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Singapore considers cut to growth forecast as trade war hits exports
By John Geddie
SINGAPORE (Reuters) - Singapore's central bank is reviewing its 1.5-2.5% economic growth forecast for this year and isn't ruling out off-cycle monetary easing as the U.S.-China trade war roils the export-dependent economy, its chief Ravi Menon said on Thursday.
Singapore's economy is expected to grow at its slowest pace in a decade this year, and some are predicting a recession in 2020, with the high-tech manufacturing hub more vulnerable to the trade war than others in Southeast Asia.
Recent economic indicators suggest year-on-year economic growth could be weaker in the second quarter than a decade-low 1.2% achieved in the first quarter due to a global slowdown partly caused by trade tensions, Menon said.
"The Singapore economy is in for a rougher ride," Menon said in a speech that accompanied the release of the Monetary Authority of Singapore's (MAS) annual report.
"We need to be alert but there is no need to be alarmed."
The central bank and trade ministry will wait for second quarter growth numbers in July before finalising any revision to the full-year forecast, said MAS' chief economist, Edward Robinson.
Thailand's central bank cut its 2019 economic growth forecast on Wednesday, but held interest rates.
A raft of bleak data has prompted economists to raise bets of monetary easing at the MAS' next semi-annual policy meeting in October, or even earlier if the global growth outlook dims and the U.S. Federal Reserve cuts interest rates.
Menon said its current monetary policy was appropriate, but asked about the prospect of off-cycle monetary policy moves, he added that nothing was off the table.
MAS last made an off-cycle move when it unexpectedly eased policy in January 2015 to counter deflationary pressures and slowing growth.
"There are a whole lot of new factors on the horizon that we are very carefully studying. Of course analysts will come up with a range of possibilities and I wouldn't rule any of them out at this point," Menon said.
Singapore is seen as a potential beneficiary from any capital flight from Hong Kong where a local government plan to allow extraditions of suspects to face trial in China for the first time set off days of street protests.
Menon said there were no signs of "any significant shift of business or funds" from Hong Kong to Singapore and that any upheaval in its rival financial centre in the region could actually be negative for the city-state.
"Prolonged uncertainty in Hong Kong is not good for Singapore," Menon said. "People tend to see too much through the lens of competition."
(Reporting by John Geddie; Additional reporting by Fathin Ungku; Writing by Joe Brock; Editing by Jacqueline Wong & Shri Navaratnam) |
An Intrinsic Calculation For CentralNic Group Plc (LON:CNIC) Suggests It's 25% Undervalued
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Does the June share price for CentralNic Group Plc (LON:CNIC) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
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 CentralNic Group
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 (\u00a3, Millions)", "2019": "\u00a33.20", "2020": "\u00a310.10", "2021": "\u00a310.80", "2022": "\u00a311.35", "2023": "\u00a311.79", "2024": "\u00a312.16", "2025": "\u00a312.47", "2026": "\u00a312.73", "2027": "\u00a312.97", "2028": "\u00a313.19"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Analyst x1", "2022": "Est @ 5.06%", "2023": "Est @ 3.91%", "2024": "Est @ 3.11%", "2025": "Est @ 2.54%", "2026": "Est @ 2.15%", "2027": "Est @ 1.87%", "2028": "Est @ 1.68%"}, {"": "Present Value (\u00a3, Millions) Discounted @ 8.57%", "2019": "\u00a32.95", "2020": "\u00a38.57", "2021": "\u00a38.44", "2022": "\u00a38.17", "2023": "\u00a37.82", "2024": "\u00a37.42", "2025": "\u00a37.01", "2026": "\u00a36.60", "2027": "\u00a36.19", "2028": "\u00a35.80"}]
Present Value of 10-year Cash Flow (PVCF)= £68.96m
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 1.2%. We discount the terminal cash flows to today's value at a cost of equity of 8.6%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = UK£13m × (1 + 1.2%) ÷ (8.6% – 1.2%) = UK£182m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= £UK£182m ÷ ( 1 + 8.6%)10= £79.95m
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 £148.90m. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of £0.84. Relative to the current share price of £0.63, the company appears a touch undervalued at a 25% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. 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 CentralNic Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.6%, which is based on a levered beta of 1.104. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For CentralNic Group, I've put together three pertinent aspects you should further examine:
1. Financial Health: Does CNIC 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 CNIC'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 CNIC? 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 LON 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. |
Are Investors Undervaluing CentralNic Group Plc (LON:CNIC) By 25%?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
How far off is CentralNic Group Plc (LON:CNIC) 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. Don't get put off by the jargon, the math behind it is actually quite straightforward.
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 CentralNic Group
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF (\u00a3, Millions)", "2019": "\u00a33.20", "2020": "\u00a310.10", "2021": "\u00a310.80", "2022": "\u00a311.35", "2023": "\u00a311.79", "2024": "\u00a312.16", "2025": "\u00a312.47", "2026": "\u00a312.73", "2027": "\u00a312.97", "2028": "\u00a313.19"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Analyst x1", "2022": "Est @ 5.06%", "2023": "Est @ 3.91%", "2024": "Est @ 3.11%", "2025": "Est @ 2.54%", "2026": "Est @ 2.15%", "2027": "Est @ 1.87%", "2028": "Est @ 1.68%"}, {"": "Present Value (\u00a3, Millions) Discounted @ 8.57%", "2019": "\u00a32.95", "2020": "\u00a38.57", "2021": "\u00a38.44", "2022": "\u00a38.17", "2023": "\u00a37.82", "2024": "\u00a37.42", "2025": "\u00a37.01", "2026": "\u00a36.60", "2027": "\u00a36.19", "2028": "\u00a35.80"}]
Present Value of 10-year Cash Flow (PVCF)= £68.96m
"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 (1.2%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.6%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = UK£13m × (1 + 1.2%) ÷ (8.6% – 1.2%) = UK£182m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= £UK£182m ÷ ( 1 + 8.6%)10= £79.95m
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 £148.90m. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of £0.84. Compared to the current share price of £0.63, the company appears a touch undervalued at a 25% 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 CentralNic Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.6%, which is based on a levered beta of 1.104. 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 CentralNic Group, I've put together three further aspects you should further examine:
1. Financial Health: Does CNIC 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 CNIC'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 CNIC? 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 GB 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. |
INSIGHT-Twin attacks threaten new Ethiopian government's reforms
* Attacks underscore divisions despite government reforms
* Details emerge of twin attacks linked to foiled coup
* Weapons pour in ahead of elections in 2020 - arms expert
* GRAPHIC-Displacements in Ethiopia https://tmsnrt.rs/2FC0zff (Adds graphic in bullet points, paragraph 12)
By Dawit Endeshaw and David Lewis
BAHIR DAR, Ethiopia, June 27 (Reuters) - The Baklaba and Cake cafe was heaving with customers when truck-loads of heavily armed men in fatigues rolled up across the road outside the local government headquarters in Ethiopia's Amhara region.
The men, some carrying two Kalashnikov assault rifles, stormed the building, sending customers enjoying a Saturday afternoon coffee in the cafe diving for cover, witnesses said.
Within moments, the assailants had shot dead Amhara's president, an aide and fatally wounded the state's attorney general.
Hours later, 325 km (200 miles) to the south in Ethiopia's capital Addis Ababa, gunshots rang out behind the high grey walls of a red-roofed villa as the military's chief of staff and a retired general were slain by a bodyguard.
The attacks, described by the government as part of a coup attempt in Amhara, highlight the dangers Prime Minister Abiy Ahmed faces as he rolls out ambitious reforms in Africa's second most populous nation - a regional powerhouse whose economic boom is now threatened by deepening ethnic and regional fissures.
Since Abiy came to power in April 2018, attention abroad has focused on the rapid political, economic and diplomatic changes he has been introducing in one of the continent's most closed and repressive countries.
"The world out there wanted to believe the fairy tale. They became obsessed with their own narrative," said Tamrat Giorgis, the managing editor of the Addis Fortune, a privately-owned English-language newspaper. "But that doesn't chime with what is happening on the ground. It is much more complex and scary."
FRAGILE REFORMS
Abiy has loosened the iron grip the central authorities held over a deeply fractured nation, freeing imprisoned opposition leaders, rebels and journalists, lifting bans on some political parties and sealing a peace deal with arch-enemy Eritrea.
His plans to partially privatise some state enterprises have piqued the interest of foreign multinationals hoping to profit from market of 100 million people, and should breathe life into the debt-laden economy.
But the ruling Ethiopian People's Revolutionary Democratic Front (EPRDF), itself a coalition of four ethnically-based parties, faces strident challenges from newly emboldened regional powerbrokers demanding more influence and territory.
Ethnic violence has killed hundreds of people. That, and a severe drought, means some 2.4 million people are currently displaced in Ethiopia, the United Nations says.
For a graphic of displacements in Ethiopia, click here https://tmsnrt.rs/2FC0zff
"Abiy's reforms removed the lid on many accumulated grievances," said Rashid Abdi, an independent Horn of Africa analyst. "Making the transition to a more open society is always dangerous."
Abiy's response to his biggest challenge yet will not only define his leadership but could determine whether Ethiopia will sustain its decade-long boom, or spiral into the violence that has plagued neighbouring Somalia and South Sudan.
Former intelligence officer Abiy, son of a Muslim father and Christian mother, is from Ethiopia's largest ethnic group, the Oromo, who spearheaded years of anti-government protests that eventually drove his predecessor to resign last year.
Abiy has the right profile to reassure several disgruntled sections of Ethiopian society, analysts say.
DEEP DIVISIONS
But the divisions Abiy must bridge in Amhara and elsewhere are old and deep. Asamnew Tsige, the rogue general accused of orchestrating Saturday's violence, often invoked them.
"Five hundred years ago, we faced a similar test," Asamnew told graduating Amhara Special Forces this month, referring to the historical expansion of Oromo people into Amhara.
The history of Amhara, which has provided Ethiopia with its national language, is a source of pride for many who belong to the country's second largest ethnic group.
Some there resent the fact the previous federal government was dominated by Tigrayans who make up about 6% of the population - and now the prime minister is an Oromo. Border disputes simmer with neighbouring Oromia and Tigray.
Asamnew fanned those flames when he was released last year after nearly a decade in prison for a previous coup attempt. The regional government named him head of security to placate his hard-line base. He began recruiting for a new state-sanctioned militia and called on the Amhara people to arm themselves.
Seven Amhara leaders, including acting regional president Lake Ayalew, had gathered for a meeting in Bahir Dar, Amhara's regional capital, when gunmen tried to burst in at 4 p.m.
"They struggled to open the door," Lake told Amhara Mass Media Agency. Three officials ran for an exit but were gunned down, he said. The rest hid. Guards and attackers exchanged fire.
The attorney general was badly wounded. "We tried to tie up his wounds with a curtain. The other two were already dead," said Lake.
After the hit squad killed the state officials, fighting broke out at the police station - now peppered with bullet holes - and the local EPRDF headquarters, witnesses and Asemahagh Aseres, a regional government spokesman, said.
Asemahagh said Asamnew's new militia had appealed for others to join their putsch but had been rebuffed.
The gunfire ended about five hours later, after federal reinforcements arrived by helicopter, the witnesses said.
Dozens of people died in the fighting, and the security forces killed Asamnew in a shootout on Monday, near Bahir Dar, Asemahagh said.
For days, regional state-run television ran rolling coverage commemorating the three murdered officials.
But on the streets, some suspected an official conspiracy, accusing federal authorities of orchestrating events to remove a popular and powerful regional leader.
"The federal government doesn't want a strong leader here. The general was mobilising the youth at the regional level, and they didn't like it," said a young man at a street cafe, who asked not to be identified for safety reasons.
KILLINGS CONDEMNED
The National Movement of Amhara - an increasingly popular ethnocentric party founded last year and a rival to the Amhara party in the EPRDF coalition - condemned the killings but queried the government's narrative.
"At this moment we can't say whether there was a coup," Christian Tadele, spokesman for the new party, told Reuters. "First, we need an independent enquiry ... The federal government is trying to use this incident to control the security apparatus of the region."
In Ethiopia's bustling capital, there was little sympathy for the coup plotters. A country-wide internet blackout remained in force but the city had returned to normal with battered blue and white taxis clogging the streets.
"This is a fascist, heinous assassination crime that no one can expect to happen in the 21st century," said Addis Ababa resident Berhanu Bekele.
On Tuesday, a weeping Abiy led hundreds of soldiers, officials and relatives, many dressed in black and sobbing, in a commemoration for Chief of Staff General Seare Mekonnen and the retired general in the capital.
Near Seare's house in Addis Ababa, federal police crammed into a tiny hair salon to watch the ceremony live on television. Tears welled up in their eyes and several shook their heads as the cameras panned to Seare's flag-draped coffin.
Seare was killed by a recently appointed bodyguard, but reinforcements coming to his rescue sustained heavy fire from at least two gunmen, one security officer involved said.
One gunman escaped in a waiting car but the bodyguard was arrested. Wounded in the foot, he then shot himself in the neck in an apparent suicide attempt, the officer said.
WEAPONS POUR IN
Ethiopian officials said the killings in the capital were designed to distract and divide the military as it tackled the coup attempt in Amhara.
After the ceremony in Addis Ababa, the bodies of the two slain generals were flown north to their native Tigray for burial.
Bitter crowds mourned them at a memorial on Wednesday. Already angry over the loss of influence Tigrayans enjoyed under the previous administration, many chanted "Abiy is a traitor" and "Abiy resign".
"I am angry against Abiy because he is too soft and full of rhetoric," said 19-year-old college student Selam Asmelash.
A reckoning may be coming.
Elections are due next year, although no date has been set - and weapons have been pouring in from countries including Sudan and South Sudan, said Justine Fleischner, an arms expert with UK-based Conflict Armament Research.
The weapons fuel armed gangs, menacing travellers and disrupting transport networks. Police said in June they had seized nearly 11,000 weapons and almost 120,000 rounds of ammunition in the capital over the last nine months.
"People are sick of the insecurity. If (Abiy) doesn't do something now, people might think he is too weak to govern," said a foreign businessman based in Addis Ababa.
One of the biggest risks is that the splits in society could break the ruling coalition - or the military, said Gerard Prunier, an academic who has written extensively about Ethiopia.
The EPRDF's ethnically based parties must respond to the demands of their constituents or lose support to hardliners, so the government is increasingly losing its ability to place friendly faces in top regional positions, Prunier said.
"The EPRDF is the only tool that the prime minister has to govern - and it is not a reliable tool."
(Additional reporting by Kumerra Gemechu in Mekelle, Ethiopia, Katharine Houreld in Nairobi and Ayenat Mersie in New York; editing by Katharine Houreld, Alexandra Zavis and David Clarke) |
Ads in Instagram Explore May Be $1 Billion Goldmine to Facebook
(Bloomberg) -- Adding advertising to the Explore tab in Instagram could be worth $1 billion in revenue for Facebook Inc. by 2021, according to Morgan Stanley analysts.
New advertising will appear when users on the photo-sharing social network tap into Explore posts and scroll to see related content, with the main grid to remain ad-free. The move “speaks to how Facebook continues to find ways to extend its earnings runway by monetizing under-monetized engagement and usage,” analyst Brian Nowak says.
Nowak says that if Explore can be monetized to the tune of $2 per user by 2021 and user growth rates can be maintained, it could add around $1.2 billion to group revenue. That would translate to 2% upside to current earnings estimates at Morgan Stanley.
There are two potential hurdles Nowak sees. First, how quickly Facebook will push out the product. Second, how much of the ad spend will be incremental and how much will be drawn from other Facebook products like Instagram’s newsfeed, stories or the Facebook news feed options.
Explore ads are the latest in a line of efforts by Facebook to monetize its products. Deutsche Bank AG analysts say Watch, Facebook’s video-streaming service, could be worth $5 billion in revenue over the next few years.
--With assistance from James Cone and Lisa Pham.
To contact the reporter on this story: Sam Unsted in London at sunsted@bloomberg.net
To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Phil Serafino
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Should Clas Ohlson AB (publ) (STO:CLAS B) Be Part Of Your Income Portfolio?
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Dividend paying stocks like Clas Ohlson AB (publ) (STO:CLAS B) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
With Clas Ohlson yielding 6.8% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. There are a few simple ways to reduce the risks of buying Clas Ohlson 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. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Clas Ohlson paid out 543% of its profit as dividends, over the trailing twelve month period. Unless there are extenuating circumstances, from the perspective of an investor who hopes to own the company for many years, a payout ratio of above 100% is definitely a concern.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Clas Ohlson paid out 390% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. Cash is slightly more important than profit from a dividend perspective, but given Clas Ohlson's payouts were not well covered by either earnings or cash flow, we would definitely be concerned about the sustainability of this dividend.
As Clas Ohlson's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A quick check of its financial situation can be done with two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA measures total debt load relative to company earnings (lower = less debt), while net interest cover measures the ability to pay interest on the debt (higher = greater ability to pay interest costs). With net debt of 0.51 times its EBITDA, Clas Ohlson has an acceptable level of debt.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 51.82 times its interest expense, Clas Ohlson's interest cover is quite strong - more than enough to cover the interest expense.
We update our data on Clas Ohlson every 24 hours, so you can always getour latest analysis of its financial health, here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. For the purpose of this article, we only scrutinise the last decade of Clas Ohlson's dividend payments. Its dividend payments have fallen by 20% or more on at least one occasion over the past ten years. During the past ten-year period, the first annual payment was kr5.00 in 2009, compared to kr6.25 last year. This works out to be a compound annual growth rate (CAGR) of approximately 2.3% a year over that time. The growth in dividends has not been linear, but the CAGR is a decent approximation of the rate of change over this time frame.
It's good to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth, anyway. We're not that enthused by this.
Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. In the last five years, Clas Ohlson's earnings per share have shrunk at approximately 29% 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. Clas Ohlson paid out almost all of its cash flow and profit as dividends, leaving little to reinvest in the business. Second, earnings per share have been in decline, and its dividend has been cut at least once in the past. Using these criteria, Clas Ohlson looks quite suboptimal from a dividend investment perspective.
Now, if you want to look closer, it would be worth checking out ourfreeresearch on Clas Ohlsonmanagement tenure, salary, and performance.
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. |
Those Who Purchased Clas Ohlson (STO:CLAS B) Shares Three Years Ago Have A 34% Loss To Show For It
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While it may not be enough for some shareholders, we think it is good to see theClas Ohlson AB (publ)(STO:CLAS B) share price up 28% in a single quarter. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 34% in the last three years, significantly under-performing the market.
See our latest analysis for Clas Ohlson
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During the three years that the share price fell, Clas Ohlson's earnings per share (EPS) dropped by 42% each year. In comparison the 13% compound annual share price decline isn't as bad as the EPS drop-off. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines. This positive sentiment is also reflected in the generous P/E ratio of 79.87.
You can see how EPS has changed over time in the image below (click on the chart to see the exact 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. Dive deeper into the earnings by checking this interactive graph of Clas Ohlson'searnings, revenue and cash flow.
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Clas Ohlson the TSR over the last 3 years was -22%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
It's nice to see that Clas Ohlson shareholders have received a total shareholder return of 42% over the last year. Of course, that includes the dividend. There's no doubt those recent returns are much better than the TSR loss of 3.3% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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 Clas Ohlson by clicking this link.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SE exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Coloplast A/S (CPH:COLO B): Time For A Financial Health Check
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There are a number of reasons that attract investors towards large-cap companies such as Coloplast A/S (CPH:COLO B), with a market cap of ø157b. Market participants who are conscious of risk tend to search for large firms, attracted by the prospect of varied revenue sources and strong returns on capital. But, the key to their continued success lies in its financial health. Let’s take a look at Coloplast’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto COLO B here.
Check out our latest analysis for Coloplast
COLO B's debt levels have fallen from ø3.3b to ø2.7b over the last 12 months , which is mainly comprised of near term debt. With this debt payback, the current cash and short-term investment levels stands at ø620m , ready to be used for running the business. Moreover, COLO B has generated cash from operations of ø4.2b in the last twelve months, leading to an operating cash to total debt ratio of 156%, signalling that COLO B’s operating cash is sufficient to cover its debt.
At the current liabilities level of ø5.5b, the company has been able to meet these commitments with a current assets level of ø6.1b, leading to a 1.12x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Medical Equipment companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
COLO B is a relatively highly levered company with a debt-to-equity of 42%. This isn’t surprising for large-caps, as equity can often be more expensive to issue than debt, plus interest payments are tax deductible. Accordingly, large companies often have lower cost of capital due to easily obtained financing, providing an advantage over smaller companies.
COLO B’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 COLO B's liquidity needs, this may be its optimal capital structure for the time being. This is only a rough assessment of financial health, and I'm sure COLO B has company-specific issues impacting its capital structure decisions. You should continue to research Coloplast to get a more holistic view of the large-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for COLO B’s future growth? Take a look at ourfree research report of analyst consensusfor COLO B’s outlook.
2. Valuation: What is COLO B 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 COLO B 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. |
Ashton Kutcher and Former Stepdaughter Rumer Willis Hang Out at Los Angeles Bar
Ashton Kutcher is spending some quality time with his former step-daughter, Rumer Willis . The 41-year-old actor -- who was previously married to Willis' mother, Demi Moore , from 2005 to 2013 -- was spotted having a lively chat with the 30-year-old Masked Singer star outside a bar in Los Angeles. Kutcher and Willis headed out together to grab a bite and a drink at the Black Market Liquor Bar in Studio City on Wednesday, and the Ranch star appeared particularly animated and enthusiastic as they talked while walking in to the trendy locale. Both celebs kept their looks casual yet classy, with Kutcher rocking a black jacket and blue jeans with a ball cap, while Willis -- sporting jet black hair -- kept warm in an off-white sweater and tan slacks. MIAN / BACKGRID Despite Kutcher's marriage to 56-year-old Moore ending several years ago, the actor has reportedly remained close friends with Willis , as well as her sisters -- Scout, 27, and Tallulah, 24. Kutcher's wife, Mila Kunis -- with whom he shares 4-year-old daughter Wyatt and 2-year-old son Dimitri -- sat down on Marc Maron's WTF podcast last July, and defended the actor's "normal, real" marriage to Moore and talked about Kutcher's lasting friendship with his former step-daughters. "They had three kids they were raising," Kunis said. "It was, like, a normal life… He was younger, but he loved those kids." Check out the video below to hear more. RELATED CONTENT: Ashton Kutcher and Mila Kunis Roast Tabloid Rumors About a Split Demi Moore Will Open Up About Her Marriages to Ashton Kutcher and Bruce Willis in New Memoir Ashton Kutcher 'Texts' Date Night Selfie With Mila Kunis After Sharing His Phone Number Online Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear |
Coloplast A/S (CPH:COLO B): Time For A Financial Health Check
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The size of Coloplast A/S (CPH:COLO B), a ø157b large-cap, often attracts investors seeking a reliable investment in the stock market. Risk-averse investors who are attracted to diversified streams of revenue and strong capital returns tend to seek out these large companies. But, the health of the financials determines whether the company continues to succeed. Today we will look at Coloplast’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. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto COLO B here.
View our latest analysis for Coloplast
COLO B's debt levels have fallen from ø3.3b to ø2.7b over the last 12 months , which is mainly comprised of near term debt. With this reduction in debt, the current cash and short-term investment levels stands at ø620m , ready to be used for running the business. Moreover, COLO B has generated ø4.2b in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 156%, signalling that COLO B’s debt is appropriately covered by operating cash.
At the current liabilities level of ø5.5b, the company has been able to meet these commitments with a current assets level of ø6.1b, leading to a 1.12x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. Usually, for Medical Equipment companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With a debt-to-equity ratio of 42%, COLO B can be considered as an above-average leveraged company. This isn’t surprising for large-caps, as equity can often be more expensive to issue than debt, plus interest payments are tax deductible. Accordingly, large companies often have lower cost of capital due to easily obtained financing, providing an advantage over smaller companies.
COLO B’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 COLO B's financial health. Other important fundamentals need to be considered alongside. You should continue to research Coloplast to get a better picture of the large-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for COLO B’s future growth? Take a look at ourfree research report of analyst consensusfor COLO B’s outlook.
2. Valuation: What is COLO B 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 COLO B 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. |
Do Institutions Own Shares In Columbus A/S (CPH:COLUM)?
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The big shareholder groups in Columbus A/S (CPH:COLUM) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.
With a market capitalization of ø1.5b, Columbus is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about COLUM.
See our latest analysis for Columbus
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.
Columbus already has institutions on the share registry. Indeed, they own 13% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Columbus, (below). Of course, keep in mind that there are other factors to consider, too.
Columbus is not owned by hedge funds. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can see that insiders own shares in Columbus A/S. As individuals, the insiders collectively own ø43m worth of the ø1.5b company. This shows at least some alignment. You canclick here to see if those insiders have been buying or selling.
With a 39% ownership, the general public have some degree of sway over COLUM. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It seems that Private Companies own 45%, of the COLUM stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Could Columbus A/S's (CPH:COLUM) Investor Composition Influence The Stock Price?
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If you want to know who really controls Columbus A/S (CPH:COLUM), 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. We also tend to see lower insider ownership in companies that were previously publicly owned.
Columbus is not a large company by global standards. It has a market capitalization of ø1.5b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about COLUM.
Check out our latest analysis for Columbus
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Columbus already has institutions on the share registry. Indeed, they own 13% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 Columbus's earnings history, below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Columbus. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
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.
I can report that insiders do own shares in Columbus A/S. In their own names, insiders own ø43m worth of stock in the ø1.5b 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.
The general public, with a 39% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Our data indicates that Private Companies hold 45%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Should Comer Industries S.p.A. (BIT:COM) Be Your Next Stock Pick?
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Comer Industries S.p.A. (BIT:COM) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of COM, it is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at thereport on Comer Industries here.
COM delivered a bottom-line expansion of 37% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, COM also outperformed its industry, which delivered a growth of 8.3%. This paints a buoyant picture for the company. COM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. COM's has produced operating cash levels of 0.41x total debt over the past year, which implies that COM's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Comer Industries, I've compiled three important factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for COM’s future growth? Take a look at ourfree research report of analyst consensusfor COM’s outlook.
2. Valuation: What is COM 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 COM is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of COM? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Grayscale Hits $3 Billion in Crypto Assets as Bitcoin Price Rages On
The price of bitcoin has more than tripled this year, making it one of thebest performing asset classesout there. Not surprisingly, institutional investors have piled into bitcoin to take advantage of the terrific price rally and mint more money.
This is evident from the latest data from bitcoin-focused investment firm Grayscale, whose total assets under management (AUM) just crossed the $3 billion mark.
Analystsexpectedinstitutional investors to drive into cryptocurrencies this year, and that has been the case so far.
Grayscale reported in May that hedge funds went on a bitcoin buying spree. In the first quarter of 2019, hedge fund inflows into Grayscale’s productsshot upto $24 million as compared to just $1 million in Q4 2018. The firm also added that 56% of its total investments during the quarter were driven by hedge fund inflows, leading to a 42% quarter-over-quarter jump in the firm’s total inflows.
Grayscale’s publicly-quoted Bitcoin Investment Trust (GBTC) seems to be the biggest beneficiary of the hedge fund inflows. The product accounted for nearly $2.85 billion of the firm’s total assets under management according to the latest report.
Read the full story on CCN.com. |
London violence: Teenager dies in Shepherds Bush stabbing
A teenager has been stabbed to death in west London (Flickr/file photo) A teenager has been stabbed to death in west London, in yet another night of violence for the capital. The victim, believed to be aged 18, was found with a stab injury in Uxbridge Road, Shepherd's Bush, on Wednesday night. Officers from the Metropolitan Police were called at about 9.20pm, along with paramedics and the London Air Ambulance. The teenager died at the scene in Uxbridge Road, Shepherds Bush (Google) Despite the efforts of medics, the teenager died at the scene a short time later. It is the latest in a series of violent incidents in the capital, which saw five killings in six days earlier this month. A murder investigation has been launched and police are working to track down those involved. Detective Inspector Luke Wyllie, from Hammersmith and Fulham, said: "A young man's life has been tragically cut short. Read more from Yahoo News UK: Woman facing jail after falsely claiming she was raped in the back of taxi Dead puppy tied up in small ball washed up on Kent beach Boy, 12, arrested on suspicion of homophobic assault in Liverpool "Our thoughts are with his friends and family at this very difficult time. We are doing everything we can to apprehend those involved. "Extra police and specialist units are working on the ground now to build a clearer picture of what took place and work to protect and reassure those in the local community.” A Section 60 order - which gives police the power to stop and search people in a designated area - has been put in place in Shepherd's Bush and Notting Hill until Thursday afternoon. What’s just happened Uxbridge Road #shepherdsBush ? Ambulance and at least six police cars. Looks more incident than accident. — CentralActon (@CentrAct1) June 26, 2019 Police are in the process of informing the teenager's next of kin and a post-mortem examination will be held in due course. The death follows the fatal shooting of 25-year-old Edward Simpson in Feltham, west London, last Friday. Story continues Anyone with information on the Shepherd's Bush incident is asked to contact police on 101, quoting reference 8782/26 June, or call Crimestoppers anonymously on 0800 555 111. ---Watch the latest videos from Yahoo UK--- |
Malaysian artist's "Stranger Things" fan art gets featured by Netflix!
Malaysian artist Lyn-Hui Ong's "Stranger Things" fan art. 27 Jun – We know Malaysia boasts an amazing number of talented homegrown artists and one of them recently had the honour of being featured by Netflix on the streaming giant's social media! It's all thanks to her "Stranger Things" fan art, which interprets the "Stranger Things Season 2" episode, "Chapter Two: Trick or Treat, Freak". Lyn-Hui Ong, the Penang-born graphic designer and children's book illustrator who is also a co-founder of ForReal Studio, is among the 18 artists from around the world that was tapped by Netflix to interpret 18 different episodes from the first and second seasons of "Stranger Things". "I know I've shared this in my story before but it still feels unreal! I was given the opportunity to work on this commission illustration among 17 artists worldwide for Netflix for the #StrangerRewind project, which means season 3 is almost here AHHH !!!" says the caption that accompanied Ong's post of it on Instagram. We can certainly imagine her excitement as the fan art was shared by @strangerthingstv on Instagram and Facebook. Lyn-Hui Ong also shared on her Instagram a sketch of her fan art with details. In the same post, she shared a sketch detailing what goes on in her adorable fan art and several close-ups so that the details she put into her art can really be appreciated. The new season of "Stranger Things" premieres this 4 July but before that fans can re-watch the first two seasons on Netflix. Season 3 will follow Eleven and her friends in the summer of 1985 in Hawkins, Indiana. As romance blossoms and complicates the group's dynamic, they will have to figure out how to grow up without growing apart. When enemies old and new threaten the town, they will have to band together to survive, and remember that friendship is always stronger than fear. |
Nifty, Sensex reverse course to end flat on derivatives expiry day
BENGALURU (Reuters) - Indian shares erased early gains to settle largely flat on Thursday due to volatility around the expiry of June derivative contracts, with Reliance Industries Ltd and Tech Mahindra Ltd among the biggest losers.
The broader NSE Nifty closed 0.05% lower at 11,841.55, while the benchmark BSE Sensex was flat at 39,586.41.
Reliance Industries ended 1.6% lower, while Tech Mahindra shed 2.3%.
(Reporting by Krishna V Kurup in Bengaluru; Editing by Rashmi Aich) |
Is CRH plc's (ISE:CRG) 2.5% Dividend Worth Your Time?
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Dividend paying stocks like CRH plc (ISE:CRG) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
A 2.5% yield is nothing to get excited about, but investors probably think the long payment history suggests CRH has some staying power. The company also bought back stock during the year, equivalent to approximately 3.4% of the company's market capitalisation at the time. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 42% of CRH's profits were paid out as dividends in the last 12 months. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. CRH paid out 67% of its free cash flow last year, which is acceptable, but is starting to limit the amount of earnings that can be reinvested into the business. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
As CRH has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick check of its financial situation can be done with two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. CRH has net debt of 2.10 times its EBITDA. Using debt can accelerate business growth, but also increases the risks.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Net interest cover of 6.93 times its interest expense appears reasonable for CRH, although we're conscious that even high interest cover doesn't make a company bulletproof.
Consider gettingour latest analysis on CRH's financial position here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. CRH has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been cut by more than 20% on at least one occasion historically. During the past ten-year period, the first annual payment was €0.69 in 2009, compared to €0.72 last year. Its dividends have grown at less than 1% per annum over this time frame.
Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent.
Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see CRH has grown its earnings per share at 42% per annum over the past five years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. Firstly, we like that CRH pays out a low fraction of earnings. It pays out a higher percentage of its cashflow, although this is within acceptable bounds. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Overall we think CRH is an interesting dividend stock, although it could be better.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 23 analysts we track are forecasting for CRHfor freewith publicanalyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
RPT-INSIGHT-Ukrainian reformers under fire as battle over PrivatBank heats up
(Repeats, no changes to text)
* Ukraine's PrivatBank was nationalised in late 2016
* Former central bank chief under fire over the decision
* Former owner wants PrivatBank nationalisation overturned
* Fate of PrivatBank important to relations with IMF
By Natalia Zinets
KIEV, June 27 (Reuters) - The day after Ukraine elected a new president in April, former central bank chief Valeria Gontareva was summoned for questioning as a suspect in a corruption investigation.
Days later, a Ukrainian journalist launched a Facebook campaign against Gontareva, accusing her of corruption. At his request, thousands of people sent emails to her new employer in London accusing her of pilfering state funds.
Gontareva, a liberal economic reformer who quit as the National Bank of Ukraine's governor in April 2017, denies wrongdoing. She believes she is a victim of "political persecution" and is afraid to set foot in Ukraine.
Gontareva, 54, says she is being hounded as part of a long-running battle over her decision in December 2016 to nationalise PrivatBank, Ukraine's biggest lender. In doing so, she took on Ihor Kolomoisky, the oligarch who was the bank's main owner.
Gontareva says Kolomoisky's allies have been emboldened by Volodymyr Zelenskiy's election victory on April 21 because the new president and the tycoon are business associates. The aim, she says, is to undermine her and other reformers' credibility as Kolomoisky tries to regain control of PrivatBank.
"This is not just a coincidence," Gontareva told Reuters by telephone from London, where she now works as a Senior Policy Fellow at the London School of Economics. "They have become more active, because they feel complete impunity, a lack of justice in the country ... They are Kolomoisky's clowns."
Reuters has seen no evidence that Kolomoisky, or the new presidential administration, was behind the General Prosecutor's request to question Gontareva or the Facebook campaign.
Kolomoisky denies orchestrating a campaign against Gontareva. Zelenskiy has said he will not help Kolomoisky in the legal battle over PrivatBank.
How the battle unfolds could be crucial to Ukraine's chances of continuing its recovery from the economic and political turmoil of 2014, when weeks of street protests toppled a pro-Moscow president, pro-Russian separatists rose up in eastern Ukraine and Russia annexed the Crimea peninsula.
The central bank said PrivatBank had been used for fraud and money-laundering. Kolomoisky has denied wrongdoing and is fighting the decision. A Kiev court ruled on April 18 that the nationalisation was illegal, and the central bank has appealed against the ruling.
The central bank says that reversing the nationalisation would rock investor confidence and sour relations with the International Monetary Fund, which helps keep Ukraine's economy on an even keel with a $3.9 billion aid-for-reforms program.
In a sign of investors' nervousness about the April 18 court ruling, deposits worth more than $300 million were taken out of PrivatBank in the next few weeks.
COFFIN LEFT OUTSIDE CENTRAL BANK
As central bank chief from June 2014, Gontareva closed dozens of banks in a clean-up of the banking system, accusing some of being money-laundering vehicles or personal piggy banks for oligarchs.
Her reforms were praised by the IMF but made her unpopular with some Ukrainian lawmakers and business leaders. Opponents once left a coffin with a cutout of her face at the central bank's entrance.
The criminal investigation in which Ukraine's General Prosecutor asked to question Gontareva dates to 2013 and centres around allegations that associates of former President Viktor Yanukovich helped him steal 2.069 billion hryvnia -- $259 million at the exchange rate at the time -- from the state.
Yanukovich, who fled to Russia in February 2014 after weeks of street protests, has denied wrongdoing. Gontareva says the allegations against her are "utter rubbish" and part of a vendetta against economic reformers. She says she has never met Yanukovich.
The General Prosecutor's office did not immediately respond to a Reuters request for comment, including on whether Gontareva is still wanted for questioning.
She told Reuters the April 18 court decision on PrivatBank and the Facebook campaign against her were part of "a planned act intended to destroy all our achievements over the past five years."
Alexander Dubinsky, who launched the Facebook campaign, says that under Gontareva, the central bank and Ukraine's economy suffered "enormous damage".
"She acted like a vulture, attacking weakened banks in order to create conditions for the plundering and redistribution of assets," he wrote in response to questions from Reuters.
The London School of Economics confirmed it had "a very large number" of similar emails critical of Gontareva. But an LSE spokesman said: "The School has not responded to the emails and will not be taking any action based on their contents."
Dubinsky works for the 1+1 television channel, which is owned by Kolomoisky, but he denies the oligarch is behind the Facebook campaign.
"As for your question regarding my relationship with Mr Kolomoisky, there is none," Dubinsky told Reuters.
It is not clear whether Dubinsky has any association with Zelenskiy but he is on a list of Zelenskiy's top 20 candidates running for parliamentary seats in an election next month.
"ODIOUS INDIVIDUALS"
Kolomoisky has accused Gontareva and a deputy governor of the central bank, Kateryna Rozhkova, of blocking attempts to reach a compromise between him and the Ukrainian authorities over PrivatBank through an intermediary, Rothschild bank. Gontareva and Rozhkova deny Kolomoisky's accusations.
The oligarch has called since the election for "odious individuals" he did not name to be removed from the bank.
Zelenskiy has said he will maintain the central bank's independence. Artem Shevalev, a member of PrivatBank's supervisory board, told Reuters he had seen no interference at the bank by the new presidential team.
But Shevalev said PrivatBank, the central bank and the finance ministry were under attack from "certain media sources" that were "targeting the nationalisation" of the bank.
He suggested the next stage of the legal battle over PrivatBank would show whether this campaign was proving effective.
"We are expecting the next court rulings (on PrivatBank's nationalisation) some time in July," he said. "That is your litmus test." (Additional reporting by Karin Strohecker in London, Writing by Matthias Williams, Editing by Timothy Heritage) |
What Investors Should Know About CRH plc's (ISE:CRG) Financial Strength
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CRH plc (ISE:CRG), a large-cap worth €23b, comes to mind for investors seeking a strong and reliable stock investment. Big corporations are much sought after by risk-averse investors who find diversified revenue streams and strong capital returns attractive. But, its financial health remains the key to continued success. This article will examine CRH’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look furtherinto CRG here.
See our latest analysis for CRH
CRG's debt levels surged from €8.0b to €9.4b over the last 12 months , which accounts for long term debt. With this growth in debt, the current cash and short-term investment levels stands at €2.4b , ready to be used for running the business. Additionally, CRG has produced cash from operations of €1.9b in the last twelve months, resulting in an operating cash to total debt ratio of 20%, signalling that CRG’s operating cash is sufficient to cover its debt.
With current liabilities at €6.1b, it seems that the business has been able to meet these obligations given the level of current assets of €9.5b, with a current ratio of 1.56x. The current ratio is calculated by dividing current assets by current liabilities. For Basic Materials companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
With a debt-to-equity ratio of 57%, CRG can be considered as an above-average leveraged company. This isn’t uncommon for large companies because interest payments on debt are tax deductible, meaning debt can be a cheaper source of capital than equity. Since large-caps are seen as safer than their smaller constituents, they tend to enjoy lower cost of capital. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. Preferably, earnings before interest and tax (EBIT) should be at least three times as large as net interest. In CRG's case, the ratio of 6.93x suggests that interest is appropriately covered. Large-cap investments like CRG are often believed to be a safe investment due to their ability to pump out ample earnings multiple times its interest payments.
At its current level of cash flow coverage, CRG has room for improvement to better cushion for events which may require debt repayment. However, the company exhibits proper management of current assets and upcoming liabilities. Keep in mind I haven't considered other factors such as how CRG has been performing in the past. I recommend you continue to research CRH to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CRG’s future growth? Take a look at ourfree research report of analyst consensusfor CRG’s outlook.
2. Valuation: What is CRG 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 CRG 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. |
Here's Why We Think Coloplast (CPH:COLO B) Is Well Worth Watching
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. And in their study titledWho Falls Prey to the Wolf of Wall Street?'Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeColoplast(CPH:COLO B). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.
View our latest analysis for Coloplast
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). That makes EPS growth an attractive quality for any company. I, for one, am blown away by the fact that Coloplast has grown EPS by 57% per year, over the last three years. Growth that fast may well be fleeting, but like a lotus blooming from a murky pond, it sparks joy for the wary stock pickers.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). Coloplast maintained stable EBIT margins over the last year, all while growing revenue 8.2% to ø17b. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
Fortunately, we've got access to analyst forecasts of Coloplast'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting.
We would not expect to see insiders owning a large percentage of a ø157b company like Coloplast. But we do take comfort from the fact that they are investors in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at ø40b. That equates to 25% of the company, making insiders powerful and aligned with other shareholders. Very encouraging.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Well, based on the CEO pay, I'd say they are indeed. I discovered that the median total compensation for the CEOs of companies like Coloplast, with market caps over ø52b, is about ø19m.
Coloplast offered total compensation worth ø10.4m to its CEO in the year to September 2018. That seems pretty reasonable, especially given its below the median for similar sized companies. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of a culture of integrity, in a broader sense.
Coloplast's earnings per share growth has been so hot recently that thinking about it is making me blush. The cherry on top is that insiders own a bucket-load of shares, and the CEO pay seems really quite reasonable. The strong EPS improvement suggests the businesses is humming along. Coloplast certainly ticks a few of my boxes, so I think it's probably well worth further consideration. Of course, just because Coloplast is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
I Built A List Of Growing Companies And Coloplast (CPH:COLO B) Made The Cut
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It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks with a good story, even if those businesses lose money. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.'
So if you're like me, you might be more interested in profitable, growing companies, likeColoplast(CPH:COLO B). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
See our latest analysis for Coloplast
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. It's no surprise, then, that I like to invest in companies with EPS growth. I, for one, am blown away by the fact that Coloplast has grown EPS by 57% per year, over the last three years. That sort of growth never lasts long, but like a shooting star it is well worth watching when it happens.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). While we note Coloplast's EBIT margins were flat over the last year, revenue grew by a solid 8.2% to ø17b. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.
Fortunately, we've got access to analyst forecasts of Coloplast'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting.
Since Coloplast has a market capitalization of ø157b, we wouldn't expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at ø40b. That equates to 25% of the company, making insiders powerful and aligned with other shareholders. Very encouraging.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Well, based on the CEO pay, I'd say they are indeed. I discovered that the median total compensation for the CEOs of companies like Coloplast, with market caps over ø52b, is about ø19m.
Coloplast offered total compensation worth ø10.4m to its CEO in the year to September 2018. That comes in below the average for similar sized companies, and seems pretty reasonable to me. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. I'd also argue reasonable pay levels attest to good decision making more generally.
Coloplast's earnings have taken off like any random crypto-currency did, back in 2017. The cherry on top is that insiders own a bucket-load of shares, and the CEO pay seems really quite reasonable. The sharp increase in earnings could signal good business momentum. Big growth can make big winners, so I do think Coloplast is worth considering carefully. Of course, just because Coloplast is growing does not mean it is undervalued. If you're wondering about the valuation, check outthis gauge of its price-to-earnings ratio, as compared to its industry.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is Countryside Properties PLC (LON:CSP) A Volatile Stock?
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Anyone researching Countryside Properties PLC (LON:CSP) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks are more sensitive to general market forces than others. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
Check out our latest analysis for Countryside Properties
Given that it has a beta of 0.83, we can surmise that the Countryside Properties share price has not been strongly impacted by broader market volatility (over the last 5 years). This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). Beta is worth considering, but it's also important to consider whether Countryside Properties is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of UK£1.3b, Countryside Properties is a small cap stock. However, it is big enough to catch the attention of professional investors. Small cap stocks ofthen have a higher beta than the overall market. However, small companies can also be strongly impacted by company specific developments, which can move the share price in ways that are unrelated to the broader market. That could explain why this one has a low beta value.
Since Countryside Properties is not heavily influenced by market moves, its share price is probably far more dependend on company specific developments. It could pay to take a closer look at metrics such as revenue growth, earnings growth, and debt. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Countryside Properties’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 CSP’s future growth? Take a look at ourfree research report of analyst consensusfor CSP’s outlook.
2. Past Track Record: Has CSP 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 CSP's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how CSP 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. |
Why Clas Ohlson AB (publ)’s (STO:CLAS B) Return On Capital Employed Looks Uninspiring
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Today we are going to look at Clas Ohlson AB (publ) (STO:CLAS B) to see whether it might be an attractive investment prospect. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business.
First up, we'll look at what ROCE is and how we calculate it. Second, we'll look at its ROCE compared to similar companies. And finally, we'll look at how its current liabilities are impacting its ROCE.
ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. All else being equal, a better business will have a higher ROCE. Overall, it is a valuable metric that has its flaws. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'.
Analysts use this formula to calculate return on capital employed:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Clas Ohlson:
0.053 = kr114m ÷ (kr4.0b - kr1.8b) (Based on the trailing twelve months to April 2019.)
So,Clas Ohlson has an ROCE of 5.3%.
View our latest analysis for Clas Ohlson
When making comparisons between similar businesses, investors may find ROCE useful. Using our data, Clas Ohlson's ROCE appears to be significantly below the 11% average in the Specialty Retail industry. This performance could be negative if sustained, as it suggests the business may underperform its industry. Separate from how Clas Ohlson stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. It is possible that there are more rewarding investments out there.
Clas Ohlson's current ROCE of 5.3% is lower than its ROCE in the past, which was 27%, 3 years ago. Therefore we wonder if the company is facing new headwinds. You can click on the image below to see (in greater detail) how Clas Ohlson's past growth compares to other companies.
It is important to remember that ROCE shows past performance, and is not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is, after all, simply a snap shot of a single year. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company.
Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets.
Clas Ohlson has total liabilities of kr1.8b and total assets of kr4.0b. Therefore its current liabilities are equivalent to approximately 46% of its total assets. Clas Ohlson has a medium level of current liabilities, which would boost its ROCE somewhat.
With this level of liabilities and a mediocre ROCE, there are potentially better investments out there. Of course,you might also be able to find a better stock than Clas Ohlson. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
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. |
Free college and debt forgiveness are within our grasp. Don't settle for less
Photograph: J Scott Applewhite/AP On Monday, Ilhan Omar, Pramila Jayapal and Bernie Sanders introduced the College for All Act of 2019. This groundbreaking piece of legislation would cancel all student debt and usher in an era of free college at all public two- and four-year institutions, paid for by a tax on Wall Street. Related: Bernie Sanders will close migrant detention centers if elected, says wife In less than a decade, grassroots organizers and the worst-off student debtors have pushed the twin issues of student loan cancellation and free education from the margins to the mainstream. Instead of droning on about interest rate tweaks or tuition freezes, some Democrats are finally talking about erasing loans and eliminating fees, acknowledging education as a human right instead of treating it as a commodity. Thanks to the efforts of regular people who decided to fight, we’re now witnessing a massive shift in public opinion and political possibility. Many countries take such policies for granted, but in the US winning free education will require a struggle of epic proportions. Sadly, the pushback won’t come just from those Republicans who want to see all institutions of learning privatized and citizens kept in the dark. It will also come from concern-trolling centrist liberals, who are already busy sounding the alarm that it would be unfair to cancel all student loans and treat education as a universal public good because some affluent people might benefit. As Third Way, a centrist and Wall Street-funded thinktank, tweeted on Monday: “Free college for all IS regressive. Blanket debt relief could increase inequality.” Faced with formerly radical positions – a full debt jubilee and free college – becoming popular, centrists are on the defensive and pushing for partial relief as a compromise. The Debt Collective, an economic justice group that has spent the last eight years fighting for free education and the abolition of student loans (disclosure: a group I organize with), went to Washington to endorse the Act. Debt Collective member Pamela Hunt, a single mother who owes over $200,000 in student loans, spoke at the press conference. Story continues “I came to Washington in 2015 as one of the first student debt strikers in US history. We organized for years and, as a result, some debtors won relief although I haven’t,” Hunt said. “Over the last four and a half years, I have struggled financially due to my student debt burden. I lost my home and nearly lost my life in a fight against cancer. But you know what I haven’t lost? These illegitimate and immoral student loans that are still haunting me.” She added: “I am not asking for forgiveness. I am seeking justice. The only justice is full debt cancellation.” The Debt Collective team cheered as Hunt spoke. We’ve seen firsthand the way poor people get crushed by our profit-driven, debt-for-education system. Our members are mainly working-class people – disproportionately people of color and women – struggling to keep a roof over their heads and feed themselves and their families because of their student debt. In other words, they are your average student debtors. In April, Senator Elizabeth boldly took the lead on this issue by promoting a policy that would cancel up to $50,000 in student loans based on income. Her proposal represented progress, but it doesn’t go nearly far enough. Under such a plan, many of Debt Collective’s members would still be trapped in the red. “Partial debt forgiveness won’t cut it,” Hunt said. “Even erasing $50,000 would still leave me with a balance of $162,000 in student debt.” She’s hardly alone. When Debt Collective co-director Laura Hanna asked our members how many people had balances exceeding $50,000 she was flooded by sums people have no hopes of ever repaying. Research backs this up: 17 percent of all student borrowers owe $50,000 or more on their student loans. This includes a growing number of parents who’ve taken out loans (called Parent Plus) to finance their children’s education. Related: 'There's white male bias': debating Democrat hopefuls vie for African American votes Justice demands a full student debt jubilee and free higher education for all, regardless of income. “The overwhelming majority of the people who will benefit from this legislation are working class people,” Sanders said at the press conference – and he’s right. As others have pointed out, there are no billionaires walking around with student debt. Student debt is already deeply regressive. Or, to put it another way: Student debt cancellation is already means tested, because people of means don’t need relief. The children of the truly wealthy are not teetering on the brink of default, because they don’t need to mortgage their futures to pay for university. The fact is that everyone will benefit from a student debt jubilee and free college, even if that benefit is indirect. Consider research from the Levy Institute, which shows that total student debt cancellation would be a significant financial stimulus , boosting the economy in ways that would be advantageous whether you are a debtor or not. And we all stand to gain from living in a society where people are encouraged to learn and expand their intellectual horizons. It’s a cliché, but democracies require an educated citizenry. Here’s the question we need to be asking. Not whether the College for All Act is perfect policy, but whose interests are ultimately served by partial debt relief and half-measures geared at making college “affordable” instead of free? The answer is the rich and powerful. Whose interests are served by partial debt relief and half-measures geared at making college affordable instead of free? History shows that, when forced to make concessions, capitalists prefer to do so in ways that divide people. That’s the real reason the 1% balks at universal programs. Means-testing social goods (restricting benefits programs to people below a certain income level) splits people into “makers” and “takers,” the “worthy” and “unworthy,” feeding the destructive idea that only a minority deserve access to public goods. In contrast, universal programs foster solidarity and are more robust, standing the test of time, despite persistent attacks and austerity – just look at social security – making strategies of divide and conquer more difficult. Not only would solidarity be strengthened, research suggests that full student debt cancellation would narrow the racial wealth gap. On average, people of color have higher loan balances, with labor market discrimination, lower wages, and less intergenerational wealth combining to make student debt a comparatively greater burden for black and brown borrowers (a similar dynamic is at play for women, who hold two-thirds of all student debt). In a 2018 Roosevelt Institute paper, Marshall Steinbaum found that student debt cancellation could have a profound effect: Instead of white households age 25-40 having twelve times more wealth than black households (12:1), the gap would fall to five times more (5:1). Far from a boon to the already-wealthy, a mass debt discharge would disproportionately benefit black and Hispanic families. Charging people for college out of pocket has been a failed social experiment. By slashing funding to education, federal and state governments shifted the burden to students and families, leaving 45 million people struggling to pay a combined $1.6tn and counting. At $15 an hour, and ignoring compound interest, that will take approximately 12 million years of round-the-clock labor to pay off. Surely that’s time and money that can be better spent – perhaps on fighting for universal healthcare, public housing, and fair wages next. It turns out you can’t spell “means tested” without “mean.” But you also can’t spell “free college” without “free”. Student debt cancellation and ending college tuition would be truly liberating proposals, giving people their lives and futures back and no longer forcing people to toil for hours, years, and decades to pay back loans that shouldn’t have been issued in the first place. The path is clear. We must address policy failure not by tinkering around the edges and punishing people by degrees (for trying to get a degree, which is hardly a crime), but by abolishing all student debt and making college free. Astra Taylor is an organizer with the Debt Collective and the other of Democracy May Not Exist, but We’ll Miss It When It’s Gone |
Jennifer Eberhardt on Nextdoor curbing racial profiling
Nextdoor is the wildly popular neighbourhood social network, which recently raised a new funding round valuing the company at more than $2bn . But four years ago, the company had a big problem. The platform acts as an online bulletin board, letting members post appeals to find lost pets, search for a local plumber, or alert their neighbours to suspected crimes in the area. Therein lay an issue. Users were calling out suspicious people hanging around their neighbourhoods, where the core reason for suspicion was the colour of their skin. Nextdoor, the social network for neighbors, is becoming a home for racial profiling, Splinter wrote in 2015 . Nextdoor consulted social psychology researchers for help. Speaking on Yahoo Finance UKs Global Change Agents with Lianna Brinded show, one of those researchers, Stanford Universitys award-winning social psychology professor Jennifer Eberhardt, said people are more likely to act on bias when they feel threatened and believe they need to act quickly. Watch the full Dr Jennifer Eberhardt Global Change Agents interview here [Nextdoor] realised they needed to slow people down to reduce the bias, Eberhardt said. Nextdoor outlined a clear definition of racial profiling in its community guidelines and prohibited it from the platform. The company also built a more comprehensive checklist for people describing suspicious activity. People have seen signs at the airport, If you see something, say something, Eberhardt said. They were trying to modify that, so it was, If you see something suspicious, say something specific. It couldnt be simply that they were a black man it had to be a behaviour that they were reporting that was suspicious, she said. They also had to describe that person with enough detail that people would be able to identify them. The prompt that appears when Nextdoor users report suspicious activity in their neighbourhoods: Nextdoor's crime and safety reporting form. Photo: Nextdoor Much of Eberhardts research has also focused on how people find it easier to recognise different faces of their own race than those of other races, a phenomenon known as the other race effect. If all youre doing is recognising people by their racial category, its kind of hard to distinguish one face from another once you are all placed in that one category so they were trying to disrupt that, Eberhardt said. Nextdoors move to slow people down when reporting suspicious activity curbed instances of racial profiling on the platform by 75%, Eberhardt said. A Nextdoor spokeswoman said fewer than 0.01% of posts contain racial profiling, but added, as a community building platform, we do not tolerate racial profiling and feel strongly that even one incident is too many. Story continues The company has also recently begun testing a new kindness reminders feature, another way to encourage members to slow down and think about the content they are posting. Nextdoors kindness reminders feature: Nextdoor's 'kindness reminders' feature. Photo: Nextdoor Global Change Agents with Lianna Brinded explores the stories of some of the most inspirational women across business, tech, and academia. Catch up on all the latest episodes here . |
'How Much Is a Little Girl Worth?': The Painful Financial Fallout of the Larry Nassar Case
Jan. 24, 2018, Rachael Denhollanderwalked into a Michigan courtroom to speak about the sexual abuse she suffered as a child from Larry Nassar. She was the last in an extraordinary procession of nearly 150 women to offer an impact statement at the sentencing hearing of the longtime USA Gymnastics and Michigan State University doctor.
Standing at a podium facing Nassar as her words were beamed out worldwide, Denhollander, a former gymnast—and now herself an attorney, an advocate for child safety, and a 34-year-old mother of four—concluded her statement with a question:
“How much is a little girl worth?”
For decades, Nassar’s work as a doctor treating athletes at Michigan State University (MSU) and for USA Gymnastics helped give him unfettered access to girls and young women that he serially sexually abused. Since Denhollander became the first survivor to publicly accuse the doctor of abuse, in September 2016, an estimated 500 women have come forward saying that they, too, were abused by Nassar. Some experts on the case think that number could eventually pass 1,000. In July 2017, Nassar pleaded guilty to child pornography charges, and months later, he pleaded guilty to multiple counts of sexual assault of minors. He will likely spend the rest of his life behind bars. In May 2018, MSU agreed to pay a $500 million settlement to victims who had sued the university, among the largest sums ever paid in relation to sex-abuse claims.
As a consequence of that financial victory, Denhollander’s question has taken on a painfully literal meaning.
While the settlement represented the end of one long, difficult story, it signaled the beginning of another. Survivors like Denhollander have been deep in negotiations with lawyers and mediators over the disbursement of the settlement funds. In a process that involves an awkward combination of apologetic recognition, dispassionate mathematics, and, often, a torturous recounting of abuse, hundreds of women are learning what their suffering was “worth” in dollar terms.
Roughly a year into the mediation process, many of the survivors have now received their answers—in decisions about their payouts, known as allocations. For one woman, it was a low five-figure sum that will help her retire credit card debt and relocate; for another, it was an amount in the high six figures, enough to cover bills related to her mental health treatment and to enable her to work with other survivors. For a third, it’s a donation to a nonprofit she cares about. For each, the check will be worth considerably less than its face value, after taxes and attorneys’ fees. And for many, the money itself is a hurtful reminder of the abuse that took place.
The idea of a process that attaches financial value to acts of abuse is appealing to no one, presenting a challenging tangle of money, law, and trauma. Advocates and survivors are the first to say that settlements are more about a sense of justice than about money; no sum could ever compensate for the damage done. At its worst, the process can feel like an invasive haggle that reduces the experience of profound harm to a flat dollar figure. “It’s the trauma you went through, basically, being ranked against [that of] other girls,” says Grace French, a Nassar survivor who works in marketing and is a cofounder of the Army of Survivors, a nonprofit that helps those who have experienced abuse. “I do think a lot of girls are still struggling with that after getting that number.”
Still, there’s an undeniable need for a systematic way to quantify the harm of abuse. The funds can enable survivors to afford therapy, help with medical bills, or provide reimbursement for lost work time, as well as acknowledge pain and suffering. And for institutions accused of harboring or covering up for an abuser, settlements offer an opportunity for restitution. It’s a chance to acknowledge the harm they’ve enabled and commit to a new, better path—but also to close the book on their liability, since plaintiffs who receive disbursements generally agree not to sue again.
The disbursement talks also bear an important distinction: They’ve become arguably the most visible example to date of how the process works in sex-abuse cases. Unlike plaintiffs in past settlements, many Nassar survivors haven’t signed the “silence clauses,” or nondisclosure agreements, that are often insisted upon by the institutions making the payments. (Indeed, the magnitude of Nassar’s admitted crimes may have taken away any leverage MSU might have had to press for such clauses.)
Denhollander and French and many other survivors have retained the right to talk not only about the abuse they underwent but also about the difficulty of getting financial redress—and they’re using their voices. That, in turn, has put them in the vanguard of a broader trend catalyzed by the #MeToo movement: a growing pressure on both not-for-profit institutions and private companies to publicly acknowledge and address problems of abuse and harassment within their ranks.
“It’s not a lawyer’s decision; it’s a client’s decision whether to accept or reject an offer,” says David Mittleman, a Lansing-based lawyer who represents more than 100 of the women in the MSU settlements. “And many want to be on the side of alerting the public.”
Over the past 18 months, Denhollander and dozens of other Nassar survivors spoke with me about their experiences, offering a detailed description of a corner of the law that is often shrouded in secrecy. Some elements of any settlement process, including details of specific conversations between survivors and mediators, are shielded by legal confidentiality rules. But together, the survivors’ accounts offer a close look at the protocols of a system that can wield tremendous influence, in ways that victims of abuse can find both empowering and upsetting.
“It’s fair to say that MSU’s approach to the settlement and related lawsuits is a legal-first approach,” Emily Guerrant, a spokeswoman for the school, said in a statement. “I think we, as a university, have learned a lot about dealing with sexual assault and survivors, and realize that we’ve made mistakes during the past few years in how survivors were treated.”
Denhollander says that she’s keenly aware of the system’s flaws and equally aware that the vast majority of sexual-assault survivors seldom receive any remedy, in or out of the justice system. “That’s something that societally we need to wrestle with—that that kind of sacrifice is what it takes” to win redress, she says. “That’s what sexual-assault survivors are up against when they go to report their abuser.”
Distributing fundsfrom a settlement is at best messy. “I don’t think I’ve ever done a compensation program where there hasn’t been some criticism,” says Kenneth Feinberg, a former adjunct professor at Harvard, Columbia, and NYU law schools. “It comes with the territory.”
Feinberg is the closest thing the world has to a dean of the subject. He was the “special master” on the case that set the template for modern settlements—the Agent Orange litigation in the 1980s, which ended withDow Chemical,Monsanto, and other companies creating a fund for Vietnam War veterans who had been harmed by the defoliant. Since then, Feinberg has overseen a fund that distributed $7.14 billion to families who lost loved ones in the Sept. 11, 2001, terrorist attacks (a processFortunedocumented in a 2002 feature); he’s currently working with survivors of sexual assault in cases involving the Catholic Church with co-administrator Camille S. Biros. “Money is a very poor substitute for damage, for loss, but that’s the American system,” he says. “Offering a family $5 million for the death of their son at the World Trade Center, it’s rather hollow.”
A mediator’s goals, Feinberg notes, include being transparent with survivors about the workings of that system—even when that involves assigning numbers to the immeasurable. The range of settlement sums is usually determined by plaintiff and defense lawyers, but it’s the mediator’s discretion to determine where an individual’s compensation falls. In administering the 9/11 fund, for example, Feinberg set a flat rate of $250,000 for pain and suffering for each victim and an additional $100,000 for each surviving spouse and dependent, avoiding the dilemma of determining whether one suffered more than another. For each victim, he then added factors such as likely lost wages based on Bureau of Labor Statistics data. The result, he says, was 5,300 eligible claims with no two identical amounts. “You have to have a methodology,” he says.
In sex-abuse cases, however, methodology can seem simplistic to the point of cruelty. The Altoona-Johnstown diocese of the Roman Catholic Churchhas reportedly paid out more than $15 millionto survivors of abuse by its clergy and other employees over the decades. In 2016, in a blistering report criticizing the diocese’s handling of the cases, the Pennsylvania state attorney general’s office published a chart that one bishop had used to determine payouts. The chart, which the report blasted as an example of “cold bureaucracy,” featured two columns: “Level of Abuse” and “Range of Payment.” One line reads, “above clothing, genital fondling, $10,000–$25,000.” Another reads, “Sodomy; Intercourse, $50,000–$175,000.”
In practice, the harmful effects of sexual abuse spread far beyond the acts themselves, encompassing a spectrum of emotional trauma, disability, and physical pain. Distinctions among kinds of suffering do matter, with huge consequences for survivors. But at some point, experts say, settlement negotiators have to agree on how to translate those distinctions into raw numbers. Actuaries for insurers sometimes devise point systems to determine how to allocate payouts. Those systems are often determined based on “peer” cases, with criteria intended to quantify how a survivor has been affected since the assault, and to project how the assault could continue to affect that person.
The $500 million Michigan State settlement in the Nassar case allocates $425 million to more than 330 claimants who came forward to sue before Dec. 6, 2017; the remaining $75 million is set aside for survivors who came forward after that date. (There are already 160 people in that second wave, sparking concerns about whether the fund is sufficient.) Roughly one-third will pay for fees for attorneys, including for time spent in the settlement process, according to someone familiar with the matter.
The task of distributing the $425 million pool falls to William Bettinelli, a former California judge who was appointed last July by the federal district court overseeing the case. (He is being paid from the overall settlement sum, as well.) In roughly 30 years as a professional mediator, Bettinelli has mediated cases involving catastrophic personal injuries, wrongful death claims, and environmental disasters, according to his firm’s website; his office did not respond to multiple requests for interviews over several months.
According to people familiar with the MSU case, Bettinelli has authorization to approve payouts of up to the low seven figures per person (before taxes and fees). People with knowledge of the process say Bettinelli is following an “allocation protocol” that includes conducting phone interviews with survivors to assess their settlement amount. Among the questions Bettinelli may ask: whether the abuse happened to them as minors, the duration and frequency of the abuse, and the nature of the abusive acts themselves. The mediator can also take into account such factors as the risk a survivor incurred by coming forward or any retaliation she faced for blowing the whistle.
In many cases, a survivor may bring forward evidence that wasn’t used in Nassar’s trials—psychologist evaluations and bills, for example. Several survivors submitted journal entries documenting the toll of abuse. New evidence can be submitted to the mediator as paperwork, be brought up in a meeting, or both.
One goal of a settlement process is that survivors won’t have to relitigate their case in order to receive their claims. Still, claimants often find themselves recounting horrific details of their experience—especially if that information doesn’t already exist in a trial record. And those conversations, even when a survivor stands on a mountain of evidence, can be awful.
Among the harmful impacts that Mittleman, the lawyer for many of the plaintiffs, says his clients have reported are attempted suicide, bills for stays at psychiatric hospitals, hair loss, gastrointestinal issues, and sleep disturbance. It’s not uncommon for therapy for those coping with the consequences of abuse to cost $150 to $300 per session, with multiple sessions a week or month, often for years. Jobs have been lost, marriages frayed.
The math of a settlement process ideally takes all of this into account. But Mittleman and other advocates say that talks sometimes place excessive emphasis on the number or duration of the assaults. In the context of wide-ranging harm, Mittleman asks, “Is 60 or 100 penetrations really worth more than one time? Because in my opinion, one time is too many.”
One of the aimsof a mediator or special master is to be both fair and swift. Meetings to determine a survivor’s payout—the worth of her suffering—can be surprisingly short, and in most cases, the mediator’s decision isn’t open to appeal. The number is final.
Some Nassar survivors I spoke with felt that the amount of money they received was fair and appropriate; others didn’t. And for many, a newly difficult phase began after the settlement—as they realized that money alone couldn’t right what had been made wrong.
Donna Markham’s daughter Chelsey was one of countless girls who bounded into gyms in Michigan in the early 1990s in hopes of making an Olympic team, like the heroes who graced the posters on her bedroom wall. As a child, prosecutors allege, Chelsey was sexually assaulted by Nassar during a doctor appointment. After the abuse, she spiraled into drugs, alcohol, depression, and angry spells that culminated with her taking her own life in 2009. She was 23 years old.
Markham has received her allocation, and she’s one of several survivors who felt perplexed by the math behind the payout and overwhelmed by the paperwork and logistics. Abuse “just eats away at your self-worth, your self-esteem,” Markham says. That fact, so clear to her, was something she felt the process couldn’t account for. “You can’t put a price on a human life,” Markham says. “And how do you make a determination on an award settlement when Chelsey had her entire life ahead of her?” In Markham’s telling, the most important outcome of the process wasn’t monetary: She has forged strong bonds with other women involved in the case and is engaged in advocacy work for those who were harmed. “I didn’t expect to get anything,” Markham says. “I just wanted Chelsey’s story to be told.”
Some survivors opted not to talk with Bettinelli. Having already testified in legal proceedings or given impact statements, they could let those records speak for them. Morgan McCaul, who was a high school student when she joined the group suing Nassar, is now enrolled at the University of Michigan: “I just felt like [a meeting] would be another thing on my plate that was unnecessary,” she says. McCaul received a payout earlier this year. “My life has not changed” as a result of the money, she says. “But I do know that I had a lot of anxiety in the year and a half leading up to the settlement disbursement, asking myself if it’s ethically sound to be handed a check for something that can never be quantified.” McCaul has channeled that energy into activism, to “leverage this horrible experience into something that can help other people.”
While nothing bars MSU settlement participants from publicly disclosing the sum they received, doing so is not considered a best practice: Talking about the number can make survivors prey to fraud or to criticism that they were fiscally motivated. It can also create conflict with friends or family—and with fellow survivors. Some survivors in the MSU case describe a catch-22 inherent in the process: Those who were resilient and fortunate enough to find help earlier, or to avoid the most severe trauma, sometimes felt that saying so was against their financial self-interest—or, conversely, that a larger check might mean you suffered more than most. That sense of awkward comparison, survivors say, adds to the pain of knowing that the allocation money is, in a sense, evidence of the abuse. As French, the Army of Survivors cofounder, says, “You cash that check, and it feels dirty.”
Olympic gold medalistMcKayla Maroney says that she was one of the girls whom Larry Nassar preyed upon. Before his arrest, she received a $1.25 million settlement from the national governing body for the sport, USA Gymnastics—one that included a nondisclosure provision. But after his attacks came to light, the organization faced criticism for effectively covering up Nassar’s behavior by gagging Maroney, and it said that it would not enforce the silence clause.
The cases against Nassar have played a crucial role in intensifying scrutiny of the use of nondisclosure agreements in abuse and harassment cases. Such NDAs have historically been ubiquitous—notably in agreements involving abuse in the Catholic Church. In the private sector, theVanderbilt Law Reviewpoints to data showing over one-third of the American workforce is subject to NDAs. There, critics note, nondisclosure language originally intended to protect trade secrets has been stretched to curb an employee’s right to speak out about workplace issues including sexual harassment.
“So much has been shielded by confidentiality,” says Minna J. Kotkin, a professor at Brooklyn Law School and director of its Employment Law Clinic. “We’re just beginning to know the start.”
The fact that many MSU settlements didn’t require NDAs reflects a broader shift in thinking about abuse, says Kotkin. What were once thought of as private matters that pitted the reputation of vulnerable individuals against those of more powerful authority figures or institutions are coming to be seen as a societal toxin or contagion—the kind of threat about which others should be warned.
It’s difficult to measure how widely this effect is playing out at companies. Some advocates warn that taking silence clauses completely off the table could work against survivors, by encouraging abusers to litigate rather than settle. Still, 12 states, including New York and California, have passed laws to narrow the scope of NDAs in harassment and sexual-assault whistleblowing.Microsoftsaid in late 2017 that it had removed NDAs involving employees who speak up about sexual harassment; other companies have followed suit, some after scandals within their ranks.
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Feinberg, the mediator, argues that the onus for silence should be reversed. “I think it’s very, very important that theinstitutionagree to confidentiality,” he says. “But if the individual victim wants to [speak out], I think that’s to be encouraged.” That represents a shift in the power balance, from the institution to the survivor.
Painful though it will be, many Nassar survivors will likely be speaking out for a long time. Yet to be resolved is whether MSU will expand its settlement fund if more victims come forward, and how it would pay additional costs. Also looming are lawsuits against USA Gymnastics and the U.S. Olympic Committee (USOC). USA Gymnastics enlisted Nassar as a team doctor for years and now faces 100 lawsuits from roughly 350 plaintiffs. In December it filed for Chapter 11 bankruptcy, a move that put the brakes on both the lawsuits and mediation discussions. (Leslie King, a spokeswoman for USA Gymnastics, says that the organization “has focused on keeping athlete safety and well-being at the forefront of its efforts.”)
Wrangling with these institutions has led Rachael Denhollander to put the settlement process on a long list of issues tied to abuse cases that she believes should change. At worst, she argues, the payments absolve big players of examining their own cultures, giving them in essence a clean slate. “There is a complete refusal to want to discover what went wrong, to admit what went wrong, and to deal with it,” she says.
Denhollander and her fellow survivors plan to speak up to keep pressure on the institutions where Nassar worked. “What lessons do we need to take away from this?” she says. “That sentencing hearing was so many women coming forward publicly. It was the first time the entire world has gotten to see names and faces and [connect them] with the idea of sexual assault. We weren’t just numbers anymore.”
Mary Pilon is the coauthor, with Carla Correa, ofTwisted: The Story of Larry Nassar and the Women Who Took Him Down, an audiobook to be released July 25th by Audible.
TheChildhelp National Child Abuse Hotlineis 1-800-4-A-Child or 1-800-422-4453.
A version of this article appears in the July 2019 issue of Fortune with the headline “‘How Much Is a Little Girl Worth?'”
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Why Trump and China Are Unlikely to Reach a Trade Deal at the G20 Summit
President Donald Trump plans to meet with Chinese President Xi Jinping at the G20 summit later this week, where the two will continue discussions on a comprehensive deal to end the trade war that has been escalating for more than a year.
Talks broke down last May after two days of what Trumpcalled“candid and constructive conversations.” While the U.S. is demanding protections for intellectual property rights and a more open economy, China has dug in its heels over the need for tariff removal and a balanced deal.
Although the collapse led the U.S. toincrease tariffsfrom 10% to 25% on an estimated $200 billion in goods, Trump continued to tout a strong relationship with Xi. China responded with a tariff increase on $60 billion of U.S. goods. The U.S. also placed Chinese telecommunications company Huawei on a blacklist over security concerns, prompting China to compile its own “Unreliable Entities List.”
The economic volley over these points and more seems to have no end in sight: while Trump and Xi may make progress at the G20 summit, it’s unlikely the nations will come up with a completed deal.
“At the summit itself there might be some positive movement, but I think it’s still going to be months before we get a truly detailed final agreement,” Professor David Denoon, director of New York University’s Center on U.S.-China Relations, toldFortune.“But I think we will get an agreement, because the we have much more leverage over China than they have over us.”
The U.S. imports more from China than China does from the U.S., giving it more product to potentially tax. Trump, for example, threatenedtariffs on about $300 billionin Chinese goods to get Xi to the table at G20. If implemented, the tariffs would cover nearly all remaining Chinese imports to the U.S.
More than 600 companieswrote to Trumpshortly after this announcement, expressing concern over the economic impact of such tactics.
“We know firsthand that the additional tariffs will have a significant, negative and long-term impact on American businesses, farmers, families and the U.S. economy,” wrote the companies’ leadership. “Broadly applied tariffs are not an effective tool to change China’s unfair trade practices. Tariffs are taxes paid directly by U.S. companies, including those listed below—not China.”
Consumer-based companies have seenlittle impactfrom the trade war, however, and experts say the U.S. economy isn’t taking much of a hit.
“The trade war, to date, has had a limited impact inside the U.S.,” said Denoon. “There’s a trade off between the national interest—which is clearly to get some kind of more balanced deal—and the interest of particular companies.”
Being more trade dependent, the Chinese economy has slowed more than the U.S. due to the trade war, but expansion has not halted. According to arecent reporton G20 economies from the World Trade Organization, China has maintained “steady if somewhat sluggish growth” despite the introduction of new import-restrictive measures numbering more than three-and-a-half times the average.
“Overall, the major impact of the tariffs has been to change the policy debate on trade with centrally-directed economies,” said Denoon. “In the U.S., both Democrats and Republicans now realize that China policy has to change.”
How to go about changing this policy, however, continues to be a matter of debate. David Dollar, a senior fellow in the John L. Thornton China Center at the Brookings Institution, argued recently that the U.S. should have approached China’s need for policy change by partnering with others like the European Union and Japan. Instead, Trump chose to launch a “bilateral trade war with China.”
“None of our partners agrees with this tactic,”wroteDollar. “While U.S.-China trade declines, their trade with China is increasing.”
Moreover, a deal is unlikely to be signed if Trump continues to make widespread demands, said Dollar.
“If President Trump wants to make a lasting deal with China then he will need to back away from maximalist demands such as changing a large number of Chinese laws and altering their whole economic system,” Dollar toldFortune.
Indeed, any “significant opening of the Chinese economy” is likely to be unpopular within the country, as it would lead to increased imports and possibly loss of employment, said Denoon. Changing the subsidies for state-owned enterprises in China and removing blocked access to outside companies is going to be difficult, too.
“It’s not just an economic issue, it’s a political issue,” said Denoon. “The people working in the state enterprises all have political connections.”
However Trump and Xi reach a deal, experts agree the world economy has months until the trade war makes a significantly lasting impact. The WTO stated in its report that while tariff increases have “roiled financial markets,” they have not yet led to “significant trade and GDP impacts.”
Still, the WTO warned that a recent study found a global trade war beginning this year could, within three years, reduce global GDP by 1.96% and global trade by 17%. In comparison, global GDP fell about 2.1% and global trade fell 12.4% during the global financial crisis of 2009.
Despite the potentially disastrous effects of a trade war with no end, Trump has been applauded for tackling the issues of Chinese trade, including its closed economy and regular intellectual property theft.
“Prior administrations—from the Clinton administration to George W. Bush to Obama—were simply not willing to pay any price. The Trump administration is willing to pay a price,” said Denoon. “The question is, can they skillfully negotiate out of this?”
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Should We Be Cautious About Clas Ohlson AB (publ)'s (STO:CLAS B) ROE Of 3.7%?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Clas Ohlson AB (publ) (STO:CLAS B).
Over the last twelve monthsClas Ohlson has recorded a ROE of 3.7%. Another way to think of that is that for every SEK1 worth of equity in the company, it was able to earn SEK0.037.
See our latest analysis for Clas Ohlson
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Clas Ohlson:
3.7% = kr73m ÷ kr1.9b (Based on the trailing twelve months to April 2019.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. 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 looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, as a general rule,a high ROE is a good thing. That means ROE can be used to compare two businesses.
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As shown in the graphic below, Clas Ohlson has a lower ROE than the average (12%) in the Specialty Retail industry classification.
That certainly isn't ideal. 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 might be wise tocheck if insiders have been selling.
Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used.
Although Clas Ohlson does use debt, its debt to equity ratio of 0.15 is still low. Its ROE isn't particularly impressive, but the debt levels are quite modest, so the business probably has some real potential. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities.
Return on equity is useful for comparing the quality of different businesses. 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.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
A Closer Look At Clas Ohlson AB (publ)'s (STO:CLAS B) Uninspiring ROE
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Clas Ohlson AB (publ) (STO:CLAS B).
Our data showsClas Ohlson has a return on equity of 3.7%for the last year. Another way to think of that is that for every SEK1 worth of equity in the company, it was able to earn SEK0.037.
See our latest analysis for Clas Ohlson
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Clas Ohlson:
3.7% = kr73m ÷ kr1.9b (Based on the trailing twelve months to April 2019.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all earnings retained by the company, plus any capital paid in by shareholders. 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 yearly profit. That means that the higher the ROE, the more profitable the company is. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies.
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, Clas Ohlson has a lower ROE than the average (12%) in the Specialty Retail industry.
That certainly isn't ideal. 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.
Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
While Clas Ohlson does have some debt, with debt to equity of just 0.15, we wouldn't say debt is excessive. Its ROE isn't particularly impressive, but the debt levels are quite modest, so the business probably has some real potential. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities.
Return on equity is one way we can compare the business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
USD/CAD Daily Forecast – Pair Showing Resiliency Ahead of US Q1 GDP
After touching the three-month bottom last day, theLoonie pairwas showing some resilient price actions in the early hours. At 04:15 GMT, the pair was already laundering near 1.3134 level, 0.11% up for the day. Notably, the USD Index was also 0.20% up at the same time frame.
The elevated sentiment in theGreenbackcame following positive updates on US-China trade front ahead of G20 meeting. Recentreportssuggested that Washington and the Beijing have agreed over atentative truceahead of Saturday’s meeting. As per the temporary agreement, the US counterpart will halt next round of tariffs on $300 billion worth of Chinese goods. However, Trump mentioned that if the parties failed to achieve a proper deal at the G20 meeting, then tariff attacks would continue.
In the meanwhile, theCrudeprices had knocked off the $59.90 bbl highest levels yesterday. Somehow, the accumulated gains seemed to fade in the morning. The commodity prices remained slightly declined, hovering near $59 bbl mark. The prices fell ahead of the G20 summit and a meeting of OPEC members to discuss on supply cut extensions.
Today, there is hardly any CAD-specific or Crude-specific economic event in the docket. Nevertheless, some significant events are coming up to affect the pair’s daily movements.The most crucial amongst them is the US Q1 GDP figures.The market has kept an in-line hope over this significant economic report, expecting 3.1% this time, same as previous.
Also, in the docket, there is the Jobless Claims data that reveals the Unemployment status quo. On an overall basis, the street analysts stay slightly bearish over this June Unemployment reports.
Meantime, the consensus estimates the QoQ Q1 Personal Consumption Expenditures (PCE) Prices & Core PCE to report in-line with their respective previous figures.
The Housing market data is something which can have a significant impact on the US economy. Today, the MoM May Pending Home Sales will report at around 14:00 GMT. The analysts stay highly bullish over the statistics expecting a 1.0% over last -1.5%.
The USD/CAD pair appeared to follow a downtrend since the previous few sessions. The last plunge in the pair had found some healthy support near 1.3107 level. On moving upside, the pair might experience strong resistive forces near 1.3164, 1.3197, and 1.3216 levels. Anyhow, the overall broad trend might remain bearish as the significant 200-day SMA hovered well above the pair. The RSI indicated positive movements today. The indicator jumped from 35 levels to 45.83 levels in the Asian session, revealing keen buyer interest.
On the broader timescale, the pair was trading below the Ichimoku clouds. The overhead hovering base line and conversion line confirms the downtrend. The pair had recently found support near 1.3108 level.
Thisarticlewas originally posted on FX Empire
• USD/CAD Daily Forecast – Falling Wedge Pattern Depicting Bullish Signals
• Crude Oil Price Update – Strengthens Over $65.91, Weakens Under $65.04
• E-mini S&P 500 Index (ES) Futures Technical Analysis – June 28, 2019 Forecast
• With the G20 Underway, the Markets Play it Safe Early
• Trump, Xi and the G20 Summit
• EUR/USD Mid-Session Technical Analysis for June 28, 2019 |
Should You Be Concerned About ChemoMetec A/S's (CPH:CHEMM) Historical Volatility?
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Anyone researching ChemoMetec A/S (CPH:CHEMM) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
See our latest analysis for ChemoMetec
Given that it has a beta of 0.83, we can surmise that the ChemoMetec share price has not been strongly impacted by broader market volatility (over the last 5 years). This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). 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 ChemoMetec fares in that regard, below.
ChemoMetec is a noticeably small company, with a market capitalisation of ø2.4b. Most companies this size are not always actively traded. It is not unusual for very small companies to have a low beta value, especially if only low volumes of shares are traded. Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility.
One potential advantage of owning low beta stocks like ChemoMetec is that your overall portfolio won't be too sensitive to overall market movements. However, this can be a blessing or a curse, depending on what's happening in the broader market. In order to fully understand whether CHEMM is a good investment for you, we also need to consider important company-specific fundamentals such as ChemoMetec’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for CHEMM’s future growth? Take a look at ourfree research report of analyst consensusfor CHEMM’s outlook.
2. Past Track Record: Has CHEMM 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 CHEMM's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how CHEMM 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. |
Amazon launches new in-store pickup option with Rite Aid as first partner
By Stephen Nellis
(Reuters) - Amazon.com has steadily added options for customers to receive their packages including in car trunks, inside home garages and potentially by drone.
On Thursday, Amazon added another alternative for U.S. customers: Walk into a nearby retailer and pick up an Amazon package over the counter.
The new option, called Counter, will launch with pharmacy Rite Aid Corp offering the service in 100 stores, with an expansion to 1,500 stores by year's end, the companies said. Amazon is also looking to get other retailers, including small businesses, to join the program as it expands.
The new option builds on Amazon's previous efforts to put lockers inside retail stores where customers can pick up packages. Patrick Supanc, world director of Amazon Hub, told Reuters the locker has spread to thousands of stores but some retailers do not have the space to accommodate a locker.
"Overall, we want to give every Amazon customer the option of an alternative delivery location," Supanc said. "This will become an extensive network."
Amazon said the service will not cost extra and will work with existing shipping options such as same-day service. When a package arrives at a store, the customer will get an email notification. Once in the store, the customer shows an employee a barcode, and the employee scans it, finds the package and hands it over.
The service was originally launched in the United Kingdom and Italy with retailers NEXT, Giunti Al Punto Librerie, Fermopoint and SisalPay. Amazon's Supanc would not comment on the financial details of the deals or whether Amazon is paying the retailers to participate.
Supanc said early data from the European launch has shown "very clear evidence" that the increased foot traffic from Amazon customers coming into partner stores increases sales there.
"They're being introduced to Amazon customers, and Amazon customers are getting to know that store. That additional footfall into their stores translates into additional sales for those partners," he said.
In a statement, Jocelyn Konrad, executive vide president of pharmacy and retail operations at Rite Aid, said the program, along with Amazon's lockers in Rite Aid stores, "creates a stronger in-store experience for existing customers and new customers that come in to pick up their packages."
Supanc said that the two companies were "not sharing any retail data with each other" and that the effort was focused on delivery experiences and not connected to Amazon's other efforts to get into pharmacy retailing, such as its purchase of startup https://www.reuters.com/article/us-pillpack-m-a-amazon-com/amazon-to-buy-pillpack-in-potentially-disruptive-drug-retail-push-idUSKBN1JO1RU PillPack last year.
(Reporting by Stephen Nellis in San Francisco; Editing by Cynthia Osterman) |
If You Had Bought Cofina SGPS (ELI:CFN) Shares Three Years Ago You'd Have Made 67%
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WhileCofina, SGPS, S.A.(ELI:CFN) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 21% in the last quarter. But that shouldn't obscure the pleasing returns achieved by shareholders over the last three years. After all, the share price is up a market-beating 67% in that time.
See our latest analysis for Cofina SGPS
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During three years of share price growth, Cofina SGPS achieved compound earnings per share growth of 6.9% per year. In comparison, the 19% per year gain in the share price outpaces the EPS growth. So it's fair to assume the market has a higher opinion of the business than it did three years ago. That's not necessarily surprising considering the three-year track record of earnings growth.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We know that Cofina SGPS has improved its bottom line lately, but is it going to grow revenue? Thisfreereport showing analyst revenue forecastsshould help you figure out if the EPS growth can be sustained.
Investors should note that there's a difference between Cofina SGPS's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Cofina SGPS's TSR of 67% for the 3 years exceeded its share price return, because it has paid dividends.
While the broader market lost about 3.9% in the twelve months, Cofina SGPS shareholders did even worse, losing 14%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 2.0% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Is Cofina SGPS cheap compared to other companies? These3 valuation measuresmight help you decide.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on PT 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. |
Exclusive: HG Vora builds Owens Corning stake to push for changes - sources
By Svea Herbst-Bayliss
(Reuters) - Hedge fund HG Vora Capital Management LLC is building a stake in Owens Corning to push the U.S. composites and building materials company to explore options that include a sale or a break-up, people familiar with the matter said on Wednesday.
HG Vora's investment in Owens Corning comes as the Toledo, Ohio-based company has been seeking ways to bolster its roofing and insulation businesses, which have suffered amid a slowdown in the construction of new homes.
The size of HG Vora's stake in Owens Corning could not be learned. The sources requested anonymity because the matter is confidential. HG Vora declined to comment.
"As a matter of policy, the company does not comment on interactions with specific shareholders or on speculation," Owens Corning spokeswoman Katie Merx said in an email.
Owens Corning shares rose 10% to $55.98 on the news, giving the company a market capitalization of $6.1 billion. The company also had total long-term debt as of the end of March of $3.7 billion.
Owens Corning makes glass fiber used to reinforce composite materials, as well as insulation and roofing used in residential, commercial and industrial applications. It has been raising some of its insulation and roofing prices in an effort to improve its profit margins.
HG Vora, founded by Parag Vora a decade ago, is coming off a big win at casino operator Caesars Entertainment Corp, where it built a stake before the company agreed to sell itself this week to Eldorado Resorts Inc in a $17 billion cash-and-stock deal.
There has been a wave of dealmaking activity in the construction sector. Masco Corp, which makes KraftMaid cabinets and Delta faucets, said earlier this month that it plans to sell its Masco Cabinetry, Milgard Windows and UK Window Group, while Armstrong Flooring said last year that it sold its wood flooring segment to private equity firm American Industrial Partners.
Eagle Materials Inc announced plans earlier this year to separate its heavy and light materials business and said it would pursue alternatives for its oil and gas proppants business, after being pressured to take steps by activist hedge fund Sachem Head Capital Management LP.
(Reporting by Svea Herbst-Bayliss in Boston; Editing by Nick Zieminski and Lisa Shumaker) |
Volatility 101: Should CdR Advance Capital (BIT:CDR) Shares Have Dropped 45%?
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Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. But if you buy individual stocks, you can do both better or worse than that. That downside risk was realized byCdR Advance Capital S.p.A.(BIT:CDR) shareholders over the last year, as the share price declined 45%. That's well bellow the market return of 0.9%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 18% in three years. The falls have accelerated recently, with the share price down 11% in the last three months. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers inour company report.
See our latest analysis for CdR Advance Capital
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.
Even though the CdR Advance Capital share price is down over the year, its EPS actually improved. It's quite possible that growth expectations may have been unreasonable in the past. The divergence between the EPS and the share price is quite notable, during the year. So it's well worth checking out some other metrics, too.
We don't see any weakness in the CdR Advance Capital's dividend so the steady payout can't really explain the share price drop. The revenue trend doesn't seem to explain why the share price is down. Of course, it could simply be that it simply fell short of the market consensus expectations.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at CdR Advance Capital's financial health with thisfreereport on its balance sheet.
We'd be remiss not to mention the difference between CdR Advance Capital'stotal shareholder return(TSR) and itsshare price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that CdR Advance Capital's TSR, which was a 43%dropover the last year, was not as bad as the share price return.
CdR Advance Capital shareholders are down 43% for the year (even including dividends), but the market itself is up 0.9%. 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 5.8% 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. Keeping this in mind, a solid next step might be to take a look at CdR Advance Capital's dividend track record. Thisfreeinteractive graphis a great place to start.
We will like CdR Advance Capital better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IT 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. |
What Kind Of Shareholder Owns Most Codemasters Group Holdings Plc (LON:CDM) Stock?
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The big shareholder groups in Codemasters Group Holdings Plc (LON:CDM) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of UK£314m, Codemasters Group Holdings is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about CDM.
View our latest analysis for Codemasters Group Holdings
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 Codemasters Group Holdings does have institutional investors; and they hold 56% 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Codemasters Group Holdings's historic earnings and revenue, below, but keep in mind there's always more to the story.
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 5.0% of Codemasters Group Holdings. 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
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.
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.
Shareholders would probably be interested to learn that insiders own shares in Codemasters Group Holdings Plc. As individuals, the insiders collectively own UK£12m worth of the UK£314m company. This shows at least some alignment. You canclick here to see if those insiders have been buying or selling.
The general public, with a 21% stake in the company, will not easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
We can see that Private Companies own 14%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
It's always worth thinking about the different groups who own shares in a company. But to understand Codemasters Group Holdings better, we need to consider many other factors.
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.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its 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. |
American Manganese Produces High Purity Material from Pilot Plant Project
RecycLiCo TM Patented Process Grows Pipeline of Strategic Opportunities 31 Non-Disclosure Agreements Across 9 Countries SURREY, BC / ACCESSWIRE / June 27, 2019 / American Manganese Inc. (TSX.V: AMY | OTC US: AMYZF| FSE: 2AM) ("AMY" or the "Company"), is pleased to report that the Company's contract lab, Kemetco Research Inc., has produced a high purity NMC (Nickel Manganese Cobalt) hydroxide filter cake ( Picture 1 , Picture 2 ) during the final stages of the RecycLiCo TM Pilot Plant project. The filter cake was produced using a 35L batch sample of Pregnant Leach Solution that was collected during Stages 1 and 2 of the Pilot Plant project. The advance in the Company's lithium-ion battery cathode recycling process has led to extensive interest worldwide, with 31 non-disclosure agreements signed so far with a variety of industry players in 9 different countries, all of whom are or have conducted due diligence and feasibility studies on the RecycLiCo TM process with the hope of entering into licensing or joint venture arrangements with the Company. American Manganese will continue Pilot Plant testing on material from multiple sources and chemistries as it prepares for potential commercial opportunities. "We are collaborating with industry leaders on incorporating our RecycLiCo TM patented process to reduce battery manufacturing cost, environmental damage, and reliance on mining, and we are working on converting these leads into partners," said Larry Reaugh, President and CEO of American Manganese. About Kemetco Research Inc. Kemetco Research is a private sector integrated science, technology and innovation company. Their Contract Sciences operation provides laboratory analysis and testing, field work, bench scale studies, pilot plant investigations, consulting services, applied research and development for both industry and government. Their clients range from start-up companies developing new technologies through to large multinational corporations with proven processes. Story continues Kemetco provides scientific expertise in the fields of Specialty Analytical Chemistry, Chemical Process and Extractive Metallurgy. Because Kemetco carries out research in many different fields, it can offer a broader range of backgrounds and expertise than most laboratories. About American Manganese Inc. American Manganese Inc. is a critical metals company focused on the recycling of lithium-ion batteries with the RecycLiCo TM Patented Process . The process provides high extraction of cathode metals, such as lithium, cobalt, nickel, manganese, and aluminum at battery grade purity, with minimal processing steps. American Manganese Inc. aims to commercialize its breakthrough RecycLiCo TM Patented Process and become an industry leader in recycling cathode materials from spent lithium-ion batteries. On behalf of Management AMERICAN MANGANESE INC. Larry W. Reaugh President and Chief Executive Officer Telephone: 778 574 4444 Email: lreaugh@amymn.com www.americanmanganeseinc.com www.recyclico.com Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law. SOURCE: American Manganese Inc. View source version on accesswire.com: https://www.accesswire.com/550080/American-Manganese-Produces-High-Purity-Material-from-Pilot-Plant-Project |
Coinbase Users Now Have 'Recharge' Capabilities With Bitcoin Lightning Network
Bitrefillhas made it possible for users of major Americancrypto exchangeandwalletservice Coinbase to access its full suite ofLightning Network(LN) services directly from within their native exchange accounts. The news was revealed in an officialtweetfrom Bitrefill on June 25.
The capability comes as part of Bitrefill’s newThor API, which allows multiple platform users to instantly open custom channels on the Lightning Network via Bitrefill’s nodes — whether those platforms offer native support for LN or not. They can also pay Lightning invoices directly from within their Coinbase account.
As previously reported, theLightning Networkworks to mitigate bitcoin'sscalability limitationsby opening state channels between users that keep the majority of transactions off-chain, turning to the underlying blockchain only to record the net results.
Swift on the heels of the service’s launch, users have alreadydemonstratedthe checkout process on Bitreill.
This spring, Cointelegraphreportedthat crypto payments processing startup Moon had launched a web browser extension that allows e-commerce shoppers to use their Lightning bitcoin wallets for purchases on e-commerce sites like Amazon.
Last year, blockchain app Lightning Ramp anticipated Bitrefill’s third-party Lightning integration with Coinbase with analpha demo releaseof its own solution.
Bitrefill’s services come amid continuing uncertainty as to when and whether Coinbase will eventually launch native Lighting support, as apparentlyimplied— but not committed to — by CEO Brian Armstrong, who remarked in January 2019:
“Bitcoin remains the most popular asset on Coinbase among new customers and longtime hodlers alike. It's great to see steady progress continue, including lightning network adoption and more.”
• Winklevoss’ Gemini Exchange Launches Chicago Office to Serve as Engineering Hub
• Former Visa Exec-Led Startup Ships Nearly 4,000 Crypto Cards in a Week
• Amazon-Owned Twitch Quietly Brings Back Bitcoin Payments
• Coinbase Pro Announces Support for Chainlink Token |
Why You Should Like Codemasters Group Holdings Plc’s (LON:CDM) ROCE
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Today we'll look at Codemasters Group Holdings Plc (LON:CDM) and reflect on its potential as an investment. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business.
First of all, we'll work out how to calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Finally, we'll look at how its current liabilities affect its ROCE.
ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. All else being equal, a better business will have a higher ROCE. Ultimately, it is a useful but imperfect metric. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.'
The formula for calculating the return on capital employed is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Codemasters Group Holdings:
0.19 = UK£11m ÷ (UK£77m - UK£21m) (Based on the trailing twelve months to March 2019.)
Therefore,Codemasters Group Holdings has an ROCE of 19%.
Check out our latest analysis for Codemasters Group Holdings
One way to assess ROCE is to compare similar companies. Using our data, we find that Codemasters Group Holdings's ROCE is meaningfully better than the 5.7% average in the Entertainment industry. I think that's good to see, since it implies the company is better than other companies at making the most of its capital. Regardless of the industry comparison, in absolute terms, Codemasters Group Holdings's ROCE currently appears to be excellent.
You can click on the image below to see (in greater detail) how Codemasters Group Holdings's past growth compares to other companies.
It is important to remember that ROCE shows past performance, and is not necessarily predictive. 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. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for Codemasters Group Holdings.
Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets.
Codemasters Group Holdings has total liabilities of UK£21m and total assets of UK£77m. As a result, its current liabilities are equal to approximately 27% of its total assets. The fairly low level of current liabilities won't have much impact on the already great ROCE.
Low current liabilities and high ROCE is a good combination, making Codemasters Group Holdings look quite interesting. Codemasters Group Holdings looks strong on this analysis,but there are plenty of other companies that could be a good opportunity. Here is afree listof companies growing earnings rapidly.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Do Insiders Own Shares In Cellularline S.p.A. (BIT:CELL)?
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If you want to know who really controls Cellularline S.p.A. (BIT:CELL), 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. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
Cellularline is not a large company by global standards. It has a market capitalization of €154m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about CELL.
Check out our latest analysis for Cellularline
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.
Cellularline already has institutions on the share registry. Indeed, they own 11% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Cellularline's historic earnings and revenue, below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Cellularline. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own some shares in Cellularline S.p.A.. In their own names, insiders own €14m worth of stock in the €154m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checkingif those insiders have been selling.
The general public, who are mostly retail investors, collectively hold 68% of Cellularline shares. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Our data indicates that Private Companies hold 12%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Could Cellularline S.p.A.'s (BIT:CELL) Investor Composition Influence The Stock Price?
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If you want to know who really controls Cellularline S.p.A. (BIT:CELL), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
Cellularline is a smaller company with a market capitalization of €154m, 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 take a closer look to see what the different types of shareholder can tell us about CELL.
See our latest analysis for Cellularline
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.
As you can see, institutional investors own 11% of Cellularline. 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 Cellularline's earnings history, below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Cellularline. There is some analyst coverage of the stock, but it could still become more well known, with time.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
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 Cellularline S.p.A.. It has a market capitalization of just €154m, and insiders have €14m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checkingif those insiders have been selling.
The general public -- mostly retail investors -- own 68% of Cellularline . This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
We can see that Private Companies own 12%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its 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. |
Cake Box Holdings (LON:CBOX) Shareholders Have Enjoyed A 38% Share Price Gain
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Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. For example, theCake Box Holdings plc(LON:CBOX) share price is up 38% in the last year, clearly besting than the market return of around -2.8% (not including dividends). That's a solid performance by our standards! We'll need to follow Cake Box Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
See our latest analysis for Cake Box Holdings
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Cake Box Holdings was able to grow EPS by 8.5% in the last twelve months. The share price gain of 38% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
Cake Box Holdings shareholders should be happy with thetotalgain of 39% over the last twelve months, including dividends. And the share price momentum remains respectable, with a gain of 9.7% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB 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. |
If You Had Bought Cake Box Holdings (LON:CBOX) Stock A Year Ago, You Could Pocket A 38% Gain Today
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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, theCake Box Holdings plc(LON:CBOX) share price is 38% higher than it was a year ago, much better than the market return of around -2.8% (not including dividends) in the same period. So that should have shareholders smiling. We'll need to follow Cake Box Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
View our latest analysis for Cake Box Holdings
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Cake Box Holdings was able to grow EPS by 8.5% in the last twelve months. The share price gain of 38% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
Thisfreeinteractive report on Cake Box Holdings'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
Cake Box Holdings shareholders should be happy with thetotalgain of 39% over the last twelve months, including dividends. And the share price momentum remains respectable, with a gain of 9.7% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. If you would like to research Cake Box Holdings in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
If you are like me, then you willnotwant 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 GB 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. |
Did You Miss Cofina SGPS's (ELI:CFN) 67% Share Price Gain?
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Cofina, SGPS, S.A.(ELI:CFN) shareholders might be concerned after seeing the share price drop 21% in the last quarter. But that doesn't change the fact that the returns over the last three years have been pleasing. In fact, the company's share price bested the return of its market index in that time, posting a gain of 67%.
Check out our latest analysis for Cofina SGPS
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
During three years of share price growth, Cofina SGPS achieved compound earnings per share growth of 6.9% per year. In comparison, the 19% per year gain in the share price outpaces the EPS growth. This indicates that the market is feeling more optimistic on the stock, after the last few years of progress. It's not unusual to see the market 're-rate' a stock, after a few years of growth.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We know that Cofina SGPS has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Cofina SGPS willgrow revenue in the future.
We'd be remiss not to mention the difference between Cofina SGPS'stotal shareholder return(TSR) and itsshare price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that Cofina SGPS's TSR of 67% over the last 3 years is better than the share price return.
While the broader market lost about 3.9% in the twelve months, Cofina SGPS shareholders did even worse, losing 14%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 2.0% 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. Is Cofina SGPS cheap compared to other companies? These3 valuation measuresmight help you decide.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on PT 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. |
MGC TOKEN Asia Pacific Regional Feedback Conference and Star Concert Tour Day 1!
NEW YORK, NY / ACCESSWIRE / June 27, 2019 / On June 26, 2019, the MGC TOKEN Asia Pacific Regional Feedback Conference and the Star Concert Tour officially started! Thousands of members from around the world are ready to set off. On the 26th, members from around the world arrived at MGC TOKEN hotel for check-in. MGC TOKEN also prepared exquisite gifts for members around the world. Upon arrival at the hotel, members received the exquisite gift packages prepared by MGC TOKEN. There are MGC TOKEN uniformly customized garments and gift bags , and also MGC TOKEN towel, luggage tag, mosquito bite ointment and sunscreen which MGC TOKEN carefully prepared for members. MGC TOKEN also prepared travel brochures for members, who can learn about travel itineraries in advance. On the same day, MGC TOKEN staff wore uniforms and custom-made welcoming logos at the hotel reception desk to help members check in and distribute gifts. after waiting for the member to arrive at the hotel reception. Members had free activities after checking in. Some of the members who arrived at the hotel in advance chose for outing sightseeing , while others choose to have a rest in the hotel. They looked forward to take off next day. Surprisingly, however, some global members arrived at Bangkok Airport in Thailand on the 26th and they are looking forward to this meeting. All MGC TOKEN members attending the conference are expected to arrive in Bangkok, Thailand on the evening of June 27! MGC TOKEN Asia Pacific Regional Feedback Conference and Star Concert Day 1 was successfully concluded! Through the event, it can be seen that MGC TOKEN global members are passionate about it and they look forward to the following days. We are also looking forward. See you in Bangkok on June 28th! mgctoken@gmail.com SOURCE: MGC TOKEN View source version on accesswire.com: https://www.accesswire.com/550107/MGC-TOKEN-Asia-Pacific-Regional-Feedback-Conference-and-Star-Concert-Tour-Day-1 |
Should You Be Worried About CFT S.p.A.'s (BIT:CFT) 4.7% Return On Equity?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand CFT S.p.A. (BIT:CFT).
Our data showsCFT has a return on equity of 4.7%for the last year. That means that for every €1 worth of shareholders' equity, it generated €0.047 in profit.
Check out our latest analysis for CFT
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for CFT:
4.7% = €957k ÷ €68m (Based on the trailing twelve months to December 2018.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all earnings retained by the company, plus any capital paid in by shareholders. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the profit over the last twelve months. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies.
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see CFT has a lower ROE than the average (12%) in the Machinery industry classification.
Unfortunately, that's sub-optimal. We'd prefer see an ROE above the industry average, but it might not matter if the company is undervalued. Nonetheless, it could be useful todouble-check if insiders have sold shares recently.
Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
CFT has a debt to equity ratio of 0.60, which is far from excessive. Its ROE is rather low, and it does use some debt, albeit not much. That's not great to see. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREEvisualization of analyst forecasts for the company.
But note:CFT 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. |
These Top 10 Altcoins Are Dropping Fast While Bitcoin Gains
It’s no secret that the Bitcoin price is gaining and gaining, but other coins up near the top have seen corrections as a result. Some coins automatically increase in value if they’re mostly traded against BTC.
If traders feel uncomfortable with these new values, they can trade these downwards, which is precisely what’s happened in at least the following five top altcoin markets:EOS, BNB, XRP, LTC, and BSV.
Hardest hit were Binance and Bitcoin SV, though likely for very different reasons.
Binance Coinmay have been pushed further than it wanted to go by other markets, leading it to claw back a little.
The recent resurgence in Bitcoin SV markets remains unexplained. Bitcoin SV was kicked off several major exchanges in recent times.
That Bitcoin SV sees a moderate 14% correction isn’t surprising at all. It’d be surprising if it somehow came out stronger percentage-wise than others.
Read the full story on CCN.com. |
Should We Be Cautious About CFT S.p.A.'s (BIT:CFT) ROE Of 4.7%?
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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). We'll use ROE to examine CFT S.p.A. (BIT:CFT), by way of a worked example.
Over the last twelve monthsCFT has recorded a ROE of 4.7%. One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.047 in profit.
View our latest analysis for CFT
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for CFT:
4.7% = €957k ÷ €68m (Based on the trailing twelve months to December 2018.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is the capital paid in by shareholders, plus any retained earnings. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, as a general rule,a high ROE is a good thing. Clearly, then, one can use ROE to compare different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see CFT has a lower ROE than the average (12%) in the Machinery industry classification.
Unfortunately, that's sub-optimal. 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 retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
CFT has a debt to equity ratio of 0.60, which is far from excessive. Its ROE is rather low, and it does use some debt, albeit not much. That's not great to see. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have 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. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Traders Managing Exposures Ahead of The G20 Summit
That dynamic is in play right now, and it is why we should follow and react to price moves above all else.
Take, for example, the barrage of headlines that are brewing in the lead-up to the G20 meeting, which plays out this Friday and Saturday. With the real focus falls on the Xi-Trump meeting, which looks to be taking place at 12:30 AEST on Saturday. Small focus also falls on the Putin-Trump meeting, which takes place at 3 pm (AEST).
Over the past 15 hours or so we’ve heard from US Treasury secretary, Steven Mnuchin, suggesting (and referring to a US/China trade deal) “we were about 90% of the way there” and “that’s there’s a path to complete this”. There was some buying of equities and risk on the back of these headlines, although, the market didn’t get overly excited as it was seen in the past tense, and recall, Mnuchin said they were 90% there in April shortly before Trump slapped fresh tariffs on China on 5 May.
Hu Xijin, the now widely-followed editor of the China Global Times (state-owned), then responded to Mnuchin’s comments on Twitter, detailing “no Chinese official now speaks with such optimism. With dozens of hours left before Xi-Trump summit, Chinese state media has been keeping criticizing the US harshly, a situation that never happened in the previous China-US summits.” This doesn’t sound like China are coming to the party with ideas of making a deal.
We also heard from Trump, himself, stating that “my Plan B is that if we don’t make a deal, I will tariff and maybe not at 25%, but maybe at 10%, but I will tariff the rest of the $600 billion that we’re talking about”. “My attitude is I’m very happy either way”. This is expectation management 101 and the bar for a clear resolution at this G20 Summit is now set accordingly.
The bottom line is the market has been hit by a barrage of noise that gives us less clarity than before.
With such conflicting headlines it’s no real surprise to see US equity indices doing very little, and if we look at the S&P500 (US500) through the cash session, the tape showed a slow bleed lower. If it weren’t for a 2.7% rally in crude, driven by a monster 12.7m barrel draw in the weekly DoE inventory report, which was over a two standard deviation event from the five-year average, then US equity indices would have been far lower on the session. I touch on the set-up (see below) in WTI crude in ‘chart of the day’, as we have hit the double-bottom target and horizontal resistance, so it would not surprise to see consolidation here.
We’ve seen reasonable selling in the US bond market overnight, but let’s not forget the world is very long bonds, and after James Bullard comments yesterday (which I covered in yesterday’s note), there is a slight paring back of expectations for a 50bp cut in the July FOMC meeting. And this remains a huge question for markets – will we see a 50bp or 25bp cut from the Fed in July FOMC meeting?
USDJPY has pushed into 107.70 following the move in US Treasury yields, but it feels like traders are lining up to sell rallies in this pair, although a look across the Asian markets we can see far more optimistic moves, which I will touch on in my daily trading wrap (video).
It’s the USD; specifically, that is of interest as we head into and post the G20 Summit, as it feels as though the market is looking for a sustained move lower.
Trump seemingly agrees, having again disclosed that the USD is too strong and that the EUR is too weak, and while I’ve not really heard any scuttlebutt for any bilateral or multilateral agreement to weaken the USD, the outcome of the Summit could influence expectations for a 50bp cut from the Fed. We know the Fed are looking at what is said or not said, and while the most likely situation is we simply hear a lot of bravadoes that the two sides plan to work closely together and agree to find a solution that is amicable, we still need to consider if the event poses a gapping risk for markets. Could we hear something that gives us genuine encouragement and we see price open significantly from Fridays close?
It certainly feels as though the probability is we will see traders manage exposures, refraining from adding too much additional risk just in case.
So, if the G20 proves to be a non-event, aside from broad financial conditions and inflation expectations, these data points should go some way to answering the 25/50bp debate:
• US ISM manufacturing – 2 July
• US Services ISM 4 July
• US non-farm payrolls – 5 July
• US CPI – 11 July
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Chris Weston, Head of Research atPepperstone(Read OurReview)
Thisarticlewas originally posted on FX Empire
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Charles Stanley Group plc (LON:CAY): Commentary On Fundamentals
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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Charles Stanley Group plc (LON:CAY), it is a notable dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at thereport on Charles Stanley Group here.
CAY's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that CAY manages its cash and cost levels well, which is an important determinant of the company’s health. Looking at CAY's capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Income investors would also be happy to know that CAY is a great dividend company, with a current yield standing at 3.0%. CAY has also been regularly increasing its dividend payments to shareholders over the past decade.
For Charles Stanley Group, there are three pertinent aspects you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for CAY’s future growth? Take a look at ourfree research report of analyst consensusfor CAY’s outlook.
2. Historical Performance: What has CAY's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of CAY? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Does Carlsberg A/S (CPH:CARL B) Have A Place In Your Dividend Portfolio?
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Today we'll take a closer look at Carlsberg A/S (CPH:CARL B) 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 stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
A 2.0% yield is nothing to get excited about, but investors probably think the long payment history suggests Carlsberg has some staying power. There are a few simple ways to reduce the risks of buying Carlsberg 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. Looking at the data, we can see that 52% of Carlsberg'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.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Carlsberg's cash payout ratio in the last year was 30%, which suggests dividends were well covered by cash generated by the business. It's positive to see that Carlsberg'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.
We update our data on Carlsberg every 24 hours, so you can always getour latest analysis of its financial health, here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. For the purpose of this article, we only scrutinise the last decade of Carlsberg's dividend payments. The dividend has been stable over the past 10 years, which is great. We think this could suggest some resilience to the business and its dividends. During the past ten-year period, the first annual payment was ø3.50 in 2009, compared to ø18.00 last year. This works out to be a compound annual growth rate (CAGR) of approximately 18% a year over that time.
With rapid dividend growth and no notable cuts to the dividend over a lengthy period of time, we think this company has a lot going for it.
Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. While there may be fluctuations in the past , Carlsberg's earnings per share have basically not grown from where they were five years ago. Flat earnings per share are acceptable for a time, but over the long term, the purchasing power of the company's dividends could be eroded by inflation.
To summarise, shareholders should always check that Carlsberg's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Carlsberg's payout ratios are within a normal range for the average corporation, and we like that its cashflow was stronger than reported profits. 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. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Carlsberg out there.
Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. See if the 21 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. |
Trump agrees to no preconditions for meeting with China's Xi: Kudlow
By Jeff Mason and Yawen Chen
WASHINGTON/BEIJING (Reuters) - U.S. President Donald Trump has agreed to no preconditions for his high-stakes meeting with Chinese President Xi Jinping this weekend and is maintaining his threat to impose new tariffs on Chinese goods, White House economic adviser Larry Kudlow said on Thursday.
Trump's decision on whether to impose new tariffs on a $300 billion list of nearly all remaining Chinese imports will depend on the outcome of the Saturday meeting on the sidelines of a G20 summit in Osaka, Japan, Kudlow told Fox News Channel.
"There are no preconditions," Kudlow said. "President Trump looks forward to the meeting. We believe it’s quite possible if the meeting goes well that the Chinese will come back to the negotiating table and we might be able to pick up where we left off in May."
Trump is set to meet Xi for talks in Osaka at 11:30 a.m. (0230 GMT) on Saturday.
Kudlow dismissed as "fake news" reports suggesting that China was insisting on lifting sanctions on Chinese telecom equipment giant Huawei Technologies Co Ltd [HWT.UL] as part of a trade deal and that the Trump administration had tentatively agreed to delay new tariffs on Chinese goods.
The Wall Street Journal reported that Xi planned to present Trump with terms for ending the trade dispute, including removing a ban on the sale of U.S. technology to Huawei, citing Chinese officials with knowledge of the plan.
The South China Morning Post jointly reported that Washington and Beijing had agreed to a tentative truce in their trade dispute that would delay new U.S. tariffs, citing sources.
Kudlow said Trump was comfortable with imposing additional tariffs on Chinese goods, but "if something good comes out of those talks or China were to offer us a good deal in the future then we might be willing to change some of our views."
Kudlow said Trump would continue to insist on structural changes to China's policies to protect American intellectual property and to end the forced transfer of technology to Chinese firms, two U.S. demands at the core of the trade dispute.
"Enforcement has to be part of the story and we don’t know how this is going to end," Kudlow said. "Folks ought to stop forecasting. Let’s just see what happens at these talks."
HUAWEI DEMANDS
In Beijing, China's commerce ministry said the United States should immediately remove sanctions on Huawei, but did not link the demand directly with the Trump-Xi meeting.
China opposes U.S. abuse of export controls and urges the United States to return to a track of cooperation, said the spokesman, Gao Feng.
Trump has suggested previously that the Huawei sanctions, which ban the firm from buying U.S. components and software on national security grounds, could be part of a trade deal with China.
Huawei has denied its products pose a security threat.
"We urge the United States to cancel immediately sanctions on Chinese companies including Huawei to push for the healthy and stable development in Sino-U.S. ties," Gao said, when asked whether the two sides were expected to reach a deal on measures facing Huawei and other Chinese tech firms.
Gao noted that Xi told Trump during a phone call last week - a gesture that rekindled hopes of a deal - that he hoped the United States could treat Chinese firms fairly.
Earlier in May, the United States accused China of reneging on pledges to reform its economy, infuriating Beijing and leading to a collapse in trade talks.
The U.S. Commerce Department announced last week it was adding several Chinese companies, and a government-owned institute involved in supercomputing with military applications, to its national security "entity list" that bars them from buying U.S. parts and components without government approval.
China would consider putting foreign firms on a list designating them "unreliable" if they adopted discriminatory measures against Chinese entities, hurt its industries and threaten its national security, Gao said.
Details of the list would be released soon, he said.
'PREVENT ESCALATION'
On May 31, the commerce ministry said it was working on an "unreliable entities list" after the United States imposed additional tariffs on $200 billion of Chinese goods and added Huawei to the U.S. export blacklist.
China's foreign ministry spokesman Geng Shuang stressed that China would not be scared by U.S. threats of more tariffs.
"The Chinese people are not afraid of pressure and never buy this kind of strategy," he told reporters.
In a commentary on Thursday, the ruling Communist Party's People's Daily said a U.S. attempt to win a "quick and easy" trade war had proven to be futile and the Chinese people must not be fearful.
"It's very clear that some people in the United States are insisting on curbing China's development using excuses of trade frictions," it said. "At this moment, fear is no use."
"If China concedes blindly under the pressure of (U.S.) hegemony, this will really be a volte-face-esque historic mistake."
(Reporting by Jeff Mason in Washington and Yawen Chen in Beijing; Additional reporting by Martin Pollard and Ben Blanchard in Beijing; Writing by David Lawder and Ryan Woo; Editing by Clarence Fernandez, Robert Birsel and Lisa Shumaker) |
How Does Investing In ChemoMetec A/S (CPH:CHEMM) Impact The Volatility Of Your Portfolio?
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If you're interested in ChemoMetec A/S (CPH:CHEMM), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks 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 greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
See our latest analysis for ChemoMetec
Given that it has a beta of 0.83, we can surmise that the ChemoMetec share price has not been strongly impacted by broader market volatility (over the last 5 years). This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see ChemoMetec's revenue and earnings in the image below.
ChemoMetec is a noticeably small company, with a market capitalisation of ø2.4b. Most companies this size are not always actively traded. Companies with market capitalisations around this size often show poor correlation with the broader market because market volatility is overshadowed by company specific events, or other factors. It's worth checking to see how often shares are traded, because very small companies with very low beta values are often only thinly traded.
The ChemoMetec doesn't usually show much sensitivity to the broader market. This could be for a variety of reasons. Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments. Alternatively, an strong dividend payer might move less than the market because investors are valuing it for its income stream. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as ChemoMetec’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for CHEMM’s future growth? Take a look at ourfree research report of analyst consensusfor CHEMM’s outlook.
2. Past Track Record: Has CHEMM 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 CHEMM's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how CHEMM 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. |
Should You Be Tempted To Sell Encavis AG (FRA:CAP) Because Of Its P/E Ratio?
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Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll show how you can use Encavis AG's (FRA:CAP) P/E ratio to inform your assessment of the investment opportunity.What is Encavis's P/E ratio?Well, based on the last twelve months it is 65.07. That is equivalent to an earnings yield of about 1.5%.
See our latest analysis for Encavis
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Encavis:
P/E of 65.07 = €6.83 ÷ €0.10 (Based on the year to March 2019.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
Companies that shrink earnings per share quickly will rapidly decrease the 'E' in the equation. Therefore, even if you pay a low multiple of earnings now, that multiple will become higher in the future. Then, a higher P/E might scare off shareholders, pushing the share price down.
Encavis shrunk earnings per share by 11% over the last year. And it has shrunk its earnings per share by 3.8% per year over the last five years. This growth rate might warrant a below average P/E ratio.
The P/E ratio indicates whether the market has higher or lower expectations of a company. The image below shows that Encavis has a higher P/E than the average (28.1) P/E for companies in the renewable energy industry.
That means that the market expects Encavis will outperform other companies in its industry. Clearly the market expects growth, but it isn't guaranteed. So investors should delve deeper. I like to checkif company insiders have been buying or selling.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. In other words, it does not consider any debt or cash that the company may have on the balance sheet. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
Encavis's net debt is considerable, at 156% of its market cap. This is a relatively high level of debt, so the stock probably deserves a relatively low P/E ratio. Keep that in mind when comparing it to other companies.
With a P/E ratio of 65.1, Encavis is expected to grow earnings very strongly in the years to come. With relatively high debt, and no earnings per share growth over twelve months, it's safe to say the market believes the company will improve its earnings growth in the future.
Investors should be looking to buy stocks that the market is wrong about. People often underestimate remarkable growth -- so investors can make money when fast growth is not fully appreciated. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
But note:Encavis 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. |
‘Welcome to the 2019 Bull Market’ - BitMEX Trades Record $16 Billion in One Day
BitMEX, the world’s largestcryptocurrencytrading platform, saw record volumes across its operations as bitcoin (BTC) hit $13,000. The company reported the figures onTwitteron June 26.
On Wednesday, BitMEX, which is the world’s single biggest bitcoin derivatives provider, reported more than $1 billion of open interest on the market. Trading topped $13 billion, with the number topping $16 billion across the platform’s product range.
Volume had swiftly risen above $10 billion in previous hours, leading CEOArthur Hayestodeclareany signs of the previous cryptocurrency bear market were officially gone.
“XBTUSD perp swap open interest is now in the 3 comma club. Welcome to the 2019 bull fucking market YeeHaw!” he excitedly summarized.
BitMEX’s successes follow on from records across bitcoin trading, withbitcoin futuresproviderCME Groupsimilarlyreportingall-time volume highs this month and last.
While analysts remain divided over which investor segment - retail or institutional - is propelling the current bull market, Hayes is gearing up to defend the newly-bullish bitcoin against one of its arch rivals.
As Cointelegraphreported, July’s Asian Blockchain Summit will feature a showdown with academic and infamous crypto naysayerNouriel Roubini, known as ‘Doctor Doom.’
Long a thorn in the side of many an industry business, Roubini’s ongoing Twitter rants have now become a talking point of BitMEX’s own publicity material.
“Yet, (Roubini) still believes that cryptocurrencies are a farce,” the tweet containing the trading figures added.
The event willprecedeanother meeting with a mission, this time featuring blockchain networkTron’sCEO, Justin Sun, and many others as they try to convinceWarren Buffettof crypto’s merits.
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• Bitcoin Falls Under $10,800 as US Stock Market Sees Minor Uptrend |
Does Encavis's (FRA:CAP) Share Price Gain of 12% Match Its Business Performance?
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The simplest way to invest in stocks is to buy exchange traded funds. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, theEncavis AG(FRA:CAP) share price is up 12% in the last year, clearly besting than the market return of around -6.1% (not including dividends). So that should have shareholders smiling. We'll need to follow Encavis for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
See our latest analysis for Encavis
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Over the last twelve months, Encavis actually shrank its EPS by 11%. So we don't think that investors are paying too much attention to EPS. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.
We think that the revenue growth of 7.7% could have some investors interested. Many businesses do go through a faze where they have to forgo some profits to drive business development, and sometimes its for the best.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Balance sheet strength is crucual. It might be well worthwhile taking a look at ourfreereport on how its financial position has changed over time.
When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Encavis's TSR for the last year was 16%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted thetotalshareholder return.
Encavis shareholders should be happy with thetotalgain of 16% over the last twelve months, including dividends. A substantial portion of that gain has come in the last three months, with the stock up 10% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. Before forming an opinion on Encavis you might want to consider the cold hard cash it pays as a dividend. Thisfreechart tracks its dividend over time.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on DE 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. |
Is Convatec Group Plc's (LON:CTEC) Balance Sheet A Threat To Its Future?
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Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Convatec Group Plc (LON:CTEC), with a market cap of UK£2.8b, often get neglected by retail investors. However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. CTEC’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look furtherinto CTEC here.
View our latest analysis for Convatec Group
CTEC has shrunk its total debt levels in the last twelve months, from US$1.8b to US$1.6b , which includes long-term debt. With this debt repayment, the current cash and short-term investment levels stands at US$316m , ready to be used for running the business. Additionally, CTEC has generated US$352m in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 21%, indicating that CTEC’s current level of operating cash is high enough to cover debt.
At the current liabilities level of US$331m, the company 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 calculated by dividing current assets by current liabilities. For Medical Equipment companies, this ratio is within a sensible range as there's enough of a cash buffer without holding too much capital in low return investments.
With total debt exceeding equity, CTEC is considered a highly levered company. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses. We can test if CTEC’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 CTEC, the ratio of 4.24x suggests that interest is appropriately covered, which means that lenders may be less hesitant to lend out more funding as CTEC’s high interest coverage is seen as responsible and safe practice.
Although CTEC’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. Since there is also no concerns around CTEC's liquidity needs, this may be its optimal capital structure for the time being. I admit this is a fairly basic analysis for CTEC's financial health. Other important fundamentals need to be considered alongside. You should continue to research Convatec Group to get a more holistic view of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CTEC’s future growth? Take a look at ourfree research report of analyst consensusfor CTEC’s outlook.
2. Valuation: What is CTEC 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 CTEC is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Limits of Employee Activism: CEO Daily
Good morning.
Readers of this column know I’ve been a fan of employee activism. Employees—millennials in particular—have been at the forefront of pushing companies to focus more on their social impact. At a time when talent is the key business differentiator, talented millennials are forcing employers to bow to their desire to work for companies that are doing good in the world.
But all good things get taken to excess. Two examples yesterday:
—Wayfair employeeswalked outof the company’s Boston headquarters because of a contract to sell furniture to a contractor furnishing migrant detention centers. Wayfair management responded that it was “proud to have such an engaged team that is focused on impacting our world in meaningful and important ways,” but said it is company practice to fulfill all lawful orders.
—Google employeespetitioned SF Prideto “revoke Google’s sponsorship of Pride 2019, and exclude Google from representation in the San Francisco Pride Parade on June 30th, 2019” because of controversial YouTube practices.
Both seem signs of activism run amuck. It is hard to see how stopping Wayfair furniture from reaching detention centers is an effective means of changing immigration policy. And even harder to see why preventing Google from giving money to LGBT causes is good for the LGBT cause.
But both events signal that these employee pressures are becoming increasingly difficult for companies to navigate.
News below. And be sure to read Mary Pilon’sdeep diveinto the difficulty of valuing girls’ lives in the Larry Nassar case.
Alan Murray@alansmurrayalan.murray@fortune.com
1. Top NewsBoeing WoesMore trouble for Boeing—the FAA found another software problem in its 737 Max jets, which will now need to stay grounded for longer, possibly into the fall. The new problem relates to stabilizing the aircraft.Wall Street JournalDemocrats DebateLast night saw the first big debate between Democratic candidates—mostly the lesser-known ones, apart from Elizabeth Warren, Cory Booker and Beto O’Rourke. (The spreads were chosen at random.) Warren, the highest-polling candidate of the group by far, held her own well. And if there was a topic to divide the group, it was Medicare for All.FortuneHuawei RevelationThe case for seeing Huawei as being tied to the Chinese state has been boosted by aBloombergreport that notes at least 10 research collaborations between the telecom giant’s employees and the Chinese military—these are just the publicly disclosed examples, which came to light via published periodicals and research databases. However, Huawei claims it did not sanction the projects.BloombergTesla BatteriesTesla is reportedly working on its own battery-cell production capacity, so it doesn’t have to rely on Panasonic so much. According to CNBC, the move could allow Tesla to provide “cheaper, higher-performance electric vehicles than it does today, without having to pay or share data and resources with outside vendors or partners.”CNBC
2. Around the Water CoolerFacebook FakesFacebook CEO Mark Zuckerberg has admitted the company took too long to flag and remove a doctored video of House Speaker Nancy Pelosi, which was edited and slowed down in parts to make her appear incoherent. Zuck: “One of the issues in the example of the Pelosi video… which was an execution mistake on our side, was it took a while for our systems to flag that and for fact-checkers to rate it as false.”BBCTrumplomacy LatestPresident Trump, who is about to attend the G20 summit in Japan, has lashed out at Japan over what he said was an unequal military alliance. “If Japan is attacked, we will fight World War Three…with our lives and with our treasure…If we’re attacked, Japan doesn’t have to help us at all,” he said, suggesting that Japan would watch such an attack “on the Sony television.”CNNBrazil CocaineMeanwhile, a member of Brazilian President Jair Bolsonaro’s advance guard for his trip to the G20 summit may have been carrying 85lb of cocaine, Spanish police alleged after finding the stash and arresting the crew member during a stopover. Full marks to theFinancial Timesfor its awesome headline, “Cocaine in Spain puts Bolsonaro under strain.”FTSplinternet FearsBooking.com’s new CEO, Glenn Fogel, writes forFortunethat it’s still possible to avoid the Internet splintering, in particular between China and the U.S. “As business and technology leaders, it is our responsibility to resist the prevailing narrative,” he writes. “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.”FortuneThis edition of CEO Daily was edited by David Meyer. Findprevious editions here, andsign up for other Fortune newsletters here. |
Can You Imagine How Chuffed Cantargia's (STO:CANTA) Shareholders Feel About Its 112% Share Price Gain?
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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But if you buy shares in a really great company, you canmorethan double your money. To wit, theCantargia AB (publ)(STO:CANTA) share price has flown 112% in the last three years. Most would be happy with that. In the last week the share price is up 1.1%.
Check out our latest analysis for Cantargia
Cantargia hasn't yet reported any revenue yet, so it's as much a business idea as an actual business. So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). For example, they may be hoping that Cantargia comes up with a great new product, before it runs out of money.
We think companies that have neither significant revenues nor profits are pretty high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some Cantargia investors have already had a taste of the sweet taste stocks like this can leave in the mouth, as they gain popularity and attract speculative capital.
Cantargia had cash in excess of all liabilities of kr224m when it last reported (March 2019). That's not too bad but management may have to think about raising capital or taking on debt, unless the company is close to breaking even. Given the share price has increased by a solid 29% per year, over 3 years, its fair to say investors remain excited about the future, despite the potential need for cash. You can click on the image below to see (in greater detail) how Cantargia's cash levels have changed over time. You can see in the image below, how Cantargia's cash levels have changed over time (click to see the values).
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. However you can take a look at whether insiders have been buying up shares. It's usually a positive if they have, as it may indicate they see value in the stock. Luckily we are in a position to provide you with thisfreechart of insider buying (and selling).
Investors should note that there's a difference between Cantargia's total shareholder return (TSR) and its share price change, which we've covered above. 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. We note that Cantargia's TSR, at 125% is higher than its share price return of 112%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.
We're pleased to report that Cantargia rewarded shareholders with a total shareholder return of 20% over the last year. That falls short of the 31% it has made, for shareholders, each year, over three years. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
We will like Cantargia better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SE exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Is Now An Opportune Moment To Examine Charles Taylor plc (LON:CTR)?
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Charles Taylor plc (LON:CTR), which is in the insurance business, and is based in United Kingdom, saw a decent share price growth in the teens level on the LSE over the last few months. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine Charles Taylor’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for Charles Taylor
According to my valuation model, Charles Taylor seems to be fairly priced at around 14.43% above my intrinsic value, which means if you buy Charles Taylor today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth £1.94, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Charles Taylor has a low beta, which suggests its share price is less volatile than the wider market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With revenues expected to grow by a double-digit 17% over the next couple of years, the outlook is positive for Charles Taylor. If the level of expenses is able to be maintained, 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?CTR’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor?If you’ve been keeping an eye on CTR, now may not be the most optimal 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 Charles Taylor. You can find everything you need to know about Charles Taylor inthe latest infographic research report. If you are no longer interested in Charles Taylor, 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. |
The FIDO Alliance wants to bring password-less security to IoT devices
The FIDO Alliance's mission is to reduce our relianceon passwords, so it doesn't come as a surprise that it's working to remove password use from internet of things devices. In fact, it's hoping to strengthen IoT security altogether and has formed two groups toestablishindustry standards for IoT devices before they become much, much more commonplace. At the moment, a lot of smart products come with default passwords and have poor security in place, which could make them vulnerable to cyberattacks. We doubt anybody would want to worry about their toaster or their fridge getting hacked all the time.
The first group FIDO formed, called Identity Verification and Binding Working Group, will define criteria for remote ID verification and develop a certification program for manufacturers. FIDO previously determined that asking for biometric details and government-issued IDs when onboarding new accounts or recovering old ones "greatly improve the quality of identity assurance." It's possible that the ID verification criteria the group comes up with will require one or both of those.
The second group is called IoT Technical Working Group, and it's tasked with developing a comprehensive (and password-less, of course) authentication standard for IoT devices. Itincludesexperts from Intel, Arm, Microsoft, Google and Amazon, and it's still recruiting more members from the industry. Seeing as 1 trillion devices are expected to be deployed by 2035, the standards will help ensure people's safety and privacy in the future. |
What Kind Of Shareholders Own Cantargia AB (publ) (STO:CANTA)?
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The big shareholder groups in Cantargia AB (publ) (STO:CANTA) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.
With a market capitalization of kr1.3b, Cantargia is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about CANTA.
View our latest analysis for Cantargia
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 40% of Cantargia. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Cantargia's historic earnings and revenue, below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Cantargia. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would probably be interested to learn that insiders own shares in Cantargia AB (publ). In their own names, insiders own kr21m worth of stock in the kr1.3b company. This shows at least some alignment, but I usually like to see larger insider holdings. You canclick here to see if those insiders have been buying or selling.
The general public holds a 39% stake in CANTA. 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.
With a stake of 14%, private equity firms could influence the CANTA 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 seems that Private Companies own 6.3%, of the CANTA stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its 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. |
Larry Nassar's Victims Talk About the Settlement Process: Broadsheet
Good morning, Broadsheet readers! Democratic presidential contenders have their first debate, a House committee votes to subpoena Kellyanne Conway, and we learn about what happens to victims of sexual abuse after the settlements have been levied.
A note from Kristen: A huge thank you to the many readers who wrote in to let me know that in yesterday’s essay, rather than “preferred pronouns” I should simply have said “pronouns.” As one of you put it: “Using the word ‘preferred’ can unintentionally imply that usage is optional, or that the choice is superficial… rather than an essential expression/recognition of identity.” These are the moments when I’m especially thankful to have such a thoughtful group of subscribers! I’ll follow up with more of your responses when I’m back from vacation in two weeks. In the meantime, I leave you in the capable hands of Claire and Emma. Have a glorious Thursday.
1. EVERYONE’S TALKING•What’s a girl’s life worth?For those of us who followed the heartbreaking and infuriating case of disgraced former USA Gymnastics and Michigan State University doctor Larry Nassar, his conviction and MSU’s agreement to pay a $500 million settlement to victims may have felt like the end of the story. But to the survivors of Nassar’s abuse who were entitled to a portion of that settlement, it was more like the beginning of a new and uniquely painful chapter.For a newFortunestory published this morning, writer Mary Pilon spent 18 months talking to dozens of Nassar survivors about their experiences with the settlement. As Mary describes it, in a process that “involves an awkward combination of apologetic recognition, dispassionate mathematics, and, often, a torturous recounting of abuse, hundreds of women are learning what their suffering was ‘worth’ in dollar terms.”Despite the impossibility of attaching a dollar value to the trauma these women have experienced—and of ranking their pain against that of their fellow survivors—the money has a very real purpose: it can provide for therapy and other medical bills, make up for lost wages, serve as an acknowledgement of suffering, and penalize those who allowed the crimes to occur.Mary’s story takes us inside this secretive process—and shines a light on the ways in which it remains deeply imperfect and ripe for reform. That’s a process the Nassar survivors have already begun—in part simply by talking about it. Unlike many women in abuse cases, they have not been forced to sign NDAs.Kenneth Feinberg, who’s worked on dispensing settlements to 9/11 victims, among others, tells Mary that the default to mandatory silence agreements is a mistake:undefinedI hope you’ll take the time to read Mary’s story in full:FortuneKristen Bellstrom@kayelbeekristen.bellstrom@fortune.com
2. ALSO IN THE HEADLINES•Debate debrief.Given Sen. Elizabeth Warren’s momentum in the race for Democrats’ 2020 bid, she faced high expectations in the Dems’ first debate last night,and she largely met them. Meanwhile, Sen. Amy Klobucharlanded a bit of a zingerwhen she reminded Gov. Jay Inslee of Washington, who’d touted his pro-choice cred, that “there’s three women up here that have fought pretty hard for a woman’s right to choose.” Thesecond slate of Democratic 2020 hopefuls debate tonight.•Keeping after Conway.The House Oversight and Reform Committee’s House panel has voted to subpoena Kellyanne Conway for her testimony after she failed to show up at hearing where, according to the NYT, “a special counsel told the committee she should be fired from the White House for her ‘egregious, repeated, and very public violations’ of federal ethics law.”New York Times•Instigating an investigation?Republican Sens. Joni Ernst of Iowa and Mitt Romney of Utah have broken with the bulk of their GOP colleagues to say that E. Jean Carroll’s rape allegation against President Trump should be investigated.CNN•No, Megan won’t go.Speaking of the president…he used Twitter yesterday to criticize Team USA co-captain Megan Rapinoe, who previously said that she’s “not going to the f—ing White House” if her soccer team wins the World Cup. Rapinoe, a longtime Trump critic, was one of the few white players to join Colin Kaepernick in 2016 when he and others protested racism and police violence by taking a knee during the national anthem at games.FortuneMOVERS AND SHAKERS:Gillian Tans,No. 11 on Fortune’s MPW International list, has moved from CEO of Booking.com to chairin a management shake-up.
3. IN CASE YOU MISSED IT•Soccer is hot.In other World Cup updates, the heat is—literally—on in France, where temperatures may climb above 104F this week. Here’s an update on today’s match schedule—and how FIFA plans to cope with the heatwave:Fortune•The new face of criminal justice reform.Vox argues that progressive prosecutor Tiffany Cabán, who seems poised to win in the NYC Democratic primary in the Queens district attorney race, is more than a local story. Why? Well, Queens has more people than 15 states and D.C. combined—and the fact that her election would signal a step forward on criminal justice reform, given the amount of power wielded by DAs and other prosecutors.Vox•Kome on, Kim.Kim Kardashian West stirred up major drama in Japan by naming her new line of shapewear Kimono, prompting some to accuse her of disrespecting the traditional outfit. Klueless kultural appropriation—or kanny marketing move?The GuardianShare today’s Broadsheetwith a friend.Looking for previous Broadsheets?Click here.
4. ON MY RADAR‘You don’t own me,’ a feminist anthem with civil rights roots, is all about empathyNPR12 books by (and about) lesbians and bisexual women to read this Pride MonthBuzzfeedHow men and women spend their timeThe AtlanticWhy this protest tampon book is flying off shelvesVogue UK
5. QUOTEI’m just like how is this possible that something I wrote when I was 19, I can still stand behind it now?Alanis Morissette, now 45, on the enduring power of her breakout album, 'Jagged Little Pill' |
Can We See Significant Institutional Ownership On The Cantargia AB (publ) (STO:CANTA) Share Register?
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A look at the shareholders of Cantargia AB (publ) (STO:CANTA) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.
With a market capitalization of kr1.3b, Cantargia is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about CANTA.
View our latest analysis for Cantargia
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.
Cantargia already has institutions on the share registry. Indeed, they own 40% 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. 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 Cantargia, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Cantargia. There is some analyst coverage of the stock, but it could still become more well known, with time.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own some shares in Cantargia AB (publ). As individuals, the insiders collectively own kr21m worth of the kr1.3b company. This shows at least some alignment, but I usually like to see larger insider holdings. You canclick here to see if those insiders have been buying or selling.
The general public holds a 39% stake in CANTA. 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.
With an ownership of 14%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Our data indicates that Private Companies hold 6.3%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
It's always worth thinking about the different groups who own shares in a company. But to understand Cantargia better, we need to consider many other factors.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Should We Expect From De La Rue plc's (LON:DLAR) Earnings In The Next 12 Months?
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As De La Rue plc (LON:DLAR) released its earnings announcement on 30 March 2019, analysts seem cautiously optimistic, as a 32% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 11%. By 2020, we can expect De La Rue’s bottom line to reach UK£26m, a jump from the current trailing-twelve-month of UK£19m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for De La Rue in the longer term. For those keen to understand more about other aspects of the company, you canresearch its fundamentals here.
See our latest analysis for De La Rue
Longer term expectations from the 3 analysts covering DLAR’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of UK£19m and the final forecast of UK£36m by 2022, the annual rate of growth for DLAR’s earnings is 19%. This leads to an EPS of £0.35 in the final year of projections relative to the current EPS of £0.19. Margins are currently sitting at 3.4%, which is expected to expand to 8.6% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For De La Rue, I've compiled three relevant factors you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is De La Rue 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 De La Rue is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of De La Rue? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Before You Buy Simbhaoli Sugars Limited (NSE:SIMBHALS), Consider Its Volatility
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Anyone researching Simbhaoli Sugars Limited (NSE:SIMBHALS) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks 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 Simbhaoli Sugars
As it happens, Simbhaoli Sugars has a five year beta of 1.02. This is fairly close to 1, so the stock has historically shown a somewhat similar level of volatility as the market. While history does not always repeat, this may indicate that the stock price will continue to be exposed to market risk, albeit not overly so. 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 Simbhaoli Sugars fares in that regard, below.
Simbhaoli Sugars is a rather small company. It has a market capitalisation of ₹297m, which means it is probably under the radar of most investors. It doesn't take much money to really move the share price of a company as small as this one. That makes it somewhat unusual that it has a beta value so close to the overall market.
It is probable that there is a link between the share price of Simbhaoli Sugars and the broader market, since it has a beta value quite close to one. However, long term investors are generally well served by looking past market volatility and focussing on the underlying development of the business. If that's your game, metrics such as revenue, earnings and cash flow will be more useful. In order to fully understand whether SIMBHALS is a good investment for you, we also need to consider important company-specific fundamentals such as Simbhaoli Sugars’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are SIMBHALS’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.
2. Past Track Record: Has SIMBHALS 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 SIMBHALS's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Oil Prices Slide Ahead of G20, OPEC Meetings
Investing.com - Oil prices slid on Thursday, erasing some of Wednesday’s surge, ahead of a series of key meetings on the sidelines of this week’s G20 summit and a wider gathering of major oil producers beginning next Monday.
New York-traded West Texas Intermediate crude futures slumped 69 cents, or 1.2%, to $58.69 a barrel by 7:51 AM ET (11:51 GMT), while Brent, the benchmark for oil prices outside the U.S., traded down 75 cents, or 1.1%, to $64.94. Thursday's pullback followed a 2% surge after weekly government data showedU.S. crude inventoriesfell by the largest amount since 2016.
TheG20gathering - and more specifically, the bilateral meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping - is likely to provide more clarity about the path of global oil demand in the second half of the year, depending on how much or little progress the two sides make resolving their trade dispute. A White House spokesman told reporters Trump will meet Xi at 11:30 AM (2:30 GMT) local time in Osaka on Saturday, according to Reuters. That's 10:30 PM ET on Friday.
The South China Morning Post reported Thursday that Washington and Beijing have“tentatively agreed” on a trucethat would put a hold on Trump’s pending round of additional tariffs on Chinese goods.
The Wall Street Journal later reported that Xi was planning to present Trump with proposed terms of a settlement designed to put an end to their trade conflict. The WSJ noted however that Beijing was including a list of conditions and it was not clear they would be acceptable to the American president.
“The best we can probably hope for is a commitment for further negotiations in the coming months and positive statements about removing current tariffs or, at least, holding off on additional tariffs,” saidEllen Wald, president of Transversal Consulting and Investing.com contributor.
“Of course, if China and the U.S. reach an agreement on trade at any point during the rest of 2019, we can expect oil prices to increase, as this will be seen as a positive sign for the global economy and oil demand,” she explained.
Another key meeting on the sidelines of the G20 will take place between Russian President Vladimir Putin and Saudi Crown Prince Mohammed Bin Salman. They will likely discuss whether and how to extend the current production cut agreement between OPEC and other producers, of which Russia is by far the largest.
OPEC and its partners are due to review that deal on July 1-2.
“Russia seems eager to roll over the current deal now,” Wald said, although she warned that once Moscow’ will look for any way to increase output once it overcomes current problems with contaminated oil in its export pipelines.
Elsewhere, Iraqi energy minister Thamir Ghadhban told Argus Media that he expects the current deal to be rolled over, but hinted at a push for deeper cuts in output, saying that the current deal "has not been very effective." Iraq, OPEC's second-largest producer, has been itself partly to blame for that, since it has only made 30% of the cuts it agreed to in December, according to Argus.
In other energy trading, gasoline futures slid 1.8% at $1.8955 a gallon by 7:55 AM ET (11:55 GMT), while heating oil fell 1.1% at $1.9573 a gallon.
Lastly, natural gas futures advanced 0.2% at $2.272 per million British thermal unit.
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Oil Prices Slide Amid Uncertainty Before G20, OPEC Meeting |
Winklevoss Twins Fortune Doubles in 2019 Reclaiming ‘Bitcoin Billionaire’ Status
Tyler and Cameron Winklevoss, bitcoin (BTC) bulls and founders of theGeminicryptoexchange, have seen their fortune more than double to hit a combined $1.45 billion following the fresh crypto market surge. Bloombergreportedthe news on June 27.
As early investors in bitcoin, the twins' wealth now stands at its highest since March 2018 and has soared 120% from $654 million as of January this year, Bloomberg claims. The current bitcoin bull-run has restored the twins to ‘bitcoin billionaires’ once again.
As Bitcoin’s price ascent continues apace — surpassing the$13,000price mark in a matter of hours during yesterday, notwithstandingsubsequent falterings— commentators have been drawing parallels with the BTC’s historic bull run of winter 2017.
In an email to Bloomberg, Qiao Wang — director of product at crypto data startupMessari— claimed that:
“...confidence is certainly returning. The difference between now and the last time Bitcoin reached $13,000 is that the market is currently far more rational."
Wang further proposed that the cryptocurrency’s strong performance is in part driven by macroeconomic and geopolitical developments, citing the devaluation of the Chinese yuan and the United States Federal Reserve’s anticipated pursuit of an expansionary monetary policy agenda as two cases in point. He noted:
“Bitcoin is digital gold and a hedge against inflationary economic crises. If investors believe in this thesis, they should slowly accumulate Bitcoin and hold it for years to come. They should not go all-in or trade frequently.”
As reported, the Gemini founders are now the subject of afresh biographydubbed “Bitcoin Billionaires: A True Story of Genius, Betrayal, and Redemption” — an allusion to their notorious and drawn-out settlement with Facebook founder Mark Zuckerberg over their part in the social media behemoth’s inception.
Perhaps ironically, the trio’s paths are now set tointersectyet again, as Facebookunveiledits own, astrology-themed crypto venture, “Libra,” just weeks after the biography’s publication.
• Mike Novogratz: Bitcoin Will Stabilize Between $10,000 and $14,000
• Winklevoss’ Gemini Exchange Launches Chicago Office to Serve as Engineering Hub
• No, It’s Not Facebook: Bitcoin Price Already Up 200% in 2019 Before Libra
• Google Searches for ‘Bitcoin’ Starting to Catch Up With $10K Euphoria |
Bayer lifted by new plan to tackle glyphosate lawsuits, Elliott approval
By Tassilo Hummel and Ludwig Burger BERLIN (Reuters) - Bayer <BAYGn.DE> shares jumped on Thursday after it revealed plans aimed at resolving multi-billion dollar lawsuits linked to glyphosate, a move welcomed by activist shareholder Elliott, which has taken a sizeable stake in the chemicals company. Shares in the German group, which have lost more than a fifth of their value since March, rose 8.7% to 60.86 euros, for their biggest daily gain in a decade. The company's market capitalization rose by 4.8 billion euro on the day. Bayer said on Wednesday it had hired an external lawyer to advise its supervisory board and has set up a committee to help to resolve the glyphosate litigation issue. Marks Manns, a fund manager at Union Investment, one of Bayer's largest German shareholders, said the share price was likely bolstered by anticipation of an earlier settlement. "Investors want more certainty as quickly as possible. But it is for management to weigh up a quick settlement against how many billions you could save by holding out. I don't want a settlement at all costs," he said, adding that Bayer's negotiation position was for now highly unfavorable. The company's shares have been under pressure following its $63 billion acquisition of Monsanto, which brought with it massive legal issues after more than 13,400 plaintiffs alleged the company's glyphosate weedkiller caused cancer - a claim Bayer contests. Deka Investment, another major German shareholder said taking more legal expertise on board was "the right step", and was mainly a token of acknowledgement by the supervisory board of shareholder criticism. Elliott Associates on Wednesday welcomed Bayer's steps, as it revealed for the first time its holding in Bayer shares worth 1.1 billion euros ($1.25 billion). In a statement, Elliott also said Bayer's recent moves helped to resolve uncertainty linked to the glyphosate issue and lead to settlements with limited financial costs. Story continues "Elliott believes that Bayer's discounted share price today does not reflect the significant underlying value of its constituent businesses, or the potential value realization opportunity that is in excess of 30 billion euros," it said. Major shareholders have criticized Bayer for its handling of the glyphosate issue which resulted in a vote of disapproval of its top management at April's annual general meeting. Janus Henderson, one of the company's top shareholders, welcomed the measures taken by Bayer as "sensible" and said they may lead to an earlier-than-expected settlement. "It is unlikely to be a smooth ride from here" though as the company remains embroiled in lengthy litigation, said Dean Cheeseman, portfolio manager of its UK-based Multi-Asset Team. Janus Henderson expects Bayer will lose its next glyphosate trial, which is scheduled for August in Missouri, the first one outside of California. But the appeal processes starting later in the year "represents their best chance to change momentum in sentiment," he said. (Additional reporting by Hakan Ersen, Patricia Weiss and Josephine Mason; Editing by Michelle Martin, Alexander Smith and Elaine Hardcastle) |
How to buy EOS cryptocurrency
It’s been a little over a year since EOS shook the crypto market with its $4 billion ICO , and today, people are still learning how to buy EOS cryptocurrency. Despite its critics, the platform is still popular among many cryptocurrency adopters. Buying EOS tokens and storing them is similar to most other digital coins. Once you have a wallet and an account on a crypto exchange, you’re pretty much good to go – although not all exchanges list it. Here’s how to buy EOS cryptocurrency instantly and which exchanges are best for trading it. What is EOS? EOS claims to be “the most powerful infrastructure” for dApps. The network is similar to Ethereum in that it allows other blockchain-based projects to develop on it. The main difference lies in the fact that EOS implements a more centralised model to gain scalability. The network also uses the delegated Proof-of-Stake consensus protocol to increase efficiency and process more transactions. EOS is mostly a “do it yourself” platform meant to support both public and private blockchain networks. It also describes itself as highly-customisable and able to meet industry-specific requirements. EOS can process almost 80 times more transactions per second than Ethereum. Moreover, on the EOS blockchain, blocks are forged 13 times faster. It seems to have all the main characteristics that developers are looking for when it comes to blockchains: scalability, flexibility, and speed. However, the centralisation factor remains a turn-off for many. The EOS ecosystem is founded on two key elements: EOS.io, which is the actual network on which blockchain-based apps are stored – a sort of “operating system” that manages and controls the network. The EOS token, which is the cryptocurrency that powers the EOS blockchain. Any developer who owns EOS can use the EOS platform to build and run decentralised applications on the blockchain. Alternatively, token holders can rent their bandwidth to other users. Story continues How to buy EOS cryptocurrency To purchase EOS cryptocurrency, you need a wallet and an account on a cryptocurrency exchange. EOS wallets Before you start reading about EOS wallets, you need to create an account to be able to buy and trade EOS tokens. The account consists of 12 characters stored on the blockchain. These characters make a human-readable name you should use for your transactions. Most of the time, account creation on EOS.io isn’t free. However, the investment pays off, as the network provides zero-fee transactions for money transfers. Another difference between EOS wallets and other similar devices is that you have to deal with two keys: an active key and an owner key. Never give your owner (private) key to anyone. Otherwise, you risk losing your funds. Here are the most popular EOS wallets available today: SimplEOS – created by EOSRIO, this is an open source desktop wallet designed to meet the specific requirements of the EOS ecosystem. Lumi Wallet – this is a mobile crypto wallet and exchange where you can store EOS, Ethereum, Bitcoin, and ERC-20 tokens, among other digital assets. Freewallet – another cryptocurrency wallet that’s useful when you’re learning how to buy EOS cryptocurrency and store it safely. Exodus – this provides desktop, mobile, and hardware solutions for you to store your EOS cryptocurrency. Cryptocurrency exchanges to buy EOS tokens Some of the most popular cryptocurrency exchanges that list EOS coins are Coinbase, Binance, and Kraken. All three allow you to buy EOS cryptocurrency through wire transfer and credit card. Also, on these exchanges, you can purchase digital coins with USD or euros. If you’re willing to speculate on the price, you can also use eToro to buy EOS cryptocurrency. Want to buy EOS cryptocurrency with PayPal or cash? Unfortunately, there’s no direct way of doing this. You need to buy Bitcoin first and then trade it with EOS. This process can be more expensive due to the multiple conversions required. Is EOS better than Ethereum? Ethereum is still the top choice for most tech giants that are investing in blockchain projects. EOS tokens were initially ERC-20 tokens, which means that they were built on top of the Ethereum blockchain. But while Ethereum is a well-established player in the market, it’s still struggling to provide the speed and scalability necessary for running major applications. EOS’s ability to process transactions and forge blocks makes it more apt at handling applications designed for hundreds of thousands of users. For now, EOS has performed well enough to make the debate of EOS vs Ethereum interesting. However, it’s hard to tell if EOS is better than Ethereum. Ethereum still has the largest ecosystem of cryptocurrency projects in the world of blockchain. That’s a performance that’s hard to ignore when choosing a platform for developing new dApps. The post How to buy EOS cryptocurrency appeared first on Coin Rivet . |
How to get money on vacation without getting ripped off
Three asian women stand at a currency exchange Planning a trip takes quite a lot of administrative grunt work. Once you’ve jumped through the hurdles of booking flights, getting a visa, choosing accommodation, and getting yourself to the airport on time with the correct amount of luggage, it’s easy to forget: You also are going to need some money when you get there.… Sign up for the Quartz Daily Brief , our free daily newsletter with the world’s most important and interesting news. More stories from Quartz: Tip your delivery worker in cash, not via an app A “Go Back to Africa” media campaign uses AI to boost African American tourism |
Does Silly Monks Entertainment Limited (NSE:SILLYMONKS) Have A Good P/E Ratio?
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll show how you can use Silly Monks Entertainment Limited's (NSE:SILLYMONKS) P/E ratio to inform your assessment of the investment opportunity.Silly Monks Entertainment has a P/E ratio of 37.63, based on the last twelve months. That means that at current prices, buyers pay ₹37.63 for every ₹1 in trailing yearly profits.
View our latest analysis for Silly Monks Entertainment
Theformula for P/Eis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Silly Monks Entertainment:
P/E of 37.63 = ₹57.2 ÷ ₹1.52 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E.
P/E ratios primarily reflect market expectations around earnings growth rates. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
Silly Monks Entertainment saw earnings per share decrease by 69% last year. But EPS is up 9.1% over the last 3 years.
The P/E ratio indicates whether the market has higher or lower expectations of a company. The image below shows that Silly Monks Entertainment has a lower P/E than the average (41.6) P/E for companies in the entertainment industry.
Its relatively low P/E ratio indicates that Silly Monks Entertainment shareholders think it will struggle to do as well as other companies in its industry classification. Since the market seems unimpressed with Silly Monks Entertainment, it's quite possible it could surprise on the upside. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued.
Don't forget that the P/E ratio considers market capitalization. In other words, it does not consider any debt or cash that the company may have on the balance sheet. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context.
Silly Monks Entertainment has net cash of ₹15m. That should lead to a higher P/E than if it did have debt, because its strong balance sheets gives it more options.
Silly Monks Entertainment trades on a P/E ratio of 37.6, which is above the IN market average of 15.4. Falling earnings per share is probably keeping traditional value investors away, but the net cash position means the company has time to improve: and the high P/E suggests the market thinks it will.
Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' Although we don't have analyst forecasts, you could get a better understanding of its growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
But note:Silly Monks Entertainment 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. |
Here's What Silly Monks Entertainment Limited's (NSE:SILLYMONKS) P/E Ratio Is Telling Us
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The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Silly Monks Entertainment Limited's (NSE:SILLYMONKS), to help you decide if the stock is worth further research. Based on the last twelve months,Silly Monks Entertainment's P/E ratio is 37.63. That corresponds to an earnings yield of approximately 2.7%.
Check out our latest analysis for Silly Monks Entertainment
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Silly Monks Entertainment:
P/E of 37.63 = ₹57.2 ÷ ₹1.52 (Based on the year to March 2019.)
A higher P/E ratio means that buyers have to paya higher pricefor each ₹1 the company has earned over the last year. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. And as that P/E ratio drops, the company will look cheap, unless its share price increases.
Silly Monks Entertainment's earnings per share fell by 69% in the last twelve months. But over the longer term (3 years), earnings per share have increased by 9.1%.
The P/E ratio indicates whether the market has higher or lower expectations of a company. If you look at the image below, you can see Silly Monks Entertainment has a lower P/E than the average (41.6) in the entertainment industry classification.
Silly Monks Entertainment's P/E tells us that market participants think it will not fare as well as its peers in the same industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling.
It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. Thus, the metric does not reflect cash or debt held by the company. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.
Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context.
The extra options and safety that comes with Silly Monks Entertainment's ₹15m net cash position means that it deserves a higher P/E than it would if it had a lot of net debt.
Silly Monks Entertainment has a P/E of 37.6. That's higher than the average in the IN market, which is 15.4. The recent drop in earnings per share might keep value investors away, but the healthy balance sheet means the company retains potential for future growth. If fails to eventuate, the current high P/E could prove to be temporary, as the share price falls.
Investors have an opportunity when market expectations about a stock are wrong. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. We don't have analyst forecasts, but you could get a better understanding of its growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Macron says he warned Iran's Rouhani about breaking nuclear commitments
TOKYO, June 27 (Reuters) - French President Emmanuel Macron told his Iranian counterpart Hassan Rouhani that leaving the 2015 nuclear deal, or any signals that suggested Tehran would break the accord, would be a mistake.
"I had a conversation with President Rouhani a couple of days ago and I indicated that any exit from the accord would be an error and any signals in that direction would be an error," Macron told reporters. (Reporting by Christopher Gallagher; Writing by John Irish; Editing by Sudip Kar-Gupta) |
Read This Before You Buy Sirca Paints India Limited (NSE:SIRCA) Because Of Its P/E Ratio
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Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at Sirca Paints India Limited's (NSE:SIRCA) P/E ratio and reflect on what it tells us about the company's share price.Sirca Paints India has a price to earnings ratio of 19.22, based on the last twelve months. That corresponds to an earnings yield of approximately 5.2%.
See our latest analysis for Sirca Paints India
Theformula for price to earningsis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for Sirca Paints India:
P/E of 19.22 = ₹300 ÷ ₹15.61 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future.
P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. And as that P/E ratio drops, the company will look cheap, unless its share price increases.
Notably, Sirca Paints India grew EPS by a whopping 40% in the last year. And earnings per share have improved by 41% annually, over the last five years. With that performance, I would expect it to have an above average P/E ratio.
The P/E ratio indicates whether the market has higher or lower expectations of a company. The image below shows that Sirca Paints India has a lower P/E than the average (76.7) P/E for companies in the retail distributors industry.
Sirca Paints India's P/E tells us that market participants think it will not fare as well as its peers in the same industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. In other words, it does not consider any debt or cash that the company may have on the balance sheet. In theory, a company can lower its future P/E ratio by using cash or debt to invest in 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).
Since Sirca Paints India holds net cash of ₹96m, it can spend on growth, justifying a higher P/E ratio than otherwise.
Sirca Paints India trades on a P/E ratio of 19.2, which is above the IN market average of 15.4. Its net cash position is the cherry on top of its superb EPS growth. To us, this is the sort of company that we would expect to carry an above average price tag (relative to earnings).
Investors have an opportunity when market expectations about a stock are wrong. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. We don't have analyst forecasts, but you could get a better understanding of its growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
But note:Sirca Paints India 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. |
Singapore to invest $30 million in 5G tests ahead of 2020 rollout
SINGAPORE (Reuters) - Singapore on Thursday launched a S$40 million ($29.5 million) initiative to test applications for 5G networks, the next generation of mobile communications, ahead of a planned rollout next year.
The project, unveiled by minister for communications and information S Iswaran, will test the network in areas such as port management, manufacturing and consumer applications as the city-state looks to be "a global front-runner in impactful 5G use cases".
Singapore will pick a telecoms company to be the first to mass-market 5G networks by the end of the first quarter of next year, the first step in a broader rollout, Iswaran told journalists after the announcement.
Unlike the upgrades of cellular standards 2G in the early 1990s, 3G around the millennium and 4G in 2010, 5G standards will deliver not just faster phone and computer data but also help connect up cars, machines, cargo and crop equipment.
Chinese telecom firm Huawei Technologies is one firm vying for global deals to operate 5G networks. But the United States has asked countries to reject Huawei technology in the development of new mobile phone networks, arguing that it could be vulnerable to Chinese eavesdropping. Huawei denies its equipment is a security risk.
Singapore has not ruled out allowing telecoms companies to use Huawei technology in their new 5G systems.
($1 = 1.3549 Singapore dollars)
(Reporting by Joe Brock and Fathin Ungku; Writing by John Geddie; editing by Gopakumar Warrier) |
If You Had Bought Sika (VTX:SIKA) Stock A Year Ago, You Could Pocket A 21% Gain Today
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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, theSika AG(VTX:SIKA) share price is up 21% in the last year, clearly besting than the market return of around 8.0% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Sika for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
View our latest analysis for Sika
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Sika was able to grow EPS by 11% in the last twelve months. This EPS growth is significantly lower than the 21% increase in the share price. This indicates that the market is now more optimistic about the stock.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Sika has improved its bottom line lately, but is it going to grow revenue? Thisfreereport showing analyst revenue forecastsshould help you figure out if the EPS growth can be sustained.
Sika shareholders should be happy with thetotalgain of 23% over the last twelve months, including dividends. A substantial portion of that gain has come in the last three months, with the stock up 21% in that time. This suggests the company is continuing to win over new investors. Before forming an opinion on Sika you might want to consider these3 valuation metrics.
We will like Sika better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CH 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. |
Singapore Exchange Bitrue Hacked for Over $4 Million in Crypto
Singapore-based cryptocurrency exchange Bitrue has been hacked for around $4.2 million in user assets.
The platform announced the breach intweets, saying that the event was identified at around 1 a.m. local time Thursday. Users funds are insured and anyone who lost cryptocurrency would be refunded, according to the company.
The exchange said:
Related:Another Indian Crypto Exchange Shuts Down Blaming Banking Ban
Bitrue further detailed that 9.3 million XRP, worth $4.01 million, and 2.5 million cardano (ADA), worth $231,800, had been accessed and transferred off its platform.
As for how the breach occurred, the exchange explained:
“A hacker exploited a vulnerability in our Risk Control team’s 2nd review process to access the personal funds of about 90 Bitrue users. The hacker used what they learned from this breach to then access the Bitrue hot wallet and move 9.3 million XRP and 2.5 million ADA to different exchanges.”
Related:Six Arrested Over Cloned Crypto Exchange That Stole €24 Million
Bitrue is working with the Huobi, Bittrex and ChangeNOW exchanges and says they have frozen funds and accounts associated with the hack.
In another tweet, Bitrue said it is conducting an emergency inspection of its systems and aims to be up and running normally again “as soon as possible.”
Early this year, Bitrue said it wasalso affectedby a 51-percent attack on the ethereum classic cryptocurrency in which a hacker had tried to withdraw 13,000 ETC but claimed the attempted theft had been stopped by its system.
ADA is currently trading down nearly 6 percent at $0.092, while XRP is down nearly 9 percent at $0.43, according toCoinMarketCapdata. It’s worth noting that the wider crypto market is generally in the red at press time.
Singaporeimage via Shutterstock
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Is Siyaram Silk Mills Limited (NSE:SIYSIL) A Smart Choice For Dividend Investors?
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Is Siyaram Silk Mills Limited (NSE:SIYSIL) a good dividend stock? How can we tell? 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.
While Siyaram Silk Mills's 1.4% dividend yield is not the highest, we think its lengthy payment history is quite interesting. Some simple research can reduce the risk of buying Siyaram Silk Mills for its dividend - read on to learn more.
Explore this interactive chart for our latest analysis on Siyaram Silk Mills!
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 21% of Siyaram Silk Mills's profits were paid out as dividends in the last 12 months. We'd say its dividends are thoroughly covered by earnings.
As Siyaram Silk Mills has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA measures total debt load relative to company earnings (lower = less debt), while net interest cover measures the ability to pay interest on the debt (higher = greater ability to pay interest costs). Siyaram Silk Mills has net debt of 1.75 times its EBITDA, which we think is not too troublesome.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 3.67 times its interest expense, Siyaram Silk Mills's interest cover is starting to look a bit thin.
Remember, you can always get a snapshot of Siyaram Silk Mills'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 Siyaram Silk Mills's dividend payments. This dividend has been unstable, which we define as having fallen by at least 20% one or more times over this time. During the past ten-year period, the first annual payment was ₹1.00 in 2009, compared to ₹4.40 last year. This works out to be a compound annual growth rate (CAGR) of approximately 16% a year over that time. The dividends haven't grown at precisely 16% every year, but this is a useful way to average out the historical rate of growth.
So, its dividends have grown at a rapid rate over this time, but payments have been cut in the past. The stock may still be worth considering as part of a diversified dividend portfolio.
Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Earnings have grown at around 9.0% a year for the past five years, which is better than seeing them shrink! A low payout ratio and strong historical earnings growth suggests Siyaram Silk Mills has been effectively reinvesting in its business. We think this generally bodes well for its dividend prospects.
To summarise, shareholders should always check that Siyaram Silk Mills's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. It's great to see that Siyaram Silk Mills is paying out a low percentage of its earnings and cash flow. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Siyaram Silk Mills performs highly under this analysis, although it falls slightly short of our exacting standards. At the right valuation, it could be a solid dividend prospect.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 Siyaram Silk Mills 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. |
Swiss Re's ReAssure valued at up to $4.2 billion IPO
By John Revill
ZURICH (Reuters) - UK life assurance business ReAssure will be valued at up to 3.3 billion pounds ($4.2 billion) when it floats on the London Stock Exchange, its largest shareholder Swiss Re said on Thursday.
Swiss Re, the world's second-largest reinsurance company, set a price range of 2.80 to 3.30 pounds for shares in the flotation, implying a market capitalisation of 2.8 billion to 3.3 billion pounds when the float takes place next month.
Zurich-based Swiss Re is spinning off ReAssure to put the business under a more favourable regulatory regime and give it easier access to capital to fund its expansion.
ReAssure, Britain's sixth-largest life insurer, has 68.7 billion pounds of assets under administration and focuses on so-called closed book policies that are shut to new customers.
Under the flotation plans, Swiss Re would cut its stake in ReAssure to below 50% from 75% now. Japan's MS&AD Insurance Group Holdings intends to keep its holding at 25% after the initial public offering.
DIVIDEND PLANS
The offer is expected to deliver a free float of 26% of ReAssure's issued share capital. Shares representing up to 15% of the initial offer will be made available as an over-allotment option, which if exercised will take the free float up to nearly 30%.
Swiss Re said the IPO prospectus is due to be published later on Thursday, pending approval from Britain's Financial Conduct Authority.
ReAssure is expected to pay out 1.325 billion pounds in dividends over the next five years, with a 74 percent payout ratio, according to flotation documents.
An interim dividend for 2019 will be available to all shareholders, including those shareholders coming in at IPO
The company will have an implied dividend yield of 9.5% to 8% when it floats, with unconditional trading in ReAssure stock is expected to start on July 16.
Joint global coordinators are Morgan Stanley, Credit Suisse and UBS, while BNP Paribas and HSBC are acting as joint bookrunners. ($1 = 0.7885 pounds)
(Reporting by John Revill, additional reporting by Arno Schuetze; Editing by Michael Shields/Keith Weir) |
SJVN Limited's (NSE:SJVN) Earnings Grew 12%, Did It Beat Long-Term Trend?
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Measuring SJVN Limited's (NSE:SJVN) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess SJVN's recent performance announced on 31 March 2019 and weigh these figures against its long-term trend and industry movements.
Check out our latest analysis for SJVN
SJVN's trailing twelve-month earnings (from 31 March 2019) of ₹14b has jumped 12% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 0.02%, indicating the rate at which SJVN is growing has accelerated. What's the driver of this growth? Well, let’s take a look at if it is solely attributable to an industry uplift, or if SJVN has experienced some company-specific growth.
In terms of returns from investment, SJVN has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 11% exceeds the IN Electric Utilities industry of 7.3%, indicating SJVN has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for SJVN’s debt level, has increased over the past 3 years from 9.4% to 12%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 27% to 17% over the past 5 years.
Though SJVN's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research SJVN to get a better picture of the stock by looking at:
1. Financial Health: Are SJVN’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.
2. Valuation: What is SJVN 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 SJVN 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.
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. |
Want To Invest In SJVN Limited (NSE:SJVN)? Here's How It Performed Lately
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Measuring SJVN Limited's (NSE:SJVN) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess SJVN's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.
Check out our latest analysis for SJVN
SJVN's trailing twelve-month earnings (from 31 March 2019) of ₹14b has jumped 12% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 0.02%, indicating the rate at which SJVN is growing has accelerated. What's the driver of this growth? Let's see whether it is merely owing to industry tailwinds, or if SJVN has experienced some company-specific growth.
In terms of returns from investment, SJVN has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 11% exceeds the IN Electric Utilities industry of 7.3%, indicating SJVN has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for SJVN’s debt level, has increased over the past 3 years from 9.4% to 12%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 27% to 17% over the past 5 years.
SJVN's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While SJVN has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research SJVN to get a better picture of the stock by looking at:
1. Financial Health: Are SJVN’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.
2. Valuation: What is SJVN 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 SJVN 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.
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. |
How much first-time buyers need to buy the average UK home
Liverpool's waterfront. Photo: REUTERS/Phil Noble The average first-time buyer needs a household income of £54,400 to get on the property ladder in British cities, new figures suggest. First-time buyers need to earn more now than three years ago in most UK cities, with the exception of the most expensive areaswhere buying is now marginally more affordable. The average house price in 20 UK cities is now £256,200, up 1.8% on a year ago, according to a monthly review of the UK property market by Hometrack. Fast-rising property prices in Manchester and Leicester mean first-time buyers now need to earn around 20% more than three years ago. READ MORE: Prince Harry and Meghans home renovation cost taxpayer £2.4m The highest increases in house prices have been in some of the most affordable cities, with prices up 5% in Liverpool and 4.6% in Belfast. Buyers can secure their first home of their own on a total household income of £26,000 in Liverpool and Glasgow, whereas Londoners need £84,000 a year. But the expensive cities where buyers need the highest income have seen the property market become slightly more affordable in recent years. London property is marginally more affordable for first-time buyers. Photo: Press Association READ MORE: Average pay soars in construction jobs as UK loses EU workers London, Oxford and Cambridge have seen the average income to buy fall 5% since 2016. The latest Hometrack report says house prices in UK cities have grown around 7% a year for the past 23 years, far outstripping growth incomes. Separate figures released today by Lloyds Bank also show the number of homes worth £1m or more has reached a record high. More than 14,600 homes worth at least £1m were sold in 2018, up 1% on the previous year despite a slowdown in the property market particularly in London and the south-east. |
What SJVN Limited's (NSE:SJVN) ROE Can Tell Us
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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). To keep the lesson grounded in practicality, we'll use ROE to better understand SJVN Limited (NSE:SJVN).
Our data showsSJVN has a return on equity of 12%for the last year. That means that for every ₹1 worth of shareholders' equity, it generated ₹0.12 in profit.
See our latest analysis for SJVN
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for SJVN:
12% = ₹14b ÷ ₹112b (Based on the trailing twelve months to March 2019.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.
ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies.
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. If you look at the image below, you can see SJVN has a similar ROE to the average in the Electric Utilities industry classification (12%).
That isn't amazing, but it is respectable. ROE tells us about the quality of the business, but it does not give us much of an idea if the share price is cheap. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
While SJVN does have some debt, with debt to equity of just 0.17, we wouldn't say debt is excessive. Although the ROE isn't overly impressive, the debt load is modest, suggesting the business has potential. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.
Return on equity is one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to take a peek at thisdata-rich interactive graph of forecasts for the company.
But note:SJVN 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. |
Johnson takes aim at rival over fake Brexit deadline comments in PM race
LONDON (Reuters) - Boris Johnson, the favourite to become Britain's next prime minister, took aim at his rival Jeremy Hunt, saying the governing Conservative Party would suffer if a new leader treated the Oct. 31 Brexit deadline as a "fake" target. Johnson has made a "do or die" pledge to take Britain out of the European Union on Oct. 31, saying the government must speed up preparations for leaving without a deal to put pressure on Brussels to offer up a new Brexit agreement. "If we fail again, if we kick the can down the road on 31st October, if we continue to delay, if we treat this as a fake deadline, just yet another rigmarole, then I think the voters will be very frustrated indeed," he told the Conservative Home website in an interview published on Thursday. "And I think that our party, the Conservative Party, which I fought for a very long time across this country, I think that we will not easily recover." (Reporting by Elizabeth Piper; editing by Costas Pitas) |
European Investors Cautiously Optimistic; BoE’s Carney Says He’ll Cut Rates if “No-Deal” Brexit
European shares are edging higher on Thursday as investors assessed mixed messages from the Trump administration ahead of the meeting between U.S. President Trump and Chinese President Xi Jinping on Saturday at the G-20 summit in Osaka, Japan. Investors were also digesting comments on Brexit from Boris Johnson, the favorite to succeed U.K. Prime Minister Theresa May, and Bank of England Governor Mark Carney.
Additionally, investors face a slew of economic reports early Thursday on Spanish consumer inflation, Italian business and consumer confidence figures, and German Preliminary CPI. Investors will also be closely watching the Italian 10-year Bond action.
At 07:53 GMT, the U.K.’s FTSE 100 is trading 7433.83, up 17.44 or +0.24%. Germany’s DAX is at 12317.82, up 72.50 or +0.59% and France’s CAC is trading 5507.61, up 6.89 or +0.13%.
According to CNBC, “the pan-European Stoxx 600 nudged 0.2% higher at the start of the morning session, basic resources and banks both jumping more than 1%, while the food and beverages sector lost 0.6% in early deals.”
In the U.K., Boris Johnson said on Wednesday that the chances of Britain leaving the European Union without a deal are “a million-to-one” despite reiterating his promise to exit the bloc with or without a deal by October 31.
This statement may have prompted BoE Governor Carney to tell the U.K. Treasury Committee that the central bank would be more likely to cut interest rates in the event of a “no-deal” Brexit.
“It’s more likely we would provide some stimulus” in the event of no-deal Brexit, he told the MPs. “We have said we would do what we could in the event of a no-deal scenario but there is no guarantee on that.”
“Market expectations of a no deal have gone up in recent months. There has been a notable increase,” Carney said.
Carney also suggested the lack of clarity over Brexit was holding firms back from investing. “There is not a business investment boom going on in the country right now. I think we all know why that is the case.”
He went on to say, “The market assessment is it’s more likely there is some sort of path to some sort of deal than not. That could change. And asset prices would change accordingly.”
The major Asian stock indexes finished higher on Thursday as investors held out hope for a trade deal between the United States and China. While most investors still feel that nothing major will come out of the meeting between Trump and Xi, optimism was raised early Wednesday after Treasury Secretary Steven Mnuchin told CNBC he thinks “there’s a path” for the U.S. and China to complete a trade deal.
Trump also said on Wednesday that a U.S.-China trade deal was possible, but noted he is “very happy with where we are now.”
The big question following the meeting on Saturday will be if or when Trump imposes an additional $300 billion in tariffs on almost everything China sells to the United States. That will be the measuring stick as to how successful the meeting was.
Thisarticlewas originally posted on FX Empire
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What Percentage Of Skue Sparebank (OB:SKUE) Shares Do Insiders Own?
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Every investor in Skue Sparebank (OB:SKUE) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
Skuerebank is not a large company by global standards. It has a market capitalization of øre277m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about SKUE.
View our latest analysis for Skuerebank
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 Skuerebank does have institutional investors; and they hold 29% 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. 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 Skuerebank's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in Skuerebank. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of Skue Sparebank. It has a market capitalization of just øre277m, and insiders have øre49m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
With a 42% ownership, the general public have some degree of sway over SKUE. 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.
We can see that Private Companies own 11%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its 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. |
China urges U.S. to lift sanctions on Huawei as Trump-Xi meeting looms
By Yawen Chen and Martin Quin Pollard
BEIJING (Reuters) - The United States should immediately remove sanctions on Chinese telecoms equipment maker Huawei, a commerce ministry spokesman said on Thursday, days before the two countries' leaders are due to meet for talks on trade.
China opposes U.S. abuse of export controls and urges the United States to return to a track of cooperation, said the spokesman, Gao Feng.
U.S. President Donald Trump said on Wednesday a trade deal with Chinese President Xi Jinping was possible this weekend when they meet at a summit of leaders of the Group of 20 (G20) in Japan, but he was prepared to impose tariffs on virtually all Chinese imports if disagreement persisted.
Trump has suggested that Huawei could be part of a deal.
The Wall Street Journal reported that Xi planned to present Trump with terms for ending the trade dispute, including removing a ban on the sale of U.S. technology to Huawei, citing Chinese officials with knowledge of the plan.
The report also said China wants the United States to lift all punitive tariffs and abandon efforts to get China to promise to buy even more U.S. goods than it previously agreed to do - a reiteration of long-standing demands.
The United States has put Huawei, the world's largest maker of telecoms equipment and its second biggest maker of smartphones, on an export blacklist, citing national security issues. The listing bars U.S. suppliers from selling to it without special approval.
Huawei has denied its products pose a security threat.
"We urge the United States to cancel immediately sanctions on Chinese companies including Huawei to push for the healthy and stable development in Sino-U.S. ties," Gao said, when asked whether the two sides were expected to reach a deal on measures facing Huawei and other Chinese tech firms.
Gao noted that Xi told Trump during a phone call last week - a gesture that rekindled hopes of a deal - that he hoped the United States could treat Chinese firms fairly.
Earlier in May, the United States accused China of reneging on pledges to reform its economy, infuriating Beijing and leading to a collapse in trade talks.
The U.S. Commerce Department announced last week it was adding several Chinese companies, and a government-owned institute involved in supercomputing with military applications, to its national security "entity list" that bars them from buying U.S. parts and components without government approval.
China would consider putting foreign firms on a list designating them "unreliable" if they adopted discriminatory measures against Chinese entities, hurt its industries and threaten its national security, Gao said.
Details of the list would be released soon, he said.
'PREVENT ESCALATION'
On May 31, the commerce ministry said it was working on an "unreliable entities list" after the United States imposed additional tariffs on $200 billion of Chinese goods and added Huawei to the U.S. export blacklist.
Trump is set to meet Xi for talks in Osaka at 11:30 a.m. (0230 GMT) on Saturday.
Asked about a news report that a truce in the trade war with the United States had been struck after Trump agreed to halt the next round of U.S. tariffs on an another $300 billion of Chinese goods, Gao said China would welcome action that helped reduce tension.
"We welcome actions that help manage differences and prevent an escalation in frictions," he said, without answering directly whether a deal was expected at the summit.
On Thursday, the South China Morning Post said the United States and China had agreed to a tentative truce in their trade dispute, citing sources.
Other media outlets have speculated about different outcomes of the meeting between the presidents
The Wall Street Journal said the chief U.S. trade negotiator, Robert Lighthizer, and his Chinese counterpart, Liu He, were expected to meet before the leaders.
China's foreign ministry spokesman Geng Shuang stressed that China would not be scared by U.S threats of more tariffs.
"The Chinese people are not afraid of pressure and never buy this kind of strategy," he told reporters.
In a commentary on Thursday, the ruling Communist Party's People's Daily said a U.S. attempt to win a "quick and easy" trade war had proven to be futile and the Chinese people must not be fearful.
"It's very clear that some people in the United States are insisting on curbing China's development using excuses of trade frictions," it said. "At this moment, fear is no use."
"If China concedes blindly under the pressure of (U.S.) hegemony, this will really be a volte-face-esque historic mistake."
(Reporting by Yawen Chen and Martin Pollard; Additional Reporting by Ben Blanchard; Writing by Ryan Woo and Yawen Chen; Editing by Clarence Fernandez, Robert Birsel) |
Did You Miss Swiss Life Holding's (VTX:SLHN) Impressive 124% Share Price Gain?
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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For example, theSwiss Life Holding AG(VTX:SLHN) share price has soared 124% in the last half decade. Most would be very happy with that. On top of that, the share price is up 11% in about a quarter.
See our latest analysis for Swiss Life Holding
There is no denying that markets are sometimes efficient, but prices do not always reflect 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 five years of share price growth, Swiss Life Holding achieved compound earnings per share (EPS) growth of 5.3% per year. This EPS growth is slower than the share price growth of 18% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
Thisfreeinteractive report on Swiss Life Holding'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Swiss Life Holding, it has a TSR of 166% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted thetotalshareholder return.
It's good to see that Swiss Life Holding has rewarded shareholders with a total shareholder return of 45% in the last twelve months. And that does include the dividend. That's better than the annualised return of 22% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before forming an opinion on Swiss Life Holding you might want to consider the cold hard cash it pays as a dividend. Thisfreechart tracks its dividend over time.
But note:Swiss Life Holding may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CH 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. |
Can You Imagine How Chuffed Swiss Life Holding's (VTX:SLHN) Shareholders Feel About Its 124% Share Price Gain?
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When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price ofSwiss Life Holding AG(VTX:SLHN) stock is up an impressive 124% over the last five years. It's also good to see the share price up 11% over the last quarter.
See our latest analysis for Swiss Life Holding
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Over half a decade, Swiss Life Holding managed to grow its earnings per share at 5.3% a year. This EPS growth is lower than the 18% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Swiss Life Holding, it has a TSR of 166% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!
We're pleased to report that Swiss Life Holding shareholders have received a total shareholder return of 45% over one year. Of course, that includes the dividend. That's better than the annualised return of 22% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before forming an opinion on Swiss Life Holding you might want to consider the cold hard cash it pays as a dividend. Thisfreechart tracks its dividend over time.
We will like Swiss Life Holding better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CH 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. |
Singaporean Exchange Bitrue Gets Hacked, Losing $5 Million in XRP, Cardano
Singapore-basedcrypto exchangeBitrue has suffered a majorhack, losing 9.3 millionXRPand 2.5 million cardano (ADA) from its hot wallet. The news was revealed in an officialstatementfrom the exchange published as a twitter thread on June 26.
At the time of the breach — 1 a.m. GMT+8 June 27 — the stolen funds would have been worth over $4.5 million in XRP (valued at $0.488) and $237,500 in ADA (valued at $0.095), according to CoinMarketCap data.
The exchange states that a purportedly single hacker first “exploited a vulnerability in our Risk Control team's 2nd review process to access the personal funds of about 90 Bitrue users,” subsequently using this first experience to access the exchange’s hot wallet and steal the cryptocurrency.
According to Bitrue, the attack was swiftly detected and the hacker’s activity suspended by the exchange. Bitrue reportedly notified the receiving exchanges of the incoming ill-gotten funds — specificallyHuobi,Bittrexand ChangeNOW — whom it credits with helping to freeze the relevant transactions and accounts.
The statement assures exchange users that “their personal funds are insured,” and that all those “affected by this breach will have their funds replaced by us as soon as possible.”
Currently, Bitrue says it is conducting an emergency inspection of the platform and aims to return to live service functionality as soon as possible — with log-in and trading support expected to relaunch sooner than withdrawals, which will remain offline for a longer period.
Bitrue provides the public with a link to trace the flow of funds on theXRP block explorer, and also states that it has contacted the Singaporean authorities to seek help in identifying the perpetrator.
An update is expected from the exchange once more has been learned of the incident.
Just this week, twoIsraelibrothers werearrestedin connection with the 2016 hack of crypto exchangeBitfinexand other crypto-relatedphishingattacks.
The$40 million hackof top crypto exchange Binance has loomed large over the industry this year — areported totalof sevencrypto exchangessuffered large-scalehacking attacksprior to Bitrue in the first six months of 2019.
• Major Korean Crypto Exchange Bithumb Prosecuted for Failure to Protect User Data
• Exit Scam? Dublin-Based Exchange Bitsane Vanishes With Users’ Funds
• Regtech Startup Coinfirm to Investigate XRP's Compliance With AML Provisions
• BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, ADA: Price Analysis 19/06 |
Next Green Wave Closes $2.75 Million Private Placement with CGOC
Vancouver, British Columbia--(Newsfile Corp. - June 27, 2019) -Next Green Wave Holdings Inc. (CSE: NGW) (OTCQB: NXGWF) ("Next Green Wave", "NGW" or the "Company")announces that it has closed a non-brokered $2.75 million financing (the "Financing") at a price of $0.25 per common share, and in exchange will issue a total of 11 million shares of NGW to the Cannabis Growth Opportunity Corporation ("CGOC"). In addition, the company will subscribe to a private placement to acquire $1.25 million common shares of CGOC at a price of $1.72 per share. The Financing will incur no finder's fees and replaces its most recent offering announced onJune 19, 2019.
Both companies respectively, have entered into a voting and resale agreement to hold their shares until February 1, 2020, as well as vote in favour of management on any issues requiring a shareholder vote.
The proceeds will be used to advance the Company's strategic partner alliances in California and provide working capital to accelerate its operations.
Jamie Blundell, President and Chief Operating Officer of CGOC commented,"We have been strategic investors in Next Green Wave since June 2018 when they were still a private company and have continued to support their efforts through their go-public transaction in October 2018. They anticipate near-term revenue generation and at the low-end of their annual revenue expectations we believe their current valuation is extremely low especially compared to similar companies. We remain confident in their strategy as we see tremendous growth ahead and believe this is a perfect entry point for investors."
Next Green Wave CEO and Executive Director, Leigh Hughes stated: "Due to comparative weakness in the cannabis sector while markets adjust and earnings expectations naturally become heightened, we have chosen to collaborate with a strong industry partner who shares our vision and will assist us to move towards revenue at the earliest possible opportunity - our near-term focus is on production, product roll-outs and sales - we believe that the Company can achieve this milestone without further financing."
About Next Green Wave
NGW is a California-based vertically integrated medicinal and recreational premium cannabis company. The Company's first state-of-the-art facility (35,000 ft.2) is in production, with further plans to develop the 15 acres of cannabis zoned land it is situated on. NGW has a seed library of over 120 strains which include award-winning genetics and cultivars. Recent acquisition of SDC Ventures LLC and its brand partners will provide NGW with significant exposure and distribution points throughout California. The investment in OMG3 will also provide NGW further access to distribution through Colombia. To find out more visitwww.nextgreenwave.comor follow us onTwitter,Instagram, orLinkedIn.
About CGOC
CGOC is an investment corporation that offers unique global exposure to the emerging global cannabis sector. CGOC's main objective is to provide shareholders long-term total return through its actively managed portfolio of securities, both public and private, operating in, or that derive a portion of their revenue or earnings from products or services related to the cannabis industry.
On behalf of the board,
Leigh Hughes,CEO and Executive ChairmanNext Green Wave Holdings Inc.
For more information regarding Next Green Wave, contact:
Caroline KlukowskiVP Corp. DevelopmentTel: +1 (778) 589-2848IR@nextgreenwave.com
Next Green Wave Forward Looking Statements
This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are "forward-looking statements." Forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. Such risks and uncertainties include, among others, dependence on obtaining and maintaining regulatory approvals, including acquiring and renewing state, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits to complete construction of its proposed facilities in a timely manner; engaging in activities which currently are illegal under US federal law and the uncertainty of existing protection from U.S. federal or other prosecution; regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization, particularly in California, due to inconsistent public opinion, perception of the medical-use and adult-use marijuana industry, bureaucratic delays or inefficiencies or any other reasons; any other factors or developments which may hinder market growth; NGW's limited operating history and lack of historical profits; reliance on management; NGW's requirements for additional financing, and the effect of capital market conditions and other factors on capital availability, including from more established or better financed competitors; and the need to secure and maintain corporate alliances and partnerships, including with customers and suppliers. Readers are encouraged to the review the section titled "Risk Factors" in NGW's prospectus. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. Although NGW has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. NGW no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45941 |
Europe is cooking in yet another heatwave. Our attempts to outrun climate change are futile
Countries across Europe are bracing themselves for potentially lethally high temperatures this week. While there are no indications that an event as extreme as the 2003 heatwave which killed 70,000 people is likely, thermometers could rise to 45°C in some places, and with it an increase in deaths. The good news is that cooler conditions are forecast to move in over the weekend. The bad news is that until humanity’s fever with economic growth is broken, we should expect more extreme weather events in the future. Because if all the world’s major economies continue their obsession with growth, more fossil fuels will be burnt and with it more carbon dioxide will be added to the atmosphere, quickening the process of climate breakdown. Exploring the link between particular weather events to human-caused climate change is challenging, but every ton of carbon dioxide we put into the atmosphere further increases the greenhouse effect and so traps more heat. So while there have always been heatwaves, there is increasing confidence that climate change progressively loads the dice in their favour so they become more frequent. Analysis of the 2018 European heatwave which produced temperatures over 33°C in places such as in the far north of Finland concluded that such freakish conditions were five times more likely as a consequence of climate change. People literally dropping dead because of high temperatures is the most visible impact of climate change. But there are other more insidious effects. Climate change is gradually raising global sea levels . That won’t be noticed until a storm surge sweeps away a city. Increasing temperatures are melting glaciers around the world. That will only make headlines when the absence of meltwater during a particularly dry spell leaves millions without drinking water. The Intergovernmental Panel on Climate Change’s (IPCC) job is to review the increasing amount of research into the impact of climate change. Its latest report summary can be found here . Put very simply, higher temperatures will produce more dangerous impacts. So why do we continue to burn coal, oil, and gas in huge quantities? Are our elected politicians and industrialists insane? Hopelessly corrupt? The more charitable answer is that they are simply deluded because they choose to believe that we can outrun the worst of these impacts. In their defence, there is some evidence to support this conclusion. Since May this year, India has been suffering a heatwave that has produced temperatures over 50°C in some regions. While dozens have died, the good news is that many lives have been saved by adaptation in the form of better public information campaigns such as those warning against working or even going outside during hottest periods, the increased distribution of water, and the painting of roofs with white paint. European countries have learnt important lessons from the 2003 tragedy and are closing schools, banning some cars from city centres, and handing out tens of thousands of bottles of water. Story continues So it’s clearly the case that better management and adaptation to higher temperatures can have a dramatic impact. An iconic example is the decrease in heat-related deaths in the USA over the 20 th Century. The reasons for that include the increase in the use of air conditioning as it provided cooled spaces in which heat-stressed people can recover. But what allowed the widespread use of air conditioning in the USA in the last century was the burning of fossil fuels which powered its huge economy and increases in wealth. Deploying more air conditioning in response to rising temperatures as a consequence of climate change will increase humanity’s energy demand. Demand that in India and other places will be satisfied by burning more coal. As well as increasing deaths from air pollution it will produce more carbon emissions and so more climate heating. This all makes as much sense as thinking that the way to avoid crashing into a mountain top in a hot air balloon, would be to set fire to the basket in order to increase the temperature inside. Humans have warmed the Earth’s climate over 1°C since we first started to use coal to power our economies. We will need to adapt to the changes we have made to the earth system. If we focus on the welfare of the most vulnerable, then at least for the next few decades, many lives can be saved. But to believe that economic growth will solve all of humanity’s problems, including those produced by economic growth, will only lead to even more extreme weather which would on our current trajectory leave significant regions of the earth uninhabitable. Rather than continue to subsidise fossil fuel companies with billions of dollars each year in order to protect economic growth, we should be using our abundant resources to both rapidly decarbonise and reduce vulnerabilities to the environmental change that’s already locked in. If that’s incompatible with our current form of capitalist system and the hyper-consumerist societies it produces, then in the words of Greta Thunburg, change the system . Because while this system’s ideology may be half-baked, it risks cooking us all. View comments |
Market report: H&M soars, abrupt exit for Pendragon boss, and bitcoin retreats
An H&M store in Palm Springs, California. Photo: Robert Alexander/Getty Images Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and abroad: H&M stock soars Shares in Swedish retailer H&M ( HM-B.ST ) jumped over 10% on Thursday after the company’s turnaround plans showed signs of progress. Net sales rose by 11% to £9.2bn in the first half of the year. Profit fell to £592.2m but H&M said the previous year was boosted by a one-off windfall from the US tax reforms. H&M CEO Karl-Johan Persson said: “The H&M group continues to increase full-price sales, reduce markdowns and increase market share, showing that customers appreciate our collections and the improvements we are making to the product assortment and the customer experience.” Abrupt exit for Pendragon boss Shares in Pendragon ( PDG.L ) fell by almost 4% after the car dealer announced the surprise exit of its CEO. Mark Herbert only took over as chief executive in April, but has left just weeks after issuing a shock profit warning that the company would swing to a loss. Herbert leaves Pendragon, which trades as Evans Halshaw, Stratstone and Car Store brands, on June 30. He will be replaced by Martin Casha, chief operating officer, and Mark Willis, the chief financial officer, while a replacement is found, the company said. The former boss’s plans for a major strategic update due in September will now be put on hold. Mr Herbert made no initial comment on his departure. Bitcoin retreats Bitcoin is retreating from its highs after rallying over 50% so far this month. The cryptocurrency peaked at a price of over $13,800 on Wednesday evening, before its price began to slide. Bitcoin suffered a “flash crash” at around 9.30pm UK time on Wednesday evening. “It looks to have been down to problems with the cryptocurrency trading platform Coinbase,” Neil Wilson, the chief market analyst at Markets.com, said. “Flash crashes like this can happen anywhere to just about any major market, but bitcoin seems particularly susceptible to them. This indicates that there is yet not the maturity or liquidity in this market than many of the crypto evangelists would like to think. Still volatile, still very risky – still Bitcoin.” Bitcoin was down 4.9% against the dollar to $12,274.01 ( BTC-USD ) at 9.05am UK time on Thursday and down 5.5% against the pound to £9,619.95 ( BTC-GBP ). Starbucks’ UK profits fall Starbucks ( SBUX ) slipped to a loss in the UK last year as it was hit by declining footfall, accounts show. Accounts filed with Companies House show that Starbucks UK made a loss of £17.2m in the 12-months ended September 2018, compared with a profit of £4.8m a year earlier, Bloomberg reported . Story continues Car production slide continues Car production in the UK slumped again in May, with output falling 15.5% compared to the same month a year ago, making it the 12th consecutive month of decline. Last month, 21,239 fewer cars were manufactured in the UK, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). The global slowdown in car sales is hurting both foreign and domestic demand for new cars from Britain, both of which declined by double digits in May. The SMMT said that with eight out of every ten cars made in the UK destined for foreign markets, frictionless free trade post-Brexit is more important than ever. Greene King profits drop Pubs and brewery business Greene King ( GNK.L ) has seen profits drop by 12.5% after it was forced to make a series of one-off payments and the value of its property portfolio fell, the company said. Pretax profits hit £172.8m, although revenues grew 1.8% to £2.2bn in the year to April 28. Pub sales were up 2.9% on a like-for-like basis, it added. Greene King predicted this year will be more challenging than last, especially with no large football tournaments taking place, but bosses plan to focus on creating “experiential offers” in pubs. It added: “Wellbeing remains a key concern for customers with millennials, in particular, seeking healthy food and drink options and placing greater importance on sustainability.” Funds like Woodford 'built on a lie' The UK’s top financial watchdog has been accused of “failing to address fundamental questions” raised by the suspension of the Woodford Equity Income Fund at the start of the month. “I am concerned that, despite previous problems and repeated warnings, including recent comments by Mark Carney, the FCA is still failing to address these fundamental questions,” Ian Sayers, the chief executive of the Association of Investment Companies (AIC), wrote in a letter to MPs. Sayers comments came in a letter to Treasury Select Committee chair Nicky Morgan MP. The letter was dated June 14 but published on Wednesday. Separately on Wednesday, Bank of England governor Mark Carney told the same committee that funds like Woodford’s are “built on a lie” because of their liquidity mismatch. B&Q owner names new boss B&Q owner Kingfisher ( KGF.L ) has appointed Thierry Garnier as its new chief executive to replace outgoing boss Veronique Laury. Garnier is currently at French retail giant Carrefour, where he heads up the Asia operations responsible for more than 350 stores in China and Taiwan. He will be based at Kingfisher’s headquarters in London and will join in autumn, with a start date still to be finalised. Europe markets in the green European markets were marginally higher on Thursday. Britain's FTSE 100 ( ^FTSE ) was up by 0.1%, by Germany's DAX ( ^GDAXI ) was down by 0.6%, and France's CAC 40 ( ^FCHI ) and the Euronext 100 ( ^N100 ) were both flat. “This weekend is extremely important for the future direction of global stock markets,” Russ Mould, investment director at AJ Bell, said. “The G20 summit will include trade talks between the US and China and investors will be looking for any sign that the two countries can sort out their differences. “Investors in Asia are certainly looking optimistic with markets in China, Hong Kong, India and Japan all rallying. European markets are more muted including only a small movement from the UK’s FTSE 100 index.” Japan's Nikkei 225 ( ^N225 ) ended up 1.1% overnight, Hong Kong's Hang Seng index ( ^HSI ) was up by 1.3%, and China's benchmark Shanghai Composite ( 000001.SS ) was up by 0.6%. What to expect in the US US stock futures were pointing to a higher open later today. S&P 500 futures ( ES=F ) were up by 0.4%, Dow Jones Industrial Average futures ( YM=F ) were up by 0.2%, and Nasdaq futures ( NQ=F ) were up by 0.6%. Companies reporting later today in the US include: Walgreens Boots Alliance ( WBA ) Accenture ( ACN ) Nike ( NKE ) View comments |
What To Know Before Buying Sanderson Group plc (LON:SND) For Its Dividend
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Is Sanderson Group plc (LON:SND) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
A 2.5% yield is nothing to get excited about, but investors probably think the long payment history suggests Sanderson Group has some staying power. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Click the interactive chart for our full dividend analysis
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Sanderson Group paid out 56% of its profit as dividends. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift the payout ratio over time.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Sanderson Group's cash payout ratio in the last year was 32%, which suggests dividends were well covered by cash generated by the business. It's positive to see that Sanderson Group's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Remember, you can always get a snapshot of Sanderson Group's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Sanderson Group has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been cut by more than 20% on at least one occasion historically. During the past ten-year period, the first annual payment was UK£0.014 in 2009, compared to UK£0.03 last year. This works out to be a compound annual growth rate (CAGR) of approximately 7.9% a year over that time. The dividends haven't grown at precisely 7.9% every year, but this is a useful way to average out the historical rate of growth.
A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once.
Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Earnings have grown at around 8.6% a year for the past five years, which is better than seeing them shrink! The rate at which earnings have grown is quite decent, and by paying out more than half of its earnings as dividends, the company is striking a reasonable balance between reinvestment and returns to shareholders.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. Sanderson Group's payout ratios are within a normal range for the average corporation, and we like that its cashflow was stronger than reported profits. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Sanderson Group has a number of positive attributes, but it falls slightly short of our (admittedly high) standards. Were there evidence of a strong moat or an attractive valuation, it could still be well worth a look.
Are management backing themselves to deliver performance? Check their shareholdings in Sanderson 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. |
Has SoftTech Engineers Limited (NSE:SOFTTECH) Improved Earnings Growth In Recent Times?
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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 SoftTech Engineers Limited's (NSE:SOFTTECH) 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.
See our latest analysis for SoftTech Engineers
SOFTTECH's trailing twelve-month earnings (from 31 March 2019) of ₹74m has increased by 9.3% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 22%, indicating the rate at which SOFTTECH is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s transpiring with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, SoftTech Engineers has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 11% exceeds the IN Software industry of 7.5%, indicating SoftTech Engineers has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for SoftTech Engineers’s debt level, has declined over the past 3 years from 20% to 17%.
Though SoftTech Engineers's past data is helpful, it is only one aspect of my investment thesis. While SoftTech Engineers has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research SoftTech Engineers to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SOFTTECH’s future growth? Take a look at ourfree research report of analyst consensusfor SOFTTECH’s outlook.
2. Financial Health: Are SOFTTECH’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. |
Does Sonaecom, SGPS, S.A.'s (ELI:SNC) CEO Salary Reflect Performance?
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Ângelo Gabriel Dos Santos Paupério is the CEO of Sonaecom, SGPS, S.A. (ELI:SNC). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Sonaecom SGPS
Our data indicates that Sonaecom, SGPS, S.A. is worth €767m, and total annual CEO compensation is €468k. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at €184k. We looked at a group of companies with market capitalizations from €351m to €1.4b, and the median CEO total compensation was €445k.
So Ângelo Gabriel Dos Santos Paupério is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Sonaecom SGPS has changed from year to year.
Sonaecom, SGPS, S.A. has increased its earnings per share (EPS) by an average of 50% a year, over the last three years (using a line of best fit). It achieved revenue growth of 31% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested inthisfreevisualization of analyst forecasts.
With a total shareholder return of 24% over three years, Sonaecom, SGPS, S.A. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Ângelo Gabriel Dos Santos Paupério is paid around the same as most CEOs of similar size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Sonaecom SGPS (free visualization of insider trades).
Important note:Sonaecom SGPS may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Does Soitec S.A.'s (EPA:SOI) Balance Sheet Tell Us About It?
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Soitec S.A. (EPA:SOI) is a small-cap stock with a market capitalization of €3.0b. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Assessing first and foremost the financial health is 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, potential investors would need to take a closer look, and I recommend youdig deeper yourself into SOI here.
SOI has built up its total debt levels in the last twelve months, from €78m to €222m – this includes long-term debt. With this rise in debt, SOI's cash and short-term investments stands at €176m , ready to be used for running the business. Moreover, SOI has generated cash from operations of €57m during the same period of time, leading to an operating cash to total debt ratio of 26%, indicating that SOI’s operating cash is sufficient to cover its debt.
At the current liabilities level of €204m, it seems that the business has been able to meet these obligations given the level of current assets of €450m, with a current ratio of 2.21x. The current ratio is the number you get when you divide current assets by current liabilities. For Semiconductor companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
With a debt-to-equity ratio of 55%, SOI can be considered as an above-average leveraged company. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In SOI's case, the ratio of 83.77x suggests that interest is comfortably covered, which means that lenders may be willing to lend out more funding as SOI’s high interest coverage is seen as responsible and safe practice.
Although SOI’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. Keep in mind I haven't considered other factors such as how SOI has been performing in the past. You should continue to research Soitec to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SOI’s future growth? Take a look at ourfree research report of analyst consensusfor SOI’s outlook.
2. Valuation: What is SOI 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 SOI 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. |
Shep Smith Chokes Up Talking About The Trump Admin's Treatment Of Migrants
Fox News’ Shep Smith had a lump in his throat on Wednesday as he continued his dogged criticism of how President Donald Trump’s administration has been mistreating migrants detained at the U.S.-Mexico border. The host of “Shepard Smith Reporting” became emotional during a discussion on immigration with Real Clear Politics editor A.B. Stoddard after reporting on the deaths of Salvadoran migrant Oscar Alberto Martínez Ramírez and his 23-month-old daughter, Angie Valeria. Earlier this week, a photograph showed the drowned pair on the bank of the Rio Grande after trying to enter the U.S. Smith noted how “through the history of this nation, we have said ‘give us your tired, your poor and your huddled masses.’ That’s what we’ve said as a society to people who were in a position where they cannot or their children cannot properly survive. And we have always, since the dawn of this nation, said ‘then come, we’ll figure this out.’” Those communities have “made American better,” he added. “We’ve said ’if you are in the right place, if your heart is in the right place, and your idea is in the right place and you want to come be a part of this grand experiment, we want you here,” Smith said. “When did we change that? And how do we get the previous back?” Check out the discussion here: Earlier in the week, Smith used a war crime analogy to call out the “horrifying” conditions endured by undocumented children who were detained at the border. He also debunked Trump’s claim that the youngsters were being treated well. Related... Don Lemon Wells Up Over Photo Of Drowned Migrant Father And Daughter: 'I Can't' Shep Smith Delivers Scathing Fact-Check Of Donald Trump’s Migrant Children Claim Kids Magazine Issues Blistering Takedown Of Trump Migrant Children Policies Also on HuffPost Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost . |
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