regulations
By Lawrence Hurley WASHINGTON (Reuters) - The U.S. Supreme Court on Wednesday ruled in a case concerning alcohol regulations enacted following the Prohibition era that Tennessee residency requirements for liquor retailers violate the U.S. Constitution's interstate commerce provision. The 7-2 ruling held that Tennessee's regulations unlawfully discriminated against out-of-state businesses in violation of the Constitution's so-called Commerce Clause. The case pitted two constitutional provisions against one another: the 21st Amendment, which repealed the 18th Amendment ban on alcohol, and the Commerce Clause, which prevents states from discriminating against out-of-state businesses. The state law imposed a two-year in-state residency requirement for business owners applying for a license and 10-year residency requirements for license renewals. "Because Tennessee's two-year residency requirement for retail license applicants blatantly favors the state residents and has little relationship to public health and safety, it is unconstitutional," conservative Justice Samuel Alito wrote for the court. The 21st Amendment explicitly gave states the power to regulate alcohol sales within their borders. But Supreme Court rulings regarding the Commerce Clause prevent states from discriminating against out-of-state businesses. The court in 2005 ruled that states could not let in-state wineries ship wine to consumers but prevent out-of-state wineries from doing so. Conservative justices Neil Gorsuch and Clarence Thomas dissented, with Gorsuch writing that the 21st Amendment allows for regulations like those in Tennessee. "Like it or not, those who adopted the 21st Amendment took the view that reasonable people can disagree about the costs and benefits of free trade in alcohol," Gorsuch wrote. Maryland-based Total Wine and More, a major retailer that operates 193 stores in 23 states, was one of the challengers. Total Wine's co-founder and co-owner David Trone won election in November to the U.S. House of Representatives as a Democrat from Maryland. Story continues The case began when a state-level trade association urged Tennessee officials in 2016 to reject liquor license applications from Total Wine and a couple who recently arrived from Utah and wanted to open a liquor store. Tennessee's alcohol regulator preemptively filed suit seeking a declaration that the state regulations were lawful, but lower courts ruled against the state. A separate provision that effectively prevented out-of-state retailers for opening stores was struck down by a lower court and was not at issue in the Supreme Court ruling. The Supreme Court argument in the case on Jan. 16 came on the 100th anniversary of the ratification of the Constitution's 18th Amendment, which imposed a nationwide ban on alcoholic beverages and paved the way for a Prohibition era that ran from 1920 to 1933. (Reporting by Lawrence Hurley; Editing by Will Dunham) |
Should Safestore Holdings plc (LON:SAFE) Be Part Of Your Dividend Portfolio?
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Dividend paying stocks like Safestore Holdings plc (LON:SAFE) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.
A slim 2.6% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Safestore Holdings could have potential. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Click the interactive chart for our full dividend analysis
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 52% of Safestore Holdings's profits were paid out as dividends in the last 12 months. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift the payout ratio over time.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Safestore Holdings 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.
As Safestore Holdings has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. Safestore Holdings has net debt of 5.07 times its earnings before interest, tax, depreciation and amortisation (EBITDA) which implies meaningful risk if interest rates rise of earnings decline.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Safestore Holdings has EBIT of 5.53 times its interest expense, which we think is adequate. Adequate interest cover may make this level of debt look safe, relative to companies with a lower interest cover ratio. However with so much net debt, we would be cautious of what could happen if interest rates rise.
Remember, you can always get a snapshot of Safestore Holdings's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Safestore Holdings has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was UK£0.046 in 2009, compared to UK£0.16 last year. This works out to be a compound annual growth rate (CAGR) of approximately 13% a year over that time.
It's rare to find a company that has grown its dividends rapidly over ten years and not had any notable cuts, but Safestore Holdings has done it, which we really like.
Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Safestore Holdings's earnings per share have been essentially flat over the past five years. Over the long term, steady earnings per share is a risk as the value of the dividends can be reduced by inflation. 0.9% per annum is not a particularly high rate of growth, which we find curious. If the company is struggling to grow, perhaps that's why it elects to pay out more than half of its earnings to shareholders.
To summarise, shareholders should always check that Safestore Holdings's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Safestore Holdings's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow. Earnings growth has been limited, but we like that the dividend payments have been fairly consistent. Ultimately, Safestore Holdings comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 8 Safestore Holdings 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. |
Freight Brokers: June "Not As Busy As We Thought It Would Be"
The June freight surge happened, but the volumes were not as large as freight brokers expected and capacity remained manageable.
National freight volumes (OTVI.USA) are in a healthy place – the highest they've been since last summer – but still down about 6 percent compared to this period in 2018, which had a more pronounced volume peak. Spot rates climbed this month out of Los Angeles and Atlanta, but are starting to soften as capacity returns to the market following Road Check week.
"In the reefer world, this week Georgia is getting cheaper – we're definitely seeing rates come back to earth out of Georgia," said Michael Feig, chief operating officer at White Plains, New York-based Capital Logistics. "Arizona is not as tight as it was; we're able to source equipment at more reasonable rates."
Still, Arizona is one of the few places where Capital is getting substantial secondary work, or loads that have been rejected by the primary carrier. Reefer tender rejections out of Tucson (RTRI.TUS) are higher than the national average (OTRI.USA):
Turndowns in Tuscon broke out above the national average. (Chart: FreightWaves SONAR)
Some markets are still recovering from Road Check week. Freight brokerages with high volumes of contracted freight had a choice to make – honor their commitments to their shipper customers or reject the freight in fear of a market for trucking capacity that was suddenly surging upward after spending months in the doldrums.
FreightWaves spoke to representatives of several brokerages who committed to moving their customers' freight despite steep losses. The executives, some off the record, said that in some cases they felt they had no choice but to move the loads because they expected the market to return to a baseline of loose capacity in the weeks following, and they couldn't afford to lose their customers.
A Chicago-based broker described his shop's negative margins during Road Check week as "obscene." Another brokerage CEO said, "We took a blow to the stomach financially."
One theory heard from the executives during the channel checks was that cash-strapped carriers, suffering through an oversupplied market and struggling to make ends meet on spot rates that are in many cases below operating costs, were more risk-averse this year during Road Check. Instead of betting that elevated spot rates would more than make up for potential fines incurred during inspections, financially stressed carriers stayed off the road and let their trucks sit.
Ironically, enforcement during this year's Road Check was noticeably light, and many drivers reported a conspicuous absence of law enforcement officers performing on-site inspections.
"We're still feeling some of the effects of DOT week," said Jamie Teets, chief executive officer of Chicago-based Transportation One. "Rates have only gradually come down. We didn't recover from the DOT week as we've seen in the past."
Transportation One has found capacity a little harder to source in cross-border markets like El Paso, Laredo and McAllen, as well as Midwest states like Arkansas, Kansas and Missouri. Freight volumes in Little Rock (OTVI.LIT), Joplin (OTVI.JLN) and St. Louis (OTVI.STL) have spiked dramatically in June.
"We're moving freight pretty steadily – I don't want to say easily," Teets said.
Teets agreed that contracted volumes have been a bit disappointing in June as shippers keen to save money move freight into the spot market immediately after it is rejected by the primary carrier. He said that on 28 major lanes across nine different customers, he's seeing lower volumes than he moved in January.
Feig also said that peak season was "not as busy as we thought it would be." Feig hasn't seen a pre-holiday push ahead of July 4 yet, and said that large refrigerated carriers out West had more available capacity than he expected for this time of year. Teets was also unsure as to how carriers would treat the mid-week holiday.
"It could be interesting," Teets said. Some drivers have told Transportation One they plan on taking most of the week off.
Speculation abounds in the freight brokerage industry about how fast capacity will leave the industry and whether markets will meaningfully tighten in response. If a macroeconomic downturn, or even a freight recession, causes a large drop in demand, then rates could stay down even as more and more capacity leaves.
FreightWaves tracks trucking carrier failures (EXIT.USA), which experienced a sharp rise in the first quarter of 2019. In the fourth quarter of 2018, there were 75 exits; in the first quarter of 2019, that number jumped to 225, the highest number since the third quarter of 2014. Those numbers are not bankruptcies per se, because small trucking companies sometimes do not file for bankruptcy protection when they go out of business, sometimes opting to simply shut down or liquidate their assets directly.Instead, the EXIT index tracks write-downs by companies of bad debt owed by trucking carriers – it effectively measures the number of trucking companies that have stopped paying their bills. And that number is at a multi-year high.
Image Sourced From Pixabay
See more from Benzinga
• Sentencing Delayed For Truckers Accused Of Illegally Hauling Hemp
• FedEx Posts Weak Results For Fiscal Fourth Quarter And Full Year
• Wildfire Risk Blazing Across Western U.S.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Canada says bogus certificates are being used to smuggle meat into China
By Kelsey Johnson
OTTAWA (Reuters) - Unknown actors are using bogus certificates to smuggle Canadian meat into China, Trade Minister Jim Carr said on Wednesday, a day after Beijing halted beef and pork imports citing falsified paperwork.
China, which has already blocked imports of Canadian canola seed and product from three pork plants, said on Tuesday it wanted Ottawa to halt all meat shipments after "counterfeit" veterinary health documents were discovered. Canadian officials confirmed they had found inauthentic certificates.
"Somebody is trying to use the Canadian brand to move product into the Chinese market," said Trade Minister Jim Carr, telling reporters the government did not know whether the meat shipments in question had actually come from Canada.
"There's an investigation going forward and we're taking it seriously and working very hard to get to the bottom of it because I don't know why this is happening, in whose interest this could be."
China suspended exports from Quebec-based pork company Frigo Royal last week after Beijing said residues of the feed additive ractopamine, which makes hogs leaner, had been found. Ractopamine is banned in China. Two other plants lost their permits because of labeling issues.
Manitoba agriculture minister Ralph Eichler told reporters Canada had contacted other Asian markets, including Japan, and had been told there were no issues with meat documents.
China's move marks the latest escalation in a major trade and diplomatic dispute with Canada that erupted in December after police in Vancouver detained Meng Wanzhou, the chief financial officer of Huawei Technologies Co Ltd, on a U.S. arrest warrant.
Shortly after Meng's arrest, China detained two Canadians, who have since been charged with espionage.
Canadian Prime Minister Justin Trudeau left Canada on Wednesday for a Group of 20 leaders meeting in Japan.
U.S. President Donald Trump last week told Trudeau he was prepared to raise the case of the two detained Canadians with Chinese President Xi Jinping, whom he is to meet with on Saturday at the G20 meeting.
"No one is looking to escalate or exacerbate tensions," Carr said when asked about the dispute.
China bought C$310 million ($235.26 million) worth of Canadian pork from January through April, making it Canada's third-largest export market by value, according to official data.
Earlier this month, Reuters reported China planned to boost inspections of imported Canadian meats and meat products.
Finance Minister Bill Morneau called the premiers of several Canadian provinces on Tuesday to brief them on the latest development, officials said.
The Chinese embassy in Ottawa released a statement on Tuesday that did not link the latest ban to the Meng case. Asked about possible political motivations, Carr said on Wednesday "no tie has been explicitly made by anybody."
Diplomats and experts though say there is no doubt China is using the import bans and the arrests in a bid to force Canada to release Meng.
Her lawyers urged Justice Minister David Lametti on Monday to withdraw extradition proceedings against Meng, but received no immediate response.
Lametti was due to meet U.S. Attorney General William Barr in Washington on Wednesday. The Meng case was not on the official agenda, according to a statement from Lametti's office.
(Writing by David Ljunggren; additional reporting by Rod Nickel in Winnipeg and Steve Scherer in Ottawa; Editing by Chizu Nomiyama, Phil Berlowitz and Chris Reese) |
Prince William Was Asked How He'd React If His Kids Came Out as Gay — and He Had the Best Response
Prince William says it would be “absolutely fine by me” if any of his three children come out as gay. The royal, who celebrated his 37th birthday last week, visited the Albert Kennedy Trust on Wednesday to learn about the issue of LGBTQ youth homelessness and what the organization is doing to alleviate the problem. During his chat with young people being supported by the charity, William was asked how he would react if Prince George, 5, Princess Charlotte, 4, or Prince Louis , 1, came to him one day to say they are gay. “Do you know what, I’ve been giving that some thought recently because a couple of other parents said that to me as well,” William said. “I think, you really don’t start thinking about that until you are a parent, and I think — obviously absolutely fine by me.” The prince went on to say that he and wife Kate Middleton had talked about the possibility and how they’d give their children the best support they could, especially considering their role in the public eye. DANIEL LEAL-OLIVAS/AFP/Getty Images “The one thing I’d be worried about is how they, particularly the roles my children fill, is how that is going to be interpreted and seen,” he said. “So Catherine and I have been doing a lot of talking about it to make sure they were prepared.” Prince William continued, “I think communication is so important with everything, in order to help understand it you’ve got to talk a lot about stuff and make sure how to support each other and how to go through the process. It worries me not because of them being gay, it worries me as to how everyone else will react and perceive it and then the pressure is then on them.” RELATED: Prince William’s Sweetest Royal Dad Photos with Prince George, Princess Charlotte and Prince Louis Prince William | Jonathan Brady/WPA Pool/Getty Prince William | Jonathan Brady/WPA Pool/Getty Faz Bukhari, 28, from east London, experienced problems at home when he began to identify as transgender about four years ago. “I thought his answer was so good, to hear him talk about having fears about what people might think of his children and how they might take to them, if they were identified as LGBT,” he told reporters. “That he recognizes that and is aware there could be a backlash, he understands the issues and hopefully with his comments we can get more awareness across to more parents of the issues.” Story continues Prince William | Jonathan Brady/WPA Pool/Getty Prince William previously supported the LGBT community by posing for the cover of Attitude magazine in June 2016. After holding a discussion at his Kensington Palace home with a group of nine people who have endured homophobic bullying, William released a statement to the magazine saying, “No one should be bullied for their sexuality or any other reason and no one should have to put up with the kind of hate that these young people have endured in their lives.” William said about the cover on Wednesday, “I did my Attitude magazine cover, which was a good day. But I’d seen some of the previous front covers, and I was a bit nervous about what they might ask me to do. Thankfully, there were no small briefs for me!” RELATED: Meghan Markle and Prince Harry Celebrate Pride Month with Sweet Post on Instagram: ‘Love Is Love’ Meghan Markle and Prince Harry also celebrated the LGBTQ+ community this month by dedicating their @SussexRoyal Instagram page to the cause. The royal couple, who welcomed son Archie on May 6, gave their Instagram page a rainbow tribute in honor of Pride Month, which kicks off June 1 in the U.K. and the U.S. View this post on Instagram Continuing with our tradition to rotate the accounts we follow based on causes and social issues that matter to us: For the month of June we “proudly” shine a light on PRIDE. This month we pay tribute to the accounts supporting the LGBTQ+ community - those young and old, their families and friends, accounts that reflect on the past and are hopeful for a deservedly more inclusive future. We stand with you and support you 🌈 Because it’s very simple: love is love. Images above from the accounts we are now following and artist Ruben Guadalupe Marquez A post shared by The Duke and Duchess of Sussex (@sussexroyal) on May 31, 2019 at 10:10pm PDT Meghan and Harry shared a collage made of photos — which included one of Harry’s late mother Princess Diana — from accounts they are following this month which included The Trevor Project, Stonewall UK, SAGE and artist Ruben Guadalupe Marquez. “This month we pay tribute to the accounts supporting the LGBTQ+ community – those young and old, their families and friends, accounts that reflect on the past and are hopeful for a deservedly more inclusive future,” the couple captioned the post. “We stand with you and support you 🌈 Because it’s very simple: love is love.” Meghan Markle and Prince Harry | Samir Hussein/WireImage Can’t get enough of PEOPLE’s Royals coverage? Sign up for our newsletter to get the latest updates on Kate Middleton, Meghan Markle and more! During his visit to a London YMCA in April, Prince Harry met with Mermaids CEO Susie Green . The U.K. charity is a leader in supporting gender-variant and transgender children, and Harry wanted to highlight the organization’s “important” work as part of the Royal Foundation’s ongoing efforts in the field of mental health. Green told the outlet that the Duke of Sussex’s invitation to the roundtable discussion convened by The Royal Foundation’s “Heads Together” campaign was “quite heartening, bearing in mind that there is such controversy and we are attacked regularly.” “I think it’s always really important to young people to see that people with the authority and credibility that Prince Harry has are supporting them and are listening and acknowledging the fact that they exist,” Green said. “This is somebody who has got that profile who’s showing clear understanding of the issues they’re facing.” |
UK broker rolls out 3 new cryptocurrency indices, pitching lower costs than exchange trading
London-based financial derivatives dealer CMC Markets has announced the launch of three new cryptocurrency indices,Finance Magnates writes.
The three "bespoke" indices list a varying selection of "major and emerging" tokens and coins. The goal is to offer clients “exposure to a bundle of different coins” in a single transaction, helping to reduce trading costs according to the firm's Deputy Chief Executive Officer, David Fineberg.
The first basket - dubbed 'Major Crypto Index' - will include bitcoin, ripple, bitcoin cash, ethereum and litecoin, while 'Emerging Crypto Index' encompasses dash, EOS, monero, NEO, stellar lumens, cardano and TRON. All the above-mentioned tokens will be listed in the third index—the All Crypto Index. The indices have been created in-house so that the company has control over them and can maintain their transparency.
Fineberg hinted the firm could further expand into the digital assets market, saying it would "continue to...offer...access to instruments which are most appealing for today’s trading community."
Last week, U.S. crypto asset managerCrypto Crescent also releasedthree new indices, tracking groups of privacy and smart contract platform tokens. |
NRA cancels NRATV — and the internet sends 'thoughts and prayers'
NRATV has been cancelled and host Dana Loesch is out. (Screenshot: NRATV/YouTube) The National Rifle Association (NRA) has shut down production of NRATV, Dana Loesch is out as a spokesperson for the organization — and the internet has a lot to say about it. “Many members expressed concern about the messaging on NRATV becoming too far removed from our core mission: defending the Second Amendment,” NRA chief executive Wayne LaPierre said in a message to members obtained by the New York Times . “So, after careful consideration, I am announcing that starting today, we are undergoing a significant change in our communications strategy. We are no longer airing ‘live TV’ programming.” An asterisk is that while live programming is ending, previously produced programing that sticks more closely to gun issues may continue to stream on the channel, the NYT reported. For example, don’t expect to see the “disturbing as hell” NRATV segment in which a KKK makeover was given to Thomas & Friends characters. The controversial gun organization also severed ties with Ackerman McQueen, the advertising firm it paid $40 million a year to for such programing. Ackerman employed NRATV staffers including Loesch. So not only has Loesch’s day job ended, she will no longer be associated with the NRA at all. It’s a bitter split between the two groups — and it comes at a time when there are several lawsuits between them. But while the NRA may be divided, social media appears overwhelmingly aligned on the issue. Many people — including Parkland survivor and activist David Hogg — offered “thoughts and prayers” following the news. Thoughts and prayers 🤧😤 @DLoesch @stinchfield1776 https://t.co/8uwAqzKHaC — David Hogg (@davidhogg111) June 26, 2019 Thoughts and prayers for Dana- Just kidding. She can take her hate, delusion, and her beet juice and climb into the shoebox full of America's shame that we stash in the crawl space of the attic, where one day in the future it will frighten a nosy child. https://t.co/jA4wCR6hA7 — Heather Whaley (@HeatherWhaley) June 26, 2019 So sorry to hear about the demise of NRATV. Thoughts and prayers. But remember, when life hands you lemons, just make a video that shows you don't understand how lemonade is made. https://t.co/ho7XcUjPgF — Kevin M. Kruse (@KevinMKruse) June 26, 2019 Dear NRATV and Dana Loesch, Thoughts and prayers. In lieu of flowers, I'm making a donation right now to @MomsDemand in your honor. Sincerely, Rev. Dr. Chuck Currie https://t.co/M6H94IFM78 via @NYTimes — Rev. Dr. Chuck Currie (@RevChuckCurrie) June 26, 2019 Thoughts and prayers to NRATV and Dana Loesch. https://t.co/imYDPMA2b9 — Randi Mayem Singer (@rmayemsinger) June 26, 2019 That expression, often used by politicians and other public figures to offer condolences after a tragedy, has been criticized when said after mass shootings. The implication is that “thoughts and prayers” won’t stop gun violence — gun control legislation will. Apparently the sentiment in the wake of NRATV’s cancellation wasn’t appreciated by Loesch. Story continues I offered #danaloesch my thoughts and prayers at the ending of #nratv - she blocked me two seconds later! Badge of honor really. #nra pic.twitter.com/hEG5ulQno2 — Alexandra Little (@alex_writing) June 26, 2019 Gun control advocates Shannon Watts (of Moms Demand Action), Emma González, and Fred Guttenberg were also among those to react. It was called the “end of the absolute worst era.” WOW!!! THIS HUGE NEWS. N.R.A. Shuts Down Production of NRATV. Good riddance to this vile, disgusting, lying, gun selling bunch who are part of the culture that lead to 40,000 gun deaths per year, including my daughter Jaime. https://t.co/ZC6am5SXRS — Fred Guttenberg (@fred_guttenberg) June 26, 2019 LMAOOOO wack https://t.co/24pSe505M7 — Emma González (@Emma4Change) June 26, 2019 BREAKING: Both NRATV and @NRA spokeswoman Dana Loesch are over. “While the @NRA may continue to air past content, its live broadcasting has ended and its on-air personalities — including Dana Loesch — will no longer be the public faces of the NRA.” https://t.co/7Rqq6a3qwD — Shannon Watts (@shannonrwatts) June 26, 2019 The end of the absolute worst era https://t.co/sgFKVakooS — Jared Holt (@jaredlholt) June 26, 2019 Is there an emoji for the world’s smallest 🎻? Goodbye NRATV. https://t.co/DZCv2QSY9K — Preet Bharara (@PreetBharara) June 26, 2019 As someone who loves making TV & understands the challenge of working steadily in TV, I have never celebrated the loss of any show, platform or gig. Until today. Goodbye NRA TV! You were truly dystopian & gross. Let us salt the earth where you stood that you may never grow again. — Caissie St.Onge (@Caissie) June 26, 2019 I'm devastated about NRATV. Just gutted. I hope all those worthy journalists and on-air personalities find new employment commensurate with their integrity, humanity and talent. And I mean exactly commensurate. — David Simon (@AoDespair) June 26, 2019 Though Loesch was a specific target. She was called “one of the most horrific people in America.” dana loesch is one of the most horrific people in america and she was the nratv's lead person. this is good. pic.twitter.com/gkoPWIefeo — Oliver Willis (@owillis) June 26, 2019 The world will be a better place without NRATV & she will not be missed. 👋🏻👋🏻 https://t.co/XnNPsJpeuN — Buffy Wicks (@BuffyWicks) June 26, 2019 NRA TV has shut down and Dana Loesch is out of a job. It's a good evening. pic.twitter.com/KqComF8EJ9 — Cornelia (@PaladinCornelia) June 26, 2019 While Dana Loesch is trending because she was fired by the @NRA from NRATV, a reminder that she put KKK hoods on Thomas & Friends cartoon characters, said she hopes the Mueller report burns in an “AIDS fire,” and called gun safety advocates “tragedy dry humping whores.” pic.twitter.com/yKEsaET501 — Shannon Watts (@shannonrwatts) June 26, 2019 Literally gasping for air laughing at the mental image of Dana Loesch slowly clawing her way back to hell. https://t.co/ALqv2m1AU6 — Stephen Bolen (@sbolen) June 26, 2019 "The NRA has shut down production at NRATV" #ByeFelicia #ThoughtsAndPrayers 💭🙏🏼 #MuellerTime No more Dana Loesch. Bye Felicia. 👋🏼 pic.twitter.com/pIul5gR2pN — ℰ𝑟𝑖𝑛 🌻🧜♀️ (@pinklionheart) June 26, 2019 if only there some extremely ironic metaphor for nratv shutting down pic.twitter.com/bljBseaOTK — John Whitehouse (@existentialfish) June 26, 2019 hearing NRATV and Dana Loesch are canceled like pic.twitter.com/9p9m0spqsF — shauna (@goldengateblond) June 26, 2019 Though Loesch did get some love from Meghan McCain . . @DLoesch is a brave fighter for what she believes in and I look forward to whatever she does in her her next endeavor. She also has a husband I respect greatly @ChrisLoesch . — Meghan McCain (@MeghanMcCain) June 26, 2019 Appreciate your friendship over these couple of years and your fighting spirit. I am glad I got to know you. — Dana Loesch (@DLoesch) June 26, 2019 Read more on Yahoo Entertainment: 'Bourdain Day' tributes pour in from the late chef’s family, friends and fans: 'We miss your wit and spark' Pamela Anderson dumps 'monster' Adil Rami over cheating claims: 'This is my worst nightmare' Rosie O'Donnell wishes Meghan McCain 'wouldn't be mean to Joy Behar' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle’s newsletter. |
Is Now An Opportune Moment To Examine ServisFirst Bancshares, Inc. (NASDAQ:SFBS)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
ServisFirst Bancshares, Inc. (NASDAQ:SFBS), 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 $35.36 and falling to the lows of $31.34. 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 ServisFirst Bancshares's current trading price of $32.72 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 ServisFirst Bancshares’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 ServisFirst Bancshares
Good news, investors! ServisFirst Bancshares is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $44.8, but it is currently trading at US$32.72 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 ServisFirst Bancshares’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. 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 ServisFirst Bancshares, it is expected to deliver a relatively unexciting earnings growth of 5.1%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for ServisFirst Bancshares, at least in the near term.
Are you a shareholder?Even though growth is relatively muted, since SFBS is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on SFBS for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SFBS. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on ServisFirst Bancshares. You can find everything you need to know about ServisFirst Bancshares inthe latest infographic research report. If you are no longer interested in ServisFirst Bancshares, 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. |
CNO Financial Ratings Revised by S&P & Fitch, Outlook Stable
CNO Financial Group's CNO ratings have been upgraded by credit rating agencies S&P Global Ratings and Fitch Ratings. Following this rating action, the company is now rated as investment grade by the leading credit rating giants, namely A.M. Best, Moody's, Fitch and S&P.S&P upgraded CNO Financial's senior unsecured debt rating to 'BBB-' from 'BB+' and financial strength rating of its operating units to 'A-' from 'BBB+' on Jun 21, 2019. The outlook is stable.Moreover, on Jun 14, 2019, Fitch promoted CNO Financial's senior unsecured debt rating to 'BBB-' from 'BB+' and the financial strength rating of the its operating arms to 'A-' from 'BBB+'. Here too, the outlook is stable.On Oct 4, 2018, Moody’s Investors Service raised CNO Financial's senior unsecured debt rating to 'Baa3' from 'Ba1' and the financial strength rating of the company's operating subsidiaries to 'A3' from 'Baa1'. The rating outlook is stable.While on Aug 26, 2015, A.M. Best enhanced ratings of CNO Financial Group to A-.Rationale Behind the RatingsThe ratings reflect the company’s reduced exposure to legacy long-term care (LTC) liabilities.Last September, it completed its pending long-term care reinsurance transaction with Wilton Reassurance Company. Under this deal, CNO Financial’s wholly-owned subsidiary, Bankers Life and Casualty Company, has ceded all its legacy (dating back to prior 2003) comprehensive and nursing home long-term care policies including the statutory reserves of around $2.7 billion to Wilton Re through 100% indemnity coinsurance. This deal has significantly lowered the company’s risk profile and is expected to improve the return on equity and cash flows going forward.The credit rating agencies also considered the company’s operating excellence as well as its solid balance sheet.
Shares of this Zacks Rank #4 (Sell) company have lost 14.1% in a year’s time against its industry’s rise of 6.6%.
Rating affirmations or upgrades from credit rating agencies play an important role in retaining investor confidence in the stock as well as maintaining its creditworthiness in the market. We believe, the company’s strong score with the credit rating agencies will help it write more business going forward.Stocks to ConsiderInvestors interested in the same space might take a look at some better-ranked stocks like American International Group, Inc. AIG, MetLife, Inc. MET and Kemper Corporation KMPR.You can seethe complete list of today’s Zacks #1 Rank stocks here.American International Group provides insurance products in North America and around the globe. It sports a Zacks Rank #1 (Strong Buy). In the trailing four quarters, the stock pulled off average positive surprise of 15.61%.MetLife offers insurance, annuities, employee benefits and asset management businesses. It came up with average positive surprise of 9.8% over the last four quarters. The company has a Zacks Rank #2 (Buy).Kemper is a diversified insurance holding company, offering property and casualty plus life and health insurance services in the United States. This Zacks #2 Ranked player managed to deliver average trailing four-quarter beat of 14.13%.
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 reportMetLife, Inc. (MET) : Free Stock Analysis ReportAmerican International Group, Inc. (AIG) : Free Stock Analysis ReportCNO Financial Group, Inc. (CNO) : Free Stock Analysis ReportKemper Corporation (KMPR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
What the Scientology Lawsuit Means for Celeb Members Like Tom Cruise & John Travolta
Click here to read the full article. A shocking lawsuit filed against the Church of Scientology earlier this month by an ex-Scientologist threatens to shake the church to its very core. According to Us Weekly, former member Jane Doe (she is choosing to remain anonymous) filed a lawsuit against the Church of Scientology on June 18, which included severe allegations of abuse, kidnapping and human trafficking. Whats unclear in this initial stage is whether the lawsuit has the potential to implicate any or all of the churchs celebrity members and involve them in future legal proceedings should the case move forward. Per Us Weekly, Does lawsuit, filed against both the Church of Scientology and its leader David Miscavige, includes a wide range of allegations relating to truly egregious behavior; kidnapping, human trafficking, stalking, libel, slander, invasion of privacy and intentional infliction of emotional distress are all included in the lawsuit. The lawsuit notes that t he Church of Scientology presents a facade to the outside world to disguise what, in reality, is nothing more than a cult built on mind control. Related stories We Finally Know Queen Elizabeth's Favorite Grandchild & It's Not William or Harry There's a Special Reason Chris Pratt & Katherine Schwarzenegger Chose This Honeymoon Location Is Nick an American Spy on The Handmaid's Tale? This Theory Thinks So The Church of Scientology has already responded to the filing with an official statement shooting down all of the allegations, stating, We are confident the lawsuit will fail. The church will vigorously defend itself against these unfounded allegations. Experts speaking to Us Weekly weighed in, noting the church has been in a bit of a crisis mode lately and this lawsuit could knock it even down even further. The church is in crisis, blogger Tony Ortega, who has been critical of Scientology in the past, told Us. Membership is dwindling, and its practices are being exposed in ways weve never seen before. Story continues Scientology critic Steve Mango of Mangotology.org, shared with Us that Scientology has been trying to cover up its crimes and abuse for decades. This suit is the beginning of the unraveling of Scientology as we know it. For decades, Miscavige and the Church of Scientology have been at the center of allegations about its practices and treatment of its members. Over the past 30 or so years, the church has also managed to gain notoriety for the celebrities who have become high-profile members and champions for the churchs teachings, including actors Tom Cruise , John Travolta, and Travoltas wife, Kelly Preston . Celebrities like Elisabeth Moss and Erika Christensen, who grew up in the church , have also spoken in a neutral to positive manner about the organization, implicitly giving their support for the work done within the church. Among the most famous former memberis Leah Remini , whose A+E documentary Scientology & the Aftermath has involved Remini speaking out publicly against the church and voicing similar allegations of potentially criminal behavior in the institution. Celebrity members have often been used by the church to help promote it and showcase what it believes are the positive aspects of its teachings and its congregation. Its unlikely any celebrity member will comment on this new lawsuit, but that wont prevent them from getting involved or implicated in the lawsuit further down the road. If any celebrity is brought into the lawsuit, it could spell serious trouble for the church, and it could shed even more light on the allegations new and old about the institution. The Church of Scientology has struck down many lawsuits in the past, but this new lawsuit has the potential to really rock the organization and those celebrities who have dedicated their lives to singing Scientologys praises. Sign up for SheKnows' Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Brazil Indie Games (BIG) Festival 2019 kicks off in Sao Paulo
Christopher Buffa,Wed, 26 Jun 2019 14:28:00
Brazil’s presence in the video game industry continues to grow, thanks to the country’s BIG Festival. Now in its seventh year, the popular event is more than a showcase of cool indie games. While going hands on with some of the best upcoming titles is a perk of attending the show, BIG Festival 2019 represents a coming together of professionals in the gaming business, which includes developers, publishers, investors, and members of the media.
This year’s show, which takes place at Club Homs in Sao Paulo, will be the biggest yet, with 330 registered companies from 24 countries. Festival organizers estimate that more than 550 people will schedule B2B meetings, where attendees will discuss a range of topics, from finding publishers for their indie games to teaming up with marketing companies to get their creations exposure on a global scale.
"In eight years, BIG Festival has placed Brazil on the map of international events in this sector. BIG Festival is part of a broader strategy, carried out by the Brazil Games Export Program, a partnership between Apex-Brasil, the Brazilian Trade and Investment Promotion Agency, and Abragames, the Brazilian Game Companies Association", said Eliana Russi, Executive Manager of Brazil Games.
In addition to having more registered companies and games, BIG 2019 will add three new elements to the festival. The first is the Humble Big New Talent Award. This distinction, created in partnership with Humble Bundle and set to be handed out during the show’s Festival Awards, will result in one Latin American development studio receiving a cash prize of $15,000.
There’s also the Nordic Games Discovery Contest (NGDC), which is a global competition that puts the spotlight on promising game creators and then pits them against each other. The Season IV initial qualifier will take place during BIG 2019.
Finally, there’s the Facebook Game Jam. 10 teams will battle it out over the course of 30 hours, starting on Saturday, June 29, to produce the best games possible. Winners have the opportunity to receive a bunch of prizes, like Facebook advertising credit and even an Oculus VR kit.
In addition to the 125 lectures and panels and the 75 games on display during the five-day event, we may well see the nextDead Cells, which made its debut at BIG Festival last year. Latin American game developers have struggled for years for the attention that they've sorely deserved. BIG Festival has lifted up thousands of indie developers, much in the way that IndieCade and Indie Megabooth do in the U.S., and we're hopeful that this celebratory trend continues for years to come in Brazil.
• Sega is letting other companies take the big risks on streaming and subscription services
• Report: Nexon cancels sale after failing to find a suitable suitor
• Microsoft, Nintendo, Sony to U.S. Government: Tariffs will hurt the game industry and consumers
• Epic Games Store exclusives 'do work' and Steam's revenue split is 'disastrous,' says Tim Sweeney |
Schneider Starts Intermodal Service At CSX Indianapolis Ramp
Schneider(NYSE:SNDR) has a new service offering at the CSX Indianapolis intermodal ramp for shippers looking to head into northeast U.S. markets.
Eastbound freight will travel from Indianapolis to North Bergen, New Jersey, and Worcester, Massachusetts. Each lane operates six days per week and offers eastbound two- to three-day transit times, competitive with truckload transit time. Inbound freight will travel from North Bergen, New Jersey, to Indianapolis.
Schneider said the new intermodal ramp service provides shippers in Indiana, Louisville, Kentucky and Cincinnati markets with a more cost-competitive transportation option to eastern markets.
"This is a new option for shippers to reliably move loads at transit times competitive to truckload," said Jim Filter, senior vice president of Schneider's intermodal unit. "We're also confident this will provide cost-competitive intermodal service to the region, as eastbound freight will not have to be drayed to Chicago."
Truck availability for a long-haul move to U.S. East Coast states is available in the Indianapolis market, but tighter than the U.S. as a whole. The Long-haul Tender Reject Index (SONAR: LTRI.IND), which measures carriers willing to accept loads tendered under contract terms, sits at 9.30 for the Indianapolis market, compared to 4.73 nationwide.
Source: SONAR
With the addition of the Indianapolis ramp, Schneider now offers intermodal service to more than 40 ramps throughout North America.
Image Sourced From Pixabay
See more from Benzinga
• Freight Brokers: June "Not As Busy As We Thought It Would Be"
• Sentencing Delayed For Truckers Accused Of Illegally Hauling Hemp
• FedEx Posts Weak Results For Fiscal Fourth Quarter And Full Year
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Is It Too Late To Consider Buying ServisFirst Bancshares, Inc. (NASDAQ:SFBS)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
ServisFirst Bancshares, Inc. (NASDAQ:SFBS), 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 $35.36 and falling to the lows of $31.34. 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 ServisFirst Bancshares's current trading price of $32.72 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 ServisFirst Bancshares’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 ServisFirst Bancshares
Good news, investors! ServisFirst Bancshares is still a bargain right now. According to my valuation, the intrinsic value for the stock is $44.8, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, ServisFirst Bancshares’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of ServisFirst Bancshares, it is expected to deliver a relatively unexciting earnings growth of 5.1%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for ServisFirst Bancshares, at least in the near term.
Are you a shareholder?Even though growth is relatively muted, since SFBS is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on SFBS for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SFBS. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on ServisFirst Bancshares. You can find everything you need to know about ServisFirst Bancshares inthe latest infographic research report. If you are no longer interested in ServisFirst Bancshares, 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. |
Sienna Miller Says Aging in Hollywood Is a Blessing: 'Youre Not Just Something in a Skirt'
Sienna Miller has come a long way from her headline-making beginnings in Hollywood from an it girl ingenue in the early aughts, to a critically-acclaimed actress starring in several buzz-worthy projects. Im older and a little more boring, Miller, 37, says with a laugh of the positive shift in her media coverage. Getting older is relieving. People are more willing to see you as a talented human being and not just something in a skirt. Its a relief. The actress, whose romantic life used to receive more attention than her professional one, is receiving rave reviews for her performance in American Woman , in which she plays a downtrodden mother looking for her missing daughter. I know its centered around the loss, but really the movie is about love and family and resilience, she says. [Its] beautiful to see these female characters and all of their mess. It was such a labor of love, [and] the thing Im proudest of in my whole career. Sienna Miller in American Woman | Roadside Attractions For much more on Sienna Miller, pick up the latest issue of PEOPLE on newsstands Friday Miller says she has started to feel a positive wave of change in the industry both in the variety of opportunities being created for people from different backgrounds, but also in how the media covers them. RELATED: Sienna Miller on Her Daughter Marlowe: Its the Most Loving, Intense Relationship That I Have Women are feeling more empowered to do things. Im kind of on the precipice of it, she admits, adding that she feels the media have become less invasive than they were earlier in her career. I was victimized to sell newspapers, she says. That part of it has died down and has cleared the space for me to do what I always wanted to do which was act. Currently Miller is relishing the range of women she is playing in film and on television. Theyre very different people, she says. I feel very fortunate to be trusted to do that. American Woman is now in theaters. The Loudest Voice premieres June 30 on Showtime. |
What CarMax Wants Investors to Know
CarMax(NYSE: KMX)most recent earnings report showed a return to robust sales growth as shopping trends stabilized in the used-car industry. But with a double-digit sales increase, the automobile retailer did more than just maintain market share over the last few months.
CarMax reported net income for the quarter of $266.7 million, or $1.59 a share, up from $238.7 million, or $1.33 a share, in the year-earlier period. Sales rose to $5.4 billion from $4.8 billion. Analyst consensus was for EPS of $1.49 and sales of $5.2 billion.
Executives are optimistic that this positive momentum will carry through to the rest of the fiscal year and beyond. In aconference call with investors, CEO Bill Nash and his team explained why they're bullish about CarMax's growth initiatives -- especially the move toward multichannel retailing. Below are a few highlights from that presentation.
Image source: Getty Images.
This strength in retail is the result of a combination of many factors, including our solid execution, which was supported by enhancements to the customer experience, a robust lending environment and a delay of February tax refunds into our first quarter.
Comparable-store sales are off to a great start in fiscal 2019, jumping 10% compared to the flat result over the past 12 months. Nash credited delayed income tax refunds for some of the boost but said the bigger factor was CarMax's improved retailing execution. Traffic to its upgraded car-browsing website rose 15%, and customer traffic in stores held flat to mark a slight improvement over the declines from the past year.
CarMax made the most out of that customer traffic rebound by converting more browsers into buyers, culminating in a13% bump in used-vehicle sales volumes.
We are committed to enhancing shareholder value through continued investment in our associates, our business and our capital structure.
CarMax made a number of financial moves in the period aimed at bettering long-term shareholder returns. The biggest priority was reinvestment in the business through the launch of 18 new stores over the past year. In addition, major cash outlays included higher compensation and increased spending on the digital sales channel.
Despite that spending, CarMax found room in the budget to repurchase over $200 million of stock while still allowing net profit to rise 12%.
As [we] look toward the future, we continue to believe the unique and powerful integration of our in-store and online capabilities provides us with a significant competitive advantage.
Because of the complicated, multistage buying process, CarMax believes most customers will prefer to shop using a mix of online and in-person experiences in the years to come. That judgment forms the basis for the retailer's multichannel sales strategy that pairs a fully online buying option with local customer service hubs.
CarMax only has demand data from one market to review so far, but Nash said early momentum is holding strong in the Atlanta area, where car-buying can occur totally online, including with a home delivery option. While cautioning that financial challenges will occur as they scale the service, management says the digital shopping segment could eventually be more efficient than their core retailing model.
For that reason, CarMax is plowing ahead with its multichannel selling strategy. It is planning to open 14 new lots and two stores dedicated to facilitating online purchasing on its way toward a national rollout over the next year or so. "We remain on track to provide our omnichannel experience to the majority of our customers by the end of fiscal year 2020," Nash said.
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Demitrios Kalogeropouloshas no position in any of the stocks mentioned. The Motley Fool recommends CarMax. The Motley Fool has adisclosure policy. |
Azul (AZUL) Shares Up 90% in a Year: What's Behind the Rally?
Shares of Azul SA AZUL have soared 90.5% in a year’s time against the industry’s 3.9% decline. Reasons Behind the Price Rise Strong passenger revenues on the back of rising travel demand have been aiding the company immensely. Notably, passenger revenues accounting for bulk of the company’s top line increased 17.9% in 2018. Moreover, the same augmented 15.3% during the first quarter. With demand remaining strong, the uptrend is likely to continue through the ongoing year. The company operates a young fleet of approximately 5.9 years (as of Dec 31, 2018), which is more fuel-efficient and help lowering the maintenance costs. In order to boost efficiency, the company is undergoing a free transformation process of adding Rodger Jets’ next- generation aircraft. The aircraft is expected to reduce costs significantly while generating higher revenues, which in turn, will aid in margin expansion. Additionally, this February, the company announced the acceleration of fleet renewal and modernization plan for 2019, where by it expects to increase the number of next-generation aircraft to 21, representing a rise of 8. With progression in the fleet transformation, the company’s unit costs have been declining significantly. Evidently, increase in efficiency led to a 2.4% decrease in CASK controlling for fuel, currency and the return of the payroll tax during the first quarter. Owing to the positivity surrounding the airline’s fleet transformation to include next-generation jets, Azul issued an encouraging outlook for unit costs in 2019. The metric is expected to dip between 1% and 3% year over year. The carrier aims to add 21 next-generation aircraft and replace 15 older jets in 2019. Consequently, half of Azul's capacity in 2019 will be held by next-generation jets. Azul also boasts an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the last four quarters, the average beat being 54.1%. Amid the optimism, the Zacks Consensus Estimate for the company’s second-quarter earnings has moved upward by more than 100% over the last 30 days. The same for 2019 earnings has been raised 4% in the same time frame. Zacks Rank & Key Picks Azul carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Air China Ltd. AIRYY, SkyWest, Inc. SKYW and Radiant Logistics RLGT. While Air China sports a Zacks Rank #1 (Strong Buy), SkyWest and Radiant Logistics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Shares of Air China, SkyWest and Radiant Logistics have rallied more than 15%, 26% and 38%, respectively, so far this 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 report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Air China Ltd. (AIRYY) : Free Stock Analysis Report Radiant Logistics, Inc. (RLGT) : Free Stock Analysis Report AZUL SA (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
In rambling interview, Trump pronounces Biden 'a lost soul'
President Trump took a swipe at Joe Biden on Wednesday morning, calling the former vice president a “lost soul.” Trump, who has also referred to the former vice president as “sleepy,” “Swampman” and “creepy,” made the remark during a phone interview on Fox Business after host Maria Bartiromo asked if the 2020 presidential election was a battle between capitalism and socialism. “It looks like it, it looks like it, except Biden. Biden is a lost soul,” Trump said. “He doesn’t know where he is, I don’t think. He’s changing his views rapidly.” Trump rambled through the interview, which ran for more than 45 minutes and past the scheduled end of Bartiromo’s show, occasionally talking over Bartiromo as she tried to bring him back on topic. He repeated claims that his 2016 campaign was spied on and suggested that Google is “trying to rig” next year’s election. President Trump and Democratic presidential candidate former Vice President Joe Biden. (Photos: Mark Wilson/Getty Images; Sean Rayford/Getty Images) The president has questioned Biden’s mental fitness since the former vice president entered the presidential race — suggesting Biden is “slower than he used to be” and “the weakest mentally” of the Democratic candidates. Trump told Bartiromo that he plans to watch the Democratic primary debate Wednesday night during his flight to Japan for the G20 summit this week. “It just seems very boring, but I’m going to watch it because I have to. That’s part of my life,” Trump said. “Do I want to watch these people? That’s a very unexciting group of people.” Biden won’t be in the Wednesday night debate, but another major candidate Trump has traded barbs with will be — Sen. Elizabeth Warren of Massachusetts. Trump has repeatedly referred to Warren as “Pocahontas” after she claimed partial Native American ancestry. Biden hasn’t responded to most of Trump’s attacks. After Trump repeated North Korean dictator Kim Jong Un’s insult in May that Biden was a “low IQ individual,” Biden’s campaign released a statement saying that the president’s remarks were “beneath the dignity of the office.” _____ Read more from Yahoo News: Former top U.S. diplomat deplores policy toward Iran 'untethered to any coherent strategy' Pentagon secretly struck back against Iranian cyberspies targeting U.S. ships Trump admits his Cabinet had 'some clinkers' For Dems, there's no chickening out at Clyburn's fish fry Chore wars: Are men doing enough housework? PHOTOS: They fled Venezuela's crisis by boat — then vanished |
History shows a Fed rate cut isn't always good for stocks
Be careful what you wish for.
Thestock markethas been rallying in recent weeks on hopes of the Federal Reserve will lower interest rates, but history suggests a rate cut can sends stocks on a complicated trajectory.
UBS strategist Francois Trahan notes how excited investors were after the cuts to the Fed funds rates in 2001 and 2007.
But that excitement soon faded. “The S&P 500 (^GSPC) subsequently declined from the first cut to its cycle trough by 33.3% and 47.7% respectively,” Trahan noted.
The Fed’s rate cut fuel just wasn’t enough to keep the market afloat.
“These short-lived rallies proved to be a trap for investors as market multiples soon reverted to trend and continued to compress in the face of weaker leading indicators,” Trahan noted.
One of those indicators is earnings growth.
“The ‘Fed Put’ of 2001 and 2007 ended when S&P 500 earnings growth hit 0%,” Trahan noted. “In the last two easing cycles ‘bad news was good news’ for stocks until earnings expectations began to decline.”
As it turns out, earnings expectations have been coming down in recent months. As Yahoo Financereportedon Monday, Wall Street is now expecting a 0.3% decline in year-over-year earnings growth in S&P 500 companies for the third quarter, compared to a previous forecast of a 0.2% gain, according to FactSet. This comes on top of a 2.6% year-over-year decline projected for the second quarter.
“Through our lens, lower rates will only help when they can foster a recovery in leading economic indicators, which history tells us is unlikely to occur before 2020 as rates work with a long lag,” Trahan wrote. “Unfortunately, gone are the days when lower rates led to an immediate recovery in market multiples.”
Read the latest financial and business news from Yahoo Finance
Scott Gamm is a reporter at Yahoo Finance. Follow him on Twitter@ScottGamm.
More from Scott:
• The earnings picture for 2019 is showing more signs of deterioration
• The next rate cut is unlikely to be caused by weak growth, economist explains
• Why Trump should be worried about the stock market selloff
• What the plunging 10-year Treasury yield says about the economy and stock market
• Why one top strategist is bullish on tech even with lingering trade worries
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit. |
A Note On Roper Technologies, Inc.'s (NYSE:ROP) ROE and Debt To Equity
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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. We'll use ROE to examine Roper Technologies, Inc. (NYSE:ROP), by way of a worked example.
Over the last twelve monthsRoper Technologies has recorded a ROE of 14%. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.14 in profit.
View our latest analysis for Roper Technologies
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Roper Technologies:
14% = US$1.1b ÷ US$8.1b (Based on the trailing twelve months to March 2019.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all earnings retained by the company, plus any capital paid in by shareholders. 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. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. 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. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. You can see in the graphic below that Roper Technologies has an ROE that is fairly close to the average for the Industrials industry (15%).
That's neither particularly good, nor bad. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
Although Roper Technologies does use debt, its debt to equity ratio of 0.55 is still low. Its very respectable ROE, combined with only modest debt, suggests the business is in good shape. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities.
Return on equity is one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
But when a business is high quality, the market often bids it up to a price that reflects this. 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.
If you would prefer 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Gold Skids as Fed Cools Heads Over Rate Cut
By Barani Krishnan
Investing.com - It had to come at some point, and the biggest monthly gain in three years seemed a good enough point for the gold market.
Gold’s magical June run seems to have hit the brakes a day after two of the Federal Reserve’s senior most bankers cooled the market’s ardor for rate-cut expectations by giving no guarantee for an easing next month, let alone a big one at that.
Spot gold, reflective of trades in bullion, traded at $1,412.24 per ounce by 2:00 PM ET (18:00 GMT), down $11.14, or 0.8%, on the day. It was the second negative day in a row for bullion, after seven consecutive days of gains prior. On Tuesday, the spot price of gold had one last hurrah, reaching $1,438.99, its highest since May 2013. It later turned. But even with the slide of the past two sessions, bullion still carried a gain of 8.8%, its most since June 2016.
Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange, settled Tuesday’s trade down $3.30, or 0.2%, at $1,415.40 per ounce. On Tuesday, it peaked at $1,442.15, its highest since Feb 2014. For the week, the gold futures contract remained up 1.3%. For the month, it showed a gain of 8.4%. also the most since June 2016.
Federal Reserve Chairman Jerome Powell said in a speech on Tuesday the central bank would be accommodative to reshaping its rate policy to ensure continuity of the growth of the U.S. economy. But he emphasized that politics won’t be a consideration in its decision, a veiled reference to pressure from President Donald Trump on the Fed over the past year to cut rates.
Additionally, St. Louis Fed President James Bullard said in an interview with Bloomberg Television that he didn’t see the necessity of a half-point, or 50 basis points, rate cut.
A half-point rate cut by as early as next month is what many bullish investors think is needed to continue feeding the rally in gold.
“Investors are not in the least bit enamored by Fed speak overnight as they were hoping for a bigger bang for their investment buck that the Feds would slash the fund's rates by 50bp July,” said Stephen Innes, head of commodities trading at OANDA in Singapore.
But other analysts are looking beyond, to the many standoffs that the United States has engaged with that could keep gold supported at around $1,400 and even help stage a later breakout toward $1,450.
“Everywhere you look, from South America to China and the Middle East, the United States is engaged in political battles and you need a hedge for that,” George Gero of RBC Wealth Management in New York said in an interview with Investing.com on Tuesday.
Another thing that could support gold is the troubled relationship between Trump and Powell.
Indeed, if the Fed opts for a smaller-than-expected rate cut, of say 25 basis points, it will probably amplify Trump’s criticism of both the central bank and the Fed chairman. There's talk the president might have Powell removed, although the Fed governor's actual term would go on. (The legality of such a move is not entirely clear.)
But a crisis of such magnitude at the Fed is likely to spark a safety flight to gold.
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A Note On Roper Technologies, Inc.'s (NYSE:ROP) ROE and Debt To Equity
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One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Roper Technologies, Inc. (NYSE:ROP), by way of a worked example.
Roper Technologies has a ROE of 14%, based on the last twelve months. That means that for every $1 worth of shareholders' equity, it generated $0.14 in profit.
View our latest analysis for Roper Technologies
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Roper Technologies:
14% = US$1.1b ÷ US$8.1b (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. 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 being equal,a high ROE is better than a low one. That means ROE can be used to compare two businesses.
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. You can see in the graphic below that Roper Technologies has an ROE that is fairly close to the average for the Industrials industry (15%).
That's not overly surprising. ROE doesn't tell us if the share price is low, but it can inform us to the nature of the business. For those looking for a bargain, other factors may be more important. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
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 case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
While Roper Technologies does have some debt, with debt to equity of just 0.55, we wouldn't say debt is excessive. The combination of modest debt and a very respectable ROE suggests this is a business worth watching. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In my book the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
If you would prefer 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.
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. |
BlackBerry's (BB) Q1 Earnings Match Estimates, Revenues Beat
BlackBerry LimitedBB reported healthy first-quarter fiscal 2020 (ended May 31, 2019) financial results. This was primarily driven by growth in software and services business, and lower total operating expenses, which helped narrow GAAP net loss on a year-over-year basis.Net LossOn a GAAP basis, net loss for the quarter was $35 million or loss of 9 cents per share compared with net loss of $60 million or loss of 11 cents per share in the year-ago quarter. The year-over-year improvement was primarily driven by top-line growth and lower operating expenses.However, non-GAAP net income came in at $5 million or 1 cent per share. The bottom line matched the Zacks Consensus Estimate.
BlackBerry Limited Price, Consensus and EPS Surprise
BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote
RevenuesGAAP revenues increased 16% year over year to $247 million. Software and services revenues were $240 million, up 27%. Geographically, North America generated revenues of $160 million compared with $139 million in the year-ago quarter. Revenues from Europe, Middle East and Africa were $61 million, up 17.3% year over year, while revenues from other regions totaled $26 million, up 18.2%.Non-GAAP revenues were $267 million compared with $217 million in the year-earlier quarter. The top line surpassed the consensus estimate of $249 million.Segmental PerformanceBy product and service type, non-GAAP revenues fromIoTincreased 5.4% year over year to $137 million.BlackBerry Cylancenon-GAAP revenues came in at $51 million, benefiting from its acquisition of cybersecurity firm, Cylance. This boosted the company’s software and services business as it has provided additional cyber security capabilities with advanced AI and machine learning technology. Non-GAAP revenues fromLicensingwere $72 million, up 14.3% year over year, whileOthernon-GAAP revenues decreased to $7 million from $24 million in the year-earlier quarter.Other DetailsGross profit was $177 million or 71.7% of revenues compared with $161 million or 75.6% of revenues in the year-ago quarter. Total operating expenses decreased to $213 million from $226 million. This was due to favorable adjustment of debentures fair value. Operating loss was $36 million compared with operating loss of $65 million in the prior-year quarter, while non-GAAP operating income was $5 million.Cash FlowDuring first-quarter fiscal 2020, BlackBerry utilized $64 million of net cash from operations compared with cash utilization of $7 million in the year-ago quarter. On a reported basis, the company consumed $66 million of free cash flow in the quarter.LiquidityAs of May 31, 2019, BlackBerry had $358 million in cash and equivalents with $645 million of long-term debt. The cybersecurity software and services company’s total cash, cash equivalents, short-term and long-term investments were $935 million as of the same date.OutlookBlackBerry has reiterated its outlook on non-GAAP revenue growth and non-GAAP profitability for fiscal 2020. The company expects non-GAAP revenue growth between 23% and 27%, on the back of double-digit percentage increase in billings. It anticipates non-GAAP revenues at IoT to grow 12-16% year over year, while the same for BlackBerry Cylance is likely to grow between 25% and 30%.Non-GAAP revenues at Licensing is projected to decline 5% and non-GAAP service access fees are expected to be between $10 and $20 million of revenues in fiscal 2020. BlackBerry continues to invest in the right opportunities to drive long-term growth and profitability. The company’s strong product cycle together with more than 30 impending launches of new secure communication products and services instill optimism.Zacks Rank & Stocks to ConsiderBlackBerry currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader industry are Comtech Telecommunications Corp. CMTL, Ubiquiti Networks, Inc. UBNT and Motorola Solutions, Inc. MSI. While Comtech and Ubiquiti sport a Zacks Rank #1 (Strong Buy), Motorola carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Comtech has long-term earnings growth expectation of 5%.Ubiquiti has long-term earnings growth expectation of 19.8%.Motorola has long-term earnings growth expectation of 7.7%.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 reportComtech Telecommunications Corp. (CMTL) : Free Stock Analysis ReportMotorola Solutions, Inc. (MSI) : Free Stock Analysis ReportUbiquiti Networks, Inc. (UBNT) : Free Stock Analysis ReportBlackBerry Limited (BB) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Who Has Been Selling Stitch Fix, Inc. (NASDAQ:SFIX) Shares?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inStitch Fix, Inc.(NASDAQ:SFIX).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Stitch Fix
Over the last year, we can see that the biggest insider sale was by the , Matthew Cohler, for US$8.2m worth of shares, at about US$31.13 per share. That means that an insider was selling shares at around the current price of US$30.74. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders netted US$61m for 2.1m shares sold. In the last year Stitch Fix insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Stitch Fix better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
The last three months saw significant insider selling at Stitch Fix. In total, insiders sold US$22m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Stitch Fix insiders own 23% of the company, worth about US$707m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
Insiders sold Stitch Fix shares recently, but they didn't buy any. And even if we look to the last year, we didn't see any purchases. On the plus side, Stitch Fix makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. Of course,the future is what matters most. So if you are interested in Stitch Fix, you should check out thisfreereport on analyst forecasts for the company.
But note:Stitch Fix may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Forget plant-based burgers: Arby's goes big on 'the meats' with meat-based vegetable
Though plant-based protein has been hot in the news, fast food restaurant chain Arby’s is bucking the trend.
Instead of adding vegetarian equivalents in their menu, the company went further to prove Arby's has "the meats" by announcing Wednesday that it is developing meat-based dishes that look like plants, aiming at carnivores who also desire vegetables.
“It's kind of a way of creating something for people who like proteins more than liking vegetables to ease into the vegetable community and kind of enjoy vegetables without having to eat them,” said Neville Craw, Arby's executive chef.
Its first product to sprout is called the “Marrot,” which looks like carrots but is made of marinated turkey breast. The dish contains Vitamin A, like a real carrot, and 30 grams of animal protein, according to the company.
Beyond Meat:The company introduces new, meatier plant-based burger
Plant-based test:How plant-based stacks up versus animal-based meats
While the “Megetable” series has been under development since April, they are not available to customers yet, according to Jim Taylor, Arby’s chief marketing officer. He said the company doesn't have a definitive timeline but is working to test it in some locations.
“We're still working through all of the hurdles that our products need to pass before they get into a restaurant for test,” he said.
The company said it has a few ideas about what's next but is yet to pursue a prototype like the "Marrot."
Burger King:It plans to release plant-based Impossible Whopper nationwide by end of year
Despite the vegetarian protein trend, Arby’s said it won’t launch meatless options like other food chains. In fact, Arby’s said the new series being developed is the company’s response to meat-free proteins, which has caused a growing movement in restaurant chains across the country.
Taylor said, “I think part of what is in our DNA as a brand is to continue to find surprising, delicious ways for people to enjoy a real, high-quality meat.”
Meanwhile,Burger Kingsaid it plans to release plant-based Impossible Whopper nationwide by the end of this year while QDOBA Mexican Eats has added Impossible Burger to its more than 730 locations nationwide.
AndDel Tacounveiled its new meatless tacos on April 25. The products it is selling are made by Beyond Meat, which went public in May and recentlylaunched a new, meatier version of its flagship burger.
Founded in 1964, Arby's has positioned itself as a meat-focused fast-food chain with a new motto of “We have the meats” in 2014, which helped to turn around its previous financial plight, according toCNBC.
In fulfilling its motto, Arby’s sells 160 million pounds of meat a year and it is known for serving a variety of meat, according to the company. Among more than 30 kinds of sandwiches in its current menu, more than half are made by meat other than beef, including pork, chicken and turkey. The company also used to serve products with lamb, duck, fish, elk and deer.
Follow Frances Yue on Twitter:@FrancesYue_.
This article originally appeared on USA TODAY:Forget plant-based burgers: Arby's goes big on 'the meats' with meat-based vegetable |
RBI says foreign firms can process abroad, but must store data in India
By Aditya Kalra
NEW DELHI (Reuters) - Foreign payment firms such as Mastercard and Visa can process transactions made in India outside of the country but the related data should be brought back for local storage within 24 hours, the Reserve Bank of India (RBI) said on Wednesday.
The announcement was made to clarify the central bank's directive in April last year that mandated foreign firms to store their payments data "only in India" for "unfettered supervisory access".
The RBI rules led to an aggressive lobbying effort from the United States government and American companies who said the directive would increase infrastructure costs and hurt firms' investment plans. A request to dilute the rules was declined last year, Reuters reported.
On Wednesday, the RBI stuck to its position but clarified that payment transactions can be processed outside the country if the companies so wish. The previous RBI directive was silent on whether data can be processed abroad or should only be done locally.
Still, even in cases where the transactions are processed abroad, the RBI said such data must be "deleted from the systems abroad and brought back to India" within 24 hours of payment processing.
"The clarity on processing, and the ability to do so overseas, is a welcome development. Although the clarifications do not ease the local-only storage requirement," said Kriti Trehan, a partner specializing in technology law at the Law Offices of Panag & Babu.
Mastercard and Visa did not immediately respond to a request for comment.
The RBI clarification comes days after India's commerce ministry, following a meeting with technology and payment companies, said the central bank would "look into" concerns raised by the industry.
The differences between American companies and India have further fuelled trade tensions between New Delhi and Washington. On Wednesday, U.S. Secretary of State Mike Pompeo sought to reduce these tensions, promising a renewed focus on negotiating better ties, but gave few specifics during a visit to the Indian capital.
India wants more stringent data storage rules so it can better access data and conduct investigations when the need arises.
Other than RBI's directive for payment companies, India has also drafted an overarching law on data storage which calls for all personal data determined to be critical to be processed locally.
(Reporting by Aditya Kalra; Edited by Martin Howell and Elaine Hardcastle) |
UPDATE 2-U.S. Democrats: Mueller testimony to set Russia record straight
(Recasts; adds details, background, fresh quotes)
By David Morgan
WASHINGTON, June 26 (Reuters) - With former U.S. Special Counsel Robert Mueller set to testify next month in Congress, Democrats are framing his appearance as a major opportunity for Americans to see how the Trump administration misled them about his two-year Russia probe.
Democratic lawmakers said on Wednesday that Mueller's testimony on July 17 will refute descriptions of his report put forward by President Donald Trump and his Attorney General William Barr.
"I think it will have a profound impact," said House of Representatives Judiciary Committee Chairman Jerrold Nadler, one of a handful of senior Democrats leading investigations of Trump, his turbulent presidency and his business interests.
"Attorney General Barr led a campaign of misinformation and deceived the American people about what was in the report. The president chimed in by repeatedly saying 'no collusion,' which is not what the report says," Nadler said.
Mueller's 448-page report, released publicly in April, found Russia meddled in the 2016 presidential election and that President Donald Trump's election campaign had multiple contacts with Russian officials. But it found insufficient evidence to establish a criminal conspiracy between the campaign and Moscow.
Trump has said the report shows he did not collude with Russia. The White House had no comment on Nadler's remarks.
Republicans said Mueller's appearance before Nadler's panel and the House of Representatives Intelligence Committee will give them a chance to advance their inquiry into the origins of the Russia probe, which they contend was part of an effort by politicized federal officials to undermine Trump.
"There's just a plethora of questions here that all go back to the timing, the integrity and the heart of this report. And those are all questions now that he's either going to have to answer or he's going to have to sit there and try to avoid," Representative Doug Collins, the top Republican on Nadler's committee, told Fox News.
The Mueller probe, originally launched by the FBI, has clouded Trump's presidency since he entered office in January 2017 and the administration's response has been to try to undermine Mueller and the FBI, while stonewalling Democrats in Congress who took up the probe after Mueller completed his work.
Earlier on Wednesday, Trump himself accused Mueller, without citing any evidence, of illegally terminating communications between two former FBI employees early in the investigation.
"Mueller terminated them illegally. He terminated all of the emails ... Robert Mueller terminated their text messages together. He terminated them. They're gone. And that's illegal. That's a crime," Trump said in an interview with Fox Business Network, referring to pair of FBI employees who exchanged disparaging messages about him.
Democrats said that the White House could try to prevent Mueller from testifying about his report but that it would likely fail.
"Mr. Mueller is an honest man who understands that congressional subpoenas are not optional," Nadler said. (Reporting by David Morgan and Susan Heavey Editing by Kevin Drawbaugh and Alistair Bell) |
If You Had Bought Enservco (NYSEMKT:ENSV) Stock Five Years Ago, You'd Be Sitting On A 83% Loss, Today
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Some stocks are best avoided. We really hate to see fellow investors lose their hard-earned money. For example, we sympathize with anyone who was caught holdingEnservco Corporation(NYSEMKT:ENSV) during the five years that saw its share price drop a whopping 83%. And some of the more recent buyers are probably worried, too, with the stock falling 65% in the last year. Furthermore, it's down 17% in about a quarter. That's not much fun for holders.
We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
See our latest analysis for Enservco
Given that Enservco didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over half a decade Enservco reduced its trailing twelve month revenue by 4.8% for each year. While far from catastrophic that is not good. If a business loses money, you want it to grow, so no surprises that the share price has dropped 30% each year in that time. We're generally averse to companies with declining revenues, but we're not alone in that. Fear of becoming a 'bagholder' may be keeping people away from this stock.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
If you are thinking of buying or selling Enservco stock, you should check out thisFREEdetailed report on its balance sheet.
While the broader market gained around 6.6% in the last year, Enservco shareholders lost 65%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 30% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. If you would like to research Enservco in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
Of courseEnservco 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. |
Securities and Exchanges Industry Near-Term Prospects Solid
The Zacks Securities and Exchanges industry comprises companies that operate physical or electronic marketplaces, which facilitate the buying and selling of stocks, stock options, bonds or commodity contracts.These companies generate revenues from the fees received from the listed companies on their exchanges. Industry players also provide a range of data and listing services to global financial and commodity markets, including pricing and reference data, exchange data, analytics, feeds, index services, desktops and connectivity solutions as well as corporate and ETF listing services on the company’s cash equity exchanges.Here are the industry’s three major themes.
• Diverse product offerings remain the primary growth catalyst. Demand is boosted by investors’ optimism and interest of corporates to access public capital. The industry’s product innovation efforts have been helping it better cater to the derivatives industry’s demands and complement the core product lines. This, in turn, has been aiding key industry players to strengthen their market position and global reach.
• The players in the Securities and Exchanges industry are largely dependent on product and service portfolios for revenues. Major services include trade execution, clearing, settlement services for securities and commodity contracts, listing services plus trading and clearing systems services. Other revenue sources include data products, financial indexes along with information and public company services. Maximization of transaction and clearing fees and lowering of transaction-based expenses drive profits. Sustainable trading volume growth drives transaction and clearing fees (a major component of the top line of industry players). Notably, increased market volatility boosts performance of the industry players.
• Focus on building a strategic economic market model via technological advancements and upgrade of products and services will help all exchanges to stay afloat amid changing industry dynamics. Additionally, strategic buyouts have led to a diversified product portfolio and industry participants to maintain their domestic market share as well as fortify global footprint.
Zacks Industry Rank Indicates Bright ProspectsThe Zacks Securities and Exchanges industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #108 which places it in the top 42% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, reflects favorable near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts have been gaining confidence in this group’s earnings growth potential. Evidently, the industry’s earnings estimate for the current year has inched up 0.4% in a month’s time.Before we present a few securities and exchanges stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.Industry Outperforms S&P 500 and SectorThe Zacks Securities and Exchanges industry has outperformed the Zacks S&P 500 composite and the broader Zacks Finance sector over the past year. The industry has rallied 22.5% compared with the S&P 500’s rise of 6.7% and the broader sector’s increase of 0.1% in the said time frame.
Industry’s Current ValuationOn the basis of trailing 12-month price-to-book (P/B), which is commonly used for valuing finance stocks, the industry is currently trading at 3.13X compared with the S&P 500’s 4.02X and the sector’s 2.67X.Over the last five years, the industry has traded as high as 3.17X, as low as 2.61X and at the median of 2.83X as the chart below shows.Price-to-Book (P/B) Ratio (TTM)
Price-to-Book (P/B) Ratio (TTM)
Bottom Line
Expansion of product portfolio is likely to drive the performance of industry players. Increase in trading volumes and product expansion through prudent acquisitions are expected to provide a cushion as well. Low reliance on debt is an added advantage.However, alterations in investment patterns and priorities, intense competition with the wave of mergers and acquisitions in the stock exchange industry and compliance with regulations pose challenges.The Zacks Securities and Exchanges space currently has just one stock carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.MarketAxess Holdings Inc. (MKTX): For this New York-domiciled company, the Zacks Consensus Estimate for 2019 EPS indicates a year-over-year rise of 1.4%. The company has an estimated long-term earnings growth rate of 5%. It came up with average positive surprise of 4.57% in the previous four reported quarters.
Price and Consensus: MKTX
This apart, we are presenting four stocks with a Zacks Rank #3 (Hold) that investors may want to hold on to for the time being.Cboe Global Markets, Inc.(CBOE): Headquartered in Chicago, the company has an estimated long-term earnings growth rate of 9%. It came up with average beat of 8.27% in the trailing four reported quarters.
Price and Consensus: CBOE
Nasdaq, Inc.(NDAQ): With respect to this New York-based company, the Zacks Consensus Estimate for 2019 EPS indicates year-over-year improvement of 0.2%. The company has an expected long-term earnings growth rate of 7.4%. The average earnings surprise is delivered at 1.50% in the last four reported quarters.
Price and Consensus: NDAQ
CME Group Inc.(CME): For this Chicago, IL-based company, the Zacks Consensus Estimate for 2019 EPS indicates a 1.1% year-over-year increase. The company has estimate projected long-term earnings growth rate of 6.6%. It pulled off average positive surprise of 1.42% for the preceding four reported quarters.
Price and Consensus: CME
Intercontinental Exchange Inc. (ICE): The Zacks Consensus Estimate for 2019 EPS of this Atlanta, GA, company indicates a year-over-year rise of 0.3%. The company long-term earnings are projected to grow at a rate of 8.2%. It pulled off average positive surprise of 3.23% in the preceding four reported quarters.
Price and Consensus: ICE
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 reportNasdaq, Inc. (NDAQ) : Free Stock Analysis ReportMarketAxess Holdings Inc. (MKTX) : Free Stock Analysis ReportIntercontinental Exchange Inc. (ICE) : Free Stock Analysis ReportCME Group Inc. (CME) : Free Stock Analysis ReportCboe Global Markets, Inc. (CBOE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Trump claims without evidence Mueller 'terminated' FBI texts: 'That's a crime'
President Trump on Wednesday claimed without evidence that former special counsel Robert Mueller terminated records of communications between FBI agents who exchanged text messages during the campaign and Muellers investigation. Mueller terminated them illegally. He terminated all of the emails, the president said in an interview with Fox Business host Maria Bartiromo. Robert Mueller terminated their text messages together. He terminated them. Theyre gone. And thats illegal. Thats a crime. Republicans say the texts show that Peter Strzok, the deputy assistant director of counterintelligence, and Lisa Page, an FBI attorney who was romantically involved with Strzok, were biased against Trump. The president charged in a tweet last year that 19,000 demanded Text messages between Peter Strzok and his FBI lover, Lisa Page, were purposely & illegally deleted, a claim that was debunked by Politifact . The messages, which could not be immediately retrieved owing to a glitch in the archiving system, have since been recovered, and some of them were published last year by the Senate Homeland Security Committee. Trump, though, suggested there are more that have yet to be released. These are sick people, he said. Wait till you see the rest of it. President Trump and Robert Mueller. (Photos: Mark Wilson/Getty Images; Andrew Harrer/Bloomberg via Getty Images) Trumps comments come a day after Mueller agreed to testify before the House Judiciary and Intelligence Committees on July 17 in an open session. I have been attacked for two and a half years with a phony, dishonest, crooked group of people in intelligence agencies and beyond, that have been doing nothing but attacking your president. And I have fought through that and now I hear Muellers going to go in yet again. I mean, how many times are we going to go through this? From the day I came into office, they hit me with a phony deal, he said. Muellers two-year investigation concluded that the Russian government interfered in the 2016 election in sweeping and systemic fashion. The Mueller report, released in April, found no conspiracy between the Trump campaign and Russia, but it identified at least 10 instances of possible obstruction of the investigation into the campaign on the part of Trump or his associates. The special counsel said that his office did not conclude whether or not Trump committed a crime, saying in a statement that his office could not bring criminal charges against the president because the team believed it to be unconstitutional. If we had had confidence that the president had clearly not committed a crime, we would have said so, said Mueller, adding, Charging the president with a crime is not an option we could consider. Story continues ___ Read more from Yahoo News: In rambling interview, Trump calls Biden 'a lost soul' AOC accuses Trump administration of creating concentration camps U.S. probably had excellent presidents who were gay, Buttigieg says Trump wants his next press secretary to be a cable news street fighter Orlando Sentinel endorses not Donald Trump for president View comments |
Those Who Purchased Enservco (NYSEMKT:ENSV) Shares Five Years Ago Have A 83% Loss To Show For It
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We're definitely into long term investing, but some companies are simply bad investments over any time frame. We don't wish catastrophic capital loss on anyone. Imagine if you heldEnservco Corporation(NYSEMKT:ENSV) for half a decade as the share price tanked 83%. We also note that the stock has performed poorly over the last year, with the share price down 65%. Furthermore, it's down 17% in about a quarter. That's not much fun for holders.
We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
See our latest analysis for Enservco
Enservco isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over half a decade Enservco reduced its trailing twelve month revenue by 4.8% for each year. While far from catastrophic that is not good. The share price fall of 30% (per year, over five years) is a stern reminder that money-losing companies are expected to grow revenue. It takes a certain kind of mental fortitude (or recklessness) to buy shares in a company that loses money and doesn't grow revenue. Fear of becoming a 'bagholder' may be keeping people away from this stock.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
Thisfreeinteractive report on Enservco'sbalance sheet strengthis a great place to start, if you want to investigate the stock further.
Investors in Enservco had a tough year, with a total loss of 65%, against a market gain of about 6.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 30% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Before spending more time on Enservcoit might be wise to click here to see if insiders have been buying or selling shares.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on 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. |
Does Severfield plc's (LON:SFR) 11% Earnings Growth Make It An Outperformer?
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When Severfield plc (LON:SFR) released its most recent earnings update (31 March 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Severfield's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not SFR actually performed well. Below is a quick commentary on how I see SFR has performed.
See our latest analysis for Severfield
SFR's trailing twelve-month earnings (from 31 March 2019) of UK£20m has jumped 11% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 49%, indicating the rate at which SFR is growing has slowed down. Why could this be happening? Well, let's examine what's occurring with margins and whether the whole industry is facing the same headwind.
In terms of returns from investment, Severfield has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 8.0% exceeds the GB Construction industry of 6.2%, indicating Severfield has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Severfield’s debt level, has increased over the past 3 years from 6.7% to 12%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 3.6% to 0.03% over the past 5 years.
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Severfield to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SFR’s future growth? Take a look at ourfree research report of analyst consensusfor SFR’s outlook.
2. Financial Health: Are SFR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Global chipmakers rally on Micron's upbeat results, Huawei shipments
(Reuters) - Shares of chipmakers rose on Wednesday after Micron Technology Inc forecast a recovery in chip demand in the second half of the year, easing concerns that rising trade tensions would exacerbate a slump in the sector.
The company also said it had resumed some shipments to Huawei Technologies after reviewing a U.S. ban on selling products to the Chinese smartphone maker.
The ban and an escalation in the trade war between the United States and China have threatened growth in a sector that is already grappling with oversupply.
But Micron's upbeat results and positive commentary on the demand outlook provided some hope, sparking a rally in beaten down shares of chipmakers.
Micron shares were up 10%, while those of Nvidia Corp, Intel Corp, Xilinx Inc and Advanced Micro Devices rose between 2% and 6%. Lam Research and Applied Materials also gained.
European peers including STMicroelectronics, Infineon, Dialog Semiconductor, BE Semiconductor and Siltronic were all trading higher.
"The bulls in Micron could simply not have asked for more," Evercore analysts' wrote in a note.
(Graphic: Micron YTD performance - https://tmsnrt.rs/2ZT1saX)
U.S. chipmakers suspended shipments to Huawei after the U.S. government on May 15 added the world's biggest telecoms equipment maker and 68 affiliates to an "Entity List", banning it from acquiring components and technology from U.S. firms without government approval.
Micron said it was unable to predict the volumes or time periods over which it will be able to ship products to Huawei, its biggest customer.
Analysts' from Morningstar said Micron results showed signs of improvement "against a weak market environment and fears that those conditions might be prolonged".
(Reporting by Sayanti Chakraborty in Bengaluru; Editing by Sweta Singh and Saumyadeb Chakrabarty) |
Does EnerSys (NYSE:ENS) Deserve A Spot On Your Watchlist?
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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeEnerSys(NYSE:ENS). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
View our latest analysis for EnerSys
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. EnerSys managed to grow EPS by 7.2% per year, over three years. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EnerSys maintained stable EBIT margins over the last year, all while growing revenue 8.8% to US$2.8b. That's progress.
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
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 EnerSys EPS100% free.
It makes me feel more secure owning shares in a company if insiders also own shares, thusly more closely aligning our interests. As a result, I'm encouraged by the fact that insiders own EnerSys shares worth a considerable sum. To be specific, they have US$31m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Despite being just 1.1% of the company, the value of that investment is enough to show insiders have plenty riding on the venture.
One positive for EnerSys is that it is growing EPS. That's nice to see. If that's not enough on its own, there is also the rather notable levels of insider ownership. The combination sparks joy for me, so I'd consider keeping the company on a watchlist. Once you've identified a business you like, the next step is to consider what you think it's worth. And right now is your chance to view our exclusivediscounted cashflow valuationof EnerSys. You might benefit from giving it a glance today.
Although EnerSys certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then thisfreelist of growing companies that insiders are buying, could be exactly what you're looking for.
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. |
Trump threatens to sue Twitter, Google, Facebook after issuing bias claims
Donald Trump has said the US should sue technology companies after complaining that they unfairly repress his message, on the same day that Congress heard from Facebook , Google and Twitter about misinformation end extremist content spread online. The US president spoke to Fox News Business on Wednesday morning, claiming that Twitter was totally biased towards Democrats. Mr Trump suggested accused Twitter of deliberately limiting his number of followers. The president has one of the most closely watched Twitter accounts in the world with 61.4 million followers, more than Twitters own corporate account. Twitter is just terrible, what they do. They dont let you get the word out. Ill tell you what, they should be sued because of whats happening with the bias, the president said. He added: These people are all Democrats, its totally biased toward Democrats. If I announced tomorrow that Im going to become a nice liberal Democrat, I would pick up five times more followers. A number of conservative voices have attacked large US tech firms including Twitter and Google for alleged bias but academic studies have not backed up the claims. Analysis of Googles search results by the Economist did not find evidence of bias but did suggest that sites rated highly by independent fact-checking organisations tended to be rewarded with higher search rankings. Mr Trump also took aim at EU competition commissioner, Margarethe Vestagher, who has brought actions against a string of US technology companies for exploiting dominant market positions. She hates the United States perhaps worse than any person Ive ever met, Mr Trump said in a televised phone call to his favoured news network. What she does to our country. Shes suing all our companies. We should be suing Google and Facebook, and all that, which perhaps we will, OK? Theyre suing Apple. Theyre suing everybody. They make it almost impossible to do business. Shortly after the presidents comments, Google, Facebook and Twitter executives appeared before the House Committee on Homeland Security to testify about their efforts to counter terror content and misinformation on social media. Story continues Representative Mike Rogers, the committee's top Republican said he had serious questions about Googles ability to be fair after undercover filming posted by the right-wing group Project Veritas. This report, and others like it, are a stark reminder of why the founders created the First Amendment, Mr Rogers said in his opening statement on Wednesday. We are in trouble if the views in the video represented Google company policy. He was referring to edited clip of a video showing Google employee, Jen Gennai, discussing the company's efforts to tackle potential foreign interference in the 2020 US presidential elections after Russia was found to have attempted to influence the 2016 vote. As part of the discussion, Ms Gennai commented that she believed breaking up Google was a bad idea because it would result in smaller companies being charged with "preventing the next Trump situation". Project Veritas claimed that this demonstrated Google's efforts to prevent Mr Trump being re-elected, a claim Ms Gennai said in a blog post was "absolute, unadulterated nonsense". Googles global director of information policy, Derek Slater, testified to the House committee that no employee could skew search results based on their own political beliefs. We are in the trust business, he told Mr Rogers. We have a long-term incentive to get that right. |
EnerSys (NYSE:ENS): What Are The Future Prospects?
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EnerSys's (NYSE:ENS) most recent earnings update in May 2019 showed that the business gained from a strong tailwind, eventuating to a double-digit earnings growth of 34%. Below is a brief commentary on my key takeaways on how market analysts predict EnerSys's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for EnerSys
Analysts' outlook for the coming year seems positive, with earnings rising by a significant 50%. This high growth in earnings is expected to continue, bringing the bottom line up to US$323m by 2022.
Even though it is informative knowing the growth year by year relative to today’s level, it may be more valuable to determine the rate at which the business is growing on average every year. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of EnerSys's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 19%. This means that, we can anticipate EnerSys will grow its earnings by 19% every year for the next few years.
For EnerSys, there are three pertinent factors you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is ENS 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 ENS is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ENS? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bitwise, Amun launch a new crypto ETP on Swiss stock exchange
Cryptocurrency asset manager Bitwise and Swiss fintech company Amun AG have launched a new exchange-traded product (ETP) on Switzerland’s top stock exchange SIX, and it promises to offer diversified liquid exposure to the nascent digital market.Bitwise has licensed “The Bitwise 10 Select Large Cap Crypto Index” to Amun AG, which will be used as the benchmark index for thenew ETPproduct - “Amun Bitwise Select 10 Large Cap Crypto Index ETP” with the ticker symbol KEYS.Notably, the ETP will not be available to U.S. customers, according to the statement from Bitwise.Bitwise said that the index will track the performance of up to 10 of the largest cryptocurrencies in the world, as measured and weighted by free-float and inflation-adjusted market capitalization.
Currently, the index comprises of eight cryptocurrencies - bitcoin (weight: 67.80%), ether (11.50%), XRP (8.33%), bitcoin cash (3.52%), litecoin (3.47%), EOS (3.36%) Stellar lumens (1.10%) and Cardano (0.90%), per the statements.
The index will provide non-U.S. investors “diversified exposure” to the crypto markets, said Matt Hougan, global head of research at Bitwise Asset Management.
The index will be rebalanced and reconstituted every month. Hougan said it is designed for Swiss investors who want to “gain and maintain exposure to the most important crypto projects in the world.”Bitwise built the ETP using Amun's Onyx issuance and administration platform, Hany Rashwan, CEO of Amun, told The Block, adding that “we have 2-3 additional customers that will use the platform by Fall to list their own products. After that point, we will open this platform up much more broadly.”
Amun AG alreadymanagesfour crypto ETPs, which are also listed on the SIX exchange -Crypto Basket Index ETP(HODL), Bitcoin ETP (ABTC), Ethereum ETP ((AETH) and the recently launched Amun XRP ETP (AXRP).All the four ETPs are “heavily traded,” Amun AG said in the statement, adding that the HODL ETP is the “most traded USD-denominated ETP on SIX since inception on Nov. 21, 2018, in terms of trading volume.”
“Of all the existing crypto products currently listed globally, the Amun Bitwise Select 10 ETP is uniquely the most diversified listed crypto product,” said Rashwan. |
Cambium Opens Below IPO Price
Cambium Networks(NASDAQ:CMBM) made its public debut Wednesday morning, opening at $10.08 after being priced at $12 per share.
Founded in 2011, Cambium provides wireless broadband networking infrastructure solutions for internet service providers, enterprises and government agencies. Its wireless portfolio includes intelligent radios, smart antennas, radio frequency, or RF, algorithms, wireless-aware switches and its cloud-based network management software.
The intelligent edge – automated optimization of data flow at the outermost points in the network enabled by Cambium's proprietary RF technology and software – offers network operators increased performance, visibility, control and management.
The Illinois, Chicago-based company touts a customer base of over 10,000 network operators, with about 70% of revenues coming from existing customers.
The stock traded at $9.82 per share at time of publication.
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Iceland index inclusion leaves fund managers cold
By Karin Strohecker
LONDON, June 26 (Reuters) - Iceland may soon reclaim a place on the investment stage through inclusion in global equity indexes, but with pricey stocks, a fading economy and reforms done and dusted, fund managers are not rushing back there.
Iceland is already on course to join index provider FTSE Russell's Frontier Market benchmark in September and rival MSCI said late on Tuesday that it might add its Icelandic stock index to its Frontier Market (FM) equity benchmarks.
Investors' reaction to the index announcement was muted however, with Reykjavik's main equity index slipping 0.6% on Wednesday -- more than the 0.2% decline in MSCI's FM 100 index of the largest and most liquid frontier market stocks. Icelandic stocks have risen broadly in line with the MSCI FM 100 index year-to-date.
The North Atlantic island has almost fully emerged from the 2008 financial crisis that led to the collapse of its three largest banks and the introduction of capital controls.
Capital curbs were finally lifted in 2017 and reserves have been rebuilt, helping stabilise the economy.
"All the good things have happened," said Andrew Brudenell, frontier markets portfolio manager at Ashmore Group. He is no rush to add Icelandic stocks which deliver "very low returns" and whose businesses are already overcapitalised.
"This is all very nice, but we like structural change, we needed to be in this three years ago and we couldn't get in because of capital controls ... but now it is all priced in."
Iceland's $25 billion economy has a history of spectacular booms and busts, having gone through over 20 financial crisis since 1875.
Its main equity index includes 17 stocks, though MSCI's Iceland index, filtering out smaller and less liquid stocks, lists just 12 constituents. Of those, only 11 are potentially large and liquid enough to join MSCI's frontier markets index, the firm said in its consultation document.
Iceland's MSCI index is expected to have a market capitalisation of $2.5 billion once in the index, nearly matching Lebanon and Bangladesh. The country's weighting in the index would be 3.5%, MSCI said.
Equity indexes in frontier markets -- a subset of often riskier and less liquid emerging markets -- are followed by less passive money than their big emerging market peers, meaning an index inclusion has less pulling power. Only a fraction of the estimated $1.5 trillion that are benchmarked against MSCI emerging market indexes are following frontier market benchmarks.
Iceland's economy is expected to contract by 0.4% in 2019, according to the central bank, which slashed interest rates to the lowest since 2011 on Wednesday. It cited a deeper than expected contraction in tourism, a main source of revenue, following the collapse in March of low-cost airline WOW Air.
"Across frontier markets, you often expect to be benefiting from the reform process as it is going on," said Julian Mayo at Fiera Capital. "Can you foresee very, very rapid growth in the economy? The answer is not really."
Liquidity is another challenge. Apart from holding company Marel, active in meat processing and other food sector activities, and lender Arion Banki, few stocks are liquid enough to trade in or out of, fund managers said.
MSCI will consult with investors over Iceland's inclusion until end-October and announce its decision in November with a view to proceeding in one step at the May 2020 semi-annual index review, the provider said in its consultation document.
(Reporting by Karin Strohecker; Editing by Catherine Evans) |
The Latest: Germany sizzles in record June heat
BERLIN (AP) — The Latest on the heat wave in Europe (all times local): 4:40 p.m. Germany's meteorological agency says it has registered a new national temperature record for June as large parts of Europe are gripped by a heat wave. The Deutscher Wetterdienst said Wednesday that a preliminary reading showed the mercury reached 38.6 degrees Celsius (101.5 Fahrenheit) in Coschen, near the Polish border, at 2.50 p.m. (1250 GMT). That's a tenth of a degree Celsius higher than the previous national record for June of 38.5 C (101.3 F) set in 1947 in southwestern Germany. ___ 12:50 p.m. Paris is banning older cars for the day as a heat wave aggravates the city's pollution. Regional authorities estimate the measure put into place Wednesday affects nearly 60% of vehicles circulating in the Paris region, including many delivery trucks and older cars with higher emissions than newer models. Violators face fines. Around France, some schools have been closed because of the high temperatures, which are expected to go up to 39 degrees Celsius (102 Fahrenheit) in the Paris area later this week and bake much of the country, from the Pyrenees in the southwest to the German border in the northeast. Such temperatures are rare in France, where most homes and many buildings do not have air conditioning. French charities and local officials are providing extra help for the elderly, the homeless and the sick this week, remembering that some 15,000 people, many of them elderly, died in France during a 2003 heat wave. ___ 10:30 a.m. Large parts of western and central Europe are sweating under blazing temperatures, with authorities in one German region imposing temporary speed limits on some stretches of the autobahn as a precaution against heat damage. Authorities have warned that temperatures could top 40 degrees Celsius (104 Fahrenheit) in some parts of the continent over the coming days as a plume of dry, hot air moves north from Africa. The transport ministry in Germany's eastern Saxony-Anhalt state said it has imposed speed limits of 100 kph or 120 kph (62 mph or 75 mph) on several short stretches of highway until further notice. Those stretches usually have no speed limit. About half of Spain's provinces were on alert for high temperatures. Zaragoza was forecast to be the hottest on Wednesday, with 39 degrees Celsius, building to 44 degrees on Saturday, according to the government weather agency AEMET. |
Companies to Watch: General Mills has mixed quarter, Target announces sales event, Apple buys start-up
Here are the companies Yahoo Finance is watching today.
A mixed quarter atGeneral Mills(GIS). The food giant beat on profits last quarter but sales came up short, especially in North America. The CEO says the company has plans in place to accelerate growth into the rest of the year.
Amazon(AMZN) won't be the only place to find a deal on July 15 and 16.Target(TGT) is launching its own "Deal Days" — promising exclusive sales on toys, clothing and products for your home. It's not the only one taking on Amazon during Prime Day.Ebay(EBAY) is planning what it calls a "crash sale" with 50% off deals. Last year, Amazon's servers struggled to keep up with demand.
Apple(AAPL) is stepping in to save a company making self-driving cars. It purchased Drive.ai, a startup once valued at $200 million. Drive.ai was on the verge of shutting down, and had filed paperwork in California to close permanently. The price Apple paid wasn't disclosed, but it's expected to be less than $77 million.
The FAA is removing three senior managers who oversawSouthwest Airlines(LUV). The decision was made after whistleblowers pointed out they weren't doing their job correctly, according to the Wall Street Journal. At the same time, the Transportation Department is looking into lapses in documenting maintenance issues by the airline.
Netflix(NFLX) is set to lose its Number 1 show. “The Office” will go back to Comcast in 2021 and launch on NBC Universal's new streaming service. Netflix paid $100 million for its current deal with the popular comedy. The show ended its nine-season run on NBC in 2013. |
2 reopened Atlantic City casinos reshape market in 1st year
ATLANTIC CITY, N.J. (AP) — June 27, 2018, was a day this seaside gambling resort had long waited for. Two of the five casinos that had shut down over the past four years were reopening. The former Trump Taj Mahal was reborn as the Hard Rock, and the former Revel became the Ocean Resort Casino. Together they restored more than 6,000 of the 11,000 casino jobs that had been lost in the most brutal stretch Atlantic City's casino industry had ever endured, though some have since been cut. But it also was a day that brought some caution. Many analysts and industry insiders questioned whether Atlantic City, which had just regained its groove as a smaller market, could handle two new competitors. A year later, the verdict is in: More casinos has meant smaller profits. The nine casinos saw their gross operating profit decline by nearly 30% in the first quarter of this year compared to the same period last year, when there were only seven. "We're very happy with where we stand in the market," said Joe Lupo, Hard Rock's president and a former top executive with Atlantic City's dominant casino, the Borgata. "There's a renewed energy in the market here because of our brand and our presence. In May, we were No., 2 for casino revenue. For a property open less than a year, that's quite an accomplishment." Hard Rock offers live entertainment every night of the week, and has drawn top-name acts to Atlantic City, some of them for the first time, even with pricey tickets that some fans struggle to afford. Its collection of rock 'n' roll memorabilia is distributed throughout the property, including Elvis Presley's Rolls Royce, the Beatles' collarless onstage suits, a Michael Jackson glove, and scores of guitars played by artists from every genre. In the first five months of this year, Hard Rock ranks fifth out of the nine casinos in terms of total gambling revenue, with $121.7 million. Story continues Ocean has had a harder time of it. It sat idle for four years until Colorado developer Bruce Deifik bought it — sight unseen — in early 2018. It debuted last June, but by September, it was already hemorrhaging cash. In January, Deifik handed it over to Luxor Capital, a New York hedge fund that was one of the property's lenders; three months later, he died in a car crash in Colorado. Luxor chose Eric Matejevich, a veteran casino executive, to help turn the property around. That included a $70 million cash infusion, a new marketing plan and name change — it is now called the Ocean Casino Resort instead of the Ocean Resort Casino, to emphasize its gambling offerings — and accelerated plans for new eateries and retail businesses. "Four months ago, we were losing a million and a half dollars a week, and now we are profitable," Matejevich said. Ocean plans to reopen an additional 500 hotel rooms within the next year, expand its food and retail offerings, and is still wrestling with whether to open a buffet — something many customers have called for. In the first five months of this year, Ocean has won $80.5 million, trailing all but Resorts and Bally's. But Matejevich said positive trends are emerging, including the property setting net slot revenue records in April and May, something he expects to continue at least through August. Luxor said it "has no intention to sell Ocean anytime soon." "While some rumors still remain about the financial stability of Ocean, the noise has understandably died down lately," the company said in a statement. "Obviously we are not investing millions of dollars into these capital improvements to close the property. We're investing because we believe in Ocean. We believe it has the potential to be the premier guest experience in Atlantic City and for us, a highly profitable investment. "June has been the best month in the history of the property and we believe, based on current trends, that Ocean is now self-funding going forward," the statement read. "And we are highly confident the financial future for the property is a prosperous one." The Associated Press questioned more than 100 Atlantic City gamblers who have visited both casinos. Many said they liked the energy and vibe at Hard Rock; others said they found Ocean pleasingly laid back and quieter. Ocean's hotel rooms were widely praised, and its sports book is regarded as one of Atlantic City's best. Significant temperature variations on the Hard Rock casino floor were noticed by many patrons; the property is replacing its air conditioning system. "Ocean is my second home; it has a beautiful, airy casino that in parts even shows the ocean," said Lynn Manuell, a New York educator. "Every room is spectacular and the food is wonderful. I like Hard Rock as well. They have a great buffet and it's a bright and high energy." Christine Ruggiero O'Brien of Patchogue, New York, has been visiting Atlantic City once a month for the past year, and has tried both places numerous times. She said Ocean's casino "is expansive and never feels cramped." "I love that I never have an issue finding a table at Hard Rock," she said. "The staff has gone above and beyond to keep me playing there," despite cigarette smoke she describes as "overwhelming" at times. ___ Follow Wayne Parry at http://twitter.com/WayneParryAC |
Police officer dad 'pulls over' 10-month-old daughter in adorable video
Can one exercise the right to remain silent if they haven't yet learned how to speak?
That's the dilemma one 10-month-old girl faced after she was playfullypulled overby her policeman father.
Alex Kipp, an officer with the Orlando Police Department, was returning home from work Tuesday when he spotted his baby daughter, Talynn, driving the wrong way down the road in her toy car.
Realizing the nature of the very adorable crime, Kipp put his lights on and pulled the juvenile offender over.
"License, registration and proof of insurance," the officer requests in a now viral video.
After Talynn giggles at her father's demand, he reassures her that he very much means business.
"I don’t believe this is a laughing matter, ma’am," Kipp tells the beaming baby.
Thankfully, since Talynn was a first-time offender, her dad let her off with just a warning. |
Lena Headey, Sigourney Weaver and Awkwafina Join 'Dark Crystal' Cast at Netflix — First Look at 30 Characters
Game of Thrones vet Lena Headey , movie icon Sigourney Weaver and Crazy Rich Asians standout Awkwafina have been announced as additional voice actors for The Dark Crystal: Age of Resistance , Netflix’s prequel series to the 1982 Jim Henson film. Premiering Friday, Aug. 30 with 10 one-hour episodes, The Dark Crystal: Age of Resistance tells a new story set many years before the events of the movie, in which world of Thra is dying. The Crystal of Truth is at the heart of Thra, but it has been damaged/corrupted by the evil Skeksis, and a sickness spreads across the land. When three Gelfling uncover the horrific truth behind the power of the Skeksis, an adventure unfolds as the fires of rebellion are lit and an epic battle for the planet begins. Related stories Orange Is the New Black's Final Season Trailer Teases Piper's Post-Prison Life and the Return of [Spoiler] -- WATCH The Office Leaving Netflix for NBC's Streaming Service in 2021 The Prom: Meryl Streep, Nicole Kidman, Ariana Grande and More Join the Cast of Ryan Murphy's Netflix Movie Among the new cast additions, Headey, Weaver and Awkwafina will respectively voice Maudra Fara, The Myth-Speaker (a voice-only character) and The Collector, while Benedict Wong ( Doctor Strange ), Hannah John-Kamen ( Killjoys ) and Dave Goelz ( The Dark Crystal ) will voice The General, Naia and a Fizzgig named Baffi. Check out dozens of first looks at the characters . Launch Gallery: <i>Dark Crystal: Age of Resistance</i>: Meet the Voice Cast Sign up for TVLine's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
How Financially Strong Is EnerSys (NYSE:ENS)?
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While small-cap stocks, such as EnerSys (NYSE:ENS) with its market cap of US$2.9b, 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. The following basic checks can help you get a picture of the company's balance sheet strength. However, these checks don't give you a full picture, so I recommend youdig deeper yourself into ENS here.
ENS has built up its total debt levels in the last twelve months, from US$598m to US$1.0b – this includes long-term debt. With this growth in debt, ENS currently has US$299m remaining in cash and short-term investments , ready to be used for running the business. On top of this, ENS has generated cash from operations of US$198m during the same period of time, resulting in an operating cash to total debt ratio of 19%, signalling that ENS’s current level of operating cash is not high enough to cover debt.
At the current liabilities level of US$613m, the company has been able to meet these commitments with a current assets level of US$1.5b, leading to a 2.51x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Electrical 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.
ENS is a relatively highly levered company with a debt-to-equity of 81%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. We can check to see whether ENS is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In ENS's, case, the ratio of 8.86x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving ENS ample headroom to grow its debt facilities.
Although ENS’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 ENS's financial health. Other important fundamentals need to be considered alongside. You should continue to research EnerSys to get a more holistic view of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ENS’s future growth? Take a look at ourfree research report of analyst consensusfor ENS’s outlook.
2. Valuation: What is ENS 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 ENS 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. |
Boston Wayfair workers threaten walkout over sale to U.S. immigrant camp
BOSTON, June 26 (Reuters) - Hundreds of employees of Wayfair Inc are expected to walk off the job on Wednesday in protest of what they said was the retailer's sale of more than $200,000 in bedroom furniture for a Texas detention facility for migrant children.
The protest, in the online furniture retailer's home city of Boston, marks the latest outpouring of anger over Republican U.S. President Donald Trump's efforts to crack down on illegal and legal immigration. It has drawn the support of high-profile Democrats including U.S. Representative Alexandria Ocasio-Cortez of New York and Massachusetts U.S. Senator and presidential candidate Elizabeth Warren.
The 1:30 p.m. ET (1730 GMT) walkout follows a letter signed by more than 500 employees earlier this week that said an order for more than $200,000 of bedroom furniture was destined for a facility in Carrizo Springs, Texas that would house migrant children seeking asylum.
It demanded that Wayfair stop selling to migrant detention camps and that it give profits of the sale, which they claim amount to $86,000, to a Texas-based non-profit agency offering legal services to immigrants.
"This is a peaceful voluntary walkout & we encourage any Wayfairians to join us," protest organizers said on a Twitter account named @wayfairwalkout. "We oppose & reject the behavior of our government at the Southern Border."
Wayfair did not respond to a request for comment. The @wayfairwalkout account referred Reuters to the company and Reuters was not able to confirm it was created by Wayfair employees.
Wayfair management rejected the petition's demands in an internal memo on Tuesday, according to the Boston Globe.
"We also believe in the importance of respecting diversity of thought within our organization and across our customer base," the unsigned letter read, according to the newspaper. "No matter how strongly any one of us feels about an issue, it is important to keep in mind that not all employees or customers agree."
Criticism has mounted this week over the detention of migrant children in overcrowded, squalid conditions. (Reporting by Tim McLaughlin, additional reporting by Melissa Fares in New York; Editing by Scott Malone and Steve Orlofsky) |
Micron (MU) Q3 Earnings and Revenues Top Estimates, Fall Y/Y
Micron Technology, Inc . MU reported third-quarter fiscal 2019 non-GAAP earnings per share of $1.05, which surpassed the Zacks Consensus Estimate of 75 cents but were lower than the year-ago quarter’s figure of $3.15. Micron’s revenues of $4.8 billion in the quarter under review exceeded the Zacks Consensus Estimate of $4.66 billion but dropped around 33% on a year-over-year basis. Industry oversupply and higher-than-expected decline in DRAM and NAND pricing remain concerns. Moreover, restriction on sales to Huawei negatively impacted its DRAM and NAND revenues. Although the company is reporting a drastic year-over-year fall in revenues and earnings, its better-than-expected third-quarter fiscal 2019 results coupled with an improved outlook for DRAM are positives. With progress in customer inventory adjustments in most of its end-markets, the company expects bit demand for DRAM to return to healthy year-over-year growth in the second half of 2019. Micron anticipates a strong uptick in DRAM bit shipments for the cloud, graphics and PC markets during the fiscal fourth quarter and thereafter. Micron Technology, Inc. Price, Consensus and EPS Surprise Micron Technology, Inc. Price, Consensus and EPS Surprise Revenue Details DRAM revenues of $3 billion, accounting for 64% of total revenues in the quarter under discussion, plunged 45% year over year and 19%, sequentially. Sequentially average selling price (ASP) of DRAM approached 20% while shipment quantities were flat. Bit shipments in DRAM were adversely impacted by the Huawei ban. NAND revenues of $1.5 billion, representing 31% of the total top line, were down 25% on a year-over-year basis and 18% quarter over quarter. While NAND ASP decreased in the mid-teen’s percentage band, shipment quantities contracted in the mid-single digit range sequentially. The timing of demand from a large customer benefited NAND bit shipments. When adjusted for Huawei, bit shipments came in better than the company’s prediction owing to solid component sales. High-value solutions contribute to more than two-thirds of NAND revenues. Business unit wise, revenues of the computing and networking business (CNBU) unit deteriorated 48% from the year-ago quarter and 13% sequentially to $2.1 billion. Weak pricing across major market segments remained a headwind. However, normalized customer inventory levels — particularly in graphics and client — expanded shipment volume in the quarter. Revenues from the Mobile Business Unit (MBU) of $1.2 billion declined 33% on a year-over-year basis and 27% sequentially due to lower shipments to Huawei. Adverse pricing and DRAM volume were dampeners. Nonetheless, sturdy growth in managed NAND products led to a skyrocketing 200% increase in bit shipments. The Embedded Business Unit revenues logged $700 million, down 22% from the year-ago quarter and 11% from the previous quarter due to softer pricing, inventory adjustments in the consumer segment and macroeconomic downturns. Revenues from the Storage Business Unit (SBU) comprising SSD NAND components and 3D XPoint totaled $813 million, down 29% on a year-over-year basis and 20% sequentially due to competitive pricing. Moreover, large one-time sale that the company undertook in the year-ago quarter induced a tough year-over-year comparison on component volumes. Margins Micron’s non-GAAP gross profit of $1.88 billion slumped 60% from the prior-year period. Non-GAAP gross margin fell from 60.9% in the year-ago quarter to 39.3%, attributable to lower pricing of both DRAM and NAND. Notably, DRAM and NAND production cost reductions were also not enough to outweigh the impact of a steep decline in prices on the company’s gross margins. Moreover, IMFT related underutilization charges had a negative impact of nearly 200 basis points. Micron’s non-GAAP operating income tanked 72.6% year over year to $1.1 billion. Non-GAAP operating margin fell from 51.5% in the prior-year quarter to 23.2%. Balance Sheet and Cash Flow The company exited the quarter with cash and short-term investments of $6.689 billion compared with $7.533 billion at the end of the preceding quarter. Micron’s long-term debt reduced to $3.563 billion from $3.604 billion in the prior quarter. The company generated operating cash flow of $2.7 billion compared with $3.44 billion in the previous quarter. Adjusted free cash flow during the reported quarter was $500 million, down from $1 billion in the sequential quarter and $2.2 billion in the year-ago period. During the quarter under consideration, the company repurchased 4 million shares worth $157 million under the authorized buyback program. The company bought back shares worth $702 million in the February quarter and around $1.8 billion in the November quarter. So far this fiscal, the company repurchased 67 million shares for $2.7 billion. Outlook Management is optimistic that 5G adoption, advent of the foldable phones and advanced cameras will drive growth for the company’s products. Story continues As CPU shortages begin to improve, DRAM bit shipments are likely to return to growth curve in the PC market. In automotive, while slowdown in global auto sales is a woe, rising demand for in-vehicle infotainment and advanced driver assistance systems is likely to steadily drive content growth. Micron has slightly raised its outlook for DRAM bit demand while keeping the supply forecast intact. For 2019, DRAM bit demand is envisioned to surge in mid-teens percentage (earlier low to mid-teens) and bit supply is likely to grow by a mid-to-high teens percentage. Coming to NAND, there is a glut in the market with surplus supply due to industry’s transition from 2D NAND production to 3D NAND. NAND bit demand is still assumed to grow in mid-30s percentage. NAND bit demand is inversely related to price declines. However, due to the ongoing transition of SSD portfolio, NAND shipment growth in the fiscal fourth quarter is likely to be limited. Nonetheless, management is upbeat that demand elasticity will lead to stabilization in the NAND market in the second half of 2019. However, as inventory levels for suppliers remain elevated, the company believes that in order to draw a demand-supply balance, further cuts in CapEx and bit supply will be required. All these prompted the company to tighten its capital expenditure budget for fiscal 2019 to approximately $9 billion from the past estimate of $9-$9.5 billion. Moreover, to tackle the market congestion, the company announced that it will continue to idle 5% of its DRAM wafer starts. Moreover, it is slashing its NAND chip wafer starts by about 10%, up from 5% announced earlier. For the fiscal fourth quarter, the company guided revenues of $4.3-$4.7 billion. The mid-point of $4.5 billion is above the current Zacks Consensus Estimate of $4.48 billion. The company projects earnings in the range of 38-52 cents per share for the fiscal fourth quarter, which is significantly below the current Zacks Consensus Estimate of 59 cents. Micron expects non-GAAP gross margin of 29% (+/- 150 bps) for the fiscal fourth quarter. Operating expenses on a non-GAAP basis are likely to be $785 million (+/- $25 million). Zacks Rank and Stocks to Consider Currently, Micron has a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the broader technology sector are eGain Corporation EGAN, Rosetta Stone RST and j2 Global, Inc. JCOM, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Long-term earnings growth rate for eGain, Rosetta Stone and j2 Global is currently projected at 30%, 12.5% and 8%, 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 >> Click to get this free report j2 Global, Inc. (JCOM) : Free Stock Analysis Report eGain Corporation (EGAN) : Free Stock Analysis Report Rosetta Stone (RST) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
What does EnerSys's (NYSE:ENS) Balance Sheet Tell Us About Its Future?
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Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as EnerSys (NYSE:ENS), with a market capitalization of US$2.9b, rarely draw their attention from the investing community. Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. Today we will look at ENS’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look furtherinto ENS here.
Check out our latest analysis for EnerSys
ENS has built up its total debt levels in the last twelve months, from US$598m to US$1.0b , which includes long-term debt. With this increase in debt, ENS currently has US$299m remaining in cash and short-term investments to keep the business going. Additionally, ENS has produced cash from operations of US$198m during the same period of time, leading to an operating cash to total debt ratio of 19%, meaning that ENS’s operating cash is less than its debt.
At the current liabilities level of US$613m, it seems that the business has been able to meet these obligations given the level of current assets of US$1.5b, with a current ratio of 2.51x. The current ratio is the number you get when you divide current assets by current liabilities. For Electrical companies, this ratio is within a sensible range as there's enough of a cash buffer without holding too much capital in low return investments.
With a debt-to-equity ratio of 81%, ENS can be considered as an above-average leveraged company. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings after interest and tax at least three times its net interest payments is considered financially sound. In ENS's case, the ratio of 8.86x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving ENS ample headroom to grow its debt facilities.
ENS’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. This is only a rough assessment of financial health, and I'm sure ENS has company-specific issues impacting its capital structure decisions. You should continue to research EnerSys to get a better picture of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ENS’s future growth? Take a look at ourfree research report of analyst consensusfor ENS’s outlook.
2. Valuation: What is ENS 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 ENS 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. |
Cash App is adding support for bitcoin deposits
Square’s Cash App is launching bitcoin deposits,CoinDesk writes. The app might have started rolling out the feature prior to full launch as deposits are not yet available for all Cash App users.
Cash App users can purchase and sell bitcoin; they can also make cryptocurrency transfers to other wallets. According to Cash App’swebsite, the company will enable deposits to third-party wallets “soon.”
“In the meantime, you can transfer profits from selling bitcoin to any bank account or debit card linked to your Cash App,” it reads.
Square has been putting a lot of money into bitcoin, which has generated $65.5 million in revenue in just the first quarter of 2019. CEO Jack Dorsey has voiced his support for bitcoin, saying it is the best candidate to becomea global currencyfor the internet. |
Here's How P/E Ratios Can Help Us Understand Siebert Financial Corp. (NASDAQ:SIEB)
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Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll apply a basic P/E ratio analysis to Siebert Financial Corp.'s (NASDAQ:SIEB), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months,Siebert Financial has a P/E ratio of 20.24. That corresponds to an earnings yield of approximately 4.9%.
View our latest analysis for Siebert Financial
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Siebert Financial:
P/E of 20.24 = $8.41 ÷ $0.42 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio means that buyers have to paya higher pricefor each $1 the company has earned over the last year. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
P/E ratios primarily reflect market expectations around earnings growth rates. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
Siebert Financial's 160% EPS improvement over the last year was like bamboo growth after rain; rapid and impressive.
One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. If you look at the image below, you can see Siebert Financial has a lower P/E than the average (34.9) in the capital markets industry classification.
This suggests that market participants think Siebert Financial will underperform other companies in its industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. You should delve deeper. I like to checkif company insiders have been buying or selling.
The 'Price' in P/E reflects the market capitalization of the company. That means it doesn't take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
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.
Since Siebert Financial holds net cash of US$3.8m, it can spend on growth, justifying a higher P/E ratio than otherwise.
Siebert Financial's P/E is 20.2 which is above average (17.8) in the US market. Its net cash position is the cherry on top of its superb EPS growth. So based on this analysis we'd expect Siebert Financial to have a high P/E ratio.
Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' We don't have analyst forecasts, but you could get a better understanding of its growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
But note:Siebert Financial may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio 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. |
Wayfair workers, supporters protest furniture sale to U.S. immigrant camp
By Tim McLaughlin BOSTON (Reuters) - Several hundred people, including employees of Wayfair Inc, rallied in Boston on Wednesday to protest the online retailer's sale of furniture for a Texas detention facility housing migrant children. It was the latest outpouring of anger over Republican U.S. President Donald Trump's efforts to crack down on illegal immigration. The protest drew the support of high-profile Democrats including U.S. Representative Alexandria Ocasio-Cortez and U.S. Senator Elizabeth Warren of Massachusetts, a presidential candidate. Wayfair employees walked off the job at 1:30 p.m. to protest an order for more than $200,000 of bedroom furniture destined for a facility in Carrizo Springs, Texas, that would house migrant children seeking asylum. After about an hour, many in the crowd drifted away from the rally. Employees have cited an internal document on the sale. A posting on Twitter, on @wayfairwalkout, said that 547 employees had signed a petition demanding that Wayfair halt all business with border camps. "CEO said no," the tweet said. They demanded that Wayfair stop selling to migrant detention camps and that it give profits of the sale, which they claim amount to $86,000, to a Texas-based non-profit agency offering legal services to immigrants. "There is more to life than profit," said Tom Brown, a 33-year-old engineer at Wayfair. "What is right is not cut and dry." A Wayfair spokeswoman declined to comment on the alleged sale. The company on Wednesday emailed employees to say it was making a $100,000 donation to the American Red Cross, which was confirmed by the retailer. "I can confirm the Red Cross donation that intended to assist with humanitarian relief at the border," Wayfair spokeswoman Jane Carpenter told Reuters by email. "That was not what we asked for," said Madeline Howard, 29, a Wayfair product manager. Some in the crowd carried signs with messages including "a cage is not a home" and "a prison with a bed is still a prison." Story continues Wayfair management rejected the petition's demands in an internal memo on Tuesday, according to the Boston Globe. "We also believe in the importance of respecting diversity of thought within our organization and across our customer base," the unsigned letter read, according to the newspaper. "No matter how strongly any one of us feels about an issue, it is important to keep in mind that not all employees or customers agree." Criticism has mounted this week over the detention of migrant children in overcrowded, squalid conditions. (Reporting by Tim McLaughlin; Additional reporting by Melissa Fares in New York and Richa Naidu in Chicago; editing by Scott Malone, Leslie Adler and Susan Thomas) |
Beth Chapman's Daughter Just Shared Another Touching Hospital Photo
Photo credit: Darryl Oumi - Getty Images From Women's Health Beth Chapman, wife of Duane "Dog" Chapman and bail bondswoman on the reality show Dog the Bounty Hunter , is reportedly still in a medically-induced coma, and her daughter Bonnie shared a tear-jerking Instagram post in tribute to her mom. “So thankful to call you my mother,” Bonnie simply captioned several photos of Beth. In one, Bonnie can be seen holding Beth’s hand in what appears to be a hospital bed. Others include sweet photos of Beth and Duane, Beth posing with Bonnie, and Beth lounging in a float. View this post on Instagram So thankful to call you my mother. A post shared by Bonnie Chapman (@bonniejoc) on Jun 25, 2019 at 10:10pm PDT Many people shared positive thoughts and well-wishes in the comments, but Bonnie pointed out in several Instagram Story posts that some were total jerks, attacking her for her sexuality. (Bonnie opened up back in March about being pansexual.) Um, seriously, people? “People are a-holes today,” she wrote over one mean comment, before switching gears. “This overwhelming support has helped us so much,” she wrote in another post. “Thank you all.” Beth’s other daughter Cecily simply shared a gorgeous photo of her mom on Instagram with no caption. View this post on Instagram A post shared by Cecily B Chapman (@cecilybeezee) on Jun 25, 2019 at 7:45pm PDT Duane also shared an update on Twitter, writing that “90% of what you’re hearing is fake news,” seemingly referencing some news sites that say Beth’s condition is worsening and that it’s grave. “I don’t mean to be nasty but some are filling in the blanks,” Duane wrote, before asking fans to “please keep prayers coming!” 90% of what you’re hearing is fake news. I don’t mean to be nasty but some are filling in the blanks. @wgnamerica will be releasing an accurate update soon. Please keep prayers coming! - Duane Dog Chapman (@DogBountyHunter) June 25, 2019 Beth has throat cancer, and was hospitalized on Friday after she had difficulty breathing and briefly passed out, USA Today reports. Doctors then put her in a medically-induced coma to help spare her from pain while she receives treatment, family spokesperson Mona Wood-Sword told the Associated Press. Story continues The next day, Duane asked fans over Twitter for prayers for his wife. On Sunday, he tweeted a link to a Hawaii News Now story that reported that Beth was admitted to the ICU at the Queen's Medical Center in Honolulu, Hawaii, where the couple lives. Beth was diagnosed with stage two throat cancer in September 2017 after she saw a doctor for a nagging cough. The cancer was removed but it later returned as stage four lung cancer, and she began chemotherapy in December 2018, Wood-Sword told the Associated Press. Duane hasn’t offered a lot of details on his wife’s condition, but he tweeted a photo on Monday of Beth’s arm, which is covered in hospital bracelets, and bedazzled manicure. “You all know how she is about HER NAILS !!” he wrote. ('You Might Also Like',) 14 Keto Breakfast Recipes That Make Waking Up So Much Easier 13 MS Symptoms In Women That Shouldn't Be Ignored Love Carbs? We Created This 21-Day Keto Diet Plan Just for You |
Samsung's A90 smartphone might have a top processor and 6.7-inch screen
Samsung's A series of mid-range smartphones was never as sexy as its Note or S devices, but that may change with the upcoming Samsung Galaxy A90.
According to reliable leaker@onleaks, there will be two variants of the A90, and both will have a 6.7-inch screen with an in-display fingerprint scanner and a triple rear camera. And both devices will have the current top processor from Qualcomm, the Snapdragon 855 — a first for the A series of Samsung phones.
SEE ALSO:Everything we know about Samsung's Galaxy Note 10 (so far)
One variant, named SM-A908, will have 5G support, and its rear camera will have a 48/8/5-megapixel sensor combo. The other, named SM-A905, will have a 48/12/5-megapixel camera with new "Tilt" optical image stabilization technology.Read more...
More aboutSamsung,5g,Samsung A90,Tech, andSmartphones |
Women's World Cup Gets a New Opponent: Europe's Blistering Heatwave
In France this week, as temperatures may climb above 104F (40C), the Women’s World Cup must go on, but with some adjustments.
After a brief break on Wednesday, the Women’s World Cup quarterfinals begin Thursday. Luckily, two of those matches are scheduled to happen later in the day, after the midday heat has dissipated:
• 9 p.m. CET Thursday: Norway vs. England in Le Havre.This northern coastal city is anticipated to see a high of 80F (27C) on Thursday—on the cooler end, relatively speaking.
• 9 p.m. Friday: France vs. United States in Paris.France’s capital is expected to see a high of 92F (33C) on Friday, though by the evening the temperature should drop into the 80s.
• 3 p.m. Saturday: Italy vs. Netherlands in Valenciennes.This city near the Belgian border will see high temperatures of 92F (33C) on Saturday.
• 6:30 p.m. Saturday: Germany vs. Sweden in Rennes.This city west of Paris is also expected to reach temperatures of 92F (33C) on Saturday.
Under normal circumstances, spectators are banned from bringing any bottles or drink containers into stadiums, but because of the heat,FIFA allowedattendees of Monday’s match in Paris to bring in outside water bottles.
FIFA also may implement cooling breaks for players, with three-minute pauses for water at the 30- and 75-minute marks, if temperatures reach 90F (32C) inside the stadiums. Such breaks were first allowed during the 2014 World Cup in Brazil, which also experienced scorching heat. If the weather is extreme enough, FIFA could also postpone games.
France’snational weather agency forecast temperaturesof up to 104F (40C) across the country just as the summer tourist season approaches. The heat warning level for the country is at orange, the second-highest intensity on its four-tier categorization system. Paris is openingcooling roomsin public buildings around the city where residents can hide out during the hottest hours of the day, and some swimming pools will have extended hours.
Record highs are also expected in Belgium, Switzerland, Austria, and Germany. Temperatures above 40C (104F) are possible in some areas of Germany on Wednesday, which would top the country’s previous June record of 100.8F (38.2C) set in 1947. Parts of Brandenburg in northeastern Germany, near Berlin, are also at high risk for forest fires.
Meteorologists are already comparing this heatwave to one in 2003, which had adeath toll of 70,000; 15,000 of those fatalities were in France. Early summer heatwaves tend to be more deadly than those that come in July or August, according to theWorld Meteorological Organization, because people have not yet had time to adapt to the seasonal heat.
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—Bernie Sanders wantsemployee ownership—already a trend in the U.K.
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Catch up withData Sheet,Fortune‘s daily digest on the business of tech. |
What You Should Know About SIFCO Industries, Inc.'s (NYSEMKT:SIF) Financial Strength
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SIFCO Industries, Inc. (NYSEMKT:SIF) is a small-cap stock with a market capitalization of US$17m. 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? Since SIF is loss-making right now, it’s vital to evaluate the current state of its operations and pathway to profitability. Let's work through some financial health checks you may wish to consider if you're interested in this stock. Nevertheless, this is not a comprehensive overview, so I suggest youdig deeper yourself into SIF here.
SIF's debt levels have fallen from US$28m to US$26m over the last 12 months , which includes long-term debt. With this debt payback, SIF currently has US$1.9m remaining in cash and short-term investments , ready to be used for running the business. Additionally, SIF has produced cash from operations of US$4.9m during the same period of time, resulting in an operating cash to total debt ratio of 19%, signalling that SIF’s current level of operating cash is not high enough to cover debt.
Looking at SIF’s US$43m in current liabilities, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.06x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Aerospace & Defense 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 debt reaching 58% of equity, SIF may be thought of as relatively highly levered. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. However, since SIF is currently loss-making, sustainability of its current state of operations becomes a concern. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.
Although SIF’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. Keep in mind I haven't considered other factors such as how SIF has been performing in the past. I recommend you continue to research SIFCO Industries to get a more holistic view of the small-cap by looking at:
1. Valuation: What is SIF 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 SIF is currently mispriced by the market.
2. Historical Performance: What has SIF'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. |
Dish launches a WiFi and TV service aimed at apartment dwellers
Last weekDishannounced a new service designed to makesmart home technologyavailable to all, now it's launching another service that makes modern tech accessible to everyone. "Dish Fiber" is a combined WiFi and livestreaming TV bundle for those living in multifamily communities, such as apartment blocks and student housing.
The service lets landlords offer two services -- WiFi andlivestream TV-- direct to their tenants. While the property owner manages the overall contract with Dish, each resident has access to their own personal network. This means that tenants don't have to go through the hassle of sorting out these utilities when they move in -- everything is set up and ready to go -- while landlords can tack on an extra fee to the rent for the services. Or, according to Dish's press release, "monetize their highly-valued amenities."
According to Dish, the service comes with flexible billing options. Exactly how the contract works between landlord and tenant is presumably down to thelandlord, and therefore potentially open to abuse -- could the tenant end up paying over the odds for these services if they're otherwise in the dark about how it all works? That said, sorting out WiFi and TV services are a familiar headache for those that move frequently, and this kind of deal gives them access to the utilities they want without locking them into lengthy contracts directly with a provider. |
Acasti Pharma, Inc. to Host Earnings Call
NEW YORK, NY / ACCESSWIRE / June 26, 2019 /Acasti Pharma, Inc. (NASDAQ:ACST) will be discussing their earnings results in their 2019 Fourth Quarter Earnings to be held on June, 26 2019 at 1:00 PM Eastern Time.
To listen to the event live or access a replay of the call - visithttps://www.investornetwork.com/company/C-D6ABA5233F508
To receive updates for this company you can register by emailinginfo@investornetwork.comor by clicking get investment info from the company's profile.
About Investor Network
Investor Network (IN) is a financial content community, serving millions of unique investors market information, earnings, commentary and news on the what's trending. Dedicated to both the professional and the average traders, IN offers timely, trusted and relevant financial information for virtually every investor. IN is an Issuer Direct brand, to learn more or for the latest financial news and market information, visitwww.investornetwork.com. Follow us on Twitter@investornetwork.
SOURCE:Investor Network
View source version on accesswire.com:https://www.accesswire.com/549814/Acasti-Pharma-Inc-to-Host-Earnings-Call |
AbbVie to Buy Allergan: Prescribed ETFs
The healthcare space is on an acquisition spree. The latest in the list is the biopharmaceutical company AbbVie Inc. ABBV, which has agreed to buy Botox-maker Allergan AGN for $63 billion in a cash-and-stock deal. This represents the second-largest deal in the pharmaceutical space this year, after Bristol-Myers Squibb’s BMY $74 billion proposed acquisition of Celgene CELG (read: Bristol-Myers to Acquire Celgene: Healthcare ETFs in Focus).Abbvie-Allergan Deal in FocusUnder the terms of the deal, Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each share held, for a total consideration of $188.24 per Allergan share. This represents a 45% premium to Allergan's closing price of Jun 24. The deal will own approximately 83% of AbbVie on a fully diluted basis and Allergan shareholders will own approximately 17% of AbbVie on a fully diluted basis.The deal, which is expected to close in early 2020, will add fast-growing therapeutic businesses such as medical aesthetics and eye care to the AbbVie portfolio. The combined company will consist of several attractive franchises with leadership positions across immunology, hematologic oncology, medical aesthetics, neuroscience, women's health, eye care and virology (see: all the Healthcare ETFs here).
The transaction is expected to be 10% accretive to adjusted earnings per share in the first full year following the close of the transaction, with peak accretion of greater than 20%. It will also provide annual pre-tax synergies and other cost reductions of at least $2 billion in year three. AbbVie is expected to generate significant annual operating cash flow, which will support a debt-reduction target of $15 billion to $18 billion before the end of 2021.Market ImpactFollowing the megamerger announcement, shares of Allergan surged the most in 26 years. It jumped about 25.4% to close the day, crushing its average volume, as nearly 33 million shares moved hands compared with 2.6 million on average. Meanwhile, shares of ABBV dropped 16.2%.The news has put the spotlight on a number of healthcare ETFs, especially biotech and pharma, which could be the best ways for investors to tap the opportunity arising from the ABBV-AGN deal. Investors should keep a close eye on the movement of these ETFs over the coming weeks.SPDR S&P Pharmaceuticals ETF XPHThis fund provides exposure to pharma companies by tracking the S&P Pharmaceuticals Select Industry Index. It holds 41 securities in its basket and Allergan occupies the top position with 4.9% share. With AUM of $204.1 million, the product trades in good volume of around 61,000 shares a day and charges 35 bps in fees a year. It has gained 2.4% following the deal and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.VanEck Vectors Biotech ETF BBHThis fund offers exposure to 25 large biotechnology corporations by tracking the MVIS US Listed Biotech 25 Index. Here, Allergan is the eight firm accounting for 4.8% share. BBH has amassed $370.6 million in its asset base and charges 35 basis points in fees per year. It gained 0.8% on the day and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Why These Innovative Biotech ETFs Soaring).iShares U.S. Pharmaceuticals ETF IHEThis ETF provides exposure to 43 U.S. companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Allergan takes the third spot at 4.7% share. The product has $340.4 million in AUM and charges 43 bps in fees and expense. Volume is light as it exchanges about 11,000 shares a day. The fund gained 1.9% on the day and has a Zacks ETF Rank #3 with a High risk outlook.VanEck Vectors Pharmaceutical ETF PPHThis ETF follows the MVIS US Listed Pharmaceutical 25 Index and holds 25 stocks in its basket. Abbvie takes the eighteenth position with 4.13% share. The product has amassed $176.8 million in its asset base and trades in moderate volume of about 43,000 shares a day. Expense ratio comes in at 0.36%. The fund added 0.05% on the day and has a Zacks ETF Rank #3 with a High risk outlook (read: Pharma ETFs Down Despite Solid Q1 Results).Invesco Dynamic Pharmaceuticals ETF PJPThis is by far the most-popular choice in the pharma space that follows the Dynamic Pharmaceuticals Intellidex Index. Holding 30 stocks in its basket, AbbVie occupies the seventh position at 4.94% allocation, while Allergan takes the twelfth spot with 2.82% share. The product has AUM of about $387 million and sees a lower volume of around 35,000 shares a day. It charges 57 bps in fees and expenses and added 0.05% on the deal news. The fund has a Zacks ETF Rank #3 with a High risk outlook.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 reportBristol-Myers Squibb Company (BMY) : Free Stock Analysis ReportAllergan plc (AGN) : Free Stock Analysis ReportAbbVie Inc. (ABBV) : Free Stock Analysis ReportVanEck Vectors Biotech ETF (BBH): ETF Research ReportsVanEck Vectors Pharmaceutical ETF (PPH): ETF Research ReportsSPDR S&P Pharmaceuticals ETF (XPH): ETF Research ReportsiShares U.S. Pharmaceuticals ETF (IHE): ETF Research ReportsInvesco Dynamic Pharmaceuticals ETF (PJP): ETF Research ReportsCelgene Corporation (CELG) : Free Stock Analysis ReportTo 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 |
New Raspberry Pi capable of running a Bitcoin node is selling for just $35
The Raspberry Pi Foundation has released a new, more powerful model of its single-board computer. The new device will cost $35 a unit and has the capacity to run full nodes cheaply on the Bitcoin network. Earlier versions of the Raspberry Pi have been popular with Bitcoin enthusiasts and decentralisation advocates as it provides a low barrier to entry for those interested in running their own full nodes on the network. Raspberry Pi 4 is here! A tiny, dual-display desktop computer, with three RAM variants to choose from, and all the hackability you know and love. On sale now from the familiar price of $35: https://t.co/d9iwVidexm #RaspberryPi4 pic.twitter.com/4fll4gx1Ax — Raspberry Pi (@Raspberry_Pi) June 24, 2019 Using the device to run a Bitcoin node allows users to verify their own transactions over the Bitcoin network independently without having to trust third-party wallets or custodial service providers. Unlike miners, who are rewarded with BTC for validating transactions, full nodes do not get compensation for their contribution to the network in the form of hosting and transmitting updated copies of the blockchain (or distributed transaction ledger). Monero is reducing the cost of running a full node By Jordan Heal – June 26, 2019 More than 10,000 reachable and public nodes At the time of writing, of the 10,516 reachable Bitcoin nodes on the network, we can see that almost 40% are geographically located in either the United States or Germany. The new Raspberry Pi model (4th version) represents a significant upgrade on earlier versions. Its most expensive option – with 4GB of RAM – will cost just $55 (excluding tax). It also comes with a new operating system, which the Foundation claims comes with a host of back-end technical improvements, a modernised interface, plus support for updated applications such as the Chromium 74 web browser. In the years since Pi’s initial release in 2012, other hardware options have emerged for use as a Bitcoin full node as well. These include HTC’s Exodus 1S smartphone, which has Bitcoin full node capability and was released this May . For more news, guides, and cryptocurrency analysis, click here . The post New Raspberry Pi capable of running a Bitcoin node is selling for just $35 appeared first on Coin Rivet . View comments |
Sify Technologies Limited (NASDAQ:SIFY): Time For A Financial Health Check
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Investors are always looking for growth in small-cap stocks like Sify Technologies Limited (NASDAQ:SIFY), with a market cap of US$205m. However, an important fact which most ignore is: how financially healthy is the business? Assessing first and foremost the financial health is essential, 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 SIFY here.
Over the past year, SIFY has ramped up its debt from ₹5.8b to ₹8.3b , which includes long-term debt. With this increase in debt, SIFY's cash and short-term investments stands at ₹1.9b , ready to be used for running the business. On top of this, SIFY has generated ₹1.4b in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 17%, signalling that SIFY’s debt is not covered by operating cash.
At the current liabilities level of ₹14b, the company has been able to meet these obligations given the level of current assets of ₹17b, with a current ratio of 1.19x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Telecom 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.
SIFY is a relatively highly levered company with a debt-to-equity of 77%. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. We can check to see whether SIFY is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In SIFY's, case, the ratio of 2.99x suggests that interest is not strongly covered, which means that lenders may be more reluctant to lend out more funding as SIFY’s low interest coverage already puts the company at higher risk of default.
SIFY’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. This is only a rough assessment of financial health, and I'm sure SIFY has company-specific issues impacting its capital structure decisions. I recommend you continue to research Sify Technologies to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SIFY’s future growth? Take a look at ourfree research report of analyst consensusfor SIFY’s outlook.
2. Historical Performance: What has SIFY'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. |
Medical school forced Wickenheiser to miss her Hall of Fame call
Hayley Wickenheiser headlined the 2019 class of inductees. (Getty) You’ll have to excuse Hayley Wickenheiser for being unavailable on Tuesday. She was a little busy. The Canadian hockey legend was elected to the Hockey Hall of Fame — the first woman ever to make it in her first year of eligibility — but when she got the call informing her of her induction, Wickenheiser was stuck doing what most retired sporting icons do in their free time: writing a medical school exam, of course. Hayley Wickenheiser was unable to be reached to be notified for her Call to the Hall. First inductee in a number of years. Lanny McDonald said Wickenheiser, a medical school student, is currently sitting for an exam today and would receive a failing grade if she used her phone. — Frank Seravalli (@frank_seravalli) June 25, 2019 Just stepped out of a med school course to the news. A huge honour and dream come true for a little girl from Shaunavon, Sask.. Congrats to Guy,Sergei,Vaclav,Jim and Jerry. Thank you for all the kind words. #HHOF2019 pic.twitter.com/HioA3rt26R — Hayley Wickenheiser (@wick_22) June 25, 2019 Imagine being in such a predicament that you literally couldn’t answer the phone when Lanny McDonald and John Davidson called to congratulate you on receiving the highest honour possible for a hockey player, because you would fail an exam and put your future as a doctor in jeopardy. Safe to say the GOAT is doing just fine. More hockey coverage from Yahoo Sports |
General Mills (GIS) Q4 Earnings Beat Estimates, Sales Up Y/Y
General Mills, Inc.GIS released fourth-quarter fiscal 2019 results, recording its fifth straight earnings beat while the top line missed estimates. The top and the bottom lines improved on a year-on-year basis. The quarterly results gained from the acquisition of Blue Buffalo.Nevertheless, sluggishness across segments such as the North America Retail and the Europe & Australia hampered results. Also, margins were weak due to higher input costs and other expenses. These downturns have marred investors’ sentiments as the stock declined nearly 5% during the pre-market trading session on Jun 26.Highlights of the ReleaseThe company’s adjusted earnings per share of 83 cents increased 6% year over year on a constant-currency (cc) basis. The bottom line beat the Zacks Consensus Estimate of 76 cents. The year-over-year increase was fueled by reduced adjusted effective tax rate and higher adjusted operating profit. These were somewhat offset by escalated interest costs and average shares outstanding.Net sales of $4,161.7 million improved 7% year over year, mainly backed by gains from Blue Buffalo. At cc, the top line rose 9% from the prior-year quarter’s figure. However, the top line missed the Zacks Consensus Estimate of $4,227 million.
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills, Inc. price-consensus-eps-surprise-chart | General Mills, Inc. Quote
Organic sales inched down 1% due to lower contributions from organic volume. Moreover, organic net sales declined in the North America Retail and the Europe & Australia segmentsAdjusted gross profit amounted to $1,470.5 million, up nearly 5%. However, adjusted gross margin declined 50 basis points (bps) to 35.3% due to higher input costs.Adjusted operating profit of $722 million depicted 5% year-over-year growth at cc, driven by the inclusion of Blue Buffalo and partially countered by decline in adjusted gross margin. Adjusted operating margin fell 50 bps to 17.3%.Segmental PerformanceNorth America Retail:Revenues in the segment came in at $2,341.7 million, down 1.9% year over year. The segment continued to witness challenges in U.S. Snacks and Canada. Organic net sales declined 2%Convenience Stores & Foodservice:Revenues edged up 1.6% year over year to $519 million. Growth in Focus 6 platforms drove performance of the unit. The upside was partly countered by sluggishness in bakery flour. Organically, sales rose 2% from the year-ago quarter’s levels.Europe & Australia:The segment’s revenues declined 10.2% to $499.5 million due to unfavorable year-on-year comparison. Further, sales declined 3% year over year on an organic basis. Lower sales stemmed from a tough operating environment in France and weak trends in ice cream. However, the decline was somewhat offset by double-digit growth in snack bars.Asia & Latin America:Revenues declined almost 9.1% from the year-ago quarter’s levels to $395.9 million due to unfavorable currency movements, headwinds from the sale of La Saltena in Argentina and the divestiture of yoghurt business in China. Nevertheless, sales rose 1% on an organic basis.
Pet Segment:Revenues came in at $405.6 million. Sales in the segment rose 38% year over year on a pro-forma basis, thanks to growth in Food, Drug and Mass (FDM) channels as well as the parity in shipping days from the month of acquisition.Other Financial AspectsThe company ended the quarter with cash and cash equivalents of $450 million, a long-term debt of $11,624.8 million and total shareholder equity of $7,054.5 million.
General Mills generated $2,807 million as net cash from operating activities in fiscal 2019. During this period, the company made capital investments worth $538 million.General Mills paid dividends of roughly $1,181.7 million in fiscal 2019.Other DevelopmentsConstant-currency sales from joint ventures of Cereal Partners Worldwide inched up 1% in the fourth quarter, while the same fell 13% from the prior-year quarter’s tally at Haagen-Dazs Japan.Fiscal 2020 GuidanceManagement is on track with innovations and, brand and capability building initiatives. These are likely to enhance the company’s revenue opportunities. Further, the company strives to enhance efficiencies to boost margins and maintain a stringent focus on cash for reducing leverage. Apart from these, the company is progressing well with plans such as the Consumer First strategy and the Compete, Accelerate and Reshape framework.That said, General Mills provided guidance for fiscal 2020. Management expects organic sales to improve 1-2%. Moreover, net sales are expected to rise 1 to 2 percentage points on the back of gains from divestitures, favorable currency translations and contributions from the 53rd week in the fiscal.Adjusted operating profit (on cc basis) is expected to improve 2-4% from $2.86 billion delivered in fiscal 2019. Also, the company envisions adjusted earnings per share (on cc basis) growth in the range of 3-5% year on year. Currency translation impacts are expected to remain irrelevant on adjusted operating profit and the bottom line.Additionally, the company estimates free cash flow conversion of minimum 95% of adjusted after-tax earnings.
Price PerformanceThis Zacks Rank #2 (Buy) company’s shares have advanced 4.7% in the past three months compared with the industry’s 2.5% rise.Looking For More Consumer Staples Stocks? Check TheseCampbell Soup Company CPB, with long-term earnings growth rate of 5%, carries a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Chefs' Warehouse CHEF, with a Zacks Rank #2, has long-term earnings growth rate of 15%.The J. M. Smucker Company SJM, with an expected long-term earnings growth rate of 4%, also carries a Zacks Rank #2.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 reportThe J. M. Smucker Company (SJM) : Free Stock Analysis ReportCampbell Soup Company (CPB) : Free Stock Analysis ReportGeneral Mills, Inc. (GIS) : Free Stock Analysis ReportThe Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
The Other Side of the Economic Story
This article was originally published onETFTrends.com.
What the Nobel Laureate is not telling us
By J. Richard Fredericks,Main Management
Author’s Note : Readers should be aware that, while we participated in the last Presidential election, we did not cast a vote for either major party candidate. We believe in the two-party system since liberals and conservatives need each other, as the right course of action can generally be found between the back and forth of their two positions. That said, to totally sign on with one or the other party gives away too much independence of thought in our opinion. As an independent, one need not to have to blindly support either the party view or all of their representatives. Only as an independent person, can one exercise contempt evenly and view success or failure dispassionately. But as an American, it is important in one’s critique of any President to give him/her a chance; to observe them closely; applaud what is sound; criticize what isn’t; and wish them well. With respect to our current President, our view is that, while he daily violates the norms of civility, decorum, and deportment, his policies haven’t been ideologically extreme, but temperamentally extreme . Based on the data below, it would be difficult for an observer not to conclude that President Trump has generated some notable economic success.
In the June 17 th edition of the New York Times, Nobel Laureate, Professor Paul Krugman, in his editorial column entitled “Why Isn’t Trump a Real Populist?”, wrote several things …
… “why has Trump been unwilling to do anything, and I mean anything, to help the people who installed him in the White House?”
… “In 2016, on the campaign trail, Trump sounded as if he might be a European-style populist, blending racism with support for social programs that benefit white people. He even promised to raise taxes on the rich, himself included.”
… “Since taking office, however, he has relentlessly favored the wealthy over members of the working class, whatever their skin color. His only major legislative success was a huge break for corporations and business owners; the handful of crumbs thrown at ordinary families was so small that most people believe they got nothing at all.”
Reflecting the above, we believe there is an extensive amount of data that Professor Krugman has either not seen, or perhaps has chosen to ignore, but needs to be recognized and acknowledged. We feel the following is relevant to whether the Krugman quotes above have merit.
There has been a dramatic pickup in GDP so far under the Trump policies as can be seen in the table below sourced by the St. Louis Federal Reserve. Many felt that a Trump Presidency would definitely not be characterized by any acceleration in GDP due the belief that 2% or less growth was the “new normal” … or worse, that we would move directly into a recession. President Obama famously said that “President Trump would need a magic wand to get to 4% GDP”. Notably, that level was achieved in the 2 nd quarter of 2018 when GDP registered a growth rate of 4.16%. While that level of growth has not been sustained, the annualized quarterly growth rate for 2018 was impressive at 2.98% and for the past four quarters, the average has been even better at 3.19%. There is a major difference between a 2% GDP and a 3% GDP. Some, when queried, would say the difference is “1%” when, mathematically, it is really a 50% step-up. So, the GDP attained so far in the Trump administration far exceeds the GDP achievements of both President Obama and President Bush.
We would remind readers that one of the longest stretches of time without a year registering 3% growth in GDP was the four-year time frame from 1929 to 1933 that encompassed the Depression years. There was one other three-year period, from 1945 to 1947, when GDP failed to reach the 3% growth threshold. Regrettably, however, the Obama Presidency failed to achieve GDP growth in excess of 3% inanyof his 8 years in office . Some would correctly note that President Obama inherited a difficult economy, but the economic recovery took hold just 9 months into his Presidency, leaving 39 months to enjoy a strong rebound from those depressed levels. That didn’t happen.
Clickhere to read the entire articleon Main Management's website.
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Facebook crypto plans turn up heat on EU banks over real-time payments
By Francesco Guarascio BRUSSELS (Reuters) - The euro zone could have an instant payments system shared by all banks in the bloc by the end of 2020, finance industry officials said, as lenders face more competition from the likes of Facebook and other tech firms. Real-time payments have been possible in the 19-country currency bloc since 2017, but only about half of the euro zone's banks have joined the scheme that underpins these transactions and it is mostly used for domestic payments. The project could now accelerate as banks feel the heat of new competitors like Facebook, which last week unveiled plans for a cryptocurrency that would offer seamless payments to its users worldwide. "The clock is ticking," said Etienne Goosse, director general of the European Payments Council (EPC), that brings together large European banks, including Spain's Santander, Deutsche Bank and France's Societe Generale. Goosse said that regardless of Facebook's success with its move into payments, big technology firms were here to stay and banks needed to move more quickly. He said the big tech firms had the advantage of being global unlike the fragmented European banking industry. "They come with a global solution, under a global brand offering many things that the consumers seem to find wonderful," Goosse said when asked about the impact of Facebook's plans for crypto currency Libra. "So we have no time." The EPC standard for instant payments has so far been adopted by some 60% of lenders and payment services providers in the euro zone, Goosse said, adding that it could be spread to all banks in the bloc by the end of 2020. Without full coverage, some bank customers could experience transaction failures if transfers involve banks outside the system, which would reduce trust in the new service, another EPC official said. Instant payments allow transactions between individuals and businesses to complete in a matter of seconds. Traditional transfers take at least one day before the payment is credited. Story continues CLEARING HURDLE Other industry officials confirmed that 2020 was a credible target. But for the system to work across borders existing clearing and settlement mechanisms should cover the whole euro zone. These mechanisms make sure money is correctly transferred between parties. Several private clearing houses use the EPC standard for instant payments like EBA Clearing, which brings together Europe's largest banks, or national counterparties like Spain's Iberpay or Italy's Nexi. The European Central Bank in November launched its own settlement system for real-time transactions, known as TIPS, which stands for Target Instant Payment Settlement. But each of these different systems cover only a few dozen banks, making instant payments often impossible among lenders that are not members of the same clearing houses. "The challenge now is to make these mechanisms interoperable," said Piet Mallekoote, the CEO of the Dutch Payment Association. The Netherlands has already made instant payments available to all bank customers in the country via a project backed by seven major domestic banks, including ING and ABN AMRO. But even if a payments system is rolled out across the euro zone this may not be enough to attract customers away from fintech providers with easy to use apps. Facebook can already tap into its established social media and chat services, but banks would need to agree on applications like mobile payments or use customers' existing payment cards to convince them to use banks' instant payment services. (Reporting by Francesco Guarascio. Editing by Jane Merriman) |
UK PM May to meet Putin to say Britain open to a different relationship - spokesman
LONDON, June 26 (Reuters) - Prime Minister Theresa May will meet President Vladimir Putin on Friday to deliver a message that Britain is open to a different relationship with Russia if it stops activities that undermine international security, her spokesman said.
The meeting at this week's G20 summit in Japan does not represent a normalisation of relations, the spokesman told reporters.
"The prime minister's position on Salisbury and Russia's wider pattern of malign behaviour is well-known. As she has said, we remain open to a different relationship but that can only happen if Russia desists from activity that undermines international treaties and our collective security," the spokesman said.
"This meeting is an important opportunity to deliver this message leader-to-leader to ensure the UK's position is fully understood ... This meeting does not represent a normalisation of relations."
Britain's relations with Russia fell to a post-Cold War low after the poisoning of a former double agent and his daughter with a nerve agent in Salisbury, southern England last year. Britain blamed Russia, which denied any involvement. (Reporting By Elizabeth Piper. Writing by Andrew MacAskill; editing by Stephen Addison) |
Airtel Africa to price London listing at bottom of range: bookrunner
(Reuters) - Airtel Africa Ltd's planned initial public offering on the London Stock Exchange is expected to price at 80 pence, the bottom end of its indicated price range, one of the bookrunners handling the sale said.
Airtel Africa, a unit of India's Bharti Airtel Ltd, last week set a price range of 80 to 100 pence per share for its IPO, which is expected to raise 595 million pounds from the issuance of 595.2 million to 744 million new shares.
The bookrunner, which said on Monday it had received indications of interest worth about $200 million from pre-IPO investors, said it had further investor orders of $100 million.
(Reporting by Justin George Varghese in Bengaluru; editing by David Evans) |
What You Should Know About Sify Technologies Limited's (NASDAQ:SIFY) Financial Strength
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Sify Technologies Limited (NASDAQ:SIFY) is a small-cap stock with a market capitalization of US$205m. 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? Evaluating financial health as part of your investment thesis is crucial, 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 just a partial view of the stock, and I recommend youdig deeper yourself into SIFY here.
Over the past year, SIFY has ramped up its debt from ₹5.8b to ₹8.3b , which accounts for long term debt. With this rise in debt, SIFY's cash and short-term investments stands at ₹1.9b , ready to be used for running the business. On top of this, SIFY has generated ₹1.4b in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 17%, indicating that SIFY’s operating cash is less than its debt.
At the current liabilities level of ₹14b, it appears that the company has been able to meet these obligations given the level of current assets of ₹17b, with a current ratio of 1.19x. The current ratio is calculated by dividing current assets by current liabilities. Usually, for Telecom companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
SIFY is a relatively highly levered company with a debt-to-equity of 77%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. We can test if SIFY’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For SIFY, the ratio of 2.99x suggests that interest is not strongly covered, which means that lenders may refuse to lend the company more money, as it is seen as too risky in terms of default.
Although SIFY’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 SIFY's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for SIFY's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Sify Technologies to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SIFY’s future growth? Take a look at ourfree research report of analyst consensusfor SIFY’s outlook.
2. Historical Performance: What has SIFY'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. |
Trump's sanctions cut more OPEC oil output than OPEC itself
By Alex Lawler
LONDON (Reuters) - Oil output in Iran and Venezuela, under U.S. sanctions, has fallen by more than that of other OPEC members party to a supply cut pact, suggesting President Trump's policies have had a greater impact on oil production than OPEC itself.
The sanctions have deepened the impact of supply cuts agreed by the Organization of the Petroleum Exporting Countries, which is expected at meetings with its allies next Monday and Tuesday in Vienna to renew the accord.
OPEC, Russia and other non-members, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million barrels per day from Jan. 1. OPEC's share of the cut is 800,000 bpd, to be delivered by 11 members - all except Iran, Libya and Venezuela.
The actual cut is more than 2.5 million bpd, according to OPEC figures, because top exporter Saudi Arabia has voluntary reduced supply by more than the deal requires and because of U.S. sanctions on two OPEC founder members Venezuela and Iran.
Graphic: OPEC's oil supply cut since October 2018 https://tmsnrt.rs/2ZMzkWO
Trump has been asking OPEC to pump more to drive down prices which hit a 2019 high above $75 a barrel in April but have since fallen back to about $66. Some in the group have argued he is to blame for higher fuel costs.
"You cannot place sanctions on two OPEC founder members and still blame OPEC," a senior Iranian OPEC official, Hossein Kazempour Ardebili, said last year.
Measured against October 2018 production used as a baseline by most OPEC members in the supply accord, supply from the three exempt nations had declined by 1.37 million bpd by May.
Graphic: Oil output in OPEC's exempt nations https://tmsnrt.rs/2Fx7Lcc
That exceeds the 1.16 million bpd drop posted by the 11 countries involved in the supply cut deal in the same time.
Output in Venezuela, once a top three OPEC producer, has been falling for years due to economic collapse. This year, the drop has steepened due to U.S. sanctions on state oil company PDVSA designed to oust President Nicolas Maduro.
The United States reimposed sanctions on Iran in November 2018 after pulling out of a nuclear accord between Tehran and six world powers. Aiming to cut Iran's sales to zero, Washington in May ended sanctions waivers to importers of Iranian oil.
Iran's crude exports have dropped to about 300,000 bpd in the first three weeks of June, according to industry sources who track the flows and data from Refinitiv Eikon, from above 2.5 million bpd in April 2018 before Trump quit the nuclear deal.
OPEC and its allies meet on Monday and Tuesday in Vienna to decide whether to extend the supply cuts.
Scenarios for the OPEC meeting include:
Rollover: the base case. OPEC agrees to keep the same level of supply cuts in the second half of 2019. Saudi Arabia said on June 7 OPEC was close to agreeing this.
"An extension of the production cut agreement by another six months appears a done deal," said Carsten Fritsch, analyst at Commerzbank.
Increase: Less likely than a rollover. OPEC decides to partially or fully unwind the supply cut.
Deeper cut: Unlikely but cannot be ruled out. Algeria has floated the idea.
No deal: Also unlikely but cannot be ruled out. OPEC in December 2015 failed to agree a production target after Iran said it would not consider production curbs until it restored output scaled back under earlier sanctions.
(Editing by Alexandra Hudson) |
Chris Gayle suggests he may go back on World Cup retirement plan: 'Maybe a Test against India, who knows?'
Chris Gayle had initially said he would retire after the World Cup in England - Action Images via Reuters West Indies batsman Chris Gayle has apparently backtracked on plans to retire from one-day cricket after the World Cup, as well as declaring himself open to a first Test appearance in five years. Earlier this year the 39-year-old declared he would end his 50-over career after the tournament but, speaking ahead of Thursday's clash against India, the self-proclaimed 'Universe Boss' penned a new script. In the same breath as ruling himself out of August's Twenty20 double-header against India in Florida, he seemed to set his sights on the subsequent ODI series and - most improbably - a 104th Test cap. Asked what lay ahead, he said: "Maybe a Test match against India and then I'll play, definitely play the ODIs against India. I won't play the T20s. That's my plan after World Cup. "I still have a few games to go, maybe another series to go, who knows? We'll see what happens." Whether the national selectors see things the same way as Gayle is not known, and there is every chance the man himself is making it up as he goes along. While he retains the customary hitting power that has brought more than 19,000 international runs his mobility around the park has been a concern for some time. The idea of him performing throughout a five-day match for the first time since September 2014 seems fanciful, but with the second Test taking place on his home island of Jamaica he perhaps views that as a fitting farewell for his two-decade international career. His appearance in front of the gathered media at Old Trafford was less about the intricacies of the fixture ahead and more of a reflection on the life and times of one of the sport's most colourful characters. "In these next three games, I'd love to get a hundred," he said. "But if it doesn't happen, I can't actually complain or be too hard on myself. I've actually achieved a lot. "I'm definitely up there with the greats without a doubt. I enjoy each and every moment playing for West Indies. Story continues "It's been a lot of ups and downs. But I could not have had a better career as a player representing the West Indies." Gayle was invited to nominate a successor to act as a "mini Universe Boss" in the future and though he was reticent to share the mantle, he had fond words for some of his team-mates. "Mini Universe Boss? That's a serious name. But definitely the future is bright for West Indies cricket, without a doubt," he said. "Nicholas Pooran is going to be a savage youngster, trust me on that one. (Shimron) Hetmyer: his name has been calling in all forms of the game so far. "Carlos (Brathwaite) actually came of age and produced such a good innings, got his first ODI 100 (against New Zealand) as well, so that's fantastic. "Trust me, it will be much, much better for them within their career going forward." |
7 Midyear Moves Retirees Can Make to Trim 2019 Tax Tabs
Getty Images As July Fourth nears, there are fireworks to enjoy and cookouts to attend. But in the midst of all the celebrating, assess where you stand with Uncle Sam halfway through the tax year. "It's a good time to do a status check," says Tim Steffen, director of advanced planning for Baird. Consider maneuvers that can shave your tax tab for 2019 as well as over the longer term. Look to 2018 for guidance. "Review the outcome of that return," says certified public accountant Robert Westley, a member of the American Institute of CPAs' Personal Financial Specialist Committee. This year's tax rules are similar to last year's; you'll need to factor in thresholds and limits that are adjusted annually, which should help keep more of your money in your pocket in 2019. Since many tax-reform changes remain in effect through 2025, any longer-term moves could be considered within the same framework. SEE ALSO: Best States to Retire 2018: All 50 States Ranked for Retirement Review Savings Getty Images Are you on track to max out your retirement savings for the year? If your 50th birthday falls anytime in 2019, you now qualify for catch-up contributions. This year, those 50 and older can stash up to $7,000 in an IRA and up to $25,000 in a 401(k) . You can contribute to an IRA for 2019 through the tax-filing deadline in 2020, but you must max out your 401(k) by the end of the year. Also, consider boosting the amounts you put into other pretax savings, such as a flexible spending account or health savings account. SEE ALSO: 37 States That Don't Tax Social Security Benefits Consider a QCD Getty Images If you are 70½ or older, you can do a qualified charitable distribution of up to $100,000 a year from your IRA directly to charity. The distribution won't show up in your adjusted gross income and can count toward your required minimum distribution. The QCD move lets retirees be strategic with their RMDs, says David Levi, senior managing director at CBIZ MHM. Story continues To have the QCD do double duty as your IRA RMD, be sure to do the QCD before you satisfy your RMD. (The first dollars that come out of an IRA each year are considered RMD money.) So if your RMD is $20,000 and you want to do a QCD of $10,000, you could ask your IRA custodian to send $10,000 to charity and put $10,000 into your bank account. Your $20,000 RMD will be satisfied, while only $10,000 of income will be added to your AGI for 2019. If you do your $20,000 RMD first, you could still do the $10,000 QCD--but you would be taxed on $20,000, and $30,000 would be withdrawn from your IRA. SEE ALSO: 14 Tax Breaks You Won't Believe Are Real Bunch Deductions Getty Images Assess whether your itemized deductions might surpass the standard deduction amount, which is $12,200 for single filers and $24,400 for married couples filing jointly. The extra standard deduction for those age 65 and older is $1,300 per person for joint filers and $1,650 for single filers. If you are in range of itemizing, consider a "bunching" strategy--shifting some of next year's deductible expenses into the current tax year. Charitable giving is a prime area to use this strategy, because "you have the highest degree of control over that deduction, both in time and amount," says Westley. For instance, you might pull some 2020 donations into 2019, or set up a donor-advised fund, says Steffen. You get an immediate tax deduction for a donor-advised fund contribution but later direct the money to specific charities. As you tote up your itemized deductions, check whether your medical expenses may fall into the deductible zone. Unreimbursed medical costs exceeding 10% of AGI are deductible if you itemize for 2019. SEE ALSO: Claim These Tax Deductions Even If You Don't Itemize Harvest Losses and Gains Getty Images Market volatility may have thrown your portfolio's allocation out of whack. As you rebalance, consider harvesting investment losses--and perhaps gains, too. Investment losses can be written off dollar for dollar against capital gains, and up to $3,000 can offset ordinary income. Mind the wash-sale rules: If you buy back the same security within 30 days, you'll disqualify the write-off. Some taxpayers may want to consider harvesting gains. Single filers with taxable income of up to $39,375 and married couples filing jointly with taxable income of up to $78,750 can snare the 0% rate for their capital gains. "There's no wash-gain rule," says Westley, so you can sell a security at a gain and "buy it right back." The higher price will then be your new basis. SEE ALSO: 9 States With No Income Tax Gift to Grandkids Getty Images With fall tuition just around the corner, consider gifting money to help cover the costs of school for grandkids. Levi notes that you could pay tuition directly and avoid gift-tax issues. Or you could give up to $15,000 per individual to make use of your annual gift-tax exclusion amount. If you give money to a 529 college-savings account for your grandchild, you may score a state income tax deduction. You can contribute up to five years' worth of gifts at once to a 529, for a maximum per recipient of $75,000 if you're a single filer and $150,000 if married filing jointly in 2019. SEE ALSO: 5 Money Lessons Grandparents Can Teach Grandkids Set a Conversion Strategy Getty Images Consider whether to convert some traditional IRA money to a Roth IRA before year-end. Because taxpayers can no longer undo Roth conversions, take a tactical approach. You could convert small amounts now and later in the year, or wait to execute the conversion toward year-end. If the market swings south, consider pulling the trigger on a conversion at that point--a lower account value results in a smaller conversion tax bill. Conversions are taxed at your ordinary income tax rate. SEE ALSO: How 11 Types of Retirement Income Get Taxed Check Tax Payments Compare your expected tax tab with how much tax you have paid already this year through withholding or estimated tax payments. If you're not on track to avoid underpayment penalties for 2019, adjust your withholding or estimated tax payments . Pay 100% of your 2018 tax tab (or 110% for higher-income taxpayers) or 90% of your 2019 tax tab by year-end, and you'll avoid underpayment penalties. While the IRS was lenient on underpayment penalties for 2018, Steffen says, "they won't be this year." SEE ALSO: Taxes in Retirement: How All 50 States Tax Retirees EDITOR'S PICKS 11 Reasons You Don\'t Want to Retire in Florida Easy-to-Use Tax Withholding Calculator 50 Great Places for Early Retirement in the U.S. Copyright 2019 The Kiplinger Washington Editors |
How Much Of Stella-Jones Inc. (TSE:SJ) Do Institutions Own?
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The big shareholder groups in Stella-Jones Inc. (TSE:SJ) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.
Stella-Jones isn't enormous, but it's not particularly small either. It has a market capitalization of CA$3.2b, which means it would generally expect to see some institutions on the share registry. In the chart below below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about SJ.
View our latest analysis for Stella-Jones
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Stella-Jones already has institutions on the share registry. Indeed, they own 52% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Stella-Jones's earnings history, below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Stella-Jones. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our data suggests that insiders own under 1% of Stella-Jones Inc. in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around CA$9.3m worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You canclick here to see if insiders have been buying or selling.
The general public holds a 48% stake in SJ. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
It's always worth thinking about the different groups who own shares in a company. But to understand Stella-Jones better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
FOREX-Dollar gains as traders pare bets on a bold U.S. rate cut
* Uncertainty lingers over U.S.-China trade deal before G20 summit * New Zealand dollar jumps after RBNZ leaves rates unchanged * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates market action, changes dateline, previous LONDON) By Richard Leong NEW YORK, June 26 (Reuters) - The dollar rose on Wednesday as traders scaled back expectations of an aggressive interest rate decrease next month after comments from Federal Reserve officials that such a move may not be warranted at this time. The greenback and the euro strengthened against the yen after U.S. Treasury Secretary Steven Mnuchin was quoted by CNBC as saying the trade deal between the United States and China is "about 90%" complete. Mnuchin’s comments were later restated to show he was using the past tense to describe progress in the U.S.-China talks. The pullback in the yen and Swiss franc was limited as traders remain jittery over prospects at the G20 summit this weekend in Osaka, Japan, where U.S. President Donald Trump and Chinese President Xi Jinping are due to have a meeting. Some bids for both perceived safe-haven currencies persisted amid tensions between Iran and the United States. Traders have been speculating whether Trump and Xi could at least reach an agreement to restart talks at the summit in a bid to avert more tariffs between the two nations. "The base-case is that the tariffs could be delayed," said Ilya Gofshteyn, senior EM macro strategist at Standard Chartered in New York. "Everything before the summit is just noise." Earlier Wednesday, Trump told Fox Business Network he would impose additional duties on Chinese imports if he does not clinch a deal with Xi. At 10:41 a.m. (1441 GMT), the dollar was up 0.45% at 107.660 yen, while the euro was 0.38% higher at 122.34 yen. The greenback was little changed against the euro at $1.1364. The dollar index edged up 0.06%, pulling further away from a three-month low in the wake of comments from two Federal Reserve officials, which cooled expectations the central bank would lower key lending rates by an aggressive half a percentage point at its next policy meeting on July 30-31. On Tuesday, Fed Chairman Jerome Powell stressed the central bank's independence from Trump, who is pushing for rate cuts. St. Louis Fed President James Bullard, considered one of the most dovish U.S. central bankers, surprised some investors by saying a 50 basis point cut in rates "would be overdone". The dollar fell last week after policy-makers opened the door to rate cuts in coming months. Interest rates futures implied traders fully expect a rate cut from the Fed next month, but they now see a 26% chance of a 50 basis-point decrease, down from 30% late on Tuesday, according to CME Group's FedWatch tool. Elsewhere, the New Zealand dollar was a big gainer against the greenback. The kiwi rose 0.66% to $0.6683 after the Reserve Bank of New Zealand left rates unchanged at 1.5% at its policy meeting, though it signalled another cut was likely. ======================================================== Currency bid prices at 10:41AM (1441 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1366 $1.1365 +0.01% -0.90% +1.1374 +1.1349 Dollar/Yen JPY= 107.6100 107.1700 +0.41% -2.40% +107.7500 +107.1100 Euro/Yen EURJPY= 122.32 121.82 +0.41% -3.09% +122.4600 +121.7800 Dollar/Swiss CHF= 0.9765 0.9752 +0.13% -0.50% +0.9784 +0.9744 Sterling/Dollar GBP= 1.2685 1.2697 -0.09% -0.56% +1.2707 +1.2664 Dollar/Canadian CAD= 1.3132 1.3167 -0.27% -3.70% +1.3193 +1.3130 Australian/Doll AUD= 0.6983 0.6957 +0.37% -0.94% +0.6994 +0.6952 ar Euro/Swiss EURCHF= 1.1101 1.1085 +0.14% -1.36% +1.1114 +1.1077 Euro/Sterling EURGBP= 0.8958 0.8954 +0.04% -0.29% +0.8974 +0.8942 NZ NZD= 0.6683 0.6638 +0.68% -0.51% +0.6686 +0.6610 Dollar/Dollar Dollar/Norway NOK= 8.4921 8.5320 -0.47% -1.70% +8.5513 +8.4913 Euro/Norway EURNOK= 9.6527 9.6994 -0.48% -2.56% +9.7124 +9.6530 Dollar/Sweden SEK= 9.2676 9.2768 -0.13% +3.39% +9.2987 +9.2598 Euro/Sweden EURSEK= 10.5330 10.5470 -0.13% +2.62% +10.5626 +10.5220 (Additional reporting by Saikat Chatterjee in LONDON Editing by Susan Thomas) |
What Kind Of Shareholders Own Stella-Jones Inc. (TSE:SJ)?
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The big shareholder groups in Stella-Jones Inc. (TSE:SJ) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.
Stella-Jones has a market capitalization of CA$3.2b, so we would expect some institutional investors to have noticed the stock. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about SJ.
See our latest analysis for Stella-Jones
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Stella-Jones does have institutional investors; and they hold 52% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Stella-Jones's earnings history, below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Stella-Jones is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that Stella-Jones Inc. insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own CA$9.3m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checkingif those insiders have been buying.
The general public holds a 48% stake in SJ. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Oppo's Under-Display Camera Is the Best Notch Killer Yet
After weeks of hinting and teasing , Oppo has now showed off its under-display selfie camera. And it seems to be living up to Oppo’s promises. Credit: Oppo Credit: Oppo MWC Shanghai, the cousin of the Barcelona-based MWC , is the place where Oppo finally unveiled its new tech, officially called ‘under-screen camera’ (via TechRadar ). When you’re not using the camera, the screen just acts as a screen, although the image quality in the area surrounding the camera is noticeably worse, due to the different structure that’s required to have both the camera and the display on top of each other. The camera concealed beneath the display has been fitted with a particularly wide aperture and large sensor, in order to still get bright enough images despite the screen being in its way. MORE: Samsung Will Release Foldable Galaxy Clamshell Just Like The Razr (Report) In terms of image quality, it’s apparently not great, losing out on resolution and clarity compared to normal cameras. But it’s still got some time before it’s added to production phones. The aim is to have it on users’ devices ‘in the near future’, according to a quote given to Engadget . Credit: Oppo Credit: Oppo Oppo has been experimenting with front camera locations for a while, even skipping over the punch-hole to try a pop-up mechanism on the Find X , and a pivoting pop-up version on the newly released Reno . This is just the next step. Oppo already has competition, though. Xiaomi has also been working on under-display camera tech , announcing it on the same day as Oppo. So while Oppo has the honor of taking first place in the battle to make an under-display camera, the contest for the best one is still to be fought. Galaxy Fold 2 Will Reportedly Have 8-inch Screen and S Pen FedEx Sues Trump Administration Over Huawei Shipping Fiasco Galaxy Note 10 5G Looks Gorgeous In New Renders |
eBay Takes on Prime Day With 'Crash Sale'
The Prime Day wars have started. eBay announced today that it's taking on Amazon with a Prime Day-like sale of its own. eBay's Crash Sale will begin on July 15 with deals on devices from LG, Apple, Samsung, KitchenAid, and more. The sale pokes fun at Prime Day 2018, when Amazon's website crashed from excessive traffic. Moreover, eBay says that if Amazon's website crashes again during Prime Day 2019, eBay will release a fresh batch of "too good to be true" deals. Although eBay's Crash Sale won't start till July 15, the e-tailer will kickoff a deals countdown starting July 1. For the three weeks leading up to July 15, shoppers will be able to take advantage of a variety of deals on eBay's website — none of which eBay is releasing at the moment. eBay Crash Sale (Credit: Shutterstock) eBay Crash Sale (Credit: Shutterstock) As we've stated before, Prime Day is turning into a season rather than a 1- or 2-day sale. It's both good and bad news for shoppers because while that means more summer sales, it also means you'll have to be more vigilant as you look for those good, money-saving deals . Make sure to follow our Prime Day coverage for the best deals from Amazon and all of its competitors. Amazon Prime Day 2019 View comments |
Heres the Rumored Nintendo Switch Mini Compared to the Current Switch
A few days ago we saw a possible render of the fabled Nintendo Switch Mini , a smaller version of the current Nintendo Switch. Heres a new render showing how the former looks compared to the latter. Credit: LetsGoDigital Credit: LetsGoDigital The render made by Dutch tech site Lets Go Digital shows what most rumors have already suggested: the Mini will allegedly have the Joy Con controllers permanently fused to its body. This render shows an entire console that's about the size of the current Switch's screen, which could make the new Switch pocket-friendly. While the Nintendo Switch Mini is by no means mini in size at least not as small as the Game Boy Micro compared to the Game Boy Advance it certainly looks significantly smaller than the regular Nintendo Switch. The Mini will reportedly be a handheld-only console, meaning that it wont be able to connect to a TV like the regular Switch. Credit: Honson Credit: Honson The original leak came from Chinese gaming accessory company HonSon, which posted a render online of what they claimed will be the Switch Mini. HonSon seems to be readying a case for the new console, which looks similar in size to the good old PlayStation Portable. A new Switch 2 is also expected, although Nintendo has denied its existence. The first rumors about the new Switch models came out in October 2018. Last March, new rumors claimed that Nintendo would release a Switch 2 for hardcore gamers and a miniature model without detachable Joy-Cons at a lower price. The Wall Street Journal claimed that the new consoles may arrive in June, but so far they havent materialized. Everything we know about the Nintendo Switch Mini View comments |
Gunman kills 2 at California car dealer, kills himself
MORGAN HILL, Calif. (AP) — A man who had just been fired from a Northern California Ford dealership shot and killed two employees and then killed himself, police and witnesses said. Police called to the Ford Store Morgan Hill Tuesday evening found a man dead of an apparently self-inflicted gunshot on the ground near the store's service bays. "In his hand was a firearm, a handgun," police Sgt. Bill Norman told reporters in Morgan Hill, near San Jose in the San Francisco Bay Area. Employees directed officers inside a building where they found two other men who had been shot and killed at the scene. Police did not immediately identify the gunman or the victims. Doug MacGlashan, who was working in the parts department, told KRON-TV that the gunman had just been fired from his job. The service and parts director "had just fired a parts rep that he had said he was going to fire earlier in the day. And I guess the parts rep went outside, got a gun, went into the service and parts director's office and shot him," MacGlashan said. The man also killed the parts manager, he said. Video and photos showed police cars from several agencies swarming the dealership and employees hugging each other as they left the property. ___ Jablon reported from Los Angeles. |
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