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Here’s What Hedge Funds Think About Turquoise Hill Resources Ltd (TRQ)
Is Turquoise Hill Resources Ltd (NYSE:TRQ) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It's not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.
IsTurquoise Hill Resources Ltd (NYSE:TRQ)ready to rally soon? Prominent investors are in a bullish mood. The number of bullish hedge fund positions improved by 1 lately. Our calculations also showed that TRQ isn't among the30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
[caption id="attachment_746825" align="aligncenter" width="473"]
Matthew Halbower -Pentwater Capital[/caption]
We're going to take a gander at the fresh hedge fund action surrounding Turquoise Hill Resources Ltd (NYSE:TRQ).
At the end of the first quarter, a total of 17 of the hedge funds tracked by Insider Monkey were long this stock, a change of 6% from one quarter earlier. On the other hand, there were a total of 18 hedge funds with a bullish position in TRQ a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey,SailingStone Capital Partners, managed by MacKenzie B. Davis and Kenneth L. Settles Jr, holds the largest position in Turquoise Hill Resources Ltd (NYSE:TRQ). SailingStone Capital Partners has a $398.7 million position in the stock, comprising 26.3% of its 13F portfolio. The second most bullish fund manager is Matthew Halbower ofPentwater Capital Management, with a $311.9 million position; the fund has 3.9% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include David Iben'sKopernik Global Investors, Ken Heebner'sCapital Growth Managementand Jonathan Barrett and Paul Segal'sLuminus Management.
As aggregate interest increased, some big names were breaking ground themselves.Capital Growth Management, managed by Ken Heebner, assembled the most outsized position in Turquoise Hill Resources Ltd (NYSE:TRQ). Capital Growth Management had $36.6 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace'sMarshall Wace LLPalso made a $6.8 million investment in the stock during the quarter. The only other fund with a new position in the stock is Michael Platt and William Reeves'sBlueCrest Capital Mgmt..
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Turquoise Hill Resources Ltd (NYSE:TRQ) but similarly valued. These stocks are Lions Gate Entertainment Corporation (NYSE:LGF-B), Intercept Pharmaceuticals Inc (NASDAQ:ICPT), The Timken Company (NYSE:TKR), and Paramount Group Inc (NYSE:PGRE). This group of stocks' market valuations resemble TRQ's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LGF-B,16,285528,-3 ICPT,21,385810,0 TKR,26,288105,1 PGRE,16,236374,2 Average,19.75,298954,0 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 19.75 hedge funds with bullish positions and the average amount invested in these stocks was $299 million. That figure was $929 million in TRQ's case. The Timken Company (NYSE:TKR) is the most popular stock in this table. On the other hand Lions Gate Entertainment Corporation (NYSE:LGF-B) is the least popular one with only 16 bullish hedge fund positions. Turquoise Hill Resources Ltd (NYSE:TRQ) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately TRQ wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); TRQ investors were disappointed as the stock returned -27.1% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About Carbonite Inc (CARB)
As we already know from media reports and hedge fund investor letters, many hedge funds lost money in fourth quarter, blaming macroeconomic conditions and unpredictable events that hit several sectors, with technology among them. Nevertheless, most investors decided to stick to their bullish theses and recouped their losses by the end of the first quarter. We get to see hedge funds' thoughts towards the market and individual stocks by aggregating their quarterly portfolio movements and reading their investor letters. In this article, we will particularly take a look at what hedge funds think about Carbonite Inc (NASDAQ:CARB).
IsCarbonite Inc (NASDAQ:CARB)a first-rate stock to buy now? The smart money is in a bullish mood. The number of bullish hedge fund positions rose by 4 recently. Our calculations also showed that CARB isn't among the30 most popular stocks among hedge funds.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
We're going to check out the latest hedge fund action encompassing Carbonite Inc (NASDAQ:CARB).
Heading into the second quarter of 2019, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, a change of 25% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in CARB over the last 15 quarters. With the smart money's sentiment swirling, there exists an "upper tier" of key hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
More specifically,Elliott Managementwas the largest shareholder of Carbonite Inc (NASDAQ:CARB), with a stake worth $29.4 million reported as of the end of March. Trailing Elliott Management was Indaba Capital Management, which amassed a stake valued at $26.7 million. Renaissance Technologies, Portolan Capital Management, and Millennium Management were also very fond of the stock, giving the stock large weights in their portfolios.
With a general bullishness amongst the heavyweights, some big names have jumped into Carbonite Inc (NASDAQ:CARB) headfirst.Elliott Management, managed by Paul Singer, established the most outsized position in Carbonite Inc (NASDAQ:CARB). Elliott Management had $29.4 million invested in the company at the end of the quarter. Derek C. Schrier'sIndaba Capital Managementalso made a $26.7 million investment in the stock during the quarter. The following funds were also among the new CARB investors: Paul Marshall and Ian Wace'sMarshall Wace LLP, Lee Ainslie'sMaverick Capital, and Ken Griffin'sCitadel Investment Group.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Carbonite Inc (NASDAQ:CARB) but similarly valued. We will take a look at Nightstar Therapeutics plc (NASDAQ:NITE), Omeros Corporation (NASDAQ:OMER), Controladora Vuela Co Avcn SA CV (NYSE:VLRS), and X Financial (NYSE:XYF). This group of stocks' market caps match CARB's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NITE,14,119090,6 OMER,6,98765,-1 VLRS,10,88125,3 XYF,2,4088,0 Average,8,77517,2 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $78 million. That figure was $146 million in CARB's case. Nightstar Therapeutics plc (NASDAQ:NITE) is the most popular stock in this table. On the other hand X Financial (NYSE:XYF) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Carbonite Inc (NASDAQ:CARB) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately CARB wasn't nearly as popular as these 20 stocks and hedge funds that were betting on CARB were disappointed as the stock returned 1.5% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Here’s What Hedge Funds Think About Cabot Microelectronics Corporation (CCMP)
The first quarter was a breeze as Powell pivoted, and China seemed eager to reach a deal with Trump. Both the S&P 500 and Russell 2000 delivered very strong gains as a result, with the Russell 2000, which is composed of smaller companies, outperforming the large-cap stocks slightly during the first quarter. Unfortunately sentiment shifted in May as this time China pivoted and Trump put more pressure on China by increasing tariffs. Hedge funds' top 20 stock picks performed spectacularly in this volatile environment. These stocks delivered a total gain of 18.7% through May 30th, vs. a gain of 12.1% for the S&P 500 ETF. In this article we will look at how this market volatility affected the sentiment of hedge funds towards Cabot Microelectronics Corporation (NASDAQ:CCMP), and what that likely means for the prospects of the company and its stock.
IsCabot Microelectronics Corporation (NASDAQ:CCMP)a healthy stock for your portfolio? The best stock pickers are selling. The number of bullish hedge fund positions were trimmed by 3 lately. Our calculations also showed that CCMP isn't among the30 most popular stocks among hedge funds.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
We're going to take a gander at the recent hedge fund action encompassing Cabot Microelectronics Corporation (NASDAQ:CCMP).
At Q1's end, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -15% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards CCMP over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey's hedge fund database, Jim Simons'sRenaissance Technologieshas the largest position in Cabot Microelectronics Corporation (NASDAQ:CCMP), worth close to $128.8 million, corresponding to 0.1% of its total 13F portfolio. Sitting at the No. 2 spot isRoyce & Associates, led by Chuck Royce, holding a $72.3 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions consist of Phill Gross and Robert Atchinson'sAdage Capital Management, Clint Carlson'sCarlson Capitaland Ken Griffin'sCitadel Investment Group.
Judging by the fact that Cabot Microelectronics Corporation (NASDAQ:CCMP) has faced a decline in interest from the aggregate hedge fund industry, it's safe to say that there lies a certain "tier" of funds who were dropping their positions entirely heading into Q3. Intriguingly, John Overdeck and David Siegel'sTwo Sigma Advisorscut the biggest position of the "upper crust" of funds monitored by Insider Monkey, comprising close to $7.3 million in stock, and David Costen Haley's HBK Investments was right behind this move, as the fund sold off about $2.4 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 3 funds heading into Q3.
Let's now take a look at hedge fund activity in other stocks similar to Cabot Microelectronics Corporation (NASDAQ:CCMP). These stocks are Cornerstone OnDemand, Inc. (NASDAQ:CSOD), Taubman Centers, Inc. (NYSE:TCO), Qualys Inc (NASDAQ:QLYS), and Allegheny Technologies Incorporated (NYSE:ATI). This group of stocks' market values are similar to CCMP's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CSOD,29,644787,-2 TCO,14,205038,-6 QLYS,14,144956,-3 ATI,25,209165,1 Average,20.5,300987,-2.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $301 million. That figure was $274 million in CCMP's case. Cornerstone OnDemand, Inc. (NASDAQ:CSOD) is the most popular stock in this table. On the other hand Taubman Centers, Inc. (NYSE:TCO) is the least popular one with only 14 bullish hedge fund positions. Cabot Microelectronics Corporation (NASDAQ:CCMP) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately CCMP wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); CCMP investors were disappointed as the stock returned -4.7% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Hedge Funds Have Never Been This Bullish On Lindblad Expeditions Holdings Inc (LIND)
Lindblad Expeditions Holdings Inc (NASDAQ:LIND)investors should be aware of an increase in activity from the world's largest hedge funds lately.LINDwas in 20 hedge funds' portfolios at the end of the first quarter of 2019. There were 14 hedge funds in our database with LIND holdings at the end of the previous quarter. This is usually a bullish indicator. We observed this in other stocks like Roku, Uniqure,Avalara, andDisney.Roku returnedreturned 45%,Uniqure and Avalara delivereda 30% gain each, andDisney outperformedthe market by 23 percentage points in Q2.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
Let's view the fresh hedge fund action encompassing Lindblad Expeditions Holdings Inc (NASDAQ:LIND).
At the end of the first quarter, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 43% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards LIND over the last 15 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds,ValueAct Capitalheld the most valuable stake in Lindblad Expeditions Holdings Inc (NASDAQ:LIND), which was worth $44.1 million at the end of the first quarter. On the second spot was Royce & Associates which amassed $16.4 million worth of shares. Moreover, Deep Field Asset Management, Renaissance Technologies, and Rutabaga Capital Management were also bullish on Lindblad Expeditions Holdings Inc (NASDAQ:LIND), allocating a large percentage of their portfolios to this stock.
As one would reasonably expect, specific money managers were breaking ground themselves.Millennium Management, managed by Israel Englander, initiated the biggest position in Lindblad Expeditions Holdings Inc (NASDAQ:LIND). Millennium Management had $5.6 million invested in the company at the end of the quarter. Richard Driehaus'sDriehaus Capitalalso initiated a $5.2 million position during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capital, Bruce Kovner'sCaxton Associates LP, and David Harding'sWinton Capital Management.
Let's check out hedge fund activity in other stocks similar to Lindblad Expeditions Holdings Inc (NASDAQ:LIND). These stocks are TrueCar Inc (NASDAQ:TRUE), Revance Therapeutics Inc (NASDAQ:RVNC), Northfield Bancorp Inc (NASDAQ:NFBK), and US Concrete Inc (NASDAQ:USCR). All of these stocks' market caps are similar to LIND's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TRUE,17,166148,2 RVNC,12,24975,3 NFBK,5,32141,1 USCR,17,76849,-1 Average,12.75,75028,1.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $157 million in LIND's case. TrueCar Inc (NASDAQ:TRUE) is the most popular stock in this table. On the other hand Northfield Bancorp Inc (NASDAQ:NFBK) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Lindblad Expeditions Holdings Inc (NASDAQ:LIND) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on LIND as the stock returned 15.2% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published atInsider Monkey.
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EUR/USD Price Forecast – Euro goes back and forth they had to the G 20
The Euro has gone back and forth during the trading session on Thursday, as we continue to dance around the 200 day EMA. The market has been very bullish as of late so it would make sense to see a little bit of buying on dips, but with the G 20 coming this weekend, it’s very likely to keep the markets relatively quiet. We had initially rallied to significantly, and now we are waiting to see whether the United States and China can come together with some type of terms. That seems very unlikely, but because of that uncertainty I think that it’s going to be difficult to throw a lot of money into this pair. EURUSD analysis Video 28.06.19 We have most certainly seen a change of the overall attitude, so therefore I think we are in the midst of a potential trend change. That being the case, I think short-term pullbacks are an opportunity to pick up value, as the Euro has been so oversold for quite some time. Now that the Federal Reserve is starting to talk about rate cuts, the Forex markets will have to price in these cuts therefore driving down the value of the greenback. Obviously, there can be the occasional shock to the system due to geopolitical concerns, but the Federal Reserve will be the biggest mover of markets as per usual. Please let us know what you think in the comments below This article was originally posted on FX Empire More From FXEMPIRE: Silver Price Forecast – Silver markets forming Triangle Natural Gas Price Forecast – Natural gas markets run into exhaustion Forex Daily Recap – Cable Surged +0.50% Despite Johnson’s Parliament Proroguing Stance Natural Gas Weekly Price Forecast – Natural gas markets recover for the week GBP/USD Weekly Price Forecast – British pound has neutral week Crude Oil Weekly Price Forecast – Crude oil markets rally for the week |
How Much Are Tiptree Inc. (NASDAQ:TIPT) Insiders Spending On Buying Shares?
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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares inTiptree Inc.(NASDAQ:TIPT).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for Tiptree
Executive Chairman of the Board Michael Barnes made the biggest insider purchase in the last 12 months. That single transaction was for US$117k worth of shares at a price of US$6.53 each. That means that an insider was happy to buy shares at above the current price of US$6.17. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders bought 39827 shares for a total of US$250k. While Tiptree insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them).
Over the last three months, we've seen significant insider buying at Tiptree. In total, insiders bought US$229k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 35% of Tiptree shares, worth about US$74m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Tiptree we think they are probably pretty confident of a bright future.I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Hedge Funds Have Never Been This Bullish On Morningstar, Inc. (MORN)
Does Morningstar, Inc. (NASDAQ:MORN) represent a good buying opportunity at the moment? Let’s quickly check the hedge fund interest towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on satellite photos and other research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail inconceivably on some occasions, but net net their stock picks have been generating superior risk-adjusted returns on average over the years.
IsMorningstar, Inc. (NASDAQ:MORN)worth your attention right now? The best stock pickers are getting more optimistic. The number of long hedge fund bets went up by 1 lately. Our calculations also showed that MORN isn't among the30 most popular stocks among hedge funds.MORNwas in 21 hedge funds' portfolios at the end of the first quarter of 2019. There were 20 hedge funds in our database with MORN holdings at the end of the previous quarter.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
Let's take a glance at the fresh hedge fund action surrounding Morningstar, Inc. (NASDAQ:MORN).
Heading into the second quarter of 2019, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 5% from the previous quarter. The graph below displays the number of hedge funds with bullish position in MORN over the last 15 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically,Renaissance Technologieswas the largest shareholder of Morningstar, Inc. (NASDAQ:MORN), with a stake worth $87.7 million reported as of the end of March. Trailing Renaissance Technologies was Royce & Associates, which amassed a stake valued at $68.1 million. Arrowstreet Capital, Millennium Management, and AQR Capital Management were also very fond of the stock, giving the stock large weights in their portfolios.
As aggregate interest increased, key hedge funds were leading the bulls' herd.BlueCrest Capital Mgmt., managed by Michael Platt and William Reeves, initiated the most outsized position in Morningstar, Inc. (NASDAQ:MORN). BlueCrest Capital Mgmt. had $0.6 million invested in the company at the end of the quarter. Minhua Zhang'sWeld Capital Managementalso initiated a $0.4 million position during the quarter.
Let's check out hedge fund activity in other stocks similar to Morningstar, Inc. (NASDAQ:MORN). These stocks are Gentex Corporation (NASDAQ:GNTX), New York Community Bancorp, Inc. (NYSE:NYCB-U), Pure Storage, Inc. (NYSE:PSTG), and AGCO Corporation (NYSE:AGCO). This group of stocks' market valuations resemble MORN's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GNTX,23,308447,0 NYCB-U,3,26107,1 PSTG,21,725624,-5 AGCO,26,200918,-6 Average,18.25,315274,-2.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $315 million. That figure was $226 million in MORN's case. AGCO Corporation (NYSE:AGCO) is the most popular stock in this table. On the other hand New York Community Bancorp, Inc. (NYSE:NYCB-U) is the least popular one with only 3 bullish hedge fund positions. Morningstar, Inc. (NASDAQ:MORN) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on MORN as the stock returned 15.4% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published atInsider Monkey.
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10 High-Profile IPOs: What the Analysts Think
Getty Images Fans of initial public offerings (IPOs) have gotten one flashy deal after another in 2019. Some companies such as Beyond Meat ( BYND ) shocked onlookers with a meteoric ascent, while other hotly hyped companies such as Uber Technologies ( UBER ) crashed and burned early on. But broadly speaking, there's demand for IPOs, and up-and-coming companies are happy to fill that demand. "IPO activity is (mildly) cyclical, as management teams take the opportunity to go public while being buoyed by favorable economic conditions," Bernstein equity strategist Noah Weisberger told CNBC in explaining this year's red-hot IPO market . It's early going for these new stocks, however. They have only a few months of trading under their belts, and very little financial track record to go on. With so little information at their fingertips, investors must rely heavily on Wall Street's analysts for insights into the comings and goings of these IPOs. Here are 10 recent higher-profile IPOs, and what analysts are saying about each of these new stocks. SEE ALSO: The 19 Best Stocks to Buy for the Rest of 2019 Uber Technologies Getty Images Market value: $73.1 billion TipRanks consensus price target: $53.48 (24% upside potential) TipRanks consensus rating: Strong Buy Uber Technologies ( UBER , $43.09) was one of the most highly anticipated IPOs on the calendar, but its May offering was a massive flop. Some hailed it as the most disappointing IPO since Facebook ( FB ) went public in 2012. "The timing of our IPO was very much aligned with our president's tariff wars, the same day," CEO Dara Khosrowshahi said at the Economic Club of Washington . "So I think we got caught up a bit in the market swirl." Uber raised $8.1 billion in its early May IPO and opened trading at just $42 per share, down from its IPO price of $45. Despite this conservative starting point, shares continued to slide during their first trading day and closed at just $41.57. Khosrowshahi even had to reassure employees that "Facebook and Amazon post-IPO trading was incredibly difficult for those companies" as the company's new stock continued to fall the next day. Story continues Shares have recovered a little since then. And for some, Uber is a compelling investing proposition because shares haven't run up to sky-high valuations so quickly after the offering. Top-rated SunTrust Robinson analyst Youssef Squali describes Uber as "a generational company compounding at scale." "Uber is capitalizing on powerful secular trends around the improving technology/ubiquity of personal mobile devices and ever-advancing consumer preferences, to transform a very large but highly inefficient transportation market," writes Squali, who also points out that Uber dominates ridesharing (outside of China) and has used its scale to grow both Uber Eats and Uber Freight. Wedbush's Ygal Arounian, who has an "Outperform" (equivalent of "Buy") rating and a $65 price target on Uber stock, says the company has the DNA to become a game-changing consumer distribution ecosystem over the coming years. He also dismisses concerns about the departures of COO Barney Harford and CMO Rebecca Messina, announced on June 7. "In the near term we believe this move is better to happen sooner rather than later," he writes. "By having the leadership teams of rideshare and Eats report directly to (Khosrowshahi), Dara and Uber are more clearly focusing on optimizing the full consumer value proposition ..." Uber boasts a "Strong Buy" Street consensus, with 21 "Buy" ratings versus just five "Holds." See what those other top analysts have to say about UBER on TipRanks. SEE ALSO: Hedge Funds' 25 Favorite Blue-Chip Stocks Avantor Getty Images Market value: $10.0 billion TipRanks consensus price target: $20.62 (10% upside potential) TipRanks consensus rating: Strong Buy Avantor ( AVTR , $18.70), a chemical maker in the life sciences industry, is a "smid-cap" (on the border of small and mid) stock to put on your investing radar. Avantor - formed by the 2017 merger of Avantor Performance Materials and VWR - serves attractive and relatively defensive addressable markets worth roughly $70 billion. Avantor made the move from private to public in mid-May. The company sold 207 million shares priced at $14 per share, generating $2.9 billion. Shares closed their first day slightly higher, at $14.50, though the stock has been much more impressive since then, surging 29% to current share prices. The Street broadly thinks AVTR is worth buying into, with 13 out of the 15 analysts covering the stock leaning bullish (the other two are on the sidelines). Merrill Lynch analyst Derik De Bruin is in the bull camp. His Street-high price target of $22 indicates upside potential of 17%. "We believe the combined company is better positioned competitively than the standalones, and poised to deliver higher growth and profitability," he writes. De Bruin believes Avantor can "steadily grow revenues in line with or even modestly better than its LST peers, expand margins, reduce debt, and deliver a 10% EPS CAGR over the next three years." What are other financial experts saying about this global life sciences manufacturer and distributor? Find out on TipRanks. SEE ALSO: The Berkshire Hathaway Portfolio: All 48 Buffett Stocks Pinterest Getty Images Market value: $14.2 billion TipRanks consensus price target: $28.62 (9% upside potential) TipRanks consensus rating: Moderate Buy Popular photo-sharing website Pinterest ( PINS , $26.14) made its debut on the New York Stock Exchange back in April. Unlike many other social media platforms, Pinterest focuses on enabling visual inspiration rather than talking to friends or following celebrities. This strategy has resonated with investors, who drove PINS shares from an IPO price of $19 to $23.75 on their first day of trading. The stock has trudged forward to current prices from there, and in fact is coming close to the average analyst target price. In fact, most analysts covering the stock are taking a wait-and-see approach, with 13 "Hold" ratings versus just 5 "Buys." "While we find Pinterest's visual discovery platform truly unique and its mid-to-low funnel return prospects for advertisers promising, we also acknowledge an incredibly competitive digital ad marketplace and daily time spent on social platforms nearly maxed out," Rosenblatt Securities analyst Mark Zgutowicz writes. He initiated PIN with a "Neutral" rating (equivalent of "Hold") and a $32 price target, although this has since been lowered to $28. The analyst cited higher investment and ARPU (average revenue per user) growth deceleration as the reason behind the price downgrade. Looking forward, analysts are also keeping a close eye on the company's sizable international opportunity. However, as Zgutowicz cautions, new local branding and sales efforts will take significant time and investment before PINS will be able to reap the rewards. See why other top analysts have a cautiously optimistic outlook on Pinterest . SEE ALSO: 10 Small-Cap Growth Stocks Analysts Love the Most Tradeweb Markets Getty Images Market value: $9.1 billion TipRanks consensus price target: $41.82 (2% upside potential) TipRanks consensus rating: Hold Bank-backed trading platform Tradeweb Markets ( TW , $41.09) raised $1.1 billion in its April IPO. The financial services company sold 40 million shares at $27 each, beating its initial target price of $24-$26. Shares opened at $37.26 and have advanced even more since then. But at the moment, analysts don't see much growth from here. Wall Street's consensus price target sits just 2% higher from current prices. Meanwhile, 10 analysts have a "Hold" rating on Tradeweb, against just two "Buys." Several pros are staying on the sideline because of a high valuation. Barclays analyst Jeremy Campbell writes, "Valuation is the crux of our Equal Weight rating as we love the electronification of fixed income theme, but feel that TW shares fully reflect the most likely growth scenario." Indeed, Campbell's $39 price target implies 5% downside potential. He praises TW's diversified business model (40-plus products) but adds that "Greater penetration in electronic credit would get us more bullish." Raymond James' Patrick O'Shaughnessy delivers a similar message. Despite calling the company "attractive," the analyst initiated coverage on TW with a "Market Perform" rating (equivalent of "Hold") due to its premium valuation. And Morgan Stanley's Michael Cyprys advises investors to wait for a better entry point before snapping up TW stock. For further insights into this stock, check out TW's analyst page at TipRanks . SEE ALSO: 10 Small-Cap Value Stocks Analysts Love the Most Levi Strauss Getty Images Market value: $8.1 billion TipRanks consensus price target: $24.67 (19% upside potential) TipRanks consensus rating: Moderate Buy Jeans aren't traditional trading-floor attire, but that wasn't the case when denim giant Levi Strauss ( LEVI , $20.75) returned to the market on March 21. At its 2019 IPO, Levi sold $623 million worth of shares at a price of $17 per share, beating the initial target of $14-$16. Shares exploded 30% to open at $22.22. Traders wore blue jeans to celebrate the occasion. The stock has since remained relatively rangebound, however, and analysts are divided about whether you should buy now, creating a consensus "Moderate Buy." Three analysts call LEVI a "Buy," while three rate it a "Hold." But if we look at only top-rated analysts, that consensus shifts to a more bullish "Strong Buy." Five-star Guggenheim analyst Robert Drbul has just initiated coverage with a "Buy" rating and $26 price target. He calls this a "rivet-ing growth story," writing, "Levi's is a company with a very rich heritage ... and today benefits from a high-quality, deep, and experienced management, led by CEO Chip Bergh and CFO Harmit Singh. As numerous growth strategies implemented by this team take hold, we foresee continued market share gains across apparel, globally, alongside improving profitability." He cites numerous recent collaborations by Levi's, such as with KITH, Supreme, Off White and Justin Timberlake, as well as marketing initiatives with Alicia Keys and partnerships with influencer-dominant events such as Coachella. These "speak to the significant brand equity management underway at Levi's," Drbul writes. Discover how the stock's 'Moderate Buy' consensus breaks down on TipRanks . SEE ALSO: 20 Great Stocks That You Haven't Heard Of Lyft Inc. Getty Images Market value: $18.6 billion TipRanks consensus price target: $70.25 (10% upside potential) TipRanks consensus rating: Moderate Buy Uber isn't the only ride-hailing service to hit the markets in 2019. Lyft Inc. ( LYFT , $64.04) actually executed its IPO two months earlier, in late March, with shares priced at $72. Unfortunately, shares have pulled back considerably since then, with experts pointing to Lyft's service's deep unprofitability. But it's not all doom and gloom. "We believe the competitive environment is likely as favorable as it's ever been in the [about] 7 years of ridesharing, with record low incentives for drivers and riders," JPMorgan's Doug Anmuth writes. "Importantly, as price competition & couponing ease, we believe Lyft can extend its share gains based on its singular focus on [transportation as a service] and ongoing product innovation." The five-star analyst has a bullish $86 price target on Lyft, implying upside potential of 34%. Analysts as a whole are mixed on LYFT right now, however, giving it a "Moderate Buy" consensus rating. Yes, 19 analysts rate it a "Buy," but eight have it at "Hold" and three call it a "Sell." Top-rated Susquehanna analyst Shyam Patil has just upgraded Lyft from "Hold" to "Buy" and lifted her price target from $57 per share to $80. Lyft has a "a strong #2 market presence," he writes, and a savvy "longer-term transportation-as-a-service vision." "With the US rideshare market becoming more rational, LYFT showing clear evidence of marketing and insurance cost leverage, and UBER's IPO out of the way, this is the time to buy the stock," Patil concludes. See what other top analysts have to say about LYFT on TipRanks. SEE ALSO: 10 Growth ETFs to Buy for Backside Protection, Too Zoom Video Communications Courtesy Zoom Video Communications Market value: $23.2 billion TipRanks consensus price target: $84.50 (1% downside potential) TipRanks consensus rating: Moderate Buy Zoom Video Communications ( ZOOM , $85.03) provides remote video conferencing services using cloud computing. What sets Zoom apart is that this recent IPO has already managed to turn a profit - many new stocks come to market representing money-losing operations. Perhaps that's why the company delivered a remarkable offering, with shares exploding more than 70% on the first day of trading. Indeed, Zoom has more than doubled its $36 IPO price thanks to stellar financial results. In its most recent quarter, revenues more than doubled and were 9.2% better than forecasts, while profits beat expectations by 2 cents per share. It also forecast 74.4% year-over-year sales growth in its current quarter. "Clearly ZM has brought to market a highly differentiated and disruptive product, enabled by a sound go-to-market strategy," Northland Securities analyst Ryan Koontz writes. "The company has high inspirations to revolutionize the way people communicate and we are enthused by the company's market momentum and strong execution out of the gate." However, Zoom's strong growth has placed the stock at a crossroads. ZM has exceeded the analyst consensus price target, meaning we'll want to see whether analysts keep pushing their estimates forward ... or think Zoom has climbed all it will climb for the moment. It seems the latter, as the stock boasts 10 "Hold" ratings versus just four "Buys." He explained: "We are bullish on the company's ability to execute but we view the stock as fully or over-valued since its since its IPO on April 18," Koontz wrote after the company's Early-June earnings report. Find out how the Street's average price target for ZM breaks down . SEE ALSO: 7 Double-Threat Dividend Stocks in Tech Rattler Midstream LP Getty Images Market value: $2.93 billion TipRanks consensus price target: $22.31 (16% upside potential) TipRanks consensus rating: Moderate Buy Welcome to the biggest energy IPO of 2019 so far. Rattler Midstream LP ( RTLR , $19.29) raised $665 million in May, easily surpassing the gains for both Brigham Minerals ( MNRL ) and New Fortress Energy LLC ( NFE ). The company sold 38 million shares at $17.50 each; shares have gotten some more lift since then. Rattler is a pure-play Permian Basin midstream company backed by top-tier Permian Basin exploration-and-production pure-play Diamondback Energy ( FANG ). It provides Diamondback with crude oil, natural gas, and water-related midstream services. And Diamondback continues to hold 71%-75% of RTLR shares following the offering. Northland Securities' Jeff Grampp is optimistic about the company's prospects, writing: "RTLR has a strong organic growth outlook ... that we believe is relatively low-risk given FANG's operational track record, low-cost operations and healthy balance sheet." The key selling point for Rattler is its FANG exposure. As Grampp writes, this gives Rattler a relatively lower-risk growth profile versus its midstream peers, with growth supported by FANG's deep drilling inventory (around 25 years of Tier 1 locations). Dividend investors also have something to look forward to. As the analyst points out, Rattler currently pays a lucrative 5%-plus dividend yield with payout-growth potential too. RBC Capital's Tim Schultz says the premium valuation is keeping him on the sidelines, but nonetheless highlights the company's strong 2019 estimated production growth of 26%. Overall Rattler shows a cautiously optimistic "Moderate Buy" analyst consensus. What are other financial experts saying about this intriguing FANG subsidiary? Find out on TipRanks. SEE ALSO: 7 "Perfect 10" Stocks to Buy Now Beyond Meat Courtesy Beyond Meat Market value: $9.1 billion TipRanks consensus price target: $108.50 (28% downside potential) TipRanks consensus rating: Hold Fake-meat stock Beyond Meat ( BYND , $150.60) has enjoyed an eye-watering rally since its IPO. Shares have exploded by roughly 500% from its IPO price of just $25 per share - including a 163% initial pop that represented the best first day of trading for any company in nearly two decades. The result: Some lucky investors have reaped massive rewards, and short sellers have lost an eyewatering $560 million according to data analytics firm S3 Partners. But analysts think investors should avoid chasing the stock at this point. All seven analysts covering Beyond Meat rate the stock a "Hold," and the current price target implies a plunge of nearly 30% in coming months. Both Bernstein's Alexia Howard and JPMorgan's Kenneth Goldman recently downgraded BYND from "Buy" to "Hold." Howard is stepping to the sidelines "as the stock has traded in a highly volatile manner since its IPO likely due to its limited public float." She noted that the stock's enterprise-to-value sales relative to potential sales implied "limited upside potential from a valuation perspective." But Howard is optimistic about Beyond Meat's prospects. "We continue to expect significant growth potential in the plant-based meat category and believe that Beyond Meat is well positioned as one of the front-runners leading the new wave of plant-based meat products," she writes. Goldman's downgrade was a "purely valuation call." He had previously warned investors that he would downgrade the stock when BYND's valuation exceeded the company's "extraordinary" money-making potential, and "We think this day has arrived." Indeed, his $121 price target now suggests about 20% downside potential lies ahead. Discover how the overall price target breaks down on TipRanks here . SEE ALSO: 25 Small Towns With Big Millionaire Populations TransMedics Group Getty Images Market value: $590.6 million TipRanks consensus price target: $35.75 (28% upside potential) TipRanks consensus rating: Strong Buy TransMedics Group ( TMDX , $28.00) has created a groundbreaking portable device that maintains donor organs in a human-like state. In May, the company reaped $105 million after selling 6.55 million shares at $16, the midpoint of its targeted price range. This included an underwriters' option that was exercised in full. Shares subsequently gained 40% on the first trading day to close at $22.36. Analysts, who give it a consensus "Strong Buy" rating, think this could be just the start of the company's blockbuster story. "We initiate coverage of TransMedics with an Overweight rating and $34 December 2019 price target, as the company is set to revolutionize the organ transplant market using its Organ Care System, or OCS," writes top-rated JPMorgan analyst Robbie Marcus. The current standard of care uses the equivalent of an ice cooler for organ storage during transportation, and OCS is ready to disrupt this, Marcus says. Not only does it maintain the organs in a near-physiologic state, but it also allows doctors to optimize and assess the organs pre-implantation. Marcus anticipates a total market opportunity exceeding $7 billion for today's pipeline products alone. Cowen & Co.'s Joshua Jennings is even more optimistic on the size of the opportunity, writing, "We believe TransMedics is filling a unique white space in transplant medicine and creating an $8B market. With multiple clinical and operational catalysts on the horizon, we expect OCS adoption and utilization trends to soon hit an inflection point." See why other top analysts are also bullish on TransMedics . Harriet Lefton is head of content at TipRanks, a comprehensive investing tool that tracks more than 5,000 Wall Street analysts as well as hedge funds and insiders. You can find more of their stock insights here . SEE ALSO: The 11 Hottest IPOs to Watch For in 2019 EDITOR'S PICKS The 11 Hottest IPOs to Watch For in 2019 The 19 Best Stocks to Buy for the Rest of 2019 Hedge Funds’ 25 Favorite Blue-Chip Stocks Copyright 2019 The Kiplinger Washington Editors |
Hedge Funds Have Never Been This Bullish On American Superconductor Corporation (AMSC)
It seems that the masses and most of the financial media hate hedge funds and what they do, but why is this hatred of hedge funds so prominent? At the end of the day, these asset management firms do not gamble the hard-earned money of the people who are on the edge of poverty. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the future holds and how market participants will react to the bountiful news that floods in each day. The Standard and Poor’s 500 Index returned approximately 12.1% in the first 5 months of this year (through May 30th). Conversely, hedge funds’ top 20 large-cap stock picks generated a return of 18.7% during the same 5-month period, with the majority of these stock picks outperforming the broader market benchmark. Coincidence? It might happen to be so, but it is unlikely. Our research covering the last 18 years indicates that hedge funds' stock picks generate superior risk-adjusted returns. That's why we believe it isn't a waste of time to check out hedge fund sentiment before you invest in a stock like American Superconductor Corporation (NASDAQ:AMSC).
IsAmerican Superconductor Corporation (NASDAQ:AMSC)an exceptional investment right now? The smart money is taking a bullish view. The number of long hedge fund bets rose by 9 lately. Our calculations also showed that amsc isn't among the30 most popular stocks among hedge funds.AMSCwas in 16 hedge funds' portfolios at the end of March. There were 7 hedge funds in our database with AMSC positions at the end of the previous quarter.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
We're going to check out the latest hedge fund action encompassing American Superconductor Corporation (NASDAQ:AMSC).
At the end of the first quarter, a total of 16 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 129% from the previous quarter. The graph below displays the number of hedge funds with bullish position in AMSC over the last 15 quarters. With hedgies' capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
More specifically,Renaissance Technologieswas the largest shareholder of American Superconductor Corporation (NASDAQ:AMSC), with a stake worth $9.6 million reported as of the end of March. Trailing Renaissance Technologies was Millennium Management, which amassed a stake valued at $8.6 million. D E Shaw, GMT Capital, and Royce & Associates were also very fond of the stock, giving the stock large weights in their portfolios.
As one would reasonably expect, key money managers have been driving this bullishness.GMT Capital, managed by Thomas E. Claugus, assembled the biggest position in American Superconductor Corporation (NASDAQ:AMSC). GMT Capital had $6.7 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace'sMarshall Wace LLPalso initiated a $3 million position during the quarter. The other funds with brand new AMSC positions are Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capital, John Overdeck and David Siegel'sTwo Sigma Advisors, and Michael Platt and William Reeves'sBlueCrest Capital Mgmt..
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as American Superconductor Corporation (NASDAQ:AMSC) but similarly valued. We will take a look at Solar Senior Capital Ltd (NASDAQ:SUNS), Protective Insurance Corporation (NASDAQ:PTVCB), Neuronetics, Inc. (NASDAQ:STIM), and AcelRx Pharmaceuticals Inc (NASDAQ:ACRX). This group of stocks' market caps are similar to AMSC's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SUNS,2,851,1 PTVCB,7,27866,1 STIM,2,2767,-4 ACRX,11,9790,2 Average,5.5,10319,0 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 5.5 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $47 million in AMSC's case. AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) is the most popular stock in this table. On the other hand Solar Senior Capital Ltd (NASDAQ:SUNS) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks American Superconductor Corporation (NASDAQ:AMSC) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately AMSC wasn't nearly as popular as these 20 stocks and hedge funds that were betting on AMSC were disappointed as the stock returned -33.4% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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PepsiCo’s Aquafina water to be sold in aluminum cans
PepsiCois hoping the switch from plastic to aluminum packaging for their purified water will help save the planet.
The company announced Thursday it will begin selling Aquafina’s purified still water in aluminum cans at U.S. foodservice outlets starting next year while conducting a test for broader distribution. The food giant’s sparkling water brand Bubly will also switch to cans only and Lifewter will be in recycled plastic.
PepsiCo said the switch is expected to remove more than 8,000 metric tons of plastic and about 11,000 metric tons of greenhouse gas emissions.
"Tackling plastic waste is one of my top priorities and I take this challenge personally," PepsiCo Chairman and CEO Ramon Laguarta said in anews release. "As one of the world's leading food and beverage companies, we recognize the significant role PepsiCo can play in helping to change the way society makes, uses, and disposes of plastics.”
“We are doing our part to address the issue head-on by reducing, recycling and reinventing our packaging to make it more sustainable, and we won't stop until we live in a world where plastics are renewed and reused,” he said.
The move follows PepsiCo’s commitment to make all of its packaging recyclable, compostable or biodegradable by 2025. The company is also aiming to use only 25 percent of recycled content in all its plastic packaging.
One of the benefits of switching from plastic to aluminum is that people are more likely to recycle cans,Bloombergreported. About 67 percent of aluminum cans are recycled in the world, while about 91 percent of plastic goes to waste. Peter Gleick, Pacific Institute’s co-founder, told Bloomberg that aluminum cans only makes a marginal difference when it comes to helping the environment.
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“Whether it’s water in bottles that are especially biodegradable, or water in cans, it’s something that’s a little better than plastic but shouldn’t be done at all,” Gleick said. “Canned water is a marginal improvement over bottled water.”
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Dalai Lama Says Donald Trump Lacks 'Moral Principle'
Curious on who Donald Trump will attack in his next tweetstorm? The smart money is on the Dalai Lama . That’s because the 83-year-old Tibetan Buddhist leader called out the president as someone with a “lack of moral principle,” during a recent interview with the BBC . The big problem with the president, according to the Dalai Lama, is that his emotions as a “little bit too complicated.” “One day he says something, another day he says something, but I think lack of moral principle,” he said in the video above. Although the Dalai Lama said back in 2016 he had “no worries” about a Trump presidency, that seems to have changed. “When he became president he expressed America first. That is wrong,” the Dalai Lama said. The religious leader is concerned that Trump withdrew America from the Paris climate accord and about the way the president is handling the migrant crisis at the U.S.-Mexico border. “When I saw pictures of some of those young children, I was sad,” he said. “America ... should take a global responsibility.” But the Dalai Lama also pointed out that he appreciates Vice President Mike Pence’s support for the Tibetan people and the support he has received from politicians on both sides of the aisle. So far, the Dalai Lama has yet to meet Trump, and the president has not requested a meeting. However, as this clip from 2016 shows, the Buddhist leader has obviously studied Trump and does a fairly decent impression of him. Also on HuffPost This undated picture shows a painting by Kanwal Krishna dated probably in 1930s of a young Dalai Lama (Tenzin Gyatso, born in 1935), the traditional religious and temporal head of Tibet's Buddhist clergy. A speech by the 14th Dalai Lama, circa 1955. Jan. 21, 1957 at Palace Ground square, Kolkata, India: the Dalai Lama gives his blessing to a crowd gathered for a farewell ceremony. 1959: His Holiness the Dalai Lama, Tenzin Gyatso, seated on his throne and wearing the gold peaked cap which is his crown, smiles while giving an audience in Lhasa, Tibet. An assistant monk stands at his side. The Dalai Lama poses for a photo in October 1967 in India. In 1973, the Dalai Lama visited the SOS Children's Village of Hinterbrühl in Austria. In the photo, he stands by Hermann Gmeiner, the founder of SOS Children's Villages. Feb. 1974: the Dalai Lama officiates at the Kalachakra Initiation Ceremony held in Bodh Gaya (place of the Buddha) in the state of Bihar in northeastern India. The Dalai Lama poses with his wax portrait in the Grand Hall at Madame Tussaud's in November 1993 in London. The Dalai Lama brought a pair of his own glasses for the model on his one-day visit to London. The Dalai Lama at the Simon Wiesenthal Museum of Tolerance in Beverly Hills, California on Aug. 2, 1996. The Dalai Lama greets the media on Capitol Hill before meeting with congressional leaders on June 20, 2000 in Washington. The Dalai Lama appears at the University of California Los Angeles to give a public teaching May 26, 2001. The Dalai Lama takes part in a Hongi, a traditional Māori greeting in New Zealand, on on May 27, 2002. The Dalai Lama speaks during a press conference while visiting Frankfurt, Germany. Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost . |
Cipherloc Quantum-Safe Encryption Secures 3 SoundFi Movie Audio Releases
SCOTTSDALE, AZ / ACCESSWIRE / June 27, 2019 /Cipherloc Corporation (CLOK), a provider of highly secure, quantum-safe data protection technology, today announced launch of its first three movie audio soundtracks with SoundFi, a revolutionary "app based" audio technology platform delivering premium 360-degree sound through headphones in movie theaters. SoundFi offers both in-theater and streaming content experiences to consumers, providing the most personalized audio experience in the world.
Over the past three months, SoundFi has produced three theatrical movie audio releases that leverage the quantum-safe Cipherloc Polymorphic Encryption technology. Cipherloc keeps SoundFi's proprietary remixes of movie audio soundtracks safe at all points of the delivery process to consumers. The delivery process includes the SoundFi audio remix lab, cloud servers, and customer downloads of the audio soundtrack to mobile devices. Once downloaded, the SoundFi audio soundtrack is synchronized with the movie and played in theaters worldwide.
Additionally, this was the first year that SoundFi attended the CineEurope show, held every year at the CCIB (Centre de Convencions Internacional de Barcelona) in Barcelona, Spain. The convention brings all the major studios together with exhibitors (theaters), allowing studios to show their upcoming reels and demonstrate new technologies being made available to consumers.
SoundFi demonstrated the power of its immersive technology to all the major studios who attended the show as well as a large number of theater owners. A focal point for the studios was security and protection of proprietary content. The Cipherloc polymorphic security was demonstrated in-theater at CineEurope, and everyone who attended the multiple SoundFi demos downloaded the content to their own device. This gave attendees an opportunity to participate in a real-world demonstration of how the encrypted download works, including on-device decryption. All of the key partners who attended the SoundFi demos were made aware of the Cipherloc encryption protection and watermarking capabilities. The Cipherloc security measures are believed to be a key consideration for the major studios, which ultimately will lead to anticipated content commitments for SoundFi.
The recent theatrical releases include releases of two titles from Paramount Pictures and one title from Lionsgate:
• Wonder Park (Paramount): An animated title with 24 languages available for download including a special audio description track for visual and hearing-impaired guests. Commercially released in the UK
• Pet Sematary (Paramount): Are-release of the 1980's Steven King, SoundFi offers 12 languages available for download including an audio description track for visual and hearing-impaired guests. Commercially released in California, Arizona, multiple countries in Europe and the UK. Launch included pre-release events in Zurich and Berlin with co-sponsor Sennheiser headphones.
• John Wick 3 (Lionsgate): The third installment to the hit franchise series, SoundFi offered national release in US with 3 languages available for download and an audio description track for the visual and hearing impaired.
Additionally, the release of John Wick 3 leveraged Cipherloc Polymorphic Encryption solutions for data-at-rest, data-in-transition, and data on mobile devices for both Android and iOS.
Upcoming SoundFi theatrical releases include CRAWL, a new horror film from Paramount with plans to include 10 language offerings as part of a wide European release.
Said Dr. Milton Mattox, Chief Operating Officer of Cipherloc Corporation: "We are excited to advance our work with SoundFi as they leverage Cipherloc's unmatched Polymorphic Encryption technology to secure theatrical audio soundtracks across multiple countries. SoundFi's proprietary files are Cipherloc encrypted throughout their entire ecosystem to ensure safe delivery from the audio remix studio to a vast array of mobile devices worldwide. This partnership uniquely demonstrates Cipherloc's encryption technology capabilities in a commercial setting from development lab to consumer delivery and every point in between."
"Keeping our audio soundtrack files secure is one of the highest priorities at SoundFi," said Chris Anastas, Chief Executive Officer of SoundFi. "We chose Cipherloc because they take existing encryption algorithms like the Advanced Encryption Standard (AES) and make them both stronger and faster while supporting quantum safe protection across all points of our consumer-oriented ecosystem."
As previously announced, Cipherloc and SoundFi have signed a four-year contract including both license fees and residuals. The agreement represents Cipherloc's entry into the high value entertainment industry, where Cipherloc's Polymorphic Encryption Engine provides a valuable defense against piracy and theft of artistic property.
About Cipherloc Corporation (CLOK)
Cipherloc Corporation is a data security solutions company whose vision is simple – Protect the World's Data. Our highly innovative solutions are based on our patented Polymorphic Cipher Engine, which is designed to enable an ironclad layer of protection to be added to existing products, services, or applications. We deliver solutions that are highly secure, synergistic, and scalable. In short, we keep information safe in today's highly dangerous world. For further information, please go towww.Cipherloc.net.
About SoundFi
Based in Los Angeles and Scottsdale, AZ, and founded in 2014 by Chris Anastas, SoundFi delivers premium 360-degree sound, delivering the most immersive binaural audio movie experience in the world. The company's delivery path is through both in-theatre and streaming content experiences for consumers. SoundFi's technology works on your personal device and with the headphones you currently own. Available now on both iOS and Android. For more information about SoundFi, participating cinemas, and for upcoming titles available in the format, please visitwww.soundfi.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.
The information found in this Press Release does not and shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction based upon the information found in this Press Release.
CONTACT:
Investor Contact:Matt KrepsDarrow Associates Investor Relations214-597-8200mkreps@darrowir.com
SOURCE:Cipherloc Corporation
View source version on accesswire.com:https://www.accesswire.com/550144/Cipherloc-Quantum-Safe-Encryption-Secures-3-SoundFi-Movie-Audio-Releases |
This is how self-driving cars deal with double-parking
It's annoying, but when you drive up to an Uber car or delivery van that's double-parked, you deal with it. For self-driving cars, it's a more complicated moment.
Cruise, the self-driving car company backed by General Motors, is currently testing in San Francisco, where its autonomous Chevy Bolt cars regularly encounter a large number of cars parked in the middle of the lane. Everyday, the Cruise cars maneuver around double-parked vehicles, for a total of between 200 and 800 times altogether.
The cars can't just give up when this happens. So here's what they "think" through,according to Cruise. First they "look" around and figure out what's happening, then they plan what to do next, and finally, they decide how to potentially pull off those decisions.Read more...
More aboutCruise,Autonomous Vehicles,Self Driving Cars,Waymo, andTech |
5 Market-Beating Dividend ETFs of 1H
If there’s any equity ETF segment that almost always comes to investors’ rescue, then it is definitely dividend. This year too, the segment has been the silver lining in the cloud of uncertainty gathering mainly from trade tensions.
There were two main market movers in the first half of 2019 — U.S.-China trade relation and a dovish Fed. U.S.-China trade relation showed some signs of easing in the first quarter but flared up from May. And citing trade issues and sensing its impact on global growth, the Fed has also kept on dropping hints of policy easing by the end of this year. Not only the Fed, the ECB also harped on the same tune (read: ECB Considers Further Stimulus: ETFs to Top & Flop).
This has brought down bond yields materially. Yield on benchmark 10-year U.S. Treasury yield slipped to 2.05% on Jun 26 from 2.66% recorded at the start of the year, with the lowest half-yearly yield of 2% recorded on Jun 25. Some parts of the yield curve inverted this year on cues of recessionary fears.
The accommodative Fed does good for stocks as there will be more months of cheap money inflows. Among stocks, income-producing securities might do even better for investors in search of solid and steady current income. So, the past six months were favorable for dividend ETFs as central banks including the Fed have been dovish (read: 6 Dividend ETFs That Beat S&P 500 in the 10-Year Bull Run).
Also, given the volatility in the market owing to trade and geopolitical worries, investors rushed toward quality or value exposure. This is where some dividend ETFs shone and were able to beat the broader market.
Dividend ETF Winners
Against this backdrop, below we highlight a few dividend ETFs that beat the S&P 500 (up 16.2%) this year (as of Jun 26, 2019).
First Trust Dorsey Wright Momentum & Dividend ETFDDIV – Up 19.3%
The underlying Dorsey Wright Momentum Plus Dividend Yield Index is designed to track the overall performance of the 50 stocks with the highest dividend yield comprising the NASDAQ US Large Mid Index that still maintain high levels of relative strength. The fund yields 2.76% annually and charges 60 bps in fees.
ClearBridge Dividend Strategy ESG ETF YLDE –Up 19.3%
This ETF is active and does not track a benchmark. The fund is an actively managed strategy that seeks attractive income growth and capital appreciation over time by seeking to invest in dividend paying stocks with positive ESG attributes. It yields 2.18% annually and charges 60 bps in fees.
VictoryShares Dividend Accelerator ETF VSDA– Up 18.2%
The underlying Nasdaq Victory Dividend Accelerator Index forms a diversified portfolio of securities which are forecast to grow dividends. This calls for a more quality exposure. The fund yields 1.40% and charges 35 bps in fees.
First Trust NASDAQ Technology Dividend Index Fund TDIV –Up 17.2%
The underlying NASDAQ Technology Dividend Index includes up to 100 Technology and Telecommunications companies that pay a regular or common dividend. The fund charges 50 bps in fees and yields 2.40% annually.
Vanguard International Dividend Appreciation Index Fund ETF SharesVIGI–Up 17.2%
The underlying Nasdaq International Dividend Achievers Select Index focuses on high-quality companies located in developed and emerging markets, excluding the United States, that have both the ability and the commitment to grow their dividend over time. The fund charges 25 bps and yields 2.20% annually.
Bottom Line
Uncertainty still prevails in the market. The United States and China are to discuss at the G-20 meet and the OPEC is to decide on the renewal of the output cur agreement. The U.S.-Iran relation is also worsening. So, we can expect some more run for dividend ETFs, be it high-yielding and aristocrats in nature.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportFirst Trust NASDAQ Technology Dividend Index Fund (TDIV): ETF Research ReportsVanguard International Dividend Appreciation ETF (VIGI): ETF Research ReportsClearBridge Dividend Strategy ESG ETF (YLDE): ETF Research ReportsVictoryShares Dividend Accelerator ETF (VSDA): ETF Research ReportsFirst Trust Dorsey Wright Momentum & Dividend ETF (DDIV): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
At US$388, Is Charter Communications, Inc. (NASDAQ:CHTR) Worth Looking At Closely?
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Today we're going to take a look at the well-established Charter Communications, Inc. (NASDAQ:CHTR). The company's stock saw a decent share price growth in the teens level on the NASDAQGS over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on Charter Communications’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for Charter Communications
According to my valuation model, Charter Communications seems to be fairly priced at around 19% below my intrinsic value, which means if you buy Charter Communications today, you’d be paying a fair price for it. And if you believe the company’s true value is $481.21, then there isn’t much room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that Charter Communications’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Charter Communications’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
Are you a shareholder?CHTR’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor?If you’ve been keeping tabs on CHTR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth 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 Charter Communications. You can find everything you need to know about Charter Communications inthe latest infographic research report. If you are no longer interested in Charter Communications, 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. |
GBP/JPY Price Forecast – British pound rallies on Thursday
The British pound rallieda bit during the trading session on Thursday, reaching towards the ¥137 level. There is a lot of resistance between here and the ¥138 level so it makes sense that we could run into resistance rather soon. That being said, keep in mind that this is a highly sensitive pair when it comes to risk appetite so with the G 20 coming up it’s going to be difficult to hang onto gains I believe. At this point, it’s going to take some type of major situation to change things drastically. Ultimately, a lot of people will be cautious, so a pullback makes quite a bit of sense.
To the downside, the ¥136 level is a nice target. I don’t know if we break down below there though, because there is always going to be a certain amount of hope out there. I don’t expect much in the way of a conclusion to the US/China trade situation, at least not anytime soon. As long as that is going to be the case, I believe that short-term rallies that show signs of exhaustion will continue to be selling opportunities. The technical signal to start buying is above the ¥138 level. If we can break above there, then the market probably goes looking towards the ¥140 level. We are in a downtrend, so obviously it is easier to sell than it is to buy this market. Beyond that whole US/China trade tensions situation, let’s not forget the Brexit.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
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New Twitter Label Will Flag Violating Tweets From Trump, Other World Leaders
(Bloomberg) -- Twitter Inc. just created what may soon become a special Trump label.
U.S. President Donald Trump walks a fine line on Twitter, routinely posting comments that might get a lesser-known person suspended or locked out of their account for breaking the company’s user guidelines.
Twitter has never suspended Trump, though he often tweets insults at his political rivals and members of the media. When the president tweeted a not-so-veiled threat at North Korean dictator Kim Jong Un in September 2017, the company explained at the time that certain tweets -- presumably Trump’s -- are too newsworthy to take down.
On Thursday, Twitter announced a new plan that could soon apply to the president: It will now hide “controversial content or behavior which may otherwise violate our rules” behind a warning label that explains the tweet is against company guidelines, but has been left up because of a “legitimate public interest.” Users will need to click past the label to see the post, which will also be removed from certain sections of the app, like the explore tab and search. Twitter also said its software will try to limit the spread of these tweets on the social network.
A company spokeswoman said that the new label wasn’t initiated because of any one individual user, but the restrictions suggest otherwise: The label will only be used for verified accounts belonging to government officials, or those running for office, with more than 100,000 followers.
"By nature of their positions these leaders have outsized influence and sometimes say things that could be considered controversial or invite debate and discussion," Twitter wrote in a blog post. "A critical function of our service is providing a place where people can openly and publicly respond to their leaders and hold them accountable."
Trump has complained about Twitter on multiple occasions in recent months, including an accusation this week that the company is making it hard for people to follow his account, which has more than 61 million followers. With the 2020 U.S. presidential campaign cycle picking up quickly, it’s possible this feature may be put to use sooner rather than later.
(Updates to highlight the news in first paragraph.)
To contact the reporter on this story: Kurt Wagner in San Francisco at kwagner71@bloomberg.net
To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Molly Schuetz, Alistair Barr
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
GBP/USD Price Forecast – British pound fails to hang onto gains
The British poundinitially tried to rally during the trading session on Thursday but gave back the gains yet again. This is a market that can’t quite hang onto gains for the longer-term, and we obviously have a lot of resistance above at the 1.28 handle. The 50 day EMA is just above there as well, so keep in mind that it will probably keep this market somewhat, as well. Ultimately this is a market that I believe should continue to see a bit of volatility, but I think we will probably get a nice pull back to reach down towards the 1.26 level. After all, we have the G 20 this weekend and a lot of people will be concerned about owning anything along the lines of risk.
Beyond that, we also have the Brexit which of course causes a lot of issues, as it doesn’t seem to be able to be come to terms with. I think that we are trying to carve out some type of range in this area, with the 1.25 level underneath being massive support. However, if we do break above the 1.28 level, then it’s very likely that the 1.30 level would be the target. We need some type of good news to make that happen though, because the only thing that could be pushing this pair higher right now as the Federal Reserve looking to cut interest rates which is no minor thing.
Please let us know what you think in the comments below
Thisarticlewas originally posted on FX Empire
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A Look At The Intrinsic Value Of Charter Communications, Inc. (NASDAQ:CHTR)
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Charter Communications, Inc. (NASDAQ:CHTR) as an investment opportunity by taking the foreast future cash flows of the company and discounting them back to today's value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of theSimply Wall St analysis model.
View our latest analysis for Charter Communications
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF ($, Millions)", "2019": "$5.10k", "2020": "$6.95k", "2021": "$7.07k", "2022": "$8.16k", "2023": "$8.99k", "2024": "$9.65k", "2025": "$10.22k", "2026": "$10.73k", "2027": "$11.19k", "2028": "$11.62k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x15", "2020": "Analyst x13", "2021": "Analyst x4", "2022": "Analyst x4", "2023": "Analyst x3", "2024": "Est @ 7.31%", "2025": "Est @ 5.93%", "2026": "Est @ 4.97%", "2027": "Est @ 4.3%", "2028": "Est @ 3.83%"}, {"": "Present Value ($, Millions) Discounted @ 9.64%", "2019": "$4.65k", "2020": "$5.78k", "2021": "$5.36k", "2022": "$5.65k", "2023": "$5.68k", "2024": "$5.55k", "2025": "$5.37k", "2026": "$5.14k", "2027": "$4.89k", "2028": "$4.63k"}]
Present Value of 10-year Cash Flow (PVCF)= $52.70b
"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. 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 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 9.6%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$12b × (1 + 2.7%) ÷ (9.6% – 2.7%) = US$173b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$173b ÷ ( 1 + 9.6%)10= $68.87b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $121.57b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $481.21. Compared to the current share price of $388.24, the company appears about fair value at a 19% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the 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 Charter Communications as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.6%, which is based on a levered beta of 1.159. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Charter Communications, I've compiled three additional factors you should look at:
1. Financial Health: Does CHTR 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 CHTR'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 CHTR? 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 NASDAQ 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. |
Rosie O'Donnell, Bradley Whitford slam Donny Deutsch for saying Elizabeth Warren will never beat Trump
Donny Deutsch said he doesn't think Elizabeth Warren can beat Donald Trump — and people aren't happy with his assessment. (Photo: Getty Images) Donny Deutsch, the ad exec turned political pundit, said during MSNBC’s commentary following the Democratic debate on Wednesday that he doesn’t think Elizabeth Warren — or any other of the hopefuls onstage last night — could beat Trump in 2020. Now, he’s taking heat for the comment. Leading off with, “Don’t shoot the messenger,” the host of the network’s Saturday Night Politics with Donny Deutsch said, "If we're honest with ourselves and we look hard at ourselves, I think a lot of people agree with me. I also think when you can label somebody a socialist, 57 percent of this country thinks that word is un-American. I'm not saying it's fair. When he [Trump] can blanket Elizabeth Warren as a socialist and he's onstage with her, the Democrats lose." Behold Donny Deutsch and Lawrence O'Donnell engage in quite the cage match after Donny says he didn't see ANYONE in tonight's #DemDebate that could beat @realDonaldTrump right now pic.twitter.com/5yDGBU9p1c — Curtis Houck (@CurtisHouck) June 27, 2019 Lawrence O’Donnell, who was also on the panel, disagreed immediately. "Let's just identify this for what it is: pure guesswork a year-and-a-half away," the Last Word with Lawrence O'Donnell said. "And so it has, and Donny I say this respectfully, zero value... It's a wild guess, there's no science in it, there's nothing in it. You can put any name you want in the wild guess you just made and it doesn't make it true." The men went back and forth with Deutsch standing behind his statement, "It's understanding human behavior. And I guarantee you 90 percent of our audience agrees with me... I'm understanding Donald Trump – the way he's connecting with this country and the strength he exudes.” Story continues Deutsch’s comments are now the subject of much debate with many celebrities — including Rosie O’Donnell and The West Wing alum Bradley Whitford — strongly disagreeing. O’Donnell, who sported a Warren T-shirt on the red carpet earlier this week, wrote that Deutsch was flat “wrong” and that the Massachusetts senator “has it in her to shut Trump down.” well @DonnyDeutsch - you are wrong - elizabeth has it in her to shut trump down - america is onto him - biden is not the person to save democracy- warren is #warren2020 #msnbc — ROSIE (@Rosie) June 27, 2019 Whitford called out Deutsch’s “smug dismissal” of Warren — and pointed out the similarities in Trump and Deutsch’s backgrounds — born rich in Queens, worked for dad, attended Wharton Business School. Thank you @Lawrence for challenging @DonnyDeutsch ’s smug dismissal of @SenWarren . I might be wrong, but a Queens rich kid who went to Wharton because of his father’s success might not be the guy we want to take notes from right now. — Bradley Whitford (@WhitfordBradley) June 27, 2019 Yvette Nicole Brown wrote that Deutsch “declaring (as if it’s fact nonetheless) that” Warren “can’t beat a corrupt, racist, serial rapist says everything you need to know about dudes like him in America. They always think they alone have the answer. They’re wrong.” More importantly having someone like @DonnyDeutsch declaring (as if it’s fact nonetheless) that @ewarren can’t beat a corrupt, racist, serial rapist says everything you need to know about dudes like him in America. They always think they alone have the answer. They’re wrong. https://t.co/SPVX4Fl93K — yvette nicole brown (@YNB) June 27, 2019 Here are some other reactions — with several people calling him sexist. Donny Deutsch claims to understand the real America but the man owns a multi-million dollar six-story home in New York City and sold his property in the Hamptons for $30 million. https://t.co/8D7Vqc8r5w — Waleed Shahid (@_waleedshahid) June 27, 2019 Good for @Lawrence for calling out @DonnyDeutsch who has the political sense (and knowledge) of an Upper East Side retired advertising executive. Which means he has no sense and knowledge other than what hears and repeats on TV. https://t.co/oKnGNT1SJT — Yashar Ali 🐘 (@yashar) June 27, 2019 Let's be clear, when Donny Deutsch angrily says Warren wouldn't do well because we need a "stronger strength" on the debate stage with Trump, he means "a man." Calling these dog whistles for what they are. — Summer Brennan 🌈👠 (@summerbrennan) June 27, 2019 Dear @DonnyDeutsch : If you didn't see anyone on the #DemDebate stage who could beat Trump, you must have been asleep when #ElizabethWarren was talking. https://t.co/RtvW2YbkKO — Peter Daou (@peterdaou) June 27, 2019 Hey @DonnyDeutsch , GTFO: "I do not believe that Elizabeth Warren on stage with Donald Trump, beats him." "If we're being honest with ourselves, a lot of people agree with me." "We need to exude strength." "She doesn't have what it takes." THIS IS WHAT SEXISM LOOKS LIKE, @MSNBC — Jennifer Victor (@jennifernvictor) June 27, 2019 GOOD CHRIST PEOPLE CANCEL THE PRIMARY DONNY DEUTSCH DOESN'T THINK ELIZABETH WARREN CAN WIN — Greg Pinelo (@gregpinelo) June 27, 2019 Donny Deutsch is so bad at politics when he says something you don't walk you run to do the opposite. — Adam Best (@adamcbest) June 27, 2019 Deutsch did have support with his comments ... from Laura Ingraham. Have to say, @DonnyDeutsch is correct, if @ewarren is the nominee Trump wins easily. It’s about knowing how Trump relates to audiences, regular folks. — Laura Ingraham (@IngrahamAngle) June 27, 2019 Donald Trump and Donny Deutsch attend "Why We Want You to Be Rich: Two Men-One Message" by Donald Trump and Robert Kiyosaki in 2006. (Photo: Getty Images) There will be more Democratic debates tonight, slated for 9-11 p.m. EST, which will involve a different group of candidates, including Joe Biden, Pete Buttigieg, Kirsten Gillibrand, Kamala Harris and Bernie Sanders. Read more on Yahoo Entertainment: Pamela Anderson details alleged abuse by 'monster' Adil Rami: 'I needed to go to hospital because I was in so much pain' Beth Chapman, of 'Dog the Bounty Hunter' fame, dies at 51 ‘Jeopardy!’ fans and Alex Trebek shocked by super rare tiebreaker game Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle’s newsletter. |
Regtech Startup Coinfirm to Investigate XRP's Compliance With AML Provisions
Regulation technology startup Coinfirm will investigate how cryptocurrencyRipple(XRP) is being used, Forbesreportedon June 26.
San Francisco-based tech startup Ripple, which is largely behind XRP, has signed an agreement with Coinfirm, wherein the latter will explore XRP's compliance with anti-money laundering (AML) provisions.
Within the investigation, Coinfirm will reveal information such as whether XRP has been processed by a "mixer" — a technology developed to maketransactionsmore difficult to trace and therefore easier to laundercrypto— clustering, which enables a user to send small amounts of currency through many different addresses — as well as whether the funds come from a known theft or hack.
The move comes in the wake of the Financial Action Task Force’s (FATF)announcementfocused on digital currency’s role in money laundering and goals for heightened regulation released earlier in June.
The FATF is planning to strengthen control over cryptocurrency exchanges to preclude digital currencies from use in money laundering and related crimes.United StatesSecretary of the Treasury Steven Mnuchin said:
“By adopting the standards and guidelines agreed to this week, the FATF will make sure that virtual asset service providers do not operate in the dark shadows."
In January, crypto analytics firm Messaripublisheda report, alleging that XRP’s market capitalization could be overvalued by as much as $6 billion. The report stated that XRP’s liquid circulating supply could be overestimated by 48%, putting the “actual” market cap at $6.9 billion instead of the $13 billion reported on CoinMarketCap at the time.
• Crypto Markets Trade Sideways, Major Stock Indexes Close With Minor Gains
• Bitcoin Falls Under $10,800 as US Stock Market Sees Minor Uptrend
• Singaporean Exchange Bitrue Gets Hacked, Losing $5 Million in XRP, Cardano
• Bitcoin Falls Under $10,700 as Top Cryptos See Mixed Movements |
Exclusive: Nissan, Dongfeng in talks to form fleet-management venture with Didi - sources
By Norihiko Shirouzu
BEIJING (Reuters) - Nissan Motor Co and its China partner Dongfeng Group are in talks with Didi Chuxing to launch a joint venture to manage car fleets for Didi's ride-hailing and car-sharing services, five people familiar with the discussions told Reuters.
They are also exploring the possibility of the Nissan-Dongfeng venture designing and building vehicles tailored for Didi's ride-hailing service - cars which are likely to be battery-powered and eventually driverless, the people said.
A partnership would help the Japanese automaker meet China's production quotas for electric vehicles and plug-in hybrids, and would be similar to a venture that Volkswagen AG set up with Didi last year.
As part of the planned deal, Nissan's China joint venture would help manage fleets of gasoline-fuelled and electric cars in a dozen cities for Didi, the country's dominant ride-hailing firm. It would also help maintain and service the fleets, whose cars are leased to independent drivers.
Nissan's venture with Dongfeng Group would supply the vehicles although some cars may also come from Dongfeng's own brand, the people said, declining to identified as the talks were not public.
Nissan, Dongfeng and Didi declined to comment.
Three sources said the talks, underway since last year, were far along although one source warned that more scrutiny at both companies over how money is invested could delay finalising of the deal.
Nissan, which is grappling with a strained relationship with partner Renault SA after ousting their former chief Carlos Ghosn, has forecast a fourth straight year of steep profit decline for this financial year.
Didi is under pressure from investors to deliver a quicker and sounder route to profitability, separate sources familiar with the matter have said.
Meeting China's tough quotas for so-called new energy vehicles (NEVs) is proving a headache for automakers in China.
Convincing consumers of the merits of the electric cars is not easy, government subsidies for purchasing EVs are being rolled back and vehicle demand is slowing, with consumer sentiment also hit by the trade war with the United States.
"It is now common practice for automakers like Nissan to make sure they have some guaranteed sales volume for new-energy vehicles," said Yale Zhang, head of Shanghai-based consultancy Automotive Foresight.
Automakers such as Geely, SAIC, Dongfeng, Changan and FAW also have created car-sharing and ride-hailing services.
Under the planned deal, in congested cities where municipal governments have restricted the use of gasoline-fuelled cars, Nissan and Dongfeng would provide battery electric cars. Two sources said one model would likely be an all-electric version of the Nissan Sylphy sedan.
Other methods automakers can pursue to meet NEV production quotas include buying NEV credits from other carmakers with excess points, investing in or forming a venture with a Chinese EV startup or buying a car-sharing operator in China, sources at Nissan said.
They added that longer term, Nissan hopes the venture with Didi will provide invaluable insight into catering to consumers who opt out of car ownership and rely on ride-hailing and car-sharing services - a trend that is expected to gather steam as traffic jams in China's biggest cities get worse.
Didi's desire to have its own vehicles designed specifically for ride-hailing is something it has also discussed with Volkswagen as part of their separate joint venture, sources have said previously.
Such cars will likely look very different from vehicles used to commute today.
They would have little occasion to go at fast speeds so their engines could be much smaller, while other features preferred by car owners such as big wheels and sleek aerodynamic styling could be taken out or significantly modified. Since the cars would be mostly carrying one or two people at a time to work, they are likely to have fewer seats and more space for luggage, sources have said.
(Reporting by Norihiko Shirouzu; Editing by Edwina Gibbs) |
A Look At The Intrinsic Value Of Charter Communications, Inc. (NASDAQ:CHTR)
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Charter Communications, Inc. (NASDAQ:CHTR) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
Check out our latest analysis for Charter Communications
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$5.10k", "2020": "$6.95k", "2021": "$7.07k", "2022": "$8.16k", "2023": "$8.99k", "2024": "$9.65k", "2025": "$10.22k", "2026": "$10.73k", "2027": "$11.19k", "2028": "$11.62k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x15", "2020": "Analyst x13", "2021": "Analyst x4", "2022": "Analyst x4", "2023": "Analyst x3", "2024": "Est @ 7.31%", "2025": "Est @ 5.93%", "2026": "Est @ 4.97%", "2027": "Est @ 4.3%", "2028": "Est @ 3.83%"}, {"": "Present Value ($, Millions) Discounted @ 9.64%", "2019": "$4.65k", "2020": "$5.78k", "2021": "$5.36k", "2022": "$5.65k", "2023": "$5.68k", "2024": "$5.55k", "2025": "$5.37k", "2026": "$5.14k", "2027": "$4.89k", "2028": "$4.63k"}]
Present Value of 10-year Cash Flow (PVCF)= $52.70b
"Est" = FCF growth rate estimated by Simply Wall St
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.6%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$12b × (1 + 2.7%) ÷ (9.6% – 2.7%) = US$173b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$173b ÷ ( 1 + 9.6%)10= $68.87b
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 $121.57b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $481.21. Compared to the current share price of $388.24, the company appears about fair value at a 19% 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.
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 Charter Communications as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.6%, which is based on a levered beta of 1.159. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Charter Communications, I've compiled three pertinent aspects you should further research:
1. Financial Health: Does CHTR 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 CHTR'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 CHTR? 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 NASDAQ 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. |
Nevada Zinc Announces Positive Preliminary Economic Assessment Results for the Lone Mountain Zinc Project Including 40% Pre-Tax IRR - 35% After Tax IRR
Toronto, Ontario--(Newsfile Corp. - June 27, 2019) - Nevada Zinc Corporation (TSXV: NZN) ("Nevada Zinc" or the "Company") is pleased to announce the favourable results of an independent Preliminary Economic Assessment ("PEA") of the viability of potentially mining the zinc mineralization at the Company's 100% owned Lone Mountain Project ("Project") in central Nevada. The PEA highlights strong potential economics for a low cost, relatively simple, open pit zinc mine and floatation plant operating, producing, and selling zinc concentrate for 12 years based on the current Mineral Resources. The operating rate of the mine is planned to be a nominal 800 tonnes per day ("tpd"). Using a long term average zinc price of US $1.13 per pound and an 8% discount rate the Project generates a pre-tax Net Present Value ("NPV") of US $56.4 M ($75.2 M CDN) and a pre-tax 40% Internal Rate of Return ("IRR"). The after tax NPV (8%) is $43.2 M ($57.6 M CDN) and the after tax IRR is 35%. All currency is stated in USD unless indicated otherwise.
Table 1 - PEA Summary
[{"Parameters": "Pre-Tax IRR", "USD": "40%", "CAD": ""}, {"Parameters": "Pre-Tax NPV 8%", "USD": "$56.4 M", "CAD": "$75.2"}, {"Parameters": "After Tax IRR", "USD": "35%", "CAD": ""}, {"Parameters": "After Tax NPV 8%", "USD": "$43.2 M", "CAD": "$57.6 M"}, {"Parameters": "Payback Period (After Tax), (years)", "USD": "2.7", "CAD": ""}, {"Parameters": "Average Annual Zinc Production (lbs. contained)", "USD": "35.2 M", "CAD": ""}, {"Parameters": "Average Annual Zinc Payable (85%) (lbs. payable)", "USD": "30.0 M", "CAD": ""}, {"Parameters": "Pre-production Capex", "USD": "$25.7 M", "CAD": "$34.3 M"}, {"Parameters": "Mine Life (years)", "USD": "12", "CAD": ""}, {"Parameters": "Anticipated Mill Throughput (Average tpd)", "USD": "800", "CAD": ""}, {"Parameters": "Operating Days per Year", "USD": "347", "CAD": ""}, {"Parameters": "Mineral Resource Tonnage (tonnes)", "USD": "3,257,000", "CAD": ""}, {"Parameters": "Mineral Resource Grade", "USD": "7.57%", "CAD": ""}, {"Parameters": "Anticipated Process plant Recovery", "USD": "80%", "CAD": ""}, {"Parameters": "Anticipated Grade of Concentrate Produced", "USD": "45%", "CAD": ""}, {"Parameters": "Zinc Price for PEA Study (per pound)", "USD": "$1.13", "CAD": ""}, {"Parameters": "Foreign Exchange Rate (CAD/USD)", "USD": "0.75", "CAD": ""}]
PEA Cautionary Note
Readers are cautioned that the PEA is preliminary in nature and there is no certainty the results of the PEA as presented will ever be realized. Mineral Resources are not mineral reserves and do not have demonstrated economic viability. Additional work is required to upgrade the inferred mineral resources to mineral reserves.
Bruce Durham, President and CEO of Nevada Zinc commented on the announcement today: "The results in today's PEA confirm the Company is making good progress toward eventually turning this "grass roots discovery prospect", into a viable zinc producer. The PEA was envisioned as a low CAPEX project that could withstand cyclical commodity prices and that could be completed in the context of the current capital markets where access to large amounts of capital is simply not available to small companies. The scope of the PEA included new equipment and contract mining. While we know there is potential for the Lone Mountain zinc mineralization to be a quality feedstock for making value added zinc sulphate for the US fertilizer industry and we know our mineralization could potentially be leached using the Metsol non-acid leach technique to produce a value added zinc oxide product, we stopped short of inputting either of these value added scenarios into the PEA. We kept it simple. The assumptions in the PEA are that the mineralization would be mined in a single pit using a contract miner and that the mineralization would be concentrated using standard floatation techniques to make zinc concentrate that would be transported to a smelter for payment. As we progress beyond today's PEA we will be looking to better quantify the potential to garner more value from the rather unique zinc mineralization at Lone Mountain. The Project is located in a great jurisdiction close to a very supportive mining based community and based on the results to-date, Lone Mountain has the potential to create significant value for our shareholders." Mr. Durham further added: "There is also a lot of prospectivty at the Project. We have only drill tested a short portion of the 4 kilometre long structure and we have still not drilled deep enough to evaluate the potential for the Project to host significant zinc sulphide mineralization at depth."
Table 2 - Overview of the PEA Results
[{"": "", "Base Case (USD)": "", "Base Case (CAD)": ""}, {"": "Zinc Price $/lb", "Base Case (USD)": "$ 1.13", "Base Case (CAD)": ""}, {"": "$/tonne", "Base Case (USD)": "$2,500", "Base Case (CAD)": ""}, {"": "", "Base Case (USD)": "", "Base Case (CAD)": ""}, {"": "Net Cash Flow", "Base Case (USD)": "$106.7 M", "Base Case (CAD)": "$142.2 M"}, {"": "NPV @ 8%", "Base Case (USD)": "$ 56.4 M", "Base Case (CAD)": "$ 75.2 M"}, {"": "IRR", "Base Case (USD)": "40%", "Base Case (CAD)": ""}, {"": "", "Base Case (USD)": "", "Base Case (CAD)": ""}, {"": "Net Cash Flow", "Base Case (USD)": "$ 83.8 M", "Base Case (CAD)": "$111.7 M"}, {"": "NPV @ 8%", "Base Case (USD)": "$ 43.2 M", "Base Case (CAD)": "$ 57.6 M"}, {"": "IRR", "Base Case (USD)": "35%", "Base Case (CAD)": ""}, {"": "Payback Period", "Base Case (USD)": "2.7 years", "Base Case (CAD)": ""}]
Capital and Operating Cost Estimates
Table 3 - Initial and Sustaining Capital Costs (CAPEX)
[{"Area": "Mining (Contractor - mobilization)", "Start-up Capital ($ M)": "2.0", "Sustaining Capital ($ M)": "", "Total ($ M)": "2.0"}, {"Area": "Site Development/Infrastructure", "Start-up Capital ($ M)": "2.0", "Sustaining Capital ($ M)": "", "Total ($ M)": "2.0"}, {"Area": "Mineral Processing", "Start-up Capital ($ M)": "14.0", "Sustaining Capital ($ M)": "", "Total ($ M)": "14.0"}, {"Area": "Tailings Management Facility", "Start-up Capital ($ M)": "1.0", "Sustaining Capital ($ M)": "", "Total ($ M)": "1.0"}, {"Area": "Closure", "Start-up Capital ($ M)": "0.5", "Sustaining Capital ($ M)": "", "Total ($ M)": "0.5"}, {"Area": "Salvage Value", "Start-up Capital ($ M)": "(0.5)", "Sustaining Capital ($ M)": "", "Total ($ M)": "(0.5)"}, {"Area": "Contingencies (30%)", "Start-up Capital ($ M)": "5.7", "Sustaining Capital ($ M)": "", "Total ($ M)": "5.7"}, {"Area": "Owners' Costs", "Start-up Capital ($ M)": "1.0", "Sustaining Capital ($ M)": "", "Total ($ M)": "1.0"}, {"Area": "Sustaining Capital", "Start-up Capital ($ M)": "", "Sustaining Capital ($ M)": "2.2", "Total ($ M)": "2.2"}, {"Area": "Total", "Start-up Capital ($ M)": "25.7", "Sustaining Capital ($ M)": "2.2", "Total ($ M)": "27.9"}]
Table 4 - Operating Costs (OPEX)
[{"Area": "Open Pit Mining", "Cost per tonne of Mineralized Material ($)": "19.50", "Cost per unit": "$3.50/t Ore - $2.00/t Waste", "Unit": "per tonne mined"}, {"Area": "Crushing", "Cost per tonne of Mineralized Material ($)": "3.00", "Cost per unit": "", "Unit": "per tonne processed"}, {"Area": "Processing", "Cost per tonne of Mineralized Material ($)": "22.20", "Cost per unit": "", "Unit": "per tonne processed"}, {"Area": "G&A", "Cost per tonne of Mineralized Material ($)": "2.00", "Cost per unit": "", "Unit": "per tonne processed"}, {"Area": "All Included OPEX", "Cost per tonne of Mineralized Material ($)": "47.70", "Cost per unit": "", "Unit": "per tonne processed"}]
Note: PEA assumed that start-up working capital would be provided by concentrate purchaser on credit revolver basis.
The PEA was undertaken at the request of Bruce Durham, P.Geo., President and CEO of the Company and was prepared by Peimeng Ling and Associates Limited ("PL&A") in accordance with the requirements of NI-43-101 Standards of Disclosure for Mineral Projects ("NI-43-101"). Peimeng Ling, P.Eng. (MSc. Chemical Engineering), the principal author of the Technical Report, is an independant Qualified Person (as that term is defined by Canadian regulatory guidelines) in respect of the preparation of the PEA Technical Report discussed in this press release. Her experience includes over 35 years experience in the chemical and metallurgical processing field including project evaluation and project management.
Table 5 - Mineral Resource Estimate
[{"Cut-Off Zn %": "5%", "Tonnage(000's)": "1,989", "Pb%": "0.8", "Zn%": "10.05", "Zn M lb": "440"}, {"Cut-Off Zn %": "4%", "Tonnage(000's)": "2,473", "Pb%": "0.7", "Zn%": "8.97", "Zn M lb": "489"}, {"Cut-Off Zn %": "3%", "Tonnage(000's)": "2,931", "Pb%": "0.7", "Zn%": "8.12", "Zn M lb": "525"}, {"Cut-Off Zn %": "2%", "Tonnage(000's)": "3,257", "Pb%": "0.7", "Zn%": "7.57", "Zn M lb": "543"}, {"Cut-Off Zn %": "1%", "Tonnage(000's)": "3,534", "Pb%": "0.7", "Zn%": "7.09", "Zn M lb": "552"}]
Notes: Numbers in Table 5 are from P&E Mining Consultants Inc. report dated July 22, 2018 "Initial Mineral Resource Estimate and Technical Report on the Lone Mountain Property Eureka Nevada USA". A 2% NSR royalty is payable to the original property vendor on the majority of the Property. All material tonnes and metal values are undiluted. Mineral Resources are calculated assuming a 2% zinc cut-off. Mineral Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing or other relevant issues. Details of the Mineral Resource Estimate can be found in the technical report filed on SEDAR under the Companys' profile and dated September 7, 2018.
Mining
The mineralization on the Project extends to surface and is amenable to conventional open pit mining methods utilizing front end loaders and trucks. An optimized pit shell was constructed using indicative costs for the area, including $2.50/t mining costs for waste, $3.50/t mining costs for mineralized material, a zinc price of $1.25 per pound, process recovery of 85%, smelter payout of 85%, and smelter charges and freight of $200/t, in addition to processing costs of $20/t and G&A of $3.00/t. (P&E Mining Consultants Inc. 2018 see note above). Slight modifications were made to some of the parameters in light of additional investigations and results from additional metallurgical test work. The PEA established mining costs to be $2.00/t for waste and $3.50/t for mineralization. Process recovery was set at 80%, smelter payout was set as 85% and the achievable concentrate grade was determined to be 45% for the study while G&A was set at $2.00/t. No optimization of the planned mining of the deposit was carried out in the preparation of the PEA.
Table 6 - Processing Plant Feed Schedule
[{"Year": "1", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "2", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "3", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "4", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "5", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "6", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "7", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "8", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "9", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "10", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "11", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "12", "Total Process Plant Feed(tonnes 000's) Undiluted": "264", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "35.2", "Total Material Mined(tonnes 000's)": "2,373"}, {"Year": "13", "Total Process Plant Feed(tonnes 000's) Undiluted": "89", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "11.9", "Total Material Mined(tonnes 000's)": "837"}, {"Year": "Total", "Total Process Plant Feed(tonnes 000's) Undiluted": "3,257", "Zinc Grade(Mineral Resource Grade)": "7.57%", "Pounds of Zn Contained in Concentrate (M)": "434.3", "Total Material Mined(tonnes 000's)": "29,313"}]
Note: Total material mined values include all production from open pit mining (mineralization plus waste).
Processing
The Company and its consultants have been carrying out mineralogical and metallurgical investigations on the Project's non-sulphide mineralization since October 2015. Since that time the Company has completed thin section investigations, polished thin section work, Heavy Liquid Separation studies, whole rock dissolution using sulphuric acid, Tescan Integrated Mineral analyser tests, concentrate production tests using floatation techniques to concentrate the mineralization, as well as acid dissolution teswork on floatation concentrate and have also completed initial dissolution test work using the METSOL proprietary process on mineralized rock samples. The dissolution testwork on floatation concentrate material using sulphuric acid was designed to target the dissolution of the zinc minerals to produce a liquid comprised primarily of zinc sulphate. Zinc sulphate product was targeted as an end product that would ideally be an end product for use in the fertilizer or animal food businesses. The dissolution test work completed using the METSOL process was aimed at determining the viability of leaching zinc bearing rock without dissolving the associated calcite and dolomite to produce chemical grade zinc oxide.
The recoverable, and potentially payable mineralization on the Project is comprised of zinc oxide and carbonate and minerals, specifically smithsonite, hemimorphite and willemite with some overlap in the identification of the willemite and hemimorphite minerals. The main gangue minerals associated with the zinc mineralization have been identified as calcite, dolomite and minor quartz. Through the various investigations the smithsonite and hemimorphite/willemite were found to be moderately liberated at a grind size P80 of 600 microns, 57% and 72% respectively. Additional grinding was found to liberate more of the zinc mineralization.
Heavy Liquid Separation tests were completed by Met-Solve Laboratories of Vancouver and also more recently by SGS, Lakefield Ontario. Testing was completed on a variety of fraction sizes and at variable specific gravities (SG). The tests generated grade recovery curves showing good separation of the heavier zinc bearing mineralization.
Floatation test work was carried out at SGS, Lakefield Ontario. Initial test work showed 96% recoveries and produced concentrate with approximately 30% zinc content. Other tests that were completed as follow-up which produced zinc recoveries over 80% recovery and grading more than 40% zinc. Because the tests were preliminary and single batch tests only, it is reasonable to assume that a higher grade of concentrate, up to 45% could be produced with recovery of approximately 80% in more advanced testwork. Another bulk floatation test produced a 46% zinc concentrate with a 67.4% recovery. Again, the sample was a batch test only, so in a locked cycle environment it is considered reasonable that a 45% zinc concentrate could be produced at an 80% recovery rate.
As part of the plan by the Company to determine the best approach to maximize the value of the mineralization, the Company had SGS undertake leach test work using sulphuric acid to attempt leaching of the floatation concentrate. Test work by Outotec in 2016 showed the unconcentrated mineralization was readily leached however the high acid consumption rates would not allow the dissolution of raw mineralization to be a viable processing route. SGS completed 9 leach tests on various floatation concentrates. On the basis of the 9 tests, the conclusions were that in most of the tests, high zinc extraction was achieved. The method of acid addition seemed to have an effect on extraction of silicon. When acid was added slowly only limited silicon was dissolved (~5%).
A report by Metsol in March 2017 describing work completed by them reported the results of leaching of mineralized samples from the Project using the Metsol process, a non-acid leach technique. That work showed the mineralization had characteristics well suited for the leaching of mineralization to produce a zinc oxide product. Leach extraction was shown to be in the range of 80% to over 90% in the 6 samples processed. Post leaching roasting of the material produced a purity of 99.3%.
Table 7 - Sensitivity analysis NPV 8% Pre-Tax Base Case
[{"": "Value", "NPV": "10%", "IRR": "%"}, {"": "", "NPV": "", "IRR": ""}, {"": "221916", "NPV": "454852", "IRR": "354047"}, {"": "151311", "NPV": "354862", "IRR": "324048"}, {"": "2,8752,5002,125", "NPV": "834814", "IRR": "604019"}, {"": "8.7%7.57%6.4%", "NPV": "734824", "IRR": "544026"}]
Infrastructure
The Project is ideally located in east central Nevada, approximately 28 kilometres to the northwest of Eureka Nevada, a mining focused area that continues to be supportive of mining development. Highway 50 which provides the main access between Reno Nevada and Eureka passes along the southern boundary of the Project and a year round county maintained road provides access to the eastern part of the Project. Existing unmaintained roads provide access to the planned area of operations.
Two mining operations have recently been permitted in the area. Since being permitted in 2018, McEwen Mining Inc. has constructed and recently declared commercial production at its' Gold Bar Project approximately 25 km to the northwest of the Project and General Moly, Inc. has completed permitting of its Mount Hope Molybdenum Project located 25 kilometre to the north of the Project.
High voltage power transmission lines are located just to the south of the Project near Highway 50. The PEA contemplates generating power using diesel power. The determination was made that a single 1.5 MW diesel generator is sufficient to provide the power needed for the operation as planned in the PEA. A back-up generator is also included in the plan. Further planned power supply studies include the possibility of using LNG as a fuel for generated power. Primary power generation will be located in proximity to the grinding facilty in order to minimize power line requirements.
Water required for operations and general site purposes would be be supplied by local well sites located as close as possible to the plant location. No plan has been developed on the location of available wells or water rights. The Company has engaged in initial reviews of the possibilities for water rights and will continue the investigation of available water near the project site.
Permits
The Project is located on public BLM lands and patent land. To-date the Company has disturbed less than 5 acres and in order to increase the footprint of disturbance the Company will require a Exploration Plan of Operations (PoO). Mining and exploration activities included in the PoO will require items such as a description of surface disturbance activities, preliminary design reports and a description of waste rock, ore, spent heap and ground water characterization. A Reclamation Plan describing the construction and closure of each facility with the associated bond cost estimate as applicable is also required. Future activities creating more than five acres of disturbance will also require that the BLM perform an appropriate National Environmental Policy Act analysis (NEPA), likely an Environmental Assessment. The NEPA analysis assesses the potential for impacts to all resources from the proposed project. No survey work has been initiated at this time although plans are being made to undertake the work.
Additional information about the Company is available on the Company's website:www.nevadazinc.com
Bruce Durham P.Geo, President and CEO of Nevada Zinc, is a Qualified Person, as that term is defined by Canadian regulatory guidelines under National Instrument 43-101, and has read and approved the technical information contained in this press release.
The PEA Technical Report on which this press release is based will be posted on the Companys' website and on SEDAR within 45 days of this release. Some numbers in this release are rounded and therefore some discrepancies may be present in the totals shown.
The Company announces that Allen Ezer has resigned as a director of the Company to pursue other opportunities. The Company thanks Allen for his years of service and wishes him the best in his new ventures.
For further information contact:
Nevada Zinc CorporationSuite 1660 141 Adelaide St. WestToronto, Ontario M5H 3L5Tel: 416-504-8821
Bruce Durham, President and CEObdurham@nevadazinc.com
www.nevadazinc.com
Caution Regarding Forward-Looking Statements
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
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 news release.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45955 |
Here's Why Aclaris Therapeutics Stock Collapsed Today
Shares ofAclaris Therapeutics(NASDAQ: ACRS)fell over 49% today after the company reported that one of itsmost important drug candidates, ATI-502, failed to meet primary and secondary endpoints in a phase 2 trial. The topical treatment was being studied in alopecia areata, also called male (or female) pattern baldness.
The mid-stage trial evaluated two groups of patients: those applying a topical containing ATI-502 and those applying an identical topical without ATI-502. The latter is called the vehicle group, which is akin to the placebo group. Strangely, a high number of patients applying the vehicle achieved disease resolution, which is what kept the drug candidate from achieving statistical significance in comparison.
As of 12:35 p.m. EDT, the stock had settled to a 48.5% loss.
Image source: Getty Images.
Today's news isn't being taken lightly by investors -- and for good reason. As it turns out, comparator arms in clinical trials evaluating topical drug candidates are called "vehicles" instead of "placebos" because the vehicle actually increases the delivery and efficacy of active pharmaceutical ingredients.
The results of the latest study suggest ATI-502 might not be the thing in the drug formulation that's promoting hair regrowth in individuals. The results also throw cold water on data from a separate phase 2 trial announced 10 days ago, which showed ATI-502 triggered an average of 15.3 hairs per square centimeter for women and 5.6 hairs per square centimeter for men. However, that was an open-label trial, meaning there wasn't anything to compare it to.
Aclaris Therapeutics will have to figure out how to regroup from the recent results. Will that require additional clinical studies? Is the company's approach of using topical Janus kinase (JAK) inhibitors doomed to fail? It's too soon to say, but it's never a great sign when the placebo outshines your drug candidate.
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Maxx Chatskohas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
China footwear retail unit files for Hong Kong IPO to raise $1 billion
HONG KONG (Reuters) - Chinese footwear retailer Belle International filed plans on Thursday to spin off its sportswear business via a Hong Kong initial public offering, a deal which two sources with knowledge of the matter said could raise $1 billion.
The company aims to list the unit Topsports International Holdings Ltd, a large Chinese distributor and retail partner of foreign brands Nike Inc and Adidas, in the second half of the year, said the sources.
The move comes two years after a consortium led by Hillhouse Capital Group and CDH Investments took Belle private in a $6.8 billion deal completed in July 2017, as traditional retailers battled online competition.
TopSports did not immediately respond to Reuters' request for comment on its IPO plans. The sources declined to be named as they were not authorized to talk to the media.
The Hong Kong market is beginning to see a rise in IPO activity, with the world's biggest brewer Anheuser-Busch InBev likely to launch the Hong Kong float of its Asian business, which could raise at least $5 billion, next month.
Hong Kong is lagging behind the New York Stock Exchange and Nasdaq in raising capital via IPOs this year, with $8.06 billion raised as of mid-June compared with a combined $28.2 billion raised by the U.S. exchanges, Refinitiv data showed.
Established in 1991, Belle produces shoes under its own brands such as Belle and Staccato, and distributes other foreign labels such as Puma, Converse, Timberland and The North Face.
Belle's unit Topsports is the largest sportswear retailer in China in terms of retail sales value, with a 15.9% market share in 2018, the company said in its IPO prospectus, citing consultant Frost & Sullivan.
Topsports' revenue increased 22.4% last year to 26.5 billion yuan ($3.85 billion), while gross profit rose nearly 18% to 11 billion yuan, it said in the prospectus.
It plans to use some of the IPO proceeds for technology, hiring staff, purchasing equipment and upgrading its directly operated stores. Its nationwide retail network included 8,343 such stores as of end-February.
Bank of America Merrill Lynch and Morgan Stanley are the joint sponsors for the float.
($1 = 6.8762 Chinese yuan renminbi)
(Reporting by Julie Zhu; Editing by Sumeet Chatterjee and Jan Harvey) |
Are Team, Inc.'s (NYSE:TISI) Interest Costs Too High?
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Investors are always looking for growth in small-cap stocks like Team, Inc. (NYSE:TISI), with a market cap of US$455m. However, an important fact which most ignore is: how financially healthy is the business? Since TISI is loss-making right now, it’s essential to assess the current state of its operations and pathway to profitability. We'll look at some basic checks that can form a snapshot the company’s financial strength. However, this is just a partial view of the stock, and I recommend youdig deeper yourself into TISI here.
TISI's debt levels surged from US$383m to US$427m over the last 12 months , which accounts for long term debt. With this increase in debt, the current cash and short-term investment levels stands at US$15m to keep the business going. Additionally, TISI has generated cash from operations of US$47m over the same time period, resulting in an operating cash to total debt ratio of 11%, signalling that TISI’s operating cash is less than its debt.
Looking at TISI’s US$153m in current liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.18x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Commercial Services companies, this is a reasonable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
With a debt-to-equity ratio of 81%, TISI can be considered as an above-average leveraged company. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. Though, since TISI is presently unprofitable, there’s a question of sustainability of its current operations. Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.
TISI’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 TISI'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 TISI has company-specific issues impacting its capital structure decisions. I suggest you continue to research Team to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for TISI’s future growth? Take a look at ourfree research report of analyst consensusfor TISI’s outlook.
2. Valuation: What is TISI 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 TISI 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. |
Twitter to start publicly flagging politicians' abusive tweets
EvenTwitter, it seems, issickofTwitter.
On Thursday, the San Francisco-based tech giant announced anew planintended to blunt the impact of tweets from politicians and government officials that violate its policies while still leaving the problematic content on the platform. It's a difficult needle to thread, but Twitter clearly believes it's found a solution that serves the public interest.
Here's how it will work: When a politician tweets something that would normally get pulled for violating Twitter's rules, the company will now mark the tweet with a label explaining why it deems the content problematic. Twitter will also, among other steps, keep the tweet in question out of its algorithmically controlled Top Tweets timeline in an effort to reduce its spread.Read more...
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Swiss-based Glencore takes controlling stake in PolyMet mine
ST. PAUL, Minn. (AP) — Swiss-based global commodities giant Glencore AG says it's taking a 72% stake in PolyMet Mining, gaining majority control over what's slated to become Minnesota's first copper-nickel mine. PolyMet announced Thursday that Glencore's stake will rise from 29 percent after the completion of a stock offering to shareholders that cleared its balance sheet of debt. Glencore has long been the largest investor in the planned open-pit mine near Babbitt in northeastern Minnesota. PolyMet is formally based in Toronto but is run from St. Paul with operational headquarters at the processing plant site near Hoyt Lakes. The company received the last federal permit it needed in March, after securing its state permits last year, and is now raising close to $1 billion in construction financing. Environmental groups are challenging the project in court. |
How Buffalo Wild Wings plans to magically transform into America's greatest sports bar
Bring on dat’ hand-breaded chicken wing, B-Dubs.
The onetime struggling chicken wing joint scooped up by Inspire Brands for only $2.9 billion in 2017 is about to enter the next phase in its turnaround plan, Yahoo Finance has learned. Buffalo Wild Wings executives tell Yahoo Finance it continues to pare down its once-bloated menu and reinvest the savings in items that position the brand as the “great American sports bar.”
In are giant chicken sandwiches slathered with sauce and topped with coleslaw — served of course on the square metal plates synonymous with pub grub. Out are shrimp and several slow-moving cocktails on the menu. In later this year are hand-battered chicken wings opposed to the frozen ready-to-use product Buffalo Wild had used.
Buffalo Wild Wings’ new head chef Jamie Carawan — a bearded veteran of the pub scene — tells Yahoo Finance breading chicken wings by hand is old-school and won’t add much more to the wait time. The product should taste better, too.
The company will also return to its original buffalo wing sauce used years ago. Carawan says he may even begin experimenting with cheese boards at B-Dubs.
Carawan acknowledges the brand fell hard in recent years as it focused on cutting costs in what has been a challenging casual dining space. But that is no more.
The changes at Buffalo Wild began a few months back.
Some of them were as simple as using copper cups for certain cocktails as well as new uniforms and training for servers. Both of which are meant to upgrade a dining experience that deteriorated under prior management and led to the chain’s sale.
Amid pressured sales and profits for much of 2016 and 2017, Buffalo Wild Wings found activist investor Marcado Capital calling in 2017. The activist investor pushed long-time Buffalo Wild Wings management to sell off the restaurants it owned to boost cash and overhaul its flagging operations. Buffalo Wild Wings executives were resistant to both and with its stock price under pressure, the company decided to sell to Roark Capital-backed Arby’s in late 2017.
Inspire Brands CEO Paul Brown and his team have since been working to figure out who the core Buffalo Wild Wings customer is and how best to serve them. That’s in addition to retraining workers and bolstering operations, since nobody wants to wait 30 minutes for wings on game day (slow service has been a problem). Brown conceded in an interview earlier this year the turnaround at Buffalo Wild Wings will take time.
The next logical step for Inspire Brands — with Arby’s doing well and Buffalo Wild Wings’ revival progressing — is to maximize value via an initial public offering. It could also be good timing for an IPO with upcoming initiatives to jolt up Sonic, which Inspire bought in September 2018 for $2.3 billion.
But it might make sense to hold off on an IPO. It’s best to pitch a vibrant, successful turnaround story to potential investors as opposed to one where everything isn’t yet firing on all 12 cylinders.
Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter@BrianSozzi
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Here’s What Hedge Funds Really Think About Red Rock Resorts (RRR)
Hedge fund interest inRed Rock Resorts, Inc. (NASDAQ:RRR)shares was flat at the end of last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Corporate Office Properties Trust (NYSE:OFC), Louisiana-Pacific Corporation (NYSE:LPX), and Tenable Holdings, Inc. (NASDAQ:TENB) to gather more data points.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
[caption id="attachment_747408" align="aligncenter" width="473"]
Paul Reeder of PAR Capital[/caption]
We're going to review the fresh hedge fund action surrounding Red Rock Resorts, Inc. (NASDAQ:RRR).
At the end of the first quarter, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. By comparison, 21 hedge funds held shares or bullish call options in RRR a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically,Diamond Hill Capitalwas the largest shareholder of Red Rock Resorts, Inc. (NASDAQ:RRR), with a stake worth $162.6 million reported as of the end of March. Trailing Diamond Hill Capital was Lomas Capital Management, which amassed a stake valued at $66.6 million. PAR Capital Management, Serengeti Asset Management, and Marshall Wace LLP were also very fond of the stock, giving the stock large weights in their portfolios.
Because Red Rock Resorts, Inc. (NASDAQ:RRR) has experienced bearish sentiment from the entirety of the hedge funds we track, it's easy to see that there was a specific group of funds that elected to cut their positions entirely in the third quarter. It's worth mentioning that D. E. Shaw'sD E Shawsaid goodbye to the biggest investment of all the hedgies tracked by Insider Monkey, totaling about $7.9 million in call options, and Anthony Joseph Vaccarino's North Fourth Asset Management was right behind this move, as the fund dumped about $2.6 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Red Rock Resorts, Inc. (NASDAQ:RRR) but similarly valued. These stocks are Corporate Office Properties Trust (NYSE:OFC), Louisiana-Pacific Corporation (NYSE:LPX), Tenable Holdings, Inc. (NASDAQ:TENB), and Houlihan Lokey Inc (NYSE:HLI). This group of stocks' market caps resemble RRR's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position OFC,12,156974,-11 LPX,28,461781,-3 TENB,20,153935,5 HLI,14,132102,-4 Average,18.5,226198,-3.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 18.5 hedge funds with bullish positions and the average amount invested in these stocks was $226 million. That figure was $378 million in RRR's case. Louisiana-Pacific Corporation (NYSE:LPX) is the most popular stock in this table. On the other hand Corporate Office Properties Trust (NYSE:OFC) is the least popular one with only 12 bullish hedge fund positions. Red Rock Resorts, Inc. (NASDAQ:RRR) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately RRR wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); RRR investors were disappointed as the stock returned -15.4% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Should You Investigate Chorus Aviation Inc. (TSE:CHR) At CA$7.75?
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Chorus Aviation Inc. (TSE:CHR), which is in the airlines business, and is based in Canada, received a lot of attention from a substantial price movement on the TSX over the last few months, increasing to CA$7.92 at one point, and dropping to the lows of CA$7.16. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Chorus Aviation's current trading price of CA$7.75 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Chorus Aviation’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Chorus Aviation
According to my relative valuation model, the stock seems to be currently fairly priced. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 11.57x is currently trading slightly below its industry peers’ ratio of 16.08x, which means if you buy Chorus Aviation today, you’d be paying a fair price for it. And if you believe Chorus Aviation should be trading in this range, then there isn’t much room for the share price grow beyond where it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Chorus Aviation’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
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. Chorus Aviation’s earnings over the next few years are expected to increase by 45%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?CHR’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 CHR? 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 CHR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic forecast is encouraging for CHR, 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 Chorus Aviation. You can find everything you need to know about Chorus Aviation inthe latest infographic research report. If you are no longer interested in Chorus Aviation, 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. |
How Do Tandy Leather Factory, Inc.’s (NASDAQ:TLF) Returns On Capital Compare To Peers?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today we'll look at Tandy Leather Factory, Inc. ( NASDAQ:TLF ) and reflect on its potential as an investment. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. First, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. Last but not least, we'll look at what impact its current liabilities have on its ROCE. Return On Capital Employed (ROCE): What is it? ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. All else being equal, a better business will have a higher ROCE. In brief, it is a useful tool, but it is not without drawbacks. Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' So, How Do We Calculate ROCE? 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 Tandy Leather Factory: 0.075 = US$4.8m ÷ (US$72m - US$8.0m) (Based on the trailing twelve months to March 2019.) So, Tandy Leather Factory has an ROCE of 7.5%. View our latest analysis for Tandy Leather Factory Does Tandy Leather Factory Have A Good ROCE? One way to assess ROCE is to compare similar companies. In this analysis, Tandy Leather Factory's ROCE appears meaningfully below the 11% average reported by the Specialty Retail industry. This could be seen as a negative, as it suggests some competitors may be employing their capital more efficiently. Separate from how Tandy Leather Factory stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. Investors may wish to consider higher-performing investments. Story continues Tandy Leather Factory's current ROCE of 7.5% is lower than its ROCE in the past, which was 18%, 3 years ago. This makes us wonder if the business is facing new challenges. The image below shows how Tandy Leather Factory's ROCE compares to its industry, and you can click it to see more detail on its past growth. NasdaqGM:TLF Past Revenue and Net Income, June 27th 2019 When considering this metric, keep in mind that it is backwards looking, and 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. How cyclical is Tandy Leather Factory? You can see for yourself by looking at this free graph of past earnings, revenue and cash flow . How Tandy Leather Factory's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counteract this, we check if a company has high current liabilities, relative to its total assets. Tandy Leather Factory has total assets of US$72m and current liabilities of US$8.0m. As a result, its current liabilities are equal to approximately 11% of its total assets. This very reasonable level of current liabilities would not boost the ROCE by much. Our Take On Tandy Leather Factory's ROCE If Tandy Leather Factory continues to earn an uninspiring ROCE, there may be better places to invest. But note: make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a P/E ratio below 20). If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
When Should You Buy Telaria, Inc. (NYSE:TLRA)?
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Telaria, Inc. (NYSE:TLRA), which is in the software business, and is based in United States, saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Telaria’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Telaria
Great news for investors – Telaria is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $14.8, but it is currently trading at US$7.49 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Telaria’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In the upcoming year, Telaria’s earnings are expected to increase by 73%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?Since TLRA is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on TLRA for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TLRA. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Telaria. You can find everything you need to know about Telaria inthe latest infographic research report. If you are no longer interested in Telaria, 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. |
Firms that frustrate borrowers with baffling credit scores targeted by watchdogs
Borrowers frustrated by “black box” credit scores could be given greater rights after the City regulator announced a review of the industry.
Credit reference agencies, of which Experian and Equifax are the best known, gather information about consumer finances which can then be checked when someone applies for a loan or credit card.
They track a person’s history of paying bills on time, with defaults often making it harder for an individual to borrow money or get accepted for a credit card or mortgage.
They are alsonotoriously hard to decode, with firms quick to cite data protection when rejecting an application.
The Financial Conduct Authority (FCA) announced this morning it will review the market to determine how it can better work for consumers, particularly those who are vulnerable. It said four in five hold some form of credit or loan.
Errors made by credit reference firms can have a drastic impact on a person’s score which can be hard to rectify.
In one previously reported case a consumer was unable to obtain a mortgage thanks to a black mark on her credit report relating to a supposed £10 default on a mobile phone contract, despite her never having been a customer of the firm in question.
Financial complaints service Resolver received more than 2,000 complaints about credit reference agencies last year and 20,000 in the past five years.
Christopher Woolard, a director at the FCA, said: “Through the study we will seek to get a better understanding of how this vital market works and will identify remedies, where appropriate, to make it work more effectively for credit information users and individual consumers.
“This includes considering whether vulnerable customers are disproportionately affected by the way credit information is used, and whether any alternative approaches might deliver better outcomes for consumers.”
Gareth Shaw, from Which?, said many are confused by their credit score and the lack of transparency could lead to frustration.
He added: “The big credit reference agencies must work harder to encourage consumers to check their credit reports regularly, and lenders should also strive to be clearer about which agencies they use to assess credit applications so consumers can investigate and challenge any potential errors if they are rejected.”
James Jones, head of consumer affairs at Experian, welcomed the FCA review. He said: “We are proud to put the consumer at the very heart of our business and are committed to continue our significant investment in innovative new programmes and technologies to help keep credit reporting fair, responsible, accurate and transparent.”
Patricio Remόn, of Equifax, said: “It is vital that the credit information market works well and helps protect vulnerable consumers, improve financial inclusion and ensure people can access appropriate financial products.”
A spokesman for TransUnion, another reference agency, said: “As a business, we consistently strive to improve and enhance our offering, so we fully support this initiative and are working closely with the FCA to provide information for the market study.”
Equifax courted controversy in 2017 after a data breach led to the personal details of 145 million people in America to be leaked. The firm blamed weaknesses to internal software.
For the week's most important personal finance news, analysis and expert advice, from pensions and property to investment ideas and savings tips, sign up to ourweekly newsletter. |
Rite Aid (RAD) Incurs Loss in Q1, Revenues Decline Y/Y
Rite Aid CorporationRAD incurred first-quarter fiscal 2020 adjusted loss from continuing operations of 14 cents per share against the Zacks Consensus Estimate of earnings of 2 cents. In the year-ago quarter, the company reported adjusted earnings of 2 cents per share.Notably, the bottom line was hurt by a decline in adjusted EBITDA coupled with higher income tax expenses, somewhat offset by lower depreciation and amortization expense as well as lease termination and impairment charges.Management stated that quarterly results lagged expectations owing to prescription reimbursement rate pressure in the Retail Pharmacy Segment. Also, margin compression in the company’s Pharmacy Services Segment weighed on the company’s performance.However, operating efficiency in the Retail Pharmacy Segment along with higher Medicare Part D revenues and prescription count sales growth remain impressive. Management is also optimistic about its drug purchasing agreement with McKesson Corporation (MCK), which is likely to reinforce the company’s Retail Pharmacy business. Additionally, this Zacks Rank #2 (Buy) company remains confident about its ‘Path to the Future’ transformation initiative. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Q1 in DetailRevenues dipped 0.3% to $5,372.6 million, almost in line with the Zacks Consensus Estimate. During the quarter, the Retail Pharmacy segment revenues slipped 0.8% owing to lower store count, somewhat offset by higher same store sales. At the Pharmacy Services segment, revenues edged up 1.5% owing to higher Medicare Part D revenues.Retail Pharmacy same-store sales inched up 1.4% owing to a 2.3% rise in pharmacy sales and 0.3% decrease in front-end sales. Excluding cigarettes and tobacco products, front-end same store sales inched up 0.3%. Pharmacy sales included a negative impact of nearly 207 basis points (bps) from the introduction of new generic drugs. Further, prescription count at same store sales rose 3.7%. Prescription sales constituted 66.9% of total drugstore sales. Notably, the company delivered the fourth straight quarter of same-store prescription count growth.
Rite Aid’s adjusted EBITDA fell 20.1% year over year to $110.3 million, with adjusted EBITDA margin contraction of 50 bps to 2.1%. This downturn was due to lower adjusted EBITDA at the Retail Pharmacy and Pharmacy Services segments, offset by improvement in adjusted EBITDA selling, general and administrative (“SG&A”) expenses. Improvement in SG&A was due to reduction in salaries and benefits, more than offset the decrease in Transition Services Agreement (TSA) fee income from Walgreens Boots Alliance WBA.Further, adjusted EBITDA at the Retail Pharmacy Segment totaled $84 million, depicting a 19.2% decline from the prior-year quarter. At the Pharmacy Services Segment, the metric amounted to $26.3 million, reflecting 22.4% decline.Store UpdateRite Aid remodeled 27 stores in the fiscal first quarter, bringing the company’s total wellness-store count to 1,787. Moreover, it opened one while shuttered 4 stores, taking the total store count to 2,466 as of Jun 1, 2019.Financial StatusRite Aid ended the quarter with cash and cash equivalents of approximately $190.5 million, long-term debt (net of current maturities) of $3,582 million and total shareholders’ equity of $1,035.2 million.Further, the company used cash from operating activities of $51.2 million in the fiscal first quarter.OutlookRite Aid, which shares space with Herbalife Nutrition Ltd. HLF, reaffirmed its outlook for fiscal 2020. This view includes the assumption of persistent decrease in prescription reimbursement rates, somewhat compensated with higher prescription count coupled with improvements in drug costs and SG&A expenses.Rite Aid continues to project sales of $21.5-$21.9 billion for fiscal 2020 along with same store sales growth projection of 0-1% over fiscal 2019. Moreover, the company still anticipates adjusted EBITDA to be between $500 million and $560 million for fiscal 2020.Further, it estimates net loss of $170-$220 million. Management envisions the bottom line between adjusted loss of 14 cents and earnings of 72 cents per share. Capital expenditures are likely to be roughly $250 million.Breakout Biotech Stocks with Triple-Digit Profit PotentialThe biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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Click to get this free reportWalgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis ReportDiplomat Pharmacy, Inc. (DPLO) : Free Stock Analysis ReportHerbalife LTD. (HLF) : Free Stock Analysis ReportRite Aid Corporation (RAD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Bonanza Creek Energy (BCEI) A Good Stock To Buy According To Hedge Funds?
IsBonanza Creek Energy Inc (NYSE:BCEI)a bargain? Prominent investors are getting more optimistic. The number of long hedge fund positions increased by 2 recently. Our calculations also showed that bcei isn't among the30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
We're going to take a look at the recent hedge fund action encompassing Bonanza Creek Energy Inc (NYSE:BCEI).
Heading into the second quarter of 2019, a total of 16 of the hedge funds tracked by Insider Monkey were long this stock, a change of 14% from the previous quarter. By comparison, 19 hedge funds held shares or bullish call options in BCEI a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of noteworthy hedge fund managers who were adding to their stakes substantially (or already accumulated large positions).
More specifically,Mangrove Partnerswas the largest shareholder of Bonanza Creek Energy Inc (NYSE:BCEI), with a stake worth $45.9 million reported as of the end of March. Trailing Mangrove Partners was Oaktree Capital Management, which amassed a stake valued at $38.6 million. PAR Capital Management, Millennium Management, and Brigade Capital were also very fond of the stock, giving the stock large weights in their portfolios.
With a general bullishness amongst the heavyweights, some big names have jumped into Bonanza Creek Energy Inc (NYSE:BCEI) headfirst.Intrepid Capital Management, managed by Mark Travis, created the biggest position in Bonanza Creek Energy Inc (NYSE:BCEI). Intrepid Capital Management had $2 million invested in the company at the end of the quarter. Brett Hendrickson'sNokomis Capitalalso made a $1.8 million investment in the stock during the quarter. The following funds were also among the new BCEI investors: Benjamin A. Smith'sLaurion Capital Management, Mike Vranos'sEllington, and Steve Cohen'sPoint72 Asset Management.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Bonanza Creek Energy Inc (NYSE:BCEI) but similarly valued. These stocks are CURO Group Holdings Corp. (NYSE:CURO), HighPoint Resources Corporation (NYSE:HPR), Hometrust Bancshares Inc (NASDAQ:HTBI), and Gilat Satellite Networks Ltd. (NASDAQ:GILT). All of these stocks' market caps are similar to BCEI's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CURO,17,85677,7 HPR,14,59728,0 HTBI,12,66553,3 GILT,2,25518,0 Average,11.25,59369,2.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 11.25 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was $159 million in BCEI's case. CURO Group Holdings Corp. (NYSE:CURO) is the most popular stock in this table. On the other hand Gilat Satellite Networks Ltd. (NASDAQ:GILT) is the least popular one with only 2 bullish hedge fund positions. Bonanza Creek Energy Inc (NYSE:BCEI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on.
Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately BCEI wasn't nearly as popular as these 20 stocks and hedge funds that were betting on BCEI were disappointed as the stock returned -20.7% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Should You Investigate Telaria, Inc. (NYSE:TLRA) At US$7.49?
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Telaria, Inc. (NYSE:TLRA), which is in the software business, and is based in United States, received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Telaria’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for Telaria
Great news for investors – Telaria is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $14.8, but it is currently trading at US$7.49 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Telaria’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
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. In the upcoming year, Telaria’s earnings are expected to increase by 73%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?Since TLRA is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on TLRA for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TLRA. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Telaria. You can find everything you need to know about Telaria inthe latest infographic research report. If you are no longer interested in Telaria, 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. |
Do Hedge Funds Really Like Petmed Express Inc (PETS)?
Petmed Express Inc (NASDAQ:PETS)was in 16 hedge funds' portfolios at the end of the first quarter of 2019. PETS investors should be aware of an increase in enthusiasm from smart money in recent months. There were 15 hedge funds in our database with PETS holdings at the end of the previous quarter. Our calculations also showed that pets isn't among the30 most popular stocks among hedge funds.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
[caption id="attachment_746893" align="aligncenter" width="473"]
Paul Marshall of Marshall Wace[/caption]
We're going to take a look at the new hedge fund action regarding Petmed Express Inc (NASDAQ:PETS).
At the end of the first quarter, a total of 16 of the hedge funds tracked by Insider Monkey were long this stock, a change of 7% from one quarter earlier. On the other hand, there were a total of 16 hedge funds with a bullish position in PETS a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey,Renaissance Technologies, managed by Jim Simons, holds the most valuable position in Petmed Express Inc (NASDAQ:PETS). Renaissance Technologies has a $37.7 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Millennium Management, led by Israel Englander, holding a $6.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers with similar optimism consist of Noam Gottesman'sGLG Partners, Ken Griffin's Citadel Investment Group and Paul Marshall and Ian Wace's Marshall Wace LLP.
As industrywide interest jumped, some big names have jumped into Petmed Express Inc (NASDAQ:PETS) headfirst.Sio Capital, managed by Michael Castor, established the largest position in Petmed Express Inc (NASDAQ:PETS). Sio Capital had $4.1 million invested in the company at the end of the quarter. The other funds with new positions in the stock are Matthew Hulsizer'sPEAK6 Capital Management, Dmitry Balyasny'sBalyasny Asset Management, and Gavin Saitowitz and Cisco J. del Valle'sSpringbok Capital.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Petmed Express Inc (NASDAQ:PETS) but similarly valued. We will take a look at Corenergy Infrastructure Trust Inc (NYSE:CORR), PennantPark Investment Corp. (NASDAQ:PNNT), Dynavax Technologies Corporation (NASDAQ:DVAX), and Bonanza Creek Energy Inc (NYSE:BCEI). This group of stocks' market values are similar to PETS's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CORR,11,43465,4 PNNT,9,13823,0 DVAX,16,85298,-2 BCEI,16,158718,2 Average,13,75326,1 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $74 million in PETS's case. Dynavax Technologies Corporation (NASDAQ:DVAX) is the most popular stock in this table. On the other hand PennantPark Investment Corp. (NASDAQ:PNNT) is the least popular one with only 9 bullish hedge fund positions. Petmed Express Inc (NASDAQ:PETS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately PETS wasn't nearly as popular as these 20 stocks and hedge funds that were betting on PETS were disappointed as the stock returned -26.4% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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Sherrie Hewson slams Ringo Starr for Loose Women appearance, saying the drummer was so angry
Musician Ringo Starr attends the premiere of 'Echo in the Canyon' at ArcLight Cinerama Dome on May 23, 2019 in Hollywood, California. (Photo by Scott Dudelson/Getty Images) Former Loose Women panelist Sherrie Hewson has revealed Ringo Starr is her least favourite guest on the daytime show, labelling the drummer so angry. The former Coronation Street star was speaking at a live event in Llandudno when she was asked about the best and worst guests on the ITV chat show during her fourteen year spell. She launched into a tirade about the Beatles drummers attitude when he took part in the programme back in 2012. Lawson said: "Ringo Starr came on and he just sat down, said 'OK then, girls, what are we doing here? Shall we just get Paul McCartney out of the way?' "This was live, by the way. Read more: Ringo Starr backs clean water campaign at Glastonbury "Anyway, he carries on, 'Let's get Paul McCartney out the way. You want to talk about Paul McCartney? I said, well, no, you're here. "And he said 'No you don't. You want to talk about Paul McCartney.'" Sherrie Hewson during a photocall for ITV show 'Benidorm ' which is celebrating it's 10th anniversary at The Curzon Mayfair on January 29, 2018 in London, England. (Photo by Mike Marsland/Mike Marsland/WireImage) The Benidorm star added: "He was so angry. It was just so weird, I thought why? Why, why, why? It was just a really weird thing. "And then, he said to the audience: 'Can I tell you all, if anyone wants an autograph, you can't have one because I don't do things like that.' Read more: Loose Women star Crissy Rock reveals history of abuse at the hands of her grandfather "At the end of it, one of the producers came up with one of her little children, who was only four, and said, that she knew he didn't do autographs, but told him that her daughter was only four, and she really loves the Beatles. "He just said 'really?'. "And then he said: 'Did you not hear what I just said? I don't sign autographs. "The reason I am telling this story is because, I think, I was so angry that I got to meet the Beatles and one of them was like that. "Isn't it sad that you have to grow into that?" 78-year-old Starr stopped signing autographs in 2008, stating he was too busy. |
Women's World Cup: Megan Rapinoe stands by comments on Trump
PARIS — A red, white and blue “USA” patch was printed across her chest, a relaxed smile stretched across her face. Megan Rapinoe is in the middle of a modern-day, cross-Atlantic spat with Donald Trump – an old behind-the-scenes video resurfacing on social media being met with a fresh series of presidential tweets. It’s the kind of spotlight that can rattle a person, yet apparently not a person such as Megan Rapinoe. She looked as unconcerned and unfazed as she generally does on the soccer pitch. She didn't appear upset that Trump was focused on her. She tried to walk a thin line of both standing her ground while attempting to not escalate the confrontation. “I’ll just address it head on and then we can get to the soccer questions,” Rapinoe said at a press conference here Thursday in advance of Friday’s (3 p.m. ET) U.S. quarterfinal game against France. Rapinoe has been an unapologetic critic of Trump and the current state of American social justice. For a stretch, she followed Colin Kaepernick’s lead and knelt during the national anthem (she now "respectfully" stands, per U.S. Soccer rules, but declines to sing along with the anthem). She has rarely shied away from speaking out, sometimes in bombastic and confrontational ways, on any topic she chooses. A months-old video of her saying “I’m not going to the [expletive] White House” if the U.S. won the World Cup re-emerged this week. It came from a video taping of a spring promotional photo shoot. (Back in 2015, Rapinoe, along with her World Cup champion teammates, happily traveled to Washington to visit Barack Obama’s White House. This time, she sees things differently.) That got Trump to tweet that she should focus on winning first (he wrongly thought the comment was made during the tournament) and that she should respect the flag, the anthem and the White House itself. Back and forth and forth and back. Rapinoe’s fans cheered Rapinoe. Trump’s fans cheered Trump. Both had the right to speak their mind and confront the other. All’s fair in the political theatre. This is America, after all. Megan Rapinoe met with the media on Thursday, and she did not back down from her thoughts on President Donald Trump or a potential White House visit. (Reuters) And so Rapinoe looked somewhat amused as political Twitter burned all around her. She doesn’t appear scared of Trump. She doesn’t appear to expect Trump to be scared of her. It’s all a good knock, you could say. “I stand by the comments I made about not wanting to go to the White House with the exception of the expletive,” she joked. “My mom would be very upset about that.” She laughed. Then she spoke of the passion and pride she has in the platform her talent and work as a soccer player has given her. Story continues When Rapinoe speaks these days, she, an openly gay 33-year-old, originally from little Redding, California, way up near the nowhere’s land of the Oregon border, is significant enough to attract no less than the attention of the President of the United States. “Hopefully [we are] using [that platform] for good and leaving the game in a better place and hopefully the world in a better place,” Rapinoe said. “I don’t think I would want to go. And I would encourage my teammates to think hard about lending that platform or having it co-opted by an administration that does not feel the same way and fight for the same things that we fight for.” She declined to cite specifics on Thursday, preferring to focus on the game. She’s expressed plenty of them in the past. Her views on LBGT rights, women’s rights and other subjects do not mesh with the social conservatism Trump has taken up since he became a politician. So she embraces her very American right to sound off on the guy in charge. And the guy in charge embraces his very American right to sound off right back. Maybe in the past presidents didn’t get in fights with athletes, but Trump does things his own way. It’s 2019. This isn't new. It’s fair to say Rapinoe knew what was coming and had no problem when it came. “I think naturally as a person, I’m confident and sure of myself,” she said. She said she senses no issues with her teammates, a sentiment backed by her coach, Jill Ellis. “We all support Megan,” Ellis said. “She knows that. We have each other’s backs in there.” President Donald Trump said he would invite the U.S. women's national team to the White House whether it wins the World Cup or not. (AP) Mostly, Rapinoe said, everyone just wants to get to the game, a quarterfinal clash between the two tournament favorites and a night in Paris that everyone has been anticipating since the FIFA brackets came out last December. “I am not worried about destabilizing the dressing room,” Rapinoe said. “We have a very strong dressing room. We’re very open with each other, obviously everyone knows who I am. I didn’t make the comments at a press conference here; they were made months ago and are just resurfacing. “I think if anything it fires everyone up even more,” she continued. There’s too much at stake, Rapinoe said. Women’s soccer has come a long way but it remains a sport where at the most elite levels truly big games remain rare. There is the once-every-four-year World Cup and the once-every-four-year Olympics and nothing else that really compares. Professional leagues are still in the embryonic stage. Games like this, evenly matched competition with huge stakes and the soccer world watching, is what gets you through all the lonely practice sessions and conditioning drills and sacrifices. Rapinoe isn’t making millions as a pro athlete. This is still about the game. She said she’d continue her activism after the World Cup, as always. As for Trump, whatever. This will continue or it won’t. She looked like she didn’t care either way. The rest is just the absurdity of modern debate – some Trump fans now vowing to root not for the United States on Friday but … France, of all places. And Rapinoe being asked if scrapping with Trump, who is deeply unpopular with the French, actually increased her popularity over here. She could only smile. “I think I was popular in France before this,” she laughed. More from Yahoo Sports: USWNT needs Alex Morgan to step up vs. France Report: Celtics are the favorite to land Walker Sources: Hill meets with NFL over child abuse charges Heath not a fan of European women’s soccer: ‘Boring’ View comments |
Herman Miller Inc (MLHR) Q4 2019 Earnings Call Transcript
Image source: The Motley Fool.
Herman Miller Inc(NASDAQ: MLHR)Q4 2019 Earnings CallJun 27, 2019,8:30 a.m. ET
• Prepared Remarks
• Questions and Answers
• Call Participants
Operator
Good morning, and welcome to Herman Miller's Fourth Quarter Earnings Conference Call. As a reminder, this call is being recorded.
I would now like to introduce your host for today's conference Kevin Veltman, Vice President of Investor Relations and Treasurer.
Kevin Veltman--Vice President, Investor Relations & Treasurer
Good morning, everyone. Joining me today on our fourth quarter earnings call are Andi Owen, our President and Chief Executive Officer; Jeff Stutz, our Chief Financial Officer; and Greg Bylsma, our President of North America Contract.
We have posted yesterday's press release on our Investor Relations website at hermanmiller.com. Some of the figures that we'll cover today are presented on a non-GAAP basis. We've reconciled the comparable GAAP to non-GAAP amounts in a supplemental file that can also be accessed on the website.
Before we begin our prepared remarks, I will remind everyone that this call will include forward-looking statements. For information on factors that could cause actual results to differ materially from these forward-looking statements, please refer to the earnings press release we issued last night as well as our annual and quarterly SEC filings.
At the conclusion of our prepared remarks, we will have a Q&A session. Today's call is schedule 60 minutes and we ask that callers limit their questions to no more than three to allow time for all to participate.
With that, I'll now turn the call over to Andi.
Andrea Owen--President and Chief Executive Officer
Good morning, and thank you for joining us today. I'll begin our call by covering highlights of our results for the fourth quarter and the full year, followed by some perspective on the current macroeconomic picture. I'll close with a recap of our refreshed strategic priority they were rolled at our Investor Day on May 9th. Then I'll turn the call over to Greg Bylsma, who is joining us today to share some of the initiatives in place for our North American business that support our strategy. Jeff and Kevin will close by providing more information on our financial results.
We built on the momentum this year by finishing the fiscal year on a strong note with a record level of quarterly sales for Herman Miller. When compared to last year, the quarter reflected organic sales growth of 8% and organic order growth of 6%. Encouragingly, we delivered sales and order growth across each of our business units.
We leverage this growth to the bottom line as well as with adjusting operating margins that were 140 basis points higher than the same quarter last year. We reported earnings per share on a GAAP basis of $0.78 during the quarter. On an adjusted basis, earnings per share of $0.88, reflecting an increase of 33% over the same quarter last year. For the full fiscal year, net sales totaled $2.57 billion, an organic increase of 8% over last year and also a record sales level.
Full year operating margins of 8.8% reflected at expansion of 50 basis points over the prior year, despite the challenge of inflationary pressures on key commodities and the impact of trade tariffs throughout most of the year. We delivered reported EPS of $2.70 for the year and adjusted earnings per share of $2.97, which were 29% higher than last year. Behind the strength of our current financial position, yesterday, we announced a 6% increase in our quarterly shareholder dividend, reflecting the confidence of our management team and our Board of Directors in our strategy going forward.
While the broader geopolitical environment continues to be mixed with uncertainty surrounding Brexit and global trade relationships, underlying market fundamentals in our space remain relatively supportive. Contract industry order growth in North America as measured by BIFMA remains robust. Service sector employment continues to rise and architectural billing levels have been positive for 11 of the past 12 months.
The retail furniture sector as reported by the US Census Bureau has experienced lower demand year-to-date, as retail sales are down 1% compared to last year through April. We believe stock market volatility, weather and trade tensions have all impacted retail furnishing conditions. While US tariffs on certain goods imported from China increased to 25% during the quarter, trade negotiations continue between the US and China and the final story is not yet written.
That said, between a range of short and long term actions including the benefits we project from our profit improvement initiatives, we continue to expect to fully offset the impact of tariffs on our business. As many of you know, we hosted Investors in our New York showroom on May 9 to provide an updated view of our strategic priorities going forward. While the full webcast replay and presentation materials are available on our Investor site, I'd like to share an overview of our strategic priorities going forward on the call today.
First, I'd like to give some context to the trends which has helped shape our priorities. We all know the world is changing and digital disruption is at the center of many of those changes. We're also seeing the rise of data driven direct to consumer business models, a growing middle class and more knowledge workers support at favorable global picture. And we see retail growth opportunities in our space as well. In the North American contract market, there are opportunities to capture more share of our dealers business. It's also apparent that people are changing where and how they work. Offices are looking more residential, building demand for ancillary products. And lastly, we believe viewing the impact of an organization through the lens of total societal impact it's a business imperative, giving consideration to value created for shareholders as well as the broader communities and environment in which we operate.
With those trends in context, we focus on building a set of strategic priorities that create a sustainable and diverse revenue model, putting the customer at the center of everything we do and helping drive operating margin expansion. First, we have an amazing portfolio of brands, businesses and capabilities, but at times, operate too independently of each -- of each other, which makes us not as easy to do business with, as it should be. Going forward, we're going to be very intentional about unlocking the power of One Herman Miller. This includes the recent combination of our legacy North American Specialty segment under Greg Bylsma leadership, which she will share more about in a moment.
Second, our customer oriented and digitally enabled business model will be an important driver for reaching our aspirations in both the contract and retail spaces. We're taking the next steps in enhancing our goal for frictionless customer experiences. Since the start of the year, we've already created over 1,700 projects in our new proprietary visualization tool for our North America Contract businesses and are expanding the tools in international markets in the coming months. We're also taking the next steps to enhance our retail e-commerce experience, including improved functionality, new visualization and configuration capabilities and gearing up to expand our e-commerce presence across brands and geographies. These two foundational priorities set the stage for our third priority, accelerating profitable growth.
We see clear opportunities for growth ahead in all of our business segments. In fact, we believe, we're the only player in our space with access to meaningful contracts and retail growth opportunities on a global scale. Our international business set the pace for us this fiscal year with 13% sales growth, leveraging a powerful combination of broad and expanding dealer distribution, new products tuned to the needs of the markets and a talented sales organization. Similarly, the retail business contributing meaningful organic sales growth of 10.5% this fiscal year. This growth was driven by eight new Design Within Reach studio openings, Design Within Reach contracts growth, retail e-commerce growth and the launch of the HAY brand in North America.
In the fourth quarter, we also executed a number of important initiatives aimed at positioning us for profitable growth going forward. We opened three new Design Within Reach studios during the quarter, terminated the lease of one underperforming studio location and are in the process of moving to a larger state-of-the-art distribution center in Ohio. This distribution center will provide enhanced technology benefits including auto positioning and sliding optimization capabilities that will allow us to better serve our customers.
Finally, on the heels of our 12th consecutive year of inclusion on the Human Rights Campaign Corporate Equality Index, we believe now is the right time to reinforce our commitment to our people, our planet and our communities in a more integrated and deliberate way than ever before. Beyond simply being the right thing to do, we are confident, that elevating our focus on positive, social and environmental business practices will positively impact our customers and enhance returns for our shareholders over the long term.
Before I turn it over to Greg, I want to thank all of our employees for their tremendous effort this year in delivering these results. My team and I are excited to build on this momentum, as we execute on our strategic direction. Now Greg is going to share what he and his team are focused on for our North America business.
Gregory Bylsma--President, North America Contract
Thanks, Andi. I appreciate the opportunity to provide some additional background and initiatives within the North American Contract business that supports our growth agenda. First, we are combining our legacy North America and Specialty businesses together as part of our One Herman Miller priority. The benefit of this move result in better alignment of our sales teams. By ensuring this go-to-market alignment, our sales force will more effectively present products across all of our brands, ultimately helping our customers build high performing work spaces.
The power of this combination was demonstrated earlier this month, when we were recognized as the Best Large Showroom at the NeoCon Industry Trade Show in Chicago. Our goal for the showroom was to highlight the depth of our brands and their ability to work seamlessly under the theme of all together now. It is important to note the digital tools that Andi referred to earlier are a critical component to this process, allowing our dealer designers to more easily help customers visualize, specify, and order products from our entire group of brands.
Another important opportunity as we accelerate growth is the launch of the HAY brand in North America. We continue to localize key products within our North American manufacturing footprint to drive improved lead times for delivering these well crafted and beautifully designed products to our contract customers. As a great tribute to the design leadership that Rolf and Mette Hay bring to the Herman Miller family of brands, we are proud that they were named to the fast companies, 100 Most Creative People list for 2019.
Finally, our North American profit improvement initiative is playing a key role in our margin expansion. We continue to expect $30 million to $40 million of annual run rate savings from this initiative as we work through our implementation plans over the upcoming fiscal year. Highlighting our progress here, we generated run rate savings of $24 million in the fourth quarter, which were an important contributor to the 54% growth in adjusted operating income that the North American contract business delivered in Q4.
In closing, I'm especially grateful for the energy our North America team is bringing behind each of these initiatives, as we focus our continued growth in our core contract business.
And with that, I'll turn the call over to Jeff to provide more perspective on the financial results for the quarter.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Thanks, Greg, and good morning, everyone. Consolidated net sales in the fourth quarter of $671 million were 9% above the same quarter last year on a GAAP basis and up 8% organically after adjusting for the impact of year-over-year changes in foreign currency rates and the adoption of new revenue recognition rules earlier this fiscal year. New orders in a period of $665 million were 7% above last year on a reported basis and up 6% organically.
Before I begin reviewing our results by segment, I want to cover the changes that Andi and Greg referred to earlier, in the way we report our results across each of our business segments in more detail. Effective in the fourth quarter, we combined our legacy North America and Specialty segments into the North America Contract segment under Greg's leadership. As Greg said, this change was made in support of our One Herman Miller strategy to better leverage the power of all of our brands across the combined selling effort. Also, while our other two segments will continue to be reported on the same basis, we have renamed each of them. Our ELA segment will be referred to going forward as our International Contracts segment and our Consumer segment has been renamed as our Retail segment.
On June 19th, we filed an 8-K that included a recast of our segment results under these new definitions on a quarterly basis over the past two fiscal years. So with that as background, let me turn to the fourth quarter results by business segment.
Within our North America Contract segment, sales were $434 million in the fourth quarter, representing an increase of 11% from last year on a reported basis and up 9% compared to last year organically. New orders were $441 million in the quarter, up 8% on a reported basis and 7% organically over last year. The order growth in North America this quarter was generally broad-based and was driven mainly by large and medium sized projects.
From a regional perspective, we saw year-over-year increases in both the eastern and western areas of the US. Our International Contract segment reported sales of $132 million in the fourth quarter, an increase of 6% compared to last year. New orders totaled $112 million, representing growth of approximately 1% over the same quarter last year on a reported basis and 2% organically. The continued growth for the international business is notable as they face difficult sales and order growth comparisons for the quarter as the business generated growth in excess of 20% last year on both of these measures. The year-over-year order performance reflected growth in India, Japan and China offset by relatively softer demand levels in Australia, Mexico, in the Middle East.
Our Retail Business segment reported sales in the quarter of $105 million, an increase of 5% from the same quarter last year. New orders in the quarter of $112 million were 10% ahead of last year's level and sales growth for this segment during the quarter was primarily driven by growth from the HAY brand, contract, new studios and outlet stores. Our retail team pursued several important initiatives this quarter, all aimed at sustaining top line growth and improving bottom line profitability going forward. These include several actions related to DWR studio channel, including opening two new DWR studios in California, in Larkspur and La Jolla and a new location in New York's upper west side. We also initiated a planned exit of an underperforming studio location on Long Island, New York late in the quarter.
As Andi noted, the team is also making good progress transitioning from an existing distribution center in Kentucky to a larger facility in Ohio. Each of these actions are strategically important to the business and will contribute to improved growth and efficiency over the long run. With that said, together they drove incremental expenses in the quarter totaling approximately $4.5 million. From a currency translation perspective, the general strengthening of the US dollar relative to euro bill levels was a headwind to sales growth for the quarter.
We estimate the impact of translation from year-over-year changes in currency rates had an unfavorable impact on consolidated net sales of approximately $5 million in the period. Consolidated gross margin in the fourth quarter was 37%. Excluding approximately 60 basis points of impact from adopting new revenue recognition rules at the start of the current fiscal year that we had discussed in prior quarters, gross margin was 70 basis points above the same quarter a year ago. The gross margin expansion was primarily driven by manufacturing production leverage on higher shipment volumes and benefits from our profit improvement initiatives, offset by gross margin pressures in our retail business from reduced freight revenue, transition costs related to the distribution center rule and higher year-over-year impact from tariffs. Operating expenses in the quarter of $183 million compared $184 million are in the same quarter a year ago. The current quarter includes $1.7 million of special charges associated primarily with actions aimed at business structure realignment.
By comparison, we recorded special charges totaling $7.9 million in the fourth quarter of last year. Exclusive of these charges, the year-over-year increase in operating expenses of $5.5 million resulted mainly from higher variable selling expenses and costs in our retail business related to occupancy, marketing and staffing for new retail studios and the launch of the HAY brand in North America. Restructuring expenses recorded in the fourth quarter of $8.5 million related primarily to actions associated with our profit improvement initiative in North America, including an early retirement program initiated in the fourth quarter.
Our profit improvement initiatives are progressing on schedule and we expect continued benefits to ramp through fiscal 2020. On a GAAP basis, we reported operating earnings of $57 million for the quarter compared to operating earnings of $41 million in year ago period. Excluding restructuring and special charges, adjusted operating earning this quarter were $67 million on 9.9% of sales. By comparison, we reported adjusted earnings of $52 million or 8.5% of sales in the fourth quarter of last year. The combination of revenue growth, gross margin improvement and well managed operating expenses contributed to operating margin expansion over last year. The effective tax rate in the quarter was 22%. And finally, net earnings in the fourth quarter totaled $46 million or $0.78 per share on a diluted basis compared to $32 million or $0.53 per share in the same quarter last year. Other income and expense for the quarter includes a pre-tax gain totaling $2 million related to the fair value adjustment of an investment in a technology partner.
Excluding this gain as well as the impact of restructuring and other special charges, adjusted diluted earnings per share this quarter totaled $0.88 compared to adjusted earnings of $0.66 per share in the fourth quarter of last year.
With that, I'm now going to turn the call over to Kevin to give us an update on our cash flow and balance sheet.
Kevin Veltman--Vice President, Investor Relations & Treasurer
Thanks, Jeff. We ended the quarter with total cash and cash equivalents of $159 million, an increase of $46 million from the level on hand last quarter. Cash flows from operations in the fourth quarter were $86 million reflecting an increase of 54% over the $56 million generated in the same quarter of last year. The key contributors to higher operating cash flows were increased net income and higher inflows from working capital, primarily driven by higher accrued liabilities and lower inventory levels.
For the full fiscal year, cash flows from operations of $260 million reflected an increase of $50 million from the prior fiscal year. Capital expenditures were $23 million in the quarter and $86 million year-to-date. Cash dividends paid in the quarter were $12 million and $46 million for the full year. The 6% dividend increase that we announced yesterday increases our expected annual payout level to approximately $49 million.
We also returned cash to shareholders through share repurchases of $4 million during the quarter and $48 million for the full year. We remain in compliance with all that covenants and as of quarter end, our gross debt to EBITDA ratio was approximately 1:1. The available capacity on our bank credit facility sit at $165 million at the end of the quarter, given our current cash balances, ongoing cash flow from operations and total borrowing capacity, we remain well positioned to meet the financing needs of the business moving forward.
With that, I'll now turn the call back over to Jeff to cover our sales and earnings guidance for the first quarter of fiscal 2020.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Okay. Thank you, Kevin. With respect to the forecast, we anticipate sales in the first quarter of fiscal 2020 to range between $650 million and $670 million. The midpoint of this range implies an organic revenue increase of 6% compared to the same quarter last year. We expect consolidated gross margin in the first quarter to range between 36.6% and 37.6%. This midpoint gross margin forecast is 110 basis points higher than the first quarter of fiscal 2019, reflecting improved production leverage, lower steel prices and net benefits from our ongoing profit improvement initiatives.
Operating expenses in the first quarter are expected to range between $182 million and $186 million. And we anticipate earnings per share to be between $0.77 and $0.81 for the period and our assumed effective tax rate is between 21% and 23%.
With that summary, I'll now turn the call over to the operator, and we'll take your questions.
Operator
Thank you. (Operator Instructions) And our first question comes from Greg Burns with Sidoti & Company. Your line is open.
Gregory Burns--Sidoti & Company, LLC -- Analyst
Good morning. Can you just talk about some of the sales trends you're seeing on the retail side? I saw that your same-store sales were down a little bit this quarter? And then also in terms of the underperforming location that you're closing, when you look at your studio footprint, how many other studios would you categorize as maybe underperforming and potential candidates for closing? Thanks.
Andrea Owen--President and Chief Executive Officer
Hey, Greg. How are you doing?
Gregory Burns--Sidoti & Company, LLC -- Analyst
Good.
Andrea Owen--President and Chief Executive Officer
So as far as retail trends, I think we saw in the quarter as many of our other retail competitors did a little bit of a slowdown in retail trends. The good news is we're starting to see that pick back up again. I think if you look at the DWR business specifically with the stock market volatility that businesses is definitely very susceptible to that. And we certainly saw a lot of that in the last quarter with our uncertainty and some of the announcements around that. When it comes to the studio closure in Manhasset, I'm a big believer in recognizing when you've made a mistake and rectifying it quickly. We found the studio to be unproductive pretty much from the get go, and I'm happy that we've taken action there. And I'm also happy to say that, it's really the only studio that we have it's been over -- opened over a year that is unproductive. So we don't see any other closures happening, but we did feel it was important to act quickly in that instance. Jeff, would you like anything to add?
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
No, I think, I would agree with all that.
Gregory Burns--Sidoti & Company, LLC -- Analyst
Okay. And then obviously, you had a number of items this quarter aimed at longer term profitability, but what's your view on returning that business to positive operating profit? And your longer term view on the margin potential of that business?
Andrea Owen--President and Chief Executive Officer
I think in the long term and I think in the relatively short term that business has strong potential. We all feel that we can get some mid to high single digits relatively quickly in the next year or two. Having said that, we're in built mode and we're launching a new brand HAY. We are looking at changing our warehouse and distribution facilities to enable us to grow faster. So right now we've made some investments. So I think we remain bullish on this. We remain bullish on HAY. We think we have a $75 million to $100 million opportunity in that business as we continue to launch. So we feel strongly that this is the right way to go.
Gregory Burns--Sidoti & Company, LLC -- Analyst
Okay. Thank you.
Andrea Owen--President and Chief Executive Officer
You're welcome.
Operator
Thank you. And our next question comes from Steven Ramsay with Thompson Research Group. Your line is open.
Steven Ramsey--Thompson Research Group -- Analyst
Hi. Good morning.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Hey, Steven.
Andrea Owen--President and Chief Executive Officer
Hi, Steven.
Steven Ramsey--Thompson Research Group -- Analyst
Hi. Just wanted to follow up again on retail. I guess -- surprised with three stores opening, we did not see sales growth, but the closing of the store I guess was that a material contributor to sales decline. Clearly you guys had a tough comp, but kind of -- even a breakdown to on the segments within retail contract, consumer and e-commerce?
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Steven, this is Jeff. So I guess to directly answer your first question, the store on Long Island that we closed, I would not characterize that as a material item in terms of moving the needle to year-over-year sales or order activity in the overall retail business. So what I might add is, in total for the retail business, while revenue growth rates were a bit more anemic than we would have liked, the order growth for that -- for the business was closer to 10% year-over-year. So we were pretty happy with that in total. In our business, at least those of us who have been on the contract side of the business for a long time, that tends to be the more forward-looking metric for us anyway. And I think we still view our retail business in the same vein. And then as it relates to -- what -- remind me of the second part of your question, Steven.
Steven Ramsey--Thompson Research Group -- Analyst
Yeah, just a little more detail the different channels of the retail segment of contract side the consumer side e-commerce. Was there any trends that that merged with strong growth or slower growth by channel.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Yeah. I would say that -- where we saw the most strength continued to be in this quarter, as it has been for several quarters, on the growth of our Contract business within the retail segment. So that is where we've continued to see very consistently strong growth, strong double-digit growth. As it relates to studios that have been in place on a comp basis, that was down in terms of revenue year-over-year. That was probably the weakest part of the overall segment performance. But as I mentioned, our overall order rates were much more encouraging.
Steven Ramsey--Thompson Research Group -- Analyst
Great. And then switching to North America, clearly, good margin improvement there. And I guess what's surprising given the inclusion of the lower margin specialty business, maybe just help us understand the drivers there in the quarter. And then on the restructuring charges there, how much of that was legacy North America or specialty? Or is that -- are those -- is that spending in order to merge the segments and operations together?
Andrea Owen--President and Chief Executive Officer
Steven, I'm going to turn the first part of that over to our special guest, Greg Bylsma.
Gregory Bylsma--President, North America Contract
So when you look at the pieces of the specialty business, the -- especially the Geiger piece of that had a very strong performance and we've seen continued margin improvement really over the last four or five quarters and the team down there has done a really nice job of building that. So I wouldn't suggest that what was -- in that Specialty segment what was hidden because they had margins that were very solid, as a matter fact, I think even low double digits. So the overall trends in margin, I think is the word that we've really done in project Optimis, what we call project Optimis, our profit improvement initiatives. And it just continues to increment into the numbers since the start -- really start, at the beginning, late first quarter of last year and then it's just continuing to build. And I think what you see in that quarter is an almost -- not quite the culmination, but a strong momentum of that work, which showed up in the quarter. And then I think, like I said on the -- in the prepared remarks, to pacing on an annual basis of just over $24 million.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Yeah. Steven, this is Jeff. I was just going to add onto that. You had asked the question -- kind of the primary drivers in the North American Contract business and Greg touched on some of the important ones. But I just want to remind you, we've taken some pretty aggressive actions around -- in our overall profit improvement work that he described, but also we've taken some pricing actions earlier in the year. And volume levels have been quite strong across the North American Contract segment, including the legacy definition of that segment and that helped tremendously in the quarter. I'd also maybe point out that the -- that's about the restructuring costs. Most of those actions are related to the legacy North American Contract business. But important to the point out that while we implemented those actions in Q4, we haven't yet recognized any of the benefits from it. That will be layering in going forward.
Steven Ramsey--Thompson Research Group -- Analyst
Excellent. Thank you.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Yeah.
Operator
Thank you. And our next question comes from Budd Bugatch with Raymond James. Your line is open.
Andrea Owen--President and Chief Executive Officer
Hi, Budd.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Hey, Budd, you might be muted.
Andrea Owen--President and Chief Executive Officer
Budd, you might be muted. Are you there?
Operator
Okay. We'll go ahead and go with Matt McCall with Seaport Global.
Matthew McCall--Seaport Global Securities LLC -- Analyst
Hello, thanks. Good morning, everybody.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Hey, Matt.
Andrea Owen--President and Chief Executive Officer
Hey, Matt.
Matthew McCall--Seaport Global Securities LLC -- Analyst
So maybe just start with the 6% growth I think you said at the midpoint in the guidance. And you just kind of referenced strength in legacy North America. I'm just curious about the outlook in the guidance kind of a segment basis or a sub-segment segment basis, whatever detail you feel like you should provide? And then maybe take it a step further and give me your thoughts around kind of the North American Contract macro outlook of kind of intermediate term?
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
So I mean, I'm going to be a little careful giving you a ton of color on segment-by-segment. I mean our guide is a consolidated view obviously. What I can tell you, Matt is -- let me give you one point of clarity. If you look at our overall backlog to end the year, this is actually a similar conversation that we had with you all at the end of Q3. We had a very strong backlog. I think it's up. If you adjust for revenue recognition impact year-over-year, it's about 10% growth. I think the reported numbers have been higher than that, but there's that rev rec implication for itself. On an adjusted basis, that 10% would normally imply a slightly higher revenue guide than what we're talking about at the 6% level. What I can tell you is very similar to last quarter, we do have some longer dated project in the backlog, particularly in the international business that are pushing out into the -- are beyond the first quarter. And to kind of frame that for you, it's probably in the order of magnitude of $15 million in the backlog. In terms of the overall revenue growth by segment, I would say that there's -- in our expectation, no real outlier growth levels in the NAC or international expectations relative to kind of current -- where we've been running. They're kind of in -- on the order of magnitude of what the growth rates have been and I'll kind of leave it at that.
Andrea Owen--President and Chief Executive Officer
Yeah. And Matt, as far as the macro trends, we mentioned in our prepared remarks, many things are pointing to nice business ahead for us. I would also say that going out and talking to most of our customers, the word for talent is working to our advantage. We have more people leaving the workforce than we have entering the workforce. With unemployment levels really low, that really helps us. And also when you look at most office buildings or workplaces, people really are looking to upgrade and attract new generations of talents. So that's helpful to us from a macro standpoint. I don't know. Greg, would you add anything to that?
Gregory Bylsma--President, North America Contract
No. I think the -- I mean -- yeah, I think the -- you look at the relative near-term activity levels and funnel, they all are simply merged along in accordance with the bigger macro picture and the bigger macro items that Jeff and Andi referred to.
Matthew McCall--Seaport Global Securities LLC -- Analyst
Okay. All right. That's helpful. And maybe I guess switching gears, similar question on the margin front of me. The North American Contract jumped out. So maybe Greg, since you're there, good to hear your voice. But what's the ultimate goal there? Remind us of the target. I know you talked about the expectations around retail in the -- I think for the next year or two getting to mid to high single digits. But I guess North American Contract specifically, what's the expectation? Are we in this 13.5% for a while? Or is that kind of the new starting point?
Gregory Bylsma--President, North America Contract
I mean anytime you get a good number. Your boss looks at you and tells you that the starting format.
Matthew McCall--Seaport Global Securities LLC -- Analyst
Okay.
Gregory Bylsma--President, North America Contract
I think, I would love to have the trade conversation at least settled down to a spot of we know what the future looks like. That would be super helpful. Given all that's going on, we've done things to try to make that picture as good as we can under the current environment. We are getting some good news starting to build on where the steel prices have gone. So yeah, I look forward to what we just did in the fourth quarter, as there's always headwinds you can talk about, but there's actually some tailwinds, too.
Matthew McCall--Seaport Global Securities LLC -- Analyst
So maybe that leads to my third question. I was just going to ask Jeff the -- Jeff, you mentioned steel prices and lower steel prices, the benefit there. Can you talk about price and price cost and the -- how that's going to layer in the remainder of this calendar year?
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Yeah, Matt. I'm going to talk -- I'll reserve my comments to the Q1 guide only because I don't have a clue what the back half of the year is going to look like. But in the near term -- let me first start with the fourth quarter just to kind of leverage that. And I think some of these was covered in the prepared remarks. But between the impact of tariffs and commodity, that -- those combined were a net negative of between $2 million and $3 million. We figure we had net pricing benefit offset a portion, but not all of that. So for the fourth quarter, the cost price equation was a negative year-on-year of about somewhere between $1 million to $1.5 million. Fast forward to the Q1 guide and what's implied in the guidance, the commodity picture, as Greg just described, is getting better. We expect, in total commodities and this is mainly driven by steel is something on the order of $2.5 million favorable year-on-year. The tariff impact obviously gets worse as we move from a 10% level to the 25% level. And we don't know where that whole story is going to end, but right now I would could call that at about $5.5 million negative year-on-year. In the first quarter, that was implied. And then the pricing picture, we expect continued ramp of the price that we implemented -- the price increase we implemented back in January. Expectations would be that would be net out somewhere around $5 million. So if you do the math on all of that, it's favorable year-on-year implied in the guidance of around $2 million to $2.5 million. And where it goes from there, I guess I'm going to -- I won't make any guesses, but it's an improving picture as we move into Q1.
Matthew McCall--Seaport Global Securities LLC -- Analyst
So I understand not wanting to make any guesses, but if we just hold things steady, are those the right trends to think about at least for the next couple or few quarters if we hold...
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Well, yeah. I would say if you allow me to hold serve on pricing, that's probably the biggest one. I would tell you that the commodity picture, that one likely gets better unless there's any shock to the system. If you recall, Matt, as we move into the back part of Q1 last year, steel prices I think got above $1,000 a ton. And because of our lag and how those prices affect our cost of goods sold, that would have impacted us largely in the second quarter. So we should have a very favorable comp to the Q2 margin -- on Q2 margins just because of commodities. Tariffs are an offset to that and pricing would be the big wildcard. But our expectation would be we should be able to hold on to some of that still. It's largely because of the tariff situation.
Matthew McCall--Seaport Global Securities LLC -- Analyst
Okay. All right. Thank you. Nice quarter.
Andrea Owen--President and Chief Executive Officer
Thank you.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Thanks, Matt.
Operator
Thank you. And our next question comes from Budd Bugatch with Raymond James. Your line is open.
Budd Bugatch--Raymond James -- Analyst
Let's try this again. Can you hear me?
Andrea Owen--President and Chief Executive Officer
There you are Budd. Hi, Budd.
Budd Bugatch--Raymond James -- Analyst
We had been relegated to the electronic -- twice on this call. Could we have to get back in as well. So I apologize.I'm not going to ask some of the questions that I have. I'll wait till we're offline because I suspect they've been asked already. But let's -- if you would, just characterize the promotional or the competitive market and maybe characterize your contract revenues North America and international by project versus continuing business, if you would?
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
So Budd, when you were in the first question on competitive nature, you're talking about the contract side?
Budd Bugatch--Raymond James -- Analyst
Yes, sir. Of course.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Yeah, OK. I figured. I thought -- I don't think that's changed that much. I think we've got good competition and market by market, it depends on the distribution in place about who you face every day. But I think we obviously are concerned about our competition, but we got our things to do. And we're marching forward with our strategy and trying to get our go-to-market team aligned, just like we talked about at our Investor Day back in May and the digital tools that our dealers need to compete. And we think that with the current structure and alignment and to be more leveraged, we think we've got upside with all that and a ton of costs as we move forward. So competition is good, but we like what we're doing. And based on the data that we can see, I'll say we're making progress.
Budd Bugatch--Raymond James -- Analyst
Well, Greg, when you were shooting in Jeff's seat several years ago, you used to report kind of the impact of discounting year-over-year and you gave us kind of some numbers to go on that. Is that up year-over-year, down year-over-year? What does it look like today?
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Hey, Budd, this Jeff. I'm going to take this one. I don't know if Greg has the data in front of him. So we netted out positive pricing -- price increase impact from January net of discounting. It was a good guide for us year-on-year in the fourth quarter.
Budd Bugatch--Raymond James -- Analyst
Okay. And do you think that continues? If that persists, how does that look as you go forward?
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
I think the thing that -- to go forward, we don't have a lot of product as a percentage of total that we buy from -- that is impacted by tariff. It's not a small number, but I don't think that across the competitive landscape, we -- I think we're in a better -- we might not be in the best spot, but we're in a better spot than most. The anecdotal evidence I hear about pricing actions are in excess of ours. And given that, I think we can continue to hold where we're at with discounted price level.
Budd Bugatch--Raymond James -- Analyst
Okay. And internationally, are there any changes? Brexit still a question mark, correct? We don't quite know how that's going to play out over the long term?
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Yeah, you're right. We don't know where Brexit is going to play out. I wish we did. I would say in the international business as a general rule, we've seen -- it's been a strong year, as you know. I would say we've probably seen a shift in the business toward a bit more larger -- mid to larger-sized projects. And I think that it is -- accounts for, I don't know if you were on the line at least a few minutes ago. I talked a bit about our backlog. And some of the longer dated items in the backlog relate to the some decent sized projects for international. So that's kind of the project picture. And from an overall -- to me, the bigger story in the international business this year has been the work that they've done around margin efficiency. The gross margin performance has improved, particularly in Asia. Some of our profit optimization work there related to factory consolidation and we're starting to see the real benefits from that reveal themselves in the results.
Budd Bugatch--Raymond James -- Analyst
So that's all done. Ningbo is closed essentially and you're all in one factory?
Gregory Bylsma--President, North America Contract
Budd, hey, this is Greg. The Ningbo is closed. We have the old, if you remember, POSH factory that we are in the process of moving to the new factory and we have everything in there, except metal. So the paint lines are going in there as we speak. And the metal we're transferring from the old factory to the new factory around September timeframe.
Budd Bugatch--Raymond James -- Analyst
All right. I'll take the rest of my questions offline. Thanks. Thank you very much. Congratulations on the year.
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Thanks. Thanks a lot, Budd.
Andrea Owen--President and Chief Executive Officer
Thanks, Budd.
Operator
Thank you. I'm showing no further questions at this time. I'd like to turn the call back to Ms. Andi Owen for closing remarks.
Andrea Owen--President and Chief Executive Officer
Thanks, everybody, for joining us today. We really appreciate your continued interest in Herman Miller. And we're looking forward to updating you again next quarter. Hope you have a great day. Thanks.
Operator
Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program. You may all disconnect. Everyone have a great day.
Duration: 42 minutes
Kevin Veltman--Vice President, Investor Relations & Treasurer
Andrea Owen--President and Chief Executive Officer
Gregory Bylsma--President, North America Contract
Jeffrey Stutz--Executive Vice President and Chief Financial Officer
Gregory Burns--Sidoti & Company, LLC -- Analyst
Steven Ramsey--Thompson Research Group -- Analyst
Matthew McCall--Seaport Global Securities LLC -- Analyst
Budd Bugatch--Raymond James -- Analyst
More MLHR analysis
All earnings call transcripts
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditionsfor additional details, including our Obligatory Capitalized Disclaimers of Liability.
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Laundry ad promoting working women sparks furore in Pakistan
By Zofeen T. Ebrahim and Waqar Mustafa
KARACHI/LAHORE, June 27 (Thomson Reuters Foundation) - A U.S. detergent advert that encourages women to pursue careers has sparked a debate over women's rights in conservative Pakistan, with critics urging people to #BoycottAriel.
The ad shows a female architect, doctor and journalist pushing away dirty sheets printed with the words "take care of the home" and "stay within four walls" to reveal cricket star Bismah Maroof saying, "these are not just sentences but stains".
"These feminists are saying, 'Make your own food, watch the kids'," university student Safdar Khan told the Thomson Reuters Foundation via Twitter.
"They basically want us to do their work. They should stay within Islam's boundaries," he said, after tweeting that the Ariel advert was "making fun of our religion".
Procter & Gamble did not immediately respond to a request for comment.
Women make up 7% of Pakistan's labour force, the third-lowest figure globally, according to the World Bank, which has pushed for more childcare and a crackdown on sexual harassment to get more women out to work and boost economic growth.
The South Asian nation was ranked as the sixth most dangerous country for women in a Thomson Reuters Foundation poll last year, with hundreds of women and girls killed each year by family members angered at perceived damage to their "honour".
Other critics of the advert took to YouTube and Twitter with quotes from the Koran to support their beliefs that women should be confined to the home to hide their beauty and do their duty.
"Islam defines a woman's role and her boundaries ... exceeding these limits, isn't that against Islam?," Usman Haider Khasori told the Thomson Reuters Foundation, after tweeting that staying within four walls offers women protection.
"Ads must be constructive rather than destructive," he said, adding that Western culture was corrupting Pakistan, pointing to the recent arrival of nudity in films and women marching in favour of abortion in Pakistan earlier this year.
The Middle Eastern ride-sharing app Careem also triggered controversy this year for an ad featuring a bride that said, "If you want to run from your wedding, then book a Careem Bike!"
However, Salman Sufi, who has championed legislation and crisis centres to protect women against violence in Pakistan, praised Ariel for challenging stereotypes about women.
"Ads like these need to be pushed and become the norm to change the mindset of the masses," he said. "Corporates that do realise the importance of women's rights must keep making room for women's rights in their service to the society." (Additional reporting and writing by Annie Banerji @anniebanerji in NEW DELHI, Editing by Katy Migiro; Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters that covers humanitarian issues, conflicts, land and property rights, modern slavery and human trafficking, gender equality, climate change and resilience. Visit http://news.trust.org to see more stories) |
The Telaria (NYSE:TLRA) Share Price Is Up 307% And Shareholders Are Delighted
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We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. But when you hold the right stock for the right time period, the rewards can be truly huge. One bright shining star stock has beenTelaria, Inc.(NYSE:TLRA), which is 307% higher than three years ago. Also pleasing for shareholders was the 18% gain in the last three months.
See our latest analysis for Telaria
Telaria isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Telaria actually saw its revenue drop by 31% per year over three years. This is in stark contrast to the strong share price growth of 60%, compound, per year. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. At the risk of upsetting holders, this does suggest that hope for a better future is playing a significant role in the share price action.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Thisfreereport showing analyst forecastsshould help you form a view on Telaria
We're pleased to report that Telaria shareholders have received a total shareholder return of 83% over one year. That gain is better than the annual TSR over five years, which is 10%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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 Telaria 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 US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Stock Market News: Boeing Hits More Turbulence; WageWorks Agrees to a Deal
Thursday morning got off to a good start for most financial markets, as positive sentiment built up heading into this weekend's meeting of key national leaders in Japan. News that Chinese President Xi Jinping will present potential terms of a temporary truce in the trade conflict with the U.S. seemed to give investors more hope that a favorable resolution is possible. As of just before 11:30 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 61 points to 26,476. However, the S&P 500 (SNPINDEX: ^GSPC) rose 8 points to 2,922, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was higher by 38 points to 7,948. The primary reason why the Dow didn't follow other major benchmarks higher was that Boeing (NYSE: BA), whose high stock price has a lot of influence on the price-weighted average, ran into new problems with its 737 MAX aircraft that made it the Dow's biggest decliner. Meanwhile, WageWorks (NYSE: WAGE) announced that it had agreed to a merger deal with fellow benefits specialist HealthEquity (NASDAQ: HQY) -- and the resulting move in the two stocks might have surprised casual watchers. Boeing needs more fixes Shares of Boeing were down 2.5% Thursday morning as investors reacted negatively to news from the U.S. Federal Aviation Administration about the 737 MAX aircraft model. After having been grounded since March, the MAX program now faces a newly discovered fault that could require additional remedial work to address. Three aircraft in a large hangar, with people and displays surrounding them. The FAA said that it conducted a simulator test and discovered a new risk affecting the plane. The agency released few details, but Boeing disclosed that the FAA has specifically asked it to consider additional changes to its MAX software to cover an issue that the aerospace giant hasn't addressed previously. As a consequence of the new discovery, Boeing won't be able to conduct a certification test flight that had been scheduled for early next month. That could further delay the return of the MAX to service , which in turn will have negative implications for the airlines that have been early adopters of the aircraft. Despite the pressure to move forward quickly, Boeing is insistent that it won't bring the 737 MAX forward for certification until it's satisfied that the plane meets all FAA safety requirements. Story continues WageWorks finally takes the deal Meanwhile, shares of WageWorks were down 2% Thursday morning. The employee benefits specialist announced that it had agreed to an acquisition offer from HealthEquity valuing WageWorks at $2 billion. Under the terms of the deal, WageWorks investors will receive $51.35 per share in cash for their stock. The news comes nearly two full months after HealthEquity had made an unsolicited bid for the company. The health savings account specialist's initial offer had been $50.50 per share in cash, but WageWorks stock had traded above that level in the hopes that the two companies would end up negotiating a higher price. In the end, though, the extra $0.85 per share seemed to be a win for HealthEquity, whose stock jumped 5% this morning. The two companies believe that the merger will help accelerate their joint efforts to have more employers offer health savings accounts as part of their health benefits. HealthEquity was a pioneer in the HSA custodian arena, and WageWorks recently made a deal with industry peer BenefitFocus to boost its own HSA presence. At the same time, synergies could produce annualized savings of $50 million within the first two or three years after closing. For workers, health savings accounts can produce both tax savings and the opportunity for investment gains. HealthEquity hopes to dominate that business, and its success could eventually bring better benefit packages for the employees of the combined company's clients. More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market Dan Caplinger owns shares of Boeing. The Motley Fool owns shares of and recommends HealthEquity. The Motley Fool has a disclosure policy . |
He Is Not Going To Like This: Twitter Will Downgrade Trump Tweets That Break Sites Rules
Chip Somodevilla Twitter will add a disclaimer to tweets from Donald Trump and other politicians that break the social media platforms rules, under a new policy change that appears to be aimed at the presidents most inflammatory tweets. The change, which will mean that fewer Twitter users see Trump tweets that break the rules, is likely to set off new complaints from the president alleging that Twitter is biased against him. While the new policy announced on Thursday doesnt mention Trump, it applies specifically to politicians or government officials who are verified on Twitter and have more than 100,000 followers a category that includes Trump. Instead of deleting tweets from Trump and other world leaders when they break the rules, Twitter will now add a disclaimer saying that the tweet qualified as abusive behavior but will remain up in the public interest. Users will have to click through the notice before they can view the tweet. The Twitter rules about abusive behavior apply to this Tweet, the disclaimer posted to the tweets will read. However, Twitter has determined that it may be in the publics interest for the Tweet to remain available. Twitter's new notice for tweets that violate its rules but will remain on the platform. Twitter The White House did not immediately respond to requests for comment. However, one senior Trump administration official told The Daily Beast on Thursday afternoon that they or someone else will print out an article on the new policy and show it to the president. This official predicted that Trump would not be happy, and that it would almost certainly trigger more public raging on the topic from the president. He is not going to like this, the official bluntly noted. (President Trump is currently overseas for a series of G20 meetings.) Twitters algorithm also wont highlight the tweets that break the rules, meaning fewer Twitter users will see them. Tweets with the label will also be hidden from live event pages and Twitters algorithmically curated Top Tweets version of the timeline. Critics have pointed out that Trump regularly breaks Twitters rules. In April, Trump tweeted video juxtaposing Rep. Ilhan Omar (D-MN) with imagery from 9/11, prompting a wave of death threats against the lawmaker. In January, Trump used Twitter to intimidate his former attorney, Michael Cohen. Trump has also threatened military action against Iran and North Korea on the platform a violation of Twitters rules against violent threats. Story continues In a blog post announcing the policy, Twitter said it was trying to balance adherence to the sites rules with the publics interest in what world leaders are tweeting. Even under the new policy, though, not every tweet that violates the rules could stay up Twitter says direct threats of violence or calls to commit violence against an individual could be ruled as outside of the public interest and taken down. Despite all of Trumps routine accusations against the social media company as a censoring, anti-Trump behemoth, Twitter regularly keeps in touch with administration officials, including with Trumps White House social media guru Dan Scavino, in an effort to maintain a tenuous diplomacy, according to several knowledgeable sources. Trump has frequently accused Twitter of being biased against him and other Republicans. In April, Twitter CEO Jack Dorsey met with Trump in the White House after Trump accused Twitter of deleting his followers. Instead, Dorsey explained, Trump had lost followers during a routine purge of fake Twitter accounts. That apparently didnt convince Trump, who has kept up his accusations that Twitter is keeping his follower count down. On Wednesday, Trump called Fox Business Network to complain that its very hard for people to join me on Twitter. Twitters latest move will likely inflame President Trumps, as well as the GOPs, ongoing messaging skirmishes and culture wars with tech giants. It would behoove Republican politicians to understand the rampant censorship from big tech companies has become a top tier issue among Republican voters, right next to immigration, the Second Amendment, and taxes, said Andrew Surabian, a GOP strategist and political adviser to Donald Trump Jr., both of whom made widely circulated allegations that Twitter was shadow banning them. (This accusation was subsequently picked up by President Trump himself last year.) Just in the last week, we have Twitter saying theyre going to hide the presidents tweets, we have Reddit suspending the entire The_Donald subreddit because of comments from random users, and we have Google executives caught on tapewhich was later removed from YouTubethat their goal is to stop President Trump in 2020, Surabian continued. Thats all in the last week! Read more at The Daily Beast. Get our top stories in your inbox every day. Sign up now! Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more. |
Is Taylor Morrison Home Corporation's (NYSE:TMHC) Balance Sheet A Threat To Its Future?
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While small-cap stocks, such as Taylor Morrison Home Corporation (NYSE:TMHC) with its market cap of US$2.1b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Understanding the company's financial health becomes crucial, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. Nevertheless, potential investors would need to take a closer look, and I suggest youdig deeper yourself into TMHC here.
TMHC's debt levels surged from US$1.4b to US$2.2b over the last 12 months , which accounts for long term debt. With this growth in debt, TMHC's cash and short-term investments stands at US$175m to keep the business going. Additionally, TMHC has produced cash from operations of US$107m during the same period of time, resulting in an operating cash to total debt ratio of 4.9%, indicating that TMHC’s current level of operating cash is not high enough to cover debt.
With current liabilities at US$672m, it seems that the business has been able to meet these obligations given the level of current assets of US$4.6b, with a current ratio of 6.9x. The current ratio is the number you get when you divide current assets by current liabilities. However, a ratio above 3x may be considered excessive by some investors, yet this is not usually a major negative for a company.
TMHC is a relatively highly levered company with a debt-to-equity of 89%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses.
Although TMHC’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for TMHC's financial health. Other important fundamentals need to be considered alongside. You should continue to research Taylor Morrison Home to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for TMHC’s future growth? Take a look at ourfree research report of analyst consensusfor TMHC’s outlook.
2. Valuation: What is TMHC 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 TMHC 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. |
A 'Final Fantasy XIV' live-action TV show is in the works
Final Fantasy might be making its way to a screen near you, albeit without the need for you to have a controller in hand. Square Enix and Sony Pictures Television aredevelopinga live-action Final Fantasy TV series with Hivemind, the production company behindThe Expanse. It's also working on Netflix's adaptation ofThe Witcher.
A number of animated Final Fantasy shows have emerged in the past, as well as several movies. If you were hoping for a show based onFinal Fantasy VIIthis time around, you might be disappointed. Instead, the upcoming adaptation will take its cue from theFinal Fantasy XIVMMO.
It'll be set in Eorzea, anddelve into"the struggle between magic and technology in a quest to bring peace to a land in conflict." If the show comes to fruition, you'll see plenty of classic Final Fantasy characters in it, including chocobos and, of course, Cid. No cast members have been announced as yet, and it remains to be seen when the series will arrive. |
Did Hedge Funds Drop The Ball On Cytokinetics, Inc. (CYTK) ?
Hedge fund interest inCytokinetics, Inc. (NASDAQ:CYTK)shares was flat at the end of last quarter and it wasn't that high to begin with. This is usually a negative indicator. At the end of this article we will also compare CYTK to other stocks including The York Water Company (NASDAQ:YORW), Green Brick Partners Inc (NASDAQ:GRBK), and Heritage Insurance Holdings Inc (NYSE:HRTG) to get a better sense of its popularity.
In the financial world there are many metrics investors have at their disposal to evaluate publicly traded companies. Some of the most innovative metrics are hedge fund and insider trading activity. Our researchers have shown that, historically, those who follow the best picks of the top hedge fund managers can outclass the S&P 500 by a superb margin (see the details here).
[caption id="attachment_758434" align="aligncenter" width="450"]
Nathan Fischel of DAFNA Capital[/caption]
We're going to take a look at the key hedge fund action regarding Cytokinetics, Inc. (NASDAQ:CYTK).
At Q1's end, a total of 16 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the fourth quarter of 2018. On the other hand, there were a total of 12 hedge funds with a bullish position in CYTK a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey,Biotechnology Value Fund / BVF Inc, managed by Mark Lampert, holds the largest position in Cytokinetics, Inc. (NASDAQ:CYTK). Biotechnology Value Fund / BVF Inc has a $30.8 million position in the stock, comprising 3.4% of its 13F portfolio. Coming in second is Alex Snow ofLansdowne Partners, with a $11.8 million position; 0.3% of its 13F portfolio is allocated to the company. Other professional money managers that hold long positions include Israel Englander'sMillennium Management, James A. Silverman'sOpaleye Managementand Nathan Fischel'sDAFNA Capital Management.
Judging by the fact that Cytokinetics, Inc. (NASDAQ:CYTK) has experienced declining sentiment from the entirety of the hedge funds we track, we can see that there lies a certain "tier" of fund managers who were dropping their positions entirely heading into Q3. Intriguingly, Jeffrey Jay and David Kroin'sGreat Point Partnersdropped the largest investment of all the hedgies tracked by Insider Monkey, worth an estimated $20.1 million in stock, and Noam Gottesman's GLG Partners was right behind this move, as the fund dumped about $0.1 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's now review hedge fund activity in other stocks similar to Cytokinetics, Inc. (NASDAQ:CYTK). These stocks are The York Water Company (NASDAQ:YORW), Green Brick Partners Inc (NASDAQ:GRBK), Heritage Insurance Holdings Inc (NYSE:HRTG), and Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI). All of these stocks' market caps match CYTK's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position YORW,5,17100,0 GRBK,10,276439,-4 HRTG,9,33157,3 ACBI,12,76229,-2 Average,9,100731,-0.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $101 million. That figure was $69 million in CYTK's case. Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) is the most popular stock in this table. On the other hand The York Water Company (NASDAQ:YORW) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Cytokinetics, Inc. (NASDAQ:CYTK) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on CYTK as the stock returned 37.7% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published atInsider Monkey.
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Rent the Runway, Nordstrom team up to boost convenience, attract customers
By Melissa Fares
NEW YORK, June 27 (Reuters) - Nordstrom Inc and Rent the Runway announced a partnership on Thursday that aims to draw more foot traffic into the department store while making the clothing rental service more convenient so it can improve service to existing customers and attract new ones.
Rent the Runway "drop-off boxes," where subscribers can quickly scan and return rented items, will be placed inside four Los Angeles-based Nordstrom stores, three of which are smaller "Nordstrom Local" stores billed by the chain as "a convenient drop-in hub" closer to residential areas.
Los Angeles is Rent the Runway's fourth largest market, where there is a "particularly high density of subscribers living or working close to the Nordstrom Locals in West Hollywood, Brentwood and Downtown LA," the clothing rental company said.
The idea, executives from both retailers told Reuters, is to make it more convenient for Rent the Runway subscribers to drop off rented items and explore other offerings at Nordstrom Local stores, where shoppers can consult personal stylists for fashion and beauty services, have clothes altered or make quick returns.
The partnership between the Seattle, Washington-based retailer and clothing rental service, based in New York City, is the latest example of how retailers are teaming up to fend off fierce competition from online retailers like Amazon.com Inc and fast-fashion brands like Inditex's Zara and H&M.
In April, struggling upscale U.S. retailer Neiman Marcus took a minority stake in online luxury reseller Fashionphile.
"We're excited to see the amount of customers that end up using the service with Rent the Runway as well as the customers we're able to introduce into our service programs like styling," said that Shea Jensen, Nordstrom's senior vice president of customer experience.
"Rent the Runway obviously serves a growing customer base," she added.
Last month, the department store operator reported disappointing quarterly results, hurt by the rollout of a new loyalty program and slow sales of full-priced women's clothing.
Maureen Sullivan, chief operating officer at Rent the Runway, said she expects the partnership to improve customer loyalty and ultimately help the company grab more market share.
"We'll expect to see over time some loyalty improvement," said Sullivan, adding that "by having these physical drop-off boxes... we're able to activate even more subscribers."
Since launching the Rent the Runway drop-off box service with WeWork in October 2018, the company has seen over an 180% increase in returns directly from customers, the company said. (Reporting by Melissa Fares in New York; Editing by David Gregorio) |
North American Nickel Reports on Annual General and Special Meeting
Vancouver, British Columbia--(Newsfile Corp. - June 27, 2019) -North American Nickel Inc. (TSXV: NAN) (OTCBB: WSCRF)(the "Company") is pleased to report on the results of the Annual General and Special Meeting (the "Meeting") of shareholders held on June 27, 2019.
The shareholders ratified and approved the number of directors at seven (7) and re-elected John Sabine, Douglas Ford, Gilbert Clark, Christopher Messina, Keith Morrison, Zhen Janet Huang and newly elected Charles Riopel as directors of the Company for the ensuing year.
NAN CEO, Keith Morrison, commented: "We are pleased to welcome Mr. Riopel to our Board. Charles brings extensive international expertise in both mining and finance, which will add additional strength to our team, as we continue to advance our assets and evaluate new opportunities."
In addition, Dale Matheson Carr-Hilton LaBonte LLP were re-appointed as auditors and shareholders approved the Company's Stock Option Plan as detailed in the Management Information Circular dated as of May 21, 2019.
Following the meeting the board of directors re-appointed John Sabine as Chairman, Keith Morrison as Chief Executive Officer, Sarah-Wenjia Zhu as Chief Financial Officer and Mark Fedikow as President.
About North American Nickel
North American Nickel is a mineral exploration company with 100% owned properties in Maniitsoq, Greenland and Sudbury, Ontario.
The Maniitsoq property in Greenland is a Camp scale permitted exploration project comprising 3,048 square km covering numerous high-grade nickel-copper + cobalt sulphide occurrences associated with norite and other mafic-ultramafic intrusions of the Greenland Norite Belt (GNB). The >75km-long belt is situated along, and near, the southwest coast of Greenland accessible from the existing Seqi deep water port with an all year-round shipping season and hydroelectric power potential from a quantified watershed.
The Post Creek/Halcyon property in Sudbury is strategically located adjacent to the past producing Podolsky copper-nickel-platinum group metal deposit of KGHM International Ltd. The property lies along the extension of the Whistle Offset dyke structure. Such geological structures host major Ni-Cu-PGM deposits and producing mines within the Sudbury Camp.
ON BEHALF OF THE BOARD OF DIRECTORS
Keith MorrisonChief Executive OfficerNorth American Nickel Inc.
For more information contact:
North American Nickel Inc.Jaclyn RuptashCorporate Communications(604) 770-4334
Toll free: 1-866-816-0118
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.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45954 |
Mexico's president defiant in row with Canada over pipeline contracts
By Dave Graham MEXICO CITY (Reuters) - Mexican President Andres Manuel Lopez Obrador pushed backed on Thursday against Canadian concerns that gas pipeline contracts awarded under his predecessor might not be honored, saying the terms of the agreements were "abusive" toward the state. Mexican state power utility CFE said this week it would negotiate a "fairer" resolution to contractual disputes over several pipelines being built by companies including Mexico's IEnova and Canada's TC Energy Corp . The Canadian ambassador to Mexico, Pierre Alarie, wrote on Twitter on Wednesday that the Mexican government appears "not to wish to respect natural gas pipeline contracts," and said he was deeply concerned about the signal being sent. Lopez Obrador, who in February vowed the contracts would be honored, said it was natural for Alarie to defend Canada's interests but took a defiant stance when asked about the dispute during his regular morning press conference. "Here it was stated that those contracts were abusive. I called them unfair contracts because they were handed over with all the benefits for the companies," Lopez Obrador said, arguing that their terms would lead to the ruin of the CFE. "A deal will be reached because we too have to defend the assets and the interests of the Mexican people," he added. The row has revived concerns that Lopez Obrador's government could put in jeopardy contracts signed under previous administrations, the last six of which the president has characterized as part of a corrupt "neo-liberal" era. He has been highly critical of the government of predecessor Enrique Pena Nieto, who sought to lift economic growth by opening up the energy sector to private capital, an approach that Lopez Obrador has so far roundly rejected. IEnova, a unit of U.S.-based Sempra Energy, says the CFE is seeking arbitration over a contract it signed in partnership with TC Energy to build a $2.5 billion pipeline from Texas to the Mexican Gulf coast port of Tuxpan. Story continues News of the arbitration request dragged down IEnova's shares more than 4% on Wednesday. The company's stock at one point slumped by over 8% on Thursday. Shares in Sempra were down 1.1%, while stock of TC Energy was up slightly. Paty Mitchell, a spokeswoman for Sempra, said the company was analyzing the content of the arbitration request and its legal basis, reaffirming it was ready to talk to the CFE. "The arbitration notice should not interfere with the existing contractual conditions," she said. A CFE source, speaking on condition of anonymity, said the utility had notified Fermaca, a Mexican infrastructure company building another pipeline, that it was seeking arbitration. Fermaca could not immediately be reached for comment. Separately, Mexico's Grupo Carso, an infrastructure firm controlled by billionaire Carlos Slim that also is involved in the pipeline disputes, said in a statement it would analyze an arbitration request it had received from the CFE. Shares in Carso fell by 2.25%. Lopez Obrador rejected the suggestion that the spat could interfere with ratification of United States-Mexico-Canada Agreement (USMCA), a new North American trade deal the Mexican Senate approved earlier this month. Canada and the United States must still ratify USMCA. Lopez Obrador, who took office in December, alarmed investors by canceling a partly built $13 billion Mexico City airport, arguing that it was riddled with corruption. (Reporting by Dave Graham; additional reporting by Diego Ore and Miguel Angel Gutierrez and Ana Isabel Martinez in Mexico City and Scott DiSavino in New York; editing by Paul Simao, Bill Trott and Lisa Shumaker) |
Centerra Gold Inc. (TSE:CG): Financial Strength Analysis
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Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Centerra Gold Inc. (TSE:CG), with a market capitalization of CA$2.8b, rarely draw their attention from the investing community. However, generally ignored mid-caps have historically delivered better risk adjusted returns than both of those groups. This article will examine CG’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. Don’t forget that this is a general and concentrated examination of Centerra Gold's financial health, so you should conduct further analysisinto CG here.
Check out our latest analysis for Centerra Gold
CG's debt levels have fallen from US$346m to US$189m over the last 12 months – this includes long-term debt. With this reduction in debt, CG currently has US$180m remaining in cash and short-term investments , ready to be used for running the business. Additionally, CG has generated cash from operations of US$376m in the last twelve months, resulting in an operating cash to total debt ratio of 199%, meaning that CG’s current level of operating cash is high enough to cover debt.
At the current liabilities level of US$273m, it appears that the company has been able to meet these commitments with a current assets level of US$853m, leading to a 3.12x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Having said that, many consider a ratio above 3x to be high, although this is not necessarily a bad thing.
With a debt-to-equity ratio of 7.4%, CG's debt level is relatively low. This range is considered safe as CG is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. We can check to see whether CG is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In CG's, case, the ratio of 8.22x suggests that interest is appropriately covered, which means that lenders may be less hesitant to lend out more funding as CG’s high interest coverage is seen as responsible and safe practice.
CG has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level. In addition to this, the company exhibits an ability to meet its near term obligations should an adverse event occur. I admit this is a fairly basic analysis for CG's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Centerra Gold to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CG’s future growth? Take a look at ourfree research report of analyst consensusfor CG’s outlook.
2. Valuation: What is CG 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 CG 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. |
Facebook CEO Mark Zuckerberg on election interference: Feds have 'tools to apply pressure to Russia, not us'
Hours ahead of the first 2020 Democratic presidential debate , Facebook CEO Mark Zuckerberg said the social-networking giant can't stop potential election interference from Russia and other countries on its own and pushed for help from the federal government. After years of increasing public scrutiny over data breaches and manipulation, Zuckerberg on Wednesday called for federal government regulations on social-media sites but insisted that a breakup of Facebook would only complicate issues of misinformation and privacy . Zuckerberg discussed social issues facing the internet at the Aspen Ideas Festival , an annual event in Colorado that includes conversations on topics such as technology and the environment. Delving into the lines between free speech and decency, Zuckerberg explained Facebook's policies but said lawmakers are better positioned to create uniform rules. "As a society, if we were rewriting the rules of the internet from scratch today, it is not at all clear to me that what we would want to do is have private companies make so many of these decisions by themselves," Zuckerberg said. Misinformation and deepfakes Facebook is "thinking through" its policies on deepfakes, Zuckerberg said, adding that he believes it is sensible to treat them differently from other false information. Deepfakes are manipulated videos, such as the altered video of House Speaker Nancy Pelosi that spread online last month. Zuckerberg on Wednesday said the company made a mistake while handling the Pelosi video, as it was distributed more widely than Facebook's policies should have allowed. But he said private companies shouldn't act hastily in cracking down on false information , including satire. Wait, is that video real?: The race against deepfakes and dangers of manipulated recordings "I just think you want to be very careful about what you're defining as misinformation, because this is a topic that can be very easily politicized," Zuckerberg said. "People who don't like the way something was cut often will kind of argue it did not reflect the true intent or was misinformation, but we exist in a society where people value and cherish free expression." Story continues Currently, he said Facebook works with fact checkers who mark posts as false and prevent posts from getting widely shared. Related content also pops up showing more accurate videos. In Zuckerberg's view, preventing people from saying incorrect things to friends is overreach. “If it’s misinformation, we say, 'OK, we don’t think it should be against the rules to say something that happens to be false to your friends,'” Zuckerberg said. "But we don't want it to spread and go viral, right? People get things wrong." Election interference When it comes to protecting election integrity , Zuckerberg said Facebook can only do so much. He detailed the 30,000 employees who work on content safety review and technical artificial intelligence systems that can detect improper activity. The networking site also has strategies to remove bad actors from systems before they can spread misinformation, Zuckerberg said, as well as a requirement for political advertisers to validate their identity with a government-issued ID. Political ads also go into an archive that will be viewable for about seven years to support transparency, he said. Mark Zuckerberg on Capitol Hill on April 10, 2018. But, as Facebook has seen increased activity from countries such as Iran, Zuckerberg said the federal government needs to step in to prevent future interference. "As a private company, we don't have the tools to make the Russian government stop," Zuckerberg said. "We can defend as best as we can, but our government is the one that has the tools to apply pressure to Russia, not us." While he described election integrity one of Facebook's highest priorities, he said there is a need for an international Honest Ads Act , which was introduced in Congress last month. Privacy versus data portability Giving people choices about how their information is handled, Zuckerberg said, is generally appropriate. Yet too many choices over what companies can use private data , he said, can make experiences less user-friendly. "The flip side of giving people control is that then people need to go understand every one of the hundred choices that they have the chance to make," he said. "Which isn't necessarily bad, but a lot of people show up to Facebook and Instagram their goal is to see what's going on with their friends and share a moment from their day, not to go dig around in settings." 2016 elections: We read the released Russian Facebook ads. You can, too Plus, he said the issue of data portability comes into play when companies don't share people's information with other services. To simplify the push and pull between the issues, Zuckerberg said he is in favor of government regulation to make policies consistent across platforms. Breaking up Facebook Zuckerberg didn't pull any punches when asked for his thoughts on some politicians' calls for the break up of Facebook . He said Facebook's size and budget make it better able to respond to issues of misinformation, election interference and privacy. “It’s not the case that if you broke up Facebook into a bunch of pieces you suddenly wouldn’t have those issues," he said. "You would have those issues, you would just be much less equipped to deal with them.” Twitter and Reddit face similar issues despite being smaller companies, he argued. This article originally appeared on USA TODAY: Facebook CEO Mark Zuckerberg on election interference: Feds have 'tools to apply pressure to Russia, not us' |
Tulsi gabbards little sister said MSNBC ignored the candidate
The sister of Congresswoman Tulsi Gabbard (pictured) defended her sister's lack of air time during the June 26th Democratic Debate. (Photo: Getty Images) The sister of U.S. Rep Tulsi Gabbard claims MSNBC ignored the presidential hopeful, focusing instead on Elizabeth Warren , during Wednesday’s Democratic Debate . Vrindavan Gabbard shot at the host network, tweeting (through her big sister’s account), “It’s clear who MSNBC wants to be president: Elizabeth Warren. They’re giving her more time than all the other candidates combined. They aren’t giving any time to Tulsi at all.” It's clear who MSNBC wants to be president: Elizabeth Warren. They're giving her more time than all the other candidates combined. They aren't giving any time to Tulsi at all. -V (Tulsi's sister) — Tulsi Gabbard (@TulsiGabbard) June 27, 2019 She was dissatisfied despite a Drudge Report opinion poll that showed 40 percent of people deemed the Hawaiian congresswoman the “winner” among her 10 competitors (Sen. Warren of Massachusetts earned 11.2 percent of the Drudge vote, trailed by former Maryland congressman John Delaney and New York City mayor Bill De Blasio, reports The Hill ). Gabbard also ranked “most searched” candidate per Google Trends and was complimented by Meghan McCain who tweeted that she was “composed and authentic” during the Miami, Fla. event. Vrindavan’s swipes felt “petty” on Twitter. There it is. The whiny, Trumpy Gabbard tweet. Do better, tulsi camp. — It's Me Lisa (@leeeeeeeesssa33) June 27, 2019 Tulsi’s sister, Do you not have your own Twitter account? — Jamison Hill (@NotTheWhiskey) June 27, 2019 Put on your big girl pants. — SarahCA 💙🌊 (@SarahBCalif) June 27, 2019 Wrong. Petty Betty over there! Envy is not a good look. — Melissa Spivey Garcia (@Melissa_Spivey) June 27, 2019 Dear Tulsi's sister, It was a debate. 10 people were on stage. Stop pouting because I heard your sister loud and clear having her chance to talk. Still not going to vote for her, but she was heard. — Tina M. Quirk 🌊 (@TMQuirk) June 27, 2019 My opinion of you just dropped several notches. This is the kind of commentary we get from Trump. — David Hoffman (@atDavidHoffman) June 27, 2019 And that's what makes V's tweet an astounding fail. @TulsiGabbard , that's why people hide their families when they run for office. So embarrassing they are! — GG (@GeorgiaBlue404) June 27, 2019 According to a June profile of Tulsi in New York Magazine , Vrindavan (a federal marshal nicknamed “Davs”) has been a mouthpiece for her sister since childhood. “And she continues to do much of the talking for her today,” the story noted. “When they were at a store as girls, it was Vrindavan who would interact with the cashier; Tulsi was too nervous. If the phone rang, Tulsi would wait for her sister to answer. If Vrindavan disobeyed their parents, Tulsi would be upset...” Story continues Tulsi herself seemed pleased with her performance, as she told conservative news website Breitbart on Wednesday night. “I’m grateful to have had this opportunity here tonight to present who I am and why I’m running for president to the American people,” she said. “I think it’s important that we all recognize that we need a president who will serve the needs of every American in this country, who will put their interest ahead of their own.” At the debate, the 38-year-old military veteran highlighted her tours of duty in Iraq and Kuwait and her present role as Army National Guard Major. Tulsi also scored big when she informed Ohio Rep. Tim Ryan of a key difference between the Taliban and Al Qaeda. While arguing that the United States needs military presence in Afghanistan , Ryan suggested that the Taliban was responsible for the 911 attacks in New York City. “I didn’t say squash them,” said Ryan. “When we weren’t in there, they started flying planes into our buildings. So I’m just saying right now…” Tulsi responded, “The Taliban didn't attack us on 9/11, Al-Qaeda did. Al-Qaeda attacked us on 9/11, that’s why I and so many people joined the military to fight Al-Qaeda, not the Taliban.” According to the Washington Post , New Jersey Sen. Corey Booker spoke for the most minutes (10.9), Texan Rep. Beto O’Rourke for 10.3, while Warren spoke for 9.3 minutes, and Gabbard logged in 6.6 minutes. Read more from Yahoo Lifestyle: Elizabeth Warren says ban on federal funding for abortion has been 'wrong for a long time': 'It's just discrimination' Let's Rate the Walk-out Songs for the 2020 Democratic Presidential Candidates Famed magazine columnist: 'Donald Trump assaulted me' Famed magazine columnist: 'Donald Trump assaulted me' Follow us on Instagram , Facebook , Twitter and Pinterest for nonstop inspiration delivered fresh to your feed, every day. |
How to make a patriotic basil watermelon smash cocktail
Celebrate July 4th in style with this Basil Watermelon Smash cocktail. The star shaped apples are sure to impress any guest! Check out the recipe on this episode ofCocktail of the Week.
• 1 apple
• 1 can of Sprite
• 3 basil leaves
• 1 teaspoon sugar
• 6 cubes of watermelon, plus watermelon to garnish
• ice
• 1/4 cup lime Juice
• ¼ ounce honey
• 2 ounces tequila
1. Slice apple into ¼ inch thick round pieces. Use acookie cutterto cut apple slices into star shapes. Soak stars in Sprite and refrigerate until use.
2. In a cocktail shaker, muddle the basil and sugar.
3. Then, add watermelon chunks and muddle.
4. Add ice, lime juice, honey and tequila to shaker and shake well.
5. Fill glass with ice and apple stars. Strain cocktail into glass and garnish with watermelon chunks. |
What You Must Know About Centerra Gold Inc.'s (TSE:CG) Financial Health
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Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Centerra Gold Inc. (TSE:CG) with a market-capitalization of CA$2.8b, rarely draw their attention. While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. Today we will look at CG’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 CG here.
See our latest analysis for Centerra Gold
Over the past year, CG has reduced its debt from US$346m to US$189m , which includes long-term debt. With this reduction in debt, CG's cash and short-term investments stands at US$180m , ready to be used for running the business. On top of this, CG has generated US$376m in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 199%, signalling that CG’s debt is appropriately covered by operating cash.
At the current liabilities level of US$273m, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 3.12x. The current ratio is calculated by dividing current assets by current liabilities. However, a ratio above 3x may be considered excessive by some investors, yet this is not usually a major negative for a company.
With a debt-to-equity ratio of 7.4%, CG's debt level is relatively low. CG is not taking on too much debt commitment, which may be constraining for future growth. We can test if CG’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 CG, the ratio of 8.22x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving CG ample headroom to grow its debt facilities.
CG has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level. Furthermore, the company exhibits an ability to meet its near term obligations should an adverse event occur. I admit this is a fairly basic analysis for CG's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Centerra Gold to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CG’s future growth? Take a look at ourfree research report of analyst consensusfor CG’s outlook.
2. Valuation: What is CG 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 CG 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. |
Wisconsin Supreme Court backs Enbridge in Dane County case
MILWAUKEE (AP) The Wisconsin Supreme Court ruled Thursday that Canada-based Enbridge Energy doesn't need to carry additional insurance for a pipeline project in Dane County, despite the local government's insistence that it do so in case of an accidental spill. Dane County officials made a $25 million environmental liability policy a requirement for Enbridge's permit for a project to triple the flow of crude oil from its Line 61 pipeline to 1.2 million barrels per day. The pipeline runs from northern Wisconsin to Illinois. The Court's conservative majority ruled in favor of Enbridge 4-1, with two liberal justices abstaining. Dane County approved the permit in 2015 with the insurance requirement. In asking for additional insurance, Dane County officials cited the 2010 Enbridge oil spill in southwest Michigan that cost $1.2 billion and has resulted in ongoing insurance litigation. In that case, the U.S. government fined Enbridge more than $1.8 million after accusing the company of missing deadlines for pipeline inspections following the gigantic oil spill that polluted nearly 40 miles (64.37 kilometers) of the Kalamazoo River, shorelines and wetlands. Cleanup lasted four years. Enbridge appealed Dane County's insurance requirement, but Wisconsin lawmakers intervened before the company's challenge was decided, passing a last-minute provision in the state budget that blocked municipalities from imposing additional liability requirements when a pipeline operator already carries comprehensive insurance. Dane County required the extra insurance anyway, prompting Enbridge to appeal at the circuit court level, where they won, only to have an appeals court decide that Enbridge hadn't proven it carried enough insurance. The high court reversed that Thursday, writing that Enbridge already had sufficient insurance. "Enbridge is pleased with the decision of the Supreme Court to uphold the Dane County Circuit Court's decision to strike unenforceable insurance requirements from the (conditional use permit)," Enbridge spokeswoman Jennifer Smith said in a statement. Story continues While the court battle played out, Enbridge finished its $1.5 billion upgrade to its pipeline and built the needed pumping station, since state lawmakers made Dane County's requirement unenforceable. "The Waterloo pump station is critical infrastructure for the state of Wisconsin and for the region, helping to ensure a reliable source of energy for decades to come," Smith said. Enbridge has said that it has $860 million worth of general liability insurance that includes coverage for sudden and accidental pollution, but the county and landowners involved in the case say the company hasn't provided sufficient proof. An attorney for Dane County, David Gault, called the court's ruling "primarily the result of an ill-conceived and poorly worded special interest statute." Patricia Hammel, one of the attorneys representing the landowners, said in a statement that the court's "decision allows Enbridge to operate the largest tar sands pipeline in the U.S across Wisconsin without adequate insurance and exposes our people, land and water to the consequences of a catastrophic spill." In ruling in favor of Enbridge, the conservative justices concluded that lawmakers "rendered Dane County's extra insurance conditions unenforceable, and the proper remedy is to strike the illegal conditions." Dissenting from the majority, Justice Ann Walsh Bradley, echoed the arguments from landowners and the county, saying that Enbridge has not shown that it carries the needed insurance that would make what the county is asking for moot. "In sum, I determine that Enbridge did not demonstrate that it 'carries' insurance that includes 'sudden and accidental' coverage." Enbridge has disputed that claim. Enbridge, which operates Line 3 in Minnesota, is going through a legal battle there as well as it tries to replace the aging crude oil pipeline that runs through the northern part of the state. Earlier this month, two state agencies said they would hold up approval of the project's permits until problems with its environmental review are resolved. |
EU Banks to Deploy Instant Payments System in Response to Competition From Libra
European Unionbanks could have an instantaneouspaymentssystem in place by 2020, Reutersreportson June 26.
Per the report, real-time payments have been possible in the eurozone since 2017, but only about half of the banks in the bloc adhered to the initiative. Still, Reuters notes that adoption may accelerate now thatFacebook’sLibrastablecoinis shaping up to be a competitor to local banks.
Director general of the European Payments Council (EPC) Etienne Goosse reportedly said that — regardless of the success of Facebook’s Libra’s project — competition from technology firms was here to stay, and banks need to evolve faster. Goosse points out that major tech firms have a significant advantage over the fragmented banking system:
“They come with a global solution, under a global brand offering many things that the consumers seem to find wonderful. [...] So we have no time.”
Goosse also pointed out that, while the EPC instant payment standard has been adopted by about 60% of eurozone lenders and payment services providers, it could spread to all banks in the block by the end of 2020. Reuters also notes that other officials confirmed that 2020 was a credible target, but they also noted that for the system to go across borders the entire eurozone would need to be covered.
Lastly, Reuters notes that an instant payment system may not be enough to prevent losing user share to fintech initiatives that only need the user to install an easy-to-use mobile application. Facebook can also use its social and chat platforms to its advantage.
As Cointelegraphreportedearlier today, the head of theGermanFederal Financial Supervisory Authority has urged regulators to develop standards in response toFacebook’sforthcomingcryptocurrency, Libra.
Last week, theSwitzerland-based Bank of International Settlements (BIS) commented on the threat that the entry of major tech firms into financial services could pose to the banking sector, as Cointelegraphreported.
• Binance Research: Facebook’s Libra Could Spark Additional Cryptocurrency Volume
• BaFin Head Urges Global Bank Standards in Response to Facebook’s Libra
• Ethereum Co-Founder Criticizes Facebook’s Libra Token for Centralization
• French Minister of Economy to Ask for Guarantees From Facebook In Regards to Its Forthcoming Coin |
How Should Investors Feel About Torchmark Corporation's (NYSE:TMK) CEO Pay?
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Gary Coleman has been the CEO of Torchmark Corporation (NYSE:TMK) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Torchmark
At the time of writing our data says that Torchmark Corporation has a market cap of US$9.6b, and is paying total annual CEO compensation of US$7.8m. (This figure is for the year to December 2018). That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at US$920k. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
A first glance this seems like a real positive for shareholders, since Gary Coleman is paid less than the average total compensation paid by other large companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Torchmark, below.
Over the last three years Torchmark Corporation has grown its earnings per share (EPS) by an average of 33% per year (using a line of best fit). Its revenue is up 3.6% over last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested inthisfreevisualization of analyst forecasts.
I think that the total shareholder return of 49%, over three years, would leave most Torchmark Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It appears that Torchmark Corporation remunerates its CEO below most large companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Gary Coleman deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really likethis free visualization of insider trading at Torchmark.
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. |
Where in the World Is Maisie Williams? Fans Await Her Arrival at Sophie Turner and Joe Jonas’s Wedding
Maisie Williams and Sophie Turner are best friends. They have a couple name (“ Mofie ”) and matching tattoos, and they’re planning to make a movie based on their friendship. They’re so close, in fact, that Williams is one of two maids of honor at her 23-year-old former Game of Thrones co-star’s forthcoming (second) wedding to Joe Jonas. But while everyone from Priyanka Chopra and Nick Jonas to That ’70s Show alum Wilmer Valderrama has been in Paris celebrating with Turner and her 26-year-old beau since earlier this week, Williams has yet to arrive. The Turner-Jonas wedding is thought to take place this upcoming Saturday, June 29, because of a comment Dr. Phil wrote on one of Turner’s Instagram posts last week. “Easy now! 1 week to go!” he wrote under a selfie of Turner and Jonas in front of the Eiffel Tower. That said, Williams still has some time to make her way to Château de Tourreau in Sarrians, France, where their nuptials are expected to take place. But many are wondering why Williams opted out of joining the Jo-Bros and J-Sisters in their Parisienne activities. Well, her Instagram stories from earlier this week showed her and boyfriend Reuben Selby (as well as his brothers) on vacation in the Seychelles. Yesterday, she shared a snap of the London Tube on her Instagram stories (apparently she still rides the Tube despite her GoT fame and, ahem, money). So, unless she’s trolling her Instagram followers, it seems Williams has yet to arrive in France. But with the wedding presumably days away, it’s only a matter of time. Hey, it’s low pressure. It is Turner and Jonas’s second wedding after all. RELATED : There’s a ‘Game of Thrones’ Reunion Special Coming (and We Have a Sneak Peek) |
Should You Worry About Torchmark Corporation's (NYSE:TMK) CEO Salary Level?
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In 2012 Gary Coleman was appointed CEO of Torchmark Corporation (NYSE:TMK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Torchmark
At the time of writing our data says that Torchmark Corporation has a market cap of US$9.6b, and is paying total annual CEO compensation of US$7.8m. (This number is for the twelve months until December 2018). That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$920k. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
Most shareholders would consider it a positive that Gary Coleman takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Torchmark has changed from year to year.
Torchmark Corporation has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 3.6%.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
Boasting a total shareholder return of 49% over three years, Torchmark Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Torchmark Corporation is currently paying its CEO below what is normal for large companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Gary Coleman deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Torchmark (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out 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. |
Denver man dies in the Dominican Republic after sweating, vomiting
A Denver man has died after becoming critically ill in the Dominican Republic,KDVRreports.
Khalid Adkins traveled to the Caribbean island with his daughter last week, his family told the station on Wednesday. Adkins was supposed to fly back home on Sunday but reportedly dripped with sweat and vomited in the plane's bathroom, forcing flight attendants to eventually remove him from the flight.
On Tuesday, Adkins's sister-in-law, Marla Strick, told KDVR that, prior to his death, Adkins had been hospitalized in Santo Domingo, the country's capital.
"He said his leg started to swell and that’s why he couldn’t get up. And he started sweating and vomiting. He is just yelling and in pain, so he couldn’t talk to me," she said at the time.
Strick added that family members — including Adkins's own daughter, who had already flown back home — had been having trouble getting any more updates from hospital staff on Adkins's status. They were only told that his breathing was "bad" and that his kidneys were failing.
Earlier this week, a relative attempted to raise enough money — $20,000 to be exact — to fly Adkins back to the U.S. for treatment via air ambulance by creating aGoFundMeaccount. Though it raised enough, it was too late.
"We found out this morning that he passed away last night!!" an update on the account's page read. "I am at a loss for words we have no explanation of what happened all they will say is he get sick!! We need to get his body home anything helps please!! We really want to know what happened!"
Adkins is the latest American to die in the Dominican Republic. At least 10 deaths have occurred at resorts throughout the island, and many of them have involved the consumption of suspicious alcohol or the use of hotel amenities.
Last Monday, New York residentVittorio Carusodied after falling sick at the Boca Chica Resort in Santo Domingo. His sister-in-law toldFox Newslast week that "he was brought by ambulance to the hospital in respiratory distress after drinking something." Dominican officials laterdeterminedthat Caruso died from respiratory and heart failure.
Other victims include New Yorker Donette Edge Cannon, Pennsylvania woman Yvette Monique Sport, Maryland residentDavid Harrison, CalifornianRobert Wallace, Ohio residentJerry Curran, Pennsylvania residentMiranda Schaup-Werner, Maryland coupleEdward Nathaniel Holmes and Cynthia Day, California residentRobert Turlock, New York residentLeyla Coxand New Jersey residentJoseph Allen.
Dominican officials have since attempted to play down concerns over their country's safety and quality of life. In an interview withFox, Ministry of Public Health spokesman Carlos Suero hit back at critics who have suggested that foul play may be involved.
"People die all over the world," he said. "Unfortunately, very unfortunately for us, these tourists have died here. We had about 14 deaths last year here of U.S. tourists, and no one said a word. Now everyone is making a big deal of these." |
BMW board to decide on CEO's future at July meeting: Handelsblatt
FRANKFURT (Reuters) - The supervisory board of BMW will meet on July 18-19 to decide on the future of group CEO Harald Krueger, German newspaper Handelsblatt reported on Thursday.
Krueger's term is due to expire in May 2020 and it is customary for German companies to communicate a year before expiry whether a board member's contract will be extended. However, Handelsblatt, citing unnamed sources, said that a decision on Krueger's contract had been pushed back to July.
If Krueger's contract is not extended, there are two internal frontrunners for the top job, though there has been no formal decision, the paper reported.
One is Klaus Froehlich, head of development, and the other is Oliver Zipse, head of production, Handelsblatt said. Both currently sit on the management board.
BMW declined to comment.
The board meeting is scheduled to take place at BMW's factory in Spartanburg, South Carolina, Handelsblatt reported.
BMW, which has lost the position of biggest selling luxury brand to Mercedes, expects group pretax profit to fall by more than 10% this year.
(Reporting by Tom Sims and Edward Taylor; editing by David Evans and Susan Fenton) |
US CLO issuance just behind 2018’s record pace despite challenges
By Kristen Haunss
NEW YORK, June 27 (LPC) - Issuance in the US Collateralized Loan Obligation (CLO) market is just behind the record-setting pace of 2018 despite criticism of the asset class and higher spreads eating into returns.
There has been US$63.84bn of US CLOs arranged this year through June 26, just behind the US$65.62bn arranged during the same period in 2018, according to LPC Collateral data. A record US$128.1bn was issued last year.
Issuance in the CLO market, the largest buyers in the US$1.2trn leveraged loan market that companies depend on for financing, has been steady despite criticisms likening the asset class to investments at the root of the 2008 credit crisis. Central bank policy has frozen interest rates, which has led to investors fleeing floating-rate loans.
“The first six months have seen a fairly sanguine correction in the loan market and a normalization of an issuance phase that we expect is sustainable,” said Dagmara Michalczuk, a portfolio manager at Tetragon Credit Partners.
Monthly volume this year peaked in April when US$15.7bn of the funds was arranged after a slow start in January when just US$5.12bn was issued, according to the data. The outstanding US CLO market rose to US$613bn in May, a 124% increase since January 2013.
“The first quarter, specifically, was dominated by a lot of what we would characterize as ‘cleanup issuance’ from warehouses that were potentially initiated earlier in 2018,” she said. “The second quarter of this year has seen a much healthier trend of CLO liabilities tightening.”
Volume picked up following a December selloff amid increased global volatility with loan prices – as measured by a cohort of the 100 most widely held loans – falling 2.6%.
Some managers held 2018 deals for 2019 in hopes market conditions would improve – loan prices jumped 2.5% in the first nine days of January. Other firms chose to issue funds with shorter terms to counter rising spreads.
Spreads on the largest portion of the funds, the Triple A tranche, jumped to an average 138bp in February, the highest level since January 2017, according to the data. They have slowly tightened, hitting an average of 132bp in May and a handful of CLOs priced in the 120-130bp range in June. In May 2018, the average Triple A spread was 103bp.
The wide spreads can cut into returns paid to equity holders, who are paid last after all other debtholders receive their distributions.
Triple A spreads could tighten further, but that could lead to more reset activity, and that increased supply would then pressure how much further Triple As could tighten, according to John Wright, head of Bain Capital Credit’s CLO/structured products business.
With wider CLO spreads, reset volume is just US$6.2bn, down 83% this year through the end of May compared to the same period in 2018, according to LPC Collateral.
Despite challenges, investors still see opportunities.
CLO equity is attractive and BB rated tranches as a relative value pickup compared to high-yield bonds offer an opportunity, Wright said.
“CLO BBs, where you can buy them at a 700bp discount margin with a price discount, is a pretty interesting entry point,” he said.
REGULATORY FEEDBACK
Criticism of the asset class and the underlying loan market from legislators and regulators including former Federal Reserve (Fed) Chair Janet Yellen and Mark Carney, Governor of the Bank of England, has weighed on the market.
The Financial Stability Board (FSB) told G20 leaders in a June 25 letter that it is "closely monitoring” loan and CLO markets to obtain a fuller picture of exposures to these assets globally.
The Japanese Financial Services Agency (JFSA) finalized risk-retention rules in March, which also weighed on the market. Japanese banks account for about 10% of the US$750bn global CLO market, according to a Bank of England estimate.
In the US, after nine hikes in five years, the Fed last year stopped raising rates. In response, more than US$18bn has been pulled from loan funds this year through June 19, according to Lipper. Companies pay lenders a set coupon plus Libor, so lenders are paid more when rates rise, but lose that benefit when rates are held steady.
Retail loan outflows have been offset by CLO issuance, which has helped to keep a sanguine tone in the market, Michalczuk said.
“Market tone can shift quickly in either direction so we are very focused on executing things fairly quickly and taking advantage of opportunities that we clearly think are attractive,” she said. (Reporting by Kristen Haunss. Editing by Michelle Sierra and Jon Methven) |
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At US$18.42, Is Career Education Corporation (NASDAQ:CECO) Worth Looking At Closely?
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Career Education Corporation (NASDAQ:CECO), which is in the consumer services business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Career Education’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Career Education
The stock seems fairly valued at the moment according to my relative valuation model. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Career Education’s ratio of 20.36x is trading slightly below its industry peers’ ratio of 24.62x, which means if you buy Career Education today, you’d be paying a reasonable price for it. And if you believe that Career Education should be trading at this level in the long run, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Career Education’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Career Education’s earnings over the next few years are expected to increase by 51%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?CECO’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 CECO? Will you have enough conviction to buy should the price fluctuate below the true value?
Are you a potential investor?If you’ve been keeping tabs on CECO, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic forecast is encouraging for CECO, 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 Career Education. You can find everything you need to know about Career Education inthe latest infographic research report. If you are no longer interested in Career Education, 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. |
If the Economy's So Good, Why Is GDP So Low?
There’s something missing in today’s so-called historically strong economy: blowout GDP numbers.
During the last half of the past century, the Department of Commerce released some pretty impressive GDP reports. Here are the highest annual real GDP readings during each decade from 1950 until 2000: 8.7% (1950), 6.6% (1966), 5.6% (1973 and 1978), 7.3% (1984), and 4.7% (1999). Those are hefty numbers compared to the 21st century. Between 2001 and 2010, the highest real GDP recorded was 3.8% (2004), and from 2011 until today the highest yearly rate was 2.9%, which happened twice (2015 and 2018).
With an economy as complex as the United States, it’s never one thing, but here are a few elements contributing to tamer numbers on the GDP front.
“As we’ve matured as an economy, we consume 65% services,” says Marc Chandler, Chief Market Strategist with Bannockburn Global Forex. “Compare that to China, which has consumed more cement in the last 20 years than the U.S. has for the last 200 years.” That follows a pattern where economies will spend money on fixed capital first, which is a strong stimulus for growth. That includes roads, highways—and houses. “Let’s say you’re starting a family. First, you buy a house, then you buy furniture and TV’s. After that, you buy services.” And that brings us up to today: a largely service economy.
“Technology is changing everything,” Chandler says. “GM can now make a car in less than 20 man hours. A guy on the assembly line today is making multiple cars in a fraction of the time his grandfather did. And his hands are touching a computer screen, not touching parts of a car.”
He points out that new technology—think the internet and high-tech—saves capital and labor. “So while in the past you might have bought a computer to take the place of a typewriter (which took the place a pen or pencil) now, instead of buying a new computer you can buy new apps.” You get more computing power, but you don’t have to spend as much money.
Liz Ann Sonders, Chief Market Strategist forCharles Schwaband Co., also blames high levels of debt following the Great Recession. “Not only is this cycle a post-debt bubble cycle—it usually takes a good decade to work out of these—but more broadly, debt levels, especially federal government and business, are in the stratosphere. As debt moves higher and higher, economic growth tends to move lower.”
Part of the reason for that is the “crowding out” effect as individuals, companies and the government make payments on the debt. “The higher debt crowds out investment in capital goods,” she says, “reducing economic output relative to what it would be otherwise.” And as many households have spent the past ten years paying down their debt following the financial crisis, “that means spending, which contributes to GDP, lessens.”
Doug Duncan, Senior Vice President and Chief Economist atFannie Maeobserves that the post-World War II economic expansion was powered by the the movement of ‘Baby Boomers’ into the workforce, as well as household formation. That included the rise of women into the workforce, which peaked around the year 2000. More women entering the labor force created more wage earners, as well as more consumers, and played a role in increasing real GDP. But now, with Boomers turning 65-years-old at the rate of 10,000 each day—male and female—their departure from the workforce is not being fully replaced.
Additionally, “immigration has been slowed,” says Duncan, “thus slowing the growth of the workforce as well.” That’s part of the reason why there can be a million and-a-half more job openings (7.4 million according to theBLS Job Openings), significantly more than the number of people who could fill them (there are 5.9 million unemployed people according toEmployment Situation).
Duncan also believes government regulation has put a damper on business investment in recent years, that is until the Trump Administration dramatically slowed regulatory issuance and cut taxes. “That generated the largest ever recorded increase of optimism of small business,” he says, “but the administration also increased spending, adding to an already very high level of debt to GDP. Add to that the uncertainty faced by business investment plans when tariff discussions, which change daily,” and you have a recipe for slowing growth.
Whatever the reasons for the slower GDP rates of recent years, not even the Trump Administration predicts GDP on an annual basis as high as 4% in the coming years. And there are some who would argue that higher real GDP rates would increase the risk of a boom and bust cycle anyway. So as the Fed weighs the benefits of lowering interest rates to stimulate growth at the first signs of economic weakening—which may come as soon as the next Fed meeting (July 30th and 31st)—the prospect of blockbuster numbers may remain a fond memory from our country’s younger days.
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Let’s Be Clear: Blockchains Needs Interoperability To Become Widely Adopted At Last
Face it: blockchain isn’t that new, mysterious thing it used to be anymore — at this point, some companies even deliberately try to use alternative terms like DLT because they think that the original dub is overhyped. Nevertheless, blockchain is yet to solve its main dilemma. It has been more than 10 years since the original whitepaper’s release, and the technology is still not adopted at the industrial scale. While yes, numerous companies and governments across the world have been experimenting with the technology, the main consensus is that the technology is not “mature enough” . So what are the main reasons for this lack of adoption? Lack of interconnectivity between blockchains A 2018 Deloitte research estimated that there are as many as 6,500 active blockchain projects using a range of platforms with different coding languages, protocols, consensus mechanisms and privacy measures (this number is likely to get even higher every day, given that the industry is growing at a tremendous speed). For instance, dApp developers working on the Ethereum network cannot interact with their colleagues for the EOS chain, and vice versa. Of course, the crypto space is often praised for the lack of rules, but, as times shows, some standards — like protocols allowing to freely share information across all blockchain networks— have to be established. That would ensure that crypto projects can interact among each other and grow together, which would be beneficial for everyone involved. “Standardization could help enterprises collaborate on application development, validate proofs of concept, and share blockchain solutions as well as making it easier to integrate with existing systems,” the Deloitte paper concluded. Imagine a financial system where companies aren’t able to communicate and share information with each other: Amazon.com Inc's (NASDAQ: AMZN ) products don’t pop up under Microsoft Corporation's (NASDAQ: MSFT ) Bing search or on Facebook (NASDAQ: FB ), while Apple’s iPhones can’t be used for texting Android’s users. It seems oxymoronic, to say the least. Story continues What is decentralization truly about? The other reason is the lack of understanding of what decentralization really is. The advance of blockchain has made the idea of having a fully-functioning system where no trust is necessary seem more realistic: there is no possibility to break the rules, because the rules are now codified. That idea — presented in the form of a blockchain — could now be applied to many traditional systems like voting, real estate, financial services, etc. However, it is slightly more complicated. Some people think of decentralization as a binary attribute. When they see a crypto project titled X, they ask: “is X decentralized?”, while there is no ultimate, objective way to establish that. In reality, decentralization is a spectrum, so a better question would be “how decentralized is X?”. So how these issues can be tackled? A startup called Wanchain (a bilingual reference; meaning “thousands chains” in Chinese and referring to the concept of “wide area networks” in English) claims to have a solution to both of the above mentioned problems. Taking on the idea of wide area networks (WANs) — computer networks which extended over large geographical territories at the dawn of the internet age — Wanchain is a cross-chain blockchain infrastructure designed to facilitate asset transfers and host dApps, as per its whitepaper . wanchain The startup was founded in 2017 by Jack Lu, a long-time cryptocurrency expert who had previously worked as the former co-founder and CTO of Factom. The project’s ultimate goal is to “connect the world’s digital assets, unleashing the full potential of cryptocurrency and blockchain technology by allowing applications built on Wanchain to provide access to digital assets sitting on different blockchains,” as Lu puts it himself . At the core of Wanchain’s design is the cross-chain communication protocol which allows for data transfer between otherwise unconnected blockchains. In the most basic sense, the project’s team claim that they have advanced in using smart contracts to securely transfer data from one chain and represent it on the WAN chain. As a result, building on this network purportedly grants developers with access to many other blockchain platforms. In theory, it means that users could use one blockchain platform’s token on a different blockchain — like using Bitcoin (BTC ) for Ethereum dApps, unleashing many opportunities for interoperability and high levels of decentralization. Once there is connectivity between blockchains, the technology can finally continue its path to mass adoption. In the world where dApps can be reviewed by the entire crypto developers community regardless of what it chain they have been built on, and BTC can be spend on anything blockchain-based, crypto might finally become the undisputed king. As for Wanchain, its integration with EOS — one of the largest dApp networks — is scheduled for the near future. However, the startup seems to have even more ambitious plans: “We are looking at pretty much every public chain,” Lu has recently told media. The need for interoperability While it has been established that blockchain has an enormous potential as a technology, it is now important to find the way to untap it — and achieving interoperability seems to be the most logical step in this evolution. Once the communication between all chains is streamlined, enterprises and states will have all the more reason to employ the technology. As a result, the prospect of mass adoption won’t seem that distant. Disclosure: None. |
Ford, TD Bank Files Found Online in Cloud Data Exposure
(Bloomberg) -- Attunity Ltd., a company that manages and safeguards data, left internal files exposed on the internet for clients including Ford Motor Co., and the Toronto-Dominion Bank, in the latest example of sensitive information being publicly accessible on the web.
The incident revealed passwords and network information about Attunity as well as emails and technology designs from some of its high-profile customers. Researchers at UpGuard Inc., a cybersecurity company, found more than a terabyte of data left unsecured by Attunity last month on Amazon Web Services cloud-computer servers, according to a report they published Thursday.
Attunity is a data custodian that helps integrate clients’ information stored in various places so it can be analyzed easily. The company, based in Kfar Saba, Israel, is an “Advanced Technology Partner” of Amazon.com Inc.’s cloud division. Yet Attunity didn’t configure its cloud storage so it was locked to the public and left all of the data visible in plain text, Upguard said. The failure is similar to an incident Bloomberg News reported in April when digital platform Cultura Colectiva openly stored 540 million records on Facebook Inc. users in Amazon’s cloud.
Attunity’s data buckets included files about Ford’s information-technology architecture and details on internal project plans. Documents attributed to TD Bank included invoices, agreements between the companies, and files about the type of technology solution Attunity was configuring for the bank. There was also log-in information for a database Attunity created when it was trying to sign Netflix Inc. as a client in 2015. Netflix downloaded a demo of an Attunity tool that could have helped the streaming company switch databases, but never became a customer, according to a Netflix spokeswoman.
The centerpiece was a large collection of Attunity files including administrative and employee passwords to various systems, extensive employee email backups, a roadmap to the company’s virtual network and personal information about Attunity’s employees. The widespread presence of login credentials swelled the potential harm of the data leak, according to UpGuard.
“It’s a category of data breach we refer to as a keys-to-the-kingdom exposure,” said Chris Vickery, director of cyber-risk research at UpGuard.
So far, UpGuard said it had no evidence that any bad actors took advantage of the information when it was accessible online. Attunity removed public access to the buckets the day after UpGuard informed the company about the breach in May, but it took several weeks before Attunity asked the cybersecurity company more detailed questions about the data exposure, according to Vickery.
Attunity said current evidence indicated UpGuard was the only entity that accessed the data.
“We are still in the process of conducting a thorough investigation into the issue and have engaged outside security firms to conduct independent security evaluations,” Derek Lyons, a spokesman for Attunity’s parent company, Qlik Technologies Inc., said in a statement. “Attunity customers deploy and operate the software directly in their own environments, and therefore Attunity doesn’t store or host sensitive customer data. Upon becoming aware of the issue, Qlik applied its security standards and best practices to the Attunity environments, including monitoring by Qlik’s 24x7 security operations center. We take this matter seriously and are committed to concluding this investigation as soon as possible.”
TD Bank said it was also trying to assess the impact of the data exposure in a timely manner.
“We are currently investigating this matter and, thus far, we have found no evidence that our customers' personal and financial information was exposed,” said Matthew Doherty, a spokesman for the bank. “We also have safeguards in place that are designed to help deter unauthorized access and use of our customers' personal and financial information.”
Ford said it was never notified about a data exposure. “We know the kind of information we provide to companies like Attunity, and we don’t believe there’s an issue,” said Monique Brentley, a spokeswoman for the carmaker.
Netflix said Attunity never had access to the company’s technology systems.
Attunity is relatively small, posting sales of $86.2 million for the year that ended Dec. 31, but it has a collection of big-name clients, such as drugmaker Pfizer Inc., Mercedes-Benz USA and Union Bank. In total, 44 members of the Fortune 100 and more than 2,000 organizations around the world use Attunity’s services, the company says on its website.
The data-migration company partners with many IT companies, including Microsoft Corp., Alphabet Inc.’s Google Cloud, Oracle Corp., and International Business Machines Corp., according to its website. Attunity had been publicly traded until May, when Qlik bought the company for about $560 million. Radnor, Pennsylvania-based Qlik, a data-analytics company, is owned by private equity firm Thoma Bravo LLC.
“It’s embarrassing for a company marketing services by saying we’ll help you use the cloud properly to make a mistake when they’re using it,” Adam Chlipala, a professor of computer science at the Massachusetts Institute of Technology, said in an interview. “At the same time, finding these types of AWS errors in a complex environment is not always obvious.” Since Amazon has invested in more tools to spot these problems, he expects that “over time, there’ll be fewer and fewer of these data breaches.”
UpGuard couldn’t confirm the full size of the Attunity information, which dated to September 2014 and included 750 gigabytes of compressed email correspondence. Backups of some employees’ accounts for Microsoft OneDrive – a file-hosting service – were also present. Besides system passwords, the researchers also found contact information for sales and marketing customers and targets, and project specifications.
UpGuard also found personal information about 354 of Attunity’s employees, such as U.S. social security numbers, cash-and-stock compensation and dates of birth. Attunity had 298 employees through the end of last year, according to data from a regulatory filing.
It would have been easy for Attunity to conceal the data from public view from the start, UpGuard’s Vickery said.
“It’s a one-to-three click fix,” he said. “It illustrates that there were systemic issues with security.”
To contact the authors of this story: Nico Grant in San Francisco at ngrant20@bloomberg.netJosh Eidelson in Palo Alto at jeidelson@bloomberg.net
To contact the editor responsible for this story: Andrew Pollack at apollack1@bloomberg.net
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Instagram Is Finally Opening Up Some of Its Best Advertising Real Estate
Facebook(NASDAQ: FB)is starting to "explore" new options for ads on Instagram. The subsidiary announced on Wednesday that it's going to expand advertisements to the Explore tab in its app, the section where users go to discover new content from accounts they don't already follow. More than half of Instagram's billion users visit the section every month.
The decision follows Facebook CFO Dave Wehner telling analysts there's not muchroom to increase ad impressionsin the core Instagram feed earlier this year. Meanwhile, the company is working to grow ad spend on Stories, which have become a massive source of audience engagement.
But while Stories require a significant adjustment, ads in Explore can work with similar formats and creatives as ads in the feed. On top of that, Explore can offer advertisers a lot more value by enabling businesses to reach potential customers when they're most receptive to their message.
Image source: Instagram.
Users go to the Explore tab when they're looking for something new. That behavior in and of itself ought to make businesses salivate at the possibility of advertising in that tab. Users will be most receptive to an advertiser's message when they're looking for something new.
Explore ads ought to have higher engagement rates than standard feed ads due to the nature of the section. But there's a second user behavior within the Explore tab that could be even more valuable.
When users go to the Explore tab, they can search for certain topics of interest. That can help advertisers target users based on keywords and provide extremely timely advertisements.
It's this mechanism that makes Google's ads so effective. TheAlphabet(NASDAQ: GOOG)(NASDAQ: GOOGL)subsidiary knows exactly what its users are looking for at that exact moment, and it can show them an ad related to that topic or product. Explore ads give Instagram advertisers that same opportunity. The addition of shoppable posts and the recent introduction ofCheckout on Instagramcould make Explore the perfect section for fashion and apparel advertisers.
Overall, Explore ads will be more engaging and more relevant to users. That should translate into higher average ad prices for those impressions.
Instagram's Explore tab remains one of the few pristine sections of Facebook's domain untouched by advertisements. If ads become too intrusive, users may stop using the feature altogether. While it might not sound like a huge loss for Instagram -- declining engagement on a heretofore unmonetized section of the app -- remember that Explore helps users discover new content to follow. Users inevitably follow some of those discoveries, ultimately increasing engagement in the core feed.
If engagement with Explore declines, Instagram could see engagement in the core feed -- currently its main source of revenue -- decline as well. That's why the company is being cautious with the rollout of Explore ads. "We're introducing ads in Explore slowly and thoughtfully in the coming months," the company wrote in a blog post.
Done right, Explore ads have the potential to become a major revenue source for Instagram alongside feed and Stories ads. Done wrong, it has the potential to decrease engagement throughout the app.
Facebook is running out of levers to pull to grow its flagship app's advertising revenue. User growth is starting to slow down and engagement fell followingchanges to the news feedalgorithm last year. Investments inWatchare showing some mild success but still represent a small opportunity compared to the massive amounts of engagement on Instagram.
Instagram will account for the majority of Facebook's revenue growth this year, and it will only increase in importance going forward, according to Keybanc analyst Andy Hargreaves. He estimates Instagram will account for 70% of the company's incremental revenue by the fourth quarter next year.
Offering businesses advertising space in the Explore tab could be just the start. The company could tailor its ad products in the section to make them even more effective and fuel further revenue growth long term. As Instagram becomes a bigger piece of Facebook's business, investors need to pay close attention to the ad products in the app.
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Who Has Been Selling Thermo Fisher Scientific Inc. (NYSE:TMO) Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sellThermo Fisher Scientific Inc.(NYSE:TMO), you may well want to know whether insiders have been buying or selling.
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Thermo Fisher Scientific
In the last twelve months, the biggest single sale by an insider was when the Senior VP & President of Customer Channels, Gregory Herrema, sold US$1.8m worth of shares at a price of US$247 per share. That means that even when the share price was below the current price of US$292, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 25.9% of Gregory Herrema's holding.
We note that in the last year insiders divested 18139 shares for a total of US$4.5m. Insiders in Thermo Fisher Scientific didn't buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Thermo Fisher Scientific better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Over the last three months, we've seen significant insider selling at Thermo Fisher Scientific. In total, C. Harris dumped US$74k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Thermo Fisher Scientific insiders own about US$242m worth of shares (which is 0.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
An insider sold stock recently, but they haven't been buying. And even if we look to the last year, we didn't see any purchases. But it is good to see that Thermo Fisher Scientific is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course,the future is what matters most. So if you are interested in Thermo Fisher Scientific, you should check out thisfreereport on analyst forecasts for the company.
Of courseThermo Fisher Scientific may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Celebrate 30 years of the show about nothing at the Seinfeld Experience
If the bustling streets of New York City have you screaming “Serenity Now!,” get ready for a respite. The Seinfeld Experience is headed to the Big Apple this fall in celebration of the show’s 30th anniversary, giving fans a behind-the-scenes look at the show about nothing. The attraction will include interactive exhibits featuring iconic costumes from the sitcom’s nine seasons on NBC, memorabilia, set recreations, props, yada, yada, yada. A retail store will boast exclusive and special edition merchandise available for purchase. No word if loaves of marble rye, chocolate babkas, muffin tops, or big salads are on the sales list. NBC Comedian Jerry Seinfeld , creator and star of the series, expressed his excitement in the most Jerry Seinfeld way about fans now being able to experience what it was like to be part of the Seinfeld set during its run from 1989 to 1998 — thanks to event producers Superfly and Warner Bros. Consumer Products. “Because I am Seinfeld, for a long time I was the only person to actually have the Seinfeld experience. Now, these crazy Superfly people are going to make it so lots of people can interact with our silly 90’s TV show,” Seinfeld said in a statement. “All I can say is, in the general context of the world we live in, this now seems completely normal.” The Seinfeld Experience will be located in Manhattan’s Gramercy neighborhood, with tickets available for purchase in the coming months. Before you know it, you’ll be able to say, “I’m out there Jerry, and I’m loving every minute of it.” Related content: How many Seinfeld series finale guests do you remember? Here’s how Patton Oswald got his first acting job on Seinfeld Jerry Seinfeld teases Seinfeld revival |
Ready for another Drop on the USD?
Correction onthe USD continues. It is still just a correction though. Not that it was unexpected as USD has serious troubles since the very beginning of the month so with such a heavy drop, chances for a correction were constantly increasing.
With the most recent rises, Dollar Index is testing the broken up trendline as a closest resistance. Test so far is positive for the sellers, as the price stays below that line. With the current momentum, the target remains on the orange area, slightly below 94.4
EURUSD also does not allow the USD to spread the wings. The main pair is above the neckline of the Inverse Head and Shoulders Pattern and above the horizontal support on the 1.133. As long as we stay above those two, the sentiment remains positive.
USDCHF managed to set new yearly lows and then bounced higher. For us, it is just a dead cat bounce and the price has no bigger chances for a major reversal…yet. USDCHF still stays below major dynamic and horizontal resistances so the outlook has to be pessimistic.
This article is written by Tomasz Wisniewski, a senior analyst atAlpari Research & Analysis
Thisarticlewas originally posted on FX Empire
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Should You Be Worried About Insider Transactions At Thermo Fisher Scientific Inc. (NYSE:TMO)?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inThermo Fisher Scientific Inc.(NYSE:TMO).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Thermo Fisher Scientific
In the last twelve months, the biggest single sale by an insider was when the Senior VP & President of Customer Channels, Gregory Herrema, sold US$1.8m worth of shares at a price of US$247 per share. That means that an insider was selling shares at slightly below the current price (US$292). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 25.9% of Gregory Herrema's holding.
We note that in the last year insiders divested 18139 shares for a total of US$4.5m. Thermo Fisher Scientific insiders didn't buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
The last three months saw significant insider selling at Thermo Fisher Scientific. In total, C. Harris sold US$74k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Thermo Fisher Scientific insiders own about US$242m worth of shares (which is 0.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
An insider hasn't bought Thermo Fisher Scientific stock in the last three months, but there was some selling. And even if we look to the last year, we didn't see any purchases. But it is good to see that Thermo Fisher Scientific is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
'The Points Guy' Brian Kelly donates 3M miles to help LGTBQ refugees come to the US
The daily newsletter from "The Points Guy" hits our inbox every morning, with each email offering some pretty life-changing tips on credit card points, airline miles, travel advice and unique investment opportunities. But if you don't knowtheguy behind "The Points Guy," you probably should give the founder a quick Google search, especially due to his incredibly formative work within the LGTBQ community.
Since 2010, Brian Kelly has been using his expertise to provide sound advice for readers to maximize and expand their travel experiences. What started off as a blog grew to a full-fledged lifestyle website, complete with a 7-million-a-month user count and an impressive brand umbrella. "The Points Guy" has steadily risen to become the go-to website for everything on points and miles.
And while "The Points Guy" as an entity is the one usually making headlines for its proficiency, this time it's Kelly making headlines for his role within the LGTBQ community. Just in time forPride Month, the CEO is working with Rainbow Railroad and Chase to help raise funds for persecuted LGTBQ people around the world to use travel for good.
Kelly, who is openly gay, first heard about the project through a dinner hosted by Anthony DeFilippis, one of Rainbow Railroad's board members. "I had just read about the gay concentration camps in Chechnya and as I sat at this dinner surrounded by other activists, I felt more and more inspired to help our LGBTQ+ brothers and sisters in need around the world," he explained to AOL.
"Seeing firsthand how travel could change someone’s life, I wanted to use my expertise and tap into the TPG community to help with the logistics and cost of bringing a survivor to safety," he continued.
Since joining the project in 2017, the entrepreneur has donated over 3 million miles and over $250,000 to the organization to bring 20 people from Chechnya to safety.
"I have been lucky to travel the world and visit countries like Russia and Egypt, where these horrible things are happening to many people who are struggling and need help. I couldn’t imagine experiencing the violence, persecution and injustice that others endure around the world every day and I want to continue helping to save lives and ultimately, raise awareness," he continued.
Kelly concluded, "Since starting The Points Guy, it has been my vision to use travel as a force for good and helping LGBTQ+ people around the world escape to safety is just one example of how travel can change lives."
You can learn more about theRainbow Railroadand learn how to get involved here. |
Old Navy CEO: Open for Business Should Mean Open for Everyone
I start each day by reading customer feedback, and when I come across quotes like this one, I’m stopped in my tracks: “I was 14 years old when Old Navy opened up in my town in 1994. It was the first place I felt like I could find clothes for me. … Honestly, Old Navy is a part of my turning into an adult and figuring out my style evolution.”
I was that customer growing up. I never felt like there was a store or brand that was meant for me. Everything was too expensive, too short for my tall frame. I didn’t see myself reflected in any of the marketing staring back at me, asking me to come and shop. And because of that, rather than enjoy retail therapy, I was left feeling like I didn’t belong.
That is what lights a fire in me. It’s a reminder of why I do what I do, and why Old Navy exists.
This year, Old Navy celebrates its 25th birthday. As our team began thinking about how to commemorate this exciting milestone, we knew the best way to celebrate our brand, the mission that drove us from the beginning and what has held true ever since, is through our commitment to belonging.
Since 1994, we’ve set out to democratize style. To us, that means everyone is welcome and should feel like they belong the moment they enter our stores, try on our clothes, and experience the Old Navy brand. No customer is the same as any other, and that’s exactly as it should be. Income, race, ethnicity, gender, sexual orientation, national origin, immigration status, religion, disability status, or shape should never be a barrier to feeling and looking your best. We believe what you wear plays a role in celebrating your values. Everyone deserves to feel confident, empowered, and equal.
As one of the most recognized brands in the world with a platform that reaches millions, it’s our job to ensure the dialogue around equality and sense of belonging remains open and ongoing. And the work we’re doing to further representation and equality will never be done.
In that spirit, Old Navy is joining forces withOpen to All—a coalition of businesses, civil rights and faith leaders, and communities across the country affirming their belief that when businesses open their doors to the public, they should be open to everyone on the same terms. (Businesses can join the movement and sign the pledge that their business is Open to Allhere.) Our stores across the U.S.—and coming soon, in Mexico and Canada—proudly display an Open to All window decal to serve as a sign to all who work for and shop our brand that Old Navy is a place where everyone belongs—no matter who you are, who you love, what you believe, or where you live.
Our wish on our 25th birthday is that all retailers will help ensure customers feel welcome in their places of business. We can all play a part to ensure that belonging is not just a trend.
Sonia Syngal is the president and CEO of Old Navy.
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How to Buy Amazon Stock
How to buy Amazon stock Amazon is not only one of the most successful online retailers, but also one of the few trillion-dollar U.S. companies to offer stocks. Founded in 1994 by CEO Jeff Bezos, the company offers an array of products and services to customers on a global level. With its revenue and share price skyrocketing between 2017 and 2018, the company’s growth rate has attracted both rookie and experienced investors. But how do you buy stock in Amazon? Below, we explore options for purchasing Amazon shares. If you want more hands-on guidance on your investment decisions, consider using a financial advisor matching tool to pair up with an expert in your area. How to Buy Amazon Stock With a Brokerage Account Amazon’s stock is available to any investor of age — 18 in some states or 21 in others — who wants to invest in the stock market. The method through which potential investors can acquire a share, however, is important to consider. Many companies offer direct investment options for their stock, but those interested in purchasing through Amazon, however, must utilize a brokerage account to become a shareholder. Firms offering brokerage accounts typically provide a wide range of investment options, including bonds, stocks, mutual funds and exchange-traded funds (ETFs). Furthermore, the fees and investment selections differ within each brokerage. Therefore, you should carefully select the firm that works best with your financial goals. Once you’re ready to make an order, you’ll do so through your broker. To purchase an Amazon share, you’ll need to use Amazon’s trading ticker on the Nasdaq — AMZN. The stock trades will then fall into one of two categories: market or limit orders. A market order allows you to purchase the stock at its current cost. A limit order, on the other hand, allows you to set the maximum price you’re willing to pay for a share. Therefore, if a stock exceeds that specified amount, the order won’t happen. However, if you can’t afford to purchase a full share, you can also invest in fractional shares through online brokerages such as Stockpile or Motif Investing . These services allow investors to purchase a partial share of equity . Whether the brokerage you consult is traditional or online, it’s important to consider each’s fees and minimum investment requirements before becoming a shareholder. Brokerage Comparison Brokerage Firm Trading Fees Minimum Best For Robinhood Read Review $0 $0 – Mobile/online traders – Self-sufficient investors Merrill Edge Read Review $6.95 $0 – Bank of America account holders – Customer support users TD Ameritrade Read Review $6.95 $0 – Online traders – Customers who value support How to Buy Amazon Stock With a Financial Advisor Story continues Buying Amazon stock on your own is not your only option. Markets can be volatile, and your strategy can change course amid highs and lows. Whether you’re new to the stock market or an experienced investor, a financial advisor can help you make better investment decisions. Advisors can help you determine how to structure your portfolio , or which investment types to use. If you’re looking for expert support with your financial goals, hiring a financial advisor could be right for you. If you tell an advisor you want to invest in Amazon, he or she can help you do it. Your financial advisor can also help tell you when its time to sell your shares, which can be a tricky decision. Overview of Amazon Headquartered in Seattle, Washington, Amazon is an online retail and e-commerce company that provides both national and global services to its customers. Though the company initially began as a digital bookstore, it has grown to offer cloud services and other retail products. In addition, the company has acquired other businesses such as Whole Foods Market and Zappos. Amazon functions through three business segments: North America, International and Amazon Web Services (AWS). Amazon Overview Amazon North America & International – Retail products – Clothing, shoes, jewelry – Electronics – Food and groceries, pet supplies – Beauty and health – Automotive and more Grocery – Whole Foods Market Subscription and Streaming – Amazon Prime, Amazon Music Amazon Web Services (AWS) – Echo and Alexa – Kindle E-readers & Books – Advertising and publishing – AWS Marketplace – Storage and database services Amazon’s Financial Profile Amazon is one of the many stocks that’s received blue-chip status. In other words, this categorization means that the company’s stock is highly reliable. Typically, businesses that perform the strongest in the market earn that title. However, you should also take note of the company’s share price before making an investment. Amazon’s stock price currently runs around $1,900 per share, so it’s important to consider your long-term investment goals before purchasing the stock. It may also help you to review Amazon’s Form 10K. The Form 10K is an annual report that all public companies must file with the SEC. In addition, it outlines everything from a company’s total revenue and assets to its risk factors and liabilities. How to buy Amazon stock (Past performance does not guarantee future results. Chart from June 2019) Should You Buy Amazon Stock? Amazon’s share price runs considerably high, so you’ll want to consider your long-term investment goals before becoming a shareholder. While the company retains blue-chip status, with a history of significant growth, it’s also important to be mindful of some of its competitors. Companies like Microsoft and Walmart also offer competitively successful stocks. And, similar to Amazon, both companies specialize in either e-commerce, retail or cloud computing. Though Amazon has recently experienced significant growth in shares, no company is insusceptible to risk . Many factors, such as competition, climate and economy, ultimately affect the performance of a stock. Therefore, potential investors should carefully analyze a company from a holistic standpoint when considering buying. However, Amazon could be a great option for those looking for long-term financial gain. The company’s global customer base and diversified product have ultimately brought it much success. If you’re interested in stable and potentially promising investments, Amazon could be right for you. Tips to Become a Better Investor How to buy Amazon stock If you’d like to invest, but aren’t exactly sure how much to spend, SmartAsset’s investment calculator can help you assess the potential long-term effects of your investment based on your financial goals. You can get a closer look at the possible turnover of your investment, as long as you’ve got your starting investment sum, the amount and the rate at which you aim to contribute and your expected rate of return. If you’re new to the investment market and would like to create and grow a strong portfolio, a financial advisor could be a great option for you. Financial advisors can help you with understanding the different investment types, investment strategies and so much more. SmartAsset’s financial advisor matching tool will pair you with up to three local financial advisors who suit your particular needs. Photo credit: ©iStock.com/AdrianHancu, Yahoo Finance, ©iStock.com/Jirapong Manustrong The post How to Buy Amazon Stock appeared first on SmartAsset Blog . Related Articles: How Are Profit Margins Defined and Measured? What Are the Hours of the Stock Market? The Securities and Exchange Commission (SEC) View comments |
2019 Echemi Food Ingredient Sourcing Meeting & Food Industry Forum Comes to a Successful End
SHANGHAI, CHINA / ACCESSWIRE / June 27, 2019 /2019 Echemi Food Ingredient Sourcing Meeting & Food Industry Forum was held at Hall 4, NECC, Shanghai on June 20. David Zhang, the founder of Echemi, and industry experts from China, Pakistan, Canada, the United Kingdom and Indonesia were invited to share the development trend of the food industry. This meeting provided face-to-face communication opportunities for more than 30 global buyers of food ingredient industry and 100 Chinese suppliers, many of whom reached cooperation intention.
At 9:30 a.m., David Zhang firstly made an opening speech, showing the warmest welcome to all the distinguished guests. And then, he made an in-depth analysis of the food market.
(David Zhang was making the opening speech.)
"From 2014 to 2018, the food additives and ingredients industry has developed steadily. According to statistics, in the past five years, the variety output of major enterprises in the food additive industry has increased from 9.47 million tons to 12 million tons, with an average annual growth rate of 6.3%. Sales of main food additive products increased from 93.5 billion yuan to 116 billion yuan, with an average annual growth rate of 6.0%. In the same period, the export volume remained around 3.6 billion to 3.7 billion dollars." David Zhang said on the opening ceremony.
Professor Steven Liu from Tunghai University delivered a speech entitledTrends of NaturalPreservative Developments and Application. In his speech, Professor Liu compared the food storage in ancient and modern time, and introduced innovative trend of food storage. Taking poly-lysine, nisin and natamycin as examples, Steven Liu pointed out that the current trend of preservatives should be "natural, healthy and scientific".
(Professor Steven Liu was making a speech.)
Mr. Mohammad Fahim from Pakistan gave a detailed analysis about the Pakistani food ingredients market, including beverages, bakery, healthy food, and Halal. Also, Mr. Fahim shared some data about Sino-Pakistan import/export volume under the Belt and Road Initiative.
(Mr. Mohammad Fahim was making a speech.)
Mr. Fahim pointed out, "Over the past five years since the launch of CPEC, Pakistan's GDP has grown by an average of 4.77%, and foreign direct investment in Pakistan has increased by about 240%. According to incomplete statistics, 17 projects in CPEC alone contribute $930 million in tax revenue to the Pakistani government."
Dr. Liu Jian from Huiyang Biological Technology Co., Ltd., China. delivered a speech about the food ingredient, trehalose. From its discovery, features, functions, application and production, trehalose, a food material with high stability, was introduced in detail.
(Dr. Liu Jian was making a speech.)
And Mr. Anwar from Canada presented a speech entitledWhat we need from Chinese suppliers to Improve. In his speech, Mr. Anwar mentioned that Chinese chemical companies were now leading the world and had made great progress in production technology.
(Dr. Anwar was making a speech.)
Subsequently, Echemi invited three guests to participate in the interactive Q&A session. The host had in-depth discussions with Mr. Manzur from ACI, Bangladesh, Mr. Henri from Kanegrade, Finland and Ms. Vania from Indonesia on enterprise qualification, advantages and improvements of Chinese suppliers, prediction of future trend of food industry and online transaction. Mr. Henri noted, "China is a big producer of food raw materials. Eighty percent of the world's vitamin C and xanthan gum are produced in China, so despite the long time of transportation, China is still the best choice for European importers."
(Q&A session)
The sourcing meeting began in the afternoon. In three rounds of sourcing meeting, overseas buyers got information about suppliers, and suppliers also demonstrated their production and sales capabilities. At the meeting, global buyers of food ingredient industry held friendly exchanges with Chinese suppliers, many of whom reached cooperation intention.
2019 Echemi Food Ingredient Sourcing Meeting & Food Industry Forum gets a wonderful completion. As a leading part of chemical business in China and a professional B2B platform, Echemi aims to provide better products and services to global chemical companies In the future, Echemi will provide more personalized services for buyers and suppliers with various requests. There is a lot to look forward to.
Company Name: Echemi Group
Contact Person: Betha
Email:info@echemi.com
Phone: +86-0532-80905922 / 89072278
Address: 12F, HuaYin Mansion, No.5, Donghai West Road, Qingdao, China
City: Qingdao
Country: China
Website:https://www.echemi.com
SOURCE:Echemi Group
View source version on accesswire.com:https://www.accesswire.com/550158/2019-Echemi-Food-Ingredient-Sourcing-Meeting-Food-Industry-Forum-Comes-to-a-Successful-End |
Bitcoin Price Takes Another Tumble, Shedding Nearly $1K in 20 Minutes
Bitcoin’s price continued a downward trend Thursday, falling nearly $1,000 in a 20-minute period according to data from Coinbase Pro, which indicated the world’s largest cryptocurrency by market cap dropped from $11,700 at 16:05 UTC to $10,800 by 17:44 UTC.
While the price briefly stabilized, it fell as far as $10,346, according to Coinbase data. As of press time, bitcoin’s price hovered around $10,600.
The latest slump coincided with massive losses in the price of the overall cryptocurrency market, with the majority of the top 100 cryptocurrencies by market cap seeing their prices fall as well.
Related:Down $1.7K: Bitcoin’s Price Dives Amid Crypto Market Boost
Bitcoin SV was the biggest loser in the top 10, with its price falling nearly 25 percent on the day, according to data from CoinMarketCap.
The overall crypto market shed some $80 billion over the past 24 hours.
This is the second day in a row that bitcoin’s price has slumped, after the frenzy which coincided yesterday withCoinbase’s brief outage. At the time, bitcoin’s price fell more than $1,700 in 15 minutes.
Nikhilesh De contributed reporting.
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Exchange dropimage via Shutterstock
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Donald Trump Lashes Out At Supreme Court Census Citizenship Question Ruling
President Donald Trump on Thursday lashed out at a Supreme Court ruling that effectively blocked his administration from adding a question about citizenship to the 2020 U.S. census , suggesting he could delay the survey. Seems totally ridiculous that our government, and indeed Country, cannot ask a basic question of Citizenship in a very expensive, detailed and important Census, in this case for 2020. I have asked the lawyers if they can delay the Census, no matter how long, until the..... Donald J. Trump (@realDonaldTrump) June 27, 2019 .....United States Supreme Court is given additional information from which it can make a final and decisive decision on this very critical matter. Can anyone really believe that as a great Country, we are not able the ask whether or not someone is a Citizen. Only in America! Donald J. Trump (@realDonaldTrump) June 27, 2019 Kelly Laco, a spokesperson for the Department of Justice, said, We are disappointed by the Supreme Courts decision today. The Department of Justice will continue to defend this Administrations lawful exercises of executive power. Trumps tweets came hours after the Supreme Court, in a surprise move, declined to allow his administration to add a citizenship question to the census. While the Trump administration said it needed the question to better enforce the Voting Rights Act, the court said that rationale seemed contrived. The court ordered the case back to a lower court for further review, which appeared to effectively block the question because the Census Bureau says the forms for the survey need to start being printed on July 1. A census to count every living person in the United States is mandated by the Constitution to take place once every 10 years. The official date for the 2020 census is April 1, though people can begin to respond in the weeks before that day. Preparations for the census have been underway for years. Story continues Civil rights groups sued the Trump administration over the citizenship question, arguing that it would discourage people of color from participating and effectively give more power to Republicans and non-Hispanic whites. By the Census Bureaus own analysis , millions of people could be left out. Activists say that because census responses power redistricting, inaccurate information could lead to dramatic electoral consequences. If the citizenship question is part of the survey and there is a sizable undercount, states with large immigrant populations could very well lose political representation in Congress, according to the American Civil Liberties Union. Depressing census response rates in already underrepresented communities will allow politicians to draw even more skewed legislative districts and further dilute the political power of these communities. Activists cheered Thursdays decision but cautioned that some damage may have already been done. We know that even the specter of the citizenship question has intensified this climate of fear. And even in the best of times without a citizenship question, the work to get to an accurate count is one of the most challenging operations in peacetime America, said Vanita Gupta, president and CEO of the Leadership Conference on Civil and Human Rights. After todays decision, which we all hail as a huge win for democracy in this country, we also know our work isnt over. This story has been updated to include comment from the Justice Department. Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost . |
Betting On Bitcoin? A Look At Some Large Overstock Option Trades
Bitcoin prices have been on fire in recent weeks, andOverstock.com Inc(NASDAQ:OSTK) has been along for the ride. Overstock shares are up more than 44% in the past week, and at least one large option trader believes the Overstock rally has legs.
The Trades
On Thursday morning,Benzinga Prosubscribers received a series of options alerts related to Overstock.
At 9:01 a.m., a trader bought 1,000 call options with a $12.50 strike price expiring on Sept. 20 at the ask price of $2.312. The trade represented an $231,200 bullish bet at a break-even price of below $14.81.
At 9:24 a.m., there was another buy of Overstock call options with a $13 strike price expiring on July 19 at the ask price of $1.849. The seller added 1,001 call options, a bullish bet worth $185,084.
A final trade went through a little over hour later when a trader purchased an additional 1,500 Overstock call options at a $13 strike price that expire on July 19. The calls were purchased at the ask price of $1.851 and represent a roughly $277,650 bullish bet with a break-even price of $14.85.
After all was said and done, the trading action represented an aggregate bullish bet of roughly $693,934 on Overstock.
Why It's Important
Even traders who stick exclusively to stocks often monitor option market activity closely for unusually large trades. Given the relative complexity of the options market, large options traders are typically considered to be more sophisticated than the average stock trader.
Many of these large options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock.
Unfortunately, stock traders often use the options market to hedge against their larger stock positions, and there’s no surefire way to determine if an options trade is a standalone position or a hedge. In this case, given none of the Overstock trades exceeded $277,000 in size, it’s unlikely they were institutional hedges.
Betting On Bitcoin
Assuming Tuesday’s trading action did not represent hedging, options traders seemed decidedly bullish about Overstock and/or bitcoin.
Overstock began keeping 50% of the bitcoin it received in payments as an investment back in 2017. The company announced last November it would sell its retail business and pivot exclusively to blockchain technology in 2019.Earlier this week, Overstock CEO Patrick Byrne said the company has at least two “attractive buyers” interested in acquiring its e-commerce platform.
In addition, Overstock subsidiary tZERO announcedon Thursdayit's launching the tZERO Crypto App, which will serve as both a digital wallet and exchange service provider. The initial app will support both bitcoin and Ethereum upon launch.
After a horrendous year in 2018, bitcoin prices have rallied 203% in 2019 to above $11,000 for the first time since February 2018. The bullish option traders on Thursday may be making a bet that the bitcoin rally continues in the near future, driving upside for Overstock shares. They could also potentially be placing a bet on a bidding war for Overstock’s retail business given the CEO’s recent comments.
Overstock traded around $13.19 per share at time of publication.
Related Links:
Options Trader Makes Aggressive Bullish Play On Stars Group Rebound
How To Read And Trade An Options Alert
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
'We only want to sell our oil,' Iran official says before nuclear talks
By Francois Murphy VIENNA (Reuters) - Iran's main demand in talks aimed at saving its nuclear deal is to be able to sell its oil at the same levels that it did before Washington withdrew from the accord a year ago, an Iranian official said on Thursday. Iran is threatening to go over the maximum amount of enriched uranium it is allowed under the deal in retaliation for crippling U.S. economic sanctions imposed in the past year. It is just days away from that limit, diplomats say, and going over it could unravel the accord. Senior officials from Iran and the deal's remaining parties will meet in Vienna on Friday with the aim of saving the agreement. But with European powers limited in their ability to shield Iran's economy from U.S. sanctions it is unclear what they can do to provide the large economic windfall Tehran wants. "What is our demand? Our demand is to be able to sell our oil and get the money back. And this is in fact the minimum of our benefit from the deal," the official told reporters on condition of anonymity. "We are not asking Europeans to invest in Iran... We only want to sell our oil." European powers and Iran have set up a mechanism for barter trade called Instex that would net out amounts at either end but it is not yet operational and diplomats have said it will only be able to handle small volumes for items like medicine, not the large oil sales Iran is seeking. "Europeans should either buy oil from us or give its money (price) to us," the official said. "Instex is a netting company. It is supposed to net the accounts between importers and exporters. And the only export of Iran to Europe is oil. So if they don't buy oil from us there is no money to be netted between import and export." Until its demand is met, Iran will continue on its current path and go over limits of the deal one by one, starting with the uranium enrichment level, he said, adding that those steps could also be undone quickly, such as by 'downblending' enriched uranium with natural uranium to reduce its stock. Story continues KILL THE DEAL? Going over such central limits of the deal could prompt European powers to re-impose sanctions through a process known as 'snapback'. The official said if that happened the deal would be dead. "I believe and I think the Europeans are wise enough not to kill the deal for something which is easily reversible," he said. If the Europeans did, however, go to the U.N. Security Council to carry out the snapback process, that could prompt Iran to abandon its current policy of engagement and pull out of the nuclear Non-Proliferation Treaty (NPT) as North Korea did, he said. "Going out of NPT doesn't happen immediately. It needs three months' notification in advance. Even in that scenario there is still a chance for diplomacy," he said. (Reporting by Francois Murphy, Editing by Andrew Heavens, William Maclean) |
How Evergreen Gaming Corporation (CVE:TNA) Can Impact Your Portfolio Volatility
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If you're interested in Evergreen Gaming Corporation (CVE:TNA), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. 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. 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.
View our latest analysis for Evergreen Gaming
Looking at the last five years, Evergreen Gaming has a beta of 1.76. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If this beta value holds true in the future, Evergreen Gaming shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how Evergreen Gaming fares in that regard, below.
Evergreen Gaming is a noticeably small company, with a market capitalisation of CA$51m. Most companies this size are not always actively traded. It has a relatively high beta, suggesting it is fairly actively traded for a company of its size. Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies.
Since Evergreen Gaming tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. In order to fully understand whether TNA is a good investment for you, we also need to consider important company-specific fundamentals such as Evergreen Gaming’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 TNA’s future growth? Take a look at ourfree research report of analyst consensusfor TNA’s outlook.
2. Past Track Record: Has TNA 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 TNA's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how TNA 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. |
Nate Berkus packs this one thing on every trip 'no matter what' (Exclusive)
There's one thing that Nate Berkus "always" brings with him on trips "no matter what."
The lifestyle guru recently sat down with AOL's Gibson Johns at the launch event forTravelPro's VersaPack, where he shared some of his go-to travel and packing tips as the summer vacation season heats up.
"Typically, for me, it’s always about looking at my calendar to figure out where I’m going to be," Berkus told AOL. "I always have a jacket with me no matter where I’m going, because you never know when you’re going to be invited to some dinner and you never want to have to decline because you don’t have the appropriate clothing."
Berkus, who recently moved back to New York City from Los Angeles with his husband, Jeremiah Brent, and their two children, Poppy and Oskar, also has some necessities that he plans on throwing in his weekend bag when taking trips to places like the Hamptons now that he's back on the East Coast.
"It’s also, like, apair of Vans, two pairs of pants, a bathing suits, abs -- hopefully! -- two polo shirts, two t-shirts, running shoes and one running outfit, which is ambitious" he added. "What’s great about theVersaPackis that there are four different organizers. There’s a laundry organizer, which is so brilliant if you think about it: Why would you want your disgusting socks touching anything else for the weekend?"
That being said, since expanding their family, what traveling and packing look like for Berkus and Brent has completely changed.
"I always prided myself on how I packed until I was a father of two kids," Berkus explained to us. "I never checked a bag before I had children -- in 30 years! For a weekend trip, I’ve gotten it down pretty much to a science -- but that's when I don’t have to pack a bottle warmer or snacks, 700 diapers and all of that business."
"I do love traveling with the kids, but they're not quite old enough to appreciate it and I’m conscious of that," he said. "Jeremiah and I have a thing in our relationship where we put ourselves first, because we believe in that philosophically -- that the kids will be better if we actually care about each other and make each other a priority, and part of that priority is taking small trips with one another." |
At US$292, Is Thermo Fisher Scientific Inc. (NYSE:TMO) Worth Looking At Closely?
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Let's talk about the popular Thermo Fisher Scientific Inc. (NYSE:TMO). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Thermo Fisher Scientific’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for Thermo Fisher Scientific
Thermo Fisher Scientific appears to be overvalued by 25.74% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$292 on the market compared to my intrinsic value of $232.42. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since Thermo Fisher Scientific’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Thermo Fisher Scientific’s earnings over the next few years are expected to increase by 30%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?It seems like the market has well and truly priced in TMO’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe TMO should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping an eye on TMO for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for TMO, which means it’s worth diving deeper into other factors 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 Thermo Fisher Scientific. You can find everything you need to know about Thermo Fisher Scientific inthe latest infographic research report. If you are no longer interested in Thermo Fisher Scientific, 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. |
Coffee slump reaps bitter harvest for Central American migrants
By Gustavo Palencia and Sofia Menchu
LA COLONIA, Honduras/CAMOTAN, Guatemala (Reuters) - Towards the end of 2018, Honduran coffee farmer Mario Lopez paid a human smuggler, or coyote, to take him to the United States in a bid to escape the economic ruin engulfing him at home.
In mid-November, the coffee farmer and his 12-year-old daughter undertook a perilous 35-day journey up through Mexico after a collapse in international coffee prices destroyed the business that he had dedicated his life to, his wife told Reuters.
"My husband had to emigrate due to debt and because coffee cannot even provide for food here," said Carmen Andino at the door of their home, a modest adobe building in La Colonia.
Shortly before Christmas, Lopez and his daughter entered the United States.
Since then, he has sent money to his wife and three children who stayed behind in La Colonia, a rural town in central Honduras dominated by cultivation of coffee, the country's top agricultural export.
"With prices where they are, there is nothing to be done," she added, looking at the plantations that once supported the family, now abandoned because they cannot be maintained.
International coffee prices in May hit their lowest levels in 13 years, due largely to surging output in Brazil and Vietnam, though prices have since recovered some of those losses.
Lopez's story is typical among the dozens of arabica coffee growers Reuters spoke with across Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua, who have swelled the ranks of migrants trying to enter the United States and stoked the ire of U.S. President Donald Trump.
In the first eight months of the current U.S. fiscal year, which began in October, the number of migrants detained or refused entry at the U.S.-Mexico border exceeded 570,000 - more than the total for all of the previous year.
The vast majority of those migrants were from Central America.
The region accounts for 10% of the world's output of arabica, a high quality coffee bean used to prepare espresso and gourmet blends. The coffee business is worth around 5% percent of gross domestic product in Honduras.
Officials are still assessing the impact of the phenomenon, which is hurting an industry that employs hundreds of thousands in some of the poorest nations of the Americas.
DANGEROUS JOURNEY
"We haven't been able to sell coffee this year. It's not profitable for anyone to be working in coffee," lamented David Ramirez, 55, a coffee farmer in Camotan in southeastern Guatemala, one of the country's main coffee-producing areas.
At the start of 2019, Ramirez said he paid a coyote $2,600 to take his youngest child Delmi, 17, to the United States because she could not find work in Guatemala.
"Due to the coffee crisis we have no money, partly because of that my daughter Delmi left. But she died there, she got ill in the United States," Ramirez said by his mud-brick house, surrounded by wilting coffee plants.
The farmer, who is now growing corn to pay off his debts, said several neighbours had gone to the United States in search of a better future. But most, he said, had sent their children northward and stayed on to work the land, hoping coffee prices would recover.
In Honduras, the government is crafting a plan to provide financing and new machinery for coffee farmers, but the industry says that plan risks putting them into more debt.
"What the grower needs is to fertilise his plantation and money to feed his family," said Dagoberto Suazo, vice president of Honduran coffee association IHCAFE.
Coffee has long been a pillar of economic and social development in poor areas between southern Mexico and Panama, known as the "Corredor Seco," or Dry Corridor - a strip of land that has fallen prey to damaging droughts in recent years.
Almost half the coffee-producing areas in the corridor have been under cultivation for more than 25 years, making them "aged" in growers' terms. That has prompted calls from the national coffee-producing associations to secure new plots.
But the struggles faced by today's producers are having a knock-on effect on their offspring.
"The children no longer want to dedicate their lives to coffee," said Luisa Fernanda Correa, general manager of Anacafe, the association representing Guatemalan coffee growers.
"If children see their parents are not making a success of it, the business doesn't interest them," she said. "They prefer looking for work in other industries."
(Reporting by Gustavo Palencia in La Colonia and Sofia Menchu in Camotan; additional reporting by Nelson Renteria in El Salvador, Alvaro Murillo in San Juan and Ismael Lopez in Managua; writing by Diego Ore; editing by Dave Graham and G Crosse) |
Bitcoin sell-off accelerates, breaking below $11,000
June 27 (Reuters) - A pullback in prices of bitcoin deepened on Thursday, falling over 16% to below $11,000 after jumping to 18-month high of nearly $14,000 earlier this week amid optimism about the widening usage of digital currencies.
The world's biggest cryptocurrency has surged in value since April and has risen more than 260%, but it remains below its all-time high of nearly $20,000 hit in December 2017.
At 1:43 p.m. EDT (1743 GMT), bitcoin was down 16.13% at $10,836.42 on the Luxembourg-based Bitstamp exchange.
Facebook's announcement that it would offer its own cryptocurrency Libra has revived interest in digital currencies, analysts said.
Investors seeking an alternative asset to gold and U.S. bonds as a safe haven due to worries about weakening global growth also helped contribute to bitcoin's rally, they said. (Reporting by Richard Leong in New York and Tommy Reggiori Wilkes in London, editing by G Crosse) |
US STOCKS-Wall St holds on to gains ahead of G20 summit
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* Kudlow says U.S. may move ahead on additional China tariffs
* Xi to present Trump with terms for settling trade war -WSJ
* U.S., China agree to tentative trade truce -report
* Boeing falls as FAA cites new flaw in 737 MAX jets
* Walgreens rises on quarterly profit beat
* Indexes up: Dow 0.12%, S&P 0.42%, Nasdaq 0.65% (Updates to early afternoon)
By Shreyashi Sanyal
June 27 (Reuters) - U.S. stocks were modestly higher on Thursday, propped up by financials, but caution reigned in the build-up to U.S.-China trade talks at the G20 summit this weekend.
The two sides were laying out an agreement that would help avert the next round of tariffs on an additional $300 billion of Chinese imports, the South China Morning Post reported, citing sources.
However, a Wall Street Journal report that Chinese President Xi Jinping planned to present President Donald Trump with a set of terms Washington should meet before Beijing is ready to settle their trade dispute tempered optimism.
"I think expectations for a deal are still fairly low. All markets want to see now is the trade deal is not worsening," said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey.
"Stock prices are fairly high by most measures and for those looking to invest more, the lack of clarity keeps them from making that commitment."
The benchmark S&P 500 index briefly hit a session low after White House economic adviser Larry Kudlow said there were no preconditions set ahead of any trade talks with China.
Financials rose 0.91%, with big lenders leading the charge ahead of results of the second part of the Federal Reserve's annual stress test for banks.
Semiconductor companies, which have a sizable revenue exposure to China, traded higher, with the Philadelphia Semiconductor index up 1.32%. The S&P technology sector was up 0.25%.
Boeing Co fell 1.9%, pressuring the blue-chip Dow Jones index, after Reuters reported that the U.S. Federal Aviation Administration identified a new flaw in the planemaker's grounded 737 MAX jets.
At 12:57 p.m. ET the Dow Jones Industrial Average was up 31.62 points, or 0.12%, at 26,568.44 and the S&P 500 was up 12.24 points, or 0.42%, at 2,926.02.
The Nasdaq Composite was up 51.34 points, or 0.65%, at 7,961.31.
The bellwether S&P 500 has recouped most of its losses in May and is on pace to end June with a 6% gain, on hopes that the Fed would cut interest rates to counter slowing growth.
Among other stocks, Walgreens Boots Alliance Inc gained 5%, after the drugstore chain beat analysts' expectations for quarterly profit.
Ford Motor Co rose 2.78% after the carmaker said it will have cut 12,000 jobs in Europe by the end of next year to try to return the business to profit.
Conagra Brands Inc tumbled 12%, the most among S&P 500 companies, after the packaged food company's quarterly sales and profit fell short of analysts' estimates.
Advancing issues outnumbered decliners by a 2.34-to-1 ratio on the NYSE and by a 2.68-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and one new low, while the Nasdaq recorded 22 new highs and 38 new lows. (Reporting by Shreyashi Sanyal, Amy Caren Daniel and Aparajita Saxena in Bengaluru; Editing by Anil D'Silva) |
Xylem Advances Commitment to Sustainability, Announcing Ambitious Slate of 2025 Signature Goals
• Optimize global water management by saving more than 16.5 billion cubic meters (m3) of water through advanced technologies that avert water loss and enable water reuse, and by preventing over 7 billion m3of polluted water from flooding communities or entering local waterways1
• Provide access to clean water and sanitation solutions for at least 20 million people living at the base of the global economic pyramid2
• Use 100% renewable energy and process water recycling at Xylem’s major facilities
• Ensure that 100% of Xylem employees have access to clean water and safe sanitation at work, at home and during natural disasters
• Give 1% of Xylem employees’ time and 1% of company profits to water-related causes and education
RYE BROOK, N.Y.–(BUSINESS WIRE)–Xylem (NYSE:XYL), a global water technology provider, announced an ambitious set of goals that advances the Company’s sustainability commitment across three fronts: serving its customers, building a sustainable company, and empowering communities through social impact initiatives. The new goals were published in Xylem’s 2018 Sustainability Report: “Creating a Water-Secure World,” also released today.
“Sustainability is core to everything we do at Xylem,” said Patrick Decker, President and CEO of Xylem. “We have a unique opportunity and responsibility to advance sustainability through our commercial and humanitarian efforts to solve water for communities around the world, and through our work to raise public awareness and engagement.”
Decker continued: “Water is one of the most direct and universal ways to advance sustainability, because everyone depends on it. Building upon our foundation as a sustainable and financially strong company, we will accelerate our work with water stakeholders and communities to drive innovation and change, inspire the next generation of water stewards, and create a more water-secure world.”
With over2 billion peopleacross the globe living in water-stressed countries, Xylem recognizes its role in converging water and digital technologies to solve water challenges, safeguard our environment and drive social change. The Report and 2025 Goals reinforce the Company’s commitment to pioneering new approaches and partnerships to help solve the major water challenges of our time, with a focus on water scarcity, affordability and resilience, and to create a more water-secure world.
“In recent years, Xylem has taken a leadership role in driving the digital transformation of water, helping utility, industrial and other users of water advance their efforts to be responsible stewards of the planet’s most essential resource. With our global reach across the water cycle, we are strongly positioned to drive change and promote water sustainability,” said Claudia Toussaint, Senior Vice President and General Counsel and executive sponsor for Environmental, Social and Corporate Governance (ESG) at Xylem.
She continued: “In developing our 2025 Signature Goals, we focused on moving the needle in areas relating to the world’s most urgent water challenges. We are also redoubling our efforts to be a company that leads by example and makes a difference by creating social impact for millions of people around the globe.”
Highlights of Xylem’s signature and other goals to achieve by 2025 follow:
• Helping solve water affordability and scarcity issuesSave over 16.5 billion m3of water by partnering with our customers to utilize technologies that reuse water to advance the circular economy or reduce water losses due to aging infrastructure or faulty water meters. This is the equivalent of creating new sources of water to meet the annual domestic water use of 250 million people. These water and cost efficiencies will allow utilities to improve water affordability and redirect resources for the public good.3Develop water solutions for those living at the base of the global economic pyramid, positively impacting the lives of at least 20 million people.4
• Addressing the planet’s resilience against climate changeReduce the greenhouse gas (GHG) emissions of Xylem’s solutions by over 2.8 million tons, the equivalent to planting and growing 46 million trees for 10 years.5Use 100 percent renewable energy and process water recycling at all of Xylem’s major facilities around the globe.Prevent over 7 billion m3of polluted water from flooding communities or entering local waterways, equivalent to filling 2.8 million Olympic-sized swimming pools.6Commit to establishing science-based targets for reducing GHG emissions.
• Building a sustainable companyEnsure 100 percent of Xylem employees have access to clean water and sanitation at work and home, as well as support during humanitarian disasters and engage suppliers to do the same to advance supply chain resiliency.Achieve parity in leadership for women and eliminate pay differences based on gender, race or ethnicity, and engage stakeholders in the water industry to advance diversity and inclusion.Provide all employees with rich learning and developmental opportunities to build Xylem’s ability to solve water for decades to come.
• Empowering communitiesGive 1 percent of Xylem employees’ time and 1 percent of company profits to humanitarian efforts, such as disaster relief to improve access to clean water and healthy waterways to mobilize the next generation of water stewards.Invite key stakeholders, including customers, channel partners, suppliers and investors to join this shared goal.
In its 2018 Sustainability Report, Xylem details its specific 2025 goals as well as the Company’s progress against its five-year sustainability goals laid out in 2014, some of which the Company surpassed a year ahead of plan. Highlights include: Reduced GHG emissions intensity by 18.4 percent, driven in large part by energy reduction efforts and the growing number of Xylem sites utilizing renewable energy, and decreased water intensity by nearly 17 percent predominantly through water reuse at its facilities. Xylem Watermark, the Company’s corporate citizenship program, surpassed its three-year program goals in 2018, reaching 125 percent of its employee volunteer hours goal and 100 percent of its employee participation goal. In total, over 15,500 volunteer participants across the globe made a difference in their own communities by volunteering more than 110,000 hours in water-related activities.
Among recent sustainability milestones, Xylem announced the first sustainable improvement loan in the General Industrial Sector in the U.S., tying the Company’s lending rates to its overall sustainability performance as rated by Sustainalytics. With a score of 78, Xylem is currently rated in the 98th percentile in its overall ESG score and has a relative position as a Leader compared to industry peers. Xylem is also rated AA by MSCI and has a CDP score of A- in Climate Change. Xylem has signed the UN Global Compact, the CEO Water Mandate, the Human Rights Campaign Foundation’s Global Business Coalition, the World Business Council WASH pledge and the UN Women’s Empowerment Principles.
About Xylem
Xylem (XYL) is a leading global water technology company committed to developing innovative technology solutions to the world’s water challenges. The Company’s products and services move, treat, analyze, monitor and return water to the environment in public utility, industrial, residential and commercial building services settings. Xylem also provides a leading portfolio of smart metering, network technologies and advanced infrastructure analytics solutions for water, electric and gas utilities. The Company’s approximately 17,000 employees bring broad applications expertise with a strong focus on identifying comprehensive, sustainable solutions. Headquartered in Rye Brook, New York, with 2018 revenue of $5.2 billion, Xylem does business in more than 150 countries through a number of market-leading product brands.
The name Xylem is derived from classical Greek and is the tissue that transports water in plants, highlighting the engineering efficiency of our water-centric business by linking it with the best water transportation of all – that which occurs in nature. For more information, please visit us atwww.xylem.com.
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Contacts
MediaJenny Rider +1 (914) 246-7184Jenny.rider@xyleminc.com
InvestorsMatt Latino, +1 (914) 323-5821Matthew.Latino@xyleminc.com |
This Is Definitely the Look Zendaya Would Wear If She Were Spider-Man
It's spidey sense-sational! (Sorry.) Zendaya in Armani Privé at the premiere of "Spider-Man: Far From Home" in Hollywood. Photo: Kevin Winter/Getty Images At this point, Zendaya has spent years topping best-dressed lists and leaning into fun, risk-taking looks. So it's not surprising that she's continued to kill it as she's made the press rounds to promote her new film, "Spider-Man: Far From Home," in which she plays the titular superhero's love interest, MJ. After garnering attention for her delightful, Aperol-spritz-hued ensemble earlier in the week, Zendaya wowed the fashion world again on Wednesday evening at the Hollywood premiere for the movie. Outfitted in a perfectly on-theme black-and-red sequin gown by Armani Privé , Zendaya looked every bit a superhero herself. And that was the point: "[If] she was Spider-Man this would be her suit," wrote her longtime stylist Law Roach of the look on Instagram . The backless dress, which had plenty of impact on its own, needed little in the way of additional embellishment — Zendaya kept things simple by pairing it with black Christian Louboutin pumps. Zendaya, who famously often does her own makeup , got playful with her beauty look, wearing long, MJ-apropos red hair and dark smoky eyes. To sum things up, she looked spidey sense-sational! (Sorry.) Never miss the latest fashion industry news. Sign up for the Fashionista daily newsletter. |
Scott Disick on the 'Hard Work' It's Taken to Co-Parent With Kourtney Kardashian (Exclusive)
Scott Disick and Kourtney Kardashian 's co-parenting relationship took "hard work." ET's Lauren Zima recently sat down with Disick at the press day for his upcoming E! series, Flip It Like Disick , where he opened up about coming together with Kardashian for the sake of their three kids together -- 9-year-old Mason, 6-year-old Penelope and 4-year-old Reign. "I think you really got to figure out what's important to you at the end of the day," Disick shared of how he and his ex make it work. "I mean, there's so many different things that can pull you in different directions. You could look online, and Instagram, and social media, all these things, but at the end of the day -- I mean, you just want to be happy, you want to be content, you want to be comfortable. You want to love the people you are with." Disick, 36, and Kardashian, 40, split in 2015 after nearly a decade together. They've both moved on romantically in recent years, and though Kardashian is currently single, she's been spotted out with Disick and his girlfriend, Sofia Richie , 20, on multiple occasions. The trio have even vacationed together. View this post on Instagram What more can a guy ask for. THREES COMPANY A post shared by Scott Disick (@letthelordbewithyou) on Dec 23, 2018 at 6:44pm PST "Life is a challenge and if you work at what you want, you get it. But it takes hard work, as simple as that," Disick explained. "You can easily live less of a life without working as hard, and that's up to you." "And it's hard work for all parties -- I think for you, Kourtney, Sofia, they're all just really strong," Khloe Kardashian , who was promoting the new season of Revenge Body , chimed in. "I'm really proud of all of them." The Good American designer said she looks up to the co-parenting relationship that Disick has crafted with her sister as a model of how to co-parent with her own ex, Tristan Thompson. Story continues "I think they're doing amazing, and I think everyone has to handle their co-parenting situation in their own style, but my mom and my dad were like that," she recalled. "It took them years, but my dad would come over once a week for family dinners and would play golf with my stepdad, and so we come from family where we believe in that -- you share children with people, and that's how it should be, and love is love." "I'm so proud of them, and I'm so proud of them promoting that and hopefully inspiring other people," she continued. "It's a beautiful thing to get along with each other and for your kids to see that." Disick, who recently opened up on Instagram about embracing more family-oriented priorities, even receives some props from Kardashian on Flip It Like Disick. "It's great. I think we've been through so much and so many things and to hear her be proud of me means a ton to me," he shared. Revenge Body returns on July 7 and Flip It Like Disick premieres on August 4. See more on the Kardashian family in the video below. RELATED CONTENT: Kourtney Kardashian Says Her Parents Inspired Her Co-Parenting Strategy With Scott Disick Kim Kardashian Reveals How She Really Feels About Kourtney Vacationing With Ex Scott Disick and Sofia Richie Kourtney Kardashian Says She's 'Most Proud' of Her Relationship With Ex Scott Disick and His Girlfriend Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear |
Could The Tocagen Inc. (NASDAQ:TOCA) Ownership Structure Tell Us Something Useful?
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The big shareholder groups in Tocagen Inc. (NASDAQ:TOCA) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
With a market capitalization of US$153m, Tocagen is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about TOCA.
View our latest analysis for Tocagen
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors own 38% of Tocagen. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Tocagen, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Tocagen. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own some shares in Tocagen Inc.. As individuals, the insiders collectively own US$10m worth of the US$153m 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 56% of Tocagen shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
If you 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. |
‘Snowpiercer’ Cast And Showrunner Board Train To Comic-Con
Click here to read the full article. TBS is bringing the TV adaptation of Bong Joon Ho’s 2013 post-apocalyptic sci-fi feature Snowpiercer to Comic-Con . Show stars Jennifer Connelly , Daveed Diggs , Alison Wright, Mickey Sumner, Lena Hall, Steven Ogg and executive producer and showrunner Graeme Manson will take the stage at the Indigo Ballroom in San Diego on July 20. Executive producers Marty Adelstein and Becky Clements of Tomorrow Studios will also be in attendance. The panel will include an exclusive first look at the series which is set to premiere in the Spring of 2020 Set more than seven years after the world has become a frozen wasteland, Snowpiercer centers on the remnants of humanity, who inhabit a gigantic, perpetually moving train that circles the globe. Class warfare, social injustice and the politics of survival play out in this riveting television adaptation based on the acclaimed movie of the same name. The series was renewed for season two prior to the season one premiere. Related stories Sony Joins Warner Bros.' DC & Universal In Skipping San Diego Comic-Con 2019 Comic-Con 2019: Amazon Prime's Big Plans For 'The Boys' 'The Expanse' & 'Carnival Row' Netflix Horror Drama Series 'The Order' To Make First San Diego Comic-Con Appearance Snowpiercer is produced by Tomorrow Studios (a joint venture between Marty Adelstein and ITV Studios), along with CJ Entertainment, who produced the original film. The series is executive produced by Tomorrow Studios’ Marty Adelstein and Becky Clements; showrunner Graeme Manson, who wrote the first episode; director James Hawes; Matthew O’Connor; Scott Derrickson, and the original film’s producers Bong Joon Ho, Miky Lee, Tae-sung Jeong, Park Chan-wook, Lee Tae-hun and Dooho Choi. Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
BTS's Virtual Rudeness in BTS World Is Making ARMYs Want to Quit Being Their Manager
When BTS World was finally released on June 26, ARMYs around the world were more than ready to become BTS ’s managers — but it turns out life as manager of the Bangtan Boys isn’t so easy. After the game’s release, BTS fans flocked to their phones — causing the app to reach the number one spot on the app charts worldwide — to experience the joys of the interactive story game, and, well , let’s just say the early steps of the journey had some up and downs. One down in particular: the (virtual) boys' attitudes. "BTS are so rude and mean in the game i will throw yall out and WHERE IS BANG PD??? THAT H*E LITERALLY LEFT ALL THE WORK TO ME AND IM JUST THE MANAGER,” an ARMY pointed out on Twitter , after playing the game for a while. One of the first problems ARMYs faced in BTS World was the issue of the band’s name. When it came time to pick what the group’s final name, the virtual hyung line — comprised of Jin , Suga , J-Hope , and RM — weren’t that keen on Bangtan Sonyeondan as the selection, to the despair of many ARMYs. “THE GASP I LET OUT OSKSKSKDDK F*CKING SEOKJINSJSJDD,” one ARMY posted with a screenshot of Jin’s reaction to the suggested name — “I think that’s your opinion ” — after the player outlined a careful and detailed explanation for the name choice. https://twitter.com/TOKYOONGII/status/1143862920499085312 https://twitter.com/xuxuknj/status/1143848730073939968 https://twitter.com/spicyjeons/status/1143883411326558208 https://twitter.com/_odengie_/status/1144146003228078080 “I swear if I hear Yoongi say he doesn’t like the name Bangtan Boys one more time,” another fan posted alongside a meme video. “At this point im about to beat yunki *ss. Idgaf IF YOU DONT LIKE THE F*CKING NAME YA B*TCH IM GONNA MAKE YOU INTO STARS,” another fan added . It is Yoongi (or Yunki, as Suga’s name is styled in the game), specifically, whose sass has made him one of the most frustrating characters. Story continues https://twitter.com/chocohoneytae/status/1143948254612283399 https://twitter.com/FAIRIJIMIN/status/1144189700799963137 https://twitter.com/correctbighit1/status/1144159919580446720 https://twitter.com/hanaaa_101/status/1143946131870748674 Thankfully for the ARMY's emotional state, the virtual maknae line seemed to be on board with BTS’s current name, and much more. “Maknae line holding me back because im about to punch the daylights out of namgiseok for disagreeing with everything i say,” one fan commented with a meme. https://twitter.com/colourhyuck/status/1143928561952284672 https://twitter.com/im_thirstae/status/1144174472439586816 And Jimin , V , and Jungkook ’s support is not stopping ARMYs from feeling the stress. What once looked like a plain ol’ fun game, with a dress-up option , has proven to be a somewhat demanding virtual task for ARMYs. “Me waking up to another day of being bts’s manager knowing I’m gonna be bullied by Namjoon and Yoongi,” a fan wrote , sharing a clip of a disheartened, sleepy J-Hope as visual support. “Me walking around as bts’ manager bc they’re stressing me out and i can’t do shit about it,” another one wrote , with a clip of sleepy Jin. “BTS ARE SO ANNOYING SKSKSKSK LIKE I HAVE TO KEEP REJECTING MESSAGES, I CANT HANDLE MULTITASKING . I LEFT JIMIN ON READ AND WAS GONNA ANSWER BUT NAMJOON CALLED ME IM STRUGGLING THEY KEEP SAYING MANAGER NIM MANAGER NIM IM READY TO QUIT DAY 1 ISNT EVEN OVER,” an ARMY vented after a full day’s play. https://twitter.com/emmajuliiane/status/1144164656107401217 https://twitter.com/vsipstea/status/1144148475560505349 https://twitter.com/sugastethic/status/1143918479013228544 https://twitter.com/chilaquilesmark/status/1144158391419441152 Quitting is a popular idea for the new managers, though it seems unlikely they'll be able to pull themselves away. “NAMJOON AND HOSEOK DOESN'T LIKE THE NAME, TAE IS HUNGRY, JIN IS BEING A B*TCH TO JIMIN, YOONGI HATES ME, JUNGKOOK IS MISSING AND ACCORDING TO THOSE SEVEN B*TCHES I DONT KNOW A THING ABOUT MY JOB im ready to quit,” an ARMY posted . “I quit, I quit, I’m trying my best and they treating the f*ck out of me,” another added . https://twitter.com/tmh_harold/status/1143918385568387072 https://twitter.com/8_armyhive/status/1143959556499881984 https://twitter.com/sugacult_/status/1143997456147001350 Apart from the, um, unforeseen stress, the game does have its more lighthearted moments, like when you receive calls from your faves , and the plethora of exclusive video and music content . After all, BTS World is only a game. Regardless of their virtual bad attitudes, ARMYs will always be there to support and care for the boys IRL . Just maybe not as an official, real-life manager anytime soon. https://twitter.com/lels__/status/1144150780728893441 https://twitter.com/taeIuvrT__T/status/1143848666987421696 Let us slide into your DMs. Sign up for the Teen Vogue daily email . Want more from Teen Vogue ? Check this out: Brace Yourselves, Another BTS Concert Movie Is Coming So Soon See the video. Originally Appeared on Teen Vogue |
Does Cardero Resource Corp. (CVE:CDU) Have A Volatile Share Price?
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If you own shares in Cardero Resource Corp. (CVE:CDU) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The 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 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. 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 Cardero Resource
Zooming in on Cardero Resource, we see it has a five year beta of 1.59. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If the past is any guide, we would expect that Cardero Resource shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. Beta is worth considering, but it's also important to consider whether Cardero Resource is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of CA$3.3m, Cardero Resource is a very small company by global standards. It is quite likely to be unknown to most investors. Relatively few investors can influence the price of a smaller company, compared to a large company. This could explain the high beta value, in this case.
Since Cardero Resource tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Cardero Resource’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 CDU’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 CDU 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 CDU'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. |
At US$30.78, Is Tapestry, Inc. (NYSE:TPR) Worth Looking At Closely?
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Tapestry, Inc. (NYSE:TPR), which is in the luxury business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $34.45 at one point, and dropping to the lows of $28.36. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Tapestry's current trading price of $30.78 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Tapestry’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Tapestry
According to my relative valuation model, the stock seems to be currently fairly priced. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Tapestry’s ratio of 12.6x is trading slightly below its industry peers’ ratio of 17.35x, which means if you buy Tapestry today, you’d be paying a fair price for it. And if you believe that Tapestry should be trading at this level in the long run, then there’s not much of an upside to gain from mispricing. In addition to this, it seems like Tapestry’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Tapestry’s earnings over the next few years are expected to increase by 39%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?TPR’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at TPR? 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 TPR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for TPR, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Tapestry. You can find everything you need to know about Tapestry inthe latest infographic research report. If you are no longer interested in Tapestry, 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. |
Rerun: Last TV plant in U.S. again faces tariff extinction
By Timothy Aeppel NEW YORK (Reuters) - America's trade war with China is once again poised to switch off the nation's last television factory. The United States had 150 television manufacturers in the 1950s, with factories and suppliers employing hundreds of thousands of workers across the country. Those sets had hundreds of parts and were often sold in wooden cases the size of kitchen stoves. A modern flat screen, by contrast, has 70% of its value packed into the glass panel, and production is now almost entirely in Asia. Today, there is only one U.S. assembly plant and it is more symbolic than substantive. Element Electronics opened the plant in an old shirt factory in Winnsboro, South Carolina, in 2014, chiefly to supply televisions to Walmart for the retailer's highly publicized buy-American campaign. It employs 250 workers. The televisions at the plant are assembled entirely with Chinese components. Element applies the finishing touches in South Carolina, such as the insertion of printed circuit boards. It also tests the sets. Even most of the boxes and other packaging come from China. The labels state: "Assembled in the USA," not "Made in the USA," although the difference is lost on most consumers. The mostly Chinese origin of these televisions has become a matter of survival for Element for the second consecutive year. Last summer, President Donald Trump's administration announced it would impose tariffs on Chinese television components among the many goods affected by a deepening trade war between Beijing and Washington. The extra cost of the tariffs would mean the plant would not be able to compete on price with televisions imported from Mexico and Asia. Element appealed for relief, arguing that the items should be removed from the tariff list. The company announced it would have to shut down because of the added cost of tariffs, and notified its workers they were being laid off. The plant stopped production, but the company won a last-minute reprieve when the U.S. government dropped television parts from its list. In the end, no workers were laid off. Story continues Now the tariff threat is back. Trump's administration is preparing to impose 25% tariffs on the last $300 billion worth of Chinese goods not already covered by trade-war duties. Televisions and components are on the list. FUTURE IN DOUBT Trump's meeting with Chinese leader Xi Jinping later this week at the G20 summit in Japan could determine whether those tariffs are imposed. In the meantime, the plant's future is again in doubt. "We'll appeal - our lawyers will work on that," said Michael O'Shaughnessy, the company’s chief executive. China is only part of Element's trade problem. The company has also struggled to compete with television importers from Mexico because of tariff rules. Mexican television plants also assemble components mostly from Asia. Those TVs are then exported across the U.S. border duty-free because they are included in the North American Free Trade Agreement. Element, however, previously had to pay a 4.5% tariff on their main components from China - a duty that existed long before Trump started his trade wars. Last year, Congress passed a bill that exempted a number of goods, including TV components, from those tariffs. About 40% of televisions imported to the United States in recent years come from Mexico, according to the U.S. International Trade Commission. Paul Gagnon, an expert on the industry's supply chain at research firm IHS Markit, said the business has tiny margins, so manufacturers are constantly hunting for the lowest cost locations to do final assembly. Element almost got a boost from another set of Trump trade tariffs. The U.S. president's threat to put tariffs on Mexican goods, in an attempt to force Mexico to reduce the flow of illegal immigrants, might have given Element a big price advantage over the Mexican plants. But Trump dropped the threat after Mexico promised measures to tighten its borders. O'Shaughnessy said he supports the administration's efforts to level the playing field with China and other trading partners and feels businesses that create jobs in the United States should not face a disadvantage just because they rely on imported parts. In the meantime, this is the busiest time of year for all television manufacturers, as they gear up for the holiday sales surge at the end of the year. "We're doing the things we can today to bring in a little more parts than we normally would," said O'Shaughnessy, "So we have a buffer against the unknown." The company is also continuing to hire. It aims to have 300 employees by the end of the summer, O'Shaughnessy said, as business remains strong and is growing. (Reporting by Timothy Aeppel; Editing by Simon Webb and Bill Rigby) |
Were Hedge Funds Right About Souring On RLJ Lodging Trust (RLJ)?
RLJ Lodging Trust (NYSE:RLJ)was in 21 hedge funds' portfolios at the end of March. RLJ investors should pay attention to a decrease in support from the world's most elite money managers in recent months. There were 25 hedge funds in our database with RLJ positions at the end of the previous quarter. Our calculations also showed that RLJ isn't among the30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
We're going to check out the recent hedge fund action regarding RLJ Lodging Trust (NYSE:RLJ).
At Q1's end, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of -16% from the previous quarter. By comparison, 20 hedge funds held shares or bullish call options in RLJ a year ago. With hedge funds' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
The largest stake in RLJ Lodging Trust (NYSE:RLJ) was held byFisher Asset Management, which reported holding $45.6 million worth of stock at the end of March. It was followed by Citadel Investment Group with a $40.8 million position. Other investors bullish on the company included AEW Capital Management, Balyasny Asset Management, and Forward Management.
Seeing as RLJ Lodging Trust (NYSE:RLJ) has faced falling interest from the aggregate hedge fund industry, we can see that there exists a select few funds that slashed their entire stakes last quarter. At the top of the heap, Derek C. Schrier'sIndaba Capital Managementdropped the biggest stake of all the hedgies tracked by Insider Monkey, comprising close to $21.5 million in stock, and Alexander Mitchell's Scopus Asset Management was right behind this move, as the fund sold off about $6.7 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 4 funds last quarter.
Let's now review hedge fund activity in other stocks similar to RLJ Lodging Trust (NYSE:RLJ). These stocks are Amicus Therapeutics, Inc. (NASDAQ:FOLD), Tegna Inc (NYSE:TGNA), Boyd Gaming Corporation (NYSE:BYD), and Moog Inc (NYSE:MOG). This group of stocks' market caps resemble RLJ's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FOLD,30,1046575,4 TGNA,26,470360,4 BYD,28,404116,-2 MOG,17,90968,4 Average,25.25,503005,2.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 25.25 hedge funds with bullish positions and the average amount invested in these stocks was $503 million. That figure was $193 million in RLJ's case. Amicus Therapeutics, Inc. (NASDAQ:FOLD) is the most popular stock in this table. On the other hand Moog Inc (NYSE:MOG) is the least popular one with only 17 bullish hedge fund positions. RLJ Lodging Trust (NYSE:RLJ) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately RLJ wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); RLJ investors were disappointed as the stock returned 3.2% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published atInsider Monkey.
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