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RBC industrials investment banking co-head moves to Jefferies: sources
By Harry Brumpton (Reuters) - Royal Bank of Canada's co-head of industrials investment banking Glenn Riedman has resigned to join the investment banking arm of Jefferies Financial Group Inc, according to people familiar with the matter. Riedman had been with RBC in New York since 2011, where he oversaw the bank's relationships with industrial conglomerates as well as building products, packaging, chemicals, metals and mining companies. His new title at Jefferies could not be verified. Jefferies declined to comment, while RBC and Riedman did not respond to requests for comment. Before joining RBC, Riedman was a managing director in the diversified industrials group at JPMorgan Chase & Co. Riedman is not the first industrials banker recently poached by Jefferies. The bank has been scaling up its industrials practice since May 2018, when Reuters reported the bank had hired Goldman Sachs Group Inc veteran Peter Scheman to be its new co-head of industrials investment banking for the Americas. (Rreporting by Harry Brumpton in New York; Editing by Richard Chang) |
Millennials: Want to save money? Do what I did and join AARP
At 37, I'm proud to say I'm a member of AARP, the American Association of Retired Persons.
For those unfamiliar with AARP, it is a nonprofit organization focused on enhancing the quality of life for the 50-plus population.
You may be wondering then, how and why did I join AARP (at age 35!).
For the longest time, I thought you could join AARP only if you were 50 and older, which seemed like a reasonable assumption. Everyone that I knew who talked about or received mail from AARP was that age category (e.g., my parents). However, several years ago, I stumbled on a deals forum where people in their 20s and 30s were debating whether joining AARP, to take advantage of the benefits, was worth it. Just like that, I started seeing the world in a whole new light.
AARP used to have two types of memberships - the regular membership, priced at $16 a year, for those who were 50 and older, and associate memberships, priced at $12.50, for those who had not yet reached the age of 50. To be able to get the associate membership, you had to call AARP.
Now, whether you've reached age 50 or not, you can join via AARP's website. Membership is $16 a year, with the option for a discounted annual fee if you opt into automatic renewal. As an extra bonus, your membership allows you to add a spouse or partner for free, and they'll even get their own membership card.
With your membership, you get access to discounts for travel, dining, entertainment, and shopping. I've highlighted some examples below, but feel free to review the full benefits guide for a comprehensive view.
Travel:You can save up to 15% at hotel chains such as Hilton, Best Western and Wyndham. In addition, membership gets you up to 30% discount on car rentals from Avis and Budget Rent-a-Car, as well as select free vehicle upgrades, discounted GPS rates, and an additional driver at no cost.
Dining: AARP offers 10% to 15% off at restaurant chains, such as Bonefish Grill, Denny's, McCormick & Schmick's, and Outback Steakhouse.
Entertainment:Save 20% on Regal ePremiere movie tickets purchased online, which are valid at all Regal theaters nationwide. In certain locations, including all Manhattan theaters, there is a location surcharge per ticket. In addition, you can save $3 on any size popcorn and soft drink combo.
Shopping:You can get 5% off domestic and international UPS shipping, 10% off the monthly service charge of qualified AT&T wireless plans and and 20% off online purchases at 1-800-FLOWERS or 20% when you spend $79.99 or more, among other discounts.
For me, the math was pretty simple. I was looking to book a Hilton Hotel in Houston, which was priced at $137 a night for Hilton Honors members. However, the AARP rate was just $121 a night, a savings of $16 a night. Since I was staying for three nights, I'd save nearly $50 in all, well worth the $16 AARP membership fee.
In addition, although I haven't stepped foot in a movie theater in years, I'll likely start going again with the 20% discount.
No matter what age you are, you can join AARP. Whether the benefits outweigh the membership cost will depend on your particular situation. For me, the savings I received from one hotel booking more than paid for the annual fee. And if that's not enough, I may be able to use this as a conversation starter as well. When I run out of things to say at a social gathering, I can always bring up that I'm a member of AARP, and to me, that's priceless.
Roger Ma is a certified financial planner, founder of financial-planning firmlifelaidout, and is currently writing a career and personal finance book to be published in early 2020. A version of this column previously appeared on Forbes.com
This article originally appeared on USA TODAY:Millennials: Want to save money? Do what I did and join AARP |
If You Had Bought Titan International (NYSE:TWI) Stock Five Years Ago, You'd Be Sitting On A 73% Loss, Today
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Long term investing is the way to go, but that doesn't mean you should hold every stock forever. It hits us in the gut when we see fellow investors suffer a loss. Imagine if you heldTitan International, Inc.(NYSE:TWI) for half a decade as the share price tanked 73%. And it's not just long term holders hurting, because the stock is down 57% in the last year. Shareholders have had an even rougher run lately, with the share price down 21% in the last 90 days.
See our latest analysis for Titan International
Titan International isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over half a decade Titan International reduced its trailing twelve month revenue by 5.7% for each year. That's not what investors generally want to see. The share price fall of 23% (per year, over five years) is a stern reminder that money-losing companies are expected to grow revenue. It takes a certain kind of mental fortitude (or recklessness) to buy shares in a company that loses money and doesn't grow revenue. Fear of becoming a 'bagholder' may be keeping people away from this stock.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Thisfreereport showing analyst forecastsshould help you form a view on Titan International
While the broader market gained around 6.9% in the last year, Titan International shareholders lost 57% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 23% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at.
Titan International is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
More People Named Jeffrey Got Top CEO Jobs Than Women Last Year
The roster of newly-minted CEOs at America’s largest companies for 2018 contains more executives named Jeffrey and Michael than it does women. (Yes, you read that right: two men named Michael were named CEO in 2018, two named Jeffrey, and just one lone woman.) Contrary to the myth of rising churn at the top, mega-cap CEOs are keeping their jobs for almost a decade, at least as long as in the past. The premier training ground for today’s chieftains? It’s not anAppleorMicrosoftbut that ever-inventive thirst-quencher,PepsiCo, Inc.
Those are just a few of the insights from the “New CEO Report” for 2018, a survey of the newly-named leaders at the 250 largest S&P 500 companies, measured by last year’s revenues, conducted by Feigen Advisors, LLC. (TheNewCEOReport.com) The firm’s founder, Marc Feigen––whom I nicknamed “the CEO whisperer”––is America’s leading adviser to CEOs in waiting. Feigen’s speciality is CEO succession. He smoothes the process by counseling the executives who’ve been anointed to succeed the current chief in the period before they take charge, helping them to shape a strategic vision and introducing them to a braintrust of retired Fortune 500 chiefs who proffer advice. The list of current CEOs whom Feigen’s guided (and in some cases, continues to advise) include Bob Iger of WaltDisney, Fabrizio Freda ofEstee Lauder, and Chris Swift of The Hartford.
The report on the class of 2018 could be subtitled, “a study in stability,” or even “here we go again.” Feigen has been producing the report since 2014, and this year’s results underscore the relentless, year-to-year consistency in the way corporate America transitions to new leaders––for good and for bad. Once again, the new class is dominated by veteran insiders who are replacing leaders who served their full, surprisingly lengthy terms, in carefully planned successions. Most don’t arise from a sudden upheaval. At the corporate giants, the proportion of departing CEOs forced out by dissatisfied boards, and surprise appointments from outside the company, are remarkably low.
But corporate America’s adherence to long-established practices has glaring weaknesses, including the boards’ failure to groom women for the top job. That’s led to a paucity of female CEOs that despite employers’ claims of championing their careers, isn’t improving.
Feigen’s “New CEO Report” for 2018 explores a number of key, mostly enduring, trends. Here are five notable examples.
Feigen has been producing the report since 2014, so it’s instructive to compare last year’s results with the trends over the full five-year period. Once again, the consistency is remarkable. The report found that last year, the S&P 250 replaced 23 CEOs. That turnover rate of 9.2% is below the 5 year figure of 11%, so although tenure at the top is shrinking in small and mid-sized companies, the giants are showing at least as much stability as in the past. Big Cap CEOs aren’t getting younger: The average age for the class of ’18 was 56 compared with the 5-year norm of 54.6.
Boards promoted 20 of the 23 new CEOs (87%) from within the companies’s ranks. Sixteen of those twenty insiders were long-tenured veterans who’d spent, on average, well over two decades with their employer. That’s right in line with recent history. Since 2014, 112 of the 134 new CEOs (84%) have been insiders. For example, Mike Wirth joinedChevronout of college in 1982, and Steve Squeri started atAmerican Expressin the Travelers Cheque Group in 1985.
But the other four insiders followed a different path. They were hired into senior positions, mainly from rivals, over the past several years, and “fast tracked” through through a range of roles where they displayed the mettle that won them top job. Tom Bene joined catering giantSyscoas chief merchandising officer from PepsiCo in 2013, andLockheed Martinveteran Chris Kubasik went to defense contractor L3 Technologies as COO in 2015 as heir apparent.
CEOs in big-cap America serve a long time. Last year, the average tenure of the departing bosses was 9.3 years, slightly higher than the half-decade average of 9 years. Retirements overwhelmingly occur as planned, not because of a crisis. Last year, 18 of the 23 new CEOs took the torch from predecessors who’d served their full terms and left following a long-orchestrated process of succession. That’s nothing new; since 2014, around three-quarters of all CEO transitions were planned, not improvised.
Outsiders are the most frequent choice when boards force CEOs to resign. Only three of the two-dozen new CEOs came from the outside, and all were recruited to fix ailing companies. Two were installed by boards dissatisfied with the performance of their predecessors. Larry Culp, who’d been serving on GE’s board, left the top job at industrial conglomerateDanaherto became the first outsider to run the flailing power and aerospace giant in its 126 year history, after the board ejected predecessor John Flannery after fourteen months on the job. Marvin Ellison traded his CEO position atJ.C. Penneyto runLowe’s, whose stock was underperforming shares of rivalHome Depot. The third outsider, John Visintin, ascended via a shareholder revolt. He took over atXerox, which has suffered years of shrinking copier sales, following a ferocious proxy fight led by activist Carl Icahn, who hand-picked Visintin to lead a rescue operation.
Over the past five years, no fewer than 107 or 80% of the 134 newly-named CEOs had a crucial attraction on their resumes: experience running key business units at their companies. More than half of the all new leaders––almost all of whom had operated business units at one point–-served as COO, president or both just prior to their ascension, so their last position wasn’t a top staff job, but responsibility for the entire company’s operations and financial results. Clearly directors want CEOs who’ve proven successful as hands-on managers running their own P&Ls at a core franchise.
Boards also like former CEOs. As noted, the outsiders brought in to revive the sagging fortunes at Lowe’s,GE, and Xerox are all former chief executives––Visintin had previously run process automation provider Novitex. The CFO slot is the second leading stepping stone, though former finance chiefs lag far behind the business unit leaders. Last year was a good year for ex-CFOs, five of whom rose to CEO including Hans Vestberg ofVerizonand Howard Willard of Altria. Other staff jobs seldom lead to the CEO suite: Only 9% of CEOs named in the last five years came from marketing, and even fewer, 5% rose from back-office operations.
Most CEOs are extremely well-educated. Of the classes from 2014 to 2018, over 60% had a graduate degrees, and almost half boasted MBAs. Harvard Business School dispensed 11 out of those 62 diplomas.
The top training ground for CEOs? It’s PepsiCo by a wide margin. Nine CEOs named since 2014 worked at Pepsi, among them Brian Cornell ofTarget, who ran the Americas Foods division at Pepsi, Ed Bastian ofDeltawho was controller of Frito-Lay, Greg Creed, who established Taco Bell and KFC in Australia and New Zealand, and Thomas Bene of Sysco, who ran Pepsi’s food service franchise. Seven are still in the CEO chair; only former Kraft chief John Cahill, now vice chairman ofKraft Heinz, and formerExpress ScriptsCEO Timothy Wentworth, who runs the Express business following its acquisition byCigna, have new roles.
Why is Pepsi such a great place to learn? Though you might think it’s primarily a marketing machine, Pepsi clearly prided itself on cycling promising managers through a wide variety of roles, so that careers often bridge job in finance, manufacturing, and building and running big brands franchises across the globe. And historically the company has operated one of the top rated, talent-building HR programs in America.
Last year, just one of the 23 newly-appointed CEOs was a woman––Michelle Gass ofKohl’s, who’d joined the retailer in 2013 fromStarbucks, and was fast-tracked to the top. That sorry record is a downshift from 2017, when two women were named, Gail Boudreaux atAnthemand Geisha Williams at PG&E. Williams resigned in January just before the utility, devastated by California wildfires, filed for bankruptcy. Since 2014, only nine of the 134 new CEOs have been women. And amazingly, big cap America’s efforts at inclusion are failing at what should be the ultimate measure of success, swelling the number of female CEOs.
In 2018, for example, three women left the list via retirement, Indra Nooyi of Pepsi, Meg Whitman at Hewlett Packard, and Debra Reed at Sempra Energy—so the female CEO ranks slipped by two. Women account for over one-fourth of all the America’s executive talent. Yet at last count, only 17 of the S&P 250 have female CEOs.
So why do big companies struggle to elevate women to the CEO suite? Feigen notes that many big companies too often fail to identify women in their 30s with strong potential, then move them through a series of varied assignments to mold well-rounded leaders. “Companies think about CEO succession three to five years out,” he says, “yet they fail to develop a deep pool of female candidates who’d be ready for the top job in that short time-frame.” He also cites the grueling travel schedules and 24-7 availability that can discourage some women with families for taking top operating jobs. “You also can’t underestimate hidden bias by male bosses, who wrongly convince themselves that women won’t have the drive necessary to succeed in key jobs running a P&L,” he says.
Big companies stick doggedly to the little-changing “best practices” that have guided the CEO succession dynamic for decades. But boards are failing to identify women with the ability and drive to become superstars, then nurture careers that should be creating many of America’s greatest CEOs. The tradition-bound succession process needs an upheaval, an all-out campaign to bring female talent to the top. |
UPDATE 1-Goldman Sachs lowers rate paid on Marcus savings accounts
(Recasts with detail on timing of rate change)
By Elizabeth Dilts
NEW YORK, June 27 (Reuters) - Goldman Sachs Group Inc lowered the annual return paid to holders of its popular Marcus high-yield savings accounts on Thursday.
Goldman Sachs notified customers by email that their annual percent yield would fall to 2.15% before the end of the day. The rate the bank had advertised as paid to customers of Marcus high-yield accounts was as high as 2.25% in recent months.
"We aim to always provide competitive rates on all our savings products," Goldman Sachs spokesman Andrew Williams wrote in an emailed statement.
"As rates on certain products change based on market conditions, we will continue to provide consistent value to our customers across all of our products."
The high-yield savings accounts offered through Marcus are among the first retail bank products offered by the legacy Wall Street investment bank, and have had broad adoption among customers new to the bank.
Marcus has more than $46 billion in online retail deposits from U.S. and UK customers, bank executives said in April. (Reporting by Elizabeth Dilts Editing by Tom Brown) |
Shaw Communications Inc. (SJR) Q3 Earnings Call Transcript
Image source: The Motley Fool.
Shaw Communications Inc.(NYSE: SJR)Q3 2019 Earnings CallJune 27, 2019,9:30 a.m. ET
• Prepared Remarks
• Questions and Answers
• Call Participants
Operator
Welcome to Shaw Communications Third Quarter 2019 conference call and webcast. Today's call will be hosted by Mr. Brad Shaw, CEO of Shaw Communications.0
At this time, all participants are in a listen-only mode and the conference is being recorded. Following the presentation, there will be a question and answer session. To join the question queue, simply press * and 1 on your touchtone phone at any time during the call. Should anyone need assistance during the conference call, they may signal an operator by pressing * and zero on their telephone.
Before we begin, management would like to remind listeners that comments made during today's call will include forward-looking information and there are risks that actual results could differ materially. Please refer to the company's publicly filed documents for more details on assumptions and risks.
Mr. Shaw, I would now like to turn the call over to you.
Bradley Shaw--Chief Executive Officer
Thank you, Operator, and good morning everyone. With me today are members of our senior management team, including Jay Mehr, Trevor English, and Paul McAleese.
Earlier this morning, we released our third quarter operating and financial results for fiscal 2019, reflecting our continued focus on wireline execution and strong growth in our wireless business. While the quarter included a $15 million payment related to IP matters that impacted the reported results, the underlying performance of our business remained solid, and Trevor will walk us through this in more detail.
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In wireless, we had another terrific quarter with total net additions of approximately 62,000 compared to 47,000 a year ago. Included in the result is 61,000 postpaid subscriber additions and record low postpaid churn of 1.18. Clearly, our strategy to grow this customer segment through an improved network experience, the latest devices, and affordable data-centric plans are delivering great results. We also added approximately 800 prepaid customers in the quarter, a significant change in trajectory from the recent quarters due to the success of our new plans launched on April 4.
Eighteen months ago, Freedom Mobile permanently changed the Canadian wireless industry with our Big Gig data plans, which featured large buckets of fast LTE data and no overage charges. In recent weeks, each of the incumbents was finally forced to respond to our success by launching their own more expensive versions of our Big Gig plans. It's now absolutely clear that Canadian wireless prices are coming down and that Freedom Mobile is the catalyst for this change.
For the Big 3, these new rate plans offer a dramatic about-face from expensive data overages that their customers have been paying for years. It's just too bad they haven't gone far enough. If you are a customer of one of the incumbents, chances are you are still struggling with your current data plan and its toxic overage fees. Meanwhile, all Freedom Mobile postpaid customers can use their phones and devices with no limits, just as they have always been able to. We have worked hard to reset Canadians' expectations of their wireless providers and the competition is learning to follow our lead. While the recent pricing moves have attracted a lot of attention, they have yet to have any meaningful impact on our customer acquisition initiatives, and we remain confident that the value of our Big Gig plans continues to resonate with Canadians.
In our wireline business, we added approximately 7,000 broadband customers. This is a significant improvement from a year ago in a seasonally challenging quarter due to student disconnects that happen in May. Our year-to-date broadband net additions reflect a more consistent and improving trend compared to the previous year and is a direct result of our focus on execution.
While it is still early days with our Blue Curve platform, we are pleased with its progress, which has met all of our targets and is a technology that lends itself well to our digital strategy, including a robust self-install experience. During the quarter, self-install increased again to 41% of total consumer activity, and we expect this improving trend to continue.
We also recently launched IPTV in Calgary and expect to roll out this service to additional key markets over the next several months. The main benefits related to the introduction of IPTV include lower success-based capital as well as a lower service delivery cost as video becomes much easier to self-install.
As we launch IPTV in additional markets, our overall video strategy has not changed and remains focused on profitability. During the quarter, we closed two significant transactions that align with our overall connectivity strategy. The acquisition of the 600-megahertz spectrum across our entire wireless footprint was critical for us and will significantly improve our LTE network and enable us to participate in the 5G landscape as it unfolds.
We also completed the sale of our 39% equity stake in Corus on May 31. The sale of the Corus investment is consistent with our strategy that we embarked on over three years ago. This included the divestiture of our media and data center assets and a pivot into wireless. Since that time, we have made significant investments in the wireless network which have materially improved Freedom's quality and customer experience. We continue to believe we have tremendous growth opportunities ahead as we start to bring wireless and wireline together in F20.
Now I'll turn the call over to Trevor to go through the Q3 results in more detail.
Trevor English--Executive Vice President, Chief Financial Officer
Thank you Brad, and good morning everyone. The third quarter results that we released this morning include some items that impacted our reported figures and do not accurately reflect the underlying performance of our business.
On a consolidated basis, Q3 revenue of $1.3 billion increased 2.7%, driven by continued growth in our wireless and business divisions. Reported EBITDA decreased 1.5% to $530 million; however, this quarter included a $15 million payment to address certain matters with a large IP licensing company. The comparable period, or Q3 F18 to be more specific, also included a CRTC retroactive roaming benefit of approximately $13 million. Excluding both, the underlying EBITDA performance in the quarter was up almost 4% to $545 million.
In our wireless business, which delivered another solid quarter of subscriber and financial growth, servicing revenue increased 22% to $178 million as we continue to grow our sub base and APU. Wireless equipment revenue declined by approximately 9% year-over-year to $73 million as a larger portion of subscribers in the quarter were BYOD, our churn metrics continued to improve, and our mix of prepaid and postpaid customers is more balanced, consistent with what we disclosed on the last conference call. Wireless EBITDA was $55 million in the quarter, an increase of 38% when adjusting for the $13 million roaming benefit in Q3 F18.
In wireline, Q3 consumer revenue was essentially flat at $925 million compared to the prior year, while business revenue of $150 million increased over 6%. Reported wireline EBITDA of $530 million declined 1.5% year-over-year.
However, when considering the $15 million IP licensing payment, EBITDA actually grew 1% and our wireline margin was in line with previous quarters.
Capital expenditures of $280 million in the quarter was approximately 9% lower than last year with continued reductions in wire line partially offset by increased wireless spending. We expect substantial capital investment for wireless in Q4 as we continue the deployment of the 700 spectrum and launch our wireless network in 10 additional communities by the end of August. We still expect total capex within our wireless business to be approximately $400 million this year.
In the quarter, approximately 350 employees exited as part of our VDP program. On a year-to-date basis, we have achieved $73 million in net operating cost savings and $25 million in net capital cost savings. As we expressed last quarter, the operating savings continue to run slightly ahead of schedule, while capital is a bit behind.
In Q3, we reinvested approximately $5 million of operating costs in a variety of projects related to enabling our VDP program. We are still expecting to reinvest a total of $10 million to $15 million in the second half of fiscal '19 with approximately 60% of this spend recurring. Therefore, Q4 reinvestment will be at least the same as Q3 or likely a bit higher.
As we continue to make our way through the VDP program, there have been some minor shifts compared to our original plan, and we wanted to be as transparent as possible with investors. In fiscal '19, we now expect net operating savings to be approximately $95 million and $40 million in net capital savings for a total of $135 million, which is materially in line with our original plan of $140 million.
Considering our year-to-date results, we are refining our fiscal 2019 guidance, which excludes the $15 million IP licensing payment. We expect EBITDA growth of 6%, a capital investment of approximately $1.2 billion, and free cash flow is expected to be approximately $550 million. As Brad mentioned earlier, we completed the acquisition of 600-megahertz spectrum for $492 million, as well as the sale of Corus shares this quarter that generated approximately $525 million.
Considering both transactions, we continue to have significant balance sheet flexibility and liquidity, with leverage at approximately 1.8 times, and we have significant cash on hand of approximately $1.4 billion to fund the remaining VDP payments, which is around $175 million over the next 12 months, and our $5.65 billion notes that mature in October.
Brad, back to you for closing remarks.
Bradley Shaw--Chief Executive Officer
Thank you, Trevor. Our year-to-date performance in fiscal 2019 is very much on plan as we continue to grow wireless and broadband. We are making smart investments in our business to streamline operations and transition to a more efficient organization. We are successfully managing through change while delivering net savings to the bottom line.
As we confirmed through our refined guidance, we expect a solid close to fiscal 2019 and look forward to discussing our F20 strategic priorities and targets with you in October.
Thank you, and we'll now turn the call back to the operator for questions.
Operator
Thank you. We will now begin the question and answer session. To join the question queue, please press * then 1 on your touchtone telephone. You will hear a tone acknowledging your request. If you are using a speakerphone, please ensure you lift the handset before pressing any keys. If you wish to remove yourself from the question queue, you may press * then 2. Anyone who has a question may press * and 1 at this time.
Our first question comes from Vince Valentini of TD Securities.
Vince Valentini--TD Securities -- Managing Director
Thanks very much. Let me start with the guidance and just make sure we're all on the same page, Trevor. Correct me if I've done my math wrong, but to do 6% without the $15 million IP item this quarter, you need to do about minus-3% EBITDA year-over-year in the fourth quarter. Is there anything else in terms of a one-time in nature that we may have missed from last year or that you expect this year that drives that number to be so negative, or is that just the pacing of these sort of transition costs to VDP that you've been telegraphing?
Trevor English--Executive Vice President, Chief Financial Officer
Yes, sure Vince. Thanks for the question. I think we've been very transparent with the street that we as a management team are very focused on delivering stable and consistent results, and we're refining that we're at the top end of our guidance, which has been consistent since October when we first released our original guidance. We're delivering VDP net operating savings specific to the program. However, we've got some additional opex in the business as we progress through the year related to higher syndication costs, a bit higher marketing. We've got some higher reinvestments in Q4. I think the street really needs to look at their Q4 wireline EBITDA specifically and look at more considering the run rate over the last three quarters, as opposed to the Q4 F18 results.
I'll just remind you, from a revenue perspective in Q4 F18, if you recall, we had a full quarter benefit of rate adjustments in the quarter which was about $20 million, whereas this year we did have a rate adjustment during the year in April of this year for two months in Q3. However, the rate adjustment wasn't as significant, and I would say that there's a lot more proportion of our customers on contract. So, this annual rate adjustment isn't having as big an effect as it previously did.
So, I think your math is fairly accurate, Vince, but hopefully that gives you enough color in terms of the way that we're thinking about the business quarter over quarter and not necessarily, I think, the street maybe was making some assumptions on the Q4 F18 run rate, which was $516 million of EBITDA last year, and it's going to be tough to--We do expect a negative growth rate off of that number.
Vince Valentini--TD Securities -- Managing Director
Okay, thanks, Trevor. One more, maybe for Jay, the shift going on in the wireline business. The subscriber numbers other than internet -- I mean, if you look at video and phone and satellite, they were all down somewhat materially versus Q3 last year, but the revenue growth ticked up. Total wireline revenue growth up to 1% year-over-year growth was a little better than half a percent growth you'd been doing in the first two quarters of the year, so the strategy seems to be working. Can you give us any more data points and color on what you're seeing? I mean, obviously the customers you keep seem to have higher ARPU than the customers you're losing, but maybe you can talk about in more detail how you're managing through that process.
Jay Mehr--President
Yes, for sure. Thank you for the question, Vince. We're pleased with our wireline subscriber results in Q3. The 6,600 internet gains are a nice step forward, and everyone recognizes the usual student disconnects for Shaw in this quarter, and they were around the normal level. The plan is working. Our focus on video profitability is delivering exactly what we wanted it to deliver. Video churn has improved year over year, and so what you're seeing in those results is us being very segmented in terms of adding high-quality video subs.
To be fair, in terms of subscriber numbers the one that was a little disappointing for us was the phone number for the quarter, and quite frankly we had a little pick-up on churn in phone, which is not something that we've seen in previous quarters and not something that we've seen in June. So, we'll put a little bit more focus on that area, but very happy with where the rest of the numbers are. Internet revenue growth continues to be strong, up 6% year-over-year in Q3, and the mix that we're seeing in the business we like a lot.
You'll recall this year, we tried to--I mean, strategy's only strategy when it drives your behavior, and we tried to focus the business entirely on monthly recurring revenue, churn, and growing internet customers. So, it really is account-level MRR and profitability that's driving the consumer activity. I think as you get into F20, you'll see subscriber numbers in some of the other categories rebound a little bit just from the natural adjustment that we've gone through our strategy, but we're excited with where our monthly recurring revenue is headed and like where the consumer wireline business is going.
Vince Valentini--TD Securities -- Managing Director
Thanks. I'll leave it there. Thanks.
Operator
Our next question comes from Drew McReynolds of RBC.
Drew McReynolds--RBC Capital Markets -- Managing Director
Yes, thanks very much. Maybe I'll shift to you, Paul, on the wireless. Obviously, Brad, in your opening comments, you addressed some of this. I think the big question here is just the playbook from incumbents probably wanting to push you back down market, perhaps in response to the success you're having. Maybe just comment to your value proposition in the marketplace now versus three weeks ago, to the extent you can, and the extent to which you're comfortable with the amount of "oxygen" that you have in order to achieve your wireless growth objectives. Obviously, a big picture question.
Then maybe the opposite for you, Trevor. Can you comment on the cash tax situation for Shaw, just as we look out over the next couple years? Thank you.
Paul McAleese--President of Wireless
Hey Drew, it's Paul. Good morning. Yes, I think Brad's comments off the top are worth reiterating on a couple of fronts. Maybe first and foremost, it's nice to take a moment and properly acknowledge the sort of indisputable impact that we're having on wireless affordability in this country. If it wasn't clear before, it certainly is clear now. So, it's nice to see the incumbents coming down and sort of chasing us in that regard.
We've had a couple of years of continued market share gains, and that's really driven off the back of providing Canadian consumers with the value that they've been looking for. The last few weeks, we've watched the incumbents kind of cobble together these expensive and, frankly, fairly poorly architected imitations of our now two-year-old Big Gig plans. So, it's nice to see them kind of having shown up. Through a certain lens, it kind of appears that every new initiative of the Big 3 is designed to just charge customers more. Honestly, it's sort of like the incumbents is where pricing innovation goes to die these days.
We still have millions of Canadians that are going to be attracted to our value proposition because millions of Canadians are still getting charged excess overage fees, up to $100 a gig, and there's still a $1 billion-plus in toxic revenue floating around impacting Canadians' everyday lives. We look at these new unlimited plans from the incumbents, they really require the vast majority of their customers to spend more than they were spending previously in order to make sure that they have the certainty of no punishing fees. Frankly, it's kind of off-putting, and Freedom has long been providing a better alternative and we'll continue to do that.
We are very confident in our current run rate. As Brad said, we've seen no meaningful impact on our growth. So, the oxygen that you refer to is more than adequate for us to continue to achieve our growth objectives, and we're very confident in our position.
Trevor English--Executive Vice President, Chief Financial Officer
On the tax question, Drew, appreciate it. Clearly, there was a number of tax items in this quarter related to a few events that impact both the cash tax and also our net income effective tax rate. First of all, during the third quarter, we did realize a free cash flow benefit of approximately $20 million related to the resolution of a matter with the CRA regarding the timing of certain tax deductions we took in prior years. When that matter with the CRA was resolved, we reclassified $20 million of tax expense from current to deferred.
In net income this quarter, we did recognize roughly $100 million decrease in our deferred tax liability due to the recent reduction in Alberta tax rates from 12% to 8% being phased in over three years. Frankly, Drew, the impact our F19 current taxes is nominal as the first reduction is effective July 1. Then finally, just to be complete, there was a significant item impacting net income this quarter as the loss related to the Corus sale. However, I would say that that was roughly $100 million, and that's a capital loss, no impact on free cash flow.
Just to help you out from a modeling purpose, Drew, I think we're expecting cash taxes with all the movements this year to be around $165 million, in around that snack bracket. Going forward, I think if you wanted to use an effective tax rate of about 26% from a cash tax perspective, that's probably the right number. Hopefully that helps you.
Drew McReynolds--RBC Capital Markets -- Managing Director
That does, thank you.
Operator
Our next question comes from Jeff Fan of Scotiabank.
Jeff Fan--Scotiabank -- Analyst
Thanks, good morning. Maybe just to follow up on wireless, so questions for Paul to start off with. The ARPU or APU growth, ARPU I guess more specifically, decelerated a little bit this quarter. Wondering how you see that growth going forward and what you think you guys need to do, or what you'd need to see from the industry to see that growth reaccelerate.
Then a question on the IP licensing of $15 million. Can you give us a little bit more color on what this was related to within cable? Was this related to anything to do with the X1 video platform or was it something else? Is this truly one-time, or there could be more related? Just wanted to get a little bit more color there, thanks.
Paul McAleese--President of Wireless
Hi Jeff, it's Paul. Yes, on ARPU and APU, we still like our APU growth story. I know our metrics this quarter probably was a little bit behind where consensus was. Bear in mind that this was a quarter in which we did see the need to discount some of our incoming class of subscribers because of a fairly hot competitive environment. I'm still confident that there's a great story on ARPU growth over the course of the next number of quarters.
In terms of accelerating it, some of what we've seen from the incumbents in recent weeks may create an opportunity. They're presuming in their math that they're going to be able to take customers up closer to that $75 price point. So, as we formulate our response over the coming weeks, there may be some opportunity for us to similarly pick up some of that momentum. We still like our story there, it's a positive one. We've still got market-leading growth on APU. I'd say continue to watch this space as we formulate our response.
Jay Mehr--President
Awesome. Jeff, it's Jay. On the IP licensing deal, I think you can appreciate in our disclosure that these kinds of deals are complex and have confidentiality elements to it. So, I'm sure you can understand the nature of it. To your specific question, this is not a commercial transaction with one of the partner-led, strategic partners that we've identified in the past. So, it's not related to a transaction with Comcast or with Meraki or with Nokia. It's an IP licensing deal and you can see our disclosure on it, and we've got a coverage that we're pleased with. This was my deal. We concluded this deal. We're happy with the outcome. We're happy with what it sets forward for the future and can't really disclose much more than that just because of the nature of the transaction. But it's not related to any of our ongoing partner-led, strategic named partners that we've talked about in the past.
Jeff Fan--Scotiabank -- Analyst
Okay, thanks, guys.
Operator
Our next question comes from Maher Yaghi of Desjardins.
Maher Yaghi--Desjardins -- Analyst
Thanks for taking my question. I wanted to maybe just get your views on how you see margins behaving going forward after most of the VDP savings are behind you now. Beyond, let's say Q4, now we have a pretty good idea where you're sitting, but are there additional margin areas you can work on to get some lift in your business, either wireless or wireline? As you continue to roll out wireless into 2020, can you talk a little bit about your capex plans in general? No need to put out a number if you don't have to, but just trying to figure out your views on 5G deployment and your spectrum position for that.
Trevor English--Executive Vice President, Chief Financial Officer
Sure, Maher. Thanks for the question. It's Trevor, maybe I'll start. There's a lot there. In terms of the wireline margin question, maybe we'll break up the margin question into wireline and wireless. From a wireline perspective, we're really happy with the performance of the business. You can see we're delivering roughly $95 million of VDP savings. We're still on track, like we always said, about $250 million of total VDP savings in F20, and that's sort of a 50/50 split between opex and capex, or maybe it's a little higher, 60/40. We'll update that, but it's in that snack bracket.
We've got some other opportunities on the cost side of things. We talked about the roll-out of IPTV just beginning here in May in Calgary in Brad's remarks. We're rolling out that service throughout the majority of our footprint by the end of this year. We think that supports a very robust self-install experience, so there are some costs from that perspective. We're focused on digital, which again lowers call volumes into our call centers. There're other costs here that we think there are some opportunities to get some more efficiencies.
However, that being said, there are also some other costs within the business that are going up as our partnership that Jay mentioned with some of our key suppliers, like Comcast and others as we're successful with rolling out Blue Curve. There's always an element of variable costs with the success there. We continue to see that the margin within the wireline business, continue to see some opportunity, but clearly, there's been substantial growth this year from previous years and that was probably the easy work behind us. We've got some chopping to do, but we're excited about what we can do.
On the wireless side, I would say this quarter I think was about a 22% margin. I think Paul on the last quarter talked a little bit about where we're clearly generating a little bit more margin from the scale of the operations and we continue to expect that. But I think you're going to see a gradual increase in margins over F20. We don't want to get too far ahead of ourselves, but it's probably continuing margin expansion from here but not in a significant material manner.
Then on your wireless capex question, I think that was the last one--
Maher Yaghi--Desjardins -- Analyst
Yes.
Trevor English--Executive Vice President, Chief Financial Officer
Listen, I think the last couple of years or this year we've talked about around $400 million of capex. We continue to think that that's about the approximate number in F20. We'll crisp that up, obviously in October, but we don't see significant increases to the overall amount of wireless capital over the coming years to live into a world of improved LTE service in foundation for 5G as well.
Maher Yaghi--Desjardins -- Analyst
Great to hear, thank you.
Operator
Our next question comes from Sidd Dilawari of Cormark Securities.
Siddhant Dilawari--Cormark Securities -- Analyst
Good morning, guys. I think at this point most of the questions have already been addressed, but just a quick one on wireless for Paul. I think this was the second quarter of declining equipment revenue. How do you see that impacting the APU going forward? And then overall, how do you see this impacting the wireless business overall margin? I think for margins; it should be positive given that you guys do have better margins. So, just looking for some feature or commentary on that.
Paul McAleese--President of Wireless
Yes, thank you. You're spot on. We have seen some of the reflection, the kind of moderating of ARPU and APU is related to some inbound success on prepaid, but the larger driver of it is a fairly significant pick-up in BYOD as a percentage of our overall volume in the last couple quarters. That is very much accretive to margins. So, we're pleased with that. We also love that it sets up, as we move into the autumn, where the initial cohort of iPhone 8 and iPhone X subscribers on competitive networks start to roll off their two-year financing plans. We really like what that's doing for us. You're absolutely right to pick that up.
That does, of course, have a negative impact on equipment revenue but given that that's a generally no to negative margin line for us anyways, that's something we're not overly concerned about. We like where that's heading, and we'll continue to press on that opportunity as it presents itself.
Siddhant Dilawari--Cormark Securities -- Analyst
Okay. Just another quick one on 5G roll-out. Is there any plan on acquiring high band spectrum, or we're good with where we are with the low band acquisitions we've made recently?
Paul McAleese--President of Wireless
I'm sorry, you just blipped on--acquire what spectrum?
Siddhant Dilawari--Cormark Securities -- Analyst
Sorry-high band spectrum.
Paul McAleese--President of Wireless
Yes, we're just following the road map that ISED and the CRTC are putting in place for the spectrum auctions. We're not commenting further beyond the 3.5.
Siddhant Dilawari--Cormark Securities -- Analyst
Okay, thanks. That's everything for me.
Operator
Once again, if you have a question, please press star then one. Our next question comes from Adam Ilkowitz of Citi.
Adam Ilkowitz--Citi -- Analyst
Thanks, good morning. I wanted to dig into free cash flow for a moment, the $176 million in the quarter and the raised guidance for the year. There seemed to be a pretty big property sale during the quarter which helped the quarter, as well as the $20 million tax item that you had mentioned in the Q&A. Can you explain to us how investors should think about the about $550 million and how it's impacted by any one-timers that may not be recurring? Thanks.
Trevor English--Executive Vice President, Chief Financial Officer
Thanks. On the tax piece of it, I think I answered it earlier, we did realize about $20 million related to a resolution of a matter with the CRA. However, I would say that we had previously incurred higher cash taxes due to that. So, I think it is sort of a true-up in timing, and I wouldn't call that one time. I would say it's more about timing. On the sale of the building, I guess that it netted off. It's within our overall capital budget, which still remains at $1.2 million. I wouldn't say that we were trying to treat the sale of the building that impacts free cash flow. Again, I know it's a little messy on the cash taxes, it looks a little light this year, and it's because of that $20 million.
Adam Ilkowitz--Citi -- Analyst
I guess the sale of the building during the quarter, was that included in your previous $500 million free cash flow guidance?
Trevor English--Executive Vice President, Chief Financial Officer
No, it was never part of free cash flow.
Adam Ilkowitz--Citi -- Analyst
Okay, I can probably take that offline. My second question is on the wireline side. I'm kind of intrigued as to the margins, which have been roughly stable. With the amount of people coming off from the VDP program, can you talk about besides that what may be causing margins to be perhaps negatively impacted that would leave them flat, rather than seeing an upward trajectory to margins? Thank you.
Trevor English--Executive Vice President, Chief Financial Officer
Yes, we talked about it a little bit, Adam. We do have some other costs within the business that ticked up, and they're not just costs related to the VDP enablement program. There are regular merit increases in the business for the employees. There're the syndication costs that are becoming a more important line item or a bigger line item within the business considering our partner-led solutions. So, there are a few other costs that have increased obviously to offset some of the VDP savings. But clearly, we're very happy with the way the VDP program is going and we're realizing the savings. The headcount is staying out of the business, but there are just some other costs within that have ticked up just a little bit, network programming costs, things like that.
Jay Mehr--President
You can see that already. It's Jay, Adam. We're quite confident in the direction of wireline profitability in our strategy. We're quite confident in the free cash flow profile of our company and where we're headed in subsequent years. But the work that the team has done on VDP and the entire transformation has been extraordinary. This quarter alone, we have truck rolled down 30% year-over-year. This is a good start to a modern Shaw. All of our fundamentals are in place and while coaches take losses and teams take wins, VDP and the work to transform our wireline business is working and the team is doing extraordinary. So, we're excited about the future.
I understand the math you're doing. The free cash flow characteristics and the characteristics of the wireline business going forward, it's something we're very excited about.
Adam Ilkowitz--Citi -- Analyst
Thank you very much.
Operator
Mr. Shaw, there are no more questions at this time. This concludes the time allocated to today's conference call. You may disconnect your lines. Thanks for participating and have a pleasant day.
Duration: 36 minutes
Bradley Shaw--Chief Executive Officer
Jay Mehr--President
Paul McAleese--President of Wireless
Trevor English--Executive Vice President, Chief Financial Officer
Vince Valentini--TD Securities -- Managing Director
Drew McReynolds--RBC Capital Markets -- Managing Director
Jeff Fan--Scotiabank -- Analyst
Maher Yaghi--Desjardins -- Analyst
Siddhant Dilawari--Cormark Securities -- Analyst
Adam Ilkowitz--Citi -- Analyst
More SJR analysis
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BMWs New Electric Motorcycle Concept Looks More Street-Ready Than Ever
Click here to read the full article. Like many luxury marques, BMW is committing to our electric futureand not just with high-design car concepts. On Tuesday, the Bavarian automakers motorcycle division, BMW Motorrad, revealed an its latest electric bike concept , the Vision DC Roadster, at its NEXTGen event in Munich, according to CNET . While no performance specs were made available, the bike, which looks as street ready as any of the companys previous attempts, offers a striking hint of what an actual consumer electric motorcycle from the company would actually look like. Related stories BMW's New Electric Motorcycle Concept Looks More Street-Ready Than Ever This Hotel Package Will Let You Drive the New BMW X7 on One of the World's Most Scenic Highways Lamborghini's New Huracán Sterrato Concept Is an Eye-Popping Off-Road Supercar Like any good BMW concept, the Vision DC Roadster has plenty of style to spare. But as sleek as the black-and-white bike may be, its significantly toned down compared to the companys recent conceptsin particular, the Vision Motorrad Next 100 . While there are still some daring design touches, like the the exposed universal shaft and the Duolever fork, the company has mainly drawn inspiration from its 95-year history to produce a bike that will turn heads without looking out of place on the highway. The Vision Bike shows how were able to retain the identity and iconic appearance of BMW Motorrad in distinctive form while at the same time presenting an exciting new type of riding pleasure, BMW Motorrad Head of Design Edgar Heinrich said in a press release. You dont need to look any further than the Vision DC Roadsters engine for proof of that ethos. Since electric engines are much more compact than their gas-powered counterparts, BMW Moterrad maintained the look of its trademark boxer engine by placing the bikes large vertically fitted battery atop the smaller, cylindrical motor. And from there, two side elements protruding with cooling ribs and integrated ventilators make sure the bike isnt at risk of overheating. While BMW was quick to say there are no plans to release the Vision DC Roadster, which it calls a highly emotional naked bike with electric drive, its seems pretty clear that the underlying building blocks from the concept will make their way into a production motorcycle at some point. Either way, with the bike and the companys other recent car concept, the Vision M Next , the futures looking bright for fans of the Ultimate Driving Machineand the environment. Sign up for Robb Report's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Is Corporación América Airports S.A. (NYSE:CAAP) A Financially Sound Company?
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While small-cap stocks, such as Corporación América Airports S.A. (NYSE:CAAP) with its market cap of US$1.2b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Assessing first and foremost the financial health is vital, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. 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 recommend youdig deeper yourself into CAAP here.
CAAP has shrunk its total debt levels in the last twelve months, from US$1.2b to US$1.1b , which also accounts for long term debt. With this debt repayment, CAAP's cash and short-term investments stands at US$309m to keep the business going. On top of this, CAAP has generated US$160m in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 14%, signalling that CAAP’s operating cash is less than its debt.
At the current liabilities level of US$448m, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.14x. The current ratio is the number you get when you divide current assets by current liabilities. For Infrastructure companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
CAAP is a relatively highly levered company with a debt-to-equity of 94%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In CAAP's case, the ratio of 4.54x suggests that interest is appropriately covered, which means that lenders may be willing to lend out more funding as CAAP’s high interest coverage is seen as responsible and safe practice.
Although CAAP’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. Since there is also no concerns around CAAP's liquidity needs, this may be its optimal capital structure for the time being. Keep in mind I haven't considered other factors such as how CAAP has been performing in the past. You should continue to research Corporación América Airports to get a more holistic view of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CAAP’s future growth? Take a look at ourfree research report of analyst consensusfor CAAP’s outlook.
2. Valuation: What is CAAP 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 CAAP 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. |
CLASS ACTION UPDATE for BE, MOMO and HRTX: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders
NEW YORK, NY / ACCESSWIRE / June 27, 2019 /Levi & Korsinsky, LLP announces that class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies. Shareholders interested in serving as lead plaintiff have until the deadlines listed to petition the court and further details about the cases can be found at the links provided.
Bloom Energy Corporation (BE)
Class Period: on behalf of all persons who purchased or otherwise acquired Bloom Energy common stock pursuant or traceable to Bloom Energy's July 2018 IPO.Lead Plaintiff Deadline: July 29, 2019Join the action:https://www.zlk.com/pslra-1/bloom-energy-corporation-loss-form?prid=2118&wire=1
The complaint alleges that Bloom Energy's Registration Statement was materially misleading as it failed to disclose known events and trends that were severely affecting the Company's business and that made investment in Bloom Energy significantly riskier than presented in the Registration Statement. In particular, the Registration Statement failed to disclose that the Company was experiencing material construction delays. These construction delays would cause system deployments (or "acceptances" as Defendants referred to them) to fall significantly below even the low end of the Company's previously announced guidance.
While the Registration Statement purported to warn of risks that "may arise," which could materially affect the Company, in actuality these material negative events were already occurring. As a result, the representations and purported risk disclosures were false and misleading because, by the time of the IPO, construction delays had already impacted or would soon impact Bloom Energy's ability to deliver acceptances in line with its guidance.
To learn more about theBloom Energy Corporationclass action contactjlevi@levikorsinsky.com.
Momo Inc. (MOMO)
Class Period: April 21, 2014 - April 29, 2019Lead Plaintiff Deadline: July 15, 2019Join the action:https://www.zlk.com/pslra-1/momo-inc-loss-form?prid=2118&wire=1
The lawsuit alleges: Momo Inc. made materially false and/or misleading statements throughout the class period and/or failed to disclose that: (i) Momo's compliance procedures and controls were inadequate to prevent, inter alia, illicit financial reporting activity; (ii) Momo's social and dating app, Tantan, was materially noncompliant with PRC law and/or regulations; (iii) Tantan was consequently at an increased risk of being removed from Chinese app stores at the direction of Chinese governmental authorities; and (iv) as a result, Momo's public statements were materially false and misleading at all relevant times.
To learn more about theMomo Inc.class action contactjlevi@levikorsinsky.com.
Heron Therapeutics, Inc. (HRTX)
Class Period: October 31, 2018 - April 30, 2019Lead Plaintiff Deadline: August 5, 2019Join the action:https://www.zlk.com/pslra-1/heron-therapeutics-inc-loss-form?prid=2118&wire=1
The lawsuit alleges that, during the class period, Heron Therapeutics, Inc. made materially false and/or misleading statements and/or failed to disclose that: (i) Heron had failed to include adequate Chemistry, Manufacturing, and Controls ("CMC") and non-clinical information in its NDA for HTX-011; (ii) the foregoing increased the likelihood that the FDA would not approve Heron's NDA for HTX-011; and (iii) as a result, Heron's public statements were materially false and misleading at all relevant times.
To learn more about theHeron Therapeutics, Inc.class action contactjlevi@levikorsinsky.com.
You have until the lead plaintiff deadlines to request the court appoint as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Levi & Korsinsky is a national firm with offices in New York, California, Connecticut, and Washington D.C. The firm's attorneys have extensive expertise and experience representing investors in securities litigation, and have recovered hundreds of millions of dollars for aggrieved shareholders. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLPJoseph E. Levi, Esq.55 Broadway, 10th FloorNew York, NY 10006jlevi@levikorsinsky.comTel: (212) 363-7500Fax: (212) 363-7171www.zlk.com
SOURCE:Levi & Korsinsky, LLP
View source version on accesswire.com:https://www.accesswire.com/550180/CLASS-ACTION-UPDATE-for-BE-MOMO-and-HRTX-Levi-Korsinsky-LLP-Reminds-Investors-of-Class-Actions-on-Behalf-of-Shareholders |
9 Media and Entertainment Stocks to Buy for Dividends
Value and income await investors. The media industry may seem like a challenging place in 2019. Beyond the digital disruption to traditional outlets thanks to mobile and streaming options, there also is increased focus on marketing practices that some see as an invasion of privacy. Income investors, however, know broad pessimism about an industry often leads to bargain valuations and investments that generate reliable dividends despite all the doomsday talk. There is a customer base that lends itself to a long-term, income-oriented strategy. Even Warren Buffett has a history of investing in local newspapers for precisely these reasons. If you're looking for dividends, then, consider one of these nine media stocks with generous paydays for an income portfolio. AMC Entertainment Holdings (ticker: AMC ) Filmgoers recognize AMC, the theater giant that has a stake in more than 630 cinemas in the U.S. and another 370 or so in Europe adding up to more than 11,000 big screens. Reach like that ensures a steady stream of revenue for this stock, since there is always strong baseline demand for movies even in the age of mammoth plasma-screen TVs. There's just something magical about the silver screen, and AMC's continued investment in premium recliners and in-seat food service makes it a treat customers enjoy. With a dividend that is almost twice the typical large-cap stock , income investors have a reason to stick with AMC, too. Current yield: 4% Cinemark Holdings ( CNK ) Another cinema entry is Cinemark, which operates 340 theaters in the U.S. and more than 200 across South America, from Chile to Panama. All told, CNK manages about 6,000 screens worldwide. Operating a large-scale movie network requires big capital expense, but once it's up and running you enjoy the benefit of close relationships with studios and a near-monopoly on the biggest blockbusters when they debut. And considering this season's major hit "Avengers: Endgame" could gross a staggering $3 billion globally, it is very clear that streaming video options at home haven't killed the appeal of cinemas. Story continues Current yield: 3.7% National CineMedia ( NCMI ) National CineMedia, a different kind of movie stock, manages various forms of in-theater advertising. This includes pre-show videos as well as a "lobby entertainment network" that can include smaller screens, signage and other ad opportunities located near the snack bar or restrooms. NCMI inks long-term agreements with theaters, giving these partners a cut of the revenue in exchange for the real estate to serve its ads, making it a win-win arrangement theaters are eager to keep in place to juice their profits. And as NCMI shares that cash with shareholders via a double-digit dividend , it's also an investment worth considering for dividend portfolios seeking media stock exposure. Current yield: 10.3% Outfront Media Inc. ( OUT ) Outfront is another unique advertising play, with a focus on billboard and mass transit ads such as on buses. It's not a particularly glamorous business, but with projected revenue growth of more than 8% this year, it's clear that brands see the benefit of real-world advertising. As with many of the stocks on this list, reach is key because it ensures long-term relationships with customers and operations that allow for economies of scale. Outfront has partnerships with New York City and Los Angeles transit systems and the expertise that makes it a go-to option for big brands. Current yield: 5.4% Interpublic Group ( IPG ) IPG is another advertising firm, operating consumer advertising, digital marketing, public relations and other specialized communications strategies for a wide array of clients. This range includes sports and event marketing to corporate branding to product awareness. Taking its roots in advertising icon McCann, which famously created Coca-Cola's "It's the Real Thing" tagline in the 1970s and Rice-a-Roni's catchy 1980s jingle, IPG has become the choice for some of the biggest brands in advertising after a series of high-profile mergers and acquisitions over the last decade or so. This has ensured it has the top talent and the best relationships with top clients across a variety of industries. Current yield: 4.1% Omnicom Group ( OMC ) Another advertising agency of note is Omnicom, a firm that bills itself as a digital leader in website analytics, content marketing, social media and other 21st century services in addition to the classic channels of print or broadcast media. It operates worldwide, from North America to Europe to Africa to Australia, and like IPG has a staggering array of clients across industries and geographies. This is crucial, both for a diversification of revenue as well as for the kind of scale necessary for a media company to succeed. After all, big advertising campaigns require a global approach and broad reach. Current yield: 3.2% Meredith Corp. ( MDP ) Meredith Corp. is one of the largest owners of magazines, TV stations and radio outlets in the nation. With nearly 100 years of history and big brands under its belt that include Better Homes and Gardens magazine , the firm began as a purely print endeavor but has evolved to include broadcast and internet-based outlets such as cooking site AllRecipes.com. Although it's hard to imagine revenue growing substantially in an era when cable TV and magazine subscriptions are declining, it's also naïve to think that either outlet is simply disappearing. Continued baseline demand will ensure strong income potential in this stock for the foreseeable future. Current yield: 4.2% Gannett Co. ( GCI ) Gannett is the newspaper giant behind USA Today, the No. 2 print publication in the United States behind only the Wall Street Journal, as well as about 150 local news brands in the U.S. and another 150 or so in the United Kingdom. It's worth noting that USA Today still boasts some 7 million readers of its paper product -- and with 21 million downloads of its mobile apps, Gannett is not sitting out the digital revolution. Revenue remains fairly flat, but with consistent profits, a strong history of dividends and a large yield , it is worth considering GCI stock as a long-term income-oriented investment. Current yield: 7.7% A.H. Belo Corp. ( AHC ) Far less known but equally noteworthy as an income play in the media sector is A.H. Belo, the publisher of the Dallas Morning News and several local media outlets across Texas, including some Spanish-language publications. The firm is small, at just under $100 million in market capitalization, but is highly specialized. It also has a strong history of generous dividends to shareholders, and right now boasts a yield that is roughly four times that of the typical stock in the S&P 500 index . There are risks in going smaller, to be sure, but that kind of payday makes AHC worth a look. Current yield: 8.6% Media and entertainment stocks to buy for dividends. -- AMC Entertainment Holdings ( AMC ) -- Cinemark Holdings ( CNK ) -- National CineMedia ( NCMI ) -- Outfront Media Inc. ( OUT ) -- Interpublic Group ( IPG ) -- Omnicom Group ( OMC ) -- Meredith Corp. ( MDP ) -- Gannett Co. ( GCI ) -- A.H. Belo Corp. ( AHC ) More From US News & World Report 10 of the Best Dividend Stocks to Buy for 2019 7 Tech Stocks to Buy With Great Dividends How to Pick Stocks: 7 Things You Should Know |
One Thing To Remember About The 2U, Inc. (NASDAQ:TWOU) Share Price
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Anyone researching 2U, Inc. (NASDAQ:TWOU) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first 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 are more sensitive to general market forces than others. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
See our latest analysis for 2U
As it happens, 2U has a five year beta of 1.01. This is fairly close to 1, so the stock has historically shown a somewhat similar level of volatility as the market. While history does not always repeat, this may indicate that the stock price will continue to be exposed to market risk, albeit not overly so. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see 2U's revenue and earnings in the image below.
2U is a reasonably big company, with a market capitalisation of US$2.3b. Most companies this size are actively traded with decent volumes of shares changing hands each day. We shouldn't be surprised to see a large company like this with a beta value quite close to the market average. Large companies often move roughly in line with the market. In part, that's because there are fewer individual events that are signficant enough to markedly change the value of the stock (compared to small companies, at least).
It is probable that there is a link between the share price of 2U and the broader market, since it has a beta value quite close to one. However, long term investors are generally well served by looking past market volatility and focussing on the underlying development of the business. If that's your game, metrics such as revenue, earnings and cash flow will be more useful. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as 2U’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 TWOU’s future growth? Take a look at ourfree research report of analyst consensusfor TWOU’s outlook.
2. Past Track Record: Has TWOU 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 TWOU's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how TWOU 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. |
Former Equifax executive gets 4 months for insider trading
ATLANTA (AP) — A former Equifax executive who sold stock a week and a half before the company announced a massive data breach was sentenced Thursday to serve four months in federal prison for insider trading. Jun Ying, former chief information officer of Equifax's U.S. Information Solutions, pleaded guilty in March. His prison time is to be followed by a year of supervised release, and he was also ordered to pay about $117,000 in restitution and a $55,000 fine, the U.S. attorney's office in Atlanta said in a news release. The Securities and Exchange Commission also levied insider trading charges against Ying, who has agreed to settle that case, prosecutors said in a court filing last week. In a court filing last week, prosecutors had asked for a sentence of a year and three months in prison and a $75,000 fine in addition to the restitution. Equifax disclosed the breach Sept. 7, 2017. The Atlanta-based credit reporting company ultimately revealed that the personal information of more than 145 million people had been exposed. The SEC has said that at the time of the breach, Ying was often entrusted with nonpublic company information. He was a leading candidate to become the global chief information officer of Equifax, a job he was offered on Sept. 15, 2017, the same day the company announced then-CIO Dave Webb would retire. At the time of Ying's indictment, the company said it had "separated him from the company" upon learning of his sale of Equifax shares and concluding he had violated its trading policies. The SEC complaint says Ying worked at Equifax until October 2017. Unidentified hackers accessed Equifax databases without authorization from mid-May through July in 2017 and obtained customers' personal information. Federal authorities say Equifax discovered the suspicious activity on its network on July 29, 2017. On Aug. 25, Ying, along with several employees who reported to him, were asked to help respond, although they were told then that the work involved a potential Equifax customer, not Equifax itself, the indictment says. Story continues "Sounds bad. We may be the one breached," and "I'm starting to put 2 and 2 together," Ying told a co-worker in text messages, according to the indictment. Three days later, on Aug. 28, 2017, Ying did searches using his Equifax computer on what happened to the Experian stock price after that credit reporting company experienced a breach in 2015. Later that morning, he exercised all his available stock options and received 6,815 shares of Equifax stock, which he sold for more than $950,000. That represented a gain of more than $480,000 and saved him a loss of about $117,000, prosecutors said. Ying is the second Equifax employee convicted of insider trading related to the data breach. A former Equifax software product development manager who exercised his "put" options and made a profit of about $75,000 before the breach was disclosed was sentenced in October to serve eight months home confinement after pleading guilty in Atlanta to insider trading. He was also ordered to pay a $50,000 fine, serve 50 hours of community service and forfeit proceeds gained from insider trading. Put options allow the holder to make a profit if the stock price drops. |
Introducing Boardwalktech Software (CVE:BWLK), The Stock That Tanked 90%
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As every investor would know, you don't hit a homerun every time you swing. But it would be foolish to simply accept every extremely large loss as an inevitable part of the game. So we hope that those who heldBoardwalktech Software Corp.(CVE:BWLK) during the last year don't lose the lesson, in addition to the 90% hit to the value of their shares. That'd be enough to make even the strongest stomachs churn. Because Boardwalktech Software hasn't been listed for many years, the market is still learning about how the business performs. Shareholders have had an even rougher run lately, with the share price down 16% in the last 90 days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
See our latest analysis for Boardwalktech Software
Given that Boardwalktech Software didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year Boardwalktech Software saw its revenue grow by 4.7%. While that may seem decent it isn't great considering the company is still making a loss. Even so you could argue that it's surprising that the share price has tanked 90%. We'd venture this growth was too low to give holders confidence that profitability is on the horizon. If and only if this company is still likely to succeed, just a little slower, this could be a good opportunity.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic.
Given that the market gained 1.1% in the last year, Boardwalktech Software shareholders might be miffed that they lost 90%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 16% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Envoy: US doesn't want war with Iran, but wants to be ready
PARIS (AP) — The United States does not want a full-blown war with Iran, although it still is seeking to build up international defenses in the region just in case of a conflict, President Donald Trump's special envoy to the country said Thursday. The big question is whether other countries are ready to join with Washington. So far, Europe is favoring diplomacy instead. Iran is poised to surpass a key uranium stockpile threshold, threatening an accord it reached in 2015 with world powers aimed at curbing its nuclear activity. Tehran made no immediate announcement Thursday that it had done so, perhaps waiting to hear what Europe can offer at a meeting Friday to keep the deal alive. French President Emmanuel Macron is trying to dial back tensions, saying he hopes to convince Trump to open talks with Iran and avoid a war that would engulf the Middle East. The two men are to meet Friday at a Group of 20 summit in Japan. "There is no brief war," Macron warned. "We know when it's starting, but not when it's finishing." Special Representative for Iran Brian Hook met with top European diplomats Thursday in Paris, and he told The Associated Press that he wants to get tougher on Iran, instead of clinging to the nuclear deal that the U.S. pulled out of last year. War with Iran is "not necessary," Hook said in an interview. "We are not looking for any conflict in the region," he said. But if the U.S. is attacked, "we will respond with military force." To that end, the U.S. is trying to drum up support for an international naval force in Persian Gulf, notably to protect shipping. "The president would like to see an international response of like-minded countries who could come together and contribute assets that could be used to enhance maritime security in the region," Hook said. But acting U.S. Defense Secretary Mark Esper, at his first NATO meeting this week, left Brussels with no firm commitments after discussing the idea with U.S. allies. Story continues Tensions have been rising in the Middle East after the U.S. imposed new sanctions on Iran to cripple its economy. Citing unspecified Iranian threats, the U.S. has sent an aircraft carrier to the region and deployed additional troops alongside the tens of thousands already there. The U.S. has been worried about international shipping through the Strait of Hormuz since tankers were damaged in May and June in what Washington has blamed on limpet mines from Iran, although Tehran denies any involvement. Last week, Iran shot down a U.S. Navy surveillance drone, saying it violated its territory; Washington said it was in international airspace. Iran recently quadrupled its production of low-enriched uranium as it slowly steps away from the nuclear deal. Even though Trump pulled the U.S. out of it, Britain, France, Germany, Russia and China are still part of the pact. Iran previously said it would surpass a 300-kilogram stockpile limit set by the accord by Thursday. Tehran made no statements about it, possibly because it was a holiday weekend in the country, but also because it could be waiting for the outcome of a key meeting Friday in Vienna by European officials on the nuclear deal. An Iranian official in Vienna said the country was 2.8 kilograms below that limit Wednesday, and there will be no new assessment until "after the weekend." Even if it surpasses that limit, "we are not breaching the deal," said the official, who spoke on condition of anonymity because of the sensitivity of the discussions involving the deal. The official insisted Iran wants to "save the deal" and urged Europeans to start buying Iranian oil or give Iran a credit line to keep the accord alive. At the United Nations, Majid Takht Ravanchi, Iran's ambassador to the U.N., told reporters that if his country exceeded the limit, it could be quickly reversed as soon as Tehran sees recovery in its oil and banking sectors, he said, adding that he hopes "tangible results can be achieved" in Vienna "so that we can reverse our decision." Hook wouldn't comment on whether Iran had surpassed the limit, but he estimated that Iran is still at least a year away from building a nuclear weapon. Iran denies that it seeks nuclear weapons. "That is the standard of the Iran nuclear deal, that Iran should never be able to get to a nuclear weapon in less than a year. This is relevant because Iran still is they still hold the title of the world's leading state sponsor of terrorism," he said. Iranian Foreign Minister Mohammad Javad Zarif sent a letter urging European signatories to the accord to implement their commitments, saying that Iran's next steps depend on that, Iranian state TV reported Thursday. Britain, France and Germany are finalizing a complicated barter-type system known as INSTEX to maintain trade with Iran and avoid U.S. sanctions, as part of efforts to keep the nuclear deal afloat. Hook dismissed those efforts, suggesting that no companies will use such a system because they'd rather trade with the U.S. than Iran. Instead, he said, "We would like to see the European Union impose sanctions on those people and organizations that are facilitating Iran's missile program. ... If you don't do sanctions, it also sends a signal of sort of tacit approval." He suggested frustration that France has not been more outspoken about Iran recently but played down any "trans-Atlantic rift." France is among those seeking to play a mediating role. Macron sent his diplomatic adviser to Tehran last week and spoke to Iranian President Hassan Rouhani this week. Many in Europe are relieved that Trump did not order military retaliation against Iran last week for the drone shootdown, but they are rattled that he was close to doing so. It is not clear whether the Trump administration discussed the operation with any European allies ahead of time. The U.S. announced additional sanctions Monday on Iranian leaders over the drone attack. Iran's Zarif criticized Trump on Thursday, tweeting that "sanctions aren't (an) alternative to war; they ARE war." The U.S. has said it may also sanction Zarif, who helped negotiate the 2015 nuclear deal. ___ Associated Press writers Philipp Jenne in Vienna, Edith M. Lederer at the United Nations and Jon Gambrell in Dubai, United Arab Emirates, contributed. |
Runway model JoAni Johnson, 67, shares secret to her gorgeous glow
JoAni Johnson walks the runway during Ozwald Boateng's Harlem runway show at the Apollo Theater in New York City. (Photo: JP Yim/Getty Images) It seems as though every day there’s a new ingredient that’s being touted as the most powerful when it comes to skincare. As a beauty director, my inbox is cluttered with pitches about products that boast lofty claims, such as “instantly brightens” or “eliminates wrinkles.” But whenever I find myself in the presence of my elders and we are talking about beauty, there are only a handful of products they’ve trusted on their bodies for years. And Vaseline has always been a staple, especially for many older black women, just like JoAni Johnson . Johnson is a 67-year-old model and she fully embraces her “ageless” look. The gray-haired stunner walked her first runway at 65 and has since racked up fashion credits that include strutting in designer Ozwald Boateng’s show at the iconic Apollo Theater and appearing in Pyer Moss and Fenty fashion campaigns. Standing confidently at 5’4-and-a-half inches (sans heels), I couldn’t help but be enamored by Johnson’s long silver locks, super-smooth skin and powerful aura. Even though she started her catwalk career later in life, she’s well aware of how the beauty industry can promote products that don’t work. Her advice to companies is simple: “Tell the truth.” “Not everything is going to look great on you. Not every single product — except for Vaseline — will work. So many things are hyped, and especially, when you have a captive audience and you tell them this is going to make you look younger, and it won’t,” she adds. One of Johnson’s earliest beauty memories involves watching her great-grandmothers do their beauty regimens in the mirror. They’d use Vaseline as a moisturizer and makeup remover, along with cold cream. So it makes perfect sense that she would partner with the brand for their new #ListenToYourMoms campaign . Having witnessed how good ol’ Vaseline has worked for the women in her family for generations, Johnson still swears by it today. “I happen to use products, on both my skin and hair, that have shea butter. But then I coat my [skin] with Vaseline . Because shea butter gets absorbed into my skin. So I need something to put on top of that to hold the moisture in,” she explains. Story continues With that being said, you’ll find me slathering HanaHana Beauty shea butter and Vaseline on every night before bed. Yahoo Lifestyle’s shopping team is committed to finding you the best products at the best prices. We may receive a share from purchases made via links on this page. Read more from Yahoo Lifestyle: 'Heaven sent': The $12 moisturizer black women are obsessed with 9 frizzy hair solutions we actually swear by — for as low as $4 The $18 leave-in conditioner Hailey Baldwin swears by Follow us on Instagram , Facebook , Twitter , and Pinterest for nonstop inspiration delivered fresh to your feed, every day. Want daily pop culture news delivered to your inbox? Sign up here for Yahoo’s newsletter. |
Law passed to restrict foreign film production in Tanzania
DAR ES SALAAM (Reuters) - Foreign companies filming in Tanzania must give the government the right to vet raw footage and let the country use the movie in promotional material, according to a bill passed by parliament on Thursday. Opposition groups said the bill - which still has to be approved by the president - would likely squash the country's fledgling foreign film ventures. "Putting these requirements in a law is like pushing away the individuals from working in Tanzania. These are not friendly conditions, instead of promoting the industry they will hold it back," said Salome Makamba, an opposition lawmaker. The Tanzanian government is increasingly intervening in all sectors of the economy, from mining to telecoms to agriculture. The state says it is increasing revenues and providing jobs, but analysts say heavy-handed interventions are driving away private investment. Arts and entertainment grew at 13.7 percent last year, twice the national economic growth rate of 7 per cent, according to the ministry of finance. The ministry did not provide numbers regarding national and international film investment. "This ... requires any foreign production company or individual using Tanzania's country, content or location for filming whole or any part of a film, advertisement, documentary or program to submit their raw footage to the Tanzania Film Board," Attorney General Adelardus Kilangi said. Filmmakers must also submit a finished copy of their work to the Tanzania Film Board or a delegated authority to get clearance before exiting Tanzania, he said. Foreign individuals or companies are also required to allow the government to use video clips or the whole film to promote Tanzania and its culture, he said. Failure to comply will leave the entity responsible for a fine of five percent of the production budget, he said. (Reporting by Nuzulack Dausen,; Editing by Katharine Houreld, William Maclean) |
Duane 'Dog' Chapman Just Revealed His Wife Beth's Final Words Before Her Death
Photo credit: Instagram/mrsdog4real From Prevention Duane "Dog" Chapman revealed his wife Beth Chapman's words before she died Wednesday morning. Beth, 51, died after being placed in a medically-induced coma to receive treatment for throat cancer. Beth was initially diagnosed with stage II throat cancer in 2017. Fans were shocked on Wednesday to learn that Beth Chapman, the wife of Dog the Bounty Hunter star Duane “Dog” Chapman, died while undergoing treatment for throat cancer. Now, her husband is sharing her final words. Duane spoke to reporters in Hawaii, where he and his family live, on Wednesday and said that his wife’s final words were focused on making sure that her family was okay. This happened just before Beth was reportedly placed in a medically induced coma after she had trouble breathing. “When she had an attack I didn’t know anything to do but to say ‘in Jesus’ name’ and hold her and when I said ‘in Jesus’ name’ she said, ‘Say it again, say it more,'” Duane told Hawaii News Now . “And then she told the girls and everybody, with her mouth — she came out of it a couple times — ‘I love you’ and ‘Are you guys all okay? Don’t worry,’ but she never accepted it.” View this post on Instagram Another bend in the Road yet not the End of the Road . #faith #love #stayhumblepray A post shared by Beth Chapman (@mrsdog4real) on Nov 29, 2018 at 3:54pm PST Duane said his wife was “so amazing…this is totally unbelievable." He also added that Beth left notes for him so that he could find them around their home after she died. “Beth was somewhat of a control person—not from the grave but from heaven,” he said. “I’m sure she’s still controlling me and I’ve got notes in my pillowcases, on my sink, in my shaving thing. She’s still telling me what to wear.” “She did it her way. There’s some things that they predicted that the doctors ended up saying, ‘We’ve never, ever, seen anything like this,'” he said. “Her way was to live. She wanted to live so bad and she fought so long, and the reason she fought, she liked life but she wanted to show people how to beat it and what to do when it got her.” Duane said that Beth also said cancer was “a test of my faith.” “She had faith and that was it,” he said. “There’s things you go through when you’re dying, like steps like you do when you lose someone, right? You get mad at them, and then you go through all these steps. Well, the last step when you’re dying is to accept it. And she said to me the other day, ‘Honey, that last step, I ain’t taking…’ So go Bethy.” Duane said his wife’s death “came very unexpected, really fast. All of her clothes were exactly where they were, her makeup, everything. We didn’t prepare.” He then teared up and said this: “It’s just incredible when you walk alone in the bedroom and you’re there and she was there two days ago.” Story continues It’s 5:32 in Hawaii, this is the time she would wake up to go hike Koko Head mountain. Only today, she hiked the stairway to heaven. We all love you, Beth. See you on the other side. — Duane Dog Chapman (@DogBountyHunter) June 26, 2019 Duane shared with fans on Twitter Wednesday that Beth had died. "It's 5:32 in Hawaii, this is the time she would wake up to go hike Koko Head mountain. Only today, she hiked the stairway to heaven. We all love you, Beth. See you on the other side," he sweetly wrote. Duane vowed on Thursday that he’s “gonna see my honey again. That’s all we can do is hope.” Stay updated on the latest science-backed health, fitness, and nutrition news by signing up for the Prevention.com newsletter here . For added fun, follow us on Instagram . ('You Might Also Like',) The Best Yoga Mats, According to Top Yoga Instructors The Shockingly Simple Diet Change This Woman Made to Drop 54 Pounds Losing Stubborn Belly Fat Really Comes Down to These Two Lifestyle Changes View comments |
Scientists Discovered Spinach Contains A Steroid-Like Chemical That Athletes Should NOT Be Eating
Photo credit: Getty Images From Delish From Lance Armstrong to Marion Jones, time and time again we've seen disappointing cases of athletes using performance-enhancing drugs. In the past, the fact that these drugs were produced in a lab made them a bit easier to control, both in terms of distribution and access. While the number of these cases feels endless, these drugs were not necessarily accessible to the general public. But what would happen if they were? Scratch that. What would happen if they always have been? What I'm getting at here is the idea that performance-enhancing chemicals might exist in our food, (like that stuff we buy at the grocery store). According to scientists at Freie Universität Berlin, that is not only a possibility but a reality, as they have recently discovered that ecdysterone, a steroid-like chemical found in spinach is in fact performance-enhancing. DW has reported that after conducting a 10 week strength training program with forty-six athletes, researchers found that "those taking the supplement saw their physical strength increase three times as much as their placebo-taking counterparts." As a result, researchers concluded that ecdysterone should been classified as a banned substance on the World Anti-Doping Authority (WADA) list. Sounds pretty understandable to me. When talking to CNN , the study's co-author Maria Parr seemed to be more concerned with the fact "that ecdysterone can currently be bought legally as a dietary supplement, because TBH you would have to eat a lot of spinach to get to actually absorb that much ecdysterone. Like 8.8 pounds to be exact. Y'all, that's more than 8 of these suckers: Photo credit: Earthbound Farms As much as I love spinach, truly would never want to eat that much. And despite all of the crazy things that athletes do, something tells me they wouldn't be down either... ('You Might Also Like',) Crave Carbs? We Created This 21-Day Keto Plan Just for You Insanely Easy Weeknight Dinners To Try This Week 29 Insanely Delicious Vodka Cocktails |
Brazilian Exchanges to Integrate the Real-T, a Stablecoin Pegged to the Real
Braziliancryptocurrency exchangesare rolling out support for astablecoin, according to areportby Cointelegraph Brasil on June 26.
Brazilian platforms including PagCripto, Nox Trading, 3xBit, and Bitcambio, are reportedly slated to be the next adopters to issue this new stablecoin — pegged one-to-one with the Brazilian real — Real-T (REALT).
As explained in itswhitepaper, the “Real-TToken” is anEthereum-basedERC-20stablecoin that is “strictly pegged” to BRL. The paper claims that the company behind the token, Real-T Tecnologia S.A., will publicly share its bank statement to provide evidence for full backing of Real-T infiat money.
The paper also notes that most stablecoins are currently pegged to theU.S.dollar— including Tether (USDT),GeminiDollar (GUSD), and USD Coin (USDC) — whereas the Real-T would purportedly be the first stablecoin for the real.
REALT was originallaunchedon the exchange Stratum on May 9, followed by CBX on May 10. According to this announcement, REALT is available for deposit and withdraw, as well as for trade with USDT.
As previouslyreportedby Cointelegraph, the Department of Federal Revenue of Brazil (RFB) has announced new regulatory policies for crypto exchanges, which are to be implemented in September.
Exchanges are now reportedly required to inform the RFB on user transactions in order to guard against tax fraud. The RFB also specified that exchanges based outside of Brazil must disclose transaction data when its monthly value surpasses $7,750.
• Coinbase Pro Announces Support for Chainlink Token
• Steve Forbes Tells Zuckerberg: Use Gold to Back Libra, Call It the ‘Mark’
• Goldman Sachs ‘Looking at Potential’ of Creating Virtual Currency, CEO Reveals
• First Stablecoin Trading Pairs Listed on Binance DEX |
Torex Gold Resources Inc (TSE:TXG): A Fundamentally Attractive Investment
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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Torex Gold Resources Inc (TSE:TXG), it is a company with robust financial health as well as a buoyant growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at thereport on Torex Gold Resources here.
TXG's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that TXG manages its cash and cost levels well, which is an important determinant of the company’s health. TXG seems to have put its debt to good use, generating operating cash levels of 0.69x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Torex Gold Resources, there are three key factors you should further research:
1. Historical Performance: What has TXG's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
2. Valuation: What is TXG 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 TXG is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of TXG? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Alison Brie Doesn’t Have Blonde Hair Anymore
In today's episode of dramatic celebrity hair changes: Alison Brie is no longer a blonde. After spending just a few months with light hair, the actress has gone back to her brunette roots. Brie shared her big hair makeover on Instagram, which includes a new deep bronde hair color, trimmed ends, and fresh blunt bangs. "And just like that...baby was brunette again," she captioned the post. View this post on Instagram And just like that...baby was brunette again. 🖤 A post shared by Alison Brie (@alisonbrie) on Jun 26, 2019 at 4:24pm PDT RELATED: Alison Brie Is Now a Blonde — Yes, Really The actress surprised fans went she went blonde in April. While her light hair caught everyone off guard, the switch up was for a role in husband Dave Franco's directorial debut film The Rental . She captioned the Instagram reveal of her blonde hair with, "When your husband asks you to 'go blonde' for a role... you say yes." VIDEO: Alison Brie Breaks Out a Bedazzled Vera Wang Bra for the 2019 Golden Globes Red Carpet Either filming has wrapped, or Brie has figured out what every brunette knows: Blondes aren't the only ones that have fun. Whatever made her decide to go back to brunette, this warm, sun-kissed brown shade is a great color for the summer. View comments |
Estimating The Intrinsic Value Of Bowl America Incorporated (NYSEMKT:BWL.A)
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Today we will run through one way of estimating the intrinsic value of Bowl America Incorporated (NYSEMKT:BWL.A) by projecting its future cash flows and then discounting them to today's value. I will be using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
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.
View our latest analysis for Bowl America
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. To begin with, we have to get estimates of the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
[{"": "Levered FCF ($, Millions)", "2019": "$3.18", "2020": "$3.19", "2021": "$3.22", "2022": "$3.27", "2023": "$3.34", "2024": "$3.41", "2025": "$3.49", "2026": "$3.57", "2027": "$3.66", "2028": "$3.76"}, {"": "Growth Rate Estimate Source", "2019": "Est @ -0.77%", "2020": "Est @ 0.28%", "2021": "Est @ 1.01%", "2022": "Est @ 1.53%", "2023": "Est @ 1.89%", "2024": "Est @ 2.14%", "2025": "Est @ 2.32%", "2026": "Est @ 2.44%", "2027": "Est @ 2.53%", "2028": "Est @ 2.59%"}, {"": "Present Value ($, Millions) Discounted @ 8.36%", "2019": "$2.94", "2020": "$2.72", "2021": "$2.53", "2022": "$2.37", "2023": "$2.23", "2024": "$2.10", "2025": "$1.99", "2026": "$1.88", "2027": "$1.78", "2028": "$1.68"}]
Present Value of 10-year Cash Flow (PVCF)= $22.23m
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (2.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.4%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$3.8m × (1 + 2.7%) ÷ (8.4% – 2.7%) = US$69m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$69m ÷ ( 1 + 8.4%)10= $30.71m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $52.93m. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $14.13. Compared to the current share price of $14.5, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. 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 Bowl America as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.4%, which is based on a levered beta of 0.945. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Bowl America, I've compiled three further factors you should further examine:
1. Financial Health: Does BWL.A have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of BWL.A? 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 NYSEMKT 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. |
Gold Price Futures (GC) Technical Analysis – Nearest Downside Target is 50% Level at $1383.30
Gold futures are trading lower late Thursday, but buyers have clawed back most of the earlier losses. Today’s low at $1401.40 came dangerously close to last Friday’s close at $1400.10. This means that sellers nearly wiped out all of this week’s earlier gains after the market hit a multi-year high on Tuesday.
At 19:25 GMT,August Comex goldis trading $1411.20, down $4.20 or -0.30%.
Uncertainty is driving prices lower. Uncertainty over whether the Fed will cut rates at its next meeting at the end of July, and uncertainty over whether President Trump and Chinese President Xi Jinping will walk away from their meeting at this week’s G-20 summit with a handshake agreement or maybe more to restart trade negotiations.
The main trend is up according to the daily swing chart. A trade through $1442.90 will signal a resumption of the uptrend. After taking out the August 16, 2016 top at $1442.90, bullish traders are now facing additional resistance at the August 2, 2016 main top at $1447.10 and the July 6, 2016 main top at $1457.90.
The trend will change to down on a trade through $1323.60. This is highly unlikely but there is room for a normal 50% to 61.8% retracement.
The short-term range is $1323.60 to $1442.90. Its retracement zone at $1383.30 to $1369.20 is the first downside target. Since the main trend is up, buyers are likely to come in on a test of this zone.
The main range is $1274.60 to $1442.90. Its retracement zone at $1358.80 to $1338.90 is the primary downside target and the zone that is controlling the near-term direction of the market.
The market is currently trading in between the $1442.90 main top and the short-term 50% level at $1383.30.
If the short-term downside momentum continues then look for the selling to expand into the 50% level at $1383.30. Since the main trend is up, buyers are likely to come in on a test of this level. If it fails then look for the selling to extend into the short-term Fibonacci level at $1369.20.
If buyers regain control then they may make a run at $1442.90. However, this isn’t likely to take place unless yields start to fall again or the U.S. Dollar weakens.
Gold could become rangebound until the July 5 U.S. Non-Farm Payrolls report. Furthermore, July 4 is a U.S. holiday so volume could be extremely thin next week.
Thisarticlewas originally posted on FX Empire
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Apple Music Hits 60 Million Subscribers, Services Chief Eddy Cue Confirms
Apple(NASDAQ: AAPL)doesn't provide updates regarding its Apple Music paid subscriber base on a regular schedule. Instead, the company typically prefers to only disclose when it reaches certain milestones, like when it hit50 million paid subscribersin January. Apple can get away with infrequent disclosures because music-streaming is not its primary business, unlike rivals such asSpotify(NYSE: SPOT), which provide quarterly updates to investors. The Swedish company said in April that it had hit100 million premium subscribers.
Five months after Apple's last disclosure, services chief Eddy Cue has confirmed Apple Music now has 60 million subscribers.
Data sources: Spotify and Apple. Chart by author.
French media outletNumeramareports that Cue made the disclosure during an interview at the Apple Store Champs-Elysees in Paris, with Cue discussing other aspects of Apple Music's future. Apple Music is getting a slew of improvements in iOS 13 and MacOS Catalina, the next versions of Apple's main operating system platforms, including time-synced lyrics and an improved interface. On the Mac, the company is finallyunbundling iTunesinto three separate apps (Apple Music, Podcasts, and Apple TV), which should make it easier to access different types of content while providing a more focused user experience.
Apple Music in MacOS Catalina. Image source: Apple.
Cue said that the next release of Apple Music shows that there is always work to be done to keep improving the service. Apple is taking a hands-on approach to manually inputting lyrics as opposed to automating the process, a possible reference to recent allegations thatAlphabetsubsidiary Google was copying lyrics from third-party site Genius without proper attribution.
Apple is also still betting on exclusivity windows for differentiation, announcing that French rap duo PNL will release four exclusive titles on Apple Music tomorrow, according to the report. The exclusivity window will only last a week, though. Exclusivity windows in the music industry are generally quite small, as artists prefer to make their content available across platforms to boost their exposure and royalty earnings.
Software chief Craig Federighi shows off Apple Music in iOS 13. Image source: Apple.
Regarding iTunes' forthcoming unbundling, Cue told the outlet that having three dedicated apps will make the experience much simpler, even though he is admittedly somewhat biased. Cue played an instrumental role in launching the original iTunes Store and has overseen its development and evolution for nearly two decades. The services chief notes that users don't typically switch between podcasts and music, so having separate apps is a more seamless experience.
Cue also disclosed that Apple Music is the company's largest first-party service, while declining to disclose how many subscribers other services have. Apple has been launching a bevy of new services on its march to hit $50 billion in services revenue by 2020. Earlier this year, the Mac maker also set a goal of hitting500 million paid subscriptionsat some point in 2020, after finishing the first quarter with 390 million paid subscriptions.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.Evan Niu, CFAowns shares of Apple and Spotify Technology. The Motley Fool owns shares of and recommends GOOG, GOOGL, and Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has adisclosure policy. |
What Is an Underwriter and What Do They Do?
Underwriting is a common practice used in commercial, insurance andinvestment banking. Underwriters work for mortgage, loan, insurance or investment companies and do everything from evaluating your health to assessing your financial status. Based on their assessment, underwriters help companies determine if they should take on an applicant’s contract or not based on that applicant’s risk.
If you’re considering anew life insurance policyor you’re interested in purchasing a home, understanding the role of an underwriter is vital. Here’s a breakdown of the role and responsibilities of an underwriter.
What Is an Underwriter?
An underwriter is a member of a financial organization. They work formortgage, insurance, loan or investment companies. They assess, evaluate and assume the risk of another party for a fee. Often, you’ll see this fee in the form of a commission, premium, spread or interest. At any rate, if you’re working with an underwriter, you’re most likely seeking approval for a large purchase or insurance coverage.
Each industry has their own underwriters and these individuals must understand the intricacies of their specific field. They use their knowledge and expertise to best asses the risk of an applicant. Underwriters determine if giving a loan or issuing an insurance policy will work in favor of their company. However, if the contract turns out to be too risky, the underwriter is accountable for the loss.
Most underwriters have a bachelor’s degree and have completed a training program. Typically, they have an academic major within their industry of specialization. Common majors include finance, business and economics.
What Are the Responsibilities of an Underwriter?
Using the knowledge they have in their field, underwriters decides if a contract is worth the risk. For example, underwriters who work withhealth insurancecompanies evaluate the health risk of applicants.
The underwriter will review the applicant’s information including age, current health condition and past medical and family history. Using this information and other factors, an underwriter will enter the data into underwriting software. The software will determine the premium amount and terms they should apply to the policy. Also, this assessment determines if the policy is too risky to move forward.
The information provided to various underwriters is subject to the specific case. For example, an underwriter for a health insurance company will review medical details, while a loan underwriter will assess factors likecredit history.
An underwriter’s job is complex. They have to determine an acceptable level of risk and what’s eligible for approval based on their risk assessment. When assessing complicated situations, underwriters may need to conduct research and acquire a large number of details.
Types of Underwriters
Once you understand the role of an underwriter, it’s important to identify the common financial fields where you’ll interact with them. Here are a few of the main industries where you can expect to work with underwriters.
Insurance
Insurance underwriters asses the risk of insuring a home, car or driver. They also assess individuals who are applying forlife insurance policies. Insurance underwriters determine if the contract is profitable for the insurer. They consider if the applicant meets certain criteria to qualify for an insurance policy. From there, they establish the type of policy for which an applicant is eligible. Finally, they provide an outline of what the policy covers for the applicant’s unique circumstances.
Insurance underwriters areinsurance professionals. They understand insurance risks and how to avoid them. They use their risk assessment to decide if they will insure someone and under what terms they’ll provide a policy.
In cases without special circumstances, underwriting is done through an automated system. Underwriting programming is similar to a quoting system. It’s able to determine if an applicant meets the insurer’s specific requirements for coverage.
Mortgage
Mortgage underwriters are some of the most commonly used underwriters among the loan industry. Even if anew homeownerhas a good income and great credit score, buying a home is still a risky endeavor. A mortgage underwriter must do a thorough risk assessment. Once an assessment is done, the underwriter can confirm if the loan is a manageable undertaking for the applicant.
At any rate, underwriters may review internal information such as the number of mortgages the company has given out. They also review an applicant’s credit score and history, proof of steady income,debt-to-income ratio, overall savings and other important factors that determine their risk.
Additionally, the underwriter will assess features in and outside of the mortgage applicant’s control, such as the value and type of property. This helps determine if the mortgage terms are fair for all parties.
If an underwriter denies the mortgage, the applicant can appeal the decision. However, the process can be lengthy and often requires a large amount of evidence to be overturned.
Loan
Similar to mortgage underwriters, loan underwriters asses the risk involved in lending an applicant a loan such as anauto loan. The objective is to determine if the loan is safe for all parties. Large banks often use a combination of underwriters and underwriting software to determine the risk of lending funds to an applicant. Using the combination of software and an underwriter is a common practice among big and small banks.
In some cases, underwriters may need to assist financial institutions with underwriting forbusiness loans. Depending on the size of the business, an underwriter may need to work with multiple banks.
Securities
A securities underwriter is a different type of underwriter. Securities underwriters often work withinitial public offerings (IPOs). They asses the investment’s risk to determine an appropriate price for an IPO. Typically, a securities underwriter is an employee of the investment bank or an outsourced specialist.
One of the biggest risks involved with securities underwriting is the sales period. For instance, if a security doesn’t sell for the suggested price, the investment bank is liable for the difference.
The Bottom Line
Underwriters play a crucial role in many financial situations. The process of underwriting also has several complexities. Therefore, the more questions you ask, the better you’ll understand the process and requirements for coverage and approval before finding the best insurance policy or loan available.
Tips on Applying for a Loan or Insurance
• Consider working with a financial advisor to better understand your specific financial situation before taking on a loan or insurance policy. Finding the right financial advisor thatfits your needsdoesn’t have to be hard.SmartAsset’s free toolmatches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals,get started now.
• Learnhow much house you can affordbefore securing the right mortgage. Consider all of the various mortgage providers, too. With the right budget in mind, you’ll be able to take on a mortgage with a monthly payment that fits your needs.
• Compare insurance policies from various providers before making a final decision. Whether it’s health insurance,life insurance, car insurance or another type, there are a variety of policies available. Take the time to find the one that’s right for you and your financial situation.
Photo credit: ©iStock.com/filadendron, ©iStock.com/skynesher, ©iStock.com/monkeybusinessimages
The postWhat Is an Underwriter and What Do They Do?appeared first onSmartAsset Blog.
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JPMorgan's Dimon backs Trump on health care transparency
JPMorgan Chase (JPM) CEO Jamie Dimon thinks people deserve to know how much they are paying out of pocket for their health.
On that score, he says theTrumpadministration’s executive order for transparency in healthcare is “great.”
On June 24, President Donald Trump signed an executive order that would legally require health care providers and insurers to inform consumers how much they are paying for potential services and products prior to committing to them.
The goal is to deflate thehealth caremarket, enabling people to shop in a way that could drive down costs. Dimon, along with billionaire investor Warren Buffett and Amazon CEO Jeff Bezos, haveattacked the issue head-on with their health care initiative, called Haven.
Trump’s initiative “is great,” Dimon told Yahoo Finance in an interview.
“If you had MRIs or a blood test, you know, in a two-block radius in the average town, the difference in cost could be five times,” he added.
“We should have had national exchanges, forcedtransparency, and a bunch of stuff. If we'd had that in Obamacare, it would be a much better chance to succeed. And we didn't,” the CEO said.
Donovan Russo is a writer for Yahoo Finance. Follow him@Donovanxrusso.
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Will Tyme Technologies, Inc.'s (NASDAQ:TYME) Earnings Grow Over The Next Few Years?
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In June 2019, Tyme Technologies, Inc. (NASDAQ:TYME) released its most recent earnings announcement, which revealed company earnings became less negative compared to the previous year's level - great news for investors Investors may find it useful to understand how market analysts predict Tyme Technologies's earnings growth trajectory over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
See our latest analysis for Tyme Technologies
Analysts' outlook for next year seems buoyant, with earnings becoming less negative, generating -US$29.0m in 2020.
Even though it is informative understanding the rate of growth each year relative to today’s value, it may be more insightful to estimate the rate at which the business is growing on average every year. The pro of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Tyme Technologies's earnings trajectory over time, fluctuate up and down. To calculate this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 25%. This means, we can anticipate Tyme Technologies will grow its earnings by 25% every year for the next couple of years.
For Tyme Technologies, there are three fundamental aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for TYME's future outlook? Check out ourmanagement and board analysiswith insights on CEO compensation and governance factors.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TYME? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Brazil's Guedes says cenbank may free up $26 bln in banks' reserves
SAO PAULO, June 27 (Reuters) - Brazilian Economy Minister Paulo Guedes said on Thursday that the country's central bank may free up roughly 100 billion reais ($26.09 billion) in reserve requirements in the national banking system.
Cutting banks' reserve requirement would spur lending to the private sector, Guedes said, without saying when this might happen.
On Wednesday, the central bank eased reserve requirements and freed up $4.2 billion in banks' reserve requirements on time deposits. But on Thursday, central bank president Roberto Campos Neto said that while reducing reserve requirements remained a broad aim for the bank, it is no substitute for monetary policy aimed at stimulating economic activity.
Guedes has been working to reduce the high concentration of state-controlled lenders, which account for almost half of outstanding loans in Brazil.
($1 = 3.8325 reais) (Reporting by Carolina Mandl Editing by James Dalgleish) |
Are Peabody Energy Corporation's (NYSE:BTU) Interest Costs Too High?
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Peabody Energy Corporation (NYSE:BTU) is a small-cap stock with a market capitalization of US$2.6b. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Evaluating financial health as part of your investment thesis is essential, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. We'll look at some basic checks that can form a snapshot the company’s financial strength. However, potential investors would need to take a closer look, and I recommend youdig deeper yourself into BTU here.
BTU's debt level has been constant at around US$1.5b over the previous year including long-term debt. At this stable level of debt, BTU's cash and short-term investments stands at US$798m , ready to be used for running the business. On top of this, BTU has produced cash from operations of US$1.1b over the same time period, leading to an operating cash to total debt ratio of 76%, meaning that BTU’s current level of operating cash is high enough to cover debt.
Looking at BTU’s US$1.0b in current liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.77x. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Oil and Gas companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With debt reaching 42% of equity, BTU may be thought of as relatively highly levered. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. We can check to see whether BTU 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 BTU's, case, the ratio of 4.43x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving BTU ample headroom to grow its debt facilities.
Although BTU’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. This is only a rough assessment of financial health, and I'm sure BTU has company-specific issues impacting its capital structure decisions. I suggest you continue to research Peabody Energy to get a more holistic view of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for BTU’s future growth? Take a look at ourfree research report of analyst consensusfor BTU’s outlook.
2. Valuation: What is BTU 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 BTU 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. |
Supreme Court majority strikes down efforts to stop gerrymandering
The US Supreme Court ruled Thursday against efforts to stop partisan gerrymandering, the practice of mapping legislative districts so that elections veer towards certain political victories. In a 5-4 decision in which conservative justices held the majority, it was ruled that partisan gerrymandering was “beyond the reach of the federal courts,” according to the decision written by Chief Justice John Roberts Jr . “Federal judges have no license to reallocate political power between the two major political parties,” he wrote, “with no plausible grant of authority in the constitution, and no legal standards to limit and direct their decisions.” In an impassioned dissent read from the bench, Justice Elena Kagan , a progressive, called out the majority’s “complacency” on the issue, which continues to have profound effects on US elections. “For the first time in this Nation’s history, the majority declares that it can do nothing about an acknowledged constitutional violation because it has searched high and low and cannot find a workable legal standard to apply,” Justice Kagan said . “In throwing up its hands, the majority misses something under its nose: What it says can’t be done has been done,” she continued. “Of all times to abandon the court’s duty to declare the law, this was not the one. The practices challenged in these cases imperil our system of government. Part of the court’s role in that system is to defend its foundations. None is more important than free and fair elections. With respect but deep sadness, I dissent.” Gerrymandering essentially takes a population and divides it in a way that allows the party controlling the boundary-drawing to easily win upcoming elections. The state legislature is given the power to draw these maps; therefore, districts can be redrawn to better serve the party with that majority. The two most common practices to get a desired gerrymandered result are known as packing and cracking. In packing, the party in power draws a single district around as many of the opposing party’s voters as possible, allowing for surrounding areas with less of those voters to get an equal, if less full, representation as the crowded opposition’s. This is common in states with a single urban area , such as Georgia, with Atlanta, which tends to vote blue against the red state. Story continues In cracking, the controlling party splits up oppositional voters among several districts, in order to outnumber those voters in each district, again leading to a diluted vote from the opposing party. The court’s decision responded to two lawsuits challenging gerrymandered maps in Maryland, controlled by Democrats, and North Carolina, controlled by Republicans. In an email, Chris deLaubenfels of Let America Vote , the nonpartisan organisation that seeks to create more fair conditions for US voters, called the decision a “major blow to democracy in America.” “The Supreme Court punted on protecting voters from extreme partisan gerrymandering, which strips Americans of their fundamental constitutional right: to use the ballot to choose their political representatives,” Mr deLaurebenfels wrote. “Instead, with partisan gerrymandering, politicians draw maps to choose voters they think will vote for them. That is antithetical to our democracy.” “Although the Supreme Court's decision threatens fair and free elections in the United States,” he continued, “it also makes clear that protecting our democracy now rests in the hands of the American people. Let America Vote will continue to fight against voter suppression in all its from, and right now partisan gerrymandering is one of the biggest threats to the right to vote." |
Migrants face violence as US makes them wait in Mexico
CIUDAD JUAREZ, Mexico (AP) — Roberto Escalona Moreno says he witnessed a double murder on the street last week near the hostel where is staying. The Cuban immigrant has been assaulted, and his friends have been shaken down by police, he says. Moreno, 22, is among more than 30,000 migrants who are pressing for asylum in the U.S. but are stuck in Mexico's drug- and gang-infested border cities under Trump administration policies intended to stem the flow. They say the months of waiting are increasingly putting them in harm's way. "It's not safe here," Moreno said, less than an hour after witnessing the deadly shooting in Juarez, just across the border from El Paso, Texas. Cartel violence in Juarez is down from its height five years ago, but it is still one of the most dangerous cities in the world, with gangs vying for control of drug trafficking routes. Juarez, with a population of 1.4 million, recorded 1,259 homicides in 2018, or more than four times the death toll in New York City, which has six times as many people. Other border cities, such as Tijuana, are murderous places as well. Last week, a man was gunned down in Juarez at his child's preschool graduation, and an unrelated 4-year-old girl died in the attack, according to local reports. Federal police recently freed three kidnapping victims, including a Honduran migrant, from a home filled with alleged gang members. People hoping to enter the U.S. are forced to wait south of the border because of twin U.S. policies — one sharply limiting the number of asylum applications per day that border stations accept, the other requiring many of those who have applied to bide their time in Mexico while their cases make their way through the legal system. The U.S. government is expanding the remain-in-Mexico policy to Nuevo Laredo this week, raising new concerns about bloodshed. Nuevo Laredo is in the Mexican state of Tamaulipas, a place so violent that the U.S. State Department bars most travel there by government employees under a level-four warning — the highest degree of concern. Story continues "Violent crime, such as murder, armed robbery, carjacking, kidnapping, extortion, and sexual assault, is common," the warning reads. "Gang activity, including gun battles and blockades, is widespread. Armed criminal groups target public and private passenger buses as well as private automobiles traveling through Tamaulipas, often taking passengers hostage and demanding ransom payments." Migrants who are fleeing violence in their home countries are dismayed that they are being forced to wait in Mexican border cities with similar dangers. The remain-in-Mexico policy is drawing opposition from American asylum officers, who filed a court brief this week arguing that Mexico isn't safe for asylum seekers. "Despite professing a commitment to protecting the rights of persons seeking asylum, the Mexican government has proven unable to provide this protection," they said. The debate over immigration in the U.S. flared over the past few days with the publication of a chilling photo of a drowned father and daughter in the Rio Grande; an outcry over reports of hungry and unwashed migrant children in a Texas detention center; more turnover inside the Homeland Security Department; and debate on Capitol Hill over $4.6 billion in border aid. Moreno waited in Juarez for two months just for the opportunity to present himself to U.S. officials in El Paso and apply for asylum. Now he is back in Juarez, where many Cubans stay in a cluster of hostels on the northeastern edge, one of the most violent neighborhoods in the city. He said he was having breakfast outside with some other Cuban migrants when they saw two men run past on the other side of the street. Moreno got up and heard gunshots. When he got to the corner, he saw a body on the concrete. Moreno also said was accosted on the street by people he believed wanted to rob him. And one of his friends said Mexican police spotted him on the street, detained him and took 500 pesos from him. El Paso-based immigration lawyer Linda Rivas said a client of hers was kidnapped and raped in Juarez after asking U.S. officials not to send her there. The burgeoning population of migrants along the border is also competing for beds in shelters and under-the-table jobs. Mexican officials do not issue work permits to waiting migrants. Formerly a food-stall worker in Cuba, Moreno has found employment cleaning houses, making 200 pesos, or about $10, per day. Edgar Canales, 46, worked construction in Havana and has been able to find work earning 1,200 pesos ($63) per week by building and maintaining gutters. He waited two months in Mexico to get to the front of the asylum line, then returned to Mexico with a court date in five months. "I went nuts," he said. "Even with the violence that's here, we have to wait like seven months. It's crazy." |
Michelle Obama Once Broke a Royal Rule in Front of Queen Elizabeth
Click here to read the full article. Following protocol can be difficult, but when the Queen allows you to break a rule, it’s basically an honor. Michelle Obama broke a royal rule with Queen Elizabeth II’s permission . It’s no secret the royal family has a slew of customs, traditions and protocols they have to follow. But during one visit, the former First Lady was given permission — even told by the Queen herself — to go ahead and break the rules. It’s no surprise the Obamas and the royal family got along swimmingly during Obama’s presidency. The former POTUS and FLOTUS paid state visits and even had the opportunity to meet Prince George. Naturally, the former first couple studied the various practices and formalities that needed to be followed upon their visit. But one time, when the First Lady was a bit confused, the Queen stepped in to offer her a bit of rebellious guidance. Related stories The Queen Apparently Prefers Meghan Markle Over Kate Middleton for This Reason Kate Middleton Broke Another of the Queen's Royal Rules with Her Outfit We Finally Know Queen Elizabeth's Favorite Grandchild & It's Not William or Harry In her book Becoming , the former First Lady recalled one particular visit with the Queen. “After we’d touched down in a field on the palace grounds and said our hellos, however, the Queen abruptly threw a wrench into everything by gesturing for me to join her in the backseat of the Range Rover.” She continued, “I froze, trying to remember if anyone had prepped me for this scenario, whether it was more polite to go along with it or to insist that Barack take his proper seat by her side.” As the UK’s longest-reigning monarch, Queen Elizabeth could, of course, take a hint and tell that Mrs. Obama was rather confused. “’Did they give you some rule about this?’” Queen Elizabeth said with a quick wave of her hand. “’That’s rubbish. Sit wherever you want,’” she told the former First Lady. Believe or not, this wasn’t the only practice Queen Elizabeth II told the former First Lady to break. During a meeting back in 2009, Queen Elizabeth II and Michelle Obama hugged, yet another break in protocol. “We were just two tired ladies oppressed by our shoes,” Mrs. Obama wrote in her autobiography. Two powerful women hugging it out — why wouldn’t you break the rules for that! Sign up for SheKnows' Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Why Under Armour, Inc.'s (NYSE:UAA) CEO Pay Matters To You
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Kevin Plank has been the CEO of Under Armour, Inc. (NYSE:UAA) since 1996. This analysis aims first to contrast CEO compensation with other large 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Under Armour
According to our data, Under Armour, Inc. has a market capitalization of US$11b, and pays its CEO total annual compensation worth US$6.6m. (This figure is for the year to December 2018). Notably, that's an increase of 63% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$26k. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Under Armour, below.
Under Armour, Inc. has reduced its earnings per share by an average of 90% a year, over the last three years (measured with a line of best fit). Its revenue is up 3.1% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Since shareholders would have lost about 37% over three years, some Under Armour, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
It looks like Under Armour, Inc. pays its CEO less than the average at large companies.
Kevin Plank is paid less than CEOs of most large companies, but the company isn't growing and total shareholder returns have been disappointing. This contrasts with the increase in CEO remuneration on last year, though it was off a low base. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Under Armour (free visualization of insider trades).
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. |
Up, down, back again: Funds deliver returns, vertigo
NEW YORK (AP) If you're brave or lazy enough to be a totally hands-off investor, congratulations, you've got a nice surprise coming. When you open your second-quarter account statements, you'll likely notice a bump higher from three months earlier. Most types of investments did well from April through June, with U.S. stocks setting record highs, bond funds packing a year's worth of returns into three months and gold hitting its highest price in six years. But chronic checker-uppers, those who looked at their funds every few days or weeks, know how bumpy the ride was getting there. Investors had to stomach losses of more than 6% for their S&P 500 index funds in May, in between the records set in April and again in June. Anyone holding funds with stocks from developing economies absorbed even bigger losses, as worries rose about worsening trade relations between the United States and countries around the world. It was the Federal Reserve that ended up making the second quarter a success story for most investors. The central bank hinted that it may cut interest rates this year to help the economy, an about-face from its direction just a few months ago. After raising rates in December for the seventh time in two years, the Fed intimated early this year that it would hold steady on rates. Now, some investors expect it to cut rates up to three times this year. Here's a look at some of the trends that made the quarter: Bonds delivered strong, steady returns while other markets shook. Bonds are supposed to be the ballast for any portfolio, and they more than lived up to that reputation during the second quarter. While stock markets around the world careened up and down, bonds funds not only pumped out regular interest payments but also rose in price. The largest bond fund by assets returned 2.8% for the quarter, as of Tuesday, more than it returned in four of the last six full years. Prices for bonds rise when yields fall, and the 10-year Treasury's yield dropped below 2% during the quarter for the first time since 2016. Just don't expect returns to stay this big for bond funds in the future. Story continues "There's less cushion," said Gene Tannuzzo, deputy global head of fixed income at Columbia Threadneedle Investments. With the 10-year yield moving in a range of 2.00% to 2.04% earlier this week, down from 2.50% early in the quarter, there's simply less room for yields to fall to push up prices for bonds. Lower yields also mean investors buying bonds today pocket less in income. Unless there's a recession, which would likely cause a steep drop in rates, bond funds will likely return no more than they're yielding. Many voices along Wall Street expect rates to stay close to where they are. Deutsche Bank's DWS recently cut its forecast for where U.S. Treasury yields will be a year from now by 0.30 percentage points, down to 2.00% for the 10-year Treasury, for example. At Wells Fargo Asset Management, the forecast is for 2.00% to 2.50% on the 10-year Treasury at the end of the year. "Bonds are unlikely to repeat the performance we've seen in the last six months," said Tannuzzo. "But given the Fed, they can still be that consistent ballast." "Buy and hold" was a winning strategy again for stock investors. For years, those with strong stomachs have consistently been rewarded for seeing any dip in the stock market as a buying opportunity. In May, investors began to doubt that. As stocks sank after President Donald Trump threatened to raise tariffs first on China and then on Mexico, investors pulled a net $15.6 billion out of U.S. stock funds, according to Morningstar. Even index funds, which have been hoovering up cash in recent years, saw outflows as investors scrambled to get out of the way of tumbling markets. But those who stuck with stocks were quickly rewarded in early June when Fed Chairman Jerome Powell gave the first hints that the central bank could cut rates. The Fed held rates steady at its meeting in the middle of June, but investors are nearly certain that it will cut rates at its meeting at the end of July. The S&P 500 returned to a record on June 20, and the largest U.S. stock fund returned 2.9% for the quarter, as of Tuesday. The European Central Bank has also indicated its willingness to help the economy, and foreign stock funds recouped much of their losses from earlier in the quarter. The average emerging-market stock fund returned 0.3% in the quarter, as of Tuesday, after being down as much as 5.5% earlier in the quarter. Gold glittered again. After years of oscillating between roughly $1,000 per ounce and $1,400 per ounce, gold broke above the range during the quarter for the first time since 2013. Again, look toward the Fed. Rate cuts tend to help the price of gold by holding down the value of the dollar against other currencies and opening the possibility of higher inflation. |
Dad plays saxophone for an audience of cows after learning to play on YouTube
Nothing mooves people or cows more than the sound of a saxophone solo. Twitter user @erinmherrmann 's father took his saxophone to a field near his house on Tuesday to try out some tunes he'd been practicing. While some musicians prefer a human audience, this particular dad was able to attract an attentive audience of cows. Watch this cow crowd move in to hear the music. my parents are such goofs they drove out to the backroads so my dad could play the cows the songs he’s been learning on the saxophone pt.1 pic.twitter.com/IHzgxtvo0N — Erin Herrmann (@erinmherrmann) June 26, 2019 Frankly, the best part of this concert is the neighbor who shouts "tequila" at the end. pt.2 listen for the neighbor at the end pic.twitter.com/qdMCnZRzqh — Erin Herrmann (@erinmherrmann) June 26, 2019 SEE ALSO: In a lost city buried by jungle, scientists found these creatures thriving According to Erin, her father taught himself how to play the saxophone by watching YouTube videos. He just wanted to play his newly learned tunes for a different kind of crowd. "Our dog, Piper, hates the noise so much, she even chewed up all his reeds once," Erin told Mashable over DM. "My dad was running by the field on June 25 and thought that maybe the cows would appreciate his music more than Piper would. He was definitely right! We always talk to and go see the cows near the house because they are his favorite animal and they make his so happy ... He’s just such a good hearted guy and likes to be goofy and enjoy the simple things in life! He loves that he’s making people so happy!" Story continues A 2001 study from the University of Leicester in England found that cows increased their milk production when they listened to slow jams like Simon & Garfunkel's "Bridge over Troubled Water." Holy cow. That's nature at work. WATCH: This 10-year old has a feel good Twitter account all about petting dogs Uploads%252fvideo uploaders%252fdistribution thumb%252fimage%252f91459%252f1425039c e882 47c7 b21c 7f04bf435600.png%252foriginal.png?signature=9co9zrdisqr dyft5b2 xpflz 4=&source=https%3a%2f%2fblueprint api production.s3.amazonaws |
How to Protect Your Home From Deed Theft
[Question]I keep seeing ads for services claiming to protect people from home title fraud or deed theft. Is this even a prevalent problem? Is there an easy way for me to confirm that my title is clean rather than paying for a service? [Answer]In 2008, the FBI identified "house stealing" as the "latest scam on the block." Since then, it has popped up periodically in cities such as Chicago, Dallas, Detroit, Los Angeles, New York City and Philadelphia. Is it a growing problem? That's hard to know because the FBI doesn't break it out separately in its crime statistics. The American Land Title Association doesn't have data on the problem, either. "I suspect that companies that offer title-monitoring service use that [the claim] as a marketing strategy," says Jeremy Yohe, vice president of communications at the association. SEE ALSO: 12 Tax Breaks for Homeowners The scheme works like this: Fraudsters pick out a house--often a second home, rental, vacation home or vacant house--to "steal." Using personal information gleaned from the internet or elsewhere, they assume your identity or claim to represent you. Armed with forged signatures and fake IDs, they file paperwork with the county's register of deeds to transfer ownership of your property to themselves or a third party. They then sell the home or borrow against it, stealing your equity. When they fail to make payments on a loan secured by your property, you could end up in foreclosure or be unable to sell, refinance or pass the home on to heirs. Home Title Lock is one of the services that says it will monitor your home's deed 24/7 to prevent title fraud; it costs $15 a month ($150 annually, two years for $298). But you can protect yourself--for free--by periodically checking your property record on the website of your county's register of deeds. Look for deeds that you or your attorney didn't prepare or sign, or loans you didn't take out, as well as liens of contractors, subcontractors, real estate brokers or attorneys whose services you didn't hire, or court filings, says the Cook County (Chicago) recorder of deeds. Story continues Even better, many counties now provide a consumer notification service. Register for free, and you'll quickly receive an e-mail or text any time a document is recorded on your property. The New York City department of finance advises homeowners to make sure the appropriate authorities have the correct mailing address for you or the person who should receive notices about your property. In your absence from your home, have mail forwarded or ask someone you trust to pick up mail or visit your home. Visit a vacant house periodically to ensure that no one has taken up residence illegally. You may get clues when title fraud occurs: You stop receiving your water bill or property tax assessment or bill, for example. Utility bills on a vacant property rise suddenly, or you find people living there. You stop receiving your tenants' rent payments and learn that they've been making the payments to another person and location. You receive payment books or other information from a lender with whom you haven't done business. Or you find yourself in default on a loan or notified of foreclosure proceedings. SEE ALSO: How to Spot a Scam If you experience or find something amiss, notify the register of deeds and local law enforcement. In New York City, for example, homeowners who think they are victims of deed fraud are urged to act quickly to report fraud to the city's sheriff, get a certified copy of the fraudulent document from the city register's office, report the crime to the district attorney's office in the borough where the property is located, and consult an attorney to help confirm ownership of the property. (Legal action known as "quieting the title" may be required to resolve any questions about your ownership of the property.) EDITOR'S PICKS How to Spot a Scam 2020 Election: Tax Plans for all 24 Democratic Presidential Candidates Tax Breaks for Homeowners Copyright 2019 The Kiplinger Washington Editors |
Trump Blew Up The Iran Nuclear Deal. Now He Wants Allies To Help Him Get An Iran Nuclear Deal.
WASHINGTON Having estranged allies with threats and false accusations, President Donald Trump now faces dealing with the latest crisis he has generated, Iran , without any allies at all. Trump prepares to meet Thursday and Friday with leaders of the worlds largest industrial economies at the G-20 summit in Japan with the idea, according to the White House, of gaining their cooperation in lowering tensions with Iran. This is a chance for the president to engage with a number of different international leaders, among our closest partners and allies, to obtain their support and to have discussions about how we can encourage Iran to enter into negotiations, a senior administration official said this week on condition of anonymity. Foreign policy experts outside the administration wonder exactly how that might work, given Trumps record of lashing out at them with falsehoods and reneging on agreements made under previous administrations including the original Iran nuclear deal itself. Hes taken his usual tactic, which is aggravate everyone in advance, up the ante, be obnoxious, with the hope of then acting like the non-abusive parent in the face-to-face meeting, said Wendy Sherman, the former State Department official who led the U.S. negotiating team for the Iran agreement that Trump scrapped. What that gets him is not really clear at this point. Just hours before leaving on the trip Wednesday, for example, Trump angrily attacked a number of those allies in an interview with Fox Business. European nations were set up in order to take advantage of the United States, he claimed. Trump also turned his attacks against Vietnam for its tariffs Vietnam takes advantage of us even worse than China and Japan, also for purportedly taking advantage of the United States through its defense treaty: If Japan is attacked, we will fight World War III. We will go in and we will protect them and we will fight with our lives and with our treasure. We will fight at all costs, right? But if were attacked, Japan doesnt have to help us at all. They can watch it on a Sony television. U.S. President Donald Trump waves as he arrives for the G-20 Osaka summit. (Photo: Tomohiro Ohsumi via Getty Images) None of Trumps accusations appears grounded in facts or history. Most European nations have been around for centuries longer than the United States. Vietnam is a signatory to the Trans Pacific Partnership trade agreement, which would have reduced its tariffs on U.S. imports to zero on most products had Trump not withdrawn from it. And Japans military is structured the way it is because of U.S. insistence after World War II. It makes things very difficult, said one Western European diplomat on condition of anonymity about Trumps continual lies. We all know that it is not true. Story continues The White House did not respond to queries about the foreign relations consequences of Trumps near-daily falsehoods. Trump himself, in a recent interview, claimed, falsely, that he was truthful. I like the truth. Im actually a very honest guy, he told ABC News in a recent interview. And while the segment of the U.S. population that still strongly supports Trump may not care about this behavior, the rest of the world does, critics from both Democratic and Republican administrations said. President Trump is viewed as an unsteady and unreliable leader by our closest democratic friends, said Nicolas Burns, a top State Department official under presidents Bill Clinton and George W. Bush. The West badly needs a leader to stand up to the two authoritarian powers, Russia and China. But unlike JFK, Reagan and all our postwar presidents, Trump is not leading with sophistication and strength. Another Crisis Of His Own Making While Trumps handling of trade relationships, particularly his ongoing trade war with China, have created problems for the United States, none presents a crisis as pressing as the near skirmishes with Iran. Trump initiated the conflict last year, when he withdrew from the 2015 agreement with Iran, Russia, China and the European Union that lifted some economic sanctions on Iran in return for its promise not to pursue nuclear weapons for at least 15 years. The agreement included a regime of inspections to ensure that Iran was complying. But Trump, as he has done for most things accomplished by or under former President Barack Obama, attacked it during his campaign and has continued disparaging it as president as the disastrous Iran nuclear deal, a phrase he used again at a speech to evangelical Christian supporters Wednesday. The other signatories to the pact all urged Trump not to abandon it, but Trump ignored them. In recent weeks, Iran has started responding to increased U.S. sanctions more militantly. It is generally believed to have sponsored attacks on oil tankers in the Persian Gulf and last week shot down a U.S. Navy drone over the critical Strait of Hormuz entrance to the gulf. Iran claimed the unmanned craft was in its airspace, while the United States said it was over international waters. Trump approved a plan for the U.S. military to hit Iranian radar installations and other targets, but then canceled them. He claimed he did so because he learned at the last minute that the strikes would kill as many as 150 Iranians even though under standard National Security Council procedure, he would have learned that estimate very early in the planning . Through much of the latest flare-up, Trump has been insisting that all he really wants is for Iran to give up its nuclear weapons program. Were not going to have Iran have a nuclear weapon ... when they agree to that, theyre going to have a wealthy country, Trump told reporters Saturday at the White House. But that claim raises the question of why he abandoned the existing agreement in the first place, when Iran promised to do precisely that for at least 15 years. He cant show a foreign policy accomplishment, Sherman said. His approach to national security and foreign policy hasnt worked. Trump has tried a fire and fury approach to North Korea, Venezuela and now Iran, without anything to show for it ... On Iran hes been all over the place but has headed us to a disastrous war. Adding to the difficulties, she said, is Trumps tendency to swing from position to position, often undercutting his own administrations work. Trump went from threatening fire and fury on North Korea to praising its dictator within weeks. He threatened to shut the border with Mexico, then reversed. He threatened tariffs on Mexico, then reversed on that, too. Everybody knows that the rug can be pulled out from under them. That the president can switch gears, Sherman said. With this president, its a regular course of business. An Easy Fix: Just Rename It The Trump Iran Deal But just as Trumps lack of interest in details and need to denigrate Obama has created this crisis, so might his simultaneous penchant for boasting of his supposed accomplishments offer a path to a solution, some of his critics believe. Trump campaigned on the claim that the North American Free Trade Agreement was unfair to the United States and promised to withdraw from it notwithstanding legal questions regarding his ability to do so unilaterally. Yet following some minor modifications and the addition of provisions that had been in TPP, which was also disparaged by Trump, he now calls the modified agreement a great success. With the trade agreement with South Korea, Trump similarly calls the minor changes his administration negotiated a major accomplishment, and now praises the trade deal he once criticized as unfair to the United States. The re-branding of those trade agreements offers the perfect model for getting out of the Iran crisis, said former U.S. diplomat Brett Bruen, who served as director of global engagement in the Obama White House. You tweak a couple of points in the deal, and even pay lip service to some of the things Trumps complaining about like ballistic missiles, and everyone can re-sign the deal and move forward, he said. Fundamentally its about giving something to Trump to campaign on. If thats the cost of peace, maybe its something they should be willing to consider. Such a plan would likely win the support of other nations, the Western European diplomat said, because they do not want to see Iran back out of the agreement and start stockpiling uranium. We were very upset when the Americans pulled out of the agreement. Now the Iranians are talking about it, too, the official said. Of course, if a similar agreement can be reached and Iran can be brought on board, we would not object to it. Love HuffPost? Become a founding member of HuffPost Plus today. This article originally appeared on HuffPost . View comments |
An Interesting Year for Smart Beta ETFs
Smart beta ETF strategiesthat track alternative or customized indices have been gaining traction, reflecting the various dynamics of different markets in varying conditions.
“I think it’s been an interesting year for smart beta,” Dave Nadig, Managing Director ofETF.com, said at the Morningstar Investment Conference.
“To me, what the big interest story was seeing what happened with the min-vol funds and the momentum funds… the charts started looking like they were printed right over each other, and I think that’s an important lesson for investors looking at smart beta: sometimes it’s not what you think,” he added.
For example, the iShares Edge MSCI Minimum Volatility USA ETF (USMVA) and iShares MSCI USA Momentum Factor ETF (MTUMA-), which tend to stand on opposite ends of the investment style spectrum, have both increased a little over 18% year-to-date, moving in relative lockstep.
USMV tries to reflect the performance of the MSCI USA Minimum Volatility (USD) Index, which measures the performance of large and mid-capitalization equity securities listed on stock exchanges in the U.S. that, in the aggregate, have lower volatility relative to the broader U.S. equity market. The defensive low-volatility strategy has gained attention in the current market mired with trade and liquidity concerns, easing profit growth and economic woes, with volatility recently spiking in response to another round of trade fears.
Meanwhile, MTUM tries to reflect the performance of the MSCI USA Momentum Index, which includes U.S. large- and mid-capitalization stocks exhibiting relatively higher momentum characteristics. Momentum investing can target those companies that are exhibiting high levels of growth. The momentum factor selects company stocks that have recently outperformed based on the idea that “the trend is your friend” and that stock market leaders typically continue to outperform. This type of strategy can be an effective way for targeting growth-oriented companies since stocks with positive momentum often continue to generate strong earnings.
For more ETF-related commentary from Tom Lydon and other industry experts, visit ourvideo categoryon ETF Trends.
Click here to read the original article on ETFdb.com. |
How Cryptocurrency Projects Are Tackling Transparency and Security Problems
I invested in BTC in 2010 (and sold shortly after, but have bought and sold all along since then), and have experienced a wild crypto ride. I've also advised and been working on a project that has developed the first application to bridge cryptocurrency with augmented reality. I've seen the crypto market on both sides and witnessed the persistent problems of cryptocurrency exchanges, from hacks to insolvency. Institutions and mainstream investors are rightfully hesitant to engage with many exchanges, drawing from mainstream headlines such as the recent Binance hack to the tune of $40 million, as reported by CNBC. The security woes of centralized exchanges are not the only prominent issue that makes investors and regulators uneasy. Bitfinex’s recent misleading of investors about $850 million locked up , as reported by Coin Desk, with a shady capital firm and the bizarre and ongoing debacle of QuadrigaCX are only a recent spate in a long history of cryptocurrency exchanges mired in dilemmas. Fortunately, the problems of exchanges are well-known, and many projects, even some exchanges themselves, are working toward providing better trust, transparency and security. Improving transparency One of the core problems with cryptocurrency exchanges, aptly demonstrated by both QuadrigaCX and Bitfinex, is transparency. QuadrigaCX was not solvent, and the exchange's owner was actively siphoning his own funds into customer withdrawals to appear solvent to the customers before his untimely death. Bitfinex, who dipped into its closely-related firm Tether’s reserves to cover an inaccessible $850 million of its funds, failed to disclose this information to customers -- and subsequently led to the New York Attorney General filing an injunction against it. Add in the notion that the vast majority of cryptocurrency exchange actively engage in wash trading and report fake volumes, and transparency clearly is a cardinal issue in the exchange ecosystem. Story continues Transparency primarily involves two areas: proof of solvency and proof of legitimate trading volumes. Proof of solvency is critical because investors need to know the risk of engaging with a financial entity that holds their funds. However, the issue that exchanges take with this is that they do not want to publicly disclose the financial details of their internal operations. While various degrees of "proof of solvency" has been speculated as a potential scaling advantage for Bitcoin as well, some intriguing technical advances have produced promising glimpses of provable exchange reserves that remain private. For example, Blockstream -- a leading Bitcoin development company -- announced its standardized tool for ensuring exchange solvency called " proof of reserves " earlier this year. Essentially, an exchange can prove their reserves of BTC without publicly moving or spending the reserves through generating an extra valid input with a transaction of their total reserves. All of the UTXOs would consequently become verifiable under the exchange's ownership without them risking moving the funds since the network would reject the transaction. However, Blockstream’s proof of reserves still does not preserve privacy entirely, and their team is working on solutions to mask the value of the exchange UTXOs, which would be publicly available. Other solutions, such as Arpa , take privacy as the foremost consideration. Arpa relies on a fascinating subfield of cryptography called secure multi-party computation , which applied to exchanges, would enable them to jointly compute the average solvency of their exchanges without actually exposing the full solvency data to competitors. “ARPA’s cutting-edge cryptographic multiparty computation (MPC) disrupts the traditional way of using data, enables privacy-preserving computation or joint analysis of secret data, and replaces trusted data aggregator that captures the most out of the current data value chain, ” as explained by Arpa founder Felix Xu on its site. “Dapps built on ARPA layer 2 solutions across industries like finance, insurance, healthcare and even personal data wallet for secure data exchange and monetization.” Some exchanges, including Poloniex (owned by Circle), have even begun publishing quarterly reports to provide better assurances of solvency to investors. Gemini, who also produces the Gemini Dollars stablecoin, has continually emphasized their close relationship with the New York State Department of Financial Services (NYSDFS) to assure investors of both their solvency and legitimacy. And the exchange provides the issuer, banking and security audit information for the Gemini Dollar stablecoin. Considering the lack of regulatory control over many exchanges located in obscure jurisdictions and their unwillingness to provide better transparency due to the " dark underbelly " money machine, tools such as BTI and Messari 10 can provide better information to investors. Unfortunately, they still will not solve the fake volumes predicament among exchanges. Removing centralized custody Many initiatives in the cryptocurrency sector strive to remove centralized exchanges entirely, or at the very least, their custody. Exchange custody over user funds is an established security threat, and a new generation of trust-minimizing technology and P2P exchanges are working on circumventing centralized custody of funds. Projects such as Atomic Wallet , a cryptocurrency wallet, focus on deploying a technology called Atomic Swaps. Atomic swaps enable users to exchange assets without third-party custodians ever taking control. The process is entirely P2P and supports cross-chain (i.e., Bitcoin to Ethereum) swaps. The type of interoperability afforded by atomic swaps is a prevailing trend in the broader cryptocurrency community as well. As more cryptocurrency networks launch looking to provide better scalability, interoperability is also becoming a significant consideration. Some projects even bypass custody altogether by both users or exchanges. For example, Morpher is a virtual trading platform where users speculate on the market of the underlying asset via Ethereum smart contracts. Smart contracts mint and burn the Morpher token based on the performance of the underlying asset represented by the contract. As a result, there are no fees and there is theoretically limitless liquidity for any type of market, considering the Morpher token can "morph" into any type of asset. According to Morpher: “If the underlying market gains in value, the smart contract issues new coins to the investor proportionally. If the underlying loses, staked coins are destroyed proportionally.” The idea of P2P exchanges has also been gaining traction recently, although decentralized exchanges (DEXs) and P2P marketplaces have been around in the crypto sphere for several years. Traditionally, the problem of P2P marketplaces and DEXs is that their liquidity is insufficient compared to their centralized counterparts, largely excluding them from the partialities of traders. Despite this, some P2P marketplaces such as Bisq are quickly gathering momentum -- in both users and volume. Particularly in economically destitute regions, such as Venezuela, P2P marketplaces such as LocalBitcoins, as reported by Coin Dance, are invaluable to pegging in and out of a store of value when the Bolivar has become effectively worthless. P2P marketplaces and DEXs still have a long way to go in reaching an optimal level of liquidity but, parallel to the rise of scalability and interoperability, should start becoming more popular among investors in the coming years. Even some centralized exchanges, such as Binance, are exploring DEXs. Binance’s DEX launched last month, and although it is yet to be seen just how decentralized it will be, it is indicative of Binance’s recognition of the larger trend at hand -- users want custody over their funds because they don’t trust exchanges. The implicit nature of trust makes trusting exchanges all the more difficult considering their history peppered with controversy, but at least projects and the overall industry are beginning to take a hard look at how to improve transparency and remove the need for custody of user funds. My podcast has launched and we talk all things startup, tech and blockchain. Check it out here . |
REFILE-UPDATE 6-Harris challenges Biden in breakout U.S. debate performance
(Refiles to fix wording of quote in paragraph 27)
By James Oliphant and Ginger Gibson
MIAMI, June 27 (Reuters) - Presidential candidate Kamala Harris dominated her Democratic rivals in a debate on Thursday, confronting front-runner Joe Biden on race and calling his remarks about working with segregationist senators "hurtful."
In a breakout performance, the daughter of a black father from Jamaica and an Indian mother was at the center of several heated exchanges during the second night of debates among Democrats vying for the right to challenge Republican President Donald Trump in the 2020 election.
Harris said the issue of race was deeply personal for her. She noted she was bused to school as part of integration efforts in California, and she questioned Biden's 1970s opposition to school busing.
The former prosecutor looked straight at Biden and demanded that he explain himself.
"I do not believe you are a racist. And I agree with you when you commit yourself to the importance of finding common ground," said Harris, 54, a U.S. senator from California who has ranked fourth or fifth in most national polls among Democrats.
"But I also believe - and it's personal and it was hurtful to hear you talk about the reputations of two United States senators who built their reputations and career on the segregation of race in this country."
Biden, who was on the defensive throughout the night, has faced heavy criticism for his recent comments that he worked decades ago with two Southern segregationist senators as a way to get things done in the U.S. Senate.
He appeared shaken by the attack, but defended his record on civil rights and said his remarks had been mischaracterized as praise for racists.
"If we want to have this campaign litigated on who supports civil rights and whether I did or not, I'm happy to do that," he said, noting he had only opposed busing for school integration ordered by the federal government, not by local governments.
"Everything I have done in my career, I ran because of civil rights and continue to think we have to make fundamental changes," he said.
He added a dig at Harris, noting he had been a public defender and "didn't become a prosecutor."
One of the lesser-known candidates, U.S. Representative Eric Swalwell, 38, also took a swing at Biden, sharply reminding voters of Biden's age, urging the 76-year-old to pass the torch to younger candidates.
"I was 6 years old when a presidential candidate came to the California Democratic convention and said it’s time to pass the torch to a new generation of Americans," Swalwell said. "That candidate was then-Senator Joe Biden."
"He was right when he said that 32 years ago. He is still right today," Swalwell said.
Biden responded: "I'm still holding onto that torch. I want to make it clear."
In a Democratic contest where racial issues have figured prominently, Mayor Pete Buttigieg of South Bend, Indiana, also faced pointed questions about accusations of racism inside his city's predominantly white police force after a fatal police shooting of a black man.
GOING AFTER TRUMP
During the debate, the contenders frequently attacked Trump and sharply disagreed over the best way to boost access to healthcare insurance coverage. Biden and the candidate running second in polls among Democrats, Bernie Sanders, turned their fire on Trump repeatedly.
"The American people understand that Trump is a phony, that Trump is a pathological liar and a racist and that he lied to the American people during his campaign," said Sanders.
Biden, the former vice president making his third run for the White House, said Trump's tax cuts for the wealthy and other economic policies were increasing economic inequality in the United States.
"Donald Trump has put us in a horrible situation. We do have enormous income inequality," Biden said. "The one thing I agree on is we can make massive cuts in the $1.6 trillion in tax loopholes out there, and I would be going about eliminating Donald Trump's tax cuts for the wealthy."
The debate also included U.S. Senators Michael Bennet and Kirsten Gillibrand, former Colorado Governor John Hickenlooper, self-help guru Marianne Williamson and entrepreneur Andrew Yang. All six are polling nationally around 1% or less.
Like the Democrats who debated on Wednesday, the contenders disagreed on the best way to expand healthcare coverage. Asked who would back a plan that eliminated private insurance, only Sanders and Harris raised their hands.
When asked if their administrations would support covering healthcare for immigrants in the United States illegally, all 10 candidates on the stage raised their hands in the affirmative.
Trump, who has made cracking down on illegal immigration a signature policy of his presidency, pounced via Twitter even though he is in Japan for the G20 summit.
"All Democrats just raised their hands for giving millions of illegal aliens unlimited healthcare. How about taking care of American Citizens first!? That’s the end of that race!" the Republican tweeted.
The Democrats frequently talked over one another, shouting to get their points across as some of the lesser-known contenders tried to get noticed. At one point during the healthcare debate, Harris stepped in.
"America does not want to witness a food fight. They want to know how we're going to put food on their table," Harris said, drawing applause from Biden.
Sanders, who was relegated to the sidelines for much of the night, defended his big-spending plans for a Medicare-for-All healthcare plan, saying it would reduce premiums for many but that some in the middle class might pay more in taxes.
"People who have health care under Medicare for all will have no premiums, no deductibles, no copayments, no out-of-pocket expenses. Yes, they will pay more in taxes, but less in healthcare for what they get," Sanders said.
Buttigieg faced his own questions about the turmoil in his hometown of South Bend after the police shooting in South Bend earlier this month, acknowledged that his police force lacked diversity because he "couldn’t get it done."
Buttigieg said the situation around the shooting was a "mess" because the officer did not have his body camera on.
"If the camera wasn't on and that was the policy, you should fire the chief," Swalwell said.
Hickenlooper challenged Buttigieg about why the department had been so slow to make changes.
"I think that the question they're asking in South Bend and I think across the country is why has it taken so long?" he asked.
Buttigieg said there had been many steps taken to increase accountability by police, but "we're obviously not there yet, and I accept responsibility for that because I'm in charge."
(Reporting by James Oliphant and Ginger Gibson; Additional reporting by Doina Chiacu; Writing by John Whitesides; Editing by Colleen Jenkins, Kieran Murray and Peter Cooney) |
FCC probes whether Sinclair misled agency during failed Tribune deal
By David Shepardson
WASHINGTON (Reuters) - Shares in Sinclair Broadcast Group Inc fell by 1.6% after the U.S. Federal Communications Commission disclosed it has opened an investigation into whether the company misled the agency in its failed effort to win approval for a $3.9 billion bid to purchase Tribune Media Co.
In a June 25 letter to Sinclair posted Wednesday on the FCC’s website, the government agency's media bureau directed Sinclair to answer a series of questions by July 9.
On Thursday, the letter had been removed from the FCC's website.
The FCC did not explain why the letter had been removed but in a statement Thursday said the "Media Bureau is in the process of resolving an outstanding issue regarding Sinclair’s conduct as part of the last year's FCC’s review of its proposed merger with Tribune. The Bureau believes that delaying consideration of this matter would not be in anyone's interest."
Sinclair said Thursday "this is part of an ongoing discussion initiated by Sinclair to work with the FCC to respond to certain allegations raised" last year by the FCC when it referred the issue for a hearing.
Sinclair could face fines from the FCC. In 2017, the FCC fined Sinclair $13.38 million for failing to disclose that programing on local TV stations that looked like news stories was sponsored by a cancer institute.
FCC Commissioner Jessica Rosenworcel, a Democrat, said Thursday that "any settlement negotiated behind closed doors will leave us with more questions than answers about one of the nation’s largest broadcasters. The FCC should hold a hearing in public on these questions and do it now."
Tribune terminated the sale of 42 TV stations in 33 markets to Sinclair, which has 192 stations, in August. A month earlier the FCC referred the deal for a hearing, questioning Sinclair’s candor over the planned sale of some stations and suggesting Sinclair would effectively retain control over them.
An administrative judge in March dropped plans for a hearing into allegations that Sinclair may have misled regulators. Judge Jane Halprin added however that the allegations “are extremely serious charges that reasonably warrant a thorough examination.”
U.S. President Donald Trump backed the deal and its collapse potentially ended Sinclair’s hopes of building a national conservative-leaning TV powerhouse that might have rivaled Twenty-First Century Fox Inc’s Fox News.
Nexstar Media Group Inc said in December it will buy Tribune in a $4.1 billion deal that would make it the largest regional U.S. TV station operator. The deal is still under review by the Justice Department and the FCC.
In May, Walt Disney Co said it would sell its interests in 21 regional sports networks and Fox College Sports to Sinclair for $9.6 billion.
(Reporting by David Shepardson; Editing by Lisa Shumaker) |
ShapeShift Founder Says Crypto Exchange Service Will Support Libra
ShapeShiftcould be integrating Facebook’sLibrain the near future, Erik Voorhees said.
The Shapeshift CEO commented on Facebook’s cryptocurrency project from a personal perspective at the Bitcoin2019 event, declaring that even thoughLibra doesn’t exist yet, there’s a space for it in his platform.
“It’s too early because it doesn’t exist yet but I would love to integrate Libra into ShapeShift when it does exist,” Voorhees said.
Related:Bitcoin Price Takes Another Tumble, Shedding Nearly $1,000 in 20 Minutes
The cryptocurrency and blockchain entrepreneur explained that his interest in Libra depended on how well the project would work.
“The really interesting thing about Libra is what rules are based on it,” he said.
Voorhees also had a few concerns, pointing out that what its presented inLibra’s white papercould change when the project actually launches.
“So, fundamentally it’s based on a relatively decentralized worldview, but that could be very different when it actually launches versus what’s been reported,” he said.
Related:Watch CoinDesk LIVE: Bitcoin in FLUX
He also assessed the control Libra could give to users from a technical aspect.
“We will see how freely it can move. For example, does someone need permission to integrate it into something?” Voorhees asked.
Libra could also serve as a way to usher in broader bitcoin adoption.
The entrepreneur explained that Libra’s value could surpass the dollar’s, making it a more attractive form of payment.
“I’m very excited that Libra isn’t just on a one-on-one parity with the dollar,” he said.
Voorhees also said thatLibracould make Facebook users more open to digital currencies.
“One of the effects is that people, specially Americans, will start to get more comfortable with a coin that is a little bit more powerful versus the dollar,” he said.
On the other hand, the use of Libra is also a way for new users to get into bitcoin and to get used to price volatility.
“It’s price will vary, but nothing like bitcoin’s,” he said. “People will realize that is OK to have an asset that moves, and indeed there isn’t an asset in the world that doesn’t move.”
Image via Consensus archives
• Facebook Seeks Wallet Engineers as Blockchain Job Openings Top 30
• Bitcoin Drops Below $12K After Biggest Daily Price Move Since January 2018 |
NeoGenomics Announces New $250 Million Credit Agreement
FORT MYERS, FL / ACCESSWIRE / June 27, 2019 / NeoGenomics, Inc. (NEO),a leading provider of cancer-focused genetic testing services, today announced that the company has entered into a new $250 million five-year Senior Secured Credit Agreement (the "New Credit Agreement") consisting of a $100 million Revolving Credit Facility, a $100 million Initial Term Loan, and a $50 million Delayed Draw Term Loan ("DDTL") which is available for 18 months. PNC Capital Markets LLC and PNC Bank, National Association acted as lead arranger and administrative agent on the transaction, respectively.
Upon closing on June 27, 2019, NeoGenomics received the Initial Term Loan Facility principal in full along with access to the Revolving Credit Facility and utilized $100 million of proceeds to retire NeoGenomics' prior outstanding term loan and revolving credit facility. NeoGenomics expects to utilize the remaining borrowing capacity to support inorganic growth opportunities and for general corporate purposes.
"In combination with our May secondary equity offering, our new larger credit agreement provides NeoGenomics significant flexibility to opportunistically grow through M&A and invest in other key corporate initiatives," said Sharon Virag, NeoGenomics' Chief Financial Officer. "Our new credit agreement represents an attractive source of capital for NeoGenomics and we are very pleased with the strong support from our banking partners."
About NeoGenomics, Inc.NeoGenomics, Inc. specializes in cancer genetics testing and information services. The Company provides one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer. The Company's Pharma Services division serves pharmaceutical clients in clinical trials and drug development.
Headquartered in Fort Myers, FL, NeoGenomics operates CAP accredited and CLIA certified laboratories in Ft. Myers and Tampa, Florida; Aliso Viejo, Carlsbad and Fresno California; Houston, Texas; Atlanta, Georgia; Nashville, Tennessee; Rolle, Switzerland, and Singapore. NeoGenomics serves the needs of pathologists, oncologists, academic centers, hospital systems, pharmaceutical firms, integrated service delivery networks, and managed care organizations throughout the United States, and pharmaceutical firms in Europe and Asia. For additional information about NeoGenomics, visithttp://www.neogenomics.com/.
Forward Looking StatementsCertain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including the information set forth in the "Full-Year 2019 Financial Outlook". These forward looking statements involve a number of risks and uncertainties that could cause actual future results to differ materially from those anticipated in the forward-looking statements as the result of the Company's ability to continue gaining new customers, offer new types of tests, integrate its acquisition of the Genoptix business and otherwise implement its business plan, as well as additional factors discussed under the heading "Risk Factors" and elsewhere in the Company's Annual Report on Form 10-K filed with the SEC on February 26, 2019, amended by a 10K/A filed with the SEC on May 8, 2019. As a result, this press release should be read in conjunction with the Company's periodic filings with the SEC. In addition, it is the Company's practice to make information about the Company available by posting copies of its Company Overview Presentation from time to time on the Investor Relations section of its website athttp://ir.neogenomics.com/.
Forward-looking statements represent the Company's estimates only as of the date such statements are made (unless another date is indicated) and should not be relied upon as representing the Company's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if its estimates change.
For further information, please contact:
NeoGenomics, Inc.William BonelloChief Strategy and Corporate Development OfficerDirector, Investor Relations(239)690-4238 (w) (239)284-4314 (m)bill.bonello@neogenomics.com
SOURCE:NeoGenomics, Inc.
View source version on accesswire.com:https://www.accesswire.com/550174/NeoGenomics-Announces-New-250-Million-Credit-Agreement |
Top 10 Stocks Under $20 to Buy Heading into July
At Zacks, we try to avoid labeling stocks as “cheap” or “expensive.” Instead, we opt to look beyond a stock’s face value, and our system puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.
With that said, low-priced stocks can still be attractive to investors as they present the chance to take a larger position in a company. When searching for these low-priced stocks, we still look for similar trends in growth, value, and momentum. Then we apply the Zacks Rank to properly analyze the potential that these companies have.
Today we’ve highlighted 10 stocks that are currently trading for under $20 per share. All of these stocks sport a Zacks Rank #2 (Buy) or better at the moment, along with a variety of other positive factors that help these companies stand out.
Snap Inc. SNAP
Prior Close: $14.71 USD
Shares of SNAP have skyrocketed 166% in 2019 to crush its industry’s 19% average. The social media firm failed to impress investors after its highly anticipated IPO in 2017. With that said, Snapchat’s parent company is poised to see both its top and bottom lines climb in a big way over the next serval years. Our current Zacks Consensus Estimates call for its fiscal 2019 revenue to jump 35% to $1.59 billion, which is projected to lift adjusted earnings by 36%. SNAP is then expected to see its 2020 revenue jump 32.6% above our current-year estimate to reach $2.11 billion. Meanwhile, the firm’s earnings are projected to surge over 65%. In the end, adding #2 (Buy)-ranked Snap right now as a home run play that sits well below its all-time highs could be a solid idea, especially as Facebook FB faces increased government scrutiny.
iQIYI, Inc. Sponsored ADR IQ
Prior Close: $18.18 USD
iQIYI is a leading online entertainment service firm in China announced on June 24 that it surpassed 100 million subscribing members. The firm that helped pioneer the video streaming platform in the world’s second largest economy and has been called, of course, the Netflix NFLX of China saw its stock price soar 11% through mid-day trading Thursday to inch just over $20 a share. iQIYI, which has an average trading volume of roughly 9 million, is projected to see its adjusted current full-year earnings jump 44% on 24.3% revenue growth. The company’s 2020 EPS figure is expected to surge 50% above our 2019 estimate to reach a loss of -$0.70 per share. Meanwhile, iQIYI’s 2020 revenue is projected to come in 27% higher than our 2019 estimate to help make its case for a potential growth pick. iQIYI is a Zacks Rank #2 (Buy) at the moment.
Toray Industries Inc. TRYIY
Prior Close: $15.26 USD
Toray is a manufacturer, processor, and seller of textiles, fibers, performance chemicals and composites. TRYIY stock is up 14% in the past month and is currently a Zacks Rank #2 (Buy) that rocks an “A” grade for Value in our Style Scores system. The company’s adjusted fiscal-year earnings are projected to jump 19% on nearly 5% revenue growth that would see it hit $22.23 billion. Toray is also a dividend payer, with an industry-matching 0.58 price/sales ratio.
General Electric Company GE
Prior Close: $10.27 USD
General Electric stock has climbed over 37% in 2019 to outpace its industry’s 21% average climb. This includes an 11% pop in the last month on the back of some positive aviation-business related news. In fact, GE Aviation set a record for orders at the Paris Air show this June, with $55 billion in jet engines, services, avionics, and digital offerings. GE’s aviation division makes up about 30% of the company’s revenue at the moment. The conglomerate has also seen its longer-term earnings estimate revision picture trend completely upward recently to help GE earn a Zacks Rank #1 (Strong Buy) at the moment. On top of that, General Electric’s 0.74 price/sales ratio marks a significant discount against its industry’s 1.37 average.
Ford Motor Company F
Prior Close: $9.91 USD
Ford is a Zacks Rank #2 (Buy) that claims an “A” for Value and a “B” for Momentum at the moment. F stock has climbed 34% in 2019 to crush its industry’s 6% average. The historic auto giant is set to launch 40 electric offerings by 2022 in order to compete with the likes of Tesla TSLA. Ford is also set to dive into the autonomous vehicle space. Ford’s current-quarter earnings are projected to surge by 22.2%, with the following quarter projected to jump 14% above the year-ago period. Plus, the company is coming off a 70% positive earnings beat last quarter. Ford is also a dividend payer with a massive yield of 6.05%.
Vipshop Holdings Limited VIPS
Prior Close: $8.31 USD
The Guangzhou, China-based online discount retailer sells popular branded products, from the likes of Nike and more regional-specific companies, throughout China. Vipshop’s lifted its total active customer base by 14% during its first-quarter of fiscal 2019. Looking ahead, the company’s full-year 2019 EPS figure is projected to surge 31% to reach $0.76 per share on the back of 3% revenue expansion. Peeking further ahead, VIPS’ adjusted 2020 earnings are projected to climb roughly 32% higher than our current year estimate on 7% greater revenues. VISP is a Zacks Rank #2 (Buy) right now that rocks a “B” grade for Value. Plus, Vipshop stock has soared 56% in 2019.
Asure Software Inc ASUR
Prior Close: $7.49 USD
Asure is a cloud computing firm that offers its business clients the chance to modernize everything from human capital management and time & attendance solutions to payroll and taxes. ASUR holds a Zacks Rank #1 (Strong Buy) at the moment, along with an “A” grade for Growth and a “B” for Value. ASUR shares are up 50% halfway through the year. The Austin, Texas-based firm’s full-year revenue is projected to climb 18.1% to reach $105.1 million. Meanwhile, its adjusted fiscal 2019 earnings are projected to pop 5.5% to hit $0.58 per share, with 2020’s EPS figure expected to climb 23% above our 2019 estimate.
Fly Leasing Limited FLY
Prior Close: $17.11 USD
FLY leases aircraft to airlines around the world, as its name might suggest. The firm ended last quarter with 103 aircraft and seven engines in its portfolio, split relatively evenly between Boeing BA and Airbus SE EADSY. Shares of FLY have flown 64% higher in 2019. The Dublin, Ireland-based company’s adjusted fiscal 2019 earnings are projected to soar 36.5% from the year-ago period to reach $3.93 per share, on 16.3% revenue expansion. FLY’s positive longer-term earnings estimate revision activity helps it earn a Zack Rank #1 (Strong Buy). Plus, the firm’s forward P/E of 4.4 rests well below its industry’s 9.2 average.
Host Hotels & Resorts, Inc. HST
Prior Close: $17.62 USD
Host Hotels & Resorts is one of the largest lodging-based real estate investment trusts in the world and owns upscale and luxury hotels from Miami to Honolulu. HST’s fiscal 2019 and 2020 earnings estimates have climbed recently to help it earn a Zacks Rank #2 (Buy). On top of that, Host Hotels is trading at 9.8X forward earnings estimates, which is far below its industry’s average of 14.8X. Host Hotels & Resorts, which earns a “B” grade for Value, is also a dividend payer with a strong 4.5% yield.
Hertz Global Holdings, Inc. HTZ
Prior Close: $16.14 USD
Hertz operates vehicle rental businesses throughout the world under the Hertz, Dollar, and Thrifty brands. HTZ is Ranks Rank #2 (Buy) that sports an overall “A” VGM score. Hertz holds a price/sale ratio of 0.14, which marks a huge discount compared to its industry 0.66 average. Shares of HTZ are up 20% in 2019, which comes in above its 15.9% average. The firm’s adjusted current-quarter earnings are projected to skyrocket 152% from a loss of $0.19 per share in the year-ago period to earnings of $0.10 per share. On top of that, HTZ is projected to see its full-year fiscal 2019 EPS figure soar 700% from a loss in fiscal 2018 to positive earnings of $1.02 per share in 2019. The company’s bottom line is then expected jump 88% above our current-year estimate in 2020. Meanwhile, revenue is projected to pop 3.2% this year and 3.5% higher in the following year.
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.See these 7 breakthrough stocks now>>
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 reportFly Leasing Limited (FLY) : Free Stock Analysis ReportHertz Global Holdings, Inc (HTZ) : Free Stock Analysis ReportNetflix, Inc. (NFLX) : Free Stock Analysis ReportFacebook, Inc. (FB) : Free Stock Analysis ReportSnap Inc. (SNAP) : Free Stock Analysis ReportVipshop Holdings Limited (VIPS) : Free Stock Analysis ReportAsure Software Inc (ASUR) : Free Stock Analysis ReportThe Boeing Company (BA) : Free Stock Analysis ReportAirbus Group (EADSY) : Free Stock Analysis ReportFord Motor Company (F) : Free Stock Analysis ReportTesla, Inc. (TSLA) : Free Stock Analysis ReportGeneral Electric Company (GE) : Free Stock Analysis ReportToray Industries Inc. (TRYIY) : Free Stock Analysis ReportHost Hotels & Resorts, Inc. (HST) : Free Stock Analysis ReportiQIYI, Inc. Sponsored ADR (IQ) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Arkansas governor orders levee review after historic flood
LITTLE ROCK, Ark. (AP) Arkansas' governor on Thursday ordered a review of the state's levees and is asking lawmakers to approve $10 million for immediate repairs after historic flooding along the Arkansas River. Gov. Asa Hutchinson signed an executive order to create the Arkansas Levee Task Force to study and analyze the condition of the state's levees. Hutchinson said the panel will have about 20 members and will make recommendations to him by December 31 on ways to improve monitoring and maintenance of the state's levee system. "We have a lot of work ahead," Hutchinson, a Republican, said at a news conference at the state Capitol. "One, to learn from what we've experienced in the last few weeks in our levy system, how we can improve the system for the future and to make sure we're better prepared for the floods we know will come periodically in the state of Arkansas." Several Arkansas levees were affected by the flooding that began in late May, including one in western Arkansas that was breached. Hutchinson said the flooding revealed many weaknesses in the state's levee system. President Donald Trump earlier this month approved a major disaster declaration for several counties hit by the flooding. Hutchinson said the panel's tasks will include identifying sources and requirements for funding the construction, repair and maintenance of the 93 levees in the state. The governor noted that less than 20 of those levee boards have filed reports required under a 2017 law about the condition of their levees and their organizational structure. He said some levee reports weren't filed because they didn't have anyone overseeing them. "That is one of the challenges we face," he said. "We have levees that are needed, but there's not an organizational structure that will provide the maintenance, the inspections that are needed to keep them up to standard and to levy any assessments that are needed to provide the funding for the maintenance of those levees." Story continues Hutchinson called the $10 million in funding a start and said additional funding may be proposed based on the task force's recommendations. State Democrats said they supported the additional funding, but blamed Republican leaders who they said haven't put a high enough priority on infrastructure needs. Republicans control both chambers of the Legislature. "It's sad that it takes so many Arkansans facing a catastrophe like this to make those same leaders realize that infrastructure should be a priority," State Democratic Party Chairman Michael John Gray said in a statement. ___ Follow Andrew DeMillo on Twitter at www.twitter.com/ademillo |
Stocks mixed as Trump-Xi meeting looms
U.S. stocks struggled for direction on Thursday amid jitters over the outcome of a meeting between President Donald Trump and China’s Xi Jinping later this week.
The S&P 500 (^GSPC) rose 0.38%, or 11.14 points, as of market close. The Dow (^DJI) edged down 0.04%, or 10.24 points, as declines in shares of Boeing weighed on the 30-stock index. The Nasdaq (^IXIC) rose 0.73%, or 57.79 points.
Equities have traded choppily in the days leading up to Trump and Xi’s meeting at the G20 summit in Japan on Saturday. The tête-à-tête between the two world leaders comes after trade talks between the U.S. and China broke down and the Trump administration implemented additional tariffs on Chinese imports in May.
Given turbulent U.S.-China trade relations in recent weeks, many investors are skeptical the meeting will produce meaningful progress.
“While neither side will want to leave the meeting empty handed, we see several reasons why a major deal is not in the offing,” Aditya Bhave, Bank of America Merrill Lynch global economist, wrote in a note. “The Trump administration has already started to downplay hopes of a deal, likely because the two sides are still very far apart.”
“We think it will be difficult to bridge the gap because the strength of U.S. equity markets and the [Federal Reserve’s] dovish turn have greatly reduced the pressure on the U.S. to compromise,” Bhave added.
Xi is poised to lay out terms that the U.S. must meet before settling a trade deal, theWall Street Journal reportedThursday, citing unnamed people familiar with the plan. Xi’s wish list will reportedly include a requisite that the U.S. lift rules banning American companies from selling parts to Chinese telecommunications company Huawei. China will also demand that the U.S. remove all punitive tariffs, and cease attempts to have China purchase more exports than had been agreed upon after the last G20 meeting in December, the WSJ reported.
Other reports have struck a positive tone ahead of the meeting, fueling optimism for at least a pause on further tariff escalation. The South China Morning Postreported Thursdaythat both the U.S. and China agreed to temporarily halt additional tariffs as trade talks resume. This decision will be publicized with separate press releases from each country ahead of the G20 meeting, according to the SCMP.
Meanwhile, China’s industrial sector held up in May even amid ongoing trade tensions. Industrial profits rose 1.1% in May over last year as higher sales and slower cost increases boosted companies’ bottom lines, helping reverse a 3.7% drop in April, the country’sNational Bureau of Statistics reportedThursday. However, some economists have questioned the veracity of China’s government data.
The U.S. economy grew at a 3.1% clip in the first quarter,according to the U.S. Bureau of Economic Analysis’third printon gross domestic product (GDP). This was slower than the 3.2% pace expected, according to consensus economists polled by Bloomberg. The BEA previously reported annualized GDP of 3.1% in its second estimate.
Personal consumption rose a softer-than-expected 0.9%in the first quarter of 2019 over last year, the BEA reported in its third print on the metric. Consensus expectations had been for a 1.3% gain, or the same pace that had been reported in the second estimate. Meanwhile, core personal consumption expenditures (PCE) rose 1.2% over last quarter, versus a 1.0% reading expected and reported in the second print.
New unemployment claims rose to a near two-monthhigh for the week ending June 22, according to theDepartment of Labor’s weekly release. Initial jobless claims totaled a seasonally adjusted 227,000 for the week, an increase of 10,000 from the prior week’s upwardly revised level and above the 220,000 anticipated by consensus economists. The four-week average for new jobless claims, which smooths some volatility in the weekly readings, rose to 221,250, or the highest level in more than one month.
Continuing jobless claims also rose for the week endedJune 25. Continuing claims rose to a seasonally adjusted 1.688 million for the week, higher than the week prior’s upwardly revised level of 1.666 million. Consensus economists expected a reading of 1.665 million for the most recent week.
Pending home sales rose a better-than-expected 1.1% in Mayfrom April, according to theNational Association of Realtors’ (NAR) Thursday report. This was stronger than the 1.0% gain expected by consensus economists, and represented a rebound from the 1.5% decline in contracts to purchase previously owned homes between March and April. NAR chief economist Lawrence Yun said in a statement that lower-than-average mortgage rates contributed to an increase in May’s pending home sales.
Walgreens Boots Alliance (WBA) reported quarterly resultsthat topped consensus expectations as retail pharmacy sales surged over last year. Quarterly adjusted earnings per share of $1.47 beat expectations by 4 cents, while net sales of $34.59 billion were slightly ahead of estimates of $34.44 billion, according to Bloomberg data. U.S. retail pharmacy comparable sales rose 6% during the quarter, versus a 1.2% decline last year. Walgreens reaffirmed its forecast for sales to be flat through the end of its fiscal year, which extends through August.
Boeing (BA) shares fell in early trading afterU.S. Federal Aviation Administration (FAA) officials saidWednesday that they identified a new concern that Boeing must address before its grounded 737 Max aircraft can return to the air. The FAA said it is “following a thorough process, not a prescribed timeline, for returning the Boeing 737 Max to passenger service.”
The point of concern affected FAA test pilots’ ability to quickly and easily follow required recovery procedures for runaway stabilizer trim, a source familiar with the FAA’s identification of the issue told Yahoo Finance. The issue relates to the way in which data is processed by the flight computer.
Ford (F)announcedThursday that it will need to cut 12,000 jobsin Europe by the end of 2020 in order to return to profitability amid ongoing challenges for automakers to reduce costs as they invest to comply with new clean-air rules. Ford has previously announced a restructuring plan, including closing six plants in Europe. Ford plans to pare the number of plants in the region to 18. The job cuts in Europe would be achieved primarily by voluntary separation programs, according to the company. Ford posted a loss of $398 million in 2018 in Europe.
—
Emily McCormick is a reporter for Yahoo Finance.Follow her on Twitter: @emily_mcck
Read more from Emily:
• Don’t say ‘IPO’: What to know about Slack’s direct listing
• Buffett on the American economy, capitalism: ‘It works’
• Tech companies like Lyft want your money – not ‘your opinion’
• Levi Strauss shares jump more than 30% above IPO price at open
• Facebook sued by Trump administration for alleged ‘discriminatory’ ad practices
• Boeing 737 Max groundings ‘pressure’ U.S. economic data: Wells Fargo
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Town mayor resigns after attacks on social media
The mayor of a small town in Missouri has resigned after just one year in the position, after facing “absolutely disgusting” attacks on social media . Fred Wiedner, the now former mayor of the city of Lexington, made his announcement in an open letter on Tuesday, when he cited interactions on Facebook as the driving force behind his resignation. “The recent hatred, attacks, and outright lies that have been hurled my direction on Facebook by some citizens of this community are absolutely disgusting and I honestly believe do not represent the majority,” he wrote. “I did not sign up for this mess.” Wiedner went on to comment on “how mean people could be,” although he wrote that he wouldn’t be addressing specific attacks until the city council meeting that took place Tuesday night. After 12 months in office, however, dealing with the online criticism was no longer worth it. Fred Wiedner announced his resignation with an open letter. (Photo: Facebook) The Lexington city clerk didn’t reply to Yahoo Lifestyle’s request for comment. However, told Fox News that the online debates were sparked when the mayor made the decision to fire a well-liked administrator in March. According to Kansas City outlet KCTV , the administrator’s firing was a result of accusations that he was promoting a ballot measure while the city was still paying him. The Missouri ethics commission later found no evidence to support the allegations. Meanwhile, the former mayor assured that he always acted in the best interest of the city. Now, in his own best interest, Wiedner wrote that he and his wife decided to move away from Lexington after he accepted a job offer in another state, as former councilman, Scott Lynn, will now serve as mayor. Wiedner didn’t immediately respond to Yahoo Lifestyle’s request for additional information. He revealed to KCTV that his new job is in Florida. “My family and I are leaving behind many good friends and I am sure that we will stay in touch,” Wiedner’s letter reads. “We wish the best for the City of Lexington.” Story continues Read more from Yahoo Lifestyle: Adam Scott gives Mitch McConnell permission to use his image on Twitter only during his 'stunning & humiliating defeat' Alexandria Ocasio-Cortez supports #WayfairWalkout: 'This is what solidarity looks like' Slovakia's first female president shuts down journalist's question about her outfit Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day. |
Billie Eilish, Ariana Grande, BTS, Mumble Rap Lead Nielsen Musics Mid-Year Report
Click here to read the full article. Albums by Ariana Grande , Billie Eilish , Halsey, Khalid, BTS and Bad Bunny led to a record 507 billion on-demand streams in the first six months of 2019, according to Nielsens mid-year report, which outlines the music industrys leading trends, data and insights over the past six months. Breaking down the leading trends via the Gracenote Music Database, the report states that 2018s most popular music trend Mumble Rap continued to gain ground during the first half of the year. Mumble Rap was still the preferred musical style at a high margin over the second favorite, Contemporary Rhythmic Pop, the report reads, thanks in part to popular songs from Post Malone, Lil Nas X, DaBaby and more. Other leading mood styles include Contemporary Pop Power Ballad, Trap, Pop Reggaeton and Urban Contemporary. Related stories 'Charlie's Angels': Kristen Stewart, Naomi Scott and Ella Balinska Team Up in First Trailer Miley Cyrus Teases 'Charlie's Angels' Collaboration with Ariana Grande and Lana Del Rey Looking for a Summer Hit? Put a Ticking Clock in Your Song, Plus Other Pop Signifiers However, Billie Eilish and Ariana Grande are among the leading artists who dont really fit any of those categories. Eilish placed a whopping nine tracks among the 200 most-consumed songs of 2019, while Grandes 7 Rings was the years third most-consumed song with over 776 million on-demand streams. Elsewhere in its analysis, the report notes that the years biggest music moments have been aided by exposure in popular films, pointing to the success of Lady Gaga and Bradley Coopers Shallow from A Star Is Born (684,000 song downloads, 316 million on-demand song streams and 1 billion audience impressions on the radio); Post Malone and Swae Lees Sunflower from Spider-Man: Into the Spider-Verse (47.6 million U.S. streams in the week after the films release); the Queen biopic Bohemian Rhapsody the title song has 170,000 song downloads and over 170 million on-demand streams, and the group has sold more albums and digital songs than any other artist this year, with over 731,000 album sales and 1.3 million downloads, respectively; and the Elton Johns biopic Rocketman, which gave his catalog a 138% gain in album sales, a 142% increase in digital song downloads and a 48% increase in audio streams in the week after the films release. Story continues The report also points to global genres, such as K-Pop and Latin, making major inroads in the U.S. BTS Map of the Soul: Persona earned some 230,000 equivalent album units in its first week on the charts in April, while their single with Halsey, Boy With Luv has reached 125 million on-demand streams so far this year. Blackpinks Kill This Love hit 18.6 million first week on-demand streams. It also points to crossover successes by Latin artists including Daddy Yankees song Con Calma (216 million on-demand streams year-to-date, including the bilingual remix featuring Katy Perry), over 26 million on-demand streams for Natti Natashas Me Gusta, and 14 million on-demand streams year-to-date for Madonnas Medellin featuring Maluma. The report also pointed to Marshmellos success with the first-ever in-game concert on the popular live-streamed game Fortnite, which brought a 316% sales increase for his album Joytime II and massive media exposure; the boost the annual Record Store Day brings to independently owned record stores (an all-time high with 827,000 vinyl albums sold during the week ending April 18, up 12.8% from 2018 and noted that vinyl sales are up nearly 10% over the first six months of 2018); and, sadly, noted the 2,776% rise in consumption of rapper Nipsey Hussles catalog in the wake of his death on March 31. Sign up for Varietys Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
US STOCKS SNAPSHOT-Wall Street rises on investor optimism ahead of G20
NEW YORK, June 27 (Reuters) - The S&P 500 and the Nasdaq closed higher after a broad-based rally on Thursday as investors looked to the G20 summit in Osaka, Japan this weekend for progress in the long-running U.S.-China trade dispute, which has whipsawed markets for months.
The Dow Jones Industrial Average fell 11.05 points, or 0.04%, to 26,525.77, the S&P 500 gained 11.02 points, or 0.38%, to 2,924.8 and the Nasdaq Composite added 57.79 points, or 0.73%, to 7,967.76. (Reporting by Stephen Culp in New York Editing by James Dalgleish) |
Graves of US WWII servicemen unearthed on Pacific island
HONOLULU (AP) — An organization that searches for the remains of U.S. servicemen lost in past conflicts has found what officials believe are the graves of more than 30 Marines and sailors killed in one of the bloodiest battles of World War II. A team working on the remote Pacific atoll of Tarawa found the graves in March, said Mark Noah, president of the nonprofit History Flight. The remains are believed to belong to Marines and sailors from the 6th Marine Regiment killed during the last night of the three-day Battle of Tarawa. The Defense POW/MIA Accounting Agency expects to pick up the remains and fly them to Hawaii next month, said Dr. John Byrd, director of agency's laboratories. Military forensic anthropologists will then work to identify them using dental records, DNA and other clues. More than 990 U.S. Marines and 30 U.S. sailors were killed in the 1943 Battle of Tarawa, after the U.S. launched an amphibious assault on the small island about 2,300 miles (3,700 kilometers) southwest of Honolulu. Marines and sailors quickly encountered Japanese machine-gun fire when their boats got stuck on the reef at low tide. Americans who made it to the beach faced brutal hand-to-hand combat. The U.S. military buried its men in makeshift cemeteries where they fell. But Navy construction battalion sailors removed markers for these graves when they hurriedly built runways and other infrastructure to help U.S. forces push farther west across the Pacific toward Japan. History Flight has recovered the remains of 68 individuals and more than 200 sets of partial remains from Tarawa since 2015, when it began excavating under a contract with the Defense Department, the Defense POW/MIA Accounting Agency said. The military is paying History Flight $4.1 million for the current contract lasting from February 2018 through July. Tarawa is now part of the Republic of Kiribati. Its government allowed History Flight to demolish an abandoned building in its latest search. Many of the graves were underneath it. Story continues A large number of graves also are below the water table, meaning History Flight workers must pump water from the site each day to excavate. Byrd said the Army Graves Registration Service excavated some of Tarawa's temporary cemeteries in the late 1940s but left behind parts of individuals during this process. History Flight is now thoroughly excavating these gravesites, leading them to find partial remains that have been matched with those already buried as "unknowns" in a national cemetery in Honolulu. The Defense POW/MIA Accounting Agency dug up these remains in 2017 to make additional identifications. The agency has identified more than 100 people excavated from Tarawa and the Honolulu cemetery since 2015. ___ The story has been updated to correct the number of individuals History Flight has recovered from Tarawa since 2015. |
Is Ausdrill Limited's (ASX:ASL) 16% ROE Better Than Average?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Ausdrill Limited (ASX:ASL), by way of a worked example.
Over the last twelve monthsAusdrill has recorded a ROE of 16%. That means that for every A$1 worth of shareholders' equity, it generated A$0.16 in profit.
Check out our latest analysis for Ausdrill
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Ausdrill:
16% = AU$241m ÷ AU$1.5b (Based on the trailing twelve months to December 2018.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. The higher the ROE, the more profit the company is making. So, all else equal,investors should like a high ROE. That means ROE can be used to compare two businesses.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Ausdrill has a similar ROE to the average in the Metals and Mining industry classification (14%).
That isn't amazing, but it is respectable. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Although Ausdrill does use debt, its debt to equity ratio of 0.51 is still low. Its very respectable ROE, combined with only modest debt, suggests the business is in good shape. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Kevin Durant Sells Oceanfront Malibu Beach House for $12.15 Million
Kevin Durant is going through a season of change. The Golden State Warriors star, who will become an unrestricted free agent at the end of the month, recently sold his picturesque oceanfront Malibu beach house for $12.15 million, a little over a year after he purchased the 5,100-square-foot dwelling for $12.05 million. The multilevel home was recently remodeled, and boasts four bedrooms and six bathrooms spread out over three floors (an elevator services each floor). The abode is extremely sleek and contemporary, with high ceilings, white walls, skylights, and French oak floors creating a relaxing, laid-back vibe. The main living room has an enormous skylight and a large minimalist fireplace built directly into one wall; a wall of sliding glass doors opens out onto a back deck with the ocean visible just beyond its railings. The adjacent kitchen features a marble-topped center island with a six-burner stove and pristine white cabinets. A dining area just off the kitchen is similarly clean-lined, with yet another wall of glass sliders leading out onto a deck. Elsewhere on the ground floor is a cozy den with its own smaller, minimal wood-burning fireplace, built-in wooden shelves and cabinets, and convenient wet bar. The bedrooms, located on the upper levels, include their own sliding glass doors and access to private balconies facing the ocean. In the master suite, there is a glass-enclosed wood-burning fireplace with a giant flat screen TV hung above it, plus a spa-like en suite bathroom featuring a sleek stand-alone deep-soaking tub and a very large separate glass-enclosed shower. Other amenities in the home include a library, a lofted space which doubles as a massage and exercise area, and a separate media room located on the lowest level. That room features a glass-enclosed wine wall and access to an outdoor spa and dining patio. Outside the home is perhaps the best feature of all— direct access to the beach . Originally Appeared on Architectural Digest |
EMERGING MARKETS-Most Latam FX fall, Brazil's real firms
(Updates prices) By Susan Mathew June 27 (Reuters) - Most Latin American currencies dipped on Thursday as news flow from the White House dampened optimism around a China-U.S. trade deal, while Brazil's real reversed course to trade higher. Currencies of Colombia, Chile and Argentina fell between 0.07% and 0.3% against a dollar that held steady as traders moved to the sidelines ahead of this weekend's G20 summit when leaders of China and United States are to meet to discuss trade. U.S. President Donald Trump's decision on whether to impose a new round of tariffs on Chinese goods is contingent on the outcome of his meeting with Chinese President Xi Jinping, a senior Trump administration official said on Thursday. He added it was unlikely that the United States would agree to lift sanctions imposed on Chinese telecom equipment maker Huawei Technologies Co Ltd Mexico's peso was 0.2% lower. The Bank of Mexico kept rates unchanged on Thursday, as expected, and said the balance of risks for growth has become more uncertain. Christian Lawrence, a senior market strategist at Rabobank, said that while there has been a gradual rise in dovish-ness over the last three meetings, this meeting's message has been the most dovish so far. "I would say that the door is now open for rate cuts," he said. "I personally don't think they are going to cut rates until the fourth quarter, but that will be dependent on the Fed decision in July. If the Fed says it's going to start an easing cycle immediately then Banxico may end up cutting rates sooner." The peso steepened losses slightly right after the central bank announcement, but moved back to levels before the rate decision. It later deepened losses as the session progressed. Mexican stocks slid 1.1% with shares of energy infrastructure firm IEnova declining the most, down 6.2%, on pipeline contract concerns. Brazil's real rose 0.5%, recovering from a week's low hit earlier in the session, on reassurances on economic growth and pension reforms. Brazil's economy should recover in the second quarter of this year, central bank president Roberto Campos Neto said, but he said it was contingent on the approval of pension reforms. The bank had slashed its 2019 economic growth forecast earlier in the day. On the pension reform front, special congressional pension coordinator Samuel Moreira said there is still time to vote on the reform this month, even after a committee meeting to decide on a final version of the bill before sending it to the lower house plenary was canceled on Thursday. Sao Paulo traded stocks cut losses to trade flat. Shares in Colombia rose 0.2%, while those in Argentina jumped 3% to hover near all-time highs. Key Latin American stock indexes and currencies at 1940 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1,055.61 0.73 MSCI LatAm 2,839.60 -0.13 Brazil Bovespa 100,492.47 -0.19 Mexico IPC 43,305.14 -1.11 Chile IPSA 5,053.20 -0.6 Argentina MerVal 41,122.23 3.02 Colombia IGBC 12,630.22 0.2 Currencies Latest Daily % change Brazil real 3.8277 0.49 Mexico peso 19.1618 -0.18 Chile peso 679.4 -0.07 Colombia peso 3,196.15 -0.47 Peru sol 3.289 0.12 Argentina peso 42.6800 0.12 (interbank) (Reporting by Susan Mathew in Bengaluru; editing by Grant McCool) |
Dutch PM says China has stuck to climate goals despite economy, trade war
By Ryan Woo BEIJING (Reuters) - China has stuck to its climate change goals even with a slowing economy - the world's second largest - and a trade war with the United States, Dutch Prime Minister Mark Rutte said on Thursday. Nations exposed to the ill effects of global warming have put their faith in Beijing to help save the 2015 Paris Climate Change Agreement after President Donald Trump withdrew the United States from the deal, reached before he took power. "China has so far been a staunch supporter of the Paris Climate Agreement. In some ways, it's even ahead of delivering on its targets," Rutte told Reuters in an interview in the Chinese capital on Thursday. "(China's) Premier Li Keqiang and I with our delegation discussed ... climate mitigation and adaptation ... at length. It will also create a lot of new jobs in the new economy," Rutte said when asked if China might play down its longer-term climate targets as its economy slows and trade clashes with Washington persist. Rutte was on a visit at Li's invitation to weigh bilateral ties and also open in Beijing the first regional office of the Global Center on Adaptation (GCA), a Dutch-led initiative to support countries looking to adapt to climate change. Commitments to fight global warming were expected to be addressed at the Group of 20 summit in Japan this week. In drafts of the summit communique, the United States was pushing to water down the language. China has avoided direct comment on the tussle over language. A spokesman at the Chinese foreign ministry said on Thursday he expected the summit to send positive political signals with respect to combating climate change. China has said it cut carbon emissions by 45.8% last year from the level in 2005, exceeding the goal of a 45% cut by 2020 it undertook under the Paris accord. Given the huge size of its economy, China has "moral and political responsibility regardless of what their economic development rate may be," Ban Ki-moon, former secretary-General of the United Nations and GCA board chairman, told Reuters. Story continues China's economy is growing at its slowest pace in almost 30 years as domestic demand wanes and the bitter trade war with the United States, the world's largest economy, clouds its near-term outlook. Developed nations have pledged to mobilise $100 billion a year in financing for climate change-vulnerable countries by 2020 but have not set out path to reach that objective. "It's important also for the trust in the global governance system that the donor community comes forward and delivers on its promise," Patrick Verkooijen, GCA's chief executive, told Reuters. "That includes China but also ... the United States." (Reporting by Ryan Woo; Editing by Mark Heinrich) |
McKesson Issues Statement on Change Healthcare IPO
IRVING, Texas–(BUSINESS WIRE)–McKesson Corporation (NYSE:MCK) offers the below statement on today’s Change Healthcare initial public offering:
Change Healthcare, Inc., a scaled healthcare information technology company, began trading on the Nasdaq Global Select Market under the trading symbol “CHNG.” McKesson holds the majority ownership stake in Change Healthcare’s operating subsidiary.
“
Congratulations to Change Healthcare on this significant milestone in the company’s history. For McKesson, this is an important next step in our efforts to unlock value for McKesson shareholders from our investment in the Change Healthcare business,” said Brian Tyler, chief executive officer of McKesson.
McKesson expects to exit its investment in Change Healthcare in a tax-efficient manner.
About McKesson Corporation
McKesson Corporation, currently ranked 7thon the FORTUNE 500, is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology. McKesson partners with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare to help provide the right medicines, medical products and healthcare services to the right patients at the right time, safely and cost-effectively. United by our ICARE shared principles, our employees work every day to innovate and deliver opportunities that make our customers and partners more successful — all for the better health of patients. McKesson has been named the “Most Admired Company” in the healthcare wholesaler category by FORTUNE, a “Best Place to Work” by the Human Rights Campaign Foundation, and a topmilitary-friendly companyby Military Friendly. For more information, visitwww.mckesson.com.
Cautionary Statements
Statements in this press release about the potential tax-efficient distribution of McKesson’s interest in the Change Healthcare business constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Those statements involve risks and uncertainties that could cause actual results to differ materially from those contained in those statements. It is not possible to predict or identify all such risks and uncertainties. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are first made. The company undertakes no obligation to publicly update forward-looking statements. We encourage investors to read important risk factors described in the company’s most-recent Form 10-K filed with the Securities and Exchange Commission. Risk factors include, but are not limited to: changes in the U.S. healthcare industry and regulatory environment; the performance of McKesson’s investment in the Change Healthcare business; McKesson’s ability to manage and complete the distribution to shareholders; and new or revised tax legislation or challenges to our tax positions related to any tax-efficient distribution.
Not an offer
This press release is not an offer to sell or a solicitation of an offer to buy any securities.
Contacts
Investors and Financial Media:Holly Weiss972-969-9174Holly.Weiss@McKesson.com
General and Business Media:Kristin Chasen415-983-8974Kristin.Chasen@McKesson.com |
Jalen Rose supports Molly Qerim after LaVar Ball's comment
Jalen Rose defended his wife Molly Qerim following an inappropriate comment LaVar Ball made to Qerim while live on the air. (Photo by Dimitrios Kambouris/Getty Images for Endometriosis Foundation of America ) Since ESPN distanced itself from LaVar Ball after he made an inappropriate comment to host Molly Qerim while live on the air, Qerim has been accused of being oversensitive, vindictive, and even personally getting Ball banned. Qerim’s husband, ESPN analyst and former NBA star Jalen Rose, finally had enough this week. He posted an Instagram live story to share his opinion and clear the air about what transpired between his wife and Ball. Rose started out with the most important thing: Qerim is entitled to her feelings, no matter what anyone else thinks of them. “Regardless of where you stand – you can feel that what he said was inappropriate. You can feel that she overreacted. However you feel, you’re entitled to your opinion. But you know what you’re not allowed to do? Is tell her how to feel.” Since it happened, Rose has tried calling and texting Ball several times (Rose says that he “respects” Ball), but hasn’t gotten any response. And he has zero patience for anyone who accuses him or Qerim of personally getting Ball banned from ESPN. “Molly talks to TMZ, and they ask her a question about, ‘How do you feel about LaVar being banned?’ She clearly said, ‘That’s above my pay grade, I don’t know anything about that.’ Then it graduated to somebody saying that he got banned from ESPN. She and I didn’t send no texts, no emails, no overtures to get anybody banned from ESPN – the company that we work for and don’t own, fools.” Rose doesn’t like the use of the word “banned,” since strictly speaking, that’s not what ESPN did. ESPN said in a statement that it has no plans to have Ball back as an on-air guest in the future. Rose pointed out that Ball will still probably appear in news stories for the network — he’ll be at games watching his son Lonzo play for the New Orleans Pelicans next season, and he’ll be at next year’s NBA draft when his son LaMelo is picked. Rose also defended Qerim from critics alleging that there’s a racial angle to the ordeal. Story continues “Then it went to, ‘Oh Molly, you got a black man banned from ESPN.’ Y’all know she’s married to a black husband, right? She’s covered the NFL, the NBA, college basketball, MMA… she’s been doing this for 15 years. She knows how to navigate. She knows how to take care of herself. Somebody pays her to talk about sports. She’s a vet. So this idea that she woke up that morning and like, ‘Oh, I’m going to see what I can do to try to trap LaVar.’ It didn’t have nothing to do with his race, fools… If she felt some type of way about what he said, then she felt some type of way about what he said. And you know what? I’m riding with her.” Rose has his wife’s back, which is exactly what a good spouse and partner does. More from Yahoo Sports: USWNT needs Alex Morgan to step up vs. France Rapinoe stands ground in cross-Atlantic Trump spat Report: Celtics are the favorite to land Walker Sources: Hill meets with NFL over child abuse charges |
John Delaney: 70% of US would support this climate plan
Former Congressman John Delaney (D-MD) didn’t talk much in thefirst Democratic debate— but duringhis 6.6 minutesof speaking time, he pushed for a carbon tax as a way to fight climate change.
Delaney wants to puta feeon carbon emissions and increase that fee every year. The idea is to encourage investment in renewable, clean energies while reducing greenhouse gas emissions.
“All the economists agree that a carbon pricing mechanism works. You just have to do it right,” Delaney said in the debate. “I can get that passed my first year as president with a coalition of every Democrat in the Congress and the Republicans who live in coastal states.”
While notalleconomists agree, Adele Morris, a climate and policy expert at the Brookings Institute, says there is a broad consensus. Last year, aU.N. report saidputting a price on carbon would help in the fight against climate change.
“It’s just so efficient at inducing all the different kinds of ways to reduce emissions,” said Morris.
The idea of a carbon tax has some private-sector support. Last month, more than70 companies,including PepsiCo (PEP) Nike (NKE) and Microsoft (MSFT) were on Capitol Hillurging lawmakersto tax carbon emissions.
But a carbon tax is a tough political sell.
Voters in Washington staterejectedwhat would have been the first carbon tax in the United States. TheYellow Vestmovement in France began as a protest against fuel tax increases.
Australia put acarbon pricing programin place several years ago, but repealed it after facing intense backlash. It now has a program called a “safeguard mechanism,” which requires large polluters to buy carbon credits if they exceed a pollution threshold.
According to the World Bank, more than40governments have some sort of carbon pricing initiative.
In the United States, the Republican party hasn’t taken significant action on climate change. Critics argue a carbon tax could lead to job losses and could disproportionately hurt the poor.
Delaney acknowledged those concerns, but argues his plan is different because the money would be given back to the American people.
“The carbon tax is a little regressive — meaning it hurts lower-income people more than wealthy people, so when you pay the dividend you’ve got to compensate for that,” said Delaney.
Under his plan, Delaney said every American would collect a dividend from the carbon tax. He says the amount of the payment would vary based on income.
“It goes out one pocket and in the other, but we’re creating incentives for people to use more renewable energy. I think most Americans would say ‘okay, I get that’,”said Delaney. “If you’re kind of a middle-class American you’ll probably get a little more than you paid in increased energy prices.”
Delaney told Yahoo Finance he knows his proposal won’t make “the extremes” on either side of the aisle happy — but he thinks 70% to 80% of the country will support his plan.
“On the far end of the Republican spectrum, they don’t believe in climate change — the problem. So there’s no point talking to them,” he said. “On the other hand, you have Democrats who basically think people shouldn’t fly in airplanes anymore.”
Critics have slammed aggressive proposals like theGreen New Dealfor being unrealistic —though its supporters say there’snot enough timeleft to stop climate change with amoderate approach.
“I mean all these people are talking about these ideas and you know, dealing with climate change, but I'm like, yeah, but you gotta get something done,” said Delaney.
Morris notes that enacting any climate policy is difficult — not just a carbon tax.
“We really haven't seen any new legislation that broadly aims to reduce emissions across the economy. So I think that the carbon taxes are no more at disadvantage than anything else because, you know, nothing else has happened either,” said Morris. “I think you have to look directly at one party — the Republicans — who have heretofore insisted that climate change either wasn’t a problem, or some version of that.”
During the debate Rep. Tim Ryan was asked how to fund the fight against climate change if a carbon tax isn’t politically possible.
“There is a variety of different ways to pay,” he said. “We talked about different ways of raising revenue. And I think we've got to build our way out of this and grow our way out of this.”
Washington state Gov. Jay Inslee said he would make climate change the top priority as president. Former Rep. Beto O’Rourke (D-TX), former HUD Secretary Julian Castro, Sen. Elizabeth Warren (D-MA) and Sen. Cory Booker (D-NJ) all named climate change as the biggest geopolitical risk facing the United States.
Jessica Smith is a reporter for Yahoo Finance based in Washington, D.C. Follow her on Twitter at@JessicaASmith8.
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USWNT Star Has Surprise Reunion with Her 7-Year-Old Son in France Before Quarterfinal Match
Jessica McDonald has been working hard with the U.S. women’s national team as they continue to dominate the FIFA World Cup. But the star forward, 31, has been away from her 7-year-old son Jeremiah for weeks while she and the team train and play in France to defend their championship title. That all changed on Wednesday when McDonald shared a heartwarming video of her surprise reunion with her child on Twitter. “Welcome to France, son!!! #FWWC2019 #HesHere,” the soccer star captioned the emotional footage which showed him leaping into her arms and the pair embracing after much time apart. In the video, a joyful Jeremiah can be seen proudly repping his mom’s team, wearing a patriotic navy shirt and a red USWNT backpack. RELATED: Soccer Star Ali Krieger Says Trump Is Angered by Women He ‘Cannot Control or Grope’: ‘I Stand with Megan Rapinoe’ Welcome to France, son!!! 🇺🇸🥰 #FWWC2019 #HesHere pic.twitter.com/JYwjbxeMv9 — Jessica McDonald (@J_Mac1422) June 26, 2019 For McDonald, who trained eight months into her pregnancy with Jeremiah, having her son by her side means absolutely everything. “I’m looking forward to him being inspired when he’s older because he’s at an age right now where he’s going to be able to remember these days,” she told FIFA.com . “He doesn’t understand what’s going on, but he’s going to remember it and that is what’s important to me. It’s what I’m playing for.” McDonald added, “I believe one day I will tell him when he’s old enough to understand why I chose the career field that I did and what actually pushed me to where I am today. And I have to tell him the hardships and the easy times that it takes to truly get here. I’ll let him know that, if you want to be successful, it’s not just going to be a straight line – it’s going to be a very crooked road.” The U.S. take on the host country Friday in the quarterfinal match in Paris at approximately 3 p.m. ET. |
Hedge Funds Piled Into This Stock Right Before Its Double Digit Gains
Many investors, including Paul Tudor Jones or Stan Druckenmiller, have beensayingbefore the Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first quarter, most investors recovered all of their Q4 losses as sentiment shifted and optimism dominated the US China trade negotiations. Nevertheless, many of the stocks that delivered strong returns in the first quarter still sport strong fundamentals and their gains were more related to the general market sentiment rather than their individual performance and hedge funds kept their bullish stance. In this article we will find out how hedge fund sentiment to ANI Pharmaceuticals Inc (NASDAQ:ANIP) changed recently.
ANI Pharmaceuticals Inc (NASDAQ:ANIP)shareholders have witnessed an increase in support from the world's most elite money managers lately. Overall hedge fund sentiment towards ANIP hit its all time high at the end of the first quarter. This is usually a bullish signal. We observed this in other stocks like Roku,Control4 Corp, Uniqure,Avalara, Lindblad Expeditions, andDisney.Roku returnedreturned 45%, Control4 Corp returned 40%,Uniqure and Avalara delivereda 30% gain each, andDisney outperformedthe market by 23 percentage points in Q2. Lindblad Expedition investors alsoexperienceda relatively modest 15.2% gain during the same period.
In the 21st century investor’s toolkit there are a large number of gauges stock traders have at their disposal to size up stocks. A pair of the less known gauges are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the best picks of the elite investment managers can outperform the market by a solid margin (see the details here).
We're going to go over the new hedge fund action surrounding ANI Pharmaceuticals Inc (NASDAQ:ANIP).
At Q1's end, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 31% from the fourth quarter of 2018. On the other hand, there were a total of 11 hedge funds with a bullish position in ANIP a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
The largest stake in ANI Pharmaceuticals Inc (NASDAQ:ANIP) was held byMangrove Partners, which reported holding $38.8 million worth of stock at the end of March. It was followed by Renaissance Technologies with a $14.1 million position. Other investors bullish on the company included Consonance Capital Management, Hawk Ridge Management, and Weiss Asset Management.
As one would reasonably expect, some big names have jumped into ANI Pharmaceuticals Inc (NASDAQ:ANIP) headfirst.Hawk Ridge Management, managed by David Brown, initiated the most outsized position in ANI Pharmaceuticals Inc (NASDAQ:ANIP). Hawk Ridge Management had $8.7 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace'sMarshall Wace LLPalso initiated a $0.8 million position during the quarter. The other funds with new positions in the stock are David Harding'sWinton Capital Management, Jeffrey Talpins'sElement Capital Management, and Gavin Saitowitz and Cisco J. del Valle'sSpringbok Capital.
Let's go over hedge fund activity in other stocks similar to ANI Pharmaceuticals Inc (NASDAQ:ANIP). These stocks are Kornit Digital Ltd. (NASDAQ:KRNT), Boot Barn Holdings Inc (NYSE:BOOT), Washington Trust Bancorp, Inc. (NASDAQ:WASH), and OneSpaWorld Holdings Limited (NASDAQ:OSW). This group of stocks' market values match ANIP's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position KRNT,10,42618,-4 BOOT,23,154459,4 WASH,4,25232,-2 OSW,11,80456,-4 Average,12,75691,-1.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $76 million. That figure was $82 million in ANIP's case. Boot Barn Holdings Inc (NYSE:BOOT) is the most popular stock in this table. On the other hand Washington Trust Bancorp, Inc. (NASDAQ:WASH) is the least popular one with only 4 bullish hedge fund positions. ANI Pharmaceuticals Inc (NASDAQ:ANIP) 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 ANIP as the stock returned around 13% so far in Q2 and outperformed the market as well.
Disclosure: None. This article was originally published atInsider Monkey.
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Women's World Cup: How Trump vs. Rapinoe helps USWNT
PARIS — It is an old coaching ploy – in a run-up to a big game, create a storyline, or even a controversy, that shifts media, fan and even player focus off of a subject where you might be vulnerable and onto one where you are strong. By controlling the narrative, you put all the pressure on the broadest of shoulders. Sometimes that even requires the coach becoming the center of attention. In that regard, Donald Trump, who claims to be a “big fan” of the United States women’s national team, may have actually proved to be of great help to the squad ahead of its high-stakes, high-pressure, highly anticipated Women’s World Cup quarterfinal game Friday (3 p.m. ET) against France. On Wednesday, he responded to a months-old-but-recently-resurfaced video of forward Megan Rapinoe declaring she would not go to the White House if invited. Rapinoe has been an outspoken critic of Trump’s policies (although she declined to get into it during the tournament) and for a stretch, knelt during the playing of the national anthem. Trump responded via Twitter that she should focus on winning first (he wrongly thought the video was new) and demanded she act in a way that he believes is respectful to the flag and the White House. Rapinoe responded Thursday by reiterating she wouldn't visit Trump in the White House, although she declined to ramp up the battle so as to remain focused on the game. It was a good, and completely harmless, little kerfuffle. Trump, it seems likely, quickly moved onto to some other battle. Meanwhile, Rapinoe, an unflappable veteran, responded without a care in the world. She didn’t appear fazed by what Trump had tweeted, or will tweet, about her. President Donald Trump's war of words with Megan Rapinoe might actually prove to be helpful to the USWNT. (Associated Press) In the meantime, almost all the discussion heading into the Americans’ biggest game since getting knocked out of the 2016 Olympics has been on this subject – Rapinoe v. Trump. Mostly ignored have been a slew of questions and concerns that might actually rattle the Americans. The at-times shaky goaltending of Alyssa Naeher in the round of 16 victory against Spain. The offense’s lack of a shot on net, let alone a goal, during the run of play in that same game. The health of Alex Morgan. Lineup rotations and playing time, which remain in flux due to the Americans’ tremendous depth of talent. The fact the U.S. hasn’t defeated France in three years, holding an 0-2-1 record against them, including a 3-0 defeat in January. The heat of Paris this week, which should extend to the game, where the French may enjoy an intimidating home-crowd advantage (despite the sizable amount of traveling American fans). The general pressure that comes from being a USWNT player, where total victory is the only acceptable result. Story continues And so on. Virtually every less-than-desirable storyline and discussion point that could flare up has been ignored. Coach Jill Ellis likes to describe the team operating in “a bubble” and ignoring outside noise, but some of that always breaks through. In this case, she might not have been able to design a better week of coverage. Megan Rapinoe scrapping with Donald Trump? Who cares? It’s better than lots of chatter about whether Carli Lloyd or Christian Press or Mallory Pugh should get more playing time or why the midfield failed to connect with Alex Morgan against Spain or whatever Hope Solo most recently criticized the team about. And that’s thanks to Trump. Neither Rapinoe nor Ellis sought to make this an issue this week. It was just an old video that sprung back up. But when it became news, they embraced it. “We all support Megan,” Ellis said. “She knows that. We have each other’s back in there.” Call him the Motivator-in-Chief. Megan Rapinoe (right) and her public feud with President Donald Trump have helped Jill Ellis and the USWNT focus on France. (Reuters) Like Trump, Rapinoe has a big, bold and extremely self-confident personality. It’s unlikely any of her teammates worried that she was going to be emotionally or mentally fazed by him or his supporters. If anything, it might help her. Maybe none of this matters in the game. Maybe it does. It would be impossible to quantify either way. The U.S. could win Friday without Trump’s tweets playing a role. Or they could lose. Getting consistent scoring chances against a formidable French defense will be a bigger factor. But coaches love to minimize distractions and Ellis is a coach. There has to be a reason media access, especially to players, is so limited during the tournament. And so, for that, Trump may have proven to be an unexpected asset. By putting all the attention on a single player – a player that can easily handle it – the oxygen was sucked away from just about everything else, allowing everyone else to focus on preparation. “For our players, there is only one purpose, one mission why we’re here,” Ellis said. “Comments, media, whatever, it’s always been something we can block out pretty easily.” It’s even easier when the “comments, media, whatever” aren’t about unproven goalies or playing time or the pressure of expectations. “At the end of the day, on the training grounds, in the meeting rooms, [our] focus has been incredible,” Ellis said. It may not be how Jill Ellis expected to achieve such a thing this week, but here’s guessing, like any great coach in any sport, she’ll take it. More from Yahoo Sports: USWNT needs Alex Morgan to step up vs. France Rapinoe stands ground in cross-Atlantic Trump spat Report: Celtics are the favorite to land Walker Sources: Hill meets with NFL over child abuse charges |
CalAmp: Fiscal 1Q Earnings Snapshot
IRVINE, Calif. (AP) _ CalAmp Corp. (CAMP) on Thursday reported a fiscal first-quarter loss of $8.7 million, after reporting a profit in the same period a year earlier. The Irvine, California-based company said it had a loss of 26 cents per share. Earnings, adjusted for non-recurring costs and stock option expense, came to 12 cents per share. The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share. The wireless communications company posted revenue of $89.1 million in the period, also exceeding Street forecasts. Six analysts surveyed by Zacks expected $87 million. For the current quarter ending in September, CalAmp expects its per-share earnings to range from 8 cents to 14 cents. The company said it expects revenue in the range of $89.5 million to $94.5 million for the fiscal second quarter. Analysts surveyed by Zacks had expected revenue of $91.6 million. CalAmp shares have declined 20% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $10.42, a drop of 51% in the last 12 months. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CAMP at https://www.zacks.com/ap/CAMP |
Jefferies Pours Some Fizz On National Beverage's Earnings
LaCroix parent companyNational Beverage Corp.(NASDAQ:FIZZ) on Wednesday reportedfiscal fourth-quarter results, which prompted Jefferies to remain bearish on the stock.
The Analyst
Jefferies'Kevin Grundymaintains an Underperform rating on National Beverage with a price target lowered from $34 to $33.
The Thesis
National Beverage reported fourth quarter sales of $239.9 million, which beat Street's expectations but Grundy said gross margins were "much worse" than expected at 35.3% versus expectations of 38.3%. The company realized higher input costs and volume de-leverage in the quarter, which also prompted a notable operating income and earnings per share miss.
Meanwhile, third-party data from Nielsen points to a 9.8% decline in National Beverage's sales for the four-week period ending June 15. Grundy said the data also implies market share losses of 470 basis points over the past four weeks, 470 basis points over the past 12 weeks and 240 basis points over the past year.
By contrast,PepsiCo's(NASDAQ:PEP) LaCroix competitor Bubly gained market share over the same periods. Grundy said PepsiCo CEO Ramon Laguarta is "very focused" on supporting its sparkling water brand moving forward.
Growing competition in the sparkling water space is evident and the LaCroix will need higher levels of investments to stabilize, according to Grundy. Regardless, there is unlikely to be any quick, cheap, or even certain turnaround plan that warrants a cautious stance on National Beverage's margin recovery and top-line expansion.
Price Action
National Beverage closed Thursday higher by 4.3% at $44.06 per share.
View more earnings on FIZZ
Related Links:
Millennial Research Firm Says Young Consumers Still Love LaCroix
National Beverage Trades Lower As Company Faces More Questions Over LaCroix Ingredients
Photo credit:QuoteCatalog, Flickr
Latest Ratings for FIZZ
[{"Jun 2019": "Jun 2019", "": "Buy", "Maintains": "Downgrades", "Underperform": "Hold"}, {"Jun 2019": "Jun 2019", "": "Sell", "Maintains": "Upgrades", "Underperform": "Neutral"}]
View More Analyst Ratings for FIZZView the Latest Analyst Ratings
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Smooth Rock Signs Option to Purchase Agreement on the Chucker Project
Vancouver, British Columbia--(Newsfile Corp. - June 27, 2019) -Smooth Rock Ventures Corp.(TSXV: SOCK)("Smooth Rock" or the "Company") is pleased to announce it has signed an Option to Purchase Agreement ("the Agreement") to acquire a 100% undivided interest in 28 unpatented mining claims in the Chucker Project. The Chucker Project is located in the Silver Star Mining District, within Mineral County, Nevada, in the Walker Lane gold trend.
The Chucker Project consists of 28 unpatented mining claims with a combined area of 226 hectares (560 acres) that covers numerous prospect pits and past producing small scale high grade gold mines. Several altered and mineralized shear zones with metal rich quartz veins are exposed on the surface.
The property also contains a surface exposure of the range front fault which was historically mined from a shaft. The Chucker Project is located within the intersection of the Walker Lane shear zone and associated Mina Deflection of the Walker Lane. This combination creates major fault zones or conduits for ascending mineralized solutions. From observation and historic assay values, gold, silver, lead, zinc and copper are found in amounts that demonstrate significant potential for exploration. There is no evidence of modern-day exploration or drilling on the property.
The Chucker Project is located 60 miles southeast of Hawthorne, Nevada or 5 miles southwest of Marietta, Nevada, easily accessible via state and secondary roads with year-round access. The Chucker Project is located in close proximity to past producing mines such as Marietta Mines, Moho, and Camp Douglas. The core portion of the property has been held by private interests for over 40 years.
Smooth Rock can purchase an undivided one hundred percent (100%) undivided interest in the Chucker Property as follows: (i) $10,000.00 USD (paid) upon signing of the option to purchase agreement. (ii) the issuance of 2,000,000 common shares of the Company within 5 business days upon receiving TSX Venture Exchange Approval. (iii) On or before one (1) year from the date of the signing of the Agreement a final payment of $10,000.00 USD.
The Chucker Property is subject to an 1.5% Gross Production Royalty payable to the property vendor, of which one-half (.5%) of a percent may be purchased from the Vendor at any time prior to Commencement of Commercial Production for a cash payment of $200,000.00.
The Company has begun Phase I of the Chucker exploration program which will consist of reconnaissance prospecting, geological mapping, surface trenching, sampling and relocating historical workings. This reconnaissance program will provide accurate modern data to assist in the planning of the phase II drill program. Phase I is estimated to last for three to four weeks, with phase II expected to begin following the compilation of the phase I results, later in 2019, pending drilling permits.
The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by E. Gauthier, geol., Eng (OIQ), a consultant of the Company, and an independent Qualified Person as defined by NI 43-101, Standards of Disclosure for Mineral Projects.
ON BEHALF OF THE BOARD
"Jeffrey Cocks"
Jeffrey CocksPresident & CEO
FOR FURTHER INFORMATION PLEASE CONTACT: Smooth Rock Ventures Corp.(TEL)- (888) 909-5548, (FAX)-(888) 909-1033Email:info@smoothrockventures.comWebsite:www.smoothrockventures.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45958 |
Hedge Funds Have Never Been This Bullish On TIER REIT, Inc. (TIER)
World-class money managers like Ken Griffin and Barry Rosenstein only invest their wealthy clients' money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It's not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It's also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them.
IsTIER REIT, Inc. (NYSE:TIER)a first-rate investment today? The best stock pickers are taking a bullish view. The number of bullish hedge fund bets moved up by 5 recently. Our calculations also showed that TIER 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' 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.
We're going to view the key hedge fund action regarding TIER REIT, Inc. (NYSE:TIER).
At the end of the first quarter, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 71% from the fourth quarter of 2018. By comparison, 5 hedge funds held shares or bullish call options in TIER a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
More specifically,Renaissance Technologieswas the largest shareholder of TIER REIT, Inc. (NYSE:TIER), with a stake worth $48.7 million reported as of the end of March. Trailing Renaissance Technologies was Water Island Capital, which amassed a stake valued at $21.3 million. Alpine Associates, Waterfront Capital Partners, and Carlson 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 been driving this bullishness.Water Island Capital, managed by John Orrico, created the largest position in TIER REIT, Inc. (NYSE:TIER). Water Island Capital had $21.3 million invested in the company at the end of the quarter. Robert Emil Zoellner'sAlpine Associatesalso initiated a $14 million position during the quarter. The other funds with new positions in the stock are Eduardo Abush'sWaterfront Capital Partners, Clint Carlson'sCarlson Capital, and Ken Griffin'sCitadel Investment Group.
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as TIER REIT, Inc. (NYSE:TIER) but similarly valued. We will take a look at Knowles Corp (NYSE:KN), Marcus & Millichap Inc (NYSE:MMI), Arch Coal, Inc. (NYSE:ARCH), and Mueller Water Products, Inc. (NYSE:MWA). All of these stocks' market caps match TIER's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position KN,17,223503,-7 MMI,12,132716,-1 ARCH,28,326749,3 MWA,18,211351,-6 Average,18.75,223580,-2.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $224 million. That figure was $127 million in TIER's case. Arch Coal, Inc. (NYSE:ARCH) is the most popular stock in this table. On the other hand Marcus & Millichap Inc (NYSE:MMI) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks TIER REIT, Inc. (NYSE:TIER) is even less popular than MMI. Hedge funds dodged a bullet by taking a bearish stance towards TIER. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately TIER wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); TIER investors were disappointed as the stock returned 0.8% during the same time frame 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 the second quarter.
Disclosure: None. This article was originally published atInsider Monkey.
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Is Neogen Corporation (NEOG) A Good Stock To Buy?
Is Neogen Corporation (NASDAQ:NEOG) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.
IsNeogen Corporation (NASDAQ:NEOG)a splendid stock to buy now? Money managers are becoming less hopeful. The number of long hedge fund positions went down by 2 lately. Our calculations also showed that NEOG 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 look at the recent hedge fund action surrounding Neogen Corporation (NASDAQ:NEOG).
At Q1's end, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -14% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards NEOG over the last 15 quarters. With hedge funds' capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
The largest stake in Neogen Corporation (NASDAQ:NEOG) was held byD E Shaw, which reported holding $11.4 million worth of stock at the end of March. It was followed by Marshall Wace LLP with a $10.3 million position. Other investors bullish on the company included Citadel Investment Group, Royce & Associates, and AQR Capital Management.
Due to the fact that Neogen Corporation (NASDAQ:NEOG) has experienced falling interest from the entirety of the hedge funds we track, we can see that there lies a certain "tier" of fund managers that elected to cut their entire stakes in the third quarter. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capitalsold off the biggest investment of all the hedgies monitored by Insider Monkey, totaling close to $2.7 million in stock. Jim Simons's fund,Renaissance Technologies, also said goodbye to its stock, about $1.7 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 2 funds in the third quarter.
Let's go over hedge fund activity in other stocks similar to Neogen Corporation (NASDAQ:NEOG). We will take a look at Corelogic Inc (NYSE:CLGX), J&J Snack Foods Corp. (NASDAQ:JJSF), Global Blood Therapeutics Inc (NASDAQ:GBT), and Cedar Fair, L.P. (NYSE:FUN). This group of stocks' market caps are closest to NEOG's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CLGX,17,310733,-2 JJSF,14,95789,4 GBT,26,730224,1 FUN,8,56848,-2 Average,16.25,298399,0.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $298 million. That figure was $33 million in NEOG's case. Global Blood Therapeutics Inc (NASDAQ:GBT) is the most popular stock in this table. On the other hand Cedar Fair, L.P. (NYSE:FUN) is the least popular one with only 8 bullish hedge fund positions. Neogen Corporation (NASDAQ:NEOG) is not the least popular stock in this group but hedge fund interest is still below 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. A small number of hedge funds were also right about betting on NEOG as the stock returned 9.8% during the same time frame and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published atInsider Monkey.
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Carnival Executives Explain Latest Outlook Downgrade
Carnival(NYSE: CCL)investors knew fiscal 2019 would likely bring weaker operating results than they've seen in the past few years. Yet they were still surprised by the scope of the slowdown that the cruise ship giant recently announced. The company just lowered its earnings outlook for the second straight quarter due to several negative trends, including a few that threaten to weigh down returns into the start of 2020.
In aconference call with Wall Street analysts, CEO Arnold Donald and his team sought to communicate to investors the fact that they're focused on quickly returning Carnival to strong growth. Below we'll look at a few highlights from that discussion.
Image source: Getty Images.
We acknowledge that we would not deliver for this year the growth rates in earnings and returns that our business is capable of and that we are committed to deliver over time, and we are disappointed in the reduction to that guidance.-- Donald
Carnival'slowered outlooknow sees the company posting flat net revenue yields compared to the 1% uptick management had predicted last quarter and the 4% gain it posted in fiscal 2018. Until recently, executives had believed the sluggish sales growth would support a double-digit earnings increase consistent with their annual goals. But because of several headwinds, including weak booking trends in parts of Europe and theloss of its Cuban destinationsfrom the U.S., core earnings are now on pace to rise just 5% compared to 12% last year.
"We had anticipated better pricing and booking volumes during the second quarter," CFO David Bernstein explained while citing weak demand in Southern Europe.
We are now positioning, beginning in 2020, to take advantage of the natural cost containment that comes from leveraging the increased capacity from newbuilds [new ship launches]. And we've also initiated a zero-based planning pilot for our 2020 planning process. Now this is in addition to our efforts to leverage our industry-leading scale, estimated at $75 million or more annually, and the greater economies of scale afforded by our higher capacity growth.-- Donald
Carnival is shifting its focus toward cutting costs and maximizing efficiency during this period of sluggish demand. The outlook is bright on this score, thanks to several new ships that have come on line in recent years. It also helps that sailings are still being fully booked, just at weaker prices than expected.
That said, management cautioned investors not to expect a change in Carnival's wider capital plans. "We will not be afraid to spend money to invest, especially if we have an opportunity to drive demand," Donald explained. For example, Carnival is preparing to boost advertising over the next two quarters to help secure full bookings for 2020.
Newbuilds are a very important part of the path to double-digit return on invested capital and given the inherent cost efficiencies gained by the greater scale and fuel efficiencies of our new ships. Now we've not taken delivery of a new ship in Europe for Costa in over five years, and that ship is still among the highest-returning ships in our entire fleet.-- Donald
Executives say Smerelda, its first new Costa-brand ship launch in five years, is attracting strong early bookings ahead of its maiden voyage in November. It's a good example of how Carnival can continue to boost capacity, increase fuel efficiency, and generate excitement for sailings just as it has through rough demand patches over the last several years.
Short-term challenges have knocked the company from its intended earnings gains in 2019, management said, but that doesn't change the overall positive dynamics impacting Carnival's business. "We operate in an industry that is capacity constrained," Donald said, "[and] the ships are full, so are the shipyards, and the mobility of the assets allows us to optimize the demand environment over time."
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Uber Boat Launch In Nigeria Suggests Water Taxis May Be Next Big Thing In Mobility Services
Uber Technologies Inc(NYSE:UBER) is in talks with the Lagos state government and regulatory authorities to start Uber Boats services on its waterways, Bloomberg reported today.
Uber's water service division,which started operating in Mumbai this past winter, points to broader interest in using the world's waterways as a means to alleviate congestion on crowded roadways.
Lagos, population 22 million, is known for mind-numbing traffic that leaves commuters stuck for hours in bumper-to-bumper traffic. Public transit is virtually non-existent.
A 2018 report by the Boston Consulting Group, commissioned by Uber, estimated that Mumbai, New Delhi, Bangalore and Kolkata lose more than $22 billion yearly because of traffic jams.
Uber's Mumbai boat service is not available to individual riders. Instead, users must reserve – via app, of course – full boats, at $80 for a 6- to 8-seater speedboat and $132 for a 10-person Uber Boat XL.
Uber did not immediately respond to requests for comment about the company's plans to expand water taxi service in the United States. Apop-up service in Miamiis no longer available.
But as the ride-hailing-giant's global service moves full steam ahead, public commuter ferry services are expanding in the United States.
Seattle, San Francisco and other West Coast cities have dramatically expanded water taxi service over the past few years.
In addition to the Lagos water service negotiation, Uber is also in talks with regulators in Ivory Coast and Senegal regarding the possible launch of ride-hailing services in those West African countries, Bloomberg reported.
Image Sourced by Pixabay
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Here is What Hedge Funds Think About MakeMyTrip Limited (MMYT)
A market surge in the first quarter, spurred by easing global macroeconomic concerns and Powell's pivot ended up having a positive impact on the markets and many hedge funds as a result. The stocks of smaller companies which were especially hard hit during the fourth quarter slightly outperformed the market during the first quarter. Unfortunately, Trump is unpredictable and volatility returned in the second quarter and smaller-cap stocks went back to selling off. We finished compiling the latest 13F filings to get an idea about what hedge funds are thinking about the overall market as well as individual stocks. In this article we will study the hedge fund sentiment to see how those concerns affected their ownership of MakeMyTrip Limited (NASDAQ:MMYT) during the quarter.
MakeMyTrip Limited (NASDAQ:MMYT)has experienced an increase in support from the world's most elite money managers recently.MMYTwas in 12 hedge funds' portfolios at the end of the first quarter of 2019. There were 11 hedge funds in our database with MMYT positions at the end of the previous quarter. Our calculations also showed that MMYT isn't among the30 most popular stocks among hedge funds.
According to most shareholders, hedge funds are assumed to be underperforming, old investment tools of the past. While there are greater than 8000 funds trading at the moment, We choose to focus on the masters of this group, approximately 750 funds. These hedge fund managers control the majority of all hedge funds' total capital, and by following their highest performing investments, Insider Monkey has revealed a number of investment strategies that have historically defeated the broader indices. Insider Monkey's flagship hedge fund strategy beat the S&P 500 index by around 5 percentage points per annum since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year).
[caption id="attachment_758500" align="aligncenter" width="450"]
Daniel Gold of QVT Financial[/caption]
We're going to go over the new hedge fund action regarding MakeMyTrip Limited (NASDAQ:MMYT).
At the end of the first quarter, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 9% from the previous quarter. The graph below displays the number of hedge funds with bullish position in MMYT over the last 15 quarters. With the smart money's capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were adding to their stakes considerably (or already accumulated large positions).
More specifically,GMT Capitalwas the largest shareholder of MakeMyTrip Limited (NASDAQ:MMYT), with a stake worth $25 million reported as of the end of March. Trailing GMT Capital was QVT Financial, which amassed a stake valued at $16.5 million. Driehaus Capital, Balyasny Asset Management, and Symmetry Peak Management were also very fond of the stock, giving the stock large weights in their portfolios.
As one would reasonably expect, key hedge funds were leading the bulls' herd.Driehaus Capital, managed by Richard Driehaus, initiated the largest position in MakeMyTrip Limited (NASDAQ:MMYT). Driehaus Capital had $14.5 million invested in the company at the end of the quarter. Dmitry Balyasny'sBalyasny Asset Managementalso initiated a $4.1 million position during the quarter. The other funds with new positions in the stock are Frank Slattery'sSymmetry Peak Management, Frank Slattery'sSymmetry Peak Management, and Gavin Saitowitz and Cisco J. del Valle'sSpringbok Capital.
Let's check out hedge fund activity in other stocks similar to MakeMyTrip Limited (NASDAQ:MMYT). These stocks are Range Resources Corp. (NYSE:RRC), The Descartes Systems Group Inc (NASDAQ:DSGX), BancorpSouth Bank (NYSE:BXS), and EnerSys (NYSE:ENS). All of these stocks' market caps match MMYT's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RRC,31,886310,0 DSGX,10,80866,-2 BXS,9,63199,0 ENS,20,83819,-2 Average,17.5,278549,-1 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 17.5 hedge funds with bullish positions and the average amount invested in these stocks was $279 million. That figure was $70 million in MMYT's case. Range Resources Corp. (NYSE:RRC) is the most popular stock in this table. On the other hand BancorpSouth Bank (NYSE:BXS) is the least popular one with only 9 bullish hedge fund positions. MakeMyTrip Limited (NASDAQ:MMYT) 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 MMYT wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); MMYT investors were disappointed as the stock returned -6.1% 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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Is Calavo Growers, Inc. (CVGW) A Good Stock To Buy?
Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips or bumps on the charts, usually don't make them change their opinion towards a company. This time it may be different. During the fourth quarter of 2018 we observed increased volatility and small-cap stocks underperformed the market. Things completely reversed during the first quarter. Hedge fund investor letters indicated that they are cutting their overall exposure, closing out some position and doubling down on others. Let’s take a look at the hedge fund sentiment towards Calavo Growers, Inc. (NASDAQ:CVGW) to find out whether it was one of their high conviction long-term ideas.
IsCalavo Growers, Inc. (NASDAQ:CVGW)a splendid investment now? Prominent investors are in a pessimistic mood. The number of bullish hedge fund bets dropped by 2 recently. Our calculations also showed that CVGW 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 peek at the key hedge fund action surrounding Calavo Growers, Inc. (NASDAQ:CVGW).
At the end of the first quarter, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -14% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards CVGW over the last 15 quarters. With hedgies' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
The largest stake in Calavo Growers, Inc. (NASDAQ:CVGW) was held byCardinal Capital, which reported holding $23.9 million worth of stock at the end of March. It was followed by Renaissance Technologies with a $12.4 million position. Other investors bullish on the company included Millennium Management, Citadel Investment Group, and Harvest Capital Strategies.
Judging by the fact that Calavo Growers, Inc. (NASDAQ:CVGW) has experienced declining sentiment from the smart money, we can see that there lies a certain "tier" of money managers that decided to sell off their positions entirely in the third quarter. Intriguingly, Richard Driehaus'sDriehaus Capitaldumped the biggest stake of the 700 funds watched by Insider Monkey, valued at about $5.2 million in stock, and Paul Tudor Jones's Tudor Investment Corp was right behind this move, as the fund said goodbye to about $1 million worth. These moves are interesting, as total hedge fund interest was cut by 2 funds in the third quarter.
Let's check out hedge fund activity in other stocks similar to Calavo Growers, Inc. (NASDAQ:CVGW). We will take a look at Advanced Drainage Systems, Inc. (NYSE:WMS), Heartland Financial USA Inc (NASDAQ:HTLF), Ship Finance International Limited (NYSE:SFL), and Kulicke and Soffa Industries Inc. (NASDAQ:KLIC). This group of stocks' market valuations are similar to CVGW's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WMS,17,273479,0 HTLF,8,24084,1 SFL,6,35658,-6 KLIC,17,199631,-2 Average,12,133213,-1.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $133 million. That figure was $47 million in CVGW's case. Advanced Drainage Systems, Inc. (NYSE:WMS) is the most popular stock in this table. On the other hand Ship Finance International Limited (NYSE:SFL) is the least popular one with only 6 bullish hedge fund positions. Calavo Growers, Inc. (NASDAQ:CVGW) is not the least popular stock in this group but hedge fund interest is still below 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. A small number of hedge funds were also right about betting on CVGW as the stock returned 15.9% during the same time frame and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published atInsider Monkey.
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Here is What Hedge Funds Think About Transenterix Inc (TRXC)
Reputable billionaire investors such as Jim Simons, Cliff Asness and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won't accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.
Transenterix Inc (NYSEMKT:TRXC)has seen an increase in enthusiasm from smart money lately. Our calculations also showed that TRXC 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 look at the key hedge fund action regarding Transenterix Inc (NYSEMKT:TRXC).
Heading into the second quarter of 2019, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 63% from the fourth quarter of 2018. On the other hand, there were a total of 11 hedge funds with a bullish position in TRXC a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Transenterix Inc (NYSEMKT:TRXC) was held byAisling Capital, which reported holding $5.7 million worth of stock at the end of March. It was followed by Masters Capital Management with a $3.4 million position. Other investors bullish on the company included Citadel Investment Group, OZ Management, and Two Sigma Advisors.
As industrywide interest jumped, key money managers have been driving this bullishness.Winton Capital Management, managed by David Harding, created the largest position in Transenterix Inc (NYSEMKT:TRXC). Winton Capital Management had $0.1 million invested in the company at the end of the quarter. Israel Englander'sMillennium Managementalso initiated a $0.1 million position during the quarter. The other funds with new positions in the stock are Joel Greenblatt'sGotham Asset Management, D. E. Shaw'sD E Shaw, and Michael Platt and William Reeves'sBlueCrest Capital Mgmt..
Let's now take a look at hedge fund activity in other stocks similar to Transenterix Inc (NYSEMKT:TRXC). These stocks are pdvWireless Inc (NASDAQ:PDVW), McEwen Mining Inc (NYSE:MUX), U.S. Well Services, Inc. (NASDAQ:USWS), and First Financial Corp (NASDAQ:THFF). This group of stocks' market values resemble TRXC's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PDVW,13,252859,1 MUX,5,4852,0 USWS,13,42384,-1 THFF,7,12875,2 Average,9.5,78243,0.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 9.5 hedge funds with bullish positions and the average amount invested in these stocks was $78 million. That figure was $11 million in TRXC's case. pdvWireless Inc (NASDAQ:PDVW) is the most popular stock in this table. On the other hand McEwen Mining Inc (NYSE:MUX) is the least popular one with only 5 bullish hedge fund positions. Transenterix Inc (NYSEMKT:TRXC) 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 TRXC wasn't nearly as popular as these 20 stocks and hedge funds that were betting on TRXC were disappointed as the stock returned -44.1% 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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Here’s What Hedge Funds Think About Franks International NV (FI)
Legendary investors such as Jeffrey Talpins and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don't publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That's why we analyze the activity of those elite funds in these small-cap stocks. In the following paragraphs, we analyze Franks International NV (NYSE:FI) from the perspective of those elite funds.
Hedge fund interest inFranks International NV (NYSE:FI)shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare FI to other stocks including IMAX Corporation (NYSE:IMAX), Central Puerto S.A. (NYSE:CEPU), and Aimmune Therapeutics Inc (NASDAQ:AIMT) to get a better sense of its popularity.
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 analyze the recent hedge fund action surrounding Franks International NV (NYSE:FI).
At the end of the first quarter, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in FI over the last 15 quarters. With the smart money's sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey,First Pacific Advisors LLC, managed by Robert Rodriguez and Steven Romick, holds the biggest position in Franks International NV (NYSE:FI). First Pacific Advisors LLC has a $10 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Phill Gross and Robert Atchinson ofAdage Capital Management, with a $6.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other members of the smart money with similar optimism include D. E. Shaw'sD E Shaw, Ken Griffin'sCitadel Investment Groupand Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capital.
Judging by the fact that Franks International NV (NYSE:FI) has faced bearish sentiment from the aggregate hedge fund industry, logic holds that there were a few money managers that decided to sell off their positions entirely by the end of the third quarter. Interestingly, Benjamin A. Smith'sLaurion Capital Managementsold off the biggest stake of all the hedgies tracked by Insider Monkey, totaling close to $1.3 million in stock. Chuck Royce's fund,Royce & Associates, also sold off its stock, about $0.6 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Franks International NV (NYSE:FI) but similarly valued. These stocks are IMAX Corporation (NYSE:IMAX), Central Puerto S.A. (NYSE:CEPU), Aimmune Therapeutics Inc (NASDAQ:AIMT), and Ambarella Inc (NASDAQ:AMBA). This group of stocks' market valuations resemble FI's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position IMAX,15,40733,1 CEPU,12,39045,4 AIMT,15,202754,-1 AMBA,19,100486,5 Average,15.25,95755,2.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $24 million in FI's case. Ambarella Inc (NASDAQ:AMBA) is the most popular stock in this table. On the other hand Central Puerto S.A. (NYSE:CEPU) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Franks International NV (NYSE:FI) is even less popular than CEPU. Hedge funds dodged a bullet by taking a bearish stance towards FI. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately FI wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); FI investors were disappointed as the stock returned 1.3% during the same time frame 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 the second quarter.
Disclosure: None. This article was originally published atInsider Monkey.
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Regulatory Updates from Health Canada and US FDA
TORONTO, ON / ACCESSWIRE / June 27, 2019 /Theralase®Technologies Inc. ("Theralase" or "Company") (TSXV: TLT) (OTCQB: TLTFF), a clinical stage pharmaceutical company dedicated to the research and development of light activated Photo Dynamic Compounds ("PDC") and their associated drug formulations intended to safely and effectively destroy various cancers, announced today that the Company has completed a successful Pre-Investigational New Drug("IND")meeting with the US Food and Drug Administration("FDA"). In addition, Health Canada approved the amended Investigational Testing Application ("ITA") for its Phase II Non-Muscle Invasive Bladder Cancer ("NMIBC") clinical study ("Phase II Study").
Pre-IND Meeting
The Company completed a Pre-IND meeting with the FDA and it was confirmed that the Company's design of the Phase II ACT-NMIBC clinical study met FDA Guidance for Industry dated February 2018 on "BCG-Unresponsive Nonmuscle Invasive Bladder Cancer: Developing Drugs and Biologics for Treatment". The guideline states that "In BCG-unresponsive NMIBC, a single-arm clinical trial with complete response rate and duration of response as the primary endpoint can provide primary evidence of effectiveness to support a marketing application."1
Shawn Shirazi, Ph.D., CEO - Drug Division, Theralase stated that "We can now proceed with completing and filing an IND application with request for fast track designation, which pending approval, would allow the Company to expeditiously and effectively extend our clinical study into the US, to qualify and onboard clinical sites. In addition, the Company is continuing to qualify Canadian sites and working towards the European Medicines Agency approval, to qualify and onboard European clinical sites for a total of approximately 20 clinical sites.
Amended ITA
The amended ITA was submitted to Health Canada to update the current ITA, for an optimized design of the TLC-3200 medical laser system ("Study Device").
The Study Device optimizations, include:
1. A more powerful laser engine (reduces patient treatment times)
2. Higher precision and repeatability in laser light detection (higher patient efficacy)
3. Increased robustness in laser power capacity and operator handling (higher patient safety)
4. Reduced physical size allowing for use of a flexible cystoscope (higher patient safety)
5. An ability to detect laser emitter movement during the Study Procedure (higher patient safety)
6. An optimized graphical user interface and system feedback control to allow the principal investigator to operate an "on-off" operation to deliver an effective Study II treatment
Kipton Lade, B.Sc, M.Sc. MBA, CEO - Device Division, Theralase stated that, "Approval of the amended ITA and CTA allows our clinical study sites to update their Research Ethics Board ("REB") approvals to utilize the optimized Study Device. The optimized Study Device allows for shorter treatment times, increased efficacy and increased patient safety. We hope that these optimizations translate into a successful completion of the Phase II clinical study for the Company and potentially in the future allowing patient's to be treated in a non-operating room environment."
About Theralase®Technologies Inc.
Theralase®is a clinical stage pharmaceutical company dedicated to the research and development of light activated Photo Dynamic Compounds and their associated drug formulations intended to safely and effectively destroy various cancers.
1"BCG-Unresponsive Nonmuscle Invasive Bladder Cancer: Developing Drugs and Biologics for Treatment - Guidance for Industry" Dated: February 2018
Additional information is available atwww.theralase.comandwww.sedar.com
This news release contains "forward-looking statements" which reflect the current expectations of management of the Company's future growth, results of operations, performance and business prospects and opportunities. Such statements include, but are not limited to, statements regarding the Company's proposed development plans with respect to Photo Dynamic Compounds and their drug formulations. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "potential for" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions including with respect to the ability of the Company to: adequately fund, secure the requisite regulatory approvals to commence and successfully complete a Phase II NMIBC clinical study in a timely fashion and implement its development plans. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements; including, without limitation, those listed in the filings made by the Company with the Canadian securities regulatory authorities (which may be viewed at www.sedar.com). Should one or more of these risks or uncertainties materialize or should assumptions underlying the forward looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this news release. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in the press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. The Company disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise except as required by law. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchanges) accepts responsibility for the adequacy or accuracy of this release.
For More Information:
1.866.THE.LASE (843-5273) x304416.699.LASE (5273) x304Amelia Tudo, Investor Relations Coordinatoratudo@theralase.comwww.theralase.com
SOURCE:Theralase Technologies Inc.
View source version on accesswire.com:https://www.accesswire.com/550186/Regulatory-Updates-from-Health-Canada-and-US-FDA |
Here’s What Hedge Funds Think About Advanced Disposal Services, Inc. (ADSW)
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 Advanced Disposal Services, Inc. (NYSE:ADSW).
Advanced Disposal Services, Inc. (NYSE:ADSW)was in 12 hedge funds' portfolios at the end of the first quarter of 2019. ADSW has experienced a decrease in hedge fund sentiment of late. There were 15 hedge funds in our database with ADSW positions at the end of the previous quarter. Our calculations also showed that ADSW 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.
We're going to take a glance at the new hedge fund action regarding Advanced Disposal Services, Inc. (NYSE:ADSW).
At the end of the first quarter, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of -20% from the fourth quarter of 2018. On the other hand, there were a total of 18 hedge funds with a bullish position in ADSW a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
The largest stake in Advanced Disposal Services, Inc. (NYSE:ADSW) was held byMillennium Management, which reported holding $45.1 million worth of stock at the end of March. It was followed by Renaissance Technologies with a $37.3 million position. Other investors bullish on the company included D E Shaw, Two Sigma Advisors, and GLG Partners.
Judging by the fact that Advanced Disposal Services, Inc. (NYSE:ADSW) has experienced bearish sentiment from the aggregate hedge fund industry, we can see that there is a sect of hedgies who were dropping their full holdings heading into Q3. It's worth mentioning that Jos Shaver'sElectron Capital Partnerssaid goodbye to the biggest stake of the "upper crust" of funds followed by Insider Monkey, valued at about $10.5 million in stock. Richard Chilton's fund,Chilton Investment Company, also dumped its stock, about $2.4 million worth. These moves are interesting, as total hedge fund interest fell by 3 funds heading into Q3.
Let's now review hedge fund activity in other stocks similar to Advanced Disposal Services, Inc. (NYSE:ADSW). We will take a look at Seritage Growth Properties (NYSE:SRG), Yamana Gold Inc. (NYSE:AUY), Cabot Corporation (NYSE:CBT), and HB Fuller Co (NYSE:FUL). This group of stocks' market values resemble ADSW's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SRG,17,451405,3 AUY,18,167074,-1 CBT,20,107789,-9 FUL,18,190088,4 Average,18.25,229089,-0.75 [/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 $229 million. That figure was $123 million in ADSW's case. Cabot Corporation (NYSE:CBT) is the most popular stock in this table. On the other hand Seritage Growth Properties (NYSE:SRG) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Advanced Disposal Services, Inc. (NYSE:ADSW) is even less popular than SRG. Hedge funds clearly dropped the ball on ADSW as the stock delivered strong returns, though hedge funds' consensus picks still generated respectable returns. 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. A small number of hedge funds were also right about betting on ADSW as the stock returned 14.6% during the same period and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published atInsider Monkey.
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Here is What Hedge Funds Think About U.S. Well Services, Inc. (USWS)
Amid an overall bull market, many stocks that smart money investors were collectively bullish on surged during the first quarter. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 40% and 25% respectively. Our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. That's why we weren't surprised when hedge funds’ top 20 large-cap stock picks generated a return of 18.7% during the first 5 months of 2019 and outperformed the broader market benchmark by 6.6 percentage points.This is why following the smart money sentiment is a useful tool at identifying the next stock to invest in.
U.S. Well Services, Inc. (NASDAQ:USWS)shareholders have witnessed a decrease in support from the world's most elite money managers of late.USWSwas in 13 hedge funds' portfolios at the end of March. There were 14 hedge funds in our database with USWS positions at the end of the previous quarter. Our calculations also showed that USWS 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.
Let's take a look at the new hedge fund action encompassing U.S. Well Services, Inc. (NASDAQ:USWS).
Heading into the second quarter of 2019, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -7% from the previous quarter. The graph below displays the number of hedge funds with bullish position in USWS over the last 15 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
Among these funds,Encompass Capital Advisorsheld the most valuable stake in U.S. Well Services, Inc. (NASDAQ:USWS), which was worth $14.6 million at the end of the first quarter. On the second spot was Alyeska Investment Group which amassed $10 million worth of shares. Moreover, Scoggin, Angelo Gordon & Co, and Millennium Management were also bullish on U.S. Well Services, Inc. (NASDAQ:USWS), allocating a large percentage of their portfolios to this stock.
Judging by the fact that U.S. Well Services, Inc. (NASDAQ:USWS) has witnessed falling interest from the aggregate hedge fund industry, it's safe to say that there was a specific group of hedgies that elected to cut their positions entirely heading into Q3. Interestingly, Ari Zweiman's683 Capital Partnersdumped the largest position of the 700 funds watched by Insider Monkey, worth close to $0.5 million in stock. Paul Glazer's fund,Glazer Capital, also sold off its stock, about $0.2 million worth. These moves are important to note, as total hedge fund interest was cut by 1 funds heading into Q3.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as U.S. Well Services, Inc. (NASDAQ:USWS) but similarly valued. We will take a look at First Financial Corp (NASDAQ:THFF), Natural Resource Partners LP (NYSE:NRP), Universal Electronics Inc (NASDAQ:UEIC), and Attunity Ltd (NASDAQ:ATTU). This group of stocks' market valuations are similar to USWS's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position THFF,7,12875,2 NRP,5,18109,1 UEIC,12,25643,6 ATTU,18,158528,1 Average,10.5,53789,2.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $54 million. That figure was $42 million in USWS's case. Attunity Ltd (NASDAQ:ATTU) is the most popular stock in this table. On the other hand Natural Resource Partners LP (NYSE:NRP) is the least popular one with only 5 bullish hedge fund positions. U.S. Well Services, Inc. (NASDAQ:USWS) 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 USWS wasn't nearly as popular as these 20 stocks and hedge funds that were betting on USWS were disappointed as the stock returned -26.3% 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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Here’s What Hedge Funds Think About New Gold Inc. (NGD)
"Since 2006, value stocks (IVE vs IVW) have underperformed 11 of the 13 calendar years and when they beat growth, it wasn't by much. Cumulatively, through this week, it has been a 122% differential (up 52% for value vs up 174% for growth). This appears to be the longest and most severe drought for value investors since data collection began. It will go our way eventually as there are too many people paying far too much for today's darlings, both public and private. Further, the ten-year yield of 2.5% (pre-tax) isn't attractive nor is real estate. We believe the value part of the global equity market is the only place to earn solid risk adjusted returns and we believe those returns will be higher than normal," said Vilas Fund in itsQ1 investor letter. We aren't sure whether value stocks outperform growth, but we follow hedge fund investor letters to understand where the markets and stocks might be going. This article will lay out and discuss the hedge fund and institutional investor sentiment towards New Gold Inc. (NYSEAMEX:NGD).
New Gold Inc. (NYSEAMEX:NGD)investors should pay attention to a decrease in hedge fund interest lately. Our calculations also showed that NGD isn't among the30 most popular stocks among hedge funds.
Why do we pay any attention at all to hedge fund sentiment? 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 surrounding New Gold Inc. (NYSEAMEX:NGD).
Heading into the second quarter of 2019, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -13% from the fourth quarter of 2018. On the other hand, there were a total of 14 hedge funds with a bullish position in NGD a year ago. With hedgies' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
Among these funds,Kopernik Global Investorsheld the most valuable stake in New Gold Inc. (NYSEAMEX:NGD), which was worth $32.6 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $8.2 million worth of shares. Moreover, Saba Capital, Arrowstreet Capital, and Marshall Wace LLP were also bullish on New Gold Inc. (NYSEAMEX:NGD), allocating a large percentage of their portfolios to this stock.
Due to the fact that New Gold Inc. (NYSEAMEX:NGD) has witnessed a decline in interest from the aggregate hedge fund industry, logic holds that there was a specific group of funds that elected to cut their positions entirely in the third quarter. Intriguingly, Murray Stahl'sHorizon Asset Managementcut the biggest investment of the "upper crust" of funds watched by Insider Monkey, valued at close to $0.7 million in stock. Michael A. Price and Amos Meron's fund,Empyrean Capital Partners, also cut its stock, about $0.5 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 2 funds in the third quarter.
Let's now take a look at hedge fund activity in other stocks similar to New Gold Inc. (NYSEAMEX:NGD). We will take a look at Star Group, L.P. (NYSE:SGU), Pareteum Corporation (NASDAQ:TEUM), Agilysys, Inc. (NASDAQ:AGYS), and Briggs & Stratton Corporation (NYSE:BGG). This group of stocks' market caps resemble NGD's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SGU,8,99694,0 TEUM,9,17634,2 AGYS,14,121010,1 BGG,7,8385,-3 Average,9.5,61681,0 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 9.5 hedge funds with bullish positions and the average amount invested in these stocks was $62 million. That figure was $48 million in NGD's case. Agilysys, Inc. (NASDAQ:AGYS) is the most popular stock in this table. On the other hand Briggs & Stratton Corporation (NYSE:BGG) is the least popular one with only 7 bullish hedge fund positions. New Gold Inc. (NYSEAMEX:NGD) 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 NGD wasn't nearly as popular as these 20 stocks and hedge funds that were betting on NGD were disappointed as the stock returned -22.1% 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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Hedge Funds Have Never Been This Bullish On Central Puerto S.A. (CEPU)
At Insider Monkey, we pore over the filings of nearly 750 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we've gathered as a result gives us access to a wealth of collective knowledge based on these firms' portfolio holdings as of March 31. In this article, we will use that wealth of knowledge to determine whether or not Central Puerto S.A. (NYSE:CEPU) makes for a good investment right now.
Central Puerto S.A. (NYSE:CEPU)investors should be aware of an increase in hedge fund sentiment lately.CEPUwas in 12 hedge funds' portfolios at the end of March. There were 8 hedge funds in our database with CEPU holdings at the end of the previous quarter. Our calculations also showed that CEPU 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.
[caption id="attachment_324853" align="aligncenter" width="450"]
Joshua Friedman of Canyon Capital[/caption]
Let's review the new hedge fund action surrounding Central Puerto S.A. (NYSE:CEPU).
Heading into the second quarter of 2019, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 50% from the fourth quarter of 2018. By comparison, 7 hedge funds held shares or bullish call options in CEPU 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.
Of the funds tracked by Insider Monkey, Edmond M. Safra'sEMS Capitalhas the largest position in Central Puerto S.A. (NYSE:CEPU), worth close to $14.1 million, corresponding to 1.1% of its total 13F portfolio. Sitting at the No. 2 spot isHighland Capital Management, managed by James Dondero, which holds a $8.6 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Some other members of the smart money with similar optimism consist of Israel Englander'sMillennium Management, Joshua Friedman and Mitchell Julis'sCanyon Capital Advisorsand Sander Gerber'sHudson Bay Capital Management.
As aggregate interest increased, some big names were leading the bulls' herd.Marshall Wace LLP, managed by Paul Marshall and Ian Wace, initiated the most valuable position in Central Puerto S.A. (NYSE:CEPU). Marshall Wace LLP had $0.9 million invested in the company at the end of the quarter. Michael Gelband'sExodusPoint Capitalalso made a $0.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Michael Platt and William Reeves'sBlueCrest Capital Mgmt., Robert Charles Gibbins'sAutonomy Capital, and Ken Griffin'sCitadel Investment Group.
Let's go over hedge fund activity in other stocks similar to Central Puerto S.A. (NYSE:CEPU). These stocks are Aimmune Therapeutics Inc (NASDAQ:AIMT), Ambarella Inc (NASDAQ:AMBA), Shutterfly, Inc. (NASDAQ:SFLY), and Suburban Propane Partners LP (NYSE:SPH). This group of stocks' market valuations are closest to CEPU's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position AIMT,15,202754,-1 AMBA,19,100486,5 SFLY,28,423757,6 SPH,5,86935,0 Average,16.75,203483,2.5 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 16.75 hedge funds with bullish positions and the average amount invested in these stocks was $203 million. That figure was $39 million in CEPU's case. Shutterfly, Inc. (NASDAQ:SFLY) is the most popular stock in this table. On the other hand Suburban Propane Partners LP (NYSE:SPH) is the least popular one with only 5 bullish hedge fund positions. Central Puerto S.A. (NYSE:CEPU) 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 CEPU wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); CEPU investors were disappointed as the stock returned -8.7% 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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Mitsubishi weighs new Canadian engineering design center in Montreal: source
By Allison Lampert
MONTREAL (Reuters) - Mitsubishi Heavy Industries Ltd, is weighing the creation of a new engineering design center in Montreal, a source familiar with the matter told Reuters, in a move fueled by the company's planned acquisition of Bombardier's CRJ regional jet business.
The engineering design center will start with "a couple hundred" workers to support the development of its smaller Spacejet model, the 65- to 76-seat M100 jet, in collaboration with sites in Japan and Seattle, the source added.
"Mitsubishi is considering putting a new development site, an engineering facility into Montreal," said the source who spoke on condition of anonymity because the talks are private.
"It would make sense, if the CRJ transaction closes, Mitsubishi would have a bigger (presence) in the area."
Mitsubishi is expected to take a decision, which is not yet firm, in the next few months, the source added.
Mitsubishi Heavy spokesman Dan Lochmann said by telephone from Japan that the company has "not made any decisions yet," on Montreal, "but the area is certainly one with excellent talent that we would like to make the best use of."
This week, Mitsubishi Heavy agreed to buy Bombardier's money-losing CRJ regional jet business for $550 million in cash, in a boost to Japan's plane-making ambitions, while marking the Canadian plane and train maker's exit from commercial aviation.
The CRJ acquisition would end production of Bombardier's aging regional jets in late 2020, but give Mitsubishi access to the Canadian company's aftermarket sales, engineering expertise and U.S.-based heavy maintenance centers. Mitsubishi would be better-placed to attract Bombardier's engineers through the Montreal center.
Mitsubishi is trying to certify its 88-seat regional jet, the Spacejet M90, for delivery in 2020 after seven years of delays.
Mitsubishi faces the technical challenge of developing the M100 with a larger, more fuel-efficient engine, while meeting the size and weight rules that would make it attractive in the United States, the world's largest regional jet market.
Pilot agreements at the largest U.S. carriers restrict planes heavier than 86,000 pounds (39 tonnes) and with more than 76 seats from being outsourced to regional affiliates which are less costly to operate. Some of the agreements set the seating limit even lower at 65 seats.
Although bigger than the M70 jet it replaces, Mitsubishi has said the M100 will save weight by using new materials.
(Reporting by Allison Lampert; Editing by Sandra Maler) |
The Stonewall's path from illicit dive to national monument
NEW YORK (AP) — Fifty years ago, the Stonewall Inn was an underground gay bar where a police raid sparked a rebellion that fueled the modern LGBTQ rights movement. Today, it's still a bar, but a highly visible one. It's a landmark, and the patrons flocking in this week to honor the riots' legacy include a gay police officers' group. The tavern in Manhattan's Greenwich Village has undergone physical and ownership changes over the years. At points, it wasn't a bar at all. But as the rebellion's anniversary approaches Friday, the Stonewall Inn stands in part of its original space and serves as a gathering place and beacon for LGBTQ people and others. "We understand we're the innkeepers of history," says co-owner Stacy Lentz. In 1969, the Stonewall was part of a Greenwich Village gay scene that was known, yet not open. At the time, showing same-sex affection or dressing in a way deemed gender-inappropriate could get people arrested, and bars had lost liquor licenses for serving such people. Some gay nightspots simply operated illegally. A onetime horse stable in adjoining buildings at 51 and 53 Christopher Street, the Stonewall was a divey, unlicensed spot with darkened windows, black-painted walls and a doorman who scrutinized would-be patrons through a peephole. But it also had a popular, pulsating dance floor that attracted a diverse, largely young crowd. The police raid in the wee hours of June 28, 1969, stirred a sudden resistance, as patrons and others outside the bar hurled objects at officers. Protests followed over several more days and led to new, more extensive and militant LGBTQ activist groups than the U.S. had seen before. The bar itself didn't last long after the raid. Over the ensuing years, the space was divided and used by a bagel shop, a Chinese restaurant and other establishments, including a gay bar called Stonewall that briefly operated at 51 Christopher in the late 1980s. Renovations changed the interior decor. Story continues The current Stonewall Inn, at 53 Christopher, dates to the early 1990s. For years, its path was pitted with financial strains, business vagaries and loss. One co-owner, Jimmy Pisano, died three months before the Stonewall rebellion's 25th anniversary in 1994. His boyfriend, Thomas Garguilo — a marketing executive who had never planned on managing the bar — recalls a struggle to keep the business afloat for the milestone. When it came, the Stonewall was indeed open, drawing so many people that a line formed just to take photos in front. "It just felt like such a relief, a blessing," recalls Garguilo. Long gone from the Stonewall, he recently launched a website to highlight Pisano's role in maintaining what would later become a National Historic Landmark and part of the first national monument to LGBT rights. "People walk past that place today and assume it's always been there," Garguilo says. Two other figures from Pisano's tenure, friend and business partner Bob Gurecki and renovation contractor Dominick DeSimone, oversaw the bar's next chapter, grappling with noise complaints and other issues. Lentz and co-owner Kurt Kelly acquired the business in 2006, with investors' help, and have sought to keep its legacy current. They founded the Stonewall Inn Gives Back Initiative in 2017 to raise money to aid LGBTQ organizations in Kansas, Tennessee and elsewhere outside U.S. coastal cities. "We really feel like the fire that started at Stonewall in 1969 is not done," Lentz says. "The battleground has just shifted." The Stonewall Inn itself remains a place to measure key points in the arc of LGTBQ life in America. People gathered there to cheer when the Supreme Court legalized gay marriage nationwide in 2015; to mourn the next year when a gunman killed 49 people at a gay nightclub in Florida; and to protest in 2017 when President Donald Trump rescinded guidance that encouraged letting transgender students use the bathrooms of their choice in school. The Stonewall has also become a sometime political campaign stop. Democratic presidential hopeful and former Vice President Joe Biden visited last week , for example. Former City Council speaker Christine Quinn, who tried in 2013 to become the city's first female and first openly gay mayor, remembers a rally at the Stonewall as a very meaningful "moment about aspirations and potential" in a campaign that ended at the Democratic primary days later. The bar still gets police attention, but a very different kind than in 1969. The Gay Officers Action League, which counts hundreds of active members in the New York Police Department and other nearby law enforcement agencies, holds its monthly meetings in the Stonewall's upstairs room. The organization planned a get-together at the bar Thursday for members and officers visiting for LGBTQ Pride events to reflect on the rebellion's 50th anniversary. "As queer police officers, I think we have an added responsibility of acknowledging and ensuring that that ugly history doesn't happen again. So it'll be a nice night of absorbing and really taking a moment to be inside of that place," GOAL's president, NYPD Detective Brian Downey, said last week. "It'll be sort of a pilgrimage." The NYPD itself apologized earlier this month for the 1969 raid, which Commissioner James O'Neill called "discriminatory and oppressive." The Stonewall's recent history has some difficult moments, including a 2010 attack on a patron by two men who eventually pleaded guilty to hate crime assault. But problems have been few, says Kelly, who likes to tend bar from time to time. He's especially pleased when customers who don't know its history wander in. "Because," he says, "I get to tell the story over and over again." ___ Associated Press researcher Randy Herschaft contributed to this report. ___ Find complete AP Stonewall anniversary coverage here: https://apnews.com/Stonewallat50 |
Is J.C. Penney Company, Inc. (JCP) A Good Stock To Buy?
We can judge whether J.C. Penney Company, Inc. (NYSE:JCP) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There's no better way to get these firms' immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market when we factor in known risk factors.
J.C. Penney Company, Inc. (NYSE:JCP)investors should pay attention to a decrease in hedge fund interest in recent months. Our calculations also showed that JCP 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.
Let's take a look at the new hedge fund action regarding J.C. Penney Company, Inc. (NYSE:JCP).
At Q1's end, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -24% from the fourth quarter of 2018. By comparison, 24 hedge funds held shares or bullish call options in JCP a year ago. With hedgies' sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
More specifically,Masters Capital Managementwas the largest shareholder of J.C. Penney Company, Inc. (NYSE:JCP), with a stake worth $10.4 million reported as of the end of March. Trailing Masters Capital Management was Winton Capital Management, which amassed a stake valued at $10 million. D E Shaw, Tyvor Capital, and Redwood Capital Management were also very fond of the stock, giving the stock large weights in their portfolios.
Because J.C. Penney Company, Inc. (NYSE:JCP) has faced falling interest from the smart money, logic holds that there is a sect of funds that decided to sell off their entire stakes in the third quarter. It's worth mentioning that Daniel S. Och'sOZ Managementcut the largest position of the "upper crust" of funds watched by Insider Monkey, worth close to $1.4 million in stock. Mike Vranos's fund,Ellington, also said goodbye to its stock, about $0.9 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 4 funds in the third quarter.
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as J.C. Penney Company, Inc. (NYSE:JCP) but similarly valued. These stocks are Ready Capital Corporation (NYSE:RC), Petmed Express Inc (NASDAQ:PETS), Corenergy Infrastructure Trust Inc (NYSE:CORR), and PennantPark Investment Corp. (NASDAQ:PNNT). This group of stocks' market valuations resemble JCP's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RC,14,63305,8 PETS,16,74107,1 CORR,11,43465,4 PNNT,9,13823,0 Average,12.5,48675,3.25 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $49 million. That figure was $45 million in JCP's case. Petmed Express Inc (NASDAQ:PETS) 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. J.C. Penney Company, Inc. (NYSE:JCP) 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 JCP wasn't nearly as popular as these 20 stocks and hedge funds that were betting on JCP were disappointed as the stock returned -18.8% 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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Nike's fourth-quarter earnings miss Wall Street's expectations
Nike (NKE)reportedfiscal fourth-quarter earnings per share that missed consensus expectations, while posting stronger-than-expected sales results in North America and China.
The Beaverton, Oregon-based company posted sales of $10.18 billion for the quarter ending in May, slightly exceeding estimates for $10.16 billion, according to Bloomberg data. However, adjusted earnings per share of 62 cents were 10% below the company’s EPS in the year-ago quarter, and below consensus expectations for 66 cents a share.
Wall Street had anticipated a year-over-year decline in quarterly earnings as Nike lapped last year’s bottom-line boosting events, including FIFA Men’s World Cup merchandise sales and the launch of new Air Max 270 and Epic React shoes. Nike, however, performed even more weakly than expected on EPS, attributing this in part to greater marketing expenses and a higher tax rate.
The company held up more strongly on the top line, especially in its closely watched North American and Greater China segments. Nike’s North American sales grew 7.5% over last year to $4.17 billion during the quarter. This was better than the 3% pace of growth the company posted in the region during the year-ago period. Investors were monitoring sales expansion in Nike’s North American market, its most important geographic segment, after regional sales disappointed during theFebruary quarter.
Over the past several months, U.S. retailers highlighted demand for Nike products in their own quarterly reports, presaging strong sales results for the athletic-wear maker. Dick’s Sporting Goods (DKS) CEO Edward Stack said during a call with investors that he was “very pleased” with the company’s Nike business, while Kohl’s (KSS) management cited positive growth for Nike, Under Armour (UAA) and Adidas (ADS.DE) products during its April quarter.
Nike on Thursday reported a 10% rise in Nike Brand for the fourth quarter, which the company attributed to growth across Nike Direct and wholesale, as well as its sportswear, Jordan and basketball categories. Revenue from the company’s Converse brand was flat against last year.
China continued to be a major contributor to Nike’s total sales. Excluding currency changes, revenue from China grew 22% over last year to $1.7 billion, comprising 16.7% of fourth-quarter revenue. Nike’s sales in Greater China have grown by double digits percentages on a currency neutral basis for the past 20 consecutive quarters.
As trade tensions with China have escalated, investors have questioned the future prospects for retail companies, including Nike, with sales and supply chain exposure to the region.
However, Nike CEO Mark Parker said during a call with investors Thursday that he was confident the company would continue to grow its business in China, adding that Nike is set to unveil a women’s apparel line for Asian markets in 2019. It also plans to launch its app in China in the first half of 2020.
“We are, and remain, a brand of China, for China,” Parker said.
When asked whether U.S.-China trade relations or an economic slowdown in China were affecting Nike, management noted, “We have not seen any impact on our business to date, and we continue to see strong momentum as we enter fiscal year 2020.”
Despite ongoing uncertainties, Nike is “well-positioned to weather any potential tariffs,” Susquehanna analyst Sam Poser wrote in a note ahead of fourth-quarter earnings results.
“Large, geographically diversified companies are best positioned to weather the storm from any additional tariffs imposed on Chinese imports,” Poser said. About 40% of Nike’s annual revenue came from regions aside from the U.S. and Greater China in both the 2018 and 2019 fiscal years.
Poser estimated that Nike manufactured about 26% of both its footwear and apparel in China in 2018, but that less than 10% of goods manufactured in the country were then imported to the U.S. And while the majority of Nike’s sports equipment products were likely made in China last year, these goods comprised less than 5% of Nike’s total North American revenue in the 2018 fiscal year, he added.
“Exposure to potential tariffs is limited,” Poser said.
Shares of Nike have risen 12.6% for the year-to-date through Thursday’s close, underperforming against the S&P 500’s 16.7% advance in 2019.
—
Emily McCormick is a reporter for Yahoo Finance.Follow her on Twitter: @emily_mcck
Read more from Emily:
• Don’t say ‘IPO’: What to know about Slack’s direct listing
• Buffett on the American economy, capitalism: ‘It works’
• Tech companies like Lyft want your money – not ‘your opinion’
• Levi Strauss shares jump more than 30% above IPO price at open
• Facebook sued by Trump administration for alleged ‘discriminatory’ ad practices
• Boeing 737 Max groundings ‘pressure’ U.S. economic data: Wells Fargo
Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit. |
What Kind Of Share Price Volatility Should You Expect For RMG Limited (ASX:RMG)?
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Anyone researching RMG Limited (ASX:RMG) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks 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. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
See our latest analysis for RMG
RMG has a five-year beta of 1.05. This is reasonably close to the market beta of 1, so the stock has in the past displayed similar levels of volatility to the overall market. While history does not always repeat, this may indicate that the stock price will continue to be exposed to market risk, albeit not overly so. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see RMG's revenue and earnings in the image below.
With a market capitalisation of AU$5.5m, RMG is a very small company by global standards. It is quite likely to be unknown to most investors. Companies this small are usually more volatile than the market, whether or not that volatility is correlated. Therefore, it's a bit surprising to see that this stock has a beta value so close to the overall market.
Since RMG has a beta close to one, it will probably show a positive return when the market is moving up, based on history. If you're trying to generate better returns than the market, it would be worth thinking about other metrics such as cashflows, dividends and revenue growth might be a more useful guide to the future. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as RMG’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are RMG’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 RMG 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 RMG'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. |
H&M Makes a Sustainable Fashion Miscue in Norway
Global fast-fashion giant Hennes & Mauritz’s use of the word sustainable to describe one of its summer collections is being questioned by a Norway consumer agency.
According toEcotextile, the company has run afoul of theNorwegian Consumer Authority, which claims the brand’s Conscious collection misrepresents its “sustainability credentials” with “symbols, statements and colors.”
H&M describes the collection, including t-shirts, knit blouses, and shoulder-baring frocks, as “sustainable fashion pieces that make you both look and feel good.”
In Norway, companies must comply with theMarketing Control Act, which includes language to prevent them from making vague or false claims. It states that brands should be able to provide documentation “to substantiate factual claims made in marketing, including as to the properties or effect of products.” (A garment’s claims of eco-friendliness or sustainability are considered technical properties.)
Norway’s marketing act bans misleading omissions. A marketing claim is considered misleading if it omits or hides information consumers need to make informed decisions, or the information is presented “in an unclear, unintelligible, ambiguous or unsuitable manner.” In other words, companies selling products in Norway can’t say their products are eco-friendly or sustainable without explaining how they’re eco-friendly or sustainable.
“Our opinion is that H&M [is] not being clear or specific enough in explaining how the clothes in the Conscious collection and their Conscious shop are more sustainable than other products they sell,” Bente Øverli, deputy director general at Norway’s Forbrukertilsynet, or Consumer Authority, toldQuartz. “Since H&M [is] not giving the consumer precise information about why these clothes are labelled Conscious, we conclude that consumers are being given the impression that these products are more sustainable than they actually are.”
Contacted byFortuneH&M emphasized: “What the Norwegian Consumer Authority is looking into is whether the information we’re providing connected to our Conscious products is precise enough. They’re not looking into whether our products are sustainable or not.”
The Swedish company said they are “pleased” the Norwegian agency wants “to work with us and help us provide correct and clear information to consumers.”
While H&M doesn’t specify why its Conscious collection is sustainable, it does use its marketing to describe the company’s sustainability goals.
On H&M’s U.S. website,a white, smocked camisolefrom its Conscious collection contains 99% polyester and 1% elastane. Under the “sustainability” tab on the product page, H&M describes a company-wide mission to use 100% recycled or “other sustainably sourced materials” by 2030. For “elastane” a statement reads: “The fiber is made from oil which is a fossil resource. We are exploring the development of sustainable alternatives to conventional elastane, such as recycled elastane and bio-based elastane.”
Describing “polyester” H&M copy advises: “Conventional polyester is a commonly used artificial fibre made from fossil resources (crude oil). We are constantly striving to increase our use of recycled polyester; a more sustainable option made from waste such as plastic (PET) bottles.” (There are no details whether the specific product, a white shirt, was made from recycled polyester or alternative elastane.)
Fast-fashion companies like H&M sell budget clothing and accessories on-trend. The environmental impact of cheap clothes, with customers buying more and with increased frequency, is huge.
According to Elizabeth Reichart and Deborah Drew atWorld Resources Institute, a global environmental think tank, “the average consumer bought60% more clothesin 2014 than in 2000, but kept each garment for half as long.” It takes2,700 gallons of waterto make a single shirt, andmaking a pair of jeans“produces as much greenhouse gases as driving a car more than 80 miles.”
TheWRI reportalso noted that because world economies are growing, there is increased demand for clothing, and clothing production has doubled in the past 15 years. The world GDP is expected to increase by 400% by 2050, which means demand for clothing will only increase.
A New York University report showed that sustainability-marketed products accounted for16.6% share of the consumer goods marketin 2018, but delivered more than half of its growth. According to the 2019Pulse of the Fashion Industry Report, 75% of consumers view sustainability as very or extremely important. Half of consumers said they would switch brands if another brand acts more environmentally and socially friendly than their preferred one.
But what does it mean for a company or product to be sustainable? There’s no simple answer.
“I don’t think for the sector there is a clear definition,” said Cynthia Cummis, director of Private Sector Climate Mitigation at WRI.
“There are lots of things a company could be doing, but I don’t think there’s a clear definition of what actions a company would need to take that, collectively, would make their products or company considered sustainable,” she said.
Among steps fashion companies can take toward sustainability: “They would need to be very transparent about what raw materials they use, and how efficient their processes are, and what kind of recycling practices they have in place for their materials,” Cummis said. “There’s lots of questions they would need to answer.”
—Amazon’snew store for beauty professionalsdisrupting the industry?
—Old Navy’sPurple 4th and Belonging anniversarycampaign
—Women’s World Cupendorsements in the wings
—Big Gay Ice Creamgrowing from coast to coast
—Taco Bell’s newest limited-editionmenu item: a hotel room
—Listen to our new audio briefing,Fortune500 Daily
GetFortune’s RaceAhead newsletterfor sharp insights on corporate culture and diversity |
Inclusion Was The Winner of the Democratic Debate: RaceAhead
The first of two Democratic presidential debates are in the can, with the second one coming at us like a freight train. (Fortune’s got you covered on what to expect tonighthere.)
Last night’s event brought out the chatty in all social networks, and thememescame early and often. (Mirándote, Señor Beto.)
Most observers, myself included, thought that Senator Elizabeth Warrenwon the evening, in part by coming prepared to explain her broader vision for the role of government in the lives of middle class and struggling families, but also by being the candidate against whom the others were measured. Right off the bat, her fellow debaters were asked to respond to three of her plans: debt-free college, higher taxes for the ultra-wealthy, and her scheme to break up the big tech companies.Voxhas a good breakdown here.
But she was not alone in performing well.
Senator Cory Booker earned high marks for his passionate response in favor of gun control, which earned hima meaningful spike on Google trends; and for reasons most New Yorkers can’t quite explain, Mayor Bill de Blasio seemed to read as accomplished and credible.
The person who needed to make up the most ground, however, was Julián Castro, who had been polling in the 1 percent range. He was poised and prepared, particularly when he fielded the first question on immigration. Castro had been the first candidate out with a plan — which he was sure to mention, but got everyone’s attention when he referenced by name El Salvadoran asylum seekers Óscar Alberto Martínez Ramírez and his 2-year-old daughter Valeria,who died this week after making a desperate attempt to cross the Rio Grande.
“This metering policy is what prompted Óscar and Valeria to make that risky swim across the river,” Castro said of the Trump administration policy of limiting the number of migrants who can request asylum. “They have been playing games with people who are coming to try and seek asylum at our ports of entry. Óscar and Valeria went to seek asylum and they were denied the ability to make an asylum claim. So they got frustrated and they tried to cross the river and they died because of that.”
Moments later,my colleague Mark Dent explains, Castro brought up his plan to repeal section 1325 of the Immigration and Nationality Act and make border crossing a civil, not criminal offense, which prompted an uncomfortable exchange with fellow Texan, Beto O’Rourke.
But if you look past applause lines, the occasional sharp elbows, and the awkwardness of the random Spanish-language answer, inclusion was the big winner last night. And that may be more important than politics as usual, at least at this stage of the game.
Castro said some other names, too. “What aboutEric Garner, Tamir Rice, Laquan McDonald, Sandra Bland, Pamela Turner,Antonio Arce?” he asked, naming black or brown people who had been killed by the police. “I’m proud that I’m the only candidate so far that has put forward legislation that would reform our policing system.” A Twitter account run by friends of Garner’s late daughter “noted and appreciated,” the mention.
And in a first, Castro mentioned transgender people, unprompted, in an answer about abortion care.
In a conversation about “reproductive justice,” he said, “And, you know, what that means is that just because a woman — or let’s also not forget someone in the trans community, a trans female — is poor, doesn’t mean they shouldn’t have the right to exercise that right to choose,” Castro said.
Yes, it appears he mixed up transgender women with transgender men, but he went there.
Booker also mentioned the “epidemic” of violence against transgender people. “We do not talk enough about trans-Americans, especially African American trans-Americans . . . and the incredibly high rates of murder right now,” Booker said. Warren even casually dropped “Latinx” into an answer, a nod to the gender-neutral term for people of Latin American origin.
“To hear someone specifically mention transgender rights in a context that wasn’t forced is enormous for us,” Charlotte Clymer, a transgender activist and spokeswoman for the Human Rights CampaigntoldThe Washington Post.“It felt powerful in that moment.”
A nation that’s fluent in the languages of gender and racial inclusion is a distant dream, I know. But it makes a difference when powerful people talk the talk in public, even if you don’t like their politics, even if they don’t get it exactly right the first time.
1. On PointTwo SCOTUS decisions have big implications for politics and governance Each ruling offers a victory to one of the two major political parties. The first, delays the addition of a citizenship question to the 2020 census, a move which could have triggered a massive undercount of vulnerable populations. The other decision removes the opportunity of federal review in even the most extreme examples of partisan gerrymandering in state voting districts. “We conclude that partisan gerrymandering claims present political questions beyond the reach of the federal courts,” Chief Justice John G. Roberts Jr.wrote in the 5-4 majority opinion.New York TimesThe Trump administration faces a lawsuit alleging unsafe conditions in detention facilities on the U.S. border The suit, filed in U.S. District Court in Los Angeles yesterday, says the abhorrent conditions in the Customs and Border Protection facilities in Texas are in violation of an agreement that outlines protocols for thedetention of minors. The suit asks for an emergency injunction that allows for immediate inspection of the facilities. According to the filing, lawyers and doctors who visited a camp in El Paso found a dismal scene: hungry pregnant women, neglected toddlers, children held for weeks without access to soap, clean water, or toothbrushes, and a burgeoning flu epidemic. The CPB says they are overwhelmed and need Congressional help. “We do not want them in our custody, our facilities were not designed for that,” an anonymous CBP official said to reporters on Tuesday.Wall Street Journal“How much is a little girl worth?” This question is at this center of this must-read piece fromFortune’sMary Pilon, who looks at the aftermath of the saga of Larry Nasser, the USA Gymnastics and Michigan State University doctor who was sentenced January 2018 for sexually abusing a still unknown number of young gymnasts in his care. In a record settlement, MSU agreed to pay a $500 million settlement to victims. Now comes the other hard part. “Survivors…have been deep in negotiations with lawyers and mediators over the disbursement of the settlement funds,” writes Pilon. “In a process that involves an awkward combination of apologetic recognition, dispassionate mathematics, and, often, a torturous recounting of abuse, hundreds of women are learning what their suffering was ‘worth’ in dollar terms.”FortuneCanada adds right-wing extremist groups to its list of banned terrorist organizations It’s the first time theCanadian government has included neo-Nazi groupson its watch list. There are two: Blood & Honour was described as “an international neo-Nazi network whose ideology is derived from the National Socialist doctrine of Nazi Germany.��� Combat 18 is Blood & Honour’s armed branch and has been tied to murders and bombings. The head of Canada’s Anti-Hate Network characterized them as “extremely violent,” and said, “I’m hoping this is just the beginning and that there will be more, but this is a really good first start for Canada.” Inclusion of groups on terrorist lists makes them easier to prosecute, experts say.Global News
2. On BackgroundA former white supremacist testifies before CongressTony McAleeris the cofounder and board chair of Life After Hate, a nonprofit group dedicated to helping people leave hate groups. He’s got real expertise: McAleer is a former organizer for the White Aryan Resistance (WAR), a successful skinhead recruiter, and other terrible things. But now he’s devoted to building bridges between the people who hate and the society they seek to destroy. Their specialized training, mostly delivered by “formers,” is in demand. “Since Charlottesville, Life After Hate has received more than 240 requests for help from individuals and families,” he said. “I come before you today to urge the government to recognize that if left unchecked, white supremacist ideology inevitably expresses itself in murder.” In thisC-SPAN clip, he talks about how he’d spend an allocated $1 billion budget to fight violent white supremacism. “This is a whole of society problem,” he begins. “When we peel away the labels we find vulnerable human beings.”Life After HateMexican immigrants are essential to small-town America Alfredo Corchado is the Mexico border correspondent for the Dallas Morning News, so this essay is informed by his now polarizing-beat. The number of Mexican immigrants has declined in the last ten years, some by choice, others by deportation. But, he says, anti-immigrant sentiment overlooks the fact that many American small towns owe their economic survival to Mexican residents. “They’ve rescued abandoned communities, some that had been losing population since the 1920s,” he writes. Fear of enforcement actions are frightening business owners that rely on immigrant labor. “Mexicans are leaving, and that’s bad news for everyone,” says the president of one of the biggest mushroom-growing companies.New York Times“In this day and age, everyone has a voice, even if they don’t know it.” So begins this sometimes difficult-to-watch TEDx talk by Rashad Nimr, a half-Palestinian, all-gay advocate who has been living with a profound stutter since he was three. At the time the video was filmed, Nimr was a recent high school graduate, a busy advocate for LGBTQIA teens in his home state of Connecticut, and a volunteer in refugee camps in the Middle East on summer visits. “Possibly because of my own struggle for voice, I have taken a liking to spoken word poetry,” he says. While the magic of watching his stutter temporarily disappear is extraordinary, what he says is even more so. “What am I supposed to do with identities that don’t mix?” he asks.TEDxGreensFarmsAcademyTamara El-Waylly helps produce raceAhead and assisted in the preparation of today’s summaries.
3. QuoteBut when nationalism has successfully dehumanized the other, there is no breaking through, and people who imagine that a photographic message must assuredly be so powerful that it will touch all hearts are forced to grapple with a more confounding truth: Not all consciences operate alike, not everyone is susceptible to what seems a basic, even rudimentary level of empathy. And so, there is a paradox: We resist the idea of living in an us-vs.-them world only to find that our basic sense of “us” is already fractured. We look out at our fellow humans and can’t honestly understand how their minds work. At some level, we think, “Can’t you see what is happening in this image?” As if seeing and understanding are identical.—Art critic Philip Kennicott on the image of the bodies of Salvadoran migrant Óscar Alberto Martínez Ramírez and his nearly 2-year-old daughter, Valeria |
Why Walgreens Boots Alliance Stock Popped Today
Shares ofWalgreens Boots Alliance(NASDAQ: WBA)jumped on Thursday following afiscal third-quarter reportthat beat expectations. While Walgreens recorded a steep decline in earnings, it wasn't enough to derail the stock. Shares of the company were up about 4.3% at 3:40 p.m. EDT.
Walgreens reported third-quarter revenue of $34.6 billion, up 0.8% year over year and $70 million above the average analyst estimate. Sales in the U.S. retail-pharmacy segment rose 2.3%, to $26.5 billion, while international retail pharmacy sales slumped 7.3%, to $2.8 billion, and pharmaceutical wholesale revenue dropped 1.7%, to $5.9 billion.
Image source: Getty Images.
Non-GAAP(adjusted) earnings per share came in at $1.47, down from $1.53 in the prior-year period but $0.04 higher than analysts were expecting. Adjusted operating income was down 11.7% year over year, while GAAP operating income plunged 24.7%. Share buybacks helped boost the per-share numbers by reducing the outstanding share count.
A decline in gross margin hurt the company's bottom line during the third quarter. Walgreens' gross margin was 21.5% in the quarter, down from 22.7% in the prior-year period. Gross profit declined in the U.S. retail pharmacy business due to reimbursement pressure and lower retail sales.
"We will continue our aggressive response to rapidly shifting trends, and have already seen improved U.S. retail sales and prescription growth and are making good progress in implementing our Transformational Cost Management Program," said Walgreens CEO Stefano Pessina.
Despite the earnings decline in the third quarter, Walgreens maintained its full-year guidance for adjusted earnings per share (EPS). The company expects adjusted EPS to be roughly flat on a constant-currency basis. On a reported basis, currency will reduce adjusted EPS by approximately $0.06.
While Walgreens' third quarter wasn't a particularly strong one, the results were better than expected. That was enough for investors to push up the stock.
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Timothy Greenhas 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. |
Franklin Covey: Fiscal 3Q Earnings Snapshot
SALT LAKE CITY (AP) _ Franklin Covey Co. (FC) on Thursday reported a loss of $2 million in its fiscal third quarter. On a per-share basis, the Salt Lake City-based company said it had a loss of 14 cents. The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for a loss of 20 cents per share. The corporate training and consultanting company posted revenue of $56 million in the period, which also beat Street forecasts. Five analysts surveyed by Zacks expected $53 million. Franklin Covey shares have increased 47% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $32.72, an increase of 19% in the last 12 months. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on FC at https://www.zacks.com/ap/FC |
Markets Right Now: S&P 500 climbs after 4 days of losses
NEW YORK (AP) — The latest on developments in financial markets (all times local): 4 p.m. The S&P 500 index broke a four-day losing streak thanks to gains in banks and health care companies, but a drop in Boeing pulled the Dow Jones Industrial Average slightly lower. Wells Fargo rose 1.1% Thursday and AbbVie, which is buying fellow drugmaker Allergan, rose 2.9%. Boeing slumped 2.9%. The airplane maker is facing further delays in getting its grounded 737 MAX back in service. Investors are looking ahead to a weekend meeting on trade between U.S. President Donald Trump and Chinese leader Xi Jinping. The S&P 500 rose 11 points, or 0.4% to 2,924. With one day left of trading in June it's up 6.3% for the month. The Dow fell 10 points, less than 0.1%, to 26,526. The Nasdaq added 57 points, or 0.7%, to 7,967. ___ 11:45 a.m. Stocks are edging mostly higher on Wall Street, putting the S&P 500 on track for its first gain after four days of losses. Banks and health care companies were rising more than the rest of the market in midday trading Thursday. Wells Fargo rose 1.3% and drugmaker AbbVie rose 2.9% Boeing slumped 2.4%, weighing down the Dow Jones Industrial Average. The airplane maker is facing further delays in getting its grounded 737 MAX back in service. Investors are looking ahead to a weekend meeting on trade between U.S. President Donald Trump and Chinese leader Xi Jinping at the G-20 summit in Japan. The S&P 500 rose 8 points or 0.3% to 2,921. The Dow fell 29 points, or 0.1%, to 26,509. The Nasdaq added 32 points, or 0.4%, to 7,941. ___ 9:35 a.m. Stocks are rising ahead of an important weekend meeting between U.S. President Donald Trump and Chinese leader Xi Jinping at the G-20 summit in Japan. Investors are waiting to see if Trump and Xi can make progress toward resolving the costly trade dispute between the U.S. and China. Technology companies and banks are among the biggest winners early Thursday while energy companies are the biggest decliners. Chipmaker Nvidia rose 2.4% Story continues The S&P 500 rose 9 points or 0.3% to 2,923. The Nasdaq composite added 35 points, or 0.4%, to 7,945. The Dow Jones Industrial Average fell 3 points to 26,532. The Dow was weighed down by a decline for Boeing, which is facing further delays in getting its grounded 737 MAX back in service. |
Nike: Fiscal 4Q Earnings Snapshot
BEAVERTON, Ore. (AP) _ Nike Inc. (NKE) on Thursday reported fiscal fourth-quarter net income of $989 million. The Beaverton, Oregon-based company said it had net income of 62 cents per share. The results missed Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 66 cents per share. The athletic apparel maker posted revenue of $10.18 billion in the period, beating Street forecasts. Nine analysts surveyed by Zacks expected $10.15 billion. For the year, the company reported profit of $4.03 billion, or $2.49 per share. Revenue was reported as $39.12 billion. Nike shares have climbed 13% since the beginning of the year, while the Standard & Poor's 500 index has climbed 17%. In the final minutes of trading on Thursday, shares hit $83.56, an increase of 17% in the last 12 months. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on NKE at https://www.zacks.com/ap/NKE |
Top Stock Reports for Apple, Comcast & Morgan Stanley
Thursday, June 27, 2019
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple (AAPL), Comcast (CMCSA) and Morgan Stanley (MS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can seeall oftoday’s research reports here >>>
Apple’s shares have outperformed the broader S&P 500 index on a year-to-date basis (+26.6% vs. +14.9%). The Zacks analyst thinks that the recent WWDC event demonstrated the company’s continued focus on boosting the Services business through cutting-edge software.
Apple unveiled a plethora of software updates and also showcased the new Mac Pro and Pro XDR 6K display. The recent acquisition of Drive.ai adds engineering talent that will provide a boost to Apple’s self-driving efforts. Nevertheless, weak iPhone demand, particularly in China and emerging economies, is a headwind. Moreover, the ongoing U.S.-China trade war doesn’t bode well for the company.
Further, legal woes have increased due to lawsuit from customers related to App Store charges. The company has also been accused of unfair practices by Spotify. These are significant headwinds for investors, at least in the near term.
(You canread the full research report on Apple here >>>).
Shares of Outperform-ratedComcasthave outperformed the Zacks Cable Television industry in the past year, gaining +29% vs. +21.6%. The Zacks analyst thinks Comcast is benefiting from solid growth in the number of residential high-speed Internet customers.
Further, expanding Wi-Fi coverage and innovative xFi control features are improving customer experience. Moreover, the company’s Xfinity Mobile is now used by more than one million customers. The company’s recent plan to sell Apple Watch 4 and iPads with LTE to Xfinity Mobile customers is expected to drive its user base.
Additionally, the Sky acquisition has expanded Comcast’s international reach. Sky’s content strength is a major growth driver. Meanwhile, estimates have been going up ahead of the company’s second-quarter earnings release. The company has recorded positive earnings surprises in last few quarters.
(You canread the full research report on Comcast here >>>).
Morgan Stanley’s shares have gained +9.2% over the past six months, outperforming the Zacks Investment Banking industry, which has increased +6% over the same period. The company has an impressive earnings surprise history, having surpassed expectations in three of the trailing four quarters.
The Zacks analyst thinks the acquisition of Solium Capital is in sync with the company’s efforts to further strengthen its wealth management business. Its focus on its corporate lending unit, steady loan growth, higher interest rates and normalized levels of trading activities will likely aid revenue growth. Further, its steady capital deployment activities indicate a strong balance sheet position (indicated by stress test clearance).
However, slowdown in debt originations will likely hinder underwriting fee income growth and hurt the company’s investment banking performance. Further, elevated operating expenses are likely to hurt profits.
(You canread the full research report on Morgan Stanley here >>>).
Other noteworthy reports we are featuring today include ConocoPhillips (COP), Micron (MU) and Ford (F).
Breakout Biotech Stocks with Triple-Digit Profit Potential
The 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.
See these 7 breakthrough stocks now>>
Mark VickerySenior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weeklyEarnings TrendsandEarnings Previewreports. If you want an email notification each time Sheraz publishes a new article, pleaseclick here>>>
Apple (AAPL) Banks on Services to Counter Weak iPhone Demand
Solid Xfinity Mobile Service Adoption to Aid Comcast (CMCSA)
Solium Deal Aids Morgan Stanley (MS), Debt Originations a Woe
Micron (MU) Hurt By Soft Memory Demand, Higher Inventories
Per the Zacks analyst, weak DRAM and NAND pricing due to oversupply and sluggish end-market demand is denting Micron's top line. U.S.-China trade dispute persists as a key concern.
Eagle Ford Acres Aid ConocoPhillips (COP), Output Costs Ail
Huge acreage holdings in the prospective Eagle Ford Shale play will contribute to ConocoPhillips' growth, per the Zacks analyst.
Prudent Underwriting Aids Travelers (TRV), Cat Loss Worrying
Per the Zacks analyst, Travelers is set to grow on solid underwriting, high retention rate, pricing gains and positive renewal rate changes.
New Model Launches & High Crossover Demand Drive Ford (F)
Ford aims at to build up a winning portfolio through new or redesigned model launches. Per Zacks analyst, this move, given the backdrop of rising appetite for crossovers, is aiding the company.
Cost Savings, Production Boost From Startups Aid TOTAL (TOT)
The Zacks analyst believes TOTAL's rising production from new upstream startups and cost savings initiatives are boosting margins and profitability of the company.
IHS Markit (INFO) Gains from Ipreo Acquisition, Costs Rise
The Zacks analyst believes that acquisition of Ipreo and DeriveXperts expands IHS Markit's financial services business.
Phillips 66 (PSX) Rides on Growing Midstream Assets Demand
The Zacks analyst believes that Phillips 66 is strategically positioned to gain from the growing need for U.S. midstream assets.
Label Expansion of Jakafi Drives Growth for Incyte (INCY)
Per the Zacks analyst, an upside in sales driven by label expansion of lead drug, Incyte should drive growth. Its pipeline is impressive as well.
AGNC Investment's (AGNC) Solid Hedge Portfolio Aids Growth
Per the Zacks analyst, efforts to enhance its hedge portfolio will help efficiently manage interest-rate exposure for AGNC Investment. However, high funding costs and compressed spreads are concerns.
Progressive Business to Bolster Growth for Aaron's (AAN)
Per the Zacks analyst, strength in Aaron's Progressive business, driven by strong invoice volume growth and customer base, is aiding top line. It expects momentum for the segment to continue in 2019.
Operating Margin Contraction Continues to Hurt Cerner (CERN)
Per the Zacks analyst, increases in non-cash software amortization and depreciation, and traditional software revenue growth challenges continue to weigh on Cerner's operating margins.
High Debt Load & Negative Free Cashflow to Hurt Hess (HES)
The Zacks analyst believes that it will be difficult for Hess to raise capital on favorable terms for funding future projects given its significant debt load. Negative cashflow is another concern.
Weak Underwriting, Higher Costs Hurt Raymond James (RJF)
Per the Zacks analyst, weak equity and debt underwriting performance will hurt Raymond James' revenues to some extent. Also, mounting operating expenses remain a major near-term concern.
undefinedundefinedMicron Technology, Inc. (MU) : Free Stock Analysis ReportMorgan Stanley (MS) : Free Stock Analysis ReportFord Motor Company (F) : Free Stock Analysis ReportConocoPhillips (COP) : Free Stock Analysis ReportComcast Corporation (CMCSA) : Free Stock Analysis ReportApple Inc. (AAPL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Progress Software: Fiscal 2Q Earnings Snapshot
BEDFORD, Mass. (AP) _ Progress Software Corp. (PRGS) on Thursday reported fiscal second-quarter profit of $8.2 million. On a per-share basis, the Bedford, Massachusetts-based company said it had profit of 18 cents. Earnings, adjusted for one-time gains and costs, were 65 cents per share. The business software maker posted revenue of $100 million in the period. Its adjusted revenue was $103.5 million. For the current quarter ending in September, Progress Software expects its per-share earnings to range from 68 cents to 70 cents. The company said it expects revenue in the range of $109 million to $112 million for the fiscal third quarter. Analysts surveyed by Zacks had expected revenue of $113.7 million. Progress Software expects full-year earnings in the range of $2.52 to $2.57 per share, with revenue ranging from $422 million to $428 million. Progress Software shares have risen 14% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $40.63, a climb of 17% in the last 12 months. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PRGS at https://www.zacks.com/ap/PRGS |
Brazil central bank says reducing reserve requirements is an active policy tool
BRASILIA, June 27 (Reuters) - Brazil's central bank said on Thursday that reducing banks' reserve requirements is an active policy tool aimed at improving market efficiency, but there is no estimate of how much it will yield or how long it will run for.
On Wednesday the central bank lowered requirements to 31% on time deposits from 33%, freeing up 16.1 billion reais ($4.2 billion).
Earlier on Thursday Economy Minister Paulo Guedes said that up to 100 billion reais could ultimately be released into the economy over time, and central bank chief Roberto Campos Neto said that reducing banks' requirements was a goal for the bank but should not be seen as a substitute for monetary policy. (Reporting by Jamie McGeever Editing by Leslie Adler) |
Deutsche Bank passes Fed stress test in boost for its U.S. operations
By Pete Schroeder and Matt Scuffham
WASHINGTON/NEW YORK, June 27 (Reuters) - Deutsche Bank AG on Thursday passed an annual health check by the Federal Reserve, clearing a second hurdle at a critical time for the German lender in tests administered by the U.S. central bank that measure banks' ability to weather a major economic downturn.
However, the Federal Reserve placed conditions on Credit Suisse's U.S. operations after finding weaknesses in its capital planning processes.
The results provide a boost to the Wall Street operations of Deutsche Bank, Germany's largest lender, which have been plagued by litigation, underperformance and regulatory investigations.
The tests assess whether it is safe for banks to implement their capital plans, including using extra capital for stock buybacks, dividends and other purposes beyond being a cushion against losses. They are designed to avoid the taxpayer bailouts prevalent in the 2007-2009 financial crisis.
The Fed's stamp of approval gives Deutsche a major boost as it works on a restructuring plan. Deutsche flunked the test in 2015, 2016 and 2018. Another failure would have further damaged confidence among clients and investors at a time when Chief Executive Christian Sewing is battling to turn around the bank, whose shares hit a record low this month.
The Federal Reserve, meanwhile, ordered Credit Suisse to address weaknesses in its capital adequacy process by October, and restricted its capital distributions to last year's levels until those weaknesses are addressed. The Fed said it had identified "weaknesses in the assumptions used by the firm to project stressed trading losses that raise concerns about the firm's capital adequacy and capital planning process." It gave no further detail.
The Fed approved the capital plans of the 16 other banks that underwent this year's test, which includes the nation's largest lenders like JPMorgan Chase, Bank of America and Citigroup.
The Fed said in a statement that the nation's largest banks all have strong capital levels and "virtually all" are meeting supervisory expectations for capital planning.
The test results also show that JPMorgan and Capital One both had to pare back their capital plans, after initial plans submitted to the Fed showed that each would see capital levels drop below regulatory minimums under a severe economic downturn, according to a senior Fed official.
Deutsche Bank’s passing grade reflected the significant progress the bank had made in addressing its weaknesses around capital planning, although some issues remain, according to a senior Fed official.
Deutsche's Sewing told investors at the annual shareholders' meeting last month that the bank planned to make "tough cutbacks" at its investment bank to appease investors unhappy with its underperformance. Those plans are likely to see the bank's U.S. equities business shrunk to a skeleton operation, Reuters reported this month.
The stress test outcome means that Deutsche is now free to make payments to its German parent without approval from the Fed, a restriction which was imposed following the stress test failure last year.
Deutsche maintained a large presence on Wall Street after the 2007-2009 financial crisis, while Credit Suisse made big cuts. However, Deutsche's efforts to compete with U.S. rivals have been hampered by litigation and regulatory investigations.
Deutsche is currently facing U.S. government probes into possible money laundering lapses. The bank has said it is cooperating with investigators.
All the 18 banks easily cleared the first portion of the Fed's annual stress test last week, showing they would easily have enough capital to keep lending during a severe economic downturn.
The second test was more rigorous, assessing whether it is safe for banks to implement their capital plans.
Deutsche was the only bank to fail the test last year after the Fed identified "widespread and critical deficiencies" in the bank's capital planning controls. Goldman Sachs, Morgan Stanley and State Street Corp, which received conditional passes last year, passed without conditions this year.
This year's tests are more streamlined following a Fed review of the process. Roughly half as many banks were tested in 2019 compared to 2018, as the Fed moved to a two-year testing cycle for smaller firms.
($1 = 0.8801 euros) (Reporting by Pete Schroeder in Washington and Matthew Scuffham in New York Edited by Neal Templin and Leslie Adler) |
Why Howard Hughes Corporation Stock Soared 42% Today
Shares of real estate developerHoward Hughes Corporation(NYSE: HHC)surged more than 40% on Thursday, following news that the company may put itself up for sale.
After CNBCreportedthat Hughes had hired investment bank Centerview Partners to explore a possible sale, the company released astatementconfirming that its board is conducting a "broad review of potential strategic alternatives to maximize shareholder value."
These options include a spin-off of a portion of its assets, changes in its corporate structure, or a sale of the company.
CEO David Weinreb said: "Our business continues to perform extremely well across our three core segments, with price per acre of land sold, net operating income, and condo sales all exceeding our expectations; however, our stock continues to languish below its net asset value per share. The Board and management are determined to close the significant gap between our share price and the company's underlying net asset value."
Image source: Getty Images.
According to CNBC, the board believes that the company may not be well suited for the public markets, since its real estate assets do not produce the type of predictable and recurring cash flows typically found in other real estate investments such asREITs. The stock has struggled in recent years, while other investments within the real estate sector have generally performed well.
As such, Hughes is exploring a sale to private investors and other asset holders who would be willing to pay a price more in line with what the company says it's worth.
The company said that it has not set a timetable for the conclusion of its strategic review and that it will update investors when appropriate. CNBC, however, reported that Centerview Partners hopes to complete its review by the end of the summer.
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Joe Tenebrusohas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends The Howard Hughes. The Motley Fool has adisclosure policy. |
Gwyneth Paltrow's Summer Style Boils Down to These 3 Wardrobe Essentials
Gwyneth Paltrow is living it up right now while on vacation with her husband Brad Falchuk. Over the past few days there have been pics of the couple enjoying gelato and taking in the breathtaking views of Florence, Italy. But the most noteworthy part of their envy-inducing trip has to be Paltrow's classic summer style . Actually, the 46-year-old has been dressed to the nines throughout the entire month. Not in a look-at-my-fancy-outfit type of way; Paltrow's style is more of a I'm-cute-and-I'm-not-even-trying aesthetic. It can be tough to get it right when the weather's scorching, but Paltrow has mastered her summer style. Year after year, the actress keeps three essentials in rotation. Below, her unofficial summer uniform. The Matching Set Focus Pictures / BACKGRID A matching set is the ultimate summer style hack. You don't have to worry about finding the right blouse for your shorts, or what pieces work best together. And if you're feeling really ambitious, you can mix and match the separates, thereby doubling your summer outfit options. On Gwyneth: Goop x La Doublej Silk Boy Shirt, $495; goop.com . Goop x La Doublej Boxer Silk Shorts, $265; goop.com . Fitbit Inspire HR, $99; amazon.com . Alexandre Birman Clarita Sneakers, $395; nordstrom.com . The Shirtdress GWYNETHPALTROW/INSTAGRAM A breezy dress is obviously a no-brainer for summer. But a long-sleeve shirtdress that's loose and airy is a more sophisticated approach to sundress season. Paltrow's design has a belt, which gives the boxy fit more of a shape. Pile on the necklaces, throw on your favorite shades, and top things off with a straw hat for the full look. On Gwyneth: G. Label Short Puff-Sleeve Cover-Up Dress, $395; goop.com . Ray-Ban 3025 Large Metal Aviator Sunglasses, $153; saks.com . The Cropped Trousers TheImageDirect.com Paltrow and cropped, wide-leg trousers go way back she's been wearing them since the early 2000s. The pair that Paltrow wore earlier this month while in Los Angeles has a sporty vibe, with a drawstring waist and double stripes along the side. It's perfect for when you want the comfy feel of sweatpants, but don't want to look like a slob. On Gwyneth: Classic Rodarte Graphic T-Shirt ($130; neimanmarcus.com ), G Sport Wide Leg Track Pants, $80; goop.com . |
Why Howard Hughes, iQiyi, and Herman Miller Jumped Today
The stock market largely moved higher on Thursday, driven upward by hopes among investors that a resolution on trade tensions between the U.S. and major global partners could come as soon as this weekend. Fears of an economic slowdown faded into the background, and market participants seem more focused on opportunities in key industries. Some companies made interesting moves that sent their shares higher.Howard Hughes(NYSE: HHC),iQiyi(NASDAQ: IQ), andHerman Miller(NASDAQ: MLHR)were among the top performers. Here's why they did so well.
Shares of Howard Hughes soared 42% after the company revealed that it is reviewing strategic alternatives in an effort to maximize shareholder value. The manager and developer of commercial, residential, and mixed-use real estate said that it had retained Centerview Partners to get assistance in its strategic review. Howard Hughes could make a divestiture, a joint venture agreement, or a spin-off involving a portion of the company's assets, or it could recapitalize the company in an effort to unlock value. Also on the table are changes in corporate structure or even an outright sale of the entire business. Whatever comes, it would mark yet another interesting chapter in thelifespan of an iconic American business.
Image source: Howard Hughes.
Chinese video-streaming specialist iQiyi saw its shares gain 10% as investors got more comfortable with stocks in the world's most populous nation. The company has been a big loser over the past several months, as market participants have started to fear that an economic slowdown in China could cause the trend toward greater video consumption to reverse itself or at least pause temporarily. However, despite strong competition from larger rivals in the internet and e-commerce space, iQiyi is using its leadership role to build a competitive advantage. Today's gains reflectrenewed confidence in iQiyi, even though it has a long way to go to recover fully from its recent slump.
Finally, shares of Herman Miller gained almost 17%. The furniture maker said that it posted record sales during its fiscal fourth quarter, growing 9% from year-ago levels and boosting its bottom line by a third over the same period. Also, the strong results prompted the company to hike its dividend by 6% to $0.21 per share quarterly, with CEO Andi Owen noting that the move "reflects the confidence of the board and our leadership team in the power of our long-term strategy." Toss inHerman Miller's upbeat guidancefor the coming fiscal year, and it all adds up to an upbeat picture for the company for the foreseeable future.
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Dan Caplingerhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Howard Hughes. The Motley Fool recommends iQiyi. The Motley Fool has adisclosure policy. |
How Much Of RMG Limited (ASX:RMG) Do Insiders Own?
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Every investor in RMG Limited (ASX:RMG) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
With a market capitalization of AU$5.5m, RMG is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about RMG.
See our latest analysis for RMG
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Since institutions own under 5% of RMG, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
Hedge funds don't have many shares in RMG. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders maintain a significant holding in RMG Limited. Insiders own AU$1.7m worth of shares in the AU$5.5m company. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
The general public, with a 21% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
It seems that Private Companies own 44%, of the RMG stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Brimhall Foods to Deliver Products Through Blockchain-based Ordering System
United States-based snackfoodcompany Brimhall Foods has partnered with Surge Holdings to deliver its BRIM’S products through ablockchain-based ordering system, according to areportby Foodprocessing-technology.com on June 27.
According to the report, BRIM will be able to use the SurgePays blockchain network to access tens of thousands of new stores.
Surge Holdings CEO Brian Cox says that BRIM will initially offer 15 products through its SurgePays blockchain network. Additionally, Cox remarks that these products can be ordered and replenished by their in-network convenience stores, corner markets, and bodegas.
Additionally, Brimhall Foods Company president Terry Brimhall stated that the partnership will allow Brimhall to gain access to “tens of thousands of additionalretaillocations” without needing to expand its sales team and distribution network.
Surge Holdings is a company that offers the use of its blockchain network to retailers, who can then use the system to purchase products from companies partnered with Surge. Surge intends to be a “virtual distribution hub” that offers “seamless access to global products.”
Many retailers are deploying blockchain technologies to expand their distribution networks. Asreportedby Cointelegraph earlier this week, Walmart China recently partnered with VeChain to use its blockchain technology to track Walmart produce. According to VeChain’s press release:
“It is expected that the Walmart China's traceability system will see traceable fresh meat account for 50% of the total sales of packaged fresh meat, traceable vegetables will account for 40% of the total sales of packaged vegetables, traceable seafood will account for 12.5% of the total sales of seafood by the end of 2020.”
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United Natural Down 37% in 3 Months: Is a Revival Likely?
United Natural Foods, Inc.UNFI is losing footing in investors’ books, thanks to headwinds such as dismal gross margin, supply chain hiccups and high labor cost. Moreover, management’s dismal view for the current fiscal is a downturn. Shares of this Providence, RI-based company have lost approximately 37%, underperforming the industry’s 2.4% growth.Nevertheless, all doesn’t appear gloomy for this Zacks Rank #3 (Hold) stock. The company is witnessing growth across sales channels, supported by strong brands, efficient strategies, robust consumer demand and benefits from buyouts. Let’s take a closer look at both sides of the story.
Hurdles in United Natural’s PathUnited Natural’s gross margin has persistently remained weak, thanks to lower contributions from SUPERVALU and shift in consumer mix. In the third quarter of fiscal 2019, the company’s gross margin contracted 219 basis points year on year to 15.4%. Dismal gross margin along with higher operating expenses weighed on the company’s adjusted operating income during the third quarter.The company has been experiencing challenges at several distribution centers, driven by headwinds such as store closures and slower rate of growth at new stores. These are largely due to sluggish rate of growth for some of the top customers of the company. Moreover, the challenges across some of the distribution networks have led to enhanced transportation, labor and shrink costs.Additionally, management’s updated bottom-line view for fiscal 2019 has been a letdown. United Natural expects the metric to be at a loss of $5.65-$5.85. Earlier, management projected adjusted earnings of $2-$2.40. Also, the company now anticipates adjusted EBITDA to be at the lower end of the earlier guided range of $580-$610 million.Can Efforts Aid a Turnaround?United Natural has been on an acquisition spree over the years in a bid to expand its distribution network and customer base. Some of the notable buyouts include Haddon House, Gourmet Guru, Nor-Cal Produce, Tony’s Fine Foods and Trudeau Distributing Company among others.Moreover, United Natural completed the buyout of SUPERVALU in October 2018. During the third quarter of fiscal 2019, SUPERVALU contributed approximately $3.24 billion to United Natural’s top line. Prior to this, SUPERVALU contributed approximately $3.47 billion and $224 million in the second and first quarter, respectively. Moreover, the merger has provided better competing grounds to United Natural in the grocery space by augmenting offerings.Apart from this, the company is committed toward certain strategic plans such as enhancing customer base, expanding the company’s broadline distribution channel and improving profitability. Also, United Natural is continuously witnessing solid demand for its better-for-you products. It also strives to develop effective sourcing processes and supply chain networks so as to better align supplies with demand and thereby meet consumers’ needs more efficiently.United Natural is also focused on cost-reduction efforts. It is on track to achieve cost savings of more than $36 million in fiscal 2019. Additionally, management retained long-term target of more than $185 million in cost savings by the end of fiscal 2022. The company expects to achieve such savings targets through the reduction of square footage occupied among other efforts to optimize spending.Backed by these aforementioned tailwinds, we expect the company to return on growth trajectory.Key PicksMedifast, Inc. MED has a long-term earnings growth rate of 20% and a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Campbell Soup Company CPB has a long-term earnings growth rate of 5% and a Zacks Rank #2.General Mills, Inc. GIS delivered average positive earnings surprise of 11.1% in the trailing four quarters. It has a long-term earnings growth rate of 7% and a Zacks Rank #2.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 releasedCentury of Biology: 7 Biotech Stocks to Buy Right Nowto 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.See these 7 breakthrough stocks now>>
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 reportUnited Natural Foods, Inc. (UNFI) : Free Stock Analysis ReportCampbell Soup Company (CPB) : Free Stock Analysis ReportGeneral Mills, Inc. (GIS) : Free Stock Analysis ReportMEDIFAST INC (MED) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
CGX Energy Announces Annual and Special Meeting Voting Results
Toronto, Ontario--(Newsfile Corp. - June 27, 2019) - CGX Energy Inc. (TSXV: OYL) ("CGX Energy" or theCompany") announced today that the annual and special meeting of shareholders (the"AGM") was held on Thursday June 27, 2019, where each of the three nominees proposed as directors pursuant to the Company's management proxy circular dated May 13, 2019 were elected as directors. The directors achieved an average approval vote of 99.9% from shareholders. The detailed results of the vote are set out below:
[{"Nominee": "Erik Lyngberg", "Outcome of Vote": "Approved", "Voted": "For: 176,261,653Withhold: 206,127", "Voted (%)": "99.9%0.1%"}, {"Nominee": "Dennis Mills", "Outcome of Vote": "Approved", "Voted": "For: 176,287,938Withhold: 179,842", "Voted (%)": "99.9%0.1%"}, {"Nominee": "Suresh Narine", "Outcome of Vote": "Approved", "Voted": "For: 176,246,023Withhold: 221,757", "Voted (%)": "99.9%0.1%"}]
In addition, the Company announces that at a board of directors meeting following the AGM, the board of directors of the Company re-appointed Professor Suresh Narine as Executive Chairman and Executive Director (Guyana) and Tralisa Maraj as Chief Financial Officer of the Company.
About CGX Energy
CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname Basin.
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
Forward-Looking Statements:
This news release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur in the future. These forward-looking statements are based on certain key expectations and assumptions made by CGX Energy. CGX Energy believes the expectations and assumptions on which it develops forward-looking statements are reasonable; however, undue reliance should not be placed on forward-looking statements as there can be no assurance they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition, other risks that may affect the forward-looking statements in this news release are outlined further in the Company's most recent Annual Information Form on SEDAR atwww.sedar.com.
The forward-looking statements contained in this news release are made as of the date hereof and CGX Energy undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
For further information, please contact:Brooks Lyons, Manager, Commercial & Business Development at (832) 300-3200 orblyons@cgxenergy.comor Tralisa Maraj, Chief Financial Officer at (832) 300-3200
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45963 |
Hydro66 Announces Purchase of Additional ASIC Equipment
Boden, Sweden--(Newsfile Corp. - June 27, 2019) - Hydro66 Holdings Corp. (CSE: SIX) (OTCQB: HYHDF) ("Hydro66" or the "Company") is pleased to announce that is has purchased new mining equipment to expand the Company's cryptocurrency operations at its facilities in Sweden. The new equipment will be fully operational within 10 weeks and will bring Hydro66's total owned ASIC and GPU capacity up to 31.5 PH/s running 2.6 MW of power. The Company also advises that it continues to see a substantial increase in interest in colocation mining requests at its data centre in Boden following the increase in cryptocurrency prices. Alex Johnstone, CFO, stated, " We are very pleased to continue the expansion of our blockchain services operations. The timing is right and we expect to see a significant return on our investment. We continue to explore additional expansion opportunities and will continue to aggressively grow our blockchain and HPC activities at our award-winning Swedish site. " FOR MORE INFORMATION, PLEASE CONTACT: Paul Morrison Chief Commercial Officer of Hydro66 UK Limited paul.morrison@hydro66.com or Jason Atkinson Director of Corporate Development Jason.atkinson@hydro66.com About Hydro66 Hydro66 owns and operates an award-winning colocation data centre in Sweden specializing in High Performance Computing ("HPC") hosting. The Company hosts third party IT infrastructure, utilizing 100% green power, at amongst the EU's lowest power prices and within an ISO27001 accredited facility. Hydro66 is uniquely positioned to capitalize on opportunities in blockchain infrastructure as well as the traditional Enterprise colocation data centre market. The Company provides truly green power at a leading price, purpose-built space and cooling, telecoms, IT support services and 24/7 physical security in their facility in Boden, Sweden. www.hydro66.com Forward-Looking Information Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Certain material assumptions regarding such forward-looking statements may be discussed in this news release and the Company's annual and quarterly management's discussion and analysis filed at www.sedar.com . Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws. Story continues Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this news release. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/45964 |
Karuna Therapeutics IPO: What You Need To Know
Biotech investors seeking a play on the lucrative, yet hard-to-crack central nervous system disorder therapy market have an opportunity this week.
The IPO Terms
Boston, Massachusetts-based Karuna Therapeutics, Inc. plans to offer 4.375 million shares in anIPO, with the pricing estimated between $15 and $17, according to thepreliminary prospectusfiled with the SEC.
The size of the offering is estimated at $70 million at the midpoint of the estimated price range.
The company has applied for listing the shares on the Nasdaq under the ticker symbol "KRTX."
Since Karuna qualifies as an "emerging growth company," it has elected to comply with some reduced public company reporting requirements.
Goldman Sachs, Citigroup, Wells Fargo Securities and Wedbush PacGrow are the underwriters for the offering.
The Company
Karuna focuses on developing novel therapies to address disabling neuropsychiatric conditions characterized by significant unmet need.
The company's lead product candidate KarXT is in a midstage trial for the treatment of acute psychosis in patients with schizophrenia. It expects to release top-line data from the trial in late 2019.
Karuna is also planning to initiate clinical trials of KarXT to evaluate its therapeutic benefit in other central nervous system disorders, including psychosis in Alzheimer's disease as well as pain.
Despite being a highly generic market, worldwide sales of antipsychotic drugs are estimated to exceed $14 billion by 2025, the company said.
The Finances
Karuna reported a pretax loss of $17.51 million in fiscal 2018 and $12.01 million for the three-month period ending in March 2019.
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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
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