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Stock Market News: Micron Likes China; General Mills Looks Soggy
Wall Street bounced back on Wednesday morning, posting modest gains as investors started to feel more hopeful about the prospects for a favorable trade deal going into the weekend's G-20 meeting. Treasury Secretary Steve Mnuchin gave an upbeat assessment of the current status of negotiations between the U.S. and China, and although market participants know all too well that they've faced disappointment in similar situations in the past, they're optimistic that a deal will boost the global economy. Just after 11:30 a.m. EDT, theDow Jones Industrial Average(DJINDICES: ^DJI) was higher by 56 points to 26,604. TheS&P 500(SNPINDEX: ^GSPC) picked up 5 points to 2,923, and theNasdaq Composite(NASDAQINDEX: ^IXIC) climbed 51 points to 7,936.
The height of earnings season is still a month away, but there are high-profile companies that report in the interim. Today,Micron Technology(NASDAQ: MU) delivered interesting news from the semiconductor sector, whileGeneral Mills(NYSE: GIS) provided a different outlook on how the economy is performing and what investors should expect in the weeks and months to come.
Shares of Micron Technology were higher by 14% Wednesday morning after the chipmaker announced itsfiscal third-quarter results late Tuesday. Although the results reflected a sharp drop in demand compared to year-earlier levels, investors were happier with Micron's outlook and prospects for a recovery.
Micron's headline numbers were downright ugly. Revenue plunged 39% compared to the year-earlier quarter, and adjusted net income fell an even more precipitous 69%. The declines were consistent with what the company has seen in past quarters, but it continued a trend that investors are becoming increasingly uncomfortable seeing.
Yet Micron shareholders tried to take comfort in comments that the company made about the future. Even with trade-related restrictions, Micron said it has started to make some shipments to China's Huawei, with CEO Sanjay Mehrotra having seemingly found some sort of workaround. Moreover, some of its projections for improvement in the near term convinced some of those following the stock that the chipmaker will succeed in seeing memory prices and other key market benchmarks improve.
Micron's immediate guidance suggests further weakness, with revenue falling further to between $4.3 billion and $4.7 billion with earnings of $0.38 to $0.52 per share. Even so, those numbers aren't as bad as some had feared, and that's enough to help the struggling stock bounce back at least for a single day.
Meanwhile, shares ofGeneral Mills fell more than 5%. The maker of cereal and other food items reported fiscal fourth-quarter results that didn't live up to investor expectations.
At first glance, General Mills' numbers looked encouraging, with revenue growth of 7% for the quarter. However, just about all of the gain came from the acquisition of Blue Buffalo Pet Products, which left General Mills' organic sales with a decline of 1% compared to year-earlier levels.
The food giant faced a host of challenges during the period. Pricing pressure in the North American retail segment led to a 2% drop in reported net sales there, while currency pressures in Europe, Asia, Australia, and Latin America all contributed to volume weakness in General Mills' international markets.
To its credit, General Mills did identify the need to get back onto a growth trajectory. CEO Jeff Harmening expects greater innovation and brand-building in the coming fiscal year, with financial efforts aimed at reducing leverage levels. Yet with tepid sales growth of 1% to 2% anticipated for fiscal 2020, General Mills will have to hope that investors will remain patient long enough for the company's plans to take shape. Otherwise, the stock could remain under pressure for some time.
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Dan Caplingerhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
The Internet Is Different Depending Where You Live. But It Doesn’t Have to Stay That Way
During my recent trip to Hong Kong, I found myself in hushed, and not-so-hushed, discussions about a concerning trend: the fracturing of the digital universe into separate systems.
In China, it is easy to see this split given the very different experiences one has there versus in the U.S. There is noGoogle, noFacebook, and no Twitter. In America, few people use services that a Chinese person uses every day, like the super-app WeChat or alternative payment methods like Alipay.
This divide is poised to become even wider as the conversation around 5G networks continues to be politically charged. It’s now sometimes dubbed the “splinternet”—a formally bifurcated system. If we continue on the path toward separate networks and standards, consumers and businesses on both sides of the divide will miss out on the innovation and integration that comes from an open, unified system.
But it doesn’t have to be this way; there’s still a chance for us to find a solution that benefits everyone. As business and technology leaders, it is our responsibility to resist the prevailing narrative. That means raising our voices and expanding on the conversations we are having at global tech events to let all leaders know we need a better approach.
We should all acknowledge that both systems offer benefits for consumers and tech companies alike. The freedom of information on which the U.S.-oriented Internet was founded has revolutionized society and the business community; without it, Silicon Valley might not exist in its current form and the world would be worse off.
In China, the efficiency of mobile networks and the opportunity to start with an almost blank slate digital environment has led to the rapid development of tightly woven technologies, creating remarkably seamless online experiences. Consumers there live in what can seem like a futuristic world to many Americans, able to effortlessly make mobile payments for transactions everywhere and adapting to changing online infrastructure quickly and efficiently.
Ideally, we’d all live in a unified global market that properly protects intellectual property rights and allows businesses to freely operate in any jurisdiction. In this world, consumers and businesses would adopt the best elements of each national system.
At Booking Holdings, we’ve invested nearly $3 billion in Chinese firms like Ctrip, Meituan-Dianping, and DiDi,working closely with these companies to make travel easier for those coming into and out of China. If we continue to build on these systems, we will all benefit. However, if 5G networks diverge, businesses will face a conundrum: potentially double development resources for each new experience or deliver it to only part of the globe. If this happens, I have no doubt the rate of innovation will slow for everyone.
The moment we’re confronting today is key: Do we let burgeoning divisions get worse, or do we speak out and try to stop this?
I’m hopeful, largely because of the incredible achievement of the Internet itself. A truly global creation, the Internet has brought us together, overcoming both distance and cultural differences. It has been a key contributor in lifting billions of people from terrible poverty. It has accelerated basic science research that has led to tremendous advancements in health. It has made education more accessible and our social ties tighter.
As the CEO of a technology company, I believe we have to continue meeting formidable change with optimism—to see opportunities in these challenges and to push the public conversation toward more connectivity, not less. Imagine a global 5G Internet that marries the frictionless user experience of China’s web with the freedom of information we treasure in the U.S. Imagine the innovations made possible and the infinite opportunities for societies and individuals alike. That future is still possible, if we are willing to speak out for it.
Glenn Fogel is the president and CEO of Booking Holdings.
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Switzerland's SoftwareONE mandates banks for IPO - sources
ZURICH, June 26 (Reuters) - Swiss software group SoftwareONE has mandated banks for an upcoming stock market flotation, sources told Reuters on Wednesday, paving the way for a potential multi-billion dollar listing this autumn.
Credit Suisse, UBS and JPMorgan have been hired to advise on the planned initial public offering as so-called global coordinators, sources familiar with the matter said. The IPO could take place in October, one of the people said. The firm is expected to be valued at several billion Swiss francs.
Credit Suisse and SoftwareONE declined to comment. UBS and JPMorgan could not immediately be reached for comment.
Since taking over German IT firm Comparex earlier this year, SoftwareONE employs around 5,500 people. The company, headquartered in Stans, Switzerland, helps companies manage an estimated 10 billion euros in software purchases from vendors such as Microsoft, Adobe and IBM. In 2015, KKR acquired a 25 percent stake in the company, the majority of which is still held by the company's founders. (Reporting by Arno Schuetze and Oliver Hirt; writing by Brenna Hughes Neghaiwi; editing by David Evans) |
With A 2.2% Return On Equity, Is SMTC Corporation (NASDAQ:SMTX) A Quality Stock?
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of SMTC Corporation (NASDAQ:SMTX).
Over the last twelve monthsSMTC has recorded a ROE of 2.2%. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.022.
See our latest analysis for SMTC
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for SMTC:
2.2% = US$755k ÷ US$34m (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. That means it can be interesting to compare the ROE of different companies.
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, SMTC has a lower ROE than the average (12%) in the Electronic industry.
That's not what we like to see. It is better when the ROE is above industry average, but a low one doesn't necessarily mean the business is overpriced. Nonetheless, it might be wise tocheck if insiders have been selling.
Most companies need money -- from somewhere -- 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 use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
SMTC does use a significant amount of debt to increase returns. It has a debt to equity ratio of 2.74. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Return on equity is one way we can compare the business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. 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 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 I think it may be worth checking thisfreereport on analyst forecasts for the company.
But note:SMTC may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Turkey's Erdogan says no indication from Trump of U.S. sanctions over S-400 deal
ANKARA, June 26 (Reuters) - Turkish President Tayyip Erdogan said on Wednesday he had not seen indications in his talks with President Donald Trump that the United States will impose sanctions on Ankara over its purchase of Russian S-400 missile defence systems.
The United States has warned that it would impose sanctions on Turkey if it pressed ahead with the S-400 deal, but Ankara has said it would not back down and has so far dismissed the warnings, as relations between the NATO allies strained.
Speaking to reporters in Ankara before departing for the G20 summit in Japan, Erdogan said he would again discuss the issue with Trump in bilateral talks on the sidelines of the summit. (Reporting by Tuvan Gumrukcu Editing by Dominic Evans) |
Are Equifax Inc.'s (NYSE:EFX) Interest Costs Too High?
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Investors pursuing a solid, dependable stock investment can often be led to Equifax Inc. (NYSE:EFX), a large-cap worth US$16b. Big corporations are much sought after by risk-averse investors who find diversified revenue streams and strong capital returns attractive. However, its financial health remains the key to continued success. This article will examine Equifax’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto EFX here.
Check out our latest analysis for Equifax
Over the past year, EFX has ramped up its debt from US$2.6b to US$2.9b – this includes long-term debt. With this increase in debt, EFX currently has US$133m remaining in cash and short-term investments to keep the business going. Moreover, EFX has generated cash from operations of US$584m over the same time period, leading to an operating cash to total debt ratio of 20%, signalling that EFX’s operating cash is sufficient to cover its debt.
Looking at EFX’s US$1.5b in current liabilities, the company arguably has a rather low level of current assets relative its obligations, with the current ratio last standing at 0.57x. The current ratio is the number you get when you divide current assets by current liabilities.
Considering Equifax’s total debt outweighs its equity, the company is deemed highly levered. This is common amongst large-cap companies because debt can often be a less expensive alternative to equity due to tax deductibility of interest payments. Consequently, larger-cap organisations tend to enjoy lower cost of capital as a result of easily attained financing, providing an advantage over smaller companies. Though, since EFX is presently 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.
With a high level of debt on its balance sheet, EFX could still be in a financially strong position if its cash flow also stacked up. However, this isn’t the case, and there’s room for EFX to increase its operational efficiency. In addition to this, its low liquidity raises concerns over whether current asset management practices are properly implemented for the large-cap. Keep in mind I haven't considered other factors such as how EFX has been performing in the past. You should continue to research Equifax to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for EFX’s future growth? Take a look at ourfree research report of analyst consensusfor EFX’s outlook.
2. Valuation: What is EFX 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 EFX 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. |
With A 4.2% Return On Equity, Is Sunora Foods Inc. (CVE:SNF) A Quality Stock?
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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. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Sunora Foods Inc. (CVE:SNF).
Sunora Foods has a ROE of 4.2%, based on the last twelve months. Another way to think of that is that for every CA$1 worth of equity in the company, it was able to earn CA$0.042.
Check out our latest analysis for Sunora Foods
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Sunora Foods:
4.2% = CA$169k ÷ CA$4.0m (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. 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. That means ROE can be used to compare two businesses.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Sunora Foods has a lower ROE than the average (10%) in the Consumer Retailing industry classification.
That's not what we like to see. We prefer it when the ROE of a company is above the industry average, but it's not the be-all and end-all if it is lower. Nonetheless, it could be useful todouble-check if insiders have sold shares recently.
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the 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. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Sunora Foods is free of net debt, which is a positive for shareholders. Even though I don't think its ROE is that great, I think it's very respectable when you consider it has no debt. After all, with cash on the balance sheet, a company has a lot more optionality in good times and bad.
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 the same ROE, then I would generally prefer the one with less debt.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. You can see how the company has grow in the past by looking at this FREEdetailed graphof past earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Some Synovus Financial (NYSE:SNV) Shareholders Are Down 39%
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Investors can approximate the average market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. That downside risk was realized bySynovus Financial Corp.(NYSE:SNV) shareholders over the last year, as the share price declined 39%. That's well bellow the market return of 6.6%. On the bright side, the stock is actuallyup19% in the last three years. Unhappily, the share price slid 1.2% in the last week.
See our latest analysis for Synovus Financial
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the unfortunate twelve months during which the Synovus Financial share price fell, it actually saw its earnings per share (EPS) improve by 35%. Of course, the situation might betray previous over-optimism about growth. It's fair to say that the share price does not seem to be reflecting the EPS growth. But we might find some different metrics explain the share price movements better.
Synovus Financial managed to grow revenue over the last year, which is usually a real positive. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So we recommend checking out thisfreereport showing consensus forecasts
We'd be remiss not to mention the difference between Synovus Financial'stotal shareholder return(TSR) and itsshare price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Dividends have been really beneficial for Synovus Financial shareholders, and that cash payout explains why its total shareholder loss of 37%, over the last year, isn't as bad as the share price return.
While the broader market gained around 6.6% in the last year, Synovus Financial shareholders lost 37% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 8.1% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid.
Synovus Financial is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
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. |
SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Caesars Entertainment Corporation (CZR)
NEW YORK, NY / ACCESSWIRE / June 26, 2019 /Bronstein, Gewirtz & Grossman, LLC is investigating potential claims against the Board of Directors of Caesars Entertainment Corporation ("Caesars" or the "Company") (NASDAQ GS:CZR) for possible breaches of fiduciary duty and other violations of law in connection with the proposed sale of the Company to Eldorado Resorts, Inc. ("Eldorado") (ERI). Such investors are encouraged to obtain additional information and assist the investigation by visiting the firm's site:www.bgandg.com/czr.
Under the terms of the agreement, Caesars stockholders will receive $8.40 in cash and 0.0899 shares of Eldorado common stock for each share of Caesars common stock.
If you are a Caesars shareholder and believe the proposed buyout price is too low, you can learn more about the investigation by visiting the firm's site:www.bgandg.com/czr. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLCPeretz Bronstein or Yael Hurwitz212-697-6484 |info@bgandg.com
SOURCE:Bronstein, Gewirtz & Grossman, LLC
View source version on accesswire.com:https://www.accesswire.com/549968/SHAREHOLDER-ALERT-Bronstein-Gewirtz-Grossman-LLC-Announces-Investigation-of-Caesars-Entertainment-Corporation-CZR |
Coinsource Adds Dai Stablecoin to Bitcoin ATM in Preparation of Remittance Roll-Out
Coinsource, a Texas-based bitcoin ATM operator, announced a partnership with the Maker Foundation to make the Dai stablecoin available on its machines this summer in preparation for the launch of a full remittance service.
Coinsource will be updating all of its 230 machines in 29 US states and the District of Columbia to allow customers to buy, sell, and store Dai stablecoins.
Phase two of the rollout will launch a remittance service allowing crypto ATM and Dai users to send cash from wallet to wallet, enabling recipients to instantly redeem funds at any Coinsource machine or supported location.
Related:New York Awards First-Ever BitLicense to Bitcoin ATM Company
Like Facebook’sLibra, Coinsource is hoping to extend financial services to an underserved and unbanked population.
“By offering support for Dai, we can provide the benefits of crypto to customers who are without access to bank accounts, while at the same time allowing them to avoid the price volatility typically associated with today’s often fluctuating crypto markets,” said Sheffield Clark, CEO of Coinsource, in a statement.
MakerDAO limits the effects of market volatility through a 1:1 soft peg to the U.S. dollar, maintained with an underlying basket of crypto assets, Collateralized Debt Positions, and automated stability mechanisms.
Additionally,MakerDAOlets users lock up ethereum as collateral via a smart contract in exchange for Dai. Roughly 2 percent – equivalent to over $340 million – of allethereumis locked in DAO’s decentralized finance application.
Related:How a Bitcoin Exchange Is Surviving the Central Bank Crackdown in India
Steven Becker, COO of the Maker Foundation said this partnership will remove some of the barriers to enter the decentralized, permissionless economy.
The remittance service is currently only available in the U.S.
• From Seeds to Weed, Bitcoin Finds Home Where Commerce Goes Gray |
Above $13K: Bitcoin’s Price Extends 2019 Gains to New 17-Month High
Bitcoin’s price has refreshed 17-month highs in the U.S. trading hours with a move above $13,000.
CoinDesk’sBitcoin Price Indexis currently trading at 13,020, the highest level seen since mid-January 2018, having surpassed the Asian sessionhighof $12,919 at roughly 17:30 UTC.
With the rise above $13,000, bitcoin has taken the cumulative month-to-date gains to 50 percent and the cryptocurrency now looks set to log double-digit gains for the third straight month. Further, BTC is on track to end higher for the fifth straight month – the longest monthly winning streak since April-June 2017.
Related:CoinMarketCap Makes First Acquisition to Further Improve Crypto Data Offering
Also, the double-digit price gain seen in the last 24 hours is accompanied by a record $33 billion trading volume across cryptocurrency exchanges, according to data sourceCoinMarketCap.
Bitcoin’s recent rise looks sustainable with the dominance rate hovering at 18-month highs above 61.5%. Thedominance rateis an indicator that tracks the percent of the total cryptocurrency market capitalization contributed by the leading cryptocurrency.
A price rise accompanied by a surge in the dominance rate indicates the money is being poured into the bitcoin market for a long haul and not merely to fund purchases of cheap alternative cryptocurrencies.
Related:Bitcoin’s Price Is Up 43% in 7 Days as Bull Frenzy Grips Market
That is also evident from the sharp losses in altcoins’ BTC-denominated exchange rates. For instance, names like XRP, bitcoin cash, EOS, binance coin and other major altcoins are currently down 10-33 percent on a seven-day basis.
Litecoin, which is scheduled to undergo mining reward halving in August, is also down 27 percent on a weekly basis.
Disclosure:The author holds no cryptocurrency at the time of writing
Climber image via CoinDesk archives; charts byTradingView
• Bitcoin Price Hits 17-Month High Above $12.9K
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Prince William says it's fine for his kids to be gay
LONDON (Reuters) - Britain's Prince William said on Wednesday it would be absolutely fine if one of his children was gay but admitted he was worried about the persecution and hatred they might face because of their royal status. The prince, 37, second-in-line to the British throne and destined to be the future monarch and as such nominal head of the Church of England, has three children with his wife Kate: George, 5, Charlotte, 4, and Louis, 2. "It is something I'm nervous about, not because I'm worried about them being gay or anything. It's more about the fact that I'm worried about the pressures they're going to face and how much harder their life could be," William said on a visit to a charity which supports LGBTQ+ young homeless people. Asked how he would feel if one of them were to be gay, he said it would be "absolutely fine". He said that the issue was something he had only started thinking about since becoming a parent. "Particularly for my family and the position we are in, that's the bit I'm nervous about," he said. "I fully support whatever decision they make but it does worry me from a parent point how many barriers, hateful words, persecution, all that discrimination that might come. "That's the bit that really troubles me a little bit." William made the comments on a visit to the Albert Kennedy Trust (akt) in London to open its new services centre, a trip organised ahead of London's annual Pride in London parade and to recognise the 50th anniversary of the Stonewall uprising. The anniversary commemorates the moment when patrons of a gay bar in New York City's Greenwich Village called the Stonewall Inn rose up in defiance of police harassment, which led to a worldwide movement for equal rights for lesbian, gay, bisexual, transgender and other queer people. Tim Sigsworth, akt's chief executive, said William's support would make a big difference. Story continues "I was first impressed by his level of knowledge already but his empathy and appreciation of the struggles and challenges faced by LGBT people was incredible to me," he said. "And just his willingness to learn from the young people, his willingness to challenge his own perceptions and his willingness to come out in support of LGBT people in such a personal way as to refer to his children - that will make a massive difference." (Reporting by Michael Holden; Editing by Gareth Jones) |
Consider This Before Buying New Senior Investment Group Inc. (NYSE:SNR) For The 7.5% Dividend
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Is New Senior Investment Group Inc. (NYSE:SNR) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
With a five-year payment history and a 7.5% yield, many investors probably find New Senior Investment Group intriguing. We'd agree the yield does look enticing. That said, the recent jump in the share price will make New Senior Investment Group's dividend yield look smaller, even though the company prospects could be improving. There are a few simple ways to reduce the risks of buying New Senior Investment Group for its dividend, and we'll go through these below.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Although New Senior Investment Group pays a dividend, it was loss-making during the past year. When a company is loss-making, we next need to check to see if its cash flows can support the dividend.
New Senior Investment Group paid out 74% of its cash flow as dividends last year, which is within a reasonable range for the average corporation.
Given New Senior Investment Group is paying a dividend but reported a loss over the past year, we need to check its balance sheet for signs of financial distress. 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 measures a company's total debt load relative to its earnings (lower = less debt), while net interest cover measures the company's ability to pay the interest on its debt (higher = greater ability to pay interest costs). New Senior Investment Group has net debt of 9.86 times its earnings before interest, tax, depreciation and amortisation (EBITDA) which implies meaningful risk if interest rates rise of earnings decline.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. New Senior Investment Group has interest cover of less than 1 - which suggests its earnings are not high enough to cover even the interest payments on its debt. This is potentially quite serious, and we would likely avoid the stock if it were not resolved quickly. Low interest cover and high debt can create problems right when the investor least needs them. We're generally reluctant to rely on the dividend of companies with these traits.
Consider gettingour latest analysis on New Senior Investment Group's financial position here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Looking at the data, we can see that New Senior Investment Group has been paying a dividend for the past five years. During the past five-year period, the first annual payment was US$0.92 in 2014, compared to US$0.52 last year. The dividend has fallen 43% over that period.
When a company's per-share dividend falls we question if this reflects poorly on either the business or management. Either way, we find it hard to get excited about a company with a declining dividend.
Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. In the last five years, New Senior Investment Group's earnings per share have shrunk at approximately 2.0% per annum. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation.
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. We're a bit uncomfortable with the company paying a dividend while being loss-making, although at least the dividend was covered by free cash flow. Second, earnings per share have been in decline, and its dividend has been cut at least once in the past. There are a few too many issues for us to get comfortable with New Senior Investment Group from a dividend perspective. Businesses can change, but we would struggle to identify why an investor should rely on this stock for their income.
Are management backing themselves to deliver performance? Check their shareholdings in New Senior Investment Group inour latest insider ownership analysis.
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. |
Why Micron Stock Soared Today
Shares of memory chip manufacturerMicron Technology(NASDAQ: MU)jumped on Wednesday following a fiscal third-quarter report that beat expectations. While Micron's revenue and earnings plunged due to tumbling prices for memory chips, investors were expecting worse. The stock was up about 14.5% at 11:25 a.m. EDT.
Micron reported third-quarter revenue of $4.79 billion, down 38.6% year over year but $90 million higher than the average analyst estimate. Revenue from dynamic random access memory, or DRAM, fell 19% from the second quarter thanks to a near-20% decline in average selling price. Revenue from NAND chips was down 18% from the second quarter, with both bit shipments and average selling price dropping.
A DRAM module. Image source: Micron.
Non-GAAP(adjusted) earnings per share came in at $1.05, down 66.7% year over year but $0.26 better than analysts were expecting. Non-GAAP gross margin was 39.3%, down from 60.9% in the prior-year period.
One thing contributing to the optimism was Micron's update on Huawei. The U.S. blacklisting of Huaweiput about 13% of Micron's annual revenue in jeopardy, but the company has been able to find a loophole. Micron has started shipping some orders of certain products to Huawei in the past two weeks, reducing the impact of the ban.
Micron's guidance for its fourth fiscal quarter was mixed. The company expects revenue of $4.5 billion, plus or minus $200 million, close to the average analyst estimate of $4.56 billion. Non-GAAP EPS of $0.45, plus or minus $0.07, is anticipated, well short of analyst forecasts for $0.70.
Micron expects DRAM bit demand to improve in the second half of the calendar year as customer inventory corrections play out. However, that doesn't mean that pricing will improve. Shipping more bits at prices low enough to more than offset any per-bit cost reductions will take a bite out of the company's margins. Non-GAAP gross margin is expected to fall to just 29% in the fourth fiscal quarter.
Micron continues to be optimistic that this downturn is nearing an end, and the market is buying into that story. But givenhow wrong the company has beenover the past year about demand and pricing, it would be wise to take its outlook with a grain of salt.
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Trump: U.S., Guatemala close to a safe third country deal on migrants
By Alexandra Alper and Sofia Menchu WASHINGTON/GUATEMALA CITY (Reuters) - The United States and Guatemala are close to reaching a safe third country agreement as part of an effort to curb U.S-bound migrants, President Donald Trump said on Wednesday, offering no details about when such a deal might be finalized. Trump, who made the remarks at a gathering of religious conservatives in Washington, said last week that a pact was close. About a week ago, however, Guatemala's interior minister, Enrique Degenhart, said discussions were ongoing but a deal had not yet been reached. The U.S. Homeland Security Department did not immediately respond to a request for comment about Trump's remarks. Under a safe third country agreement, Guatemala would be obliged to process asylum claims from migrants who entered its territory first while en route to another country. That could apply to U.S.-bound Honduran or Salvadoran migrants passing through Guatemala. Degenhart, speaking in the Guatemalan capital on Wednesday, still would not detail any agreement with the United States on designating Guatemala as a safe third country, but emphasized that changes to migration rules must be made in consensus with other Central American countries. He said Guatemala is one of several countries seeking to end what he dubbed "abuses" committed by members of migrant caravans that have exploited a regional migration convention that allows passage without restrictions or checks between Guatemala, Honduras, Nicaragua and El Salvador. Degenhart said Guatemala's government is working "to close the legal vulnerability that the United States considers is being abused again," and that officials from Costa Rica, Panama and Colombia will join migration talks set for next week in Washington. Acting Homeland Security Secretary Kevin McAleenan, speaking at the same event, emphasized the need for additional partners. "The burden of addressing the migration flows will be something we do together as a partnership in the entire region with multiple countries," he said. Story continues Neighboring Mexico has so far refused to take on the safe third country role despite pressure from Washington to do more to stem migration. A surge in migrant families seeking asylum, mostly from Central America, has overwhelmed U.S. border facilities. Cracking down on immigration has been a long-standing priority for Trump. The U.S. president moved earlier this month to cut U.S. aid to Guatemala, El Salvador and Honduras over migration, although he said last week that Guatemala "is much different than it was under past administrations." (Reporting by Alexandra Alper in Washington and Sofia Menchu in Guatemala City; Writing by Susan Heavey; Editing by Tim Ahmann, Susan Thomas and Leslie Adler) |
Is It Too Late To Consider Buying SYNNEX Corporation (NYSE:SNX)?
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SYNNEX Corporation (NYSE:SNX), which is in the electronic business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $108.89 at one point, and dropping to the lows of $86.71. 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 SYNNEX's current trading price of $92.02 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at SYNNEX’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 SYNNEX
Good news, investors! SYNNEX is still a bargain right now. According to my valuation, the intrinsic value for the stock is $128.05, but it is currently trading at US$92.02 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that SYNNEX’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by a double-digit 16% in the upcoming year, the short-term outlook is positive for SYNNEX. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder?Since SNX is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 SNX for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SNX. 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 SYNNEX. You can find everything you need to know about SYNNEX inthe latest infographic research report. If you are no longer interested in SYNNEX, 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. |
When Should You Buy SYNNEX Corporation (NYSE:SNX)?
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SYNNEX Corporation (NYSE:SNX), which is in the electronic business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $108.89 and falling to the lows of $86.71. 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 SYNNEX's current trading price of $92.02 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at SYNNEX’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 SYNNEX
Great news for investors – SYNNEX is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $128.05, but it is currently trading at US$92.02 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, SYNNEX’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
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. SYNNEX’s earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
Are you a shareholder?Since SNX is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 SNX for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SNX. 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 buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on SYNNEX. You can find everything you need to know about SYNNEX inthe latest infographic research report. If you are no longer interested in SYNNEX, 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. |
'Hollow Knight: Silksong' is a faster, more elegant sequel
Hollow Knightwas a gorgeous, entertaining action platform game that appeared out of nowhere for a lot of us. The rare result of a crowdfunding campaign that succeeded, the game stood out with its combination gorgeous cartoon(ish) characters, lush levels, high-quality sound and a perfect balance of exploration and action. I think the indie picked up a lot of new fans when it appeared on the Switch last year. Enough to warrant its sequel,Silksong, heading to both Nintendo's hybrid console, alongside PC. That is, when it does launch.
While its creators recentlytold fansthey wanted it to match "the quality and scale of Hollow Knight" before announcing a release date, this week, I got to spend over 20 minutes playing through two different areas of the game, and it feels like it must be pretty close. Please?
In the sequel, you play as Hornet, a slender, faster character that mixes different skills and attacks which makeSilksongfeel slicker and more urgent thanHollow Knight. Hornet's abilities, which you might recall from the first game, are silk-based attacks mixed in with diagonal dives and plenty of jumping. Now, as you're in control of her, those silk abilities are tied to her life.
When she's accumulated enough silk by bashing enemies, she can treat herself to a swift health burst that heals three masks.Hollow Knight only healed a single mask after a second or so of focus — it's probably the most obvious indicator about how the game is built around a more chaotic, thrilling play style. Recall howDoomwas reinvented a few years ago: you're on the attack now, fight hard, because your life and victory depends on it.
There's a drawback to this swift recovery, however. Hornet's "Bind" healing move will consume your entire silk meter — so don't screw it up.
My demo re-trod the parts of the game Nintendo showed off at E3: The Moss Grotto, which appears to be the start of the game, and Deep Docks. Moss Grotto feels similar to the greener parts of Hollow Knight, and acted as an opportunity to acquaint yourself to playing with a different type of character. Hornet's jumps seem more elongated and vertical, and she'll even automatically vault onto platforms she bumps into, which is a forgiving (read: welcome) change from the original game.
Deep Docks, however, threw several more skills your way (a dash ability that is continuous, rejoice!), and pitted you against trickier enemies ( the developers are promising far more enemy types) and a couple of more major antagonists.
This was what I was looking forward to.Hollow Knight's tour de force may be its boss battles: an opportunity to show how well you can control the character, and the degree of mastery you have over new moves and upgrades.
Lace, then, appears an early highlight ofSilksong. Making her appearance with an aggressive monologue (all she's missing is the dalmatian fur coat), she's a very aggressive fencer who delivers dashing attacks and counters, every bit as agile as the new protagonist. Alas, I didn't quite overcome her during my demo.
When you die inSilksong, instead of leaving a ghost behind, you'll leave a cocoon that packs enough silk for a burst of health. It'll add an extra strategic dimension to boss fights. Grab it now for the health boost, or save for dire straights?
While the sequel is apparently set in an entirely new locale, it continues the beautiful art style of the original, with molten lava accents and dusty, leafy floors kicked up as you rush around levels. And you will rush: the new character demands you make the most of her speedy attacks and mobility. The diagonal dive attack is Hornet's signature move, and you'll soon come across prepared enemies wearing helmets to protect against my go-to finisher. Like Hollow Knight, you can use this attack to bounce off enemies or rubbery objects to reach distant areas or simply to get out of harm's way.
Silksongpulls you into a more aggressive way of playing, but it also streamlines what were often slow laborious hikes across the expansive world of Hollow Knight. Once she's dashing at full clip, Hornet jumps in elegant, longer arcs — something I kept repeating as I faced my new nemesis, Lace.
While we don't know much about the story of this sequel, Hornet seems a more confident character than the original's protagonist (heck she talks!), and that confidence is something that's stitched into the game itself.Silksonglooks set to replicate the fun (and success) ofHollow Knight, but do it with finesse. |
Transfer on Death (TOD) Accounts for Estate Planning
Transfer on death (TOD) accounts can keep your estate planning intact while keeping your beneficiaries out of court. If you’re among the57% of adultswho don’t currently have awillortrust, your family is likely headed to probate court. Even estates with wills will likely need to go throughprobate, which can burden your loved ones and create hostility between family members. A TOD account can avoid a legal mess by moving your assets without leaving them in your will.
What Is a TOD Account?
A transfer on death (TOD) account automatically transfers its assets to a named beneficiary when the holder dies For example, if you have asavings accountwith $100,000 in it and name your son as itsbeneficiary, that account would transfer to him upon your death.
AsFidelity Investmentsnotes, a TOD is “a provision of a brokerage account that allows the account’s assets to pass directly to an intended beneficiary; the equivalent of a beneficiary designation.” Though laws governing estate planningvary by state, many bank accounts, investment accounts and evendeedsare considered TOD accounts. If you own part of a TOD property, only your ownership share will transfer.
TOD Account Beneficiaries
TOD account holders can name multiple beneficiaries and divide assets any way they like. If you’ve opened a TOD investment account to be split evenly between your two children, each will receive half of its holdings when you die.
However, thebeneficiarieshave no access or rights to a TOD account while its owner is alive. Those beneficiaries can also be changed at any time, so long as the TOD account holder is deemed mentally competent. Similar to when you leave assets in a will, transfer on death doesn’t establish any rights untilafter you die. While you live, the named beneficiaries can’t access or control the accounts.
TOD Accounts vs. Wills
The most important benefit of a TOD account is simplicity.
Estate planningcan help minimize the legal mess left after you die. Without it, , the probate system can take over the distribution of your assets. It can also name anexecutorof your estate and pay off your remaining debts with your assets. It then distributes whatever is left according to your will, but only if you have one. If you don’t, your assets are distributed evenly by the probate court to whatever living relatives the executor can find. and
Meanwhile, when a person with a TOD account dies, the executor sends a copy of thedeath certificateto an agent at the account’s bank or brokerage. That account is then re-registered in the beneficiary’s name.
TOD Account Supersedes a Will
A TOD account skips the probate process and takes precedence over a will. If you will all of your money and property to your children, but have a TOD account naming your brother the beneficiary, he will receive what’s in the account and your children will get everything else.
If property in your will and have a TOD deed on that property, the TOD order may take precedence. The law varies by state, but banks and brokerages in many states will honor a TOD as soon as you die. If you have any doubts about a TOD contradicting your will, you may want to double-check the terms or consult an advisor
TOD Accounts and Death
A TOD account will prevent you from compiling additional debt through probate related executor and attorney’s fees, but they can’t erase your estate’s debt. Creditors can still go after assets in a TOD account, while tax collectors can impose federalestate taxthan $11.4 million. TOD accounts are also subject toinheritance taxand capital gains tax, as well as taxes on withdrawals from pre-tax investments includingIRAs and 401(k)plans.
TOD Accounts and Spouses
If you have a surviving spouse, investment and bank accounts will pass to them before going to a TOD account beneficiary. Depending on state law, a beneficiary may receive the assets of a TOD account only after a spouse’s death, if at all.MassachusettsandColoradoare among states with strong spousal inheritance laws, so you may want to look into local law yourself or have an advisor do it for you while composing your estate plan.
Pitfalls of TOD Accounts
While a TOD account can be divided among several beneficiaries, that doesn’t mean it has to be divided equally. You may want to consult with beneficiaries and advisors to avoid any potential conflicts. Also, a TOD account with someone under 18 as a beneficiary could be an issue, as minors can’t control investment accounts. If you haven’t designated a guardian or set up a trust (and named a trustee), that may be a conversation worth considering.
Bottom Line
When your family is grieving, complex estate planning can further complicate their lives. If you have someone in your family who you feel can responsibly manage the investments and property you leave behind, a transfer on death (TOD) account may be an ideal way of transferring portions of your estate while avoiding probate.
Estate Planning Tips
• As you begin the estate-planning process, a financial advisor can be a big help in organizing your finances and accounts. Finding the right financial advisor thatfits your needsdoesn’t have to be hard.SmartAsset’s free toolmatches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals,get started now.
• If you still have questions about wills and TODs, you may want to consider the strengths and limitations of wills. There are multiple wills, and you may find that one addresses your needs better than either another will or a TOD. For reference, here are somethings to know about making a will.
Note: This article discusses legal matters touching on estate planning, tax planning and other areas of the law. Nothing in this article should be considered legal advice. For all specific questions, speak with a lawyer.
Photo credit: ©iStock.com/Pgiam, ©iStock.com/Mladen Zivkovic, ©iStock.com/Duncan_Andison
The postTransfer on Death (TOD) Accounts for Estate Planningappeared first onSmartAsset Blog.
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Calculating The Fair Value Of Sogou Inc. (NYSE:SOGO)
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How far off is Sogou Inc. (NYSE:SOGO) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
See our latest analysis for Sogou
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$96.00", "2020": "$163.50", "2021": "$144.00", "2022": "$132.39", "2023": "$126.00", "2024": "$122.77", "2025": "$121.58", "2026": "$121.75", "2027": "$122.86", "2028": "$124.65"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x2", "2021": "Analyst x1", "2022": "Est @ -8.06%", "2023": "Est @ -4.83%", "2024": "Est @ -2.56%", "2025": "Est @ -0.97%", "2026": "Est @ 0.14%", "2027": "Est @ 0.92%", "2028": "Est @ 1.46%"}, {"": "Present Value ($, Millions) Discounted @ 8.87%", "2019": "$88.18", "2020": "$137.96", "2021": "$111.61", "2022": "$94.25", "2023": "$82.40", "2024": "$73.75", "2025": "$67.08", "2026": "$61.71", "2027": "$57.20", "2028": "$53.31"}]
Present Value of 10-year Cash Flow (PVCF)= $827.44m
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.9%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$125m × (1 + 2.7%) ÷ (8.9% – 2.7%) = US$2.1b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$2.1b ÷ ( 1 + 8.9%)10= $892.60m
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $1.72b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $4.4. Compared to the current share price of $4.16, the company appears about fair value at a 5.4% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Sogou as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.9%, which is based on a levered beta of 1.029. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Sogou, I've compiled three pertinent aspects you should further research:
1. Financial Health: Does SOGO have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does SOGO's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of SOGO? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
American Consumers Might be About to 'Talk Ourselves Into a Recession.' Here's How
Consumers may be starting to sweat it.
According to business research group The Conference Board’s monthly report, the consumer confidence index missed expectations and dropped to 121.5 in June—a two-year low from September 2017. The board expected the index to hit 134.1 originally, but bearishly revised last month’s number to 131.3 for June.
As a monthly indicator of the overall economy, the index provides insight into consumers’ concerns.
One of consumers’ biggest fears? Trump’s trade war.
“The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” Conference Board senior director Lynn Franco said in a statement. “Although the Index remains at a high level, continued uncertainty could result in further volatility in the Index and, at some point, could even begin to diminish consumers’ confidence in the expansion.”
“The stark contrast between everyday Americans’ assessment of the economy and what data say about the economy highlights the risk of ‘talking ourselves into a recession’,” Greg McBride, the chief financial analyst for Bankrate.com, said in a note. “Consumers that think the economy is weak will spend less and business owners that think the economy is weak won’t hire more people.”
Economists are equally frustrated by the numbers. Michael Pearce, the senior U.S. economist for Capital Economics, wrote in a note that the index was a “disappointing outcome.” He also noted that “We’re guessing that the Mexico tariff fiasco, which also triggered steep drops in business surveys conducted while the tariff threat was live, is responsible.”
In fact,Fortunereported Tuesdaythat conversations at the upcoming G20 summit in Osaka, Japan may be dominated by sorting out trade concerns (as opposed to the summit’s typical topics like climate change).
And John Traynor, the chief investment officer at People’s United Advisors, believes the summit should majorly impact consumer (and market) attitudes in the next couple months—either by inciting further bullishness on the economy or righting it. While he maintains it has taken a while for trade concerns to seep into consumer concerns, Traynor suggests trade unrest and Middle East headlines may be finally trickling down.
“As reflected by today’s drop in consumer confidence, these same tenuous headlines have started to make a dent on Main Street as people have become more concerned about the implications of lingering China Trade negotiations on hiring,” Dan Skelly, the executive Director, head of wealth management’s equity model portfolio solutions and market strategy atMorgan StanleytoldFortunein a note.
Apart from trade and tariffs, the survey shows consumers are also more pessimistic on short-term business and labor conditions. In fact, the index saw a decrease in consumers who expected business conditions to improve in 6 months from 21.4% to 18.1%, and the outlook for those expecting more jobs in the short-term decreasing from 18.4% to 17.3%.
Still, while many experts remain bullish on the economy, according to a new Bankrate survey, everyday Americans may be slightly less enthused.The survey showsthat some 39% of Americans rate the economy as ‘not so good’ or ‘poor.’
In fact, according to the latest U.S. job’s report, job creation in May was worse than expected, with payrolls up only 75,000 compared to Dow Jones estimates of 180,000,according to the Labor Department.
But while the index decline raises some concerns, other analysts are more sanguine.
Relatively speaking, the low unemployment rate, rising wages, lower interest rates and low inflation all should contribute to “steady consumer spending in the coming months,” Robert Frick, corporate economist at Navy Federal Credit Union, toldFortunein a note. And Frick isn’t alone.
Despite the inherent doom and gloom of dropping consumer confidence numbers, those like Traynor at People’s United Advisors are actually “surprised with the strength” of confidence in the past few months.
Traynor thinks consumers are “generally in good spirits” when employment and wage numbers are good, as they have been as of late, he says.
In fact, the unemployment rate fell in May to 3.6%—the lowest rate since December 1969, according to the Labor Department.
That’s a big positive. But for consumers, the belief that there’s a recession coming may be enough to bring one about.
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Why Trump and Powell will send gold prices skyrocketing
The backdrop is fertile for gold prices to stay smoldering.
In case you have been living under a giant gold rock, the price of the yellow metal has surged about 11% to $1,413 an ounce in the past 30 days. Credit for the out-of-the-blue rise — which has also extended to gold mining stocks such as Barrick Gold (GOLD) (up 36% past month) — goes to President Donald Trump and his hand-picked Federal Reserve Chair Jerome Powell.
The administration’s escalating trade war with China has sent investors piling into the often viewed safe haven, gold. Meanwhile, thinly veiled promises by Fed officials since May have sent the U.S. dollar tanking. As is normally the case, when the dollar weakens considerably investors flock to gold as it’s seen as a store of value.
“Although we haven’t had a Fed rate cut yet, we have expectations that real interest rates will go lower and that typically means gold prices on the rise. I think this move is here to stay,” GraniteShares CEO Will Rhind said on Yahoo Finance’sThe First Trade. Rhind added that fear among investors is also one part of the latest pop in gold prices.
Rhind doesn’t rule out gold prices above $1,500 an ounce in short order, but concedes to not having a price target.
Goldman Sachs is on board with that analysis, too. Analysts at the investment bank wrote in a new note Wednesday that a combination of a weak dollar and rising global uncertainties could keep gold prices hot. Goldman raised its 12-month gold price forecast to $1,475 an ounce from $1,425 an ounce.
“Goldman could be conservative at this stage,” Rhind said.
Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi
Read the latest financial and business news from Yahoo Finance
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Autonomy founder Lynch denies wrongdoing in HP fraud case
By Paul Sandle
LONDON, June 26 (Reuters) - Mike Lynch, once hailed as Britain's answer to Bill Gates, denied all claims against him on Wednesday when he kicked off what is expected to be a month-long testimony in his multibillion-dollar fraud battle with Hewlett-Packard (HP).
HP is suing Autonomy founder Lynch along with his former finance chief Sushovan Hussain for more than $5 billion after the 2011 sale of the British company to the Silicon Valley group went disastrously wrong. HP paid $11 billion for Autonomy.
Lynch denies any wrongdoing and says HP's mismanagement was responsible for the failure of the acquisition, a deal that was designed to transform HP from a computer and printer maker into a software-focused enterprise services firm.
He was asked by HP's lawyer Laurence Rabinowitz if he had fraudulently inflated Autonomy's revenue to meet or beat market forecasts, and in the process misled auditors, the audit committee, analysts, investors and the market in general.
Lynch replied: "That is incorrect".
"It's important to get some perspective," he said.
The 54-year-old entrepreneur, a leading light in the British tech scene who has previously held an advisory role for the government, said no one was disputing the amount of cash Autonomy was taking to the bank.
Autonomy was "one of the most successful companies that England had ever produced," he said.
HP wrote down the value of Autonomy by $8.8 billion a year after the takeover, saying it had uncovered serious accounting improprieties.
HP's lawyers have told the court that Autonomy inflated its true value through a series of fraudulent transactions, such as selling hardware at a loss and so-called round-trip deals - a type of barter with no real commercial rationale - masterminded by Lynch.
HP's Rabinowitz said on Wednesday the trial needed to establish whether any underlying wrongdoing had taken place at Autonomy, and on a second level whether Lynch was responsible for any wrongdoing.
Rabinowitz said Lynch had an iron grip on Autonomy's finances, including approving relatively small deals. He said Autonomy's auditor Deloitte had noted that Lynch wanted to approve all purchase orders over $30,000, which it said was a "very unusual level of control" for a FTSE 100 CEO.
Lynch said in practice this did not happen, adding a review of emails showed he had only approved between one in 10 and two in 10 of the transactions as many were repeat contracts.
Asked by Rabinowitz if he thought there had been any wrongdoing at the company, Lynch replied that he had "come to learn of some examples" where someone had behaved improperly.
However he reiterated his defence that Autonomy had been destroyed due to management incompetence, politics and infighting at HP. (Additional writing by Kate Holton; Editing by Mark Potter) |
Resurgent health insurer stocks face test at Democratic debates
By Lewis Krauskopf
NEW YORK, June 26 (Reuters) - Shares of U.S. health insurers that have rebounded in the past two months could come under pressure this week as Democrats square off in their first presidential debates, with healthcare policy reform potentially high on the agenda.
Support for government-run "Medicare for All" plans from U.S. Senator Bernie Sanders and other left-leaning politicians and candidates shook the stocks earlier this year, and has contributed to the overall sector's underperformance, despite the recent recovery.
The debates take place on Wednesday and Thursday in Florida - with 10 candidates taking part each night - as Democrats vie for their party's nomination for president in 2020. Other debates are expected in July and later in the fall.
The stocks have also faced uncertainty because of changes proposed by the Trump administration involving how the industry uses drug discounts and policies regarding disclosure of hospital and physician pricing.
Of all healthcare companies, insurer stocks have "the most to win or lose" from the debates, said Martin Jarzebowski, sector head of healthcare for Federated Investors.
"They have already been hit the hardest when you looked at all of the different Medicare for All proposals," Jarzebowski said.
With a variety of healthcare reform ideas - some more radical than others - clouding their prospects, health insurer stocks have lagged this year. The S&P 1500 managed care sub index is up barely over 1% in 2019. That trails a 7.5% rise for the broader S&P 500 healthcare sector and the 16.5% gain for the S&P 500, a common barometer of the overall stock market.
Since mid-April, however, the S&P 1500 managed care index has climbed over 15%, through Tuesday's close, nearly doubling the increase of the overall healthcare sector over that time, while the S&P 500 has barely gained.
Among health insurer stocks over that time, Anthem climbed 20%, UnitedHealth Group rose 14% and Molina Healthcare increased nearly 25%.
Investors seem more confident that the chances are small that the 2020 elections will result in a government-run healthcare system that eliminates the role of private insurers, according to analysts.
“The markets are pretty comfortable that something like a single payer system isn’t going to happen (anytime soon)," said Ipsita Smolinski, managing director at healthcare research and consulting firm Capitol Street.
BIDEN BOUNCE
Jarzebowski also noted that the rebound in insurer shares came as former Vice President Joe Biden, who is seen as likely to favor more moderate healthcare reforms, officially entered the race and has been leading in polls.
The companies also "printed solid numbers" in their first-quarter results, said Sahak Manuelian, head of equity trading at Wedbush Securities.
"The weakness had been more political risk than any kind of fundamental risk to their business," Manuelian said.
Democrats will likely focus on three healthcare policy themes, Bernstein analyst Lance Wilkes wrote in a note ahead of the debates: expanding access to coverage; improving affordability; and attacking prescription drug costs.
How the health insurer stocks perform following the debates may depend on which candidates are perceived as having done well, said Michael Newshel, an analyst with Evercore ISI.
"If someone that is pounding the table for Medicare for All, no compromise, are they getting rewarded for that in the polls?" said Newshel. "Or is there clearly some room for some candidates to talk about incrementalism and not get punished for that?"
Indeed, some candidates might be more likely to embrace improvements to the Affordable Care Act (ACA), a change that could be viewed more favorably than wholesale system reform.
One candidate whose position may be closely watched, according to Wilkes, is U.S. Senator Elizabeth Warren, who has gained some steam in recent polls.
"Is she for Medicare for All or does she support building upon and expanding the ACA?" Wilkes said.
And some proposals could benefit insurers, such as the ability for adults 55-years-old or younger to "buy in" to Medicare, the federal government health plan for which people now must be at least 65 to be eligible. That could particularly help insurers such as Humana Inc, which specializes in private Medicare Advantage plans, Newshel said.
“As these stocks sold off, there hasn’t be any differentiation, in terms of their product mix," he said. (Additional reporting by Caroline Humer in New York; Editing by Alden Bentley and Bill Berkrot) |
How Many Sotherly Hotels Inc. (NASDAQ:SOHO) Shares Have Insiders Sold, In The Last Year?
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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares inSotherly Hotels Inc.(NASDAQ:SOHO).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for Sotherly Hotels
Over the last year, we can see that the biggest insider sale was by the President, David Folsom, for US$65k worth of shares, at about US$7.60 per share. So we know that an insider sold shares at around the present share price of US$7.26. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year, we note insiders sold 19517 shares worth US$146k. In the last year Sotherly Hotels insiders didn't buy any company stock. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
The last three months saw significant insider selling at Sotherly Hotels. In total, insiders dumped US$146k 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.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 12% of Sotherly Hotels shares, worth about US$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
Insiders haven't bought Sotherly Hotels stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Sotherly Hotels.
Of courseSotherly Hotels may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
NSA improperly collected US phone call data after saying problem was fixed
The National Security Agency improperly collected phone call records of Americans last fall, months after a previous breach. |
Roberta Williams' legacy honored with $250,000 scholarship and internship program
Mike Futter,Wed, 26 Jun 2019 16:45:00
Roberta Williams is due the praise she has receivedin the last few years. While the Sierra On-Line co-founder has stepped away from the video game industry, her influence has rippled out and is still cited by developers today.
The Vancouver Film School has announced a partnership with Microsoft studio The Coalition (Gears 5) and Blackbird Interactive (Homeworld Remastered) for a new scholarship and internship program. The Roberta Williams Women in Game Design Scholarship & Work Experience Contract is a $250,000 fund that will be awarded to female-identifying students.
"Game designers are storytellers,” said The Coalition studio head Rod Ferguson. “They create worlds, characters and moments that envelop and inspire the player. Through this partnership with Vancouver Film School and Blackbird Interactive, we are hoping to find and inspire future game designers as they bring their unique perspective to The Coalition and help us shape game experiences for years to come.”
GameDaily reached out to Microsoft to gain additional clarification regarding who is eligible to apply. The use of “female-identifying” in the scholarship description is inclusive, but it does not address how non-binary individuals might be considered. The company did not respond by publication. We’ll update should we receive a response.
The package includes full tuition to the Vancouver Film School’s game design program and monthly individual mentorship sessions from designers at The Coalition or Blackbird Interactive. Upon graduation, the students will also be awarded a paid six-month work contract that will result in a game credit. VFS assures that the pay rate for the contracted work period will be “fair market” compensation.
Additionally, the program will award smaller grants of $1,000 to $30,000.Applications are opennow and will be accepted through July 31. Recipients will be notified at the end of August for enrollment beginning in January or May 2020.
Crediting is an important part of the game industry. Working on a game is important, but shipping one is considered a major career milestone. ANovember 2018 Gamasutra piece by Richard Mossdrives home the importance of proper crediting, especially in the wake ofRed Dead Redemption 2’srelease and Rockstar’s troubling crediting practices. The issue recently resurfaced asJapanese publisher XSEED went on the recordstating that its policy is to remove credits for any developer who worked on a game but isn’t employed by the company at launch.
Williams and her husband Ken founded On-Line Systems (later renamed to Sierra On-Line) in 1980. While her earliest graphic adventures, beginning withMystery House, were no doubt innovative, it was 1984’sKing’s Questthat put her and the company in the spotlight. Williams continued to design the series through her final game, in 1998. Her contributions also include growing the video game medium beyond its kid-friendly roots with the mature, full-motion video horror game,Phantasmagoria.
Roberta and Ken Williams have donated a collection of design artifacts to theInternational Center for the History of Electronic Gamesin Rochester, New York (affiliated with The Strong National Museum of Play), where researchers can study their ground-breaking work. For the rest of us, we need only pick up a controller or sit down at a keyboard to experience how the duo have influenced modern gaming.
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This Is America’s Favorite Way To Travel
When you’re planning a vacation, a major part of the planning process is how you’ll get there. Although flying has become more relatively affordable compared to past decades, many Americans still prefer the classic choice of taking a road trip as opposed to flying somewhere. Getting around by car was chosen as the preferred mode of transportation by consumers in the Morning Consult’s The State of American Travel 2018 survey, which surveyed over 2,000 American adults about their travel preferences. Here’s what they said about how they like to get around.
Americans were asked to choose if they associate travel by airplanes, buses, trains and cars with being fun, comfortable, appropriately priced, efficient and minimal hassle. Car travel got the most votes in every category, with 67% saying it’s fun, 74% saying it’s comfortable, 82% saying it’s appropriately priced, 78% saying it’s efficient and 74% saying it’s a minimal hassle.
Buses had the lowest amount of votes for fun (33%), comfortability (43%) and efficiency (52%), while airplanes had the lowest amount of votes for being appropriately priced (49%) and trains had the lowest amount of votes for minimal hassle (42%).
Tatiana, the founder of the blogFamily Road Trip Guru, said there are many reasons Americans might prefer traveling by car on their vacations compared to the other transportation options.
“First, it’s way cheaper than airline travel,” she said. “Amtrak is ridiculously expensive too — even more so than air travel, especially for longer trips. Second, it gives you the ultimate flexibility of where to go, when to stop and how long to stop for. Third, you can pack for a road trip much easier — you don’t have to think about luggage [weight] limits, TSA rules, etc. This is especially convenient for people traveling with kids. Fourth, if you fly to a destination, you miss all the fun along the way: charming small towns, historic landmarks and natural wonders which you can only see on the road. There are so many scenic byways in the U.S. waiting to be explored. Fifth, some people choose road trips for peace and quiet. There are many road trips that take you away from the hustle and bustle and into the wilderness. Sixth, road trips save you from stress big time — some people are afraid to fly (yours truly included), and others hate [the hassle of] airport security lines (also true for big train stations), delayed flights/trains and lost luggage. Finally, a flight is just a flight; a road trip is a journey, forever memorable and unique.”
Find Out:Air Travel Mistakes That Are Costing You Hundreds
The survey asked Americans to rate the following elements that make a vacation enjoyable: a beach environment, a cruise, culture/history, fishing/hunting, golfing/sporting, hiking/nature, a resort, a rural environment, a road trip, RV camping, tent camping, a theme park and an urban environment. Beach vacations had the most universal appeal, with 47% of Americans saying that they would enjoy a beach environment a lot. Road trip was tied with resorts for the second-most popular vacation choice, with 38% of Americans saying that they would enjoy each type of vacation a lot. So for a really enjoyable vacation, consider road-tripping to a beach resort.
The majority of respondents — 35% — said that, overall, the experience of traveling by airplane has gotten worse over the past few years. Americans are particularly dissatisfied with the cost of air travel, with 48% saying that cost has gotten worse. The one area where Americans believe air travel has improved is safety, with 36% believing that it’s gotten safer to travel by air in recent years. (It’s worth noting that the findings are from 2018, prior to the second deadly crash of a Boeing 737 Max in March 2019.)
Most Americans — 74% — said the cost of tickets is “very important” when traveling by airplane. Americans also value free checked luggage, comfort/legroom and efficient boarding and deplaning. In-flight beverages and snacks are not a deciding factor for most Americans, with only 35% rating complimentary beverages and snacks as “very important,” and only 32% rating the cost of additional beverages and snack options as “very important.”
Furthermore, cost trumped airline preference for Americans when booking flights. Forty-four percent said they book flights based on what’s cheapest and most convenient, regardless of the airline; only 26% said that they factor in airline preference when buying tickets.
Americans chose Southwest as their favorite domestic airline, with 49% stating that they have a favorable opinion of the airline. American Airlines came in second, with 47% of Americans thinking of the airline favorably, and Delta was a close third, with 46% having a favorable opinion of the company. Spirit is the least popular, with only 17% having a favorable opinion of the airline.
Click through to find out20 tips to make airline coach seats feel like first class.
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This article originally appeared onGOBankingRates.com:This Is America’s Favorite Way To Travel |
Should You Be Worried About Insider Transactions At Sotherly Hotels Inc. (NASDAQ:SOHO)?
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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 shareholders might well want to know whether insiders have been buying or selling shares inSotherly Hotels Inc.(NASDAQ:SOHO).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Sotherly Hotels
Over the last year, we can see that the biggest insider sale was by the President, David Folsom, for US$65k worth of shares, at about US$7.60 per share. So what is clear is that an insider saw fit to sell at around the current price of US$7.26. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
We note that in the last year insiders divested 19517 shares for a total of US$146k. Sotherly Hotels insiders didn't buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Sotherly Hotels 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 Sotherly Hotels. In total, insiders sold US$146k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of Sotherly Hotels shares, worth about US$14m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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.
Of courseSotherly Hotels may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Queen Elizabeth Shares This Key Belief with Meghan Markle — and It Involves Tea!
Queen Elizabeth shares a key belief with Meghan Markle : A meal can bring people together. While hosting a party at Buckingham Palace on Tuesday evening, the 93-year-old monarch said that “a bit of toast and tea goes a long way.” The Queen was celebrating the contribution of all faith groups to British life at the reception, where she asked guests about the problems faced by their communities, including a rising number of asylum seekers and refugees. Queen Elizabeth said she had noticed that food was often a way to bring people from different faiths and traditions together. Last year, the Duchess of Sussex introduced a fundraising cookbook — called Together: Our Community Cookbook — which was aimed at underlining how communities can unite and grow in understanding each other in the kitchen. It raised more than $500,000 to benefit the community around the Grenfell Tower, where 72 people died when it was engulfed in fire two years ago. Jeff J Mitchell/Getty Images Queen Elizabeth | Jonathan Brady/WPA Pool/Getty Before her romance with Prince Harry blossomed, Meghan also shared recipes and her love of food on her now-defunct lifestyle blog , The Tig. Meghan also knows the power of a good spot of tea — and toast! When she was hosting friend and makeup artist Daniel Martin earlier this year , he shared a snap of their meal, which included a pot of tea and avocado toast. View this post on Instagram Back to our Tig days...❤️ Thank you Meghan for being the consummate hostess this weekend and still being the #avocadotoast whisperer, YUM! 🤷🏻♂️ 🥑🍞☕️ #foodie #foodiegram A post shared by Daniel Martin (@danielmartin) on Jan 20, 2019 at 1:07am PST The Queen welcomed 160 guests — including Christians, Muslims, Hindus, Sikhs, Buddhists, Jews, Humanists, Bahai and those of no faith — to thank them and to “recognize those bringing about positive change in their local neighborhoods and celebrate the work being done to support people of all ages and backgrounds,” a palace spokesman said. Story continues Two guests were overcome with emotion after meeting her, overwhelmed with the acknowledgement of their hard work. Nighat Khan — from New Vision 4 Women in West London, which invites women from diverse communities to meet over cookery — told reporters at the reception, “She wanted to know all about our projects and the challenges the women we work with face. We thanked her for the lovely opportunity, and she said this is a good way of connecting and that we should all talk to each other and we can help each other in the future.” Khan added the monarch was particularly interested in the cooking project, which sees women talk about their problems as a byproduct of working and eating together. Khan said, “People are happy to talk a bit in that process, and then we can help them. She said, ‘A bit of tea and toast can go a long way.’ It’s very British, isn’t it?” Queen Elizabeth | Jonathan Brady/WPA Pool/Getty The Queen’s remarks remark came after she met Anna Dyson, who runs a café in Leeds based on the Jewish values of social action. There, customers offer their money, time or a skill to help others in return for coffee, toast and other treats. Dr. Rose Drew, Director of Interfaith Glasgow, which promotes religious diversity, said, “She spoke about the value of bringing people together, and was happy that connections will be made this evening that will help more people going forward.” “It’s about creating a forum for people to speak,” Dr. Drew added. “She had noticed [from speaking to people] that food was often a way of bringing people from different traditions together.” Anna Dyson runs @toastlovecoffee , a café in Leeds rooted in the Jewish values of social action: in return for coffee, toast and other treats, customers offer their money, time or a skill to help others in their growing multi-faith community. pic.twitter.com/vg8kXcDGRc — The Royal Family (@RoyalFamily) June 25, 2019 Dai Hankey, a pastor from Cardiff, Wales, who leads Red Community, a charity supporting survivors of human trafficking, said: “She was very interested and knowledgeable. You might get the impression that people who live in palaces don’t understand what’s happening [around the country], but she clearly did.” “She said she imagined there are more people who are asylum seekers and refugees than ever before, because people are being moved around the world so much,” Hankey added. “It’s like wow, she actually cares. It’s very humbling that she has recognized everyone here tonight.” Introduced to Pastor Kingsley Avagah, who is originally from Ghana and now runs runs the Christian-based performing arts group Paradigm Impact network in Doncaster, the Queen said she had admired the friendliness of the Ghanaian people during her visits there and was pleased he had brought that to Britain. Prince Harry and Meghan Markle | REX/Shutterstock Meghan, 37, was baptized into the Church of England in a secret ceremony last spring ahead of her wedding to Harry. And the intimate service, which was a significant nod to Harry’s grandmother, Queen Elizabeth ’s role as head of the Church of England, had special meaning for Meghan, as faith is a key pillar for her. “ A deep sense of gratitude and humility has guided her ,” a longtime friend previously told PEOPLE. “We can still be modern women and feel all the feels with feminism and be strong moms and strong wives but understand that [our] relationship [with God] is so critical.” The friend added: “Meg is extremely faithful. We pray a lot together. We meditate. She has had, and especially has now, a very close relationship with God.” |
White House plans new social media summit as Congress raises questions
By David Shepardson WASHINGTON (Reuters) - The White House announced on Wednesday it will hold a summit on social media next month amid growing criticism from President Donald Trump and some in Congress. The White House did not say who would take part in the July 11 gathering and major social media firms did not immediately confirm they would attend. White House spokesman Judd Deere said the meeting would "bring together digital leaders for a robust conversation on the opportunities and challenges of today’s online environment." U.S. politicians, led by Trump, have increasingly used social media to try to go around traditional media and woo voters directly via social media platforms. Trump has said on many occasions that he would have been elected without Twitter and Facebook. Trump, who has more than 61 million Twitter followers, on Wednesday renewed his regular attacks on Twitter suggesting without offering evidence in a Fox Business Network interview that Twitter makes it "very hard for people to join me at Twitter ... and they make it very much harder for me to get out the message. "Twitter is just terrible what they do." Twitter did not immediately comment while Facebook declined to comment on the summit Wednesday. Alphabet Inc's Google unit did not immediately respond to a request for comment. At a U.S. House Homeland Security Committee hearing Wednesday, executives from the three major social media firms face questioned about efforts to remove extremist content and alleged political bias Representative Bennie Thompson, a Democrat who chairs the committee, cited the live-streaming of an attack that killed 51 people and wounded 49 at two mosques in Christchurch, New Zealand, on Facebook and said social media companies need to do more to prevent such content "from spreading on your platforms again." He said they must also do a better job keeping "hate speech and harmful misinformation off their platforms." Story continues In April, Trump met with Twitter Chief Executive Jack Dorsey and spent a significant time questioning him about why he had lost some Twitter followers, a person briefed on the matter told Reuters. The source said Dorsey explained in response to Trump’s concerns about losing followers that the company was working to remove fraudulent and spam accounts and that many famous people, including Dorsey himself, had diminished followings as a result. Trump again complained on Wednesday he was not gaining followers as quickly as he previously did. Trump lost 204,000 of his 53.4 million followers in July 2018, according to social media data firm Keyhole, when Twitter started purging suspicious accounts after it and other social media services were used in misinformation campaigns attempting to influence voters in the 2016 U.S. presidential race and other elections. Trump has one of the most-followed accounts on Twitter. But the president and Republicans in Congress have repeatedly criticized the company and its social media competitors for what they have called bias against conservatives, something Twitter denies. (Reporting by David Shepardson; Editing by Bill Trott) |
How Much Did Saturn Oil & Gas Inc.'s (CVE:SOIL) CEO Pocket Last Year?
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In 2016 John Jeffrey was appointed CEO of Saturn Oil & Gas Inc. (CVE:SOIL). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Saturn Oil & Gas
At the time of writing our data says that Saturn Oil & Gas Inc. has a market cap of CA$28m, and is paying total annual CEO compensation of CA$300k. (This figure is for the year to December 2018). That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at CA$200k. We took a group of companies with market capitalizations below CA$263m, and calculated the median CEO total compensation to be CA$152k.
Thus we can conclude that John Jeffrey receives more in total compensation than the median of a group of companies in the same market, and of similar size to Saturn Oil & Gas Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Saturn Oil & Gas has changed from year to year.
Over the last three years Saturn Oil & Gas Inc. has grown its earnings per share (EPS) by an average of 45% per year (using a line of best fit). In the last year, its revenue is up 580%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assessthis data-rich visualizationof earnings, revenue and cash flow.
With a total shareholder return of 26% over three years, Saturn Oil & Gas Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at Saturn Oil & Gas Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. So you may want tocheck if insiders are buying Saturn Oil & Gas shares with their own money (free access).
If you want to buy a stock that is better than Saturn Oil & Gas, thisfreelist of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Eric Trump says he was spit on at Chicago cocktail lounge
CHICAGO (AP) — President Donald Trump's son Eric Trump said the U.S. Secret Service took an employee of a Chicago cocktail lounge into custody after she spit on him. Eric Trump told Breitbart News in a telephone interview that it was "purely a disgusting act by somebody who clearly has emotional problems." He implied that the incident was an example of Democrats' showing frustration for the successes of his father's Republican administration. "For a party that preaches tolerance, this once again demonstrates they have very little civility," he said. "When somebody is sick enough to resort to spitting on someone, it just emphasizes a sickness and desperation and the fact that we're winning." His comments came after reports of the alleged spitting incident Tuesday night at The Aviary in Chicago's trendy West Loop area. The lounge's owners, the award-winning Alinea Group, said in a statement Wednesday that they're "just beginning to learn the details" of the "unfortunate incident," but the employee who allegedly spat upon Eric Trump has been placed on leave. "What is certain is this: no customer should ever be spit upon," the statement said. Alinea Group says its human relations team but declined to discuss details. It said employees have received threats and that fake reviews are being posted about the lounge. It said people are wrong to call for the lounge to be closed, as are others who are "praising this as an act of civil disobedience." The statement adds: "We hope this incident can, at least, serve to illuminate the current absurdity of the discourse in our politics." One of the restaurant group's co-owners, Nick Kokonas, invited the national champion Clemson football team to eat at his restaurants in January after President Trump served them fast food at the White House. Chicago police spokesman Anthony Guglielmi said on Twitter that officers assisted the Secret Service with a "law enforcement matter" and deferred inquiries to the agency. The Secret Service, White House and Trump Organization, which Eric Trump helps run, didn't immediately respond to requests for comment from the AP. There have been other public confrontations involving those associated with Trump and his administration. In June 2018, The Red Hen restaurant in Virginia refused to serve President Donald Trump's spokeswoman , Sarah Huckabee Sanders at the request of gay employees who objected to how Sanders defended Trump's desire to bar transgender people from the military. That triggered debate about whether politics should play a role in how administration officials are treated in public. Several other Trump administration officials, including Homeland Security Secretary Kirstjen Nielsen, were confronted in public around that time amid fury over an administration policy that led to an increase in the number of migrant children being separated from their parents after crossing the border illegally. View comments |
UPDATE 3-Photo of drowned migrants triggers fight over Trump asylum clampdown
(Adds new body recovered in Eagle Pass)
By Jaciel Rubio
MATAMOROS, Mexico, June 26 (Reuters) - A harrowing photo of a Salvadoran migrant and his young daughter who drowned in the Rio Grande at the U.S.-Mexico border became the focus on Wednesday of a U.S. political debate over President Donald Trump's asylum policies.
The picture of Oscar Alberto Martinez, 25, and his 24-month-old daughter Angie Valeria put a renewed focus on the plight of refugees and migrants who are mostly from Central America. The pair had travelled from El Salvador and were seeking asylum in the United States.
U.S. presidential candidate Bernie Sanders called the image "horrific" and said the president's migration clampdown made deaths more likely.
"Trump's policy of making it harder and harder to seek asylum - and separating families who do - is cruel, inhumane and leads to tragedies like this," he wrote on Twitter.
In turn, Trump blamed the Democrats, whom he said were blocking his government's attempts at closing "loopholes" in U.S. law that encourage migrants to apply for U.S. asylum.
"If they fixed the laws you wouldn't have that. People are coming up, they're running through the Rio Grande," he said, referring to the river known as the Rio Bravo in Mexico that forms a large part of the border between the two countries.
"They can change it very easily so people don't come up, and people won't get killed," Trump told reporters.
Record numbers of Central American migrants are reaching the United States this year despite a crackdown by Trump. Many flee their homes in Central America to escape poverty, drought and high levels of criminal violence, much of it carried out by street gangs.
U.S. border patrol agents have apprehended 664,000 people along the southern border so far this year, a 144 percent increase from last year, said Brian Hastings, chief of law enforcement operations for the U.S. Border Patrol. "The system is overwhelmed," he said.
Deaths are not uncommon, with travelers exposed to violence from criminals as well as the treacherous waters of the Rio Grande and desert heat. On Tuesday, U.S. Border Patrol agents near Eagle Pass, Texas recovered a man's body from another stretch of the river. Several more have drowned this year.
Border Patrol reported 283 migrant fatalities on the border in 2018. Activists say the number is higher as the remains of many migrants who die in rugged stretches of wilderness along the 1,950-mile (3,138-km) long border are never found.
To manage asylum flows, the United States has in recent years implemented a system known as "metering" which puts daily limits on the number of asylum seekers processed at ports of entry, leading to weeks-long waiting lists in dangerous border towns.
The controls have contributed to growing numbers of migrants crossing the border illegally to hand themselves in to authorities and ask for asylum. Migrant rights activists say such limits on people's access to asylum can put them in harm's way, while driving migration underground and squeezing it into new routes.
Enrique Maciel, director of the migrant agency of the Mexican state of Tamaulipas, said the Martinez family had decided to cross the river after being told they needed to register for a waiting list to apply for asylum at the Matamoros-Brownsville port of entry.
Martinez' mother on Wednesday told Reuters she had urged her son not to leave, fearing danger would meet him on the long journey north.
The photo of Martinez and his toddler daughter -- face down in the mud on the river bank, with her arm draped around his neck -- has gone viral on social media around the world.
The Vatican newspaper, L'Osservatore Romano, put the picture on its front page and Pope Francis expressed "immense sadness."
"The pope is profoundly saddened by their death, and is praying for them and for all migrants who have lost their lives while seeking to flee war and misery," Vatican spokesman Alessandro Gisotti said.
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The United Nations refugee agency UNHCR compared the photograph to the picture of three-year-old Syrian refugee Aylan Kurdi who drowned in the Mediterranean and whose body washed up on a beach in Turkey in 2015.
Kurdi was part of a Syrian refugee wave that caused panic in Europe, prompting Turkey to effectively shut down the migrant route through Greece at the European Union's behest.
As with the photograph of Kurdi, the image of the drowned father and daughter has triggered debate over the ethics of publishing such shocking photographs, with some commentators arguing that Western media was less likely to publish similar images of European or U.S. citizens.
Robin Reineke, co-founder and director of the Tucson, Arizona-based Colibri Center for Human Rights said the use of such pictures did little or nothing to halt the deaths occurring daily on the border.
Others said the use of the picture of Martinez and his daughter was justified because it made people face up to migrant deaths on the U.S. southern border.
"This is very sad, but it's really necessary," said Rafael Larraenza, founder and director of San Diego, California-based volunteer group Angeles del Desierto (The Desert Angels), which carries out search and rescue operations for missing migrants.
"This happens every day along the border from California to Texas, at least one or two people a day," Larraenza said.
Many countries have erected barriers to migrants, and the European Union and the United States have pressured their neighbours to cut the numbers of people trying to make the journey.
Trump threatened Mexico with trade tariffs until it agreed to help lower the number of mostly Central American migrants reaching the United States, using increased enforcement along with and expanded program of asylum containment.
With more immigrants reaching the U.S.-Mexican border than at any time in the past decade, authorities in both countries have struggled to provide adequate care in detention, with immigration lawyers citing children being held for weeks without adequate food or hygiene in U.S. border facilities.
The U.S. Customs and Border Protection agency said on Tuesday its acting commissioner was resigning.
The U.S. Senate on Wednesday approved a $4.6 billion bill to address the migrant surge at the border with Mexico, setting up a negotiation with the House of Representatives and President Donald Trump over the funds and how they should be spent.
U.N. High Commissioner for Refugees Filippo Grandi said Martinez and his daughter had lost their lives because they could not get the protection they were entitled to under international law.
"The deaths of Oscar and Valeria represent a failure to address the violence and desperation pushing people to take journeys of danger for the prospect of a life in safety and dignity," he said in the statement. (Reporting by Jaciel Rubios in Matamoros; Additional reporting by Andrew Hay in Taos, New Mexico, Tom Miles in Geneva, Philip Pullella in the Vatican, and Steve Holland and Andy Sullivan in Washington; Writing by Frank Jack Daniel Editing by Alistair Bell and Sandra Maler) |
A Look At The Intrinsic Value Of Sogou Inc. (NYSE:SOGO)
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How far off is Sogou Inc. (NYSE:SOGO) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
See our latest analysis for Sogou
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF ($, Millions)", "2019": "$96.00", "2020": "$163.50", "2021": "$144.00", "2022": "$132.39", "2023": "$126.00", "2024": "$122.77", "2025": "$121.58", "2026": "$121.75", "2027": "$122.86", "2028": "$124.65"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x1", "2020": "Analyst x2", "2021": "Analyst x1", "2022": "Est @ -8.06%", "2023": "Est @ -4.83%", "2024": "Est @ -2.56%", "2025": "Est @ -0.97%", "2026": "Est @ 0.14%", "2027": "Est @ 0.92%", "2028": "Est @ 1.46%"}, {"": "Present Value ($, Millions) Discounted @ 8.87%", "2019": "$88.18", "2020": "$137.96", "2021": "$111.61", "2022": "$94.25", "2023": "$82.40", "2024": "$73.75", "2025": "$67.08", "2026": "$61.71", "2027": "$57.20", "2028": "$53.31"}]
Present Value of 10-year Cash Flow (PVCF)= $827.44m
"Est" = FCF growth rate estimated by Simply Wall St
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.9%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$125m × (1 + 2.7%) ÷ (8.9% – 2.7%) = US$2.1b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$2.1b ÷ ( 1 + 8.9%)10= $892.60m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $1.72b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $4.4. Compared to the current share price of $4.16, the company appears about fair value at a 5.4% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Sogou as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.9%, which is based on a levered beta of 1.029. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Sogou, I've compiled three important aspects you should look at:
1. Financial Health: Does SOGO have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does SOGO's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of SOGO? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
From 'Prada to nada' and back: Has America really recovered from the Great Recession?
This is the third story in a series about Americans' financial health, based on a survey provided by the FINRA Investor Education Foundation, a nonprofit dedicated to financial education and empowerment.
Note: A previous version of the graphic on paying bills transposed the percentages under education.
Are you better off than you were when the Great Recession ended 10 years ago?
For many Americans, the answer is yes.
Half have no difficulty covering bills, up from just over third in 2009. Only a fifth experienced an unexpected drop in income in the last year, down from two-fifths. And the share of Americans satisfied with their personal finances doubled in the last decade, according to the2018 Financial Capability survey from the FINRA Investor Education Foundation, a not-for-profit that focuses on financial education and empowerment.
The advances, though, have been uneven. Older, college educated, white and higher-earning individuals have recovered the best, while the financial fortunes of younger people, lower earners, those with no college degree and African-Americans improved more slowly.
Financial quiz:Are you smarter about money than most Americans? Here's how you can find out.
Money snapshot:The economy is booming. But are Americans' finances healthier because of it?
“We’ve seen an impressive recovery on important measures, but certain groups continue to struggle,” says Gerri Walsh, senior vice president of investor education at FINRA. “We’re entering into a new normal where even as the economy improves, financial capability is not keeping pace for all Americans.”
As many economists predict a new recession starting sometime next year, it’s important to understand how far Americans have come in the last decade during what will be the longest economic expansion next month. Equally important, how prepared are they for another recession?
In 2009, it began to fall apart for Michelle and Michael Phillips of Dingman’s Ferry, Pennsylvania. That year, Michael, who worked on the wholesale counter at an auto supply store, suffered a trio of setbacks.
To cut costs, his boss took away the company car Michael used, increased his monthly share of health insurance premiums and slashed his holiday bonus – typically one month’s pay – to only a week’s pay going into 2010.
Within six months, the couple took in $1,000 less each month, a common occurrence then. Two in five American reported an unexpected income drop in FINRA’s 2009 survey.
“It was: ‘Just put it on the Discover card, just put it on the Amex. We’ll figure it out later,’” says Michelle, who worked at a hair salon where business also slowed.
That wasn’t atypical, says Kim Cole, a credit counselor for Navicore Solutions who helped clients then and now. “We were seeing many people who had been financially stable become dependent on credit cards,” she says. “With such a drop in income, they couldn’t support their monthly bills.”
By May, the Phillipses owed $18,000 in credit card debt. Michelle’s emergency hysterectomy left them with another $38,000 in medical bills. They settled some but were sued for one balance.
“We did everything humanly possible to stay in our life,” Michelle, now 48, says. “Everything we could unload, we did.”
They got rid of the landline and cable, sold furniture, a pool table and a 1967 Camaro RS that Michael was restoring. They auctioned off jewelry and motorcycle parts on eBay.
They filed for bankruptcy in 2012 and held onto their house for two more years when the mortgage payment became too much. A modification saved them only $40 a month, not enough.
In 2015, the lender offered to refinance for $197,000 when they owed $138,000. They said no and moved into a rental with their adult son who helped with the rent. In January 2016, the lender sold Michelle and Michael's house for only $119,000.
“This is the part that makes me cry,” Michelle says. “They wouldn’t let me stay in my house for $119,000, but they would give it to a complete stranger for that.”
That same year, Michael lost his job. That was the bottom for the couple.
Fast forward to today. Michael has a new job, albeit making less than he did. And last month, cashing in a mutual fund, the Phillipses closed on a smaller, more affordable home.
There are no vacations. Instead, they ride their motorcycles on sunny afternoons. Retirement is a non-starter.
Only Michael has health insurance. It’s too expensive to add Michelle. But she’s been able to monitor her health in other ways. More than half of those without insurance go without a medical service, according to FINRA’s latest survey.
Michelle pays $20 for medical consultations over the phone or online and visits a cardiologist once a year for $88 in cash to check on a hereditary heart problem.
“Whatever it takes not to spend money,” Michelle says. “That is what the recession has given me.”
By the time 2010 rolled around, Warren Austin, then 49 and now living in Pennsylvania, thought he had weathered the recession with his job intact.
He worked at Chartis, a subsidiary of the troubled American International Group, or AIG, which two years before survived only because of a $182 billion taxpayer-funded bailout, making it one of the poster companies of the Great Recession.
“I thought: ‘The worst is over. Everything will be OK,’” he says.
But then he was snagged in layoffs at the end of 2010. He thought he could find another job within four months – six months, tops. Almost a decade later, he hasn’t found a permanent position – a hallmark of the Great Recession: prolonged unemployment.
“To be unemployed for this long, I can’t fathom this,” he says. “It’s really a bad blow to my ego.”
He made a comfortable $58,600 before he lost his job. And with his wife’s income, they were solidly middle class. He estimates he’s lost as much as $600,000 in income in the last nine years.
“The state of the economy affected everyone. It was across the board,” says Lisa Frankenberger, a credit counselor in Buffalo. “It even trickled down to people who were successful.”
Austin tapped his $35,000 in savings to pay his mortgage, uncommon at the time. Just over a third of Americans had a rainy day fund to cover three months of expenses in 2009, according to FINRA. That’s risen to just under half today.
He applied for a thousand jobs and got his master’s degree to improve his odds, spending $17,000 out of pocket. He’s still looking.
“I apply for one to two jobs every day,” he says.
Last year after his wife retired from her job with a pension, they sold their house in Garwood, New Jersey, and moved to Pennsylvania where property taxes, insurance and utilities were cheaper. They were able to buy another house outright with the sale proceeds.
He depends on his wife’s health insurance through her old job, but that runs out this year. “I’m thinking about going without health insurance. It’s so damn expensive,” he says.
Austin is also working on getting his real estate license. If he can get a job, he figures he could work another 10 to 20 years to save up enough to retire himself. Otherwise, he may take Social Security early.
“I grew up in a household where nothing was given out. When I asked for an allowance when I was 8, my father growled at me and told me to get a job. I delivered newspapers,” he says. “I’m supposed to do better than my father, but I’m doing worse.”
Tami Chavez was happily married with two children in 2009, living an upper-middle-class life in Omaha, Nebraska. Her then-husband was a successful immigration lawyer. They had three luxury cars and a Toyota Camry for her son. They owned 13 properties: a second home in Florida, condos and land in New Mexico and rentals in Phoenix.
All seemed good.
“I knew we potentially had a financial house of cards,” Chavez, 57, says now. “I remember looking at my personal rollover statement, and there was no money in it. I remember thinking: ‘Where is my retirement money?’”
What she didn’t know was that her husband was draining retirement and college accounts to stay afloat as the real estate investments faltered, especially those in the once-hot markets of Florida and Arizona.
“All of sudden it was, boom, all foreclosures,” says Anissa Schultz, a credit counselor who worked in Arizona at the time. “When people called us, it wasn’t: ‘I’m having a hard time.’ It was: ‘I’m about to lose my house.’”
That’s what happened to Chavez after her husband walked out in September 2009. A stay-at-home mother out of the workforce for 14 years, she ended up losing the Arizona homes to foreclosure and the rest, including her own home, were taken back by the bank as deed in lieu arrangements.
“It was shell-shocking,” says Chavez. “That’s my Prada-to-nada story.”
She held an estate sale in her home and lived on the things she sold. She and her children moved into a stranger’s basement for six months. She filed for bankruptcy.
Somewhat ironically, she got a job as a registered investment adviser, and 10 years later, she’s in a relationship and may someday buy another house. Retirement is iffier. She has a family farm that could help fund her golden years.
“It’s scary,” says Chavez. “I’m one of those retirement statistics.”
Chavez – along with Austin and the Phillipses – point to another looming problem in this country: retirement. The share of Americans saving for retirement hasn't budged since 2009, and half worry they will run out of retirement savings, according to FINRA's stats.
It may be starting to happen.
“We’ve seen more older Americans depend on credit cards for health care, medication and groceries. They don’t have substantial retirement savings,” says Cole. “It’s causing a new crisis.”
For the younger generation, the overwhelming problem is student debt. Almost half with student loans worry they won’t be able to pay them back. A similar share wish they had gone to a less expensive school. Chavez’s own son quit medical school three weeks in because he couldn’t stomach the $300,000 in student loans he’d have to pay back.
“He couldn’t sleep at night,” she says.
There are other concerns that popped up in FINRA’s survey. More than a third say they're carrying too much debt and less than half have socked away three months in emergency savings. The share of Americans spending less than their incomes hasn’t increased since the recession ended, despite the robust economy.
What happens when things turn sour as many predict?
“What we do know,” FINRA’s Walsh says, “is that many Americans are not financially positioned to handle another recession."
This article originally appeared on USA TODAY:From 'Prada to nada' and back: Has America really recovered from the Great Recession? |
Suddenly Getting Chin Hair? This Might Be Why
Photo credit: Peopleimages - Getty Images From Women's Health You're up close and personal with a magnifying mirror doing your weekly eyebrow cleanup when you start surveying the rest of your face. You spot some surprise little visitors on your chin. Sure, you can pluck 'em. But now you're thinking, Should I be worried? Does this happen to other people? Will it come back? Unlike Kanye, I'm not going to let you finish but rather just go right ahead and interrupt what could turn into a very unnecessary worry spiral (you're welcome). Growing the occasional chin hair or two is fairly common in women and shouldn't warrant concern. First off, all women have some amount of chin hair in the form of thin, faint strands that you probably ID as "peach fuzz." But you may also notice random dark, coarse chin hairs from time to time, and these are also totally normal. Certain hormones-specifically androgen or other "male hormones" like testosterone-can cause you to grow some thicker and darker hairs here and there if they ever get out of balance. Women also make these hormones, albeit at lower levels than men. Your hormones may get out of whack due to factors such as pregnancy, menstruation, menopause, among many other reasons. (And yes, you can pluck/wax/leave it be/do whatever it is you like to do with facial hair-totally a personal choice!) But if you start to notice excessive facial hair growth that's dark and coarse, it might mean you have abnormally high levels of androgen hormones, or an increased sensitivity in your hair follicles even to normal levels of androgen hormones, explains Minisha Sood , MD, endocrinologist in New York City. This is a condition known as hirsutism, per U.S. National Library of Medicine (NLM). Sometimes, you just don't know the cause behind hirsutism. In other cases, hirsutism is related to an underlying health issue. The conditions here are some pretty well-known culprits that often cause facial hair to go rogue. Story continues 1. Polycystic ovary syndrome (PCOS) Affecting about 10 percent of women of childbearing age, PCOS is characterized by cysts that grow on the ovaries, which can prevent eggs from maturing and often cause fertility issues, according to the Office of Women's Health (OWH). PCOS can also impact your hormone levels, leading to weight gain, irregular periods , acne, and, yup, increased hair growth. People with PCOS often notice excessive hair growth specifically in what Dr. Sood refers to as "androgen-dependent areas," like the chin. If you have PCOS , you might also experience coarse and dark hair on the abdomen, upper thighs, low back, and butt. Sound familiar? Your best bet is to see an endocrinologist to determine what's up. 2. Ovarian or adrenal tumors While we don't know their exact cause, growths or masses on your ovaries can actually amp up your body's production of those facial hair-causing androgen hormones. These tumors can also lead you to experience pelvic pain or pressure or irregular vaginal bleeding. If you have all or some of these symptoms, it's time to visit your doc, who can issue the appropriate medical scans to determine if there's an ovarian growth in your body that's to blame for overproduction of testosterone. Don't worry: Most of these growths are benign, although they can be malignant (meaning cancerous) in rare cases. Growths can also take up camp on your adrenal glands, which are small glands located on top of each kidney, according to Dr. Sood. Many of these tumors are asymptomatic, but if they are in fact producing excess hormones, you may experience other symptoms such as unexplained weight gain, easy bruising, acne, high blood pressure, high blood glucose (sugar) levels, changes in body odor, among other signs, Dr. Sood says. See your doc if you're having any of these symptoms, so she can do a proper evaluation to determine what's going on. In some cases, surgery may be needed to remove an ovarian or adrenal tumor (even if it's benign). But on the bright side, the growth likely won't return once it's removed, according to NLM . 3. Cushing's syndrome This hormonal disorder, a.k.a hypercortisolism, can be the result of long-term exposure to high levels of cortisol, a hormone produced by your adrenal gland, according to NLM . Cushing's syndrome can also be caused by taking corticosteroids (a type of inflammation-reducing steroid) for a prolonged period, or by an adrenal tumor. Dr. Sood recommends talking to your endocrinologist for an adrenal evaluation, which would include imaging and blood and urine testing to check for abnormal levels of the specific hormones made by the adrenal glands. 4 . Insulin resistance or diabetes When you're insulin resistant, your body doesn't respond properly to insulin-a hormone that helps turn sugar into energy, according to NLM . So instead, your blood sugar stays elevated, which can lead to prediabetes and diabetes. Insulin resistance can also raise the body's levels of testosterone, and thus the amount of facial and body hair you grow as well, Dr. Sood explains. How the heck do you get a sense of whether this is you? Being increasingly thirsty, urinating more frequently, and feeling weak and fatigued are all ways your body tries to tell you it's experiencing issues related to insulin resistance. Your doc can order blood tests to determine if you have, say, diabetes . Once your body's insulin resistance is in control, there's a good chance your hair growth will return to normal. 5. Pregnancy As you probably know, your hormones go a little haywire when you're pregnant. One shift that occurs is a rise in testosterone levels. But wait-estrogen levels also go up during pregnancy, right? Yup. So most women don't experience symptoms such as unwanted hair growth despite the turned-up male hormones, Dr. Sood says. But (there's always a "but," isn't there?) this isn't the case for *all* women. It's pretty hard to predict exactly what pregnancy-related hormonal changes will bring on, so never shy away from calling your ob-gyn because, per Dr. Sood, a simple blood test can help determine if your chin or facial hair issue is just another bodily change from pregnancy hormones, or something else that needs to be addressed. 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The new iPad Air just got a big discount on Amazon, but you should buy a 6th-gen iPad for $249 instead
Click here to read the full article. Apple’s new iPad Air is fantastic. It’s slim, it’s fast, it’s powerful, and it has all the great features you want out of your iPad. It also just got its first big discount on Amazon, so pricing right now starts at $469 instead of $500. The Air is a pretty terrific value at that price, but most people would be far better served getting a new 6th-generation iPad instead . It’s also on sale right now with prices starting at just $249, which is an absolute steal. Yes, it’s a tiny bit slower than the iPad Air and the screen is marginally smaller at 9.7 inches instead of 10.5 inches. But for playing with apps, streaming videos, surfing the web, and everything else that 99% of people do with their iPads, the benefits of the Air don’t warrant the much steeper price tag. iPad Air 10.5-Inch Retina Display with True Tone and wide Color A12 Bionic chip Touch ID Fingerprint Sensor and Apple Pay 8MP back camera, 7MP FaceTime HD Front camera Stereo speakers 802. 11AC Wi-Fi Up to 10 hours of battery life Lightning Connector for charging and accessories IOS 12 with group FaceTime, shared augmented reality experiences, screen time, and more iPad (6th-Generation) 9.7-inch Retina display A10 Fusion chip Touch ID fingerprint sensor 8MP back camera and 1.2MP FaceTime HD front camera Two speaker audio 802.11ac Wi-Fi Up to 10 hours of battery life Lightning connector for charging and accessories iOS 12 with Group FaceTime, shared augmented reality experiences, Screen Time, and more Related Stories: Philips Hue's LightStrip Plus is on sale for $70, but this $20 LED light strip is just as good It might as well already be Prime Day now that Apple Watches are back down to $199 Brilliant $18 night light glows from under your bed anytime you get up at night BGR Top Deals: Get an ASUS 2-in-1 touchscreen Chromebook for $279 on Amazon, today only This top-rated fast wireless charger is somehow only $6.99 right now on Amazon Story continues Trending Right Now: No, it’s not just you: Half of the internet is down, including Google, Amazon, and Reddit Apple was right again: Here’s why a Galaxy Note 10 without a microSD slot isn’t a big deal Fresh Pixel 4 leak gives us another look at Google’s unreleased flagship See the original version of this article on BGR.com |
Does Southern National Bancorp of Virginia, Inc.'s (NASDAQ:SONA) P/E Ratio Signal A Buying Opportunity?
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). To keep it practical, we'll show how Southern National Bancorp of Virginia, Inc.'s (NASDAQ:SONA) P/E ratio could help you assess the value on offer. Looking at earnings over the last twelve months,Southern National Bancorp of Virginia has a P/E ratio of 11.14. That means that at current prices, buyers pay $11.14 for every $1 in trailing yearly profits.
View our latest analysis for Southern National Bancorp of Virginia
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Southern National Bancorp of Virginia:
P/E of 11.14 = $14.58 ÷ $1.31 (Based on the year to March 2019.)
A higher P/E ratio means that investors are payinga higher pricefor each $1 of company earnings. 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.
Earnings growth rates have a big influence on P/E ratios. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. 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.
Southern National Bancorp of Virginia's earnings made like a rocket, taking off 223% last year. The cherry on top is that the five year growth rate was an impressive 19% per year. With that kind of growth rate we would generally expect a high P/E ratio.
We can get an indication of market expectations by looking at the P/E ratio. The image below shows that Southern National Bancorp of Virginia has a lower P/E than the average (12.6) P/E for companies in the banks industry.
Southern National Bancorp of Virginia's P/E tells us that market participants think it will not fare as well as its peers in the same industry. Many investors like to buy stocks when the market is pessimistic about their prospects. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued.
The 'Price' in P/E reflects the market capitalization of the company. So it won't reflect the advantage of cash, or disadvantage of debt. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
Southern National Bancorp of Virginia's net debt equates to 50% of its market capitalization. You'd want to be aware of this fact, but it doesn't bother us.
Southern National Bancorp of Virginia's P/E is 11.1 which is below average (17.8) in the US market. The company hasn't stretched its balance sheet, and earnings growth was good last year. If it continues to grow, then the current low P/E may prove to be unjustified.
When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold.
But note:Southern National Bancorp of Virginia 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. |
Need To Know: DexCom, Inc. (NASDAQ:DXCM) Insiders Have Been Selling Shares
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sellDexCom, Inc.(NASDAQ:DXCM), you may well want to know whether insiders have been buying or selling.
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for DexCom
The Executive Chairman, Kevin Sayer, made the biggest insider sale in the last 12 months. That single transaction was for US$3.8m worth of shares at a price of US$143 each. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$144. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 12% of Kevin Sayer's holding.
We note that in the last year insiders divested 176k shares for a total of US$25m. In the last year DexCom insiders didn't buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
The last quarter saw substantial insider selling of DexCom shares. In total, Donald Abbey sold US$1.1m 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.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. DexCom insiders own 1.3% of the company, currently worth about US$170m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
An insider hasn't bought DexCom stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course,the future is what matters most. So if you are interested in DexCom, you should check out thisfreereport on analyst forecasts for the company.
But note:DexCom 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. |
Bitcoin Surge Pushes Weekly Gain to 40%, and It's Only Wednesday
(Bloomberg) -- Bitcoin’s furious run is starting to look more and more like it did at the height of crypto-mania two years ago.
The virtual currency surged as much as 18% on Wednesday, topping $13,000 for the first time since January 2018, and bringing its gain since late Friday to almost 40%. The digital asset has climbed more than 200% since December, prompting many investors to ignore the 74% drop last year that followed the parabolic 1,400% surge in 2017.
“While I understand the excitement for the community that a company like Facebook, backed by other big names, has launched its own coin, this just feels a lot like last time and we all know what happened then,” Craig Erlam, senior market analyst at Oanda Corp. in London wrote in a note. “Perhaps this time the drop off won’t be so bad as we are seeing more mainstream adoption but it may be naive to think that it can’t come crashing down again.”
Its relative strength index, a gauge of momentum, is now within a hair’s breadth of the level when the cryptocurrency peaked around $19,500 in 2017.
Accelerating gains have raised the stakes for traders as they try to gauge whether this month’s rally has more staying power than the bubble that ended with a $700 billion crypto wipeout in 2018. While bulls have cheered signs of growing interest in virtual currencies from major companies like Facebook Inc. and JPMorgan Chase & Co., skeptics say it’s unclear how those initiatives will ultimately benefit Bitcoin and its peers.
A break above the $12,720 level “will allow for a complete retracement of the 2018 bear market,” according to John Kolovos, chief technical strategist at New York-based Macro Risk Advisors, though he noted in comments Tuesday that the rally was “turning more and more impulsive.”
The last time Bitcoin rose above $12,000 was in December 2017. It rallied further, eventually reaching as high as $19,511 later in the month, but the surge was followed by a precipitous fall that saw it drop below $6,000 by February. All in all, in December 2017 and January 2018, Bitcoin spent about six weeks above $12,000.
(Updates prices. An earlier version corrected attribution in the sixth paragraph.)
--With assistance from Michael Patterson and Cormac Mullen.
To contact the reporter on this story: Joanna Ossinger in Singapore at jossinger@bloomberg.net
To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Adam Haigh, Dave Liedtka
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Israel seeks Swiss help in overseas tax crackdown
By John Miller and Oliver Hirt
ZURICH (Reuters) - Israel's finance ministry has sought help from Switzerland in identifying Israelis it believes have undeclared assets at Union Bancaire Privee (UBP) and Bank Julius Baer, Swiss government documents show.
UBP said on Wednesday it is cooperating fully with authorities, while the Swiss Federal Tax Administration is seeking contact addresses for the account holders and giving them 20-days to provide the data, in advance of deciding whether to assist Israel in its hunt for untaxed money.
Thousands of Israelis have disclosed foreign accounts containing billions of dollars under a government amnesty programme in recent years, as they sought to avoid prosecution in a crackdown on unreported capital.
Untaxed money in accounts in Switzerland has been a target for foreign governments for years, with U.S. authorities successfully securing billions of dollars in settlements and penalties from Swiss banks since 2008.
The documents outlining actions involving UBP, published in the Swiss Federal Register on Tuesday, outlines the Israeli Finance Ministry's efforts to identify Israelis with accounts at the private bank between 2014 and 2017 who it alleges have failed to provide sufficient evidence of tax compliance.
A similar document addressing accounts at Bank Julius Baer, which declined to comment, was made public earlier this month.
The Federal Register documents show that in both instances the private banks asked account holders with an Israeli address to document their tax compliance. Those who did not show sufficient evidence were told their business relationship with the bank would be terminated.
"UBP is one of the banks that have received a request from the Swiss tax authorities acting on a demand from the Israeli tax authorities, and has taken the necessary measures to abide by this request," the Geneva-based private bank said.
"UBP has actively promoted Israel's tax amnesty programs," the bank said, adding it had also done so for similar disclosure programs in Mexico, Brazil and Turkey.
'FISHING EXPEDITION'
Switzerland has forged agreements with numerous other nations to automatically exchange bank information amid scrutiny of its role in managing offshore wealth.
Swiss banks cannot deliver account information directly to other governments, only to the Swiss tax authorities, who may then transfer it to a requesting tax agency.
Precisely what information Swiss banks must disclose to other governments remains unsettled.
Switzerland's highest court is still to decide on France's demand for UBS, the largest Swiss bank and the world's largest wealth manager, to hand over sensitive customer data, or whether to dismiss the request as a "fishing expedition".
A French court found UBS guilty of illegally soliciting clients and money laundering in February, although UBS is fighting the 4.5 billion euros ($5.11 billion) verdict.
($1 = 0.8804 euros)
(Reporting by John Miller; Editing by Alexander Smith) |
French lawsuit accuses Google of violating EU privacy rules
PARIS (AP) — A leading French consumer group filed a class-action lawsuit Wednesday accusing Google of violating the European Union's landmark 2018 privacy rules. In its filing in a Paris administrative court, the consumer group UFC Que Choisir is seeking 1,000 euros ($1,135) in damages for each of the 200 Google users involved so far. It's among the first cases challenging tech giants over their application of the EU's new rules, known as the General Data Protection Regulation or GDPR. Google defended its practices. In a statement, the company said: "We have high standards for transparency and consent based on both guidance from regulators and robust user testing, and we provide helpful information and easy-to-use privacy controls in our products." The complaint filed in Paris names Google Ireland and Google LLC. The consumer group says Google's confidentiality rules are more than 1,000 lines long, and do not meet GDPR requirements to make it easy for users to block Google from things like tracking user's location or sending targeted ads. Amid public complaints and concerns about privacy — especially in Europe — Google recently streamlined the way it asks users for consent, and announced plans to allow users to automatically delete location history. France's privacy watchdog CNIL ordered Google earlier this year to pay a fine of 50 million euros based on a similar complaint, which helped lead to the class-action litigation. Google is appealing the CNIL decision. |
Is Momo a Buy?
The good news in sizing upMomo(NASDAQ: MOMO)as a potential investment is that it's cheap. Despite rallying more than 40% so far this year, the stock is trading at less than 12 times this year's projected earnings. The Chinese social video and online dating specialist is growing at a faster clip than its earnings multiple, making this stock appealing to both growth and value investors.
The cherry on top in the valuation argument is that Momo has historically exceeded Wall Street expectations. It has breezed through analyst profit targets every single quarter for more than a year. Put another way, it's probably trading for less than its current multiple of 11.7 times this year's bottom-line estimate.
Before you rush out and place your buy order, know that the "bad news" segment here is longer and more nuanced than the bullish case. You didn't think a piece would start by offering up the good news if there wasn't a pessimist sitting at the low end of the seesaw, did you?
Image source: Momo.
The first part of the cautionary tale when it comes to Momo is that running social networking and dating sites in China isn't easy. The world's most populous nation has some pretty tight clamps when it comes to censoring steamy visuals or politically provocative statements. Then we get to the pitfalls of live video broadcasting, the catalyst for Momo's heady growth over the past couple of years and now up to 72% of its revenue mix.
Even U.S. companies havecome under firefor the racy nature of live streaming, a platform that is difficult to police until after the boundaries have been crossed. Momo is no stranger to regulatory oversight. It had to remove its Tantan Tinder-like online dating app from Chinese app stores in late April, a move that keeps current users looking for matches but blocks new users from joining. The once-juicy in-app payments revenue stream for Tantan has also dried up in this regulatory environment. News feed posts for both Tantan and Momo's namesake site werevoluntarily suspendedin mid-May for a month-long review.
Momo's path won't be smooth. There will always be potholes for it to steer around and roadblocks that will force it to slam on the brakes. Investors seem to think that the road trip is still worth it for now, given the stock's strong 2019 gain despite its springtime setbacks.
Net revenue rose 35% throughthe first three monthsof this year, and despite the challenges that have presented themselves during the second quarter, which ends this week, Momo's guidance from last month was still calling for respectable 27% to 30% top-line growth for the period. Analysts see revenue and adjusted earnings rising 28% and 26%, respectively, for all of 2019.
Investors willing to stomach the risks that come with owning a heavily regulated online social platform will be rewarded if things merely stay the course. The stock is too cheap on an earnings basis for it not to pay off as long as it can keep running its business within the tight parameters presented in China. Momo is a very risky buy, but it's a buy nonetheless.
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Rick Munarrizhas no position in any of the stocks mentioned. The Motley Fool recommends Momo. The Motley Fool has adisclosure policy. |
Did Changing Sentiment Drive SunOpta's (TSE:SOY) Share Price Down A Painful 72%?
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Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We don't wish catastrophic capital loss on anyone. Imagine if you heldSunOpta Inc.(TSE:SOY) for half a decade as the share price tanked 72%. And we doubt long term believers are the only worried holders, since the stock price has declined 62% over the last twelve months. Even worse, it's down 25% in about a month, which isn't fun at all.
View our latest analysis for SunOpta
Because SunOpta is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over five years, SunOpta grew its revenue at 3.1% per year. That's far from impressive given all the money it is losing. Nonetheless, it's fair to say the rapidly declining share price (down 23%, compound, over five years) suggests the market is very disappointed with this level of growth. We'd be pretty cautious about this one, although the sell-off may be too severe. A company like this generally needs to produce profits before it can find favour with new investors.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Thisfreereport showing analyst forecastsshould help you form a view on SunOpta
While the broader market gained around 1.2% in the last year, SunOpta shareholders lost 62%. 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 23% 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. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.You can find out about the insider purchases of SunOpta by clicking this link.
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Do Institutions Own SunOpta Inc. (TSE:SOY) Shares?
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A look at the shareholders of SunOpta Inc. (TSE:SOY) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
SunOpta is not a large company by global standards. It has a market capitalization of CA$364m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about SOY.
See our latest analysis for SunOpta
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that SunOpta does have institutional investors; and they hold 58% of the stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of SunOpta, (below). Of course, keep in mind that there are other factors to consider, too.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Our data indicates that hedge funds own 27% of SunOpta. 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
I can report that insiders do own shares in SunOpta Inc.. It has a market capitalization of just CA$364m, and insiders have CA$9.3m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checkingif those insiders have been selling.
With a 12% ownership, the general public have some degree of sway over SOY. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
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. |
Some are in 'cages.' Others sleep on concrete. Sick, hungry migrant children aren't only just in notorious Texas facility
It's not just Texas: Migrant families, activists and attorneys said this week that the abuse of child migrants remains widespread across the U.S. |
Canada and Mexico may be open to tweaking USMCA - U.S. Democrat
By Jonas Ekblom
WASHINGTON D.C., June 26 (Reuters) - Canada and Mexico may be open to a limited renegotiation of aspects of the United States-Mexico-Canada free trade agreement to satisfy U.S. lawmakers' concerns, a top U.S. Democrat said on Wednesday, opening the door to its passage in the fall.
"There are alternatives, including strategically opening [the agreement] on specific items," said Earl Blumenauer, the Oregon Democrat who chairs the trade subcommittee of the House of Representatives Ways & Means Committee.
He said that the trade agreement could be modified to address specific concerns, but was skeptical about using so-called side agreements, which he said had proven problematic in the current trade agreement among the three nations.
Mexico this month became the first of the countries to ratify the trade deal and Canada is pressing ahead to follow suit. U.S. Democrats have threatened to block the process until their concerns over labor and environmental provisions are met.
Blumenauer said that he was "troubled by the drive-by tariff strategy of this administration," but was encouraged after a meeting with U.S. Trade Representative Robert Lighthizer and eight other House Democrats on Tuesday.
Blumenauer told an event hosted by the Washington International Trade Association any follow-up deal to NAFTA would have to include better protections for workers, tough enforcement and other improvements to win Democratic support.
He said there would be "no way" that would be possible before the August recess but that Congress would continue to work on it in autumn.
Next month, Blumenauer said he would lead a congressional delegation to Mexico to discuss the USMCA.
Democratic lawmakers and labor leaders rallied outside the U.S. Capitol on Tuesday to demand these changes, delivering petitions signed by nearly 400,000 people.
"The new NAFTA is not good enough yet," AFL-CIO president Richard Trumka told the rally and vowed not to support it "until it's worthy of the American people." (Reporting by Jonas Ekblom Editing by Marguerita Choy) |
What Kind Of Shareholder Appears On The SunOpta Inc.'s (TSE:SOY) Shareholder Register?
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If you want to know who really controls SunOpta Inc. (TSE:SOY), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.
SunOpta is a smaller company with a market capitalization of CA$364m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about SOY.
Check out our latest analysis for SunOpta
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that SunOpta does have institutional investors; and they hold 58% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of SunOpta, (below). Of course, keep in mind that there are other factors to consider, too.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Our data indicates that hedge funds own 27% of SunOpta. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
We can see that insiders own shares in SunOpta Inc.. As individuals, the insiders collectively own CA$9.3m worth of the CA$364m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checkingif those insiders have been selling.
With a 12% ownership, the general public have some degree of sway over SOY. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
It's always worth thinking about the different groups who own shares in a company. But to understand SunOpta better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
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. |
Three Things You Should Check Before Buying Duke Energy Corporation (NYSE:DUK) For Its Dividend
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Today we'll take a closer look at Duke Energy Corporation (NYSE:DUK) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
With Duke Energy yielding 4.1% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. We'd guess that plenty of investors have purchased it for the income. Some simple research can reduce the risk of buying Duke Energy for its dividend - read on to learn more.
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. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Duke Energy paid out 90% of its profit as dividends, over the trailing twelve month period. Paying out a majority of its earnings limits the amount that can be reinvested in the business. This may indicate a commitment to paying a dividend, or a dearth of investment opportunities.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Unfortunately, while Duke Energy pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. It's positive to see that Duke Energy's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
As Duke Energy 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. Duke Energy has net debt of 5.78 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. Interest cover of less than 5x its interest expense is starting to become a concern for Duke Energy, and be aware that lenders may place additional restrictions on the company as well. Low interest cover and high debt can create problems right when the investor least needs them. We're generally reluctant to rely on the dividend of companies with these traits.
We update our data on Duke Energy 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. For the purpose of this article, we only scrutinise the last decade of Duke Energy's dividend 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 US$2.88 in 2009, compared to US$3.71 last year. Dividends per share have grown at approximately 2.6% per year over this time.
Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think is seriously impressive.
While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. Earnings have grown at around 2.4% a year for the past five years, which is better than seeing them shrink! Duke Energy's earnings per share have barely grown, which is not ideal - perhaps this is why the company pays out the majority of its earnings to shareholders. When a company prefers to pay out cash to its shareholders instead of reinvesting it, this can often say a lot about that company's dividend prospects.
We'd also point out that Duke Energy issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Duke Energy gets a pass on its dividend payout ratio, but it paid out virtually all of its cash flow as dividends. This may just be a one-off, but we'd keep an eye on this. Earnings growth has been limited, but we like that the dividend payments have been fairly consistent. Ultimately, Duke Energy 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 15 Duke Energy analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Foreign investment in Brexit-bound Britain slows again
LONDON (Reuters) - The number of new foreign investment projects in Britain has fallen for the second year in a row, according to government figures published on Wednesday that added to other signs of nervousness about Brexit among investors.
The number of new investments fell by 12 percent to 1,035 in the 2018/19 financial year and expansions of existing projects fell by 22 percent to 554, according to the data from the Department for International Trade.
That reduced the number of new jobs created by foreign investment during the year to 57,625, down 24 percent from 2017/18.
Last week, a survey by consultants EY showed long-term investor sentiment about Britain was at an all-time low as the country's Brexit crisis dragged on.
Britain's trade minister Liam Fox said the country remained the number-one destination for foreign direct investment (FDI) in Europe, accumulating more FDI stock than Germany and France combined.
The United States was the biggest source of FDI in Britain, followed by Germany and India in terms of the number of investments made.
Wednesday's data showed the number of mergers and acquisitions in Britain rose 8 percent to 193 in the 2018/19 financial year which ended in March.
(Writing by William Schomberg; editing by Stephen Addison) |
What Does Spectrum Brands Holdings, Inc.'s (NYSE:SPB) Balance Sheet Tell Us About It?
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Spectrum Brands Holdings, Inc. (NYSE:SPB) is a small-cap stock with a market capitalization of US$2.6b. 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 essential, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. Let's work through some financial health checks you may wish to consider if you're interested in this stock. However, potential investors would need to take a closer look, and I suggest youdig deeper yourself into SPB here.
SPB has shrunk its total debt levels in the last twelve months, from US$5.3b to US$2.4b , which includes long-term debt. With this reduction in debt, SPB currently has US$176m remaining in cash and short-term investments to keep the business going. Moving on, operating cash flow was negative over the last twelve months. As the purpose of this article is a high-level overview, I won’t be looking at this today, but you can take a look at some of SPB’soperating efficiency ratios such as ROA here.
With current liabilities at US$992m, it seems that the business has been able to meet these obligations given the level of current assets of US$1.6b, with a current ratio of 1.6x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Household Products companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
Since total debt levels exceed equity, SPB is a highly leveraged 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 test if SPB’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 SPB, the ratio of 1.26x 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 SPB’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. This is only a rough assessment of financial health, and I'm sure SPB has company-specific issues impacting its capital structure decisions. I suggest you continue to research Spectrum Brands Holdings to get a more holistic view of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SPB’s future growth? Take a look at ourfree research report of analyst consensusfor SPB’s outlook.
2. Valuation: What is SPB 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 SPB 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. |
Trump on Democratic debate: 'BORING'
By Steve Holland and Roberta Rampton WASHINGTON/ANCHORAGE, Alaska (Reuters) - President Donald Trump dismissed the first Democratic debate as "BORING" on Wednesday night and declared himself above the fray even as his campaign team kept a close eye on the battle to find a challenger to take on Trump in 2020. The two-hour debate between 10 Democratic rivals focused on policy issues ranging from Iran and immigration to college loans and healthcare. Several of the candidates attacked Trump, but he did not immediately respond to them individually, and tried to write it all off as a dull encounter. "BORING," Trump declared in a one-word tweet as he watched on television from his office aboard Air Force One on his way to Japan. After the presidential jet was refueled in a U.S. military base in Anchorage, Alaska, Trump sent another tweet to suggest his mind was on more than just his 2020 re-election campaign. "Just stopped in Alaska and said hello to our GREAT troops!" he said. But there was no doubt he was watching the proceedings closely. When a technical glitch delayed the start of the debate's second hour, Trump took aim at NBC News and MSNBC, who he accuses of treating him unfairly. "@NBCNews and @MSNBC should be ashamed of themselves for having such a horrible technical breakdown in the middle of the debate. Truly unprofessional and only worthy of a FAKE NEWS Organization, which they are!" he tweeted. Trump campaign officials were on hand in Miami for the debate and jumped into action, painting the Democratic candidates as taking socialist positions out of step with many Americans. "Perhaps it's fitting that Democrats held their first debate in Miami, Florida, where so many Latinos have fled the ravages of socialism and understand its devastating effect on society in a real and personal way," the Trump campaign said in a statement. Trump won Florida in 2016, but another close race is predicted in the state in 2020. Story continues Trump campaign manager Brad Parscale tweeted about the Democrats' answers on migration amid a festering crisis at the border with overcrowded facilities for asylum seekers and the country shaken by a photo of two migrants who had died crossing the Rio Grande River. "Now Democrats are for OPEN BORDERS! These debates are great, the American people can now see how far left the candidates are," Parscale tweeted. "If these policies were implemented millions of foreigners would flood our system and overwhelm public services. They are disconnected from reality!" Trumps campaign bought the masthead advertisement at the top of YouTube for Wednesday, showing two ads during the debate that urged visitors to text a phone number for campaign updates or to vote for a Trump rally in their state. On Facebook, the campaign ran a slew of paid ads that referenced the debate, asking people to take his tongue-in-cheek "Official Trump vs. Democrat Poll." The opinion poll, which required respondents to submit their contact details, posed questions such as "Who do you believe will ALWAYS put America FIRST?" with options such as President Trump or "A Sleazy Democrat." Trump, who has been a polarizing, name-calling and often chaotic president, is publicly expressing confidence about his re-election prospects in 2020. He heard chants of "four more years, four more years" in his appearance in Washington on Wednesday before the Faith and Freedom Coalition, an evangelical Christian group. Privately, some advisers worry about his chances in several states he won in 2016, such as Michigan, Pennsylvania and Wisconsin. There were some internal worries at the campaign in recent weeks that Parscale's job might be at risk after the leak of internal polling that showed Trump doing badly in several key states, a Trump adviser said. Trump ultimately fired two of his three pollsters, which appeared to calm those worries for now, the adviser told Reuters. (Reporting by Steve Holland and Roberta Rampton, additional reporting by Elizabeth Culliford; Editing by Colleen Jenkins and Jonathan Oatis) |
Heidi Klum and Tim Gunn take their new Amazon fashion series 'Making the Cut' to Paris
Heidi Klum and Tim Gunn headed to Paris to shoot the premiere episode of their new Amazon series Making the Cut on Tuesday. The tres chic duo were joined by series judges and guest judges Naomi Campbell, Nicole Richie, Carine Roitfeld, and Joseph Altuzarra, in the City of Lights where they shot the show’s first runway challenge. View this post on Instagram @timgunn and I are so excited to to be filming our new @amazonprimevideo show #MakingTheCut in Paris! ❤️🌟🗼🥐🍾🧀🍷🥖🇫🇷 #comingsoon #dreambig #amazon A post shared by Heidi Klum (@heidiklum) on Jun 26, 2019 at 6:08am PDT Making the Cut will bring together 12 entrepreneurs and designers from around the world where the winner has the chance to become the next global phenomenon. Looks from the series will be shoppable on Amazon, and top prize will take home $1 million to invest in their brand. Klum and Gunn were most famously paired on Project Runway where they shared hosting duties for 16 seasons. The duo declined to return for the show’s 17th season after signing on to host and co-produce Making the Cut in September. The fashion competition will be available on Amazon Prime Video in 2020. See more photos from Paris below: Jessica Forde/Amazon Studios Jessica Forde/Amazon Studios Related content: Karlie Kloss and Christian Siriano take over for Heidi Klum and Tim Gunn on Project Runway Project Runway gets some of its magic back: Magical Elves to produce new season on Bravo Heidi Klum, Tim Gunn quit Project Runway to launch Amazon series |
Emma Stone Injures Shoulder After Slipping on the Floor
Emma Stone is recovering after a recent fall, causing the Oscar-winning actress to injure her shoulder, ET has learned. A source tells ET that Stone, 30, "hurt her shoulder after slipping on a floor at a home." However, the source did not elaborate as to who's home she fell in. Although the injury requires the actress to wear a sling, the source says it will not affect her next acting project – portraying the despicable villain Cruella de Vil from 101 Dalmatians in her own standalone film, Cruella . “Production has not been halted as it has not started on her next project," the source says. "They are still in pre-production and she’ll begin once healed.” And the injury isn’t even keeping Stone from honoring her engagements, like appearing at Drag Queen Bingo, a charity event in West Hollywood, on Tuesday night. The La La Land actress happily posed alongside attendees, including a few drag queens, at the event, where she was clearly wearing a sling. View this post on Instagram Special #LegendaryBingo for Emma Stone!!!! @hamburgermarysweho #emmastone #roxywood #dragqueenbingo #tonight #hamburgermarysweho #transisbeautiful 💖 A post shared by Roxy Wood (@foxxyroxywood) on Jun 24, 2019 at 10:08pm PDT View this post on Instagram Had a blast calling bingo numbers with #EmmaStone, @zoeydeutch, @brielarson and @haimtheband for a great cause! #moviestars A post shared by Roz Drezfalez (@rozdrezfalez) on Jun 25, 2019 at 8:32am PDT Captain Marvel star and fellow Oscar winner Brie Larson was also on hand and she even helped pull balls during the game. Prior to her injury, Stone headed overseas to see one of the Spice Girls’ reunion shows at Wembley Stadium, where she got the chance to meet and pose for a selfie or two with Emma Bunton, aka Baby Spice . "When Emma met Emma #2become1," Bunton captioned the photos of them together. View this post on Instagram #aboutlastlastnight @hamburgermarysweho still can't believe this happened and SHE POSTED IT!!!! Thanks for the shout out @brielarson 😍❤😘💋 #captainmarvel #omg #roxywood #dragqueenbingo #LegendaryBingo #hamburgermarysweho #transisbeautiful 🥰 A post shared by Roxy Wood (@foxxyroxywood) on Jun 26, 2019 at 12:14am PDT View this post on Instagram When Emma met Emma. #2become1 A post shared by emmaleebunton (@emmaleebunton) on Jun 13, 2019 at 11:22am PDT Reporting by Brendon Geoffrion. Story continues RELATED CONTENT: Emma Stone Meets Emma Bunton During Spice Girls Reunion Tour BTS Is Making Their 'Saturday Night Live' Debut With Emma Stone 9 Hair Products Emma Stone's Hairstylist CAN'T Live Without: Brushes, Oils and More Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear |
Why AeroVironment Shares Are Moving Lower Today
Shares ofAeroVironment(NASDAQ: AVAV)dived more than 7% on Wednesday after the drone manufacturer reported fiscal fourth-quarter results and provided tepid guidance. Following the release, at least two Wall Street analysts lowered their price targets for the company.
After the bell Tuesday, AeroVironmentreported fiscal fourth-quarter revenue of $87.9 million, which beat expectations by $5 million but was down 23% year over year. Net income, at $5.7 million, was down nearly two-thirds from year-ago levels. The company earned $0.26 per share, matching expectations.
The company's service revenue was flat year over year, but product sales dropped by more than $25 million. The higher mix of service revenue also led to lower margins, down 3 percentage points to 42%.
AeroVironment's Puma AE drone. Image source: AeroVironment.
AeroVironment forecast fiscal 2020 adjusted EPS of $1.47 to $1.67, on revenue of $350 million to $370 million. Analysts are expecting $1.61 in EPS during the new fiscal year, on $351 million in revenue.
Following the results, Canaccord's Ken Herbert dropped his price target to $80 from $86, saying difficult year-over-year comps will continue to be a headwind for the shares. He did keep his buy rating, however.
Peter Arment at Baird dropped his price target to $65 from $83, and kept his neutral rating in place. Arment called the guidance "conservative," and worried about the unfavorable product mix driving revenue.
Drones are coming of age for both military and civilian applications, andAeroVironment offers a lot to be excited about. The issue is turning that potential into reality. Shares have lost about half their value since last September. But they're priced at more than 22 times earnings even after Wednesday's fall, so investors are still expecting great things.
There's still reason for optimism that the payoff on its potential will happen eventually, but Tuesday's results are an indication the company won't reach that destination anytime soon.
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Lou Whitemanhas no position in any of the stocks mentioned. The Motley Fool recommends AeroVironment. The Motley Fool has adisclosure policy. |
Spectrum Brands Holdings, Inc. (NYSE:SPB): Time For A Financial Health Check
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Mid-caps stocks, like Spectrum Brands Holdings, Inc. (NYSE:SPB) with a market capitalization of US$2.6b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. Today we will look at SPB’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 SPB here.
View our latest analysis for Spectrum Brands Holdings
SPB's debt levels have fallen from US$5.3b to US$2.4b over the last 12 months , which also accounts for long term debt. With this reduction in debt, SPB's cash and short-term investments stands at US$176m 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 assess some of SPB’soperating efficiency ratios such as ROA here.
With current liabilities at US$992m, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.6x. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Household Products companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With total debt exceeding equity, SPB is considered a highly levered company. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. We can check to see whether SPB 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 SPB's, case, the ratio of 1.26x suggests that interest is not strongly covered, which means that debtors may be less inclined to loan the company more money, reducing its headroom for growth through debt.
SPB’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. Keep in mind I haven't considered other factors such as how SPB has been performing in the past. You should continue to research Spectrum Brands Holdings to get a better picture of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SPB’s future growth? Take a look at ourfree research report of analyst consensusfor SPB’s outlook.
2. Valuation: What is SPB 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 SPB 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. |
Micron (MU) Stock Has a New Bull
Micron (MU) shareholders have had a bumpy 2019. One analyst, however, thinks the current stock price could offer new investors an opportunity to get into MU on the cheap.
This morning, Needham analystRajvindra Gillupgraded the stock from Hold to Buy and assigned this $37 stock a $50 target price. We did the math for you, and that's an upside of nearly 35%.
Micron’s May quarter was better than feared with sales of $4.79 billion above consensus estimates of $4.74 billion. Non-GAAP EPS was $1.05 exceeding consensus expectations of $0.82 driven by a tax benefit. Full year sales are now expected to be around $4.5 billion, compared to analysts expectations of $4.56 billion.
Gill commented, "We are upgrading Micron to a Buy from a Hold after remaining cautious on the name since the beginning of the year. August EPS guidance of $0.45 (at mid-point) was better than feared as some investors believed the company would lose money. The company has seen normalizing inventory levels in the cloud, graphics, and PC end markets, as customers digest excess inventory. Another significant tailwind is MU's resumption of shipments of certain products to Huawei in the last 2 weeks. With an improved DRAM outlook for C2H19, significant CAPEX cuts coming in FY20, and a stabilizing book value per share of $31.89 (trading at trough P/B multiple of ~1x), we believe there's limited downside risk over the next 6-12 months."
Micron stock rallied on Wednesday, surging by nearly 14% as investors reacted to the company's better-than-expected numbers.
All in all, Wall Street’s confidence backing this chip giant is strong, with TipRanks analytics showcasing MU stock as a Buy. Based on 22 analysts polled in the last 3 months, 13 are bullish, 5 are neutral and 4 are bearish. The 12-month average price target stands at $42.90, marking a nearly 15% upside from where the stock is currently trading. (See MU's price targets and analyst ratings on TipRanks)
Read more:Micron (MU) Stock Remains a Longer-Term Value Play, Says Analyst
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• Walgreens Beats Quarterly Earnings Bets as U.S. Pharmacy Sales Boom |
When Should You Buy Spectrum Brands Holdings, Inc. (NYSE:SPB)?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Spectrum Brands Holdings, Inc. ( NYSE:SPB ), which is in the household products business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $65.75 at one point, and dropping to the lows of $52.67. 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 Spectrum Brands Holdings's current trading price of $53.96 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Spectrum Brands Holdings’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 Spectrum Brands Holdings What is Spectrum Brands Holdings worth? Great news for investors – Spectrum Brands Holdings is still trading at a fairly cheap price. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Spectrum Brands Holdings’s ratio of 19.4x is below its peer average of 25.12x, which suggests the stock is undervalued compared to the Household Products industry. However, given that Spectrum Brands Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. Can we expect growth from Spectrum Brands Holdings? NYSE:SPB Past and Future Earnings, June 26th 2019 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected next year, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Spectrum Brands Holdings, at least in the near future. What this means for you: Are you a shareholder? Although SPB is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to SPB, or whether diversifying into another stock may be a better move for your total risk and return. Story continues Are you a potential investor? If you’ve been keeping tabs on SPB for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future. Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Spectrum Brands Holdings. You can find everything you need to know about Spectrum Brands Holdings in the latest infographic research report . If you are no longer interested in Spectrum Brands Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential . We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. View comments |
Alanis Morissette pregnant: Fertility struggles
Alanis Morissette is opening up about her fertility struggles in a candid new interview with Self magazine. Together with her husband, Mario “Souleye” Treadway, Morissette is a parent to eight-year-old son Ever and three-year-old daughter Onyx. At 45-years-old, Morissette is pregnant with her third child, which she reveals was not an easy feat. ALSO SEE: 'Tone deaf' Kim Kardashian slammed for 'problematic' shapewear line “Between Ever and Onyx there were some false starts,” the star told the magazine. “I always wanted to have three kids, and then I’ve had some challenges and some miscarriages so I just didn’t think it was possible.” Morissette says she experienced “so much grief and fear” after each miscarriage. “I chased and prayed for pregnancy and learned so much about my body and biochemistry and immunity and gynecology through the process,” she explained. “It was a tortuous learning and loss-filled and persevering process.” The Ottawa native says she ultimately found success through extensive research that required rigorous blood-work monitoring, and numerous tests and surgeries. ALSO SEE: 'You don't owe the world a bikini': Canadian blogger praised for empowering Instagram post After delivering both of her children at home and experiencing postpartum depression, Morissette revealed she is being proactive about her mental health this time around. “Not singularly relying on myself to diagnose myself is key,” she said. “Because the first time around I waited.” View this post on Instagram A post shared by SELF (@selfmagazine) on Jun 26, 2019 at 6:43am PDT Although she struggled with bouts of depression for most of her life, the “You Outta Know” singer says her postparum depression manifested itself an overwhelming feeling of heaviness. “For me I would just wake up and feel like I was covered in tar and it wasn't the first time I'd experienced depression so I just thought Oh, well, this feels familiar, I'm depressed, I think,” Morissette explained. “And then simultaneously, my personal history of depression where it was so normalized for me to be in the quicksand, as I call it, or in the tar. It does feel like tar, like everything feels heavy.” Story continues ALSO SEE: 'I never realized the impact it had on me': Why Iskra Lawrence won't let her photos be digitally altered After turning to songwriting and even self-medicating with alcohol to help with her postpartum, Morissette finally turned to her doctor for help. The expectant star revealed she has already prepared her inner circle, requesting that they keep an eye on her and watch for any signs of postpartum. “I have said to my friends, I want you to not necessarily go by the words I'm saying and as best as I can, I'll try to be honest, but I can't personally rely on the degree of honesty if I reference the last two experiences,” she shared. “I snowed a lot of them as I was snowing myself [the last two times].” Let us know what you think by commenting below and tweeting @ YahooStyleCA! Follow us on Twitter and Instagram . |
Why BlackBerry Stock Fell Wednesday
What happened Shares of BlackBerry (NYSE: BB) , a provider of security-focused software and services for enterprises, took a hit on Wednesday. The stock fell as much as 10.1% but is down about 9% as of 12:30 p.m. EDT. The stock's pullback follows BlackBerry's underwhelming fiscal first-quarter earnings release. A chalkboard sketch of a chart showing a down arrow. Image source: Getty Images. So what For its first quarter of fiscal 2020, BlackBerry reported non-GAAP (adjusted) revenue of $267 million, up 23% year over year. GAAP revenue was $247 million, up 16% year over year. Growth during the quarter was partly helped by BlackBerry's recent acquisition of endpoint security technology specialist Cylance. Excluding revenue from Cylance, BlackBerry's non-GAAP software and services revenue was up 8% year over year. Some analysts, according to Bloomberg , were expecting Cylance to contribute more revenue during the quarter. Non-GAAP earnings per share for the period was $0.01 -- a penny ahead of analysts' average forecast. Now what BlackBerry management is happy with the company's start to fiscal 2020, noting that its Cylance acquisition is ahead of schedule. In addition, BlackBerry says it has a "robust product cycle this year, with over 30 new secure communication products and services to be released." More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry. The Motley Fool has a disclosure policy . |
2020 Chevrolet Silverado HD Pickups Offer More Towing Capacity and a New Gasoline Engine
Photo credit: Chevrolet From Car and Driver That the 2020 Chevrolet Silverado HD diesel's new cooling fan looks like a windmill blade assembly is not a coincidence. It's huge. And by huge, we mean 28 inches in diameter. If appearances tell the truth, the thing could cool a nuclear reactor. Or the Earth's core. Or even the sun itself. Yet it's but one component in a variety of chassis and powertrain changes that allow Chevy's diesel-powered Silverado 2500 and 3500 pickups to reset the max-towing bar among HD trucks. A new Allison 10-speed transmission is paired with the diesel engine, as are beefed-up prop shafts and a larger 12-inch rear axle on 3500s. At 35,500 pounds, the 2020 Silverado HD's maximum trailering weight is a massive 52 percent higher than the 2019 Silverado HD. But that's a mere 400 pounds clear of the bar set only months ago by the Ram 3500 , and it's only 500 pounds more than the 2019 Ford Super Duty , which is also being replaced for 2020 . Photo credit: Chevrolet Those are academic numbers, of course, especially considering that the peak number is always achieved with a single-cab, dual-rear-wheel, two-wheel-drive truck. You know, the one no one buys. What's more, although its tow ratings are increased, the Silverado HD's optional 6.6-liter diesel maintains the same output as last year-445 horsepower and 910 lb-ft of torque. An all-new 6.6-liter gasoline V-8 bumps base-engine output to 401 horsepower and 464 lb-ft of torque over last year's 6.0-liter Silverado HD gas engine, which generated 360 horsepower and 380 lb-ft of torque. The gas engine is coupled exclusively to a six-speed automatic transmission, and each powertrain offers only a single axle ratio (3.73 gas, 3.42 diesel). Gas-engine-equipped Silverados max out at a 17,400-pound towing capacity. Real-World Towing We towed two trailers around the central Oregon mountains in the new Silverados: a 12,000-pound open-deck utility trailer using the gas-engine Silverado and a 14,000-pound enclosed trailer with the diesel. Both trucks were single-rear-wheel, crew-cab, all-wheel-drive models. Story continues Photo credit: Chevrolet The gas-drinking truck, a mildly optioned Custom trim priced at $47,520, certainly felt the weight on a road that rose and fell between 4000 and 6000 feet. Still, patience is necessary when moving anything this heavy, and the load was within the powertrain's capability. The six-speed transmission delivered perfectly rev-matched downshifts when slowing and on grades to help control speed. The narrow two-lane roads, however, where there's a premium on steering precision and feedback, showed the limits of the chassis. And limits aren't really something we enjoy exploring while piloting nine tons of steel and rubber. Two factors were at play: Lower-trim trucks (Work Truck, Custom, and LT) use hydraulic-assist steering where higher trims (LTZ and High Country) get electric-assist steering-Enhanced Digital Variable Assist Steering in the Chevy vernacular. The electric-assist setup allows engineers to tune the steering specifically for use in Tow/Haul mode, permitting additional damping and effort, which dramatically improves confidence during heavy trailering. Also, the lighter trailer hitched to the gas-powered truck wasn't equipped with a weight-distributing hitch, which shifts more weight to the front axle to normalize steering. Combined, these differences were significant in detracting from the towing experience. Photo credit: Chevrolet The diesel truck, however, is a mountain-moving sweetheart. You get what you pay for with the $9750 diesel option and the better-equipped High Country. Even towing several thousand pounds more than the gas truck, it was clear that if you're towing frequently and the loads are heavy, there's no substitute for the diesel. With nearly double the torque of the gas engine and four more gears from which to choose, the Duramax was secure in its ability to pick a speed and haul uphill. Even with the equivalent of four Corvette Stingrays in tow, the 2500 was able to maintain 60 mph up the steepest slopes available. More important was its ability to maintain downhill speed using the exhaust brake, which operates silently and is engaged using a switch on the dash. Simply achieve the speed you want to hold, activate the exhaust brake, and steer. Bigger, Better All Silverado HD trucks are updated with new bodywork this year and share only their roof sheetmetal with the 1500. They're bigger, too. Crew-cab models get 5.2 inches more wheelbase, 10.4 inches more length, and 1.4 inches more width than last year's trucks. The result is three inches more rear legroom. An HD-specific bed is also longer and holds higher volume (8.6 more cubes on standard bed and 7.1 more cubes on the long bed) than on 2019 models. Photo credit: Chevrolet Chevrolet is serious about diesel-engine longevity to the extent that it's added an after-run feature to Duramax-equipped pickups for 2020. The feature alerts the driver when the transmission is put in Park if the engine needs additional cooling time and will restart itself to enable cooling for up to 15 minutes should the driver opt to kill the engine. The new Allison transmission also is available with an optional power takeoff for driving dump bodies or salt spreaders, and the air dam and skid plate are now easily removable for less intrusive snowplow installation. And haven't you always wanted a less intrusive snowplow, really? Photo credit: Chevrolet Chevy's convincingly effective, yet nameless, new camera system is available across the HD lineup. The system offers 15 different views from eight cameras, including (optionally) one on the back of the trailer and one inside. Chevy claims 12 percent of pickup drivers have engaged in a fight with a spouse, friend, or family member while towing. (It's an unsubstantiated claim but a claim nonetheless.) Fortunately, the system, which leaves virtually no blind spots, will effectively eliminate your need for friends or spouses, thereby eliminating two of life's biggest struggles. Additionally, the system unquestionably makes towing easier and safer by bringing into view the previously unseen, which would be a handy feature for the rest of life as well. What we're trying to say here is that the new Chevy HD pickups have moved the genre forward another notch with more capability and safety, all while reducing or eliminating some of towing's more burdensome hassles. That some of their trucks could benefit from better steering likely won't bother the big-tonnage crew that buys these rigs. They'll be more than satisfied with the ability to yank around houses in their daily driver. And they will be impressed with that big fan, no doubt. ('You Might Also Like',) Unclogging Streets Could Help City Dwellers Save 125 Hours a Year The 10 Cheapest New Cars of 2018 Get Out Early, Get In Late: What to Know About Auto Lease Transfers |
2 U.S. service members killed in Afghanistan; Taliban says they died in an ambush
Secretary of State Mike Pompeo, left, is greeted by Afghan President Ashraf Ghani, at the Presidential Palace in Kabul, Afghanistan, Tuesday, June 25, 2019, during an unannounced visit. At right is Afghan Chief Executive Officer Abdullah Abdullah. Two U.S. service members were killed in Afghanistan on Wednesday, the American-led NATO mission in Afghanistan said in a statement. The identities of the soldiers were being withheld pending notification of next of kin. The statement did not offer any details surrounding the circumstances of their deaths. A spokesman for the Taliban, Zabihullah Mujahid, said the two service members were killed in an ambush in eastern Wardak Province, the New York Times reported. The deaths occurred one day after an unannounced visit to Kabul, the Afghan capital, by Secretary of State Mike Pompeo. Meanwhile, the U.S. is holding direct talks with the Taliban in Doha, the Qatari capital. The seventh round of the talks are scheduled to begin on Saturday. "We've made clear to the Taliban that we're prepared to remove our forces. I want to be clear, we've not yet agreed on a timeline to do so," Pompeo told reporters during an unannounced stop in Afghanistan on Tuesday. The presence of troops in Afghanistan is "conditions-based, he said. The Taliban refuse to talk directly with the Afghan government, which it considers a puppet of the U.S. More than 2,400 U.S. service personnel have died in Afghanistan since the U.S.-led coalition invaded the country after the 9/11 terrorist attacks on the U.S. The coalition sought to crush the Taliban and hunt down al-Qaeda chief Osama bin Laden. The U.S. makes up the overwhelming majority of 14,000 coalition troops in Afghanistan. About 100,000 troops were stationed there at the height of the war. This article originally appeared on USA TODAY: 2 U.S. service members killed in Afghanistan; Taliban says they died in an ambush |
All The Marvel Movies That Are Rumored To Be Happening
We may be heading into a slow period when it comes to MCU movies. As comicbook.com points out, Spider-Man: Far From Home is the only new movie left. Here are a few movies rumored and/or confirmed to be in the planning stages. 'Black Panther 2' Black Panther 2 is a go, according to The Hollywood Reporter . Ryan Coogler will return to write and direct the film. 'Guardians Of the Galaxy, Vol. 3' James Gunn and Kevin Feige have confirmed the news. 'Black Widow' Comicbook.com says a Black Widow movie starring Scarlett Johansson is in production and is in Budapest shooting right now. But you won't hear Marvel Studios confirming that. 'Captain Marvel 2' It seems likely that a new Captain Marvel film could be in the works to build on the success of the first movie, which stars Brie Larson. 'Thor 4' If Thor 4 comes to fruition, it would be the first MCU movie to get a fourth solo. |
Google Staff Petition SF Pride to Exclude Company From Event
(Bloomberg) -- About 100 Google employees urged the organizer of this weekend’s San Francisco Pride parade to kick the company out of the celebration, escalating pressure on the internet giant to overhaul its handling of hate speech online.
“Whenever we press for change, we are told only that the company will ‘take a hard look at these policies,’” the employees wrote in a letter sent Wednesday to the board of directors of San Francisco Pride. “But we are never given a commitment to improve, and when we ask when these improvements will be made, we are always told to be patient. We are told to wait. For a large company, perhaps waiting is prudent, but for those whose very right to exist is threatened, we say there is no time to waste, and we have waited too long, already.”
The petition, which was also posted online, asks that Google be dropped as a sponsor of the parade as well as excluded from having a presence at the event.
A Google spokeswoman said the company participates in Pride to celebrate the LGBTQ+ community, and that employees in Google’s "Gaygler" community are divided on the controversy, with some circulating a counter-petition in support of Google being represented at the event. Participating in Pride is meaningful to many employees, she said.
In a statement Wednesday, the San Francisco Pride Celebration Committee said Google will still participate in the parade. The non-profit said that the company "has historically been a strong ally to LGBTQ+ communities."
Google has been under fire over how it responded to homophobic and racist jokes made on its YouTube video service by conservative comedian and commentator Steven Crowder. YouTube said earlier this month that Crowder’s clips did not violate its policies. After criticism from some Google workers and others online, the company suspended his channel’s ability to make money from advertising, but did not remove the videos.
Google and YouTube "can and must do more to elevate and protect the voices of LGBTQ+ creators on their platforms," the San Francisco Pride Celebration Committee said. Still, the company has "acknowledged they have much work to do to promote respectful discussion and exchange of ideas," the group added.
Listen to Bloomberg’s Decrypted podcast: Google Workers Rise Up: Inside the Protests
YouTube Chief Executive Officer Susan Wojcicki said she knew the company’s actions had been “very hurtful to the LGBTQ community,” but that banning Crowder would have put it in a bind, with millions of people asking “what about this one?” for other provocative clips.
That hasn’t swayed some Google employees. As long as Google’s video service “allows abuse and hate and discrimination against LGBTQ+ persons, then Pride must not provide the company a platform that paints it in a rainbow veneer of support for those very persons,” the employees wrote in the letter.
Some co-workers were concerned that kicking Google out of Pride could deny them the ability to march in the parade. So the employees floated a compromise: visibly protesting against YouTube while marching in Google’s parade contingent. But Google management told staff that this would violate the company’s code of conduct, according to the letter.
“They claim the contingent is their official representation, and we may not use their platform to express an opinion that is not their opinion. In short, they rejected any compromise," the employees wrote.
The Google spokeswoman said Wednesday that employees are welcome to protest at Pride parades, but only in a personal capacity, not while marching with Google’s contingent.
Signature-gathering for the petition began late Monday, according to a person involved, after one of Google’s LGBTQ+ community inclusion leads informed an activist employee that staff would not be allowed to protest while participating in Google’s Pride contingent.
That prohibition may violate federal law protecting workplace activism and California law protecting employees’ political activity, according to legal experts. That’s especially true if the employees “feel like tolerating hate speech on the platform makes them feel vulnerable or disrespected at work,” said University of California, Berkeley, law professor Catherine Fisk.
Almost all of the employees’ full names were published with their letter. “We have considered the possibility that our employer will punish us for signing this letter, or that supporters of these very hatemongers will attack us personally, online or otherwise, simply for speaking out against them,” they wrote. “Despite these risks we are compelled to speak.”
The petition continues a wave of activism by some staff at Google, a unit of Alphabet Inc. Read about the protests here, here and here.
For more on employee activism at Google, check out the Decrypted podcast:
(Updates with SF Pride response in fifth paragraph.)
To contact the reporter on this story: Josh Eidelson in Washington at jeidelson@bloomberg.net
To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net, Alistair Barr, Andrew Pollack
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
US STOCKS-Tech boost, trade optimism lead Wall Street higher
(Updates to early afternoon)
* Micron jumps after upbeat results, lifts chip stocks
* Tech boosts S&P; energy stocks track oil gains
* Mnuchin says U.S., China were close to trade deal - CNBC
* General Mills falls on disappointing sales
* Indexes up: Dow 0.34%, S&P 0.23%, Nasdaq 0.63%
By Shreyashi Sanyal
June 26 (Reuters) - Wall Street rose on Wednesday, as technology shares gained on the back of Micron's upbeat results, while comments from Treasury Secretary Steven Mnuchin fueled hopes that the United States and China were making progress in their trade talks.
"We were about 90% of the way there (with a deal) and I think there's a path to complete this," Mnuchin said in an interview to CNBC.
Market participants are hoping for a speedy resolution of differences between the two sides as their bitter trade war takes a toll on global growth.
President Donald Trump said earlier in the day it was "absolutely possible" he would emerge from a meeting with Chinese leader Xi Jinping with a deal that would keep him from imposing tariffs he had threatened to put on China.
Trump is expected to meet with Xi at the G20 summit in Japan this weekend. It will be the first time the two leaders have had a face-to-face meeting since trade talks between their countries collapsed in May.
"The tariff war remains a major headwind for the global economy," said Craig Erlam, senior market analyst at OANDA in London.
"I'm optimistic that we'll see progress at the G20, at least enough to delay further tariffs being imposed which is surely a positive for markets."
Micron Technology Inc jumped 13.2% after reporting better-than-expected quarterly results and lifted the Philadelphia Semiconductor index 3.50% higher.
The company said it had resumed some shipments to Chinese telecoms equipment maker Huawei Technologies Co Ltd and still expected demand for its chips to recover later this year.
Tech stocks were up 1.60%, while the trade-sensitive industrial index rose 0.47%.
At 12:55 p.m. ET the Dow Jones Industrial Average was up 90.24 points, or 0.34%, at 26,638.46 and the S&P 500 was up 6.71 points, or 0.23%, at 2,924.09.
The Nasdaq Composite was up 49.97 points, or 0.63%, at 7,934.69 and was helped by gains in shares of Apple Inc , Microsoft Corp and Amazon.com Inc.
Among other gainers, the energy sector jumped 2.1% as oil prices rose after an outage at a major refinery on the U.S. East Coast and on industry data that showed U.S. crude stockpiles fell more than expected.
Capping gains on the S&P 500 was a 1% drop in the healthcare sector, weighed by losses in Johnson & Johnson, Pfizer Inc and Merck & Co Inc.
The benchmark index has gained 6% so far in June, hitting a record high last week, largely on hopes that the Federal Reserve would cut interest rates to counter the impact of a U.S.-China trade war.
However, stocks fell steeply on Tuesday after the Fed chairman pushed back on pressure from Trump to cut rates.
Still, markets fully expect a rate cut in July and see a 25% possibility of a half-point move.
The biggest decliner among S&P 500 companies were General Mills Inc's shares, which slipped 4.8% after the food packaging company missed quarterly sales estimates.
Advancing issues outnumbered decliners by a 1.37-to-1 ratio on the NYSE and by a 1.19-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and three new lows, while the Nasdaq recorded 16 new highs and 76 new lows. (Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Anil D'Silva) |
One Thing To Remember About The Spectrum Brands Holdings, Inc. (NYSE:SPB) Share Price
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
If you're interested in Spectrum Brands Holdings, Inc. (NYSE:SPB), 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. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks are more sensitive to general market forces than others. 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 below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
See our latest analysis for Spectrum Brands Holdings
Looking at the last five years, Spectrum Brands Holdings has a beta of 1.93. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If this beta value holds true in the future, Spectrum Brands Holdings shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how Spectrum Brands Holdings fares in that regard, below.
Spectrum Brands Holdings is a fairly large company. It has a market capitalisation of US$2.6b, which means it is probably on the radar of most investors. It takes a lot of money to influence the share price of large companies like this one. That makes it interesting to note that its share price has a history of sensitivity to market volatility. There might be some aspect of the business that means profits are leveraged to the economic cycle.
Since Spectrum Brands Holdings has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment. For example, it might be a high growth stock or have a lot of operating leverage in its business model. In order to fully understand whether SPB is a good investment for you, we also need to consider important company-specific fundamentals such as Spectrum Brands Holdings’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 SPB’s future growth? Take a look at ourfree research report of analyst consensusfor SPB’s outlook.
2. Past Track Record: Has SPB 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 SPB's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how SPB 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. |
Drew Barrymore and Justin Bieber's Friendship Continues to Grow, Singer Now Using Actress' Face on Drew House Shirts
Actress Drew Barrymore is digging Justin Bieber using her face to sell t-shirts for his Drew House fashion line and even doing some PR for it. Barrymore and Bieber’s friendship continues to grow with both posting on social media about the new clothing, following months of the actress and singer trading shoutouts to each other. She posted a photo of a new shirt being sold that features an image of her posing with her hands on her face. Barrymore simply captioned it, ”Drew ❤️ @drewhouse.” She wasn’t done there and posted a separate photo of Bieber wearing a shirt with her face on it. This time the photo was from her childhood days from the movie "E.T." Bieber’s Drew House Instagram account also posted photos with various models wearing the shirt. The actress even gave the photo a like and is clearly digging Bieber's new clothes. Honestly, we totally get Bieber's admiration for Barrymore. She was born into a Hollywood dynasty family as the granddaughter of legendary actor John Barrymore. She has been working steadily in the industry since she was only 11 months old. Barrymore had a rebellious period as a child but came out on top. Barrymore has starred in such classics as "E.T. the Extra-Terrestrial," "Firestarter," "Poison Ivy," "Scream," "The Wedding Singer," "Ever After," and "Never Been Kissed" ... all before the year 2000. She would follow those iconic movies with "Charlie's Angels," "Riding in Cars with Boys," "Fever Pitch," "50 First Dates," "He's Just Not That Into You," and the hit television adaptation of "Grey Gardens." Many of those films were produced by Barrymore's production company, Flower Films, which she launched in 1995 with her long-time producing partner Nancy Juvonen. The actress recently starred in Netflix's "Santa Clarita Diet" which aired for three seasons until recently wrapping up, which she also produced. She is also quite the mogul with her having FLOWER by Drew, a line of home apparel sold at Walmart, sells makeup under the Flower Beauty name and even sells her own eyewear. Josie Grossie would be proud. |
Is There Now An Opportunity In Diplomat Pharmacy, Inc. (NYSE:DPLO)?
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Diplomat Pharmacy, Inc. (NYSE:DPLO), which is in the healthcare business, and is based in United States, received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Diplomat Pharmacy’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for Diplomat Pharmacy
Great news for investors – Diplomat Pharmacy is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $8.74, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Diplomat Pharmacy’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
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. Diplomat Pharmacy’s earnings over the next few years are expected to increase by 95%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?Since DPLO is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on DPLO for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DPLO. 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 investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Diplomat Pharmacy. You can find everything you need to know about Diplomat Pharmacy inthe latest infographic research report. If you are no longer interested in Diplomat Pharmacy, 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. |
Synnex Corp (SNX) Q2 2019 Earnings Call Transcript
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Synnex Corp(NYSE: SNX)Q2 2019 Earnings CallJun 25, 2019,5:00 p.m. ET
• Prepared Remarks
• Questions and Answers
• Call Participants
Operator
Good afternoon. My name is Chris and I'll be your conference operator today. I would like to welcome everyone to the SYNNEX Second Quarter Fiscal 2019 Earnings Call. Today's call is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. At this time, for opening remarks, I would like to pass the call over to Ms. Mary Lai, Head of Investor Relations. Ms. Lai, you may begin.
Mary Lai--Head of Investor Relations
Thank you, Chris. Good afternoon and welcome to the SYNNEX Corporation earnings call for the second quarter of fiscal 2019. Joining me today to review our financial results are Dennis Polk, President and CEO; Marshall Witt, CFO and Chris Caldwell, President of Concentrix. After their prepared remarks, we will open the call to a question-and-answer session.
Before we begin, we remind everyone that today's discussion contains forward-looking forward-looking statements within the meaning of the federal securities laws. Statements include any predictions, estimate, projections or other statements about future events, including the Company's projected financial results. Actual results may differ materially from those mentioned in these forward-looking statements as a result of risks and uncertainties discussed in today's earnings release in the Form 8-K we filed today in the risk factor section of our Form 10-K and other reports and filings with SEC.
We do not intend to update any forward-looking statements. Also, during this call, we will reference during non-GAAP financial information, reconciliation of non-GAAP and GAAP reporting is included in our earnings press release and the related Form 8-K available under the Investor Relations section of our website. This conference call is the property of SYNNEX Corporation. It may not be recorded or rebroadcasted without our permission.
And now I will turn the call over to our CFO for the financial update. Marshall?
Marshall Witt--Chief Financial Officer
Thank you, Mary, and thank you all for joining us today. Our Q2 revenue, non-GAAP net income and deluded EPS all exceeded our expectations. On a consolidated basis, total revenue was a second quarter record of $5.7 billion, up 17% compared to $4.9 billion in the same quarter last year. Adjusting for FX, revenue increased 18%. At the segment level, Technology Solutions revenue was $4.6 billion, an increase of 3% compared to $4.4 billion in the prior quarter, which includes roughly $159 million of gross to net revenue headwinds. On a year-over-year basis, in constant currency gross revenue increased by 7%. Concentrix revenue was $1.2 billion, up 136% from $491 million in the prior year quarter, primarily due to the Convergys acquisition, which was completed in October of 2018.
On a pro forma basis and constant currency basis, revenue grew about 3%. Our consolidated gross profit dollars totaled $698 million, up 63% or $269 million versus the year ago, and gross margin was over 12%, an improvement of 346 basis points from the prior year quarter. Several factors contributed to the gross profit dollars and margin increase, most notably the positive contribution from our Convergys acquisition in overall strong revenue growth in the Company.
Technology Solutions gross margin of 5.9% increased 32 basis points from the prior year quarter, mainly due to mix and balanced growth across our portfolio. Concentrix's gross margin was 37.1%, down slightly from the prior year quarter driven by revenue mix. Total adjusted SG&A expense was $455 or 8% of revenue, up $178 million in absolute dollars, and up 230 basis points as a percentage of revenue compared to the prior year quarter. The increase in SG&A was largely due to the Convergys acquisition and Technology Solutions revenue growth and investment in the business mostly related to compensation.
Second quarter consolidated non-GAAP operating income was $244 million, up $92 million or 60% year-over-year. Non-GAPP operating margin up 4.3% was a 116 basis point expansion from the prior year period. At the segment level, Technology Solutions non-GAPP operating income was a $124 million up 12% or $13 million over the prior quarter. The increase was primarily due to mix, adjusted operating margin was 2.7% up 21 basis points compared to a year ago.
For Concentrix, non-GAPP operating income in the quarter was $120 million, up $79 million in absolute dollars or 189% year-over-year. Adjusted operating margin was 10.3%, up 189 basis points from the prior year period. The increase in both profit dollars and margin was mainly due to the Convergys acquisition. Second quarter net total interest expense and finance charges came in line with our guidance and with approximately $43 million, up from $16 million in the prior year quarter. The year-over-year increase was due to borrowings to fund the Convergys acquisition and growth in our Technology Solutions business.
We remain well positioned from liquidity standpoint by fixing approximately 57% of our variable debt. For the third quarter fiscal 2019, we expect our quarterly net total interest expense and finance charges to be approximately $42 million. Second quarter net other income was $22 million, compared to a $1 million net expense in the prior year period. This was primarily due to a $19 million benefit recorded upon the settlement of contingent consideration related to our Westcon-Comstor Americas acquisition.
The effective tax rate for the second quarter was 25%, compared to 12% a year ago. The prior quarter was impacted by a true-ups of $17 million related to the US Tax Reform Act, excluding the impact of the US tax reform in the prior year and the non-taxable contingent consideration benefit in the current year, the effective tax rate was 27.8% in the current year period, compared to 27.7% in the prior year. For the third quarter of fiscal 2019, we anticipate the effective tax rate to be approximately 27%. Non-GAPP net income was $147 million, up $51 million or 54% from the prior year period, reflecting balanced contributions from both segments. Our second quarter non-GAPP diluted EPS was $2.86, up $0.48 or 20% over the same period a year ago.
Now turning to the balance sheet, our accounts receivable totaled $3.5 billion and inventories totaled $2.6 billion on May 31st, 2019. Our cash conversion cycle for the second quarter was 53 days, down six days compared to the prior quarter and up 12 days compared to the prior year period. The increase in DSO over last year was primarily due to the larger contribution of Concentrix to our overall business and timing. The increase in the DIO was primarily due to business growth.
Preliminary cash generated from operations was approximately $117 million for the second quarter. At the end of Q2, between our cash and credit facilities, SYNNEX had over $2 billion in liquidity, available to fund growth. Other financial data and metrics of note for the second quarter are as follows. Depreciation expense $43 million, amortization expense was $53 million, capital expenditure for the quarter was approximately $32 million. Trailing four quarters ROIC was 8.2% and 10.8% for adjusted ROIC.
We repurchased over $15 million worth of shares or 160,000 shares of our stock in the second quarter. As described in our press release, the Board of Directors approved a regular quarterly cash dividend of $0.375 per common share, to be paid July 26th, 2019 to stockholders of record as of the close of business on July 12th, 2019.
Now, moving to our third quarter fiscal 2019 outlook, we expect revenue to be in the range of $5.55 billion to $5.85 billion. Non-GAPP net income is expected to be in the range of $144 million to $150 million. Non-GAPP diluted EPS is expected to be in the range of $2.80 to $2.92 per dluted share based on weighted average shares outstanding of approximately $51 million. Non-GAPP net income and non-GAPP diluted EPS guidance exclude after tax cost of approximately $45.2 million or $0.88 per share related to the amortization of intangibles and acquisition related integration expenses. Please note that these statements of the third quarter fiscal 2019 expectations are forward-looking and actual results may differ materially.
I will now turn the call over to Dennis.
Dennis Polk--President & Chief Executive Officer
Thank you, Marshall, and good afternoon. I'm very pleased to report that we completed a strong Q2 and first half of fiscal 2019. For Concentrix, on a pro forma constant currency basis, our Q2 revenue was better than anticipated and we continued in delivering a double digit operating profit margin profile for this business. For Technology Solutions, we saw a reasonable demand trends in IT spend and coupled with a solid distribution channel and excellent performance by the TS team revenue and profit growth was better than expected as well.
Overall, we set records for the May quarter for both revenue and earnings. Revenue was $5.7 billion, representing 17% growth from the prior year. Non-GAPP EPS of $2.86 per diluted share was 20% higher than Q2 2018. More importantly, these results demonstrate our ability to operate at a differentiated business process services provider with a significant profit contribution from both Concentrix and Technology Solution. Some additional highlights from Q2 beginning with Concentrix. Our Concentrix business delivered a solid quarter while making very good progress on the successful integration of the Convergys business. Our thesis supporting the Convergys transaction continues to play out in our excellent results.
I would like to now turn over the call to Chris to discuss Q2 results and Q3 outlook. Chris?
Christopher Caldwell--Executive Vice President & President
Thanks, Dennis. Concentrix delivered solid results in the second quarter for the business driving constant currency like-for-like revenue growth. Our synergy attainment, combined with disciplined cost management has resulted in a nearly 200 basis point expansion in our adjusted profit margin year-over-year with strong free cash flow. These solid results reflect the power of bringing two world class providers together as one business to deliver a strong value proposition to our clients. Second quarter revenue for Concentrix totaled $1.16 billion, an increase of approximately 136% on a reported basis.
On a like-for-like constant currency basis revenues were up approximately 2.8% with currency fluctuations causing nearly a 3% headwind on this measure. We continue to see a very strong pipeline across most of our verticals in general and are pleased that a majority of the opportunities take advantage of a capability or footprint that came from one side of the transaction or the other. I'm particularly pleased that the transaction and integration efforts have not caused delay in sales efforts. Adjusted operating income for the quarter was $120 million, up from $41 million in the prior year period. Adjusted operating margin was 10.3%, up from 8.5% last year.
The improved profit margins are the result of progress on integration synergies, strong cost containment efforts and continuing to improve the profit profile of our offering footprints and clients. On the transaction synergy front, we exited the quarter at an annualized run rate for synergies of approximately $85 million, well ahead of our year one target of $75 million. We have now entered the last major phase of integration of the Convergys acquisition, which is now focused on our back office. In the third quarter we will migrate most of our back office functions onto a common set of tools, which will allow us to achieve additional synergies.
We have achieved all milestones on time or earlier than anticipated to our initial integration plan. Our GAAP results for the quarter reflect approximately $16 million of integration-related expenses, primarily related to severance for duplicate positions, cost incurred in integration projects and site closures related to the rationalization of our combined footprint. We continue to expect the most of the integration activities will be completed by the end of this year and the total spend on transaction -- on integration costs will be approximately $100 million, including approximately $40 million spent last year. In keeping with this expectation, we anticipate lower integration spending in the third and fourth quarter than we occurred in Q2. As we continue with our integration activities, we believe that we will overachieve our year three synergy target of $150 million annually.
Moving to cash flow, we had strong operating cash flow this quarter, even with the continued spending on integration activities. Cash flow from operations in the quarter totaled approximately $108 million. Additionally, we spend $24 million on capital expenditures this quarter. While our capital expenditures have been relatively light for the first half of 2019, we expect an increase in capital spending during the remainder of the year. We continue to believe that on a long term basis, capital spending in the business should approximate 3% of our revenue.
Turning to Q3, we expect to make further progress on the integration in achieving our synergy targets and in ramping new client wins. We expect that the typical seasonal pattern of concentric revenue and profitability will continue. While we believe that we will see profitability the gains from further synergy attainment in Q3, we will also see increased investment in client programs in support of sequential revenue growth in Q4, which you have historically seen.
We expect Q3 revenues to reflect our efforts to refine our portfolio of clients and projects to ensure we have the right profitability mix and solution for long term growth. For clarity, these portfolio changes are included in our thinking of being able to grow Concentrix at a rate approaching industry growth rates on a pro forma constant currency basis by the end of 2019, while increasing our non-GAAP operating margin.
As I conclude, I would like to thank all the Concentrix team members who are working to meet our client's needs, while completing the integration. The market positioning of our capabilities set in conjunction with the team's hard work and dedication gave me every confidence in our success in 2019 and beyond.
Back to you. Dennis.
Dennis Polk--President & Chief Executive Officer
Thanks, Chris. Moving onto our Technology Solutions business. Revenue of $4.6 billion was a second quarter record. Our strong non-GAAP operating margin of 2.7% in Technology Solutions reflects our continued commitment to drive leverage and secure the appropriate returns for our investments. Overall, we delivered strong revenue growth in the TS business, particularly in the US. As Marshall indicated, our Q2 non-GAAP gross revenue was up nearly 7% year-over-year at constant currency .
Benefiting this growth were ongoing cross-selling efforts in our Westcon-Comstor business and some larger volume projects wins. Revenue growth and solid profits were delivered in the majority of our products and services.
Turning to our third quarter outlook, for Concentrix, as Chris indicated, we expect all key metrics to track in line to above our expectations, including Convergys integration, revenue growth, new logos, expense management and cash flow generation. We also expect the overall business to perform in line with historical seasonal trends for Q3 and achieve double digit non-GAPP operating profit margin. In Technology Solutions, we expect Q3 to be consistent, but seasonal norms on a gross revenue basis. This should translate to about the same growth on a net revenue basis that we experienced in Q2, but ultimately will be driven by mix.
Within the TS business, we expect the tech sector and its channel to remain healthy with a reasonable demand level. Overall, we are positive about the markets at both Concentrix and Technology Solutions participating. While we acknowledge there are always macro challenges at play, especially in the current environment, we remain optimistic that our balanced portfolio, geographic reach and the sizable markets of both businesses will support our growth. We are proud to have completed 128 consecutive quarters of profitable results. Our growth has also led us to be recognized as number 158 in the latest Fortune 500 rankings. Representing an improvement of over 200 positions since our debut on the list in 2007.
In closing, I want to thank all our associates around the world for their hard work and commitment to our Company and I want to thank our business partners and shareholders for their continued trust and support.
With that, I would like to now open the call up for questions.
Operator
(Operator Instructions) Your first question is from Shannon Cross with Cross Research. Your line is open.
Shannon Cross--Cross Research. -- Analyst
Thank you very much for taking my question. I guess the first on from TS perspective. There are so many -- I don't know, data points that are roaming around out there, whether it's Brexit and currency and tariffs and trade and all the macro that you were talking about. Maybe you could kind of dig down a little bit and if you can give us some idea of what your customers are saying, what they're wanting to purchase? Why they're wanting to purchase? Because clearly your numbers were better than people had expected and obviously the guidance was strong. So it seems like the trajectory is solid from your perspective. And then I have a follow up. Thank you.
Dennis Polk--President & Chief Executive Officer
Hi Shannon, this is Dennis. From an overall standpoint, I'm just off of actually several partner events. The mood is positive as we've always talked about in our discussions with you and with the rest of our investors. Technology improves customers efficiency and businesses overall. There's always a desire to improve, excuse me, invest in technology as a result. So, in recent conversations with customers, I'm hearing that again and again and again. So that's one reason why we're optimistic about our go forward results. Taking it up one level, if you look at our business over the past couple of years, we made some major investments in both sides of business, but specifically on Technology Solutions, we made the Westcon-Comstor acquisition. That brought a significant number of new lines to our Company and with that, we were able to leverage a larger offering to our customer base. I think that's another reason why we've been able to grow a bit more quickly than folks expect. And then lastly, we're always working on our business as well. We made a lot of improvements in the efficiency of our business and that's helped us to attract and win larger deals as I mentioned in my script, where in the past, maybe we couldn't compete as well.
Shannon Cross--Cross Research. -- Analyst
Okay, great. And then I guess one of the questions I had with -- this is what I want, but just with regard to the gross margin improvement in TS, which you referred to as mix. How much of that do you think is sustainable or we've seen some server pricing come down and again, I know it's a passed through for you, but I guess just when we think about what products are selling right now and the benefits of net down revenue in that, do you think you can continue to see strong gross margins within more of the, I don't want to say commodity business, but at least the TS business?
Dennis Polk--President & Chief Executive Officer
Hi Shannon, Dennis here again. So you hit the two high points of why our margins in the TS business improved in Q2. The mix of the business, so higher content of margin rich business, where we have a higher sort of content that led us to improve our margins and also just as gross net aspect that's playing through our numbers right now, which will start to sunset at the end of the year.
Those are the two key reasons why our margins improved, but also go back to what I said before. We've been working very hard on the details of our business, improving the operating aspects of our business. That also improved our margins and it's our intent to do so going forward. We have a few headwinds or at least one major headwind when it comes to our margins in the next few quarters on the TS side and the Concentrix side as well, and that we just went through our annual comp review cycle. As you would expect, we increased our compensation to recognize the good work of our team members. It's also a more competitive environment out there. So that's another driver of increased comp, but we typically work for those over a few quarters of time, but that's a little bit of a weight in our Q3 and Q4 rest of the year 2019 operating leverage. But we'll work for that, as we always do.
Shannon Cross--Cross Research. -- Analyst
Thank you.
Christopher Caldwell--Executive Vice President & President
Thank you.
Operator
Your next question is from Vincent Colicchio with Barrington Research. Your line is open.
Vincent Colicchio--Barrington Research -- Analyst
Yeah, thanks for answering my questions. A couple of questions for Chris on Concentrix. Chris, when do you expect the communications vertical to stabilize maybe get flattish and then grow?
Christopher Caldwell--Executive Vice President & President
Yes. So, Vince, from our perspective, we see it's a decline and generally we say for the foreseeable future, but really not till the end of Q4 is what we look at from a public perspective. We are selling net new services into the telecom vertical. They're fairly small in dollar size to begin with. And I don't know if I want to project out, but we expect that it won't be necessarily a drag in 2020, but for 2019, we continue to see it as declining.
Vincent Colicchio--Barrington Research -- Analyst
And then what industry verticals were an important growth drivers year-over-year for Concentrix?
Christopher Caldwell--Executive Vice President & President
So this quarter, we saw very, very good, strong stability within healthcare. We saw very good, strong stability in financial services and then consumer electronics was also good, strong demand.
Vincent Colicchio--Barrington Research -- Analyst
Okay. And if you're able to -- If you were able to pull out non contact center BPO revenue, would you say -- the margins improve year-over-year? I don't know if you look at it like that?
Christopher Caldwell--Executive Vice President & President
Yeah, we do look at it like that, primarily we have seen better margins and I'll call it additional sort of one offs and types of services that are complementary to our contact center services. So whether that be analytics, whether that be our vertical customer business, our emerging businesses and so forth and so on. That's primarily driven by just getting more operationally efficient. That's also where we deploy a lot more technology. So we continue to see good margin expansion and expansion possibilities in that area.
Vincent Colicchio--Barrington Research -- Analyst
Okay. You had a nice improvement in margins year-over-year, if you look at the sequential change in revenue and adjusted operating income, they changed by about the same gross amount. How should I think about that?
Christopher Caldwell--Executive Vice President & President
So, one of the things that we talked about in Q1 was the fact of us rebalancing the portfolio and we've been in that process. So we're cleaning up some accounts and kind of getting that cleaned up, as well as ramping new accounts. And so those haven't come to full -- I call it productivity in fruition, but that's what we commented about, seeing additional margin expansion through the course of the year.
Vincent Colicchio--Barrington Research -- Analyst
Okay. Thank you for answering my questions.
Operator
Your next question comes from Adam Tindle with Raymond James. Your line is open.
Adam Tindle--Raymond James. -- Analyst
Okay. Thanks and good evening. I just wanted to continue on Concentrix on the revenue side. It does look like the combined entity of Concentrix and Convergys grew this quarter on an organic basis. And as you mentioned your intention to approach industry growth by Q4, but it looks like you're near that ballpark now. And I think guidance for next quarter also implies continued growth on an organic basis year over year. Quite a change from trends that we saw at Convergys before you acquired it. I know there are a lot of doubts that it could grow. The first question is for Chris, maybe just what are the items that are leading to this acceleration in growth? It looks like margins are solid. So can attribute it to aggressive pricing in the new logos, expansion with the existing customers, the items leading to the acceleration and then the sustainability of growth in that segment?
Christopher Caldwell--Executive Vice President & President
So Adam, a few things. If you remember thesis for the deal, we believe that Convergys had a lot of very rich clients within that 10 to 150 category and being able to kind of grow those and help develop those accounts and we're starting to see that fruition. Obviously, we've also been very happy with new logo sales, but new logo sales tend to take a little longer in terms of hitting our revenue and also maturing into the right margin mix. So that's really what we see as kind of contributing to the back half of the year and into next. So those have kind of been some of the contributors to what we've seen from a both a profit and revenue expansion. I think the other thing that we've made comments to a number of times is that clients from both sides of the acquisition have found benefit in bringing it together as one and been able to leverage the larger footprint and larger capabilities that both companies offer that we wouldn't have been able to participate in as being separate. And that was really a big part of our thesis and that's really come -- and played through very strongly with what we've seen in the quarter since we closed the deal.
Adam Tindle--Raymond James. -- Analyst
Okay, and sustainability of growth in the segment?
Christopher Caldwell--Executive Vice President & President
Yeah, absolutely. We continue to plan to focus on industry growth rates and then as we've talked about, exceed those going into 2020. And from what we're seeing in the market, from what we're seeing from our pipeline, we don't see any reason to differ from that.
Adam Tindle--Raymond James. -- Analyst
And maybe just as a follow up and I'll first acknowledge, obviously, very solid results in this environment on both sides of the business. If there was maybe one thing to zone in on on the negative side, it'd be cash flow it remains pretty subdued. I understand both DSO and days payable can be skewed by the debt net revenue treatment. And it looks like the inventory days are still fairly significantly elevated. And that's where the potential improvement is. It has to be TS, given there's no real inventory and concentrix. And Marshall, you mentioned in your prepared remarks and attributed the increase in DIO to business growth. But TS revenue growth was I think 7% year-over-year adjusted for gross to net, but inventory dollars were up by 30% year-over-year. So can you help us understand why the dislocation is so large? And if you could tie in how we can think about cash flow moving forward in the context of your deleveraging goals that would be helpful?
Marshall Witt--Chief Financial Officer
Sure. Yeah. So first to remind everyone, our first half, we did well in beating our overall metrics and guidance by over $0.20 -- $0.25. So just want to acknowledge that the growth rates and the investments we've made or are paying dividends and benefits for us. And clearly part of that is there's a trade off in TS working capital. As you know, our goal is to drive better efficiency in working capital. Our goal is to still get leverage down to 2.5x as we exit 2019. And we're still optimistic that the goal of $400 million in debt pay down, we can achieve as we exit 2019 as well.
Adam Tindle--Raymond James. -- Analyst
And that factors in the incremental CapEx in the back half of the year for Concentrix, it's -- don't think it's happening?
Marshall Witt--Chief Financial Officer
Correct Adam.
Adam Tindle--Raymond James. -- Analyst
Okay. All right. Thanks. Best of luck.
Christopher Caldwell--Executive Vice President & President
Thank you.
Mary Lai--Head of Investor Relations
Thank you.
Operator
Your next question is from Matt Sheerin with Stifel. Your line is open.
Matt Sheerin--Stifel. -- Analyst
Yes. Thank you. Just question regarding the hive business, the cloud business. You didn't make any comments. I know that that's been sort of a work in progress. You've had a very big customer and I know you talked about not a lot of growth here as you sort of prune that portfolio. Could you give us an update? Did you see growth in that quarter? Was that a contributor to the upside in Tech Solutions?
Dennis Polk--President & Chief Executive Officer
Hi, Matt, this is Dennis. Regarding Hive, overall it was a good quarter. We hit our revenue goals for the quarter. Not going to break out any percentage if we don't break out Technology Solutions segment, but we did hit our goals for the quarter for Hive from a revenue standpoint. More importantly, we improved our profitability in the quarter for Hive, something that we've been talking about over several quarters now, that was imperative for us was to improve the returns on our Hive business. And I mentioned in prior quarters we're making progress on that. In Q2, we got to a level that were more satisfied with, still work to do, but good progress on our goals there. From a customer standpoint, we still are concentrated in our Hive business. But in the quarter we did improve the mix with the customers that we have. In the Hive Solutions, for our TS business, we sold additional offerings to our main customers and that's helped to improve the diversity with that customer and round out our portfolio. So good progress overall in Hive business in Q2.
Matt Sheerin--Stifel. -- Analyst
Okay. And on the the Westcon-Comstor, which sounds like that's been a great success so far for you, including the cross-selling opportunities. How far along are you? I know you're on the same ERP system, which has helped, but how much is left in terms of opportunity to cross-sell into your legacy, if you will of our network of customers versus the Westcon-Comstor?
Dennis Polk--President & Chief Executive Officer
Yeah, as far as Westcon-Comstor is concerned, I agree we are very pleased with the transaction and we're very happy that we're making real progress in the cross-selling efforts. We're a year out from the initial system cut over that really allowed us to take advantage of the cross-selling efforts, but by no means are we at a point where we're satisfied. It does take time after a system conversion to get the sales team fully trained on how to sell the product. It takes time to get the customers engaged and to buy from us a different cadence. We definitely made progress in the last year and really took it up a step in Q2 2019. But now we think we have a lot of room to run in this area going forward.
Matt Sheerin--Stifel. -- Analyst
Okay. And just lastly, in past quarters, you've commented on targets for for fiscal '19. I think the last time you said it was going to be above the previous range of $11.40 to $11.90 , it looks like you're obviously well on your way there now. Any comments about that outlook for the year?
Dennis Polk--President & Chief Executive Officer
At this point in time Matt, we still stand behind our guidance of $11.40 to $11.90 for 2019. That was the guidance we gave at the beginning of the year. And then in the recent quarter we talked about the fact that we believe we can achieve at the high end of that range or even greater than that as the year plays out, clearly with two solid quarters behind us and we think a very solid guide for Q3, we are equally confident in our ability to achieve the comments regarding the guidance for 2019.
Marshall Witt--Chief Financial Officer
And Matt, this is Marshall. As you're probably aware, we did that primarily just for clarity around the Convergys acquisition. We've achieved that, so as we get ready for Q4 we'll provide our normal directional guidance on growth rates, economic growth IT spend, channel function, et cetera.
Matt Sheerin--Stifel. -- Analyst
Got it. Okay. Thanks a lot.
Mary Lai--Head of Investor Relations
Yeah.
Operator
Your next question is from Ananda Baruah with Loop Capital . Your line is open.
Ananda Baruah--Loop Capital Markets -- Analyst
Hey, congratulations, guys. Thanks for taking the question here. I guess the first one for me is with regards to just the synergies and just some context around the Convergys synergies. Is it -- you're tracking ahead and you gave us some metrics, I think $85 million exiting the quarter and that's well ahead of the year one target. And then you guys said that you expect to exceed the $150 million three-year target as well. Whether the -- like what are the different vectors around which sort of tracking ahead and then potentially exceeding our -- help us frame what perhaps kind of longer term synergy potential might be, just given what a strong start you are, active in integrating Convergys? And I have a follow up as well.
Christopher Caldwell--Executive Vice President & President
Yeah, Ananda, it's Chris. I would look at it slightly differently. From my perspective, I would look at the fact that, very confident $150 million we're going to achieve that. After that, it's just in our DNA to continue to manage costs and get drive leverage in the business. But we're also entering phases of reinvesting in the business to continue to support the growth. So it gets a little more murky after that $150 million. From my perspective, that's what's important to look at is our business case, our analysis looked at what we think we can achieve or over achieving that. We're going to hit $150 million and over achieve that. And then after that, just continuing to have it within our DNA of managing and growing a profitable business.
Ananda Baruah--Loop Capital Markets -- Analyst
And Chris, let me ask a follow on to that. Is it more useful to think about, given that you're achieving synergies more quickly? You were then more able to reinvest back in growth more quickly and is that the better way to think of it, the more -- I guess the more useful way to think about it, were actually you think about it. And then if the answer to that is yes, might that also be part of the reason that it seems like you're tracking to see your revenue goals a little bit more quickly as well?
Christopher Caldwell--Executive Vice President & President
Yeah, Ananda, we're not tapering growth to try and focus on synergies. We're investing in growth and we were investing in growth from day one to closing the deal, and continuing to be very opportunistic, investing in what we need to do to drive that business going forward. I think really where the growth has come from, as we've talked about, is driving sort of the benefits of the acquisition through to the client base, which has been very, very well received and we're seeing much quicker uptake on some of that, than we originally anticipated, hitting sort of a growth of where we are right now.
I think we've also focused our efforts more and we've talked about cleaning up the portfolio to drive a better margin profile that's allowed us to put more focus on sort of clients that are wanting to consume more services from us. So all of these things are just really what we kind of planned and focused on and are preplanning and then subsequently have been executing on once the deal is closed.
Ananda Baruah--Loop Capital Markets -- Analyst
That's really helpful. And just just a quick clarification here. Just in regards to the comments on high profitability, is that a year over -- sorry a quarter-over-quarter sequential profitability improvement comment? And that's it for me. Thanks.
Dennis Polk--President & Chief Executive Officer
Hi Ananda, this is Dennis. My comment was a year-over-year.
Ananda Baruah--Loop Capital Markets -- Analyst
Is that -- and Dennis, is that the most appropriate way to think about it, given the seasonality in the business?
Dennis Polk--President & Chief Executive Officer
Well, specifically to Hive, that's something, again, we've been talking about for some time as far as working on the profitability. so I would take that as a continual comment, not just a year-over-year investment in the business as far as trying to improve it going forward. We've been working on it for continual year and a half now. And again, I think we're reaching a point that we're very pleased with, but by no means will stop here, we're going to keep going.
Ananda Baruah--Loop Capital Markets -- Analyst
Okay, so structurally you're very please. Definitely, you thought structural move forward and you continue to. That sounds like it's the overarching message.
Dennis Polk--President & Chief Executive Officer
Yeah. We saw a structural move forward, but now we've got to keep that going.
Ananda Baruah--Loop Capital Markets -- Analyst
Okay, great. Thank you.
Dennis Polk--President & Chief Executive Officer
Thank you.
Mary Lai--Head of Investor Relations
Thank you.
Operator
Your next question comes from Tim Yang with Citi. Your line is open.
Tim Yang--Citigroup Inc, -- Analyst
Hey, thanks for taking the questions. Your TS operating margins have been up at 30 basis points to 40 basis points year-over-year in the past two quarters. Can you talk about how much is that from the top end (ph) average and how sustainable this margin expansion could be? Do you have a margin target for the TS segment given the current and exposure and investment you've made?
Marshall Witt--Chief Financial Officer
Tim, this is Marshall. I hope I understood your question. The majority of the growth at the Q1, Q2 year-over-year has been strong. There's been some basis point attribution to gross versus net 8 bps, 9 bps, 10 bps, generally says the portfolio supplement technology solutions standpoint has been broadly based and equal in contribution.
Tim Yang--Citigroup Inc, -- Analyst
Got you. And do you have a target for the TS segment margins given the current exposure and also the implementing phase (ph).
Marshall Witt--Chief Financial Officer
Yes, Tim. You know us, we're always going to have a goal to improve that.
Tim Yang--Citigroup Inc, -- Analyst
Got you, thanks. And then on seasonality, we assume the Concentrix to be flat sequentially in August quarter. It appears that your TS in August quarter would be down slightly on quarter-over-quarter basis. I think last year you had a similar seasonality, but normally the last quarter to be up sequentially in the past few years. Should we expect that current cadence to be the seasonality going forward or are we seeing any more demand pulling forward in the TS segment in May quarter? Thanks.
Marshall Witt--Chief Financial Officer
Yes. Tim, good question. As we've stated in the last couple years, our business is a lot different today. You think about, that's why we highlight gross revenue from a build (ph) perspective, because I get a better sense of how we're growing year-over-year. A couple of things we might look to. We have one less day this quarter than last, so that makes the sequential comparisons a little bit different. We're also mindful of the fact that we're going to be conservative in our guidance that always resets things to some extent. And also be aware of some of the headwind on FX and how that plays into our Q3 guidance.
Tim Yang--Citigroup Inc, -- Analyst
Got it, thank you.
Marshall Witt--Chief Financial Officer
Thank you.
Mary Lai--Head of Investor Relations
Thank you.
Operator
At this time, I'll turn it back over to Mary Lai for any closing remarks.
Mary Lai--Head of Investor Relations
Thank you, everyone, for joining us today and appreciate your time. And we look forward to speaking with you next time.
Operator
This concludes today's conference. You may now disconnect.
Duration: 40 minutes
Mary Lai--Head of Investor Relations
Marshall Witt--Chief Financial Officer
Dennis Polk--President & Chief Executive Officer
Christopher Caldwell--Executive Vice President & President
Shannon Cross--Cross Research. -- Analyst
Vincent Colicchio--Barrington Research -- Analyst
Adam Tindle--Raymond James. -- Analyst
Matt Sheerin--Stifel. -- Analyst
Ananda Baruah--Loop Capital Markets -- Analyst
Tim Yang--Citigroup Inc, -- Analyst
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2019 FIFA Women's World Cup: France's Wendie Renard waiting to rough up Alex Morgan, USWNT
PARIS — Wendie Renard stands 6-foot-2 and often plays with flowing hair that makes her rise even higher on the pitch. She is the tallest player in the Women’s World Cup, perhaps its most unique talent, and quite possibly the single-most formidable obstacle in the United States’ path to a championship. The Americans play Renard’s French national team Friday (3 p.m. ET) in the quarterfinals here. The two clubs are ranked Nos. 1-2 in the world and are the favorites to win the tournament. FIFA pingpong balls set this matchup early, a potential de facto title game in the round of eight. The French have two wins and a draw in their last three matches against the U.S., including a 3-0 victory in January. The roster is littered with great players. Renard may not even be the best, but she certainly stands out, and not solely due to her stature. She is a forceful, physical defender who locks down the middle with partner Griedge Mbock Bathy. For an American team that failed to record a single shot on goal in a 2-1 victory over Spain in the Round of 16 (both goals came on penalty kicks), her ability to potentially shut down the 5-foot-7 Alex Morgan and snuff out attacks is a major concern. Then, due to her height, Renard is an immense challenge at the other end of the field during French set pieces and corner kicks. She can simply get her forehead on balls that no one else can, making her a threat at any moment of the game. Renard even scored on a penalty kick in a Group stage victory over Nigeria. To get that kind of offense from a backline player is a major bonus for any team. “She’s great in the air,” said U.S. midfielder Samantha Mewis. “And I think our setup on set pieces will remain the same and you just have to make sure we are doing our job and watching out for her because she is definitely dangerous.” Wendie Renard, France's physically imposing center back, presents all kinds of challenges to the USWNT. (Getty) Part of the challenge of playing against Renard is there’s almost no way to prepare for her. You just don’t regularly compete against players with her size, skill and smarts every day. Mewis, listed at 6-foot even, is the tallest American on the roster. Story continues The 28-year-old Renard grew up a self-described “tomboy” on the Caribbean Island of Martinique, which is part of France. There wasn’t much of a system of girls youth soccer there, but she would play regularly against the boys on the beach or the crowded streets. Obsessed with the French men’s national team, she told her mother and teachers she would be a professional football player even though it seemed impossible at the time. At 16 she traveled to France for a tryout with the national program. She didn’t make it, but it did earn her a slot at Olympique Lyonnais, the women’s professional powerhouse where a number of top of French national team players compete. She made the national team by age 20 and was a captain by 23, although she doesn’t presently hold the title. Regardless, there is no questioning her impact on every game she plays. She isn’t just big and tall. She’s very sharp and skilled. “She’s a very well-rounded player,” Mewis said. “We all have so much respect for her.” Her first job will be to stop Morgan and an American attack that has scored 20 goals in four games. While that’s impressive, against Spain the U.S. attack was too often forced to take long shots that missed the net. The goals came due to fouls committed in the box and were a sign of possession and field control. It wasn’t a sharp offense, though. “As a forward, you always want to score in run of play,” Morgan said. One of the keys was Spain’s willingness to play physically, especially with Morgan, who drew five fouls among perhaps a dozen hard collisions. “I don’t recall it being this physical, this aggressive, this reckless,” Morgan said of her previous experience against Spain. “I wasn’t expecting that. It was a very challenging game and it showed a little bit of what we might see in France, some things at least.” The U.S. almost always has the size and strength advantage in games. Whatever they lack in technical or tactical skills they generally make up for in raw power and speed. They are deep with athletes. None though is Wendie Renard, an impossible-to-ignore figure in every imaginable way. More from Yahoo Sports: Rapinoe: ‘I’m not going to the f---ing White House’ Machado feels the love in his return to Baltimore Iggy says Warriors called fractured leg a ‘bruise’ Women’s World Cup is succeeding, no thanks to FIFA |
Is It Too Late To Consider Buying Diplomat Pharmacy, Inc. (NYSE:DPLO)?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Diplomat Pharmacy, Inc. ( NYSE:DPLO ), which is in the healthcare business, and is based in United States, received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Diplomat Pharmacy’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Diplomat Pharmacy What is Diplomat Pharmacy worth? Good news, investors! Diplomat Pharmacy is still a bargain right now. According to my valuation, the intrinsic value for the stock is $8.74, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Diplomat Pharmacy’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range. What does the future of Diplomat Pharmacy look like? NYSE:DPLO Past and Future Earnings, June 26th 2019 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 95% over the next couple of years, the future seems bright for Diplomat Pharmacy. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. What this means for you: Are you a shareholder? Since DPLO is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Story continues Are you a potential investor? If you’ve been keeping an eye on DPLO for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DPLO. 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 Diplomat Pharmacy. You can find everything you need to know about Diplomat Pharmacy in the latest infographic research report . If you are no longer interested in Diplomat Pharmacy, you can use our free platform to see my list of over 50 other stocks with a high growth potential . We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
EBay Is Crashing Amazon Prime Day 2019
EBay plans to crash Amazon’s annual discount extravaganza, Prime Day 2019.
EBaysaidon Wednesday that it would hold a one-day Crash Sale on July 15, coinciding with the kickoff to Amazon’s two-day Prime Day.
The term “Crash Sale” is clearly an effort by EBay totroll Amazon. Last year, Amazon’s website briefly crashed after customers flooded the site.
Tongue in check,eBaysaid on Wednesday that if Amazon’s site crashes, its site would be ready for shoppers. Amazon hasn’t responded to the joke or commented on whether it has done anything to avoid another crash.
Amazon, which announced itsPrime Day sales dates on Tuesday,promised deals on millions of products, including televisions, Amazon Alexa-based devices like the Amazon Echo, and products from small and medium-sized business partners on Amazon Marketplace. Last year, Amazon said customers bought more than 100 million products during the two-day Prime Day and that it broke its single-day sales record.
Since Amazon Prime Day has become such a big shopping event, it’s little surprise that eBay is trying to insinuate itself into it. Although it started as an auction site, eBay has heavily shifted into fixed-price retail, including by major retailers, in an effort to compete with Amazon and others.
In a sign of Prime Day’s power, eBay isn’t alone in trying to capitalize on it.Targetsaidon Tuesday that it would also offer deals on hundreds of thousands of products on July 15 and July 16.
Other Amazon competitors, likeBest Buy,Walmart, and NewEgg, haven’t mentioned anything about debuting rival discount days to Prime Day. But if eBay and Target are any indication, Prime Day, or at least the dates on which it falls, is quickly becoming as big a shopping holiday as Black Friday and Cyber Monday, the bookends to the busy Thanksgiving shopping holiday.
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Quayside: Alphabet pushes for a smart city that would run on data
Google’s parent Alphabet is trying to make the case for its smart city plans on a 12-acre lot on Toronto’s waterfront. Alphabet has promised to commit $1.3 billion to the project, dubbed Quayside, if it gains approval.
“So the idea is to use cameras and sensors to track people in cars and basically make things more efficient and more ecological,” Yahoo Finance Canada senior editor Jeff Lagerquist explained on YFi AM. “There's all sorts of crazy bells and whistles like giant buildings made of timber, illuminated sidewalks, curbs that go up and down, heated bike lanes, but the real issue here is the data.”
Sidewalk Labs, the sister company to Google spearheading the project, released a1,524-page documentdetailing the plans for the area. The company promises to protect the data collected in the mini-city, which will be almost completely outfitted with sensors to track everything from pedestrians’ movements to cars to the weather.
Alphabet has faced backlash for the project since it was first announced in 2017, but the recent document is the most comprehensive look at how the company wants to implement the vision.
The latest outline proposes all that data would be entrusted to a government-sanctioned entity and thus out of the hands of Sidewalk and Alphabet.
Such a plan was in the works when the project’s privacy lead stepped down in October. The Toronto Star originallyreported the resignationof Ann Cavoukian, former Information and Privacy commissioner of Ontario, who was heading up Sidewalk’s privacy efforts.
In her resignation, Cavoukian asked Sidewalk Labs to “think of the consequences: If personally identifiable data are not de-identified at source, we will be creating another central database of personal information (controlled by whom?), that may be used without data subjects’ consent, that will be exposed to the risks of hacking and unauthorized access.”
The development plan includes “the first neighborhood built entirely of mass timber, dynamic streets that can adapt to a neighborhood’s changing needs, weather mitigation systems, and a thermal grid for heating and cooling.”
Sidewalk Labs is promising Quayside would be “a place where people are more engaged with their world than with their phones.” The documents states that would include safer streets, more breathable air, and more walkable streets.
All of the tech needed to create the kind of self-regulating city Sidewalk is proposing lends itself to an almost endless influx of data points primed for collection.
For example, the mini-city’s “Overview of the ‘Building Efficiency’ Pilot,” makes the case for data collection in order to “optimize energy use.” This includes installing “new sensors and [using] existing data sources, such as energy bills.”
Sidewalk Labs has created afully taxonomic languagein order to better understand what data is would be collected and how, as well as what it will be used for. But the plans for the government-sanctioned trust to protect the data have not been finalized.
What has been confirmed by the city’s extensive plans is that all the data collected from the Building Efficiency pilot will be stored “on servers located in the U.S. The data is not sold to third parties or used for advertising.”
Should this pilot program be successful and later implemented in other sectors of data collection, the storage of data in the U.S. would likely become standard.
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YouTube Lets Users Override Recommendations After Criticism
(Bloomberg) -- YouTube said it will let users override automated recommendations after criticism over how the online video service suggests and filters toxic clips.
"Although we try our best to suggest videos you’ll enjoy, we don’t always get it right, so we are giving you more controls for when we don’t," Essam El-Dardiry, a product manager at YouTube, wrote in a blog on Wednesday.
Users will now be able to tell YouTube to stop suggesting videos from a particular channel by tapping the three-dot menu next to a video on the homepage or Up Next, then choosing “Don’t recommend channel.” After that, viewers should no longer see videos from that channel, El-Dardiry said.
The move comes after Susan Wojcicki and other YouTube executives were criticized for being either unable or unwilling to act on internal warnings about extreme and misleading videos because they were too focused on increasing viewing time and other measures of engagement.
While YouTube is introducing the feature now, this kind of tool is pretty common place on other digital services. Spotify Technology SA has a version for artists people don’t want to hear from.
YouTube, part of Alphabet Inc.’s Google, will also try to explain how videos are recommended.
"Sometimes, we recommend videos from channels you haven’t seen before based on what other viewers with similar interests have liked and watched in the past. When we’re suggesting videos based on this, you’ll now see more information underneath the video in a small box," El-Dardiry wrote. "Our goal is to explain why these videos surface on your homepage in order to help you find videos from new channels you might like."
To contact the reporters on this story: Lucas Shaw in Los Angeles at lshaw31@bloomberg.net;Gerrit De Vynck in New York at gdevynck@bloomberg.net
To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Alistair Barr, Molly Schuetz
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Police caution naked moped rider in Germany
The man stripped to cope with the heatwave in Germany. (Brandenburg Police) Heatwaves can cause people to behave in strange ways - but this German moped rider went too far. Police in Brandenburg pulled over the sweaty rider after he’d completely stripped off - because he said he was ‘too hot’. He was spotted on a scooter as record-breaking heat swept through parts of Europe this week, with Germany roasting in temperatures of 40C. Meanwhile, Germans took to Twitter to write their own tongue-in-cheek captions for the police picture of the cheeky rider in his birthday suit. Temperatures have reached record highs across Germany. (Brandenburg Police) One person said: “How, I have nothing on!? The two tailors said that would be very special fabric..." Another remarked: “Maybe it was special fabric that he smoked…” One Twitter user poked fun at the man not understanding why the police stopped him. He said: “Police: Guess why we stopped you? Man: Was I too fast? Police: Guess again!.” Andre J said the man perhaps had to remove his clothes as otherwise there would be “too much luggage” on the bike. Other people commended the man for at least wearing a helmet. Read More on Yahoo News Three dead in European 'hell' heatwave as Britain braces for 31c weekend temperatures UK weather: Temperatures could soar to 35C by Saturday but not before heavy rain and thunderstorms This comes as a 32-year-old main rural Germany ran through the freezer section of a supermarket naked in a bid to cool off. According to reports, three people have died in France so far this week in the south of the country - one on Monday and two yesterday - after diving into the sea to cool off causing their deaths by ‘cold shock’. Meteorologists have blamed climate change for disrupting weather patterns which has forced a blast of air from the Sahara desert into Western Europe. The intense heat has caused wildfires outside Berlin and the Red Cross has warned that the heat could cause dizziness and even hallucinations. ---Watch the latest videos from Yahoo UK--- |
Khloe Kardashian Just Implied She's in Love Again and Everyone Is Traumatized
From Cosmopolitan Khloé Kardashian posted an Instagram implying that she's in love after the Tristan Thompson cheating scandal. Khloé and Tristan broke up after he allegedly kissed Kylie Jenner's best friend Jordyn Woods at a party. It's 2019 and no one can agree on anything! But one thing that unites us as a country? The fact that Khloé Kardashian has BEEN THROUGH IT. Not only was Khloé cheated on by Tristan Thompson when she was nine months pregnant, he cheated again with Kylie Jenner's best friend Jordyn Woods. And on top of that, we recently learned that Khloé had a pregnancy scare, was throwing up blood, and went blind in one eye from migraines shortly before Scandal 2.0 went down. Like...things have not been great. But in less blood-vomit-cheating news, Khloé finally seems to have moved on from Tristan. At least the vibe fans are getting from her recent Instagram post, which certainly reads like a "hi everyone I'm in love" announcement. As you can see, Khloé's post is basically just the song lyric "wise men say, only fools rush in, but I can't help falling in love with you." View this post on Instagram 🎶 but I can’t help falling in love with you 🎶 A post shared by Khloé (@khloekardashian) on Jun 26, 2019 at 7:01am PDT I'll give you a moment to do this: Photo credit: Giphy And look, if Khloé's in love, we should be happy for her. But tbh, the comments on this post are full of people not having it. First, there are the fans who think this is about Tristan (um, it's clearly not), and feel the need to drag Khloé: Photo credit: Instagram But mostly Khloé's dealing with people who don't think she should be diving into another relationship already. Comments include: "I guess the wise man didn’t have this conversation with you." "Well thm you’re a damn fool, knowing how you rushed your relationship with you know who." "Lmaooo are you calling yourself a FOOL?" "He’s not worth it sis." Like, dang can't a girl post some Elvis lyrics in peace? Let Khloé live! ('You Might Also Like',) 16 Unexpected Fashion Rules That the Royal Family Follows The 8 Best Clarifying Shampoos for Getting Rid of Product Buildup Here's How to Flawlessly Conceal Your Acne |
Are Superior Plus Corp.’s (TSE:SPB) Returns Worth Your While?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we'll look at Superior Plus Corp. (TSE:SPB) and reflect on its potential as an investment. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires.
Firstly, we'll go over how we calculate ROCE. Then we'll compare its ROCE to similar companies. Last but not least, we'll look at what impact its current liabilities have on its ROCE.
ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. All else being equal, a better business will have a higher ROCE. Ultimately, it is a useful but imperfect metric. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'.
The formula for calculating the return on capital employed is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Superior Plus:
0.072 = CA$236m ÷ (CA$3.7b - CA$425m) (Based on the trailing twelve months to March 2019.)
Therefore,Superior Plus has an ROCE of 7.2%.
View our latest analysis for Superior Plus
When making comparisons between similar businesses, investors may find ROCE useful. Using our data, Superior Plus's ROCE appears to be around the 7.2% average of the Gas Utilities industry. Setting aside the industry comparison for now, Superior Plus's ROCE is mediocre in absolute terms, considering the risk of investing in stocks versus the safety of a bank account. Readers may find more attractive investment prospects elsewhere.
In our analysis, Superior Plus's ROCE appears to be 7.2%, compared to 3 years ago, when its ROCE was 3.7%. This makes us think about whether the company has been reinvesting shrewdly.
Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company.
Current liabilities are short term bills and invoices that need to be paid in 12 months or less. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counteract this, we check if a company has high current liabilities, relative to its total assets.
Superior Plus has total assets of CA$3.7b and current liabilities of CA$425m. Therefore its current liabilities are equivalent to approximately 12% of its total assets. This very reasonable level of current liabilities would not boost the ROCE by much.
That said, Superior Plus's ROCE is mediocre, there may be more attractive investments around. But note:make sure you look for a great company, not just the first idea you come across.So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20).
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Country singer dedicates song about heaven to Granger Smith
Justin Moore took the stage at Country Fest in Ohio with a fellow country singer on his mind as he dedicated a song to Granger Smith and his late son, River. Justin Moore dedicated a song to Granger Smith and his late son during a set on Friday. (Photo: Getty Images) Before playing “If Heaven Wasn’t So Far Away” during his set on Friday, Moore shared a few words about Granger and his wife, Amber Smith, whose youngest child died in a drowning accident just a few weeks prior. “The last time I played here, Granger Smith was here with us, we got to play with Granger. Granger and his wife have dealt with a difficult time over the last two or three weeks, and not only do we want to send our condolences out to them, thoughts and prayers,” Moore said, “but I want to send this song right here out to he and his wife, and his son, who is up in heaven right now.” Moore’s sweet tribute was posted to social media by a fan. But it wasn’t the only performance that audiences cried along to this week. Granger Smith appeared at the Country LakeShake Festival in Chicago on Sunday, where he sang a song titled “Heaven Bound Balloons” while also debuting a new “River” tattoo. The best & worst moment at @LakeShakeFest @GrangerSmith singing Heaven Bound Balloons. We could see & feel the pain in all their eyes, but when G pulled out McQueen? Gut wrenching! We love you Granger! Thank you for being you. You’re stronger than you know. #LiveLikeRiv pic.twitter.com/UORnaSgEnR — Laura Mathis (@MrsLauraM) June 24, 2019 River. ❤️ @GrangerSmith @LakeShakeFest pic.twitter.com/aCm5ZkOpha — Laura Mathis (@MrsLauraM) June 24, 2019 The performance was Granger’s first since River’s death. The singer made another public appearance on Tuesday to present a $218,000 donation to Dell Children’s Hospital in Texas, where doctors and nurses tried desperately to save his son. Story continues Our care teams gathered today to receive a donation from Granger Smith & his family in memory of his son, River. “I don't know how you do it, but I thank God every day that there are people like you that love what you do and are so passionate about it," said Granger. pic.twitter.com/XVSNQJ4T3n — Dell Children's (@dellchildrens) June 25, 2019 Read more on Yahoo Entertainment: Country music stars mourn the tragic death of singer Granger Smith's 3-year-old son Granger Smith's wife Amber shares heartbreaking post while mourning son Maren Morris says she lost 5,000 social media followers after sharing photo of Parkland shooting survivor: 'Not many country artists speak up' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
Gold ETFs Likely to Rule 2H Irrespective of Fed Rate Cut
Gold prices are hovering around a six-year high currently and may hit more highs in the coming days. The yellow metal is set to record the best monthly gain of 9.49% since February 2016, per forbes.com. A subdued greenback amid talks of Fed policy easing and geopolitical tensions have propelled the yellow metal higher in the past month.
However, after a sturdy month-long rally, gold is now into a short-term overbought condition and is thus due for a correction. This is especially true given that Fed Chair Powell has dimmed the prospects of a near-term rate cut in the recent session. On Jun 25, Powell said that the central bank is “insulated from short-term political pressures.”
Separately, St. Louis Fed President James Bullard told Bloomberg Television that the U.S. economy is not awful enough to require a 50-basis-point cut in July. Such comments led the greenback to gain strength, which could act as a weakness to gold investing in the near term.
Still, the second half of the year looks bright for gold investing. Gold is likely to touch $1550 (from the current level of $1409) in the next few months, per an analyst. Below we highlight why (read: Go for Safe-Haven ETFs Amid Rising Geopolitical Risks).
Why Gold Could Rally in 2H
The Fed Chair acknowledged the downside risks related to U.S. tariffs and weak inflation in the recent session.As of Jun 25, according to CME FedWatch tool, there is a 64.2% chance of a 50-bp rate cut in the Sep 18 meeting, followed by a 29.6% probability of 75-bp rate cut and 16.1% likelihood of a 25-bp rate cut. Even if the Fed doesn’t cut rates, it would at least not hike that. So,overall easy policy would support gold prices.
Investors should note that stocks have rallied in recent times in anticipation of a hefty rate cut. Now, if the Fed reacts in a different way, we expect to see ashort-term slide in the stock market. And if that happens, safe-haven asset gold would spring higher.
Of late,geopolitical tensions between Iran and the United Statesflared up after officials from both countries said Iran downed a U.S. military drone near the Strait of Hormuz. In any case, both parties have been at loggerheads for about a year. Most recently, President Donald Trump announced that the United States will levy "major" incremental sanctions on Iran in order to prevent it from procuring nuclear weapons. This kind of geopolitical tension is another tailwind for gold rally (read: Iran Downs U.S. Drone: Sector ETFs & Stocks to Gain).
U.S.-China relations are also sour. Just before the G-20 meet where Trump and China’s premiere Xi are supposed to talk about trade, five additional Chinese companies are barred from purchasing U.S.-made components. Analysts believe that chances of a more comprehensive deal appear far-off. This is yet another reason for a likely spurt in safe havens (read: 3 Low-Volatility Stocks & ETFs to Buy).
Central banks’ gold buyingis yet another strength. Some of these contributed to a 7% rise in global gold demand in the first quarter from a year earlier, according to the World Gold Council, published on Financial Times. Russia was the biggest buyer during the period, followed by China. The momentum carried on in the second quarter too.
ETFs in Focus
Against this backdrop, investors can keep track of regular gold ETFs likeSPDR Gold TrustGLD,iShares Gold TrustIAU,Aberdeen Standard Physical Swiss Gold Shares ETFSGOL andSPDR Gold MiniShares TrustGLDM and leveraged ETFs likeVelocityShares 3x Long Gold ETNUGLD,DB Gold Double Long ETN (DGP),ProShares Ultra GoldUGL,DB Gold Double Short ETN (DZZ)andVelocityShares 3x Inverse Gold ETN (DGLD)(see all precious metals ETFs here).
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Click to get this free reportDB-GOLD DBL SHT (DZZ): ETF Research ReportsSPDR Gold Shares (GLD): ETF Research ReportsVelocityShares 3x Long Gold ETN linked to the S&P GSCI Gold In (UGLD): ETF Research ReportsProShares Ultra Gold (UGL): ETF Research ReportsVelocityShares 3x Inverse Gold ETN linked to S&P GSCI Gold Ind (DGLD): ETF Research ReportsiShares Gold Trust (IAU): ETF Research ReportsDB GD 2XL (DGP): ETF Research ReportsAberdeen Standard Physical Swiss Gold Shares ETF (SGOL): ETF Research ReportsSPDR Gold MiniShares Trust (GLDM): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
What Investors Should Know About Superior Plus Corp.'s (TSE:SPB) Financial Strength
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While small-cap stocks, such as Superior Plus Corp. (TSE:SPB) with its market cap of CA$2.3b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Evaluating financial health as part of your investment thesis is essential, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. However, potential investors would need to take a closer look, and I recommend youdig deeper yourself into SPB here.
SPB has built up its total debt levels in the last twelve months, from CA$1.0b to CA$1.9b , which includes long-term debt. With this increase in debt, SPB's cash and short-term investments stands at CA$23m to keep the business going. Moreover, SPB has generated cash from operations of CA$315m during the same period of time, resulting in an operating cash to total debt ratio of 16%, indicating that SPB’s operating cash is less than its debt.
At the current liabilities level of CA$425m, the company has been able to meet these commitments with a current assets level of CA$567m, leading to a 1.33x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Gas Utilities companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
Since total debt levels exceed equity, SPB is a highly leveraged company. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. We can test if SPB’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 SPB, the ratio of 2.64x suggests that interest is not strongly covered, which means that lenders may be more reluctant to lend out more funding as SPB’s low interest coverage already puts the company at higher risk of default.
SPB’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. Since there is also no concerns around SPB's liquidity needs, this may be its optimal capital structure for the time being. Keep in mind I haven't considered other factors such as how SPB has been performing in the past. You should continue to research Superior Plus to get a more holistic view of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SPB’s future growth? Take a look at ourfree research report of analyst consensusfor SPB’s outlook.
2. Valuation: What is SPB 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 SPB 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. |
Apple Hires Key Chip Designer From ARM as Own Efforts Ramp Up
(Bloomberg) -- Apple Inc. hired one of ARM Holdings Inc.’s top chip engineers as the iPhone maker looks to expand its own chip development to more powerful devices, including the Mac, and new categories like a headset.
The company hired Mike Filippo in May for a chip architect position, according to his LinkedIn profile. At ARM, Filippo was a lead engineer behind chip designs that power the vast majority of the world’s smartphones and tablets and was leading a new push into parts for computers. ARM, owned by SoftBank Group Corp., designs microprocessors and licenses technology that is fundamental to the chip development efforts of Apple, Samsung Electronics Co., Qualcomm Inc. and Huawei Technologies Co.
Prior to his work at ARM, Filippo was also a key designer at chipmakers Advanced Micro Devices and Intel Corp. ARM confirmed Filippo’s departure. Apple didn’t respond to a request for comment.
“Mike was a long-time valuable member of the ARM community,” a spokesman for the U.K.-based company said. “We appreciate all of his efforts and wish him well in his next endeavor.”
For Apple, the hire could help fill the void left by the departure of Gerard Williams III earlier this year. Williams was Apple’s head architect of chips used in the iPhone and iPad. Apple’s A series chips power its mobile devices using ARM technology. Its Mac computers have used processors from Intel for nearly two decades.
The company initiated a plan several years ago to replace Intel chips in its Mac computers with processors based on the ARM architecture as early as 2020. Filippo’s experience in more advanced chips like those in servers would assist in that effort. The company is also planning to expand its in-house chip making work to new device categories like a headset that meshes augmented and virtual reality, Bloomberg News has reported.
To contact the reporters on this story: Mark Gurman in San Francisco at mgurman1@bloomberg.net;Ian King in San Francisco at ianking@bloomberg.net
To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net, Andrew Pollack, Alistair Barr
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
5 Top Stocks to Buy in July
It's hard to believe, but 2019 is halfway over. Even though the first half of the year has been turbulent at times, the trade war persists, there's lots of uncertainty surrounding what the Federal Reserve will do next, and tensions with Iran are heating up, the stock market is knocking on the door of new record highs.
Despite the overall high stock prices, there are still some attractive opportunities to be found. We asked five of our top contributors what stocks look most interesting to them, and here's why they thinkPayPal(NASDAQ: PYPL),Shopify(NYSE: SHOP),iRobot(NASDAQ: IRBT),Store Capital(NYSE: STOR), andPattern Energy Group(NASDAQ: PEGI)look especially appealing.
The weather is hot, and so is the stock market. Here are some stocks that could still be good deals. Image source: Getty Images.
Matt Frankel, CFP(PayPal):One stock that popped onto my radar recently is payments giant PayPal, which has had a tremendous year so far. The stock is up by about 35% so far in 2019, but it recently pulled back after it was announced that COO Bill Ready plans to leave the company at the end of this year.
To be fair, it's understandable that the market wouldn't be thrilled about this news. After all, Ready had been expected to play a key role in the monetization of the ultra-popular Venmo platform going forward. Ready had also been a driving force behind PayPal's strategic move to turn the company's largest competitors, such asVisa,Mastercard,Apple, and others, into partners.
However, keep in mind that Ready is staying on for another six months in order to ensure a smooth transition of leadership. Plus, it's important not to lose sight of PayPal's long-term potential, no matter who is in charge. After all, Venmo's total payment volume grew at a staggering 73% year-over-year pace in the first quarter, and even PayPal's core merchant services payment volume continues to grow rapidly, with a 29% rise.
PayPal continues to add new users to its platform, despite its already massive size. During the first quarter alone, the company added 9.3 million new active users and processed $161 billion in payments -- that's an annualized pace of more than$640 billion. New partnerships with Instagram,MercadoLibre, and others have the potential to fuel even more growth.
Still, Venmo remains the company's most promising long-term profit engine. The wildly popular payment platform has more than 40 million active accounts and is processing payment volume at an annualized rate of more than $84 billion -- and growing fast. And, Venmo has been integrated into several popular platforms, such asUber,Grubhub, Fandango, Hulu, and more. In short, as Venmo becomes more and more useful on a daily basis for consumers, adoption will continue to increase, and payment volumes will continue to rise -- after all, while 40 million users is certainly impressive, Venmo's current user base represents only about 15% of the adult population of the United States.
And Venmo is still in the early stages of monetization. Things like the Venmo debit card, Instant Transfer, and Pay with Venmo helped increased the platform's annualized revenue run rate by 50% to $300 million over the first three months of 2019 alone. Even so, this is a drop in the bucket when you consider that PayPal expects about $18 billion in revenue this year. However, as Ready said during the company's first-quarter earnings call, Venmo users are "deepening their engagement with us and are looking for more and more products from us." So, the potential to multiply the revenue run rate several times over is certainly there.
In short, PayPal is growing tremendously, and if the company is able to successfully monetize its Venmo platform, there could be tremendous upside ahead.
Chris Neiger(Shopify):If you haven't heard of Shopify, now is an excellent time for a proper introduction to this growing e-commerce opportunity. The company's cloud-based platform allows businesses of all sizes to easily set up their own online stores and begin selling their products and services.
Why should investors care about Shopify's e-commerce platform? Because the company is helping businesses transition to the fast-growing e-commerce market that's expected to be worth $24trillionby 2025. E-commerce sales will account for just 11% of all retail sales in the U.S. year, which means there's still plenty of room for Shopify to help bring more merchants online.
Fortunately for Shopify (and its investors), the company has already been very successful at tapping into this e-commerce opportunity. Shopify has grown the number of merchants who use its platform from 500,000 to more than 800,000 in less than two years. And with that rapid growth has come impressive sales. In themost recent quarter, Shopify's revenue grew 50% year over year to $320.5 million, and its adjusted net income topped $10 million, up from $4.2 million in the year-ago quarter.
Shopify's sales come from the company's two revenue segments: subscription solutions and merchant solutions, both of which are performing well. The subscription solutions segment includes sales generated from subscriptions to the company's platform, along with add-on items like website themes and domain sales. In the first quarter of this year, subscription solutions sales popped 40% year over year and accounted for 44% of the company's top line.
Shopify's merchant solutions business, which is primarily driven by charging payment processing fees to merchants, is also on the rise and jumped 58% from the year-ago quarter to $180 million.
Additionally, Shopify is experiencing strong growth from the company's Shopify Plus service, which is a platform for its enterprise customers. Shopify Plus now accounts for 26% of the company's monthly recurring revenue, and Shopify just redesigned the service to make it even more useful to its clients than ever before.
If all of that weren't enough, Shopify recently said that it's launching a new fulfillment service with a "dedicated network of fulfillment centers that will ensure timely deliveries, and lower shipping costs" for its customers. This is a big move for Shopify, one that the company isinvesting $1 billionto make, and it will help it better compete withAmazonas it attempts to lure more businesses to its platform.
Investors looking to tap into the growing e-commerce market should give Shopify's shares strong consideration. The company is quickly growing its sales, it has tons of room to tap further into the U.S. e-commerce market, and its recent move into fulfillment could make it a compelling alternative to Amazon for many businesses.
Steve Symington(iRobot):Down more than 30% since the day before itsfirst-quarter 2019 reportin late April, it seems an understatement to say shares of iRobot have been taken to the cleaners over the past two months.
The thing is, while iRobot's quarterly revenue (up 9.5% to $237.7 million) technically arrived below Wall Street's expectations (for $251 million), CFO Alison Deaninsistedduring the subsequent conference call that sales were in line with iRobot's internal targets. To that end, iRobot reaffirmed its full-year guidance for revenue to increase 17% to 20% year over year, or to a range of $1.28 billion to $1.31 billion, and for operating income in the range of $108 million to $118 million.
That raises the question: Given its surprisingly soft start, how will iRobot close the gap over the rest of the year? In the near term, company chairman and CEO Colin Angle is counting on a combination of continued "strong global demand" for iRobot's current products, followed by an acceleration brought on by the recent launch of two new products. The latter includes its vastly more powerful Roomba s9+ robotic vacuum and Braava jet m6 floor-mopping robots, which can actually work together using a new "Linked clean" process totag-team your cleaning duties.
Later this year, iRobot will alsolaunch its new Terra robotic lawn mower-- first in Germany and as a beta program in the United States -- which should effectively open the (patio) doors to a new multibillion-dollar market. That's also not to mention the fruits of iRobot'srecent partnership to advance smart-home technologieswithAlphabetsubsidiary Google, which I've argued could be the impetus for an acquisition down the road. And over the longer term, iRobot has expressed interest in creating niche robotics solutions to tackle tasks like bathroom cleaning and laundry folding.
But I'd be remiss if I didn't offer a few notes of caution.
First, the Roomba s9+ and Braava jet m6 areexpensive, retailing for a whopping $1,300 (with the S9+ automatic dirt disposal system) and $500, respectively, and the Terra will almost certainly cost even more. Though the company has carved out an enviable position catering to robotics consumers who haven't been particularly sensitive to its premium price points over the years, its latest lineup will definitely put that position to the test.
Relatedly, by diversifying its supply chain and selectively raising prices, iRobot has been successful so far in offsetting the incremental cost of tariffs on products manufactured in China and imported to the United States. But if the U.S.-China trade war escalates further, it could severely hamper iRobot's ability -- at least in the short term -- to extend that success.
Here again, however, I think much of that risk has already been priced into iRobot's stock price today. For patient, long-term shareholders willing to buy now and hold iRobot as it dominates the nascent home-robotics industry in the coming years, I believe the pullback is an excellent opportunity to open or add to a position.
Todd Campbell(STORE Capital):The Federal Reservesignaledin June that the next move in interest rates is more likely to be lower rather than higher. That's great news for real estate investment trusts, or REITs, because they rely heavily on debt to finance real estate purchases and a stable economy to maintain high occupancy rates.
There's no guarantee the Fed will cut the Fed funds rate, but its latest stance suggests higher borrowing costs aren't a threat anymore to STORE Capital, a REIT specializing in free-standing retail real estate.
Brick-and-mortar retail has struggled to shrug off declining sales due to e-commerce, but most of the industry's pain has been felt by mall operators, not owners of freestanding buildings like STORE Capital. Furthermore, unlike mall REITs, Store Capital's tenants are mostly service-oriented businesses, such as movie theaters, or businesses that are less at risk of disruption by Internet sales, such as furniture stores. This focus helps insulate it against the risk of store closures due to increasing online shopping trends.
Serving tenants resistant to e-commerce isn't STORE Capital's only edge, either. It also builds in protection from single-store failures by requiring unit level financial reporting from tenants on 98% of its 2,500 properties. This insight is another reason its occupancy rate was 99.7% in the first quarter.
The company also benefits from buying properties below their replacement cost, providing it with greater financial flexibility. For instance, it spent $400 million on new properties in Q1, and the average purchase was made at roughly 71% of its replacement cost.
Spending on new properties is a big reason STORE Capital's interest expense increased to $38.1 million from $29.3 million in the past year, but some of the increase was also due to average interest rates edging up five basis points. If interest rates fall, the company may be able to refinance existing debt and take on new debt at more favorable rates, providing a tailwind to its funds from operations (FFO), a measure that indicates how much money is available for shareholder-friendly dividends.
Since STORE Capital has already demonstrated it can grow FFO in a rising rate environment, it should be good news for investors if rates drop. For perspective, the combination of more properties and 2% annual rent increases on existing properties helped its adjusted-FFO increase 26% to $108 million in the first quarter. It currently pays a quarterly dividend of $0.33 per share, up from $0.31 per quarter last year, but it wouldn't surprise me if another dividend increase is coming because its dividend payout ratio is less than 70%. As of this writing, shares currently yield 3.79%.
High occupancy rates and its diligence in vetting tenants have made STORE Capital one of the most interesting REITs out there, a perception that's shared by one of the greatest investors of our time: Warren Buffett. Buffett'sBerkshire Hathaway(NYSE: BRK-A)(NYSE: BRK-B)is STORE Capital's second largest shareholder, owning 18.6 million shares exiting Q1, worth $649 million as of June 25.
Since the fear of higher interest rates is fading, occupancy rates are high, and funds from operations are growing, investing alongside the Oracle of Omaha in this REIT is simply icing on the cake.
Jason Hall(Pattern Energy Group):In late 2017 and through much of 2018, investors were understandably concerned about Pattern Energy. Without rehashing the details, the independent renewable energy producer, which had increased its dividend everyquarterfor the first 15 quarters after implementing it, froze the payout at $0.422 per share in early 2018, when its cash flow was at risk of being outpaced by its obligation to shareholders.
Things really came to a head in late 2017, however; the company's stock lost more than 30% of its value from September 2017 through March 2018, and it has bounced around a lot in the months since:
PEGIdata byYCharts.
In short, the market was coming to grips with the reality that Pattern spent essentially all of its cash flow in 2017 on dividends, and even after freezing the payout, it once again paid out nearly all of its cash flow in 2018. The big fear? The company was going to have to cut its payout, either because its lenders forced it to make a cut to access further capital to fund growth, or because credit markets simply tightened up, and it had no choice but to make a cut to free up cash.
However, management has been steadfast that it had a plan to jump-start cash-flow growth and get to an 80% dividend payout ratio -- and that it would be able to maintain the current payout while that plan played out. In March,management laid out a two-year planto grow cash flow by 20% by the end of 2020. So far this year, the company is exceeding expectations, havinggrown cash available for distribution23% in the first quarter.
That'sfarahead of the roughly 5% CAFD growth the company says it would generate this year, and it indicates that management wasn't kidding around or exaggerating that it has both the opportunity and the wherewithal to deliver.
One of the big advantages Pattern has in its corner is its relationship (and significant investment in) Pattern Development, the privately held project developer in which it has a nearly $200 million stake.
It gets two benefits from Pattern Development. First, it has right of first offer (ROFO) to acquire either a whole or partial stake in many of the renewable energy projects Pattern Development is heading up, putting it at the front of the line to pick and choose the best-returning of these assets to acquire. If it does acquire a project, it then profits from the long-term energy sales from that asset, typically under contracts that can exceed 20 years in length.
Second, Pattern Energy will also start receiving distributions from Pattern Development in 2020 based on income the latter earns from projects it sells to other operators or investors.
Put it all together, and there areso manythings in Pattern Energy's favor. Its plan to grow cash flow is working. Its partnership with Pattern Development provides a strong pipeline of future growth, and it is set to also generate direct income from the development business.
That's a solid business with great prospects for many years of growth, and investors today can still capture a yield well above 7%. It may be 2021 before management is ready to increase the payout again, but I think once it gets back above that 80% CAFD payout ratio, Pattern Energy's future will be as one of the best dividendgrowthstocks to own over the next decade.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.Chris Neigerhas no position in any of the stocks mentioned.Jason Hallowns shares of Alphabet (A shares), iRobot, Mastercard, MercadoLibre, Pattern Energy Group, and Shopify.Matthew Frankel, CFP, owns shares of Apple and Berkshire Hathaway (B shares).Steve Symingtonowns shares of iRobot.Todd Campbellowns shares of Alphabet (C shares), Apple, Mastercard, PayPal Holdings, and Shopify. The Motley Fool owns shares of and recommends Alphabet (A and C shares), Apple, Berkshire Hathaway (B shares), iRobot, Mastercard, MercadoLibre, PayPal Holdings, Shopify, and Visa. The Motley Fool owns shares of STORE Capital and has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool recommends Grubhub and Uber Technologies. The Motley Fool has adisclosure policy. |
Can Kroger Catch Walmart in Online Grocery Sales?
Walmart(NYSE: WMT)surpassedAmazon.com(NASDAQ: AMZN)last year as the favorite destination for online grocery shoppers. Having added so many options for buying and getting groceries -- including a recently rolled outdirect delivery-to-refrigeratorservice -- the retail giant zipped passed its e-commerce rival with 33% of online shoppers choosing Walmart, versus 31% for Amazon.
Yet in terms of actual dollar sales, Amazon is still the king, selling $8.2 billion worth of groceries online in 2018, a 12.5% increase over the year before, according to data from Edge by Ascential. Walmart was a distant second with just $2.8 billion of groceries sold, up 10% year over year.
Kroger has partnered with artificial intelligence specialist Nuro for self-driving grocery delivery. Image source: Kroger.
The leaderboard may not stay that way for long, however.Kroger(NYSE: KR), the country's largest pure-play supermarket chain with 2,760 stores, saw its online grocery sales surge 66% last year to an impressive $1.5 billion increase. That launched it past Ahold Delhaize (which operates supermarket chains like Giant and Stop & Shop), which generated online sales of less than $1.2 billion, only a 2.6% increase.
At that pace, Kroger could easily surpass Walmart in online grocery sales in less than two years. But can it maintain such torrid growth?
Kroger has invested a lot of money in its online capabilities over the past year, and e-commerce is becoming an essential part of its business. CEO Rodney McMullen told analysts on the first-quarter earnings conference call last week that the chain went from having no online sales at all in 2014 to an annual run rate of $5 billion in 2018, which he expects to trend toward an annual run rate of $9 billion going forward.
McMullen said digital sales grew 42% in the first quarter, and Kroger now has 1,685 order pickup locations and 2,126 delivery locations, and is able to reach 93% of its customers through e-commerce. By the end of the year, 100% of its customers should be covered.
Among the investments Kroger made was taking a 5% stake in U.K.-based, online-only supermarket Ocado. Itbecame the exclusive userof Ocado's technology, which helps grocery stores run automated warehouses and deliver directly to the customer. It just broke ground on the first Ocado fulfillment center in the U.S., a 335,000-square-foot facility that Kroger plans to invest $55 million in. It aims to have 20 fulfillment centers, or "sheds" as it calls them, in the U.S.
Part of what has helped Kroger expand its digital capabilities so broadly has been its delivery partnership with Instacart, which began in November 2017 and was greatly expanded last fall to more than 1,600 stores. It also launched its own online grocery-delivery service, Kroger Ship, which should be fully integrated into each operational region by the end of 2019. Last year it also partnered with artificial intelligence leader Nuro forself-driving car delivery.
But despite these significant advancements in technology and capability, Kroger's first-quarter earnings report was a cause for concern. Earnings of $0.72 per share actually beat expectations by a penny, but same-store sales (or what Kroger calls "identicals") came in at an increase of just 1.5%, missing forecasts and below last year's 1.9% gain -- even though the number includes all the digital investments and gains that it made in the space.
Wells Fargoanalyst Edward Kelly was pointed in his questioning of McMullen, noting that Kroger no longer beats its peers or industry data sets -- as it used to -- in comps growth. When asked what adjustments Kroger was making to change that situation, McMullen only said it had "to step up our game," and pointed to improvements in the customer experience -- not a very specific response.
The company reiterated its belief that comps will grow as much as 2.25% this year. But the slow start to the year, coupled with Walmart also reporting strong digital growth (online sales were up 37% in the first quarter), means that it will likely take more than just a couple of years for Kroger to catch up to its rivals -- even though it is gaining ground online.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Rich Dupreyhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Serena Williams Finally Gets Her Own Wheaties Box: 'I Have Dreamt of This'
Serena Williams is finally getting what she deserves . The tennis superstar has won 23 grand slam singles titles, 14 grand slam doubles titles and four Olympic gold medals . She’s also been featured in various magazines, television shows and box-office breaking movies. But one thing Williams has never done is grace the cover of a box of Wheaties —until now. With the slogan “The Breakfast of Champions,” General Mills has been celebrating extraordinary athletes by putting them on the covers of their cereal boxes since 1934. Past cover stars have included icons like Michael Jordan, Caitlyn Jenner and Mary Lou Retton. On Tuesday, Williams, 37, announced via Instagram that she would be joining this exclusive club, becoming the latest athlete to earn the honor. General Mills RELATED: Terminally Ill College Athlete Lauren Hill Featured on Wheaties Box “In 2001, Wheaties paid homage to a true champion and an icon by putting her on the cover of a Wheaties Box,” Williams began her Instagram post. “Althea Gibson was the FIRST Black Woman tennis player to be on the box. Today, I am honored to be the second.” View this post on Instagram In 2001, Wheaties paid homage to a true champion and an icon by putting her on the cover of a Wheaties Box. Althea Gibson was the FIRST Black Woman tennis player to be on the box. Today, I am honored to be the second. A post shared by Serena Williams (@serenawilliams) on Jun 25, 2019 at 6:00am PDT “Serena exemplifies all of the personal attributes that Wheaties looks for when choosing who its next champion will be,” said Tiffani Daniels, marketing manager for Wheaties, in a press release. “On the court she has been named the women’s most valuable player seven times, while off the court she uses her voice to inspire and spark change to make the world a better place.” RELATED VIDEO: Serena Williams Heading to U.S. Open Final a Year After Giving Birth — and Almost Dying The limited-edition box will be available in grocery stores nationwide for the next several weeks, and Williams hopes that it will embolden other young women . “I am so excited to be on the cover of the next Wheaties box,” Williams said in the press release. “I have dreamt of this since I was a young woman and it’s an honor to join the ranks of some of America’s most decorated athletes. I hope my image on this iconic orange box will inspire the next generation of girls and athletes to dream big.” |
How Financially Strong Is Masonite International Corporation (NYSE:DOOR)?
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Investors are always looking for growth in small-cap stocks like Masonite International Corporation (NYSE:DOOR), with a market cap of US$1.3b. However, an important fact which most ignore is: how financially healthy is the business? Assessing first and foremost the financial health is 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. Nevertheless, this is not a comprehensive overview, so I suggest youdig deeper yourself into DOOR here.
DOOR has built up its total debt levels in the last twelve months, from US$626m to US$931m – this includes long-term debt. With this rise in debt, the current cash and short-term investment levels stands at US$80m to keep the business going. Moreover, DOOR has produced US$195m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 21%, meaning that DOOR’s debt is appropriately covered by operating cash.
At the current liabilities level of US$246m, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.73x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Building 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 total debt exceeding equity, DOOR is considered a highly levered company. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. We can test if DOOR’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 DOOR, the ratio of 4.01x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving DOOR ample headroom to grow its debt facilities.
DOOR’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. I admit this is a fairly basic analysis for DOOR's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Masonite International to get a more holistic view of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for DOOR’s future growth? Take a look at ourfree research report of analyst consensusfor DOOR’s outlook.
2. Valuation: What is DOOR 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 DOOR 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. |
Google employees ask SF Pride to boot their employer from parade
Pridehas always been political, and a coalition ofGoogleemployees are doing their best to remind their employer of that very fact.
In anopen letterpublished Wednesday morning, the group encourages the San Francisco Pride board of directors to kick Google out of the upcoming June 30 Pride parade. The letter, which at the time of this writing is signed by 101 employees of the Mountain View-based tech giant, calls the company to task for both its treatment of LGBTQ+ employees and its perceived failure to address hate speech and harassment directed at members of the queer community on Google properties like YouTube.Read more...
More aboutGoogle,Pride Parade,Pride Month 2019,Tech, andBig Tech Companies |
Bernie Sanders' 'Medicare for all' matters when investing in health care stocks
“Medicare for all” champion Senator Bernie Sanders will probably take issue with the stock ideas of veteran health care policy analyst Chris Meekins of Raymond James.
Sorry, not sorry.
“I would just be cautious with the big brand pharma names. But for me, anyone that saw the decreases in managed care names [stocks] I believe they will continue to rally through the end of the year as it becomes increasingly clear that ‘Medicare for all’ is unlikely to happen,” Meekins said on Yahoo Finance’sThe First Trade.
Otherwise known as insurance companies, the share prices of major “managed care” players such as UnitedHealth (UNH), Cigna (CI) and CVS Health (CVS) tanked back in late April as Sanders re-introduced his “Medicare for all” scheme. The stocks of all three have continued to underperform the Dow Jones Industrial Average and S&P 500 since April.
Under Sanders’ proposal, private health insurance would be replaced by a universal Medicare plan.
Proponents like Sanders and many other fellow Democrats see “Medicare for all” as a way to eradicate administrative waste in the bloated health care system. Obviously the aforementioned health insurers reckon such a plan would lower their profit margins, hammer their bottom lines and send their stock prices reeling.
“The wholesale disruption of American health care being discussed in some of these proposals would surely jeopardize the relationship people have with their doctors, destabilize the nation's health system, and limit the ability of clinicians to practice medicine at their best. And the inherent cost burden would surely have a severe impact on the economy and jobs, all without fundamentally increasing access to care,” warned UnitedHealth CEO David Wichmann on the company’s first quarter earnings call in April.
Wichmann’s counterpart at Cigna, David Cordani, struck asimilar tone in a May 2 interview with Yahoo Finance. But, Cordani believes his company is prepared to weather the potential “Medicare for all storm” amid a push into services.
“We are well positioned under a variety of scenarios,” Cordani said.
Meekins thinks there are other compelling opportunities for investors in the health care space besides the beat up insurers. “So I like the health care services names, the medical device names are still really good and there are a handful of biotech companies that have some really innovative technologies.”
Brian Sozzi is an editor-at-large and co-host ofThe First Tradeat Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi
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Digimarc Corporation's (NASDAQ:DMRC) Earnings Dropped -19%, How Did It Fare Against The Industry?
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Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Digimarc Corporation's (NASDAQ:DMRC) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
View our latest analysis for Digimarc
DMRC is loss-making, with the most recent trailing twelve-month earnings of -US$32.9m (from 31 March 2019), which compared to last year has become more negative. Furthermore, the company's loss seem to be growing over time, with the five-year earnings average of -US$14.8m. Each year, for the past five years DMRC has seen an annual decline in revenue of -4.3%, on average. This adverse movement is a driver of the company's inability to reach breakeven.
Viewing growth from a sector-level, the US software industry has been growing its average earnings by double-digit 22% in the prior year,
Given that Digimarc is currently unprofitable, with operating expenses (opex) growing year-on-year at 10%, it may need to raise more cash over the next year. It currently has US$37m in cash and short-term investments, however, opex (SG&A and one-year R&D) reached US$45m in the latest twelve months. Although this is a relatively simplistic calculation, and Digimarc may reduce its costs or raise debt capital instead of coming to equity markets, the analysis still helps us understand how sustainable the Digimarc’s operation is, and when things may have to change.
Though Digimarc's past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to predict what will happen in the future and when. The most useful step is to examine company-specific issues Digimarc may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Digimarc to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for DMRC’s future growth? Take a look at ourfree research report of analyst consensusfor DMRC’s outlook.
2. Financial Health: Are DMRC’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. |
Do Directors Own Domo, Inc. (NASDAQ:DOMO) Shares?
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The big shareholder groups in Domo, Inc. (NASDAQ:DOMO) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
Domo is not a large company by global standards. It has a market capitalization of US$778m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about DOMO.
View our latest analysis for Domo
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Domo already has institutions on the share registry. Indeed, they own 51% 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 Domo'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. Our data indicates that hedge funds own 9.4% of Domo. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in Domo, Inc.. Insiders have a US$103m stake in this US$778m business. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
With a 21% ownership, the general public have some degree of sway over DOMO. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
With a stake of 5.5%, private equity firms could influence the DOMO board. 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.
It's always worth thinking about the different groups who own shares in a company. But to understand Domo better, we need to consider many other factors.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
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. |
Chris Cox, NRA's Second-In-Command, Resigns As Turmoil Roils The Gun Group
The National Rifle Associations second-in-command has resigned in the wake of a lawsuit alleging he helped plot a coup attempt against the gun groups chief executive, Wayne LaPierre. Chris Cox, the NRAs chief lobbyist, was previously suspended following a lawsuit filed last week accusing him of engaging with the groups former president, Oliver North, to oust LaPierre. The scheme backfired, with North forced out of his position and lawsuits flying ever since . End of an era: in a letter, Wayne LaPierre has informed NRA board members and staff that Chris Cox, the organization's top lobbyist, has "tendered his resignation as executive director of NRA-ILA." Despite accusing Cox of taking part in a coup, LaPierre writes... mike spies (@mikespiesnyc) June 26, 2019 The same text messages and email messages demonstrate that another errant NRA fiduciary, Chris Cox once thought by some to be a likely successor for Mr. LaPierre participated in the ... conspiracy, the lawsuit said. Cox, who had been with the NRA since 1995, denied the allegation. The news of Coxs departure comes less than a day after it was announced NRATV, the groups broadcast propaganda arm, would be shutting down . NRATV was created by the groups longtime advertising firm Ackerman McQueen. But McQueen and the NRA are now embroiled in lawsuits over what the other alleges was frivolous and irresponsible spending. Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost . |
‘The river is treacherous’: the migrant tragedy one photo can't capture
Under a hot sun beating down on the US border, a family of five can be seen mid-river, struggling against a cruel current of greenish-grey water threatening to sweep them off their feet. It appears to be a couple and their three children, risking their lives in the treacherous Rio Grande that divides Mexico from Texas. The father clutches a black backpack in his hand, the family’s only luggage. On his back he’s carrying a small boy wearing a rainbow-striped T-shirt. A little girl is on the woman’s back, small arms clasped tightly around her mother’s neck. A third child, older and taller, in a red shirt, between the two adults, is up to his chest in the water and clutching their wrists. He’s battling to stay upright but the current surges and swirls and the parents are propping him up, trying to make sure he’s not whipped under. The family were crossing on Sunday, trying to get to Eagle Pass, a small border town in Texas, east of San Antonio. The river bank on the American side is about 120ft across from the tiny town of Piedras Negras on the Mexican side. Some miles downstream to the east, a picture was taken this week of a father and his tiny daughter from El Salvador who didn’t make it and drowned together, as the mother was waiting her turn to cross, too, from the Mexican side in Matamoros. They were two of dozens who have drowned in the border river this year. Others, including toddlers, have been dragged from under the water by border agents and resuscitated. A man from Honduras and a woman and her children from Guatemala put on dry clothes after crossing part of the Rio Grande as they prepare to turn themselves over to US border patrol, on 13 January. Photograph: Joe Raedle/Getty Images The family wading from Piedras Negras are in mortal danger and don’t seem to be moving forward, as the current strengthens the closer they get to the US riverbank. If they turn back, the Mexico’s immigration authorities will almost certainly deport them to whichever Central American country they have probably fled. The only way is forward, to try to seek asylum in the United States. But as the Trump administration has flown in the face of human rights law, taking harsh measures to block people from crossing the border to seek asylum, many stranded in Mexico have taken to desperate measures. Story continues It’s clear, even from the Mexican riverbank yards away, that the boy up to his chest in the river is scared. His father is now tugging on his arm, trying to drag the family on. Three uniformed US border patrol agents on the Texas side are watching, and chatting, though not acting. Minutes pass. The family has been in the water for over an hour. Then the agents fire up the loud engine on their boat, drive downstream, then head against the current towards the five. They instruct the family to move to a tiny island in the river, then grab the children and let the adults hoist themselves into the boat. A government van is waiting and the agents offload the family and usher them into the van, disappearing in the direction of the Eagle Pass border patrol station, where they can expect to be detained as they become part of a clogged legal immigration system. Authorities stand behind yellow warning tape along the Rio Grande bank where the bodies of Óscar Alberto Martínez Ramírez and his daughter Valeria were found, in Matamoros, Mexico, on 24 June. Photograph: Julia Le Duc/AP On the river bank back on the Mexican side in Piedras Negras, a small group of passersby has watched the crossing unfold. One man, Elodio Vergara Martínez, said he had just come back from church. He clutched the Book of Mormon with white knuckles, from the tension of watching the family dice with death. “I always walk along the riverbank to and from church. Usually I look for crocodiles in the river. But I haven’t seen any. I guess that’s kind of lucky for this family,” Vergara Martínez told the Guardian. He added: “The US agents really should have rescued them sooner. They were just trying to make that family suffer.” The mayor of Piedras Negras, Claudio Bres Garza, a lifelong resident of the area, said in an interview with the Guardian on Tuesday that the level of migration through Mexico is unprecedented, especially involving stricken families from Central America. More than eight children have drowned in the river this year. It’s insane Claudio Bres Garza, mayor of Piedras Negras “I saw the photos of the drowned father and his baby this morning. I’ve never seen anything like it. More than eight children have drowned in the river this year. It’s insane,” he said. He added: “Nothing is going to change until Trump is no longer president. He’s just doing everything he can to win next year’s elections and thinking of his base. Trump knows that our economy depends on the United States. We know who has the upper hand here.” Numbers of Mexican law enforcement officers have been increasing in recent days as Donald Trump demands that Mexico crack down on migrants before they attempt to cross the border. More than 200 Mexican federal police officers arrived in Piedras Negras on Saturday, reinforcing Mexican national guard soldiers and immigration agents already there. They guard the river and check people’s papers day and night. On Sunday morning, a family of eight migrants from El Salvador arrived at the migrant shelter run by Catholic nuns in Piedras Negras. The Sánchez Reyes family of three adults and five children said they ran a bakery in San Salvador. But gangs began to extort them, eventually taking their house and business, forcing them to flee after killing a teenage niece. “We aren’t against staying in Mexico. We want to find work here,” the matriarch, Flor Sánchez Reyes, said. But those words may have been a decoy. Later that day, the Sánchez Reyes family slipped away from the shelter to “go for a walk and bathe in the river” after their six-hour bus ride from the Mexican interior, they told the Guardian by text message. It later emerged that apparently, as they approached the river, Mexico’s immigration agents stopped them and asked them for their documents, then detained them. “If immigration agents caught them by the river then they will almost certainly be deported,” said Isabel Turcios, the nun in charge of the Casa del Migrante shelter in Piedras Negras. A US border patrol boat navigates the Rio Grande near where the bodies of migrant Oscar Alberto Martínez Ramírez and his daughter Valeria were found, in Matamoros, Mexico, on 24 June. Photograph: Julia Le Duc/AP Federal police officers stand out in the hot sun by the turbid waters for 12-hour shifts, with no shade, little water or food. “We’ve been told to ask for identification from everybody, and especially from people who look like foreigners. This is exactly how it is where you come from,” one officer, who asked not to be named, said. “Yesterday we came across a drunk American without a valid visa. We took him to immigration detention and he’s going to be deported.” Another said: “I know we are doing the work of the US border patrol. It makes me feel really sad. We have become Trump’s wall. But what can we do? We have our orders. Claudia Hernández, a municipal police officer, said the “really kind of sneaky” migrants try to reach the river as the guards’ shifts change, around 8pm, when the officers are really tired. “That’s when they make a break for the river. You would be surprised at how fast they can run. We can’t follow them into the river because it’s too dangerous,” she said. She added: “The river is treacherous and people who aren’t from here don’t know that. I grew up here along the Río Bravo river [Río Grande]. I wouldn’t even go into that water to bathe or swim. There are springs and whirlpools and when the current takes you it can pull you under and you don’t resurface. I’ve been standing guard at the river for the last two months and it’s very sad to watch so many parents risking their lives with their children. It happens all the time.” We are trying to figure out what to do. Do we turn ourselves in or try to keep going? Angel Díaz Meanwhile, Ángel Díaz, a migrant from Nicaragua, crossed the river with six family members, including his newborn daughter, around dusk on Sunday. The family had said they were going to stay for two days at the migrant shelter in Piedras Negras but instead disappeared late on Sunday afternoon. After several hours of not responding to messages, they got in touch, saying they had made it safely across the river to Eagle Pass. “Nobody even stopped us as we got into the river. We changed out of our wet clothes and waited for ages on the riverbank. We wanted to turn ourselves in to border patrol,” Diaz said. “But the van never showed up so we decided to walk into Eagle Pass.” They found a motel and threw themselves on the mercy of its owner, who said they could pay for a night’s stay in Mexican pesos. “We are trying to figure out what to do,” Díaz said. “Do we turn ourselves in or try to keep going? We don’t have any money and so it’s going to be difficult to get out of Eagle Pass. Soon we’ll have to make a decision. I think we should turn ourselves in to border patrol.” It was hard to discern from WhatsApp messages whether the family was hopeful or frightened. Back in Piedras Negras, there are simple wooden crosses in the municipal cemetery, marking paupers’ graves where unidentified migrants who drowned on the Mexican side of the river this year were taken to be buried. Like the father and daughter photographed face down in the Rio Grande a few miles east, it is not possible to know exactly what terrors and prayers crossed their minds in their last seconds, but it is all too easy to imagine. |
Here's How We Evaluate Digital Realty Trust, Inc.'s (NYSE:DLR) Dividend
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Today we'll take a closer look at Digital Realty Trust, Inc. (NYSE:DLR) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
A high yield and a long history of paying dividends is an appealing combination for Digital Realty Trust. We'd guess that plenty of investors have purchased it for the income. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.
Explore this interactive chart for our latest analysis on Digital Realty Trust!
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Looking at the data, we can see that 66% of Digital Realty Trust'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. Digital Realty Trust paid out 64% of its free cash flow last year, which is acceptable, but is starting to limit the amount of earnings that can be reinvested into the business. It's positive to see that Digital Realty Trust's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
As Digital Realty Trust 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 more than 5x EBITDA, Digital Realty Trust could be described as a highly leveraged company. While some companies can handle this level of leverage, we'd be concerned about the dividend sustainability if there was any risk of an earnings downturn.
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 Digital Realty Trust, and be aware that lenders may place additional restrictions on the company as well. High debt and weak interest cover are not a great combo, and we would be cautious of relying on this company's dividend while these metrics persist.
Remember, you can always get a snapshot of Digital Realty Trust's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of Digital Realty Trust's dividend 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 US$1.44 in 2009, compared to US$4.32 last year. Dividends per share have grown at approximately 12% per year over this time.
Dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.
While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. In the last five years, Digital Realty Trust's earnings per share have shrunk at approximately 10.0% per annum. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend.
To summarise, shareholders should always check that Digital Realty Trust's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we think Digital Realty Trust is paying out an acceptable percentage of its cashflow and profit. It's not great to see earnings per share shrinking. The dividends have been relatively consistent, but we wonder for how much longer this will be true. Ultimately, Digital Realty Trust 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.
Given that earnings are not growing, the dividend does not look nearly so attractive. See if the 19 analysts are forecasting a turnaround in ourfree collection of analyst estimates here.
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. |
‘The Good Liar’ Trailer: Helen Mirren and Ian McKellen Play a Game of Cat and Mouse
Everyone knows Oscar voters love a dame. That’s Dame Helen Mirren to be precise, who stars alongside Sir Ian McKellen in the awards-friendly fall release “ The Good Liar ,” a tense romantic thriller from “Kinsey” director Bill Condon. The Oscar winner (Mirren) and two-time Oscar nominee (McKellen) play two people in a new courtship with deceptive underpinnings. Russell Tovey (“Looking”) and Jim Carter (“Downton Abbey”) round out a cast of heavy hitters that is sure to pique certain Oscar voters’ interest. Per the official synopsis: “Career con artist Roy Courtnay (McKellen) can hardly believe his luck when he meets well-to-do widow Betty McLeish (Mirren) online. As Betty opens her home and life to him, Roy is surprised to find himself caring about her, turning what should be a cut-and-dry swindle into the most treacherous tightrope walk of his life.” Related stories Helen Mirren Champions Theaters at CinemaCon: 'I Love Netflix, But F*ck Netflix' Ian McKellen Delivers Extensive Apology for Spacey and Singer Comments Condon reunites with McKellen for a fourth time since directing him in “Gods and Monsters,” the 1998 WWI drama that earned McKellen his first Oscar nomination. Condon took home the Oscar for Best Adapted screenplay for his work on the film; he was also nominated for his screenplay for Rob Marshall’s “Chicago.” Mckellen and Condon also worked together on 2015’s “Mr. Holmes,” and in 2017 on Disney’s live-action “Beauty and the Beast.” Jeffrey Hatcher wrote the screenplay adaptation from the widely acclaimed novel by Nicholas Searle. Mirren won the Academy Award for Best Actress in 2007 for her performance as Queen Elizabeth II in “The Queen.” Mirren can currently be seen in another thriller, Luc Besson’s “Anna.” A fan of thrillers of late, she recently wrapped production on Fast & Furious Presents: Hobbs & Shaw.” She will soon lead HBO’s upcoming British-American mini-series “Catherine the Great,” in which she plays the titular Russian monarch. McKellen most recently starred in Kenneth Branagh’s William Shakespeare biopic “All Is True.” He will also feature in Tom Hooper’s screen adaptation of the long-running Broadway musical “Cats.” “The Good Liar” was filmed on location in London and Berlin. It was produced by New Line Cinema and will be distributed by Warner Bros. in theaters on November 15. Story continues Check out the trailer (including a deliciously evil McKellen throwing a man in front of a moving train) below. Sign up for Indiewire's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . View comments |
Should You Think About Buying Masonite International Corporation (NYSE:DOOR) Now?
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Masonite International Corporation (NYSE:DOOR), which is in the building business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $56.19 at one point, and dropping to the lows of $47.55. 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 Masonite International's current trading price of $52.01 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 Masonite International’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 Masonite International
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 8.8% below my intrinsic value, which means if you buy Masonite International today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $57.03, then there isn’t much room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that Masonite International’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Masonite International’s earnings over the next few years are expected to increase by 67%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?It seems like the market has already priced in DOOR’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor?If you’ve been keeping an eye on DOOR, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Masonite International. You can find everything you need to know about Masonite International inthe latest infographic research report. If you are no longer interested in Masonite International, 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. |
Twitch is testing subscriber-only streams
A Twitch channel subscription might soon get you considerably more than emotes, ad-free viewing and access to special chat rooms. The service is launching a beta for Subscriber Streams, or live broadcasts that are (you guessed it) limited to people with active subscriptions, mod privileges and VIP status. It won't be thrilling if you don't like paying for Twitch, but it could help creators who want to reward paying fans with behind-the-scenes specials, all-request game sessions and other perks. Non-subscribers will get a preview of these streams with immediate access if they choose to sign up. On-demand videos will be available to subscribers, while clips won't have restrictions. The beta is available now to any broadcaster who has reached Affiliate or Partner status. And yes, Twitch is aware of the potential for abuse by creators who might want to lock questionable content behind sub-only livestreams. You're only allowed to offer Subscriber Streams if you haven't violated community guidelines in the past 90 days, and anyone can report potential violations even if they only saw an offense during the live previews. This does risk creating different tiers of Twitch experiences where some content is locked behind a paywall. However, it could easily appeal to experienced Twitch broadcasters hoping to boost their subscription counts. That, in turn, could lead more Twitch users to either start broadcasting in the first place or step up their efforts. You might benefit simply by seeing more (and higher-quality) streamers, even if you have no inclination to pay. View comments |
3 Top-Performing Large-Cap Stocks
Analysts recommend Johnson & Johnson, Nestle and Visa |
Is Delphi Technologies PLC (NYSE:DLPH) Trading At A 34% Discount?
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Today we will run through one way of estimating the intrinsic value of Delphi Technologies PLC (NYSE:DLPH) by projecting its future cash flows and then discounting them to today's value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
View our latest analysis for Delphi Technologies
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF ($, Millions)", "2019": "$20.58", "2020": "$178.10", "2021": "$233.00", "2022": "$290.00", "2023": "$336.65", "2024": "$377.32", "2025": "$412.32", "2026": "$442.46", "2027": "$468.73", "2028": "$492.05"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x5", "2020": "Analyst x7", "2021": "Analyst x2", "2022": "Analyst x1", "2023": "Est @ 16.09%", "2024": "Est @ 12.08%", "2025": "Est @ 9.28%", "2026": "Est @ 7.31%", "2027": "Est @ 5.94%", "2028": "Est @ 4.97%"}, {"": "Present Value ($, Millions) Discounted @ 14.68%", "2019": "$17.95", "2020": "$135.43", "2021": "$154.50", "2022": "$167.68", "2023": "$169.74", "2024": "$165.90", "2025": "$158.08", "2026": "$147.93", "2027": "$136.66", "2028": "$125.09"}]
Present Value of 10-year Cash Flow (PVCF)= $1.38b
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 14.7%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$492m × (1 + 2.7%) ÷ (14.7% – 2.7%) = US$4.2b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$4.2b ÷ ( 1 + 14.7%)10= $1.08b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $2.45b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $27.91. Relative to the current share price of $18.55, the company appears quite undervalued at a 34% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Delphi Technologies as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 14.7%, which is based on a levered beta of 1.797. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Delphi Technologies, I've put together three important aspects you should look at:
1. Financial Health: Does DLPH have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does DLPH's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of DLPH? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The mini Instant Pot Ultra can replace 10 appliances, is on sale for $99.95
TL;DR:The adorable 3-quartInstant Pot Ultrais only $99.95 at Amazon, saving you $20.
Not every meal (or tiny NYC kitchen apartment) needs an enormous appliance in order to get the job done.
But being single or living in a cramped space doesn't mean you can't treat yourself to fancy, multi-step meals: The 10-in-1 Instant Pot Ultra is one ofInstant Pot'smost versatile cookers, and the mini3-quart model is $20 off at Amazonright now.
SEE ALSO:Why Instant Pots are the best: We explore the Lux, Duo, Ultra, Max, and more
Aside from being an extremely reliableslow cooker, the Ultra is also a pressure cooker, rice cooker, egg cooker, steamer, warmer, sauté pan, yogurt maker, sterilizer,andcake maker. Built-in programs like bean/chili, meat/stew, soup/broth, poultry, congee, multigrain, and more also help to eliminate guesswork.Read more...
More aboutFood And Drink,Kitchen,Mashable Shopping,Instant Pot, andSlow Cooker |
The most embarrassing social media privacy mistakes to avoid
When it comes to social media, privacy is the word on everyone's mind. Lawmakers are looking into potential regulation to tamp down on data misuse, while government authorities are eyeing massive fines for the likes of Facebook (FB) thanks to itsinfamous Cambridge Analytica scandal.
But for the average person, there's something even more dangerous: the social faux pas that occurs when you forget that your browsing habits are often shared with your friends, followers, and fellow posters.
You know that picture you liked on Instagram? Well, all of your followers know you liked it, too. And that Snap Story you watched while riding the bus this morning? The person who posted it knows you watched it, too.
It can all get a little embarrassing when you realize just how much of your social media usage is public. Ever tell your friend you couldn't go out after work, then have her find out you went to dinner with another friend thanks to your Venmo history? It's not great.
That’s why I’m here to help. These are the biggest social media mistakes to avoid.
Let's start with that aforementioned money-sharing service. Venmo (PYPL) lets you send and receive cash between friends, family, and that stranger you accidentally sent $20 to because she has the same first and last name as your coworker.
Venmo, for no discernible reason, features a social element that lets you see transactions between your friends. It's an incredibly strange option for a cash-sharing app, and can lead to some horribly awkward social interactions.
Imagine you tell your boss you're leaving work early to go to the doctor, but are actually heading out to do some light day-drinking with friends. If you send your pal $30 to cover your part of the bill, your boss could end up seeing it — which could lead to a very uncomfortable conversation.
It's an unnecessary element for the service that turns everyone into a spy, as they try to hide their various transactions from friends and family members. Though, it also helps Venmo set itself apart from its parent company PayPal's own service.
Thankfully, Venmo lets you set all of your transactions to private by default via the app's Privacy section in the Settings menu.
You can also set the visibility of individual requests and payments by tapping the "public" or "private" button in the lower right corner of the screen. And if you're worried about your old transactions, you can set them to private, as well.
Facebook-owned Instagram is all about getting likes for your perfectly composed image of a charcuterie board you put together yourself, and definitely didn't order from a professional caterer. But what you might not have realized is that when you like a photo, whether it be a friend’s shot or something more NSFW, everyone who follows you can see that you've liked it. Of course, this only applies to public posts you like.
Then there are Instagram Stories. The ephemeral video shorts Facebook’s Instagram "borrowed" from Snapchat make for fun social content, but whenever you watch one, the person who posted it gets a little notification telling them as much. It will also tell them if you watched one part of a multi-part story and not the others. So keep that in mind while browsing.
LinkedIn (MSFT) gives you the ability to check out the profiles of potential future employers and coworkers. But whenever you look at someone's profile, they get notifications telling them you've been snooping on them. Yep, LinkedIn lets people know when someone has looked at your profile and vice versa. The basic version of LinkedIn will tell you the last five people to look at your account, as long as they weren't in private mode, while the premium version will show everyone who has looked at your account.
That's isn't exactly awful, but searching for a new job can be stressful, and the last thing you'd want to do is let everyone with the slightest connection to a prospective employer know you're looking for a job there. You also might not want your ex knowing you’re checking out their recent job changes.
The best way to address this is to set your account to private mode via the LinkedIn settings menu. The main downside is that you'll lose out on being able to see who's been looking at your own profile. See, it's a Catch-22. You don't want people seeing that you've been looking at their profiles. But you probably want people to know when people are looking at yours, to see if you might get a lead on a new job.
How you approach that is up to you.
Snapchat's (SNAP) Our Story enables people to share their experiences of major events, such as sporting events or concerts, from multiple points of view. When you add a Snap to Our Story, you should be aware that anyone on Snapchat will be able to see it.
What you might not have realized is that your Snap will also be available to be used by third-party services. Snapchat spells out as much on its customer support page. If that's a little too much sharing for your liking, you can avoid any issues by choosing not to upload any of your snaps to the Our Story section.
Finally, it's important to remember that any time you screenshot someone else's Snaps, they'll receive a notification telling them as much. So while you might think you're being suave, your buddy probably thinks you're being a weirdo.
You know what's not fun? Accidentally sending a text message meant for your friend to your boss. Or how about replying to a work email with a joke, and CC'ing the entire office? Neither makes for a great time.
But the worst possible example of this cognitive lapse is the ever-popular act of sending out a tweet that was meant to be a direct message. The most famous example of this wasformer U.S. Rep. Anthony Weinerposting a picture of himself in a compromising situation to Twitter (TWTR) for all the world to see. That photo, though, was supposed to be sent via DM to a woman he was trying to send a sext to who definitely wasn't his wife.
Needless to say, Weiner, who just couldn't seem to get out of his own way, is no longer an active politician.
So remember to always double check that message before you send it out.
Everyone is guilty of receiving a text or social media message and ignoring it in the hopes that you'll never have to respond to it. And most of the time, there's nothing wrong with that. You might be too tired to reply, are out doing something more interesting, or just want to be left alone at the moment.
But Facebook's Messenger doesn't want you to live a consequence-free life. That's because the service makes it so that the person who sent you a message can see that you've looked at it. There's no no way to hide from your friends' notes. It's basically a digital narc. And it's going to sell you out at the first chance it gets.
This one is more about self-preservation than anything else. If you're searching for someone on Facebook or Instagram, that search query will be saved in your search bar. The problem? If you've got a significant other, seeing someone on a semi-permanent basis, or just want to keep your business private, that's a big security flaw.
The reason being is if you happen to leave yourself logged into your Facebook account on your laptop, or you let someone else jump on the Facebook app on your phone, they could see who you've been searching for. And that's probably not the kind of situation you want to have unfold while getting ready for bed on a Wednesday night.
Luckily, you can erase your search history in both Facebook and Instagram with ease. Facebook lets you clear your history by tapping on the Search bar, while Instagram lets you clean out your closet through the privacy settings menu.
More from Dan:
• Microsoft debuts Personal Vault for OneDrive
• Breaking up Google isn’t the answer
• Lenovo’s and Google's Smart Alarm Clock might make you hate mornings less
• Tim Cook on tech: ‘If you built a chaos factory, you can’t dodge responsibility for the chaos.’
Email Daniel Howley at dhowley@yahoofinance.com; follow him on Twitter at@DanielHowley.
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