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Alaska Air Exec Says Technology Makes or Breaks a Merger
When Charu Jainjoined Alaska Airlines in 2017 as chief information officera couple of months after it acquired Virgin America, she knew was in for a challenge. Each airline had hundreds of technological platforms for everything from crew scheduling to reservations to maintenance, and all would need to come together.
Jain had been through this before, at United Airlines, where she was a senior managing director of operations technology and technology integration during its merger with Continental Airlines. While at United, she learned a valuable lesson about melding airline technology: It doesn’t have to be perfect, but it must work.
“Technology is one of two things that can really make or break a merger,” she said Thursday at the Skift Tech Forum in San Francisco. “Success is: Don’t end up in the news. That’s what we go for.”
By most accounts, Alaska succeeded. The airline has had some hiccups merging corporate cultures — former Virgin America employees sometimes complain about Alaska’s staid, risk-free approach — but it has had few of the technological snafus that have plagued other airline mergers.
The media often picks up on technology troubles. When United struggled in 2012 when it merged two reservations systems,with travelers reporting problems with the airline’s website and airport kiosks,reporters wrote stories questioning the airline’s approach. But journalists hardly noticed Alaska’s April 2018 system cutover, and when they did,they were complimentary.
Most travelers probably don’t understand how complicated it is to combine the technological functions of two airlines.
Jain said Alaska had about 450 systems running its front-and back-end operations, while Virgin America had about 250. The combined company also had, for awhile, seven different data centers and two different networks.
One of her first tasks, she said, was deciding the order of integration.
“When you start thinking about bringing it together, one of the learnings has been, how do you create this master plan of what should go first, second and third?” she said.
In this case, she said, the airline prioritized what it saw as “anchors,” or systems that were customer-facing or vital to operations. With those projects finished, Alaska is focusing on integrating the technology its maintenance and engineering teams use.
“As soon as you announce the merger, everyone in the company wants to move ahead,” Jain said. “You can only bring your business processes together when you bring the underlying technology together. It’s like you’re at a horse race. Everyone is ready to go out of the gate, but the track hasn’t even been laid yet.”
Jain, who worked on American Airlines’ merger integration as a consultant for IBM Global Business Services, said merging airlines sometimes run the same systems, but even then, combining them is a challenge. For example, Alaska and Virgin America used a passenger reservations system from Sabre, but both had customized it so much that they were essentially running different platforms.
“In all my mergers, what I have found is that there is not that much [commonalty] even though we are all trying to do the same thing,” she said.
One problem with airline mergers is that IT teams become so focused on integration that they move slower on everything else.
To some extent, that has happened at Alaska, which probably has been not embraced digitalization or even fast onboard WiFi with the same gusto as its competitors. (Alaska did recently beginadding better internet to its planes.)
Jain suggested the airline will return to innovating soon. She said Alaska is working on a platform that would allow customers to use their tablets and and phones to place orders for food and drinks during the flight. Virgin America let customers place orders on their seat-back screens, and flight attendants would deliver it, but that functionality disappeared as Alaska removed screens from planes to save costs and weight.
“That is one thing we have on our roadmap to do through the mobile app,” she said.
Alaska has other priorities, too. Jain said it wants to become more nimble in how it interacts with customers, so it can remove friction and provide a “hassle-free” experience. Alaska would also like improve its customer interaction so it is a “all seamless and continuous,” rather than disjointed.
“So it’s not like I’m a guest at the airport, and I’m different on the flight, and I’m different when I’m on digital or calling the call center,” she said. “Wherever you interact with us, you should get that same consistent experience and it’s relevant, so we know you and we get you.”
More generally, she said Alaska wants to treat its customers as other consumer brands treat theirs.
“We really need to understand everything from the guest point of view,” she said. “And their point of view is actually being influenced by a broader ecosystem. Their retail expectations are influenced by Amazon and it is very easy to transact. They want their time at the airport to be like sitting at a Starbucks or maybe shopping at a Whole Foods. We need to understand from other industries.”
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Toys R Us workers win $2 million severance settlement year after stores closed
One year after Toys R Us shut its doors, a group of workers who lost their jobs are set to receive a$2 million severance settlement.
Judge Keith L. Phillips of the Eastern District of Virginia on Thursday approved the settlement for 33,000 employees who were laid off after the toy company filed for bankruptcy last year.
The settlement was the result of a class action claim filed last year by Ann Marie Reinhart Smith, a 30-year Toys R Us employee, on behalf of all employees laid off without severance.
“After being so loyal to the company, to be let go without our promised severance is disrespectful," Reinhart Smith said in a statement. "We’re grateful we achieved this class-action settlement. It’s an important milestone for working families like mine who are so vulnerable to Wall Street’s greed."
Last year, Reinhart Smith, a grandmother from North Carolina, became the public face of laid-off Toys R Us employees, and appeared in news articles and met with Sen. Bernie Sanders, on behalf of the workers.
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On Thursday, Reinhart Smith called the settlement "bittersweet" and said the case highlights what she described as holes in the bankruptcy process that prevents employees from being paid in full.
Jack Raisner, a partner in the law firm Outten & Golden LLP that represented the workers, echoed a similar sentiment.
“After nearly a year, employees laid off by Toys ‘R’ Us are finally getting something to show for their steadfast service,” Raisner said in a statement. “It’s a shame they aren’t getting more, but this settlement sends a message that employees deserve a place in the front of the line of creditors when businesses fail, and that is important to people who work in retail and their families."
About 33,000 workers, many of whom stayed at their jobs in the U.S. stores until the end of June 2018 when all stores closed, had said they originally were promised severance when the liquidation was announced, but soon after were told no one would receive the payout.
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After pushback from workers groups, two private equity owners of the iconic toy chain, KKR and Bain Capital,set up a $20 million hardship fundfor the thousands of former workers last fall. The fund wasn’t legally required, and the workers backing the groups called it an “unprecedented” step toward helping families caught up in the store closures and bankruptcies that have roiled the fast-changing retail industry.
This week's settlement is the latest in the retailer's retailers' year-long bankruptcy case, which is in its final stages.
In February, former Toys R Us executives announced the start of a new company calledTru Kids Inc.that will be doing business as Tru Kids Brands. Last week, Bloomberg reported the company was looking to opena half dozen stores and a new e-commerce siteahead of holiday shopping.
Contributing: Associated Press; Kelly Tyko
Follow Melanie Anzidei on Twitter:@melanieanzidei
This article originally appeared on North Jersey Record:Toys R Us workers win $2 million severance settlement year after stores closed |
UPDATE 1-Brazil sees steady decline in inflation, sets 2022 target at 3.5%
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BRASILIA, June 27 (Reuters) - Brazil's top economic policy body on Thursday set its inflation target for 2022 at 3.5% with a tolerance margin of 1.5 percentage points on either side, reflecting a gradual and steady decline in expected inflation over the coming years.
The National Monetary Council (CMN) kept its targets for this year, next year and 2021 at 4.25%, 4.00%, and 3.75%, respectively, all also with the 1.5 percentage point margin of error.
Earlier on Thursday, the central bank's Quarterly Inflation Report showed that in the bank's base-case forecast, with constant foreign exchange and interest rates, inflation out to 2021 will likely come in below these targets and not top 4.0%.
In a press conference following the announcement of the CMN's initial target for 2022, Economy Ministry officials said a lower inflation target does not imply that interest rates will have to rise in order ensure the target is met.
"You do not need to do this," economic policy secretary Adolfo Sachsida told reporters. "It's important to have a low inflation target because that is what anchors inflation expectations."
Inflation in Brazil is expected to continue slowing in the coming months in large part because economic growth is so weak. The economy contracted in the first quarter, and on Thursday the central bank slashed its 2019 growth forecast to 0.8% from 2.0%.
Weak consumer demand and business investment, high unemployment and a huge degree of slack across the economy are all contributing to softening inflationary pressures.
The central bank's weekly 'FOCUS' survey of around 100 financial institutions shows that economists' average inflation forecast for 2021 and 2022 stands at 3.75%. (Reporting by Mateus Maia Writing by Jamie McGeever; Editing by Lisa Shumaker and James Dalgleish) |
NASA picks Dragonfly mission to send a nuclear drone to Saturnian moon Titan
An artist’s conception shows the Dragonfly probe on the dunes of Titan. (NASA / JHUAPL Illustration) NASA has chosen to commit up to $850 million to creating an interplanetary probe unlike any seen before: a rotor-equipped spacecraft that will fly through the smoggy atmosphere of Titan, Saturn’s biggest moon. The Dragonfly mission will be managed by Johns Hopkins University’s Applied Physics Laboratory on NASA’s behalf, with its launch scheduled for 2026 on a rocket to be named later, and its landing due amid the dunes of Titan in 2034. This won’t be the first landing on Titan: That happened back in 2005 , when the Cassini spacecraft dropped off the Huygens lander to send back the first pictures from the moon’s cloud-obscured surface. Observations from Cassini and Huygens confirmed that chilly Titan held rivers and lakes of liquid methane and ethane, and that methane fell like rain on the icy terrain. “Titan is the only other place in the solar system known to have an Earthlike cycle of liquids flowing across its surface,” Thomas Zurbuchen, NASA’s associate administrator for the Science Mission Directorate, said in a tweet . “Dragonfly will explore the processes that shape this extraordinary environment filled with organic compounds – the building blocks to life as we know it.” Today’s announcement was the climax of a years-long process to choose the next mission for NASA’s New Horizons portfolio, which supports projects costing no more than $850 million. Past selections include the New Horizons mission to Pluto and the Kuiper Belt, the Juno mission to Jupiter . and the OSIRIS-REx mission to bring back a sample from asteroid Bennu. Dragonfly was chosen over the other finalist, CAESAR (Comet Astrobiology Exploration SAmple Return), which proposed bringing back samples from the comet that was visited by the European Space Agency’s Rosetta probe . Word of the decision sparked cheers of joy and sighs of disappointment on Twitter, as well as at gatherings such as the Astrobiology Science Conference in Bellevue, Wash. Story continues How did #AbSciCon19 feel about the #Dragonfly announcement? Sound on pic.twitter.com/aCfG1ast8w — Laura Fattaruso (@labtalk_laura) June 27, 2019 Dragonfly is shaping up as the first full-featured space mission to take advantage of extraterrestrial aerodynamics, following in the rotor wash of the experimental helicopter that’s due to be included on NASA’s 2020 Mars rover . It’s basically a dual-quadcopter that draws power from a plutonium-fueled nuclear electric generator. JHUAPL’s Elizabeth Turtle, the mission’s principal investigator, acknowledged that a flying space probe may sound unorthodox. But she insisted that the golf-cart-sized craft would be better-suited to the Titan environment than a wheeled rover. Titan’s atmosphere is four times as dense as Earth’s at the surface, and its gravity is only one-seventh of Earth’s, she said. “Flying on Titan is actually easier than flying on Earth … so it’s the best way to travel, and it’s the best way to go long distances,” Turtle said during a NASA webcast. If something looks interesting at a site several feet away, Dragonfly could hop on over to take an up-close look, said Curt Niebur, lead program scientist for the New Frontiers program at NASA Headquarters. It could also fly long distances for a total change of scenery. The current itinerary calls for the probe to travel from the Shangri-La dune fields to the 50-mile-wide Selk Crater, which is thought to hold evidence of organic chemicals and past reservoirs of liquid water. Mission planners expect Dragonfly to take a couple of dozen flights and fly a total of 110 miles over the course of its 2.7-Earth-year baseline mission. And they hope the probe will last significantly longer than that, following the examples set by NASA’s long-lived Mars rovers. The spacecraft and its instruments are currently in development, with testing conducted under Titan-like conditions at JHUAPL and other locations. The 10-foot-long spacecraft will be equipped with two drills built into its skids, and suction tubes designed to transfer the drilled-out material into a mass spectrometer for analysis. There’ll be a gamma-ray and neutron spectrometer, plus an onboard neutron generator, to check out the chemical composition of Dragonfly’s surroundings. A seismometer and geophones will document Titan’s quakes and gain insights into the nature of the Saturnian moon’s frozen crust of water ice. There’s even a chance of documenting ice volcanoes. Titan’s nitrogen-rich atmosphere and its surfeit of organic chemicals have led some scientists to compare its environment to what might have existed on Earth billions of years ago, before the emergence of life. One big difference has to do with the chilly weather: Average surface temperature is in the range of 290 degrees below zero Fahrenheit, or -180 degrees Celsius. Some even speculate that Titan’s low temperatures and the absence of atmospheric oxygen could allow for exotic silicon-based life . Starting in 2034, we just might find out if that’s the case. More from GeekWire: Breakthrough Discuss turns spotlight on search for life elsewhere in solar system India sends Chandrayaan 2 probe toward the moon’s south pole for historic landing All systems go for Mars InSight landing: Here’s how to watch online and in person After media mix-up, China says Chang’e-4 makes first landing on moon’s far side |
Investors Who Bought Citychamp Watch & Jewellery Group (HKG:256) Shares Five Years Ago Are Now Up 76%
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Stock pickers are generally looking for stocks that will outperform the broader market. Buying under-rated businesses is one path to excess returns. For example, theCitychamp Watch & Jewellery Group Limited(HKG:256) share price is up 76% in the last 5 years, clearly besting than the market return of around 4.5% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 11% in the last year.
Check out our latest analysis for Citychamp Watch & Jewellery Group
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Citychamp Watch & Jewellery Group's earnings per share are down 18% per year, despite strong share price performance over five years. Essentially, it doesn't seem likely that investors are focused on EPS. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.
It is not great to see that revenue has dropped by 3.0% per year over five years. It certainly surprises us that the share price is up, but perhaps a closer examination of the data will yield answers.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Take a more thorough look at Citychamp Watch & Jewellery Group's financial health with thisfreereport on its balance sheet.
Investors should note that there's a difference between Citychamp Watch & Jewellery Group's total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that Citychamp Watch & Jewellery Group's TSR of 97% over the last 5 years is better than the share price return.
It's good to see that Citychamp Watch & Jewellery Group has rewarded shareholders with a total shareholder return of 11% in the last twelve months. However, that falls short of the 15% TSR per annum it has made for shareholders, each year, over five years. Before forming an opinion on Citychamp Watch & Jewellery Group you might want to consider these3 valuation metrics.
We will like Citychamp Watch & Jewellery Group better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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. |
All Eyes on the G-20 Summit: ETFs to Gain
Investors have been long waiting for a truce between the world’s strongest economies since the trade war begun in July 2018. After the upheaval Trump caused with his tweet on May 5 this year, the longing for cease-fire in this “attack and retaliation” game is even stronger. In such a scenario, all investors are closely watching every development in relation to the Group of 20 leaders summit in Japan.
Asian markets were observed to be trading higher during early hours on Thursday buoyed by optimism surrounding positive results from the G-20 summit meet between Presidents Donald Trump and Xi Jinping. Accordingly, Japan’s NIKKEI 225 Index rose 1.19%, Hong Kong’s Hang Seng Index was up 1.16% and Shanghai Composite Index climbed 0.54%. Indices in South Korea, Singapore, Indonesia and Australia also moved up.
What’s Fueling the Optimism?
Per a South China Morning Post article, Trump and Jinping have possibly agreed to resume trade talks and head for a truce. In this regard, Trump is set to postpone the imposition of tariffs on the remaining $300 billion of Chinese imports which covers almost all exports from China to the United States. However, nothing can be said with certainty before formal announcements are made.
Moreover, US Treasury Secretary Steven Mnuchin said that a trade deal between United States and China is “90 per cent completed,” in an interview with CNBC on Wednesday. Also, Trump has been stressing on the importance of a truce for the Chinese economy. In an interview with Fox Business Network, he said “the Chinese economy’s going down the tubes. They want to make a deal more than I do.”
Why is a Truce Needed?
A war takes its own shape, no matter which side wages it. Both the economies have been facing high tariffs with certain important economic fundamentals like manufacturing levels, consumer sentiment and trade deficit being hurt in the past year. In such a scenario, a truce is necessary for the well-being of both the economies.
What Does US Have at Stake?
Possibly triggered by Trump’s imposition of higher tariffs on $200 billion of imports from China in May, the U.S. merchandise-trade deficit widened to a five-month high level ( per a Bloomberg article). The international-trade deficit was $74.5 billion in May, up $3.6 billion from $70.9 billion in the prior month. It is assumed, the 3.7% rise in imports may have been caused by advance placement of orders to escape the new tariffs that were to be effective from Jun 1. Analysts believe that further elevation in the trade deficit can hurt the GDP of the country.
Moreover, looking at the other side, imposition of tariffs by China on U.S. imports is making U.S.-made goods expensive, thus impacting exports adversely.
How is it Hurting China?
The Chinese economy has been grappling with slowing growth momentum, slumping industrial growth, shrinking investments and softening retail sales, among others. In fact, industrial production growth in May slipped to a 17-year low. Furthermore, there are rising concerns over the health of the financial system of the economy, with the takeover of Baoshang Bank by the government because it was facing serious financial crisis. Moreover, the Chinese interbank lending rate has been observed to decline to its lowest level in a decade.
In such a scenario, worsening of trade ties with America might make it difficult for the Chinese economy to meet its 6-6.5% economic growth forecast for 2019. Notably, The International Monetary Fund recently slashed its China forecast for economic growth in 2019 to 6.2% over an escalating trade spat with the United States.
ETFs to Gain
If the truce talks between the nations work out, the ETFs which are heavily weighted on sectors like technology, automobiles and commodities are expected to gain. Also, strength in growth-oriented domestic and global funds is expected.
Here are a few ETFs to watch out for in case things take a positive turn —
Technology Select Sector SPDR FundXLK
The Technology Select Sector SPDR Fund seeks to provide investment results which, before expenses, correspond generally to the price and yield performance of the Technology Select Sector Index. The fund charges an expense ratio of 0.13%. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Tech Stocks Log Seven-Year Best Spell: ETF Winners).
Vanguard Information Technology ETFVGT
The Vanguard Information Technology ETF seeks to track the performance of the MSCI US Investable Market Information Technology 25/50 Transition Index. The fund charges an expense ratio of 0.10%. It has a Zacks ETF Rank #1 with a Medium risk outlook (read: How China Could Retaliate Huawei Ban & Its Impact on ETFs).
Invesco Golden Dragon China ETFPGJ
This fund follows the NASDAQ Golden Dragon China Index, which offers exposure to the U.S. exchange-listed companies that are headquartered or incorporated in the People’s Republic of China. The fund charges an expense ratio of 0.70%. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: China Disappoints With Sluggish Numbers: 5 ETFs in Focus).
Vanguard FTSE Pacific ETFVPL
The Vanguard FTSE Pacific ETF tracks the performance of the FTSE Developed Asia Pacific All Cap Index. The fund charges an expense ratio of 0.09%. It has a Zacks ETF Rank #3 (Hold) with a Low risk outlook.
SPDR S&P 500 ETFSPY
The SPDR S&P 500 ETF seeks to provide investment results which, before expenses, correspond generally to the price and yield performance of the S&P 500 Index. The fund charges an expense ratio of 0.09%. It has a Zacks ETF Rank #2 with a Medium risk outlook.
Vanguard Growth ETFVUG
The Vanguard Growth ETF seeks to track the performance of the CRSP U.S. Large Cap Growth Index. The fund charges an expense ratio of 0.04%. It has a Zacks ETF Rank #1 with a Medium risk outlook (read: 5 Ultra-Cheap Top-Ranked Growth ETFs to Buy Now).
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportVanguard FTSE Pacific ETF (VPL): ETF Research ReportsInvesco Golden Dragon China ETF (PGJ): ETF Research ReportsVanguard Information Technology ETF (VGT): ETF Research ReportsVanguard Growth ETF (VUG): ETF Research ReportsTechnology Select Sector SPDR Fund (XLK): ETF Research ReportsSPDR S&P 500 ETF (SPY): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report |
Zero Interest Rates Ahead?
Reflecting on thelatest budget projectionsfrom the Congressional Budget Office, which show relentlessly rising debt and interest costs over the next 30 years, Bloomberg’s Noah Smith says that one possible response to the problem involves a policy economists call “fiscal dominance.” Here’s how it would work:
“The government thus has a good reason not to let debt spiral out of control. And the easiest way to keep that from happening is for the Federal Reserve to cut interest rates to zero and keep them there. As the government replaces its old, higher-interest debt with new, lower-interest debt, its yearly interest payments would go down, until finally they dwindle to nothing at all. Doing this would stabilize the deficit, and even open up fiscal space for big new spending initiatives on issues like climate change.”
Japan has been using this approach for years, Smith says, as the country deals with a national debt more than twice as large as its economy. While the policy may not work the same way in the U.S. and necessarily creates its own set of risks, the Japanese case suggests that “fiscal dominance” may be an attractive and perhaps necessary option at some point over the next few decades.
ReadSmith’s column here.
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Court Raises New Threat to Obamacare
A federal court on Wednesday added a new and potentially disruptive wrinkle to the ongoing lawsuit that seeks to overturn the Affordable Care Act.
The suit, initiated last year by a group of Republican governors and state attorneys general, claims that the ACA became invalid once Congress effectively eliminated its mandate requiring people to buy health insurance. A U.S. district court judge in Texas ruled in the plaintiffs’ favor in December, declaring the ACA unconstitutional, and the Trump administration in March announced that it supported the lawsuit – leaving only House Democrats and more than a dozen blue state attorneys general led by California to appeal the ruling.
Now an appeals court is questioning whether the Democratic lawmakers are legitimate participants in the case. Ahead of a July 9 hearing, a Fifth Circuit panel asked the parties appealing the case to defend their standing to intervene and whether their intervention has been timely. The filing issued Wednesday also raised the question of whether there is a legitimate “live case or controversy” at stake, and what would happen if it were determined that no party had legal standing to appeal the ruling.
What’s next:The request raises the possibility that the appeal of the ruling in Texas could be tossed out on procedural grounds, leaving the judge’s declaration that the ACA is unconstitutional in place and potentially causing chaos in the U.S. health care system. “The odds that the Fifth Circuit does something nasty to the health-reform law have gone up,” University of Michigan law professor Nicholas Bagleysaid. But that outcome is still unlikely, most legal experts say, and the case is expected ultimately to end up in the Supreme Court.
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The Latest: Marine testifies SEAL did not stab Iraq captive
SAN DIEGO (AP) — The Latest on the trial of a decorated Navy SEAL charged with killing an Islamic State prisoner in his care (all times local): 3 p.m. A Marine who worked jointly in Iraq with a decorated Navy SEAL accused of murder testified that the SEAL did not stab a young Islamic State prisoner in his care. Marine Staff Sergeant Georgio Kirylo said Thursday that he did not see stab wounds on the neck of the dead captive when he moved the body to position it for a so-called "trophy" photo. Two SEALs previously testified that they saw Special Operations Chief Edward Gallagher plunge a knife into the prisoner's neck. Kirylo's statements follow testimony of an Iraqi general who said he was with the prisoner until he died, and that he did not see Gallagher stab him. Kirylo described Gallagher as an "old school" SEAL whose younger team members sometimes complained about his tactics. Gallagher has pleaded not guilty to murder and attempted murder. ___ 12:30 p.m. An Iraqi general whose forces were partnered with U.S. troops in Iraq testified that he handed over a wounded Islamic State militant to Navy SEALs in 2017 to keep him alive for interrogation. General Abbas al-Jubouri gave his testimony June 3 in the San Diego court-martial of SEAL Chief Edward Gallagher, who is accused of fatally stabbing the adolescent militant. Video of the testimony was shown to the jury on Thursday. Gallagher has pleaded not guilty to murder and attempted murder. The Iraqi general said he did not see Gallagher harm the captive in any way. Two SEALs say they witnessed Gallagher plunging his knife into the prisoner's neck. The general said the militant told him he was 17 years old. ___ 12:10 a.m. Navy SEAL who testified that it was he — not his platoon chief — who killed a wounded prisoner in Iraq may face perjury charges. After telling prosecutors that he had seen Special Operations Chief Edward Gallagher stab the Islamic State militant in 2017 in Iraq, fellow SEAL Corey Scott testified last week that he, in fact, killed the adolescent by plugging his breathing tube. Story continues Scott was a prosecution witness in Gallagher's San Diego court-martial. Gallagher has pleaded not guilty to murder and attempted murder. The Navy said Wednesday that it notified Scott's lawyer that his testimony could be used against him if he lied on the stand after being granted immunity from prosecution. Scott's lawyer declined to comment. |
Khloé Kardashian's Birthday Gift From Kim is 7 Inches Worth of Fun!
Kim Kardashian 's birthday gift to Khloé is long, strong and worth $4,500! The KKW Beauty founder showed off a Judith Leiber crystal eggplant purse to her followers on Thursday, saying this bundle of fun was going directly to the birthday girl because "she loves it." Displaying the 7 inch eggplant silhouette, Kim goes even further, poking fun at her little sister's passion for the ahem ... fruit. "For Khloe's birthday I got her this Judith Leiber bag of an eggplant and I just thought it was really fitting for her and she loves it guys," Kim says. "So, she's definitely getting some eggplant for her birthday." Awkwardly enough, you can hear kids in the background, as well as Scott Disick who screams "she really needs some eggplant!" Kim's gift is a pricey one, sitting at a little under $5,000, and is in high demand (go figure) . The purple and green Judith Leiber Crystal Eggplant Minaudiere is only 2.2" deep, but it is definitely a showstopper. With gold hardware and leather lining, Khloé's eggplant purse will be sure to compliment any outfit and can easily get passed around between the sisters. Khloé has had quite the day so far, with her ex-boyfriend and baby daddy, Tristan Thompson , coming out of the blue with a sentimental birthday post to the star. "You are the most beautiful human I have ever met inside and out," he stated, while sharing an adorable pic of Khloé and True . "Thank you for being an amazing mommy to our princess True. She is blessed to have someone like you to look up to." He even added some well wishes for his ex and signed off with her nickname. "I wish you nothing but more success and sending you positive blessing your way. Enjoy your day Koko," he wrote. Like everyone, we were excited to read the responses anticipating fans to attack, but as we reported, he limited his comments -- only allowing people he follows to comment on the message. |
Putin's focus is now on Boris Johnson and Jeremy Corbyn
At the start of the year, Vladimir Putin was speaking of the need to improve the relationship between Britain and Russia after it plummeted to one of its lowest levels since the Cold War with the novichok attack in Salisbury. “In my mind, UK-Russian relations are at a dead end and it’s in the interests of both sides to get out of this dead end,” he declared at a press conference, stressing that it was in the interest of both nations to have a diplomatic thaw. The Russian president pointed out that his country topped the list of direct investors in the UK in the year, and while there had been a lack of dialogue in the political sphere, there were plenty of productive talks at a business level. However, asked about Sergei Skripal and his daughter Yulia, Mr Putin’s response was to retreat to talk of British and Western propaganda and insist that the Kremlin had nothing whatsoever to do with the poisoning in Salisbury. Theresa May ’s stated intention to raise the chemical agent attack and demand the extradition of the two men charged in the UK of carrying it out – Alexander Petrov and Ruslan Boshirov, members of the military intelligence service GRU – will not lead to Mr Putin giving ground on the matter. Not only does Russia not extradite its citizens to face trials abroad, the president – whose popularity has been falling at home from its normal high – is not going to alienate his power base among the past and present members of the security apparatus. At the same press conference in Moscow, the Russian president advised the UK to get on with Brexit , wanting to point out that “otherwise it wasn’t really a referendum”. Critics of Putin’s Russia hold that one of its primary aims is to weaken the Western alliances, Nato and the European Union, as it has shown by interfering in elections across the continent and investing in populist parties. In this context, Brexit Britain is a good target to cultivate. But Moscow will be focusing on Boris Johnson and Jeremy Corbyn, the probable future occupants of No10, to do this – not Theresa May. The brutal fact is that she is now a figure of the past, and whatever she demands or not of Vladimir Putin will have little impact in the future relations between the two countries. |
House Passes $4.6 Billion Border Bill—But Will Trump Sign It?
The Democratic-controlled House voted Thursday to send President Donald Trump a bipartisan, Senate-drafted, $4.6 billion measure to care for migrant refugees detained at the southern border, capping a Washington skirmish in which die-hard liberals came out on the losing end in a battle with the White House, the GOP-held Senate and Democratic moderates.
The emergency legislation, required to ease overcrowded, often harsh conditions at U.S. holding facilities for migrants seeking asylum, mostly from Central American nations like Honduras and El Salvador, passed by a bipartisan 305-102 vote. Trump has indicated he’ll sign it into law.
Dozens of liberal Democrats opposed the bill, reluctantly brought to a vote by House Speaker Nancy Pelosi, D-Calif., after her plan to further strengthen rules for treatment of migrant refugees ran into intractable opposition from Republicans and Vice President Mike Pence. Many moderate Democrats split with Pelosi as well, undercutting her efforts, which faded shortly after Senate Majority Leader Mitch McConnell, R-Ky., said he would swiftly reject them.
The legislation contains more than $1 billion to shelter and feed migrants detained by the border patrol and almost $3 billion to care for unaccompanied migrant children who are turned over the Department of Health and Human Services. It rejects an administration request for additional Immigration and Customs Enforcement detention beds, however, and contains provisions designed to prevent federal immigration agents from going after immigrants living in the country illegally who seek to care for unaccompanied children.
The funding is urgently needed to prevent the humanitarian emergency on the U.S.-Mexico border from worsening. The government has warned that money would run out in a matter of days.
The Senate bill passed Wednesday by a 84-8 vote, with Democrats there pleased with the deal they cut with Republicans controlling the chamber. The measure was initially only reluctantly accepted by the White House — which complained about elimination of the request for detention bed for immigrants facing removal from the U.S. — but GOP support grew after the measure presented an opportunity to outmaneuver Pelosi.
“We could have done so much better,” Pelosi said in a floor speech. Earlier, Pelosi pushed a plan to ping-pong the Senate-passed bill right back across the Capitol with provisions requiring more stringent care requirements for detained migrant families and other steps. But confronted with splintering unity in the Democratic rank and file and intractable opposition from McConnell, Pelosi changed course.
Vice President Mike Pence and Pelosi had an hour-long conversation on the legislation Thursday as the White House and Republicans kept pounding the message that the only way forward on the long-sought legislation is to pass the Senate bill.
The leaders of the HouseProgressiveCaucus, which includes almost half of House Democrats, immediately issued a statement calling the Senate bill — which had the backing of Minority Leader Chuck Schumer, D-N.Y. — “entirely insufficient to protect vulnerable children in our care.”
“Standing up for human rights requires more than providing money,” said Rep. Ro Khanna, D-Calif.
Thursday’s outcome was a victory for McConnell, who vowed that the GOP-held Senate would kill any “partisan” House changes that the Democratic-controlled House passed, and he appeared to hold a strong hand. All sides agreed that Congress wouldn’t leave for its Independence Day recess until the measure was passed in some form.
“The United States Senate is not going to pass a border funding bill that cuts the money for ICE and the Department of Defense. It’s not going to happen. We already have our compromise,” McConnell said. He called the Senate bill, “the only game in town.”
McConnell said the White House might support making some changes administratively — which have less than the force of law — to address some Democratic concerns.
In fact, Pence agreed that lawmakers would be notified within 24 hours when a child died in custody, said people familiar with his call with Pelosi. The vice president also agreed to the 90-day time limit for migrant children to be housed in influx facilities.
Meanwhile, pressure built on lawmakers whose constituents are upset by accounts of brutal conditions for detained children. And, with lawmakers eager to break for a 10-day July 4 recess, internal pressure built on Democrats to wrap it all up quickly.
“The Administration sent its request for emergency funding eight weeks ago, but there was no action,” said Sarah Sanders, outgoing White House press secretary. “We have already negotiated a broadly supported bipartisan funding bill. It is time for House Democrats to pass the Senate bill and stop delaying funding to deal with this very real humanitarian crisis.”
Lawmakers’ sense of urgency to provide humanitarian aid was amplified by recent reports of conditions in a windowless Border Patrol station in Clint, Texas, where more than 300 infants and children were being housed. Many were kept there for weeks and were caring for each other in conditions that included inadequate food, water and sanitation.
The Border Patrol reported apprehending nearly 133,000 people last month — including many Central American families — as monthly totals have begun topping 100,000 for the first time since 2007.
At her weekly news conference, Pelosi choked back tears when asked about an Associated Press photo of a migrant father and daughter killed crossing the Rio Grande River as she pushed for stronger protections in a border crisis funding bill.
Pelosi told reporters Thursday she’s a “lioness” when it comes to children. She called it a “shame that this should be the face of America around the world.”
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What Should Investors Know About Jacobson Pharma Corporation Limited's (HKG:2633) Growth?
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The latest earnings release Jacobson Pharma Corporation Limited's (HKG:2633) announced in June 2019 showed that the business gained from a strong tailwind, leading to a double-digit earnings growth of 24%. Investors may find it useful to understand how market analysts view Jacobson Pharma's earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
View our latest analysis for Jacobson Pharma
Analysts' outlook for next year seems optimistic, with earnings expanding by a robust 20%. This growth seems to continue into the following year with rates arriving at double digit 39% compared to today’s earnings, and finally hitting HK$409m by 2022.
Although it’s useful to be aware of the growth rate year by year relative to today’s figure, it may be more valuable to gauge the rate at which the business is growing every year, on average. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of Jacobson Pharma's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 16%. This means, we can anticipate Jacobson Pharma will grow its earnings by 16% every year for the next few years.
For Jacobson Pharma, there are three key factors you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is 2633 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 2633 is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 2633? 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. |
Where Are All The Black BookTubers?
(Photo: ) In March of this year, YouTube aired an original special called BookTube: A Discussion With Michelle Obama to promote her autobiography, “ Becoming .” I was super excited to watch because #ForeverFlotus, but also because it seemed that the niche YouTube community for book lovers that I have long adored was finally getting some mainstream attention. The former First Lady was amazing as usual, and the discussion about her autobiography was engaging. But none of the BookTubers in the special were Black. Yes, there were Black women in the room but they weren’t BookTubers, or YouTubers who make content specifically about books and reading. Everyone else in the room was white. “The Michelle Obama thing, my mouth just dropped. It was such a missed opportunity. Why wouldn’t you get a Black female BookTuber for Michelle Obama’s book?” India Hill Brown , who’s been making BookTube videos on her channel “Books and Big Hair” for five years, told me. It does seem strange that the many Black BookTubers who’ve been making content for years wouldn’t get to participate in a BookTube special with the first Black First Lady of the United States. Perhaps the powers that be ran into the same problem that I and other BookTube fans and content creators have run into far too often over the years : They can’t find any popular Black BookTubers. “For the person being introduced to BookTube for the first time, especially if you’re a Black viewer, the thing that I always say is just be prepared to have to look for yourself,” said Christina Marie , a Black BookTuber who’s been making videos since 2006. “You have to really look. It’s not going to be the first [video] you see, not first five or the first ten, it might not even be on the first friggin’ page. You always have to do more in order to find, honestly, less!” Marie isn’t the first person to bring up this issue. Multiple Black content creators across genres have noted they lack the same exposure and promotion as their white peers on YouTube. YouTube responded to criticism from Akilah Hughes of the Youtube channel “Akilah Obviously” in 2016 by hosting their inaugural YouTube Black event , a conference specifically for and about Black content creators. Google declined a HuffPost request for comment on its current plans to promote diverse content on YouTube. Story continues It’s no surprise that it’s difficult to find and elevate Black BookTubers when Black authors, editors and book characters are hardly over-saturating the literary world. Only 4 percent of employees across major publishing houses identified as Black, according to a 2015 diversity survey conducted by Lee & Low Books . The same study showed that only 1 percent of book reviewers utilized by these publishing houses identified as Black. “The Black female community is the biggest consumer of books yet the industry still doesn’t give us the range,” explained Jennifer Baker , a writer, editor and host of the podcast, Minorities In Publishing . “Book bloggers aren’t getting access to [review] materials because to publishers, they’re not seen as a viable marketing tool. The industry is not even reaching out to the alternate communities that are available and [is instead] focusing on the large, white dominant ones. So if you’re a Black blogger or BookTuber, that’s even more work. And that’s segregation and that’s racism and that’s all these things whether people want to say it or not.” The BookTube community of all races is vocal about the lack of diversity in publishing and especially on the platform. Still, the racial disparity persists. Some of the most watched non-Black BookTubers like Jesse The Reader , Katytastic and Ariel Bissett (all of whom were invited to interview Michelle Obama) boast an average of over 100,000 subscribers each. The most popular African American-identifying BookTuber, Naya Reads And Smiles , has just over 56,000 subscribers, not even a fourth of the most popular BookTuber, Christine Riccio of PolandbananasBOOKS , who has over 400,000 subscribers. So how can a Black BookTuber and book lover find success when the publishing industry, the Youtube platform and societal inequities seem to be working against them and keeping them in the margins? HuffPost reached out to four Black BookTubers to find out how and why they keep making videos about their love of books and reading despite their ongoing lack of exposure. Below, they share in their own words what it’s like to be a Black reader and reviewer, and what they’d like to see change not only on YouTube, but in the literary world and society as a whole. India Hill Brown, BooksAndBigHair On Youtube since 2014, 6.7K subscribers I would say BookTube has a diversity problem. When I started my channel, I did feel like people were very welcoming and friendly but I noticed immediately I could not find any other Black person . I felt like I was the only Black person on BookTube. It still feels like there’s just not as many Black BookTubers or their channels are just harder to find. I watched one BookTuber’s video discussing the lack of diversity. When I was reading the comments, a lot of people were saying that they don’t want to subscribe to someone just because they’re “diverse.” The way they were phrasing it, it was making it seem like the diverse BookTubers aren’t getting enough love and sponsorships and opportunities because they just aren’t as good. What makes someone’s channel better than the other when we’re all doing the same thing? A lot of Black BookTubers don’t have as many subscribers [as white ones] but if they had more opportunities, maybe they would get more subscribers. Reading is the Blackest thing I can do. My ancestors fought for the right for me to know how to read. To go into a library and pick up a book, to write my own book for other Black women to read. This is something I was meant to do. If my channel isn’t growing because of my diversity, I don’t think that’s right. I feel like people don’t want to face the hard truth about things. For there to be real change, everything has to be put on the table. We have a lot of work to do. Christina Marie, Christina Marie Love HuffPost? Become a founding member of HuffPost Plus today. On Youtube since 2006, 8.8K subscribers The way I see it, if you have a platform whether it’s Twitter, Facebook, Youtube, whatever it is, you have a social responsibility to speak against injustice. My real life and online life kind of collided w hen Black people started dying. The shooting of Philando Castile ... it almost kind of woke me up to a level where I felt like I have to speak on this. I was so angry and so sad watching people who look like me and sound like me being gunned down for no reason, and it just got to the point where I was so tired of people not being angry with me . So I made a video pretty much being angry at BookTube. I challenged other BookTubers to be more vocal. I challenged people to recognize that what’s going on in our world online and offline . If somebody off the street was to just ask me, “Hey, do you think your subscriber count is low because you’re Black?” My automatic answer would be, “Yeah.” It is a struggle for Black BookTubers and Black content creators to attain the kind of viewership and subscribership that anybody else is attaining in the community. It’s still an issue, it’s always been an issue. The typical BookTuber has always been a white young woman or girl talking about the latest young adult book she read or a book haul or a TBR (To Be Read) pile. I don’t care about the BookTube formula, I don’t care about having tons and tons of books behind me [in videos], I don’t care about my camera quality, I don’t care if I’ve read the latest book. My goal is to be a representation for somebody else. Knowing that if my face or my video scrolls across somebody’s page, and a young Black girl who loves books just happens to click on it, my job is done! I’m doing this because I love books, I love reading, I love representation. I want people to be able to connect and see themselves because I didn’t have the opportunity to when I was their age. People always think, “I’m just one person, I can’t do much.” Well if everybody thinks like that then nothing gets done. You have an opportunity to utilize your channel, utilize your love of books to bring that same love to other people that may not know how great reading is, or they know how great reading is but can’t access the books or don’t know where to go or how to start or they can’t find characters that look like them. I love that we are even able to have these kinds of conversations and able to just lift each other up and encourage each other, especially right now. Whether it’s on BookTube or just in life in general, we just need to remember that it takes a village. The power is in our hands. KaShawn Archer, TheBookArcher On Youtube since 2014, 4.2K subscribers. When I first started thinking about seriously starting my channel, I was trying to find Black BookTubers. I was looking for anybody who looked like me. My family reads, my friends read and the majority of them are Black so I wasn’t understanding why I wasn’t finding that connection and representation online. I thought maybe somebody else is missing that representation, too. Some people will subscribe to my channel and leave a comment like “Wow! There’s so little diversity on BookTube. It’s so nice to see a person of color!” So I feel like people notice [the lack of diversity]. It’s hard not to. When I go to a festival or a convention or something, there’s me and maybe two other Black people at the place. When you look at TV or just the media in general, you don’t really get to see a lot of images of [Black] people reading or talking about books or anything like that. Outside of my home, there was really nothing that I saw that showed we’re readers. There are more diverse BookTubers than there were in the past, but there’s still that same issue of visibility. You have to work hard if you’re searching for diverse BookTubers. I feel in the Youtube community, in general, it’s hard for anybody of color to grow at the same speed or capacity as our white counterparts. If you’re a diverse creator, you have to do Beyoncé-level work to get the same subscribers or viewership [as white people]. I feel like we’re in the very, very beginning stages of BookTube diversifying. Certain people get uncomfortable if you start talking about diversity or diverse books too much . But we’ve been having these conversations our whole lives. It’s normal and natural for us. If I mention anything [about race] on my channel, that video will automatically have more dislikes than any other video. If something makes you that uncomfortable, you really need to take a look in the mirror. If you don’t feel like you’re part of the problem then why are you so uncomfortable? There’s just something different about watching Black BookTubers. It’s something about seeing yourself. It brings a better understanding to people, especially people who are so confused about the Black community. I feel like that is a platform that I can use for so much good. I want to be a part of the conversation. Nai’a Perkins, NayaReadsAndSmiles On Youtube since 2014, 56K subscribers. When I was younger, I kind of lived in the library. I would try to join in book clubs and it’d be a bunch of older white women and I’d be the little teenager over here with my afro. They’d be reading older, classic books like Jane Austen, a lot of these books where there weren’t any Black characters. So I found it really hard when I was younger to connect with the characters in books. I always felt like the most successful characters in books, the character that ends up finding the thing that they need to find or saving the world, they were always white! There was never a woman of color with an afro going out and saving everyone. They were always the best friend that you meet for a few seconds in a chapter and then they just disappear. Angie Thomas has recently become one of my favorite authors because before, all the authors I knew were primarily white. And I don’t mean that is a bad thing in any way, but it’s nice to see women from our community that are successful. It makes me think “If she can do this, I can do this, too.” And the same thing with BookTube and bloggers. When I joined BookTube, I knew who all the top bloggers were: all white, middle-class teens. I’m happy that I can help diversify BookTube in a way and review books from the perspective of a woman of color. Black BookTubers, Black authors, stories with a woman of color as the main character, they’re out there. They exist. I like to call them Hidden Gems for the way that we’re not as a community promoting these books enough, promoting Black BookTubers enough, promoting these other authors enough or speaking about these books and these creators as much as we should. I think that right now BookTube is in a really good position. It’s grown even more than I expected. There weren’t really many other BookTubers [of color] and even if there were, their channels were really small even though they’ve been on BookTube for three plus years. I didn’t expect much going into it. [My channel is] just continuing to grow and it surprises me every day, and I’m just extremely blessed and thankful that I can be a voice in this community and share my perspective on things. I hope we continue to get diversity. I hope the next time I type “BookTube” on the internet, I hope there’s an equal amount of every ethnicity and not just primarily one ethnicity. I hope I can go to an author event and see more than just one author of color. I don’t want there to be a gap anymore. I want more of everything. These quotes have been edited and condensed for clarity. Related... The Bookish Magic Of Black Women Is Getting A Literary Festival We Built This: Glory Edim Is Building An Empire With Books By Black Women What Is BookTube And Why Should You Be Watching (And Reading)? This article originally appeared on HuffPost . |
Do Directors Own Koolearn Technology Holding Limited (HKG:1797) Shares?
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Every investor in Koolearn Technology Holding Limited (HKG:1797) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.
Koolearn Technology Holding isn't enormous, but it's not particularly small either. It has a market capitalization of HK$9.0b, which means it would generally expect to see some institutions on the share registry. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about 1797.
Check out our latest analysis for Koolearn Technology Holding
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors own 58% of Koolearn Technology Holding. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Koolearn Technology Holding, (below). Of course, keep in mind that there are other factors to consider, too.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Koolearn Technology Holding. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own some shares in Koolearn Technology Holding Limited. This is a big company, so it is good to see this level of alignment. Insiders own HK$896m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checkingif those insiders have been selling.
The general public holds a 26% stake in 1797. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Our data indicates that Private Companies hold 5.7%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
It's always worth thinking about the different groups who own shares in a company. But to understand Koolearn Technology Holding better, we need to consider many other factors.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Abolish Private Insurance? Why Elizabeth Warren Said Yes
Wednesday night’s initial Democratic primary debate provided Americans with a pretty clear sense of what kind of health-care reforms most of the candidates on stage prefer — and, in most cases, it isn’t the immediate establishment of a single-payer Medicare-for-All system. NBC moderator Lester Holt asked the candidates to raise their hands if they would abolish private health insurance in favor of a government-run system. Only Sen. Elizabeth Warren and New York Mayor Bill de Blasio signaled they would. Warren, who is a co-sponsor of Sen. Bernie Sanders’ single-payer bill, had in the past left herself some wiggle room , suggesting that there are “a lot of different pathways” to make sure every person gets covered. This time, she was unequivocal in her support for a single-payer system. “Yes, I’m with Bernie on Medicare for All,” she said . Then she added: “Look at the business model of an insurance company. It's to bring in as many dollars as they can in premiums and to pay out as few dollars as possible for your health care. That leaves families with rising premiums, rising copays, and fighting with insurance companies to try to get the health care that their doctors say that they and their children need. Medicare for all solves that problem. “And I understand. There are a lot of politicians who say, oh, it's just not possible, we just can't do it, have a lot of political reasons for this. What they're really telling you is they just won't fight for it. Well, health care is a basic human right, and I will fight for basic human rights.” Other candidates were more cautious. “I am just simply concerned about kicking half of America off of their health insurance in four years, which is exactly what this bill says,” Sen. Amy Klobuchar said, explaining why she prefers a public option. “100 million Americans say they like their private health insurance, by the way. … I think we should be the party that keeps what's working and fixes what's broken,” former Maryland Rep. John Delaney said. “Why do we have to stand for taking away something from people?” Story continues Why Warren went all in: “It’s not hard to see why Warren has decided to join Sanders on this issue,” Slate’s Jordan Weissmann said . “The senator is running for the hearts and minds of the left by combining wonkishness and truly populist politics. But until now, Sanders has continued to outflank her on health care. And her squishiness on the topic—Democrats’ most potent policy issue—has been especially conspicuous, given that her entire campaign theme is about how she Has a Plan for That. Taking a firm, clear stance on it makes political sense as she battles for the progressive mantle.” How it could backfire: The idea of replacing private insurance with a single government plan doesn’t poll as well as a public option, and a Kaiser Family Foundation tracking poll conducted in January found that support for Medicare for All dropped from 56% to 37% when the idea of eliminating private insurance is raised. “Warren might think she can talk the public into it, but the other side gets a chance to talk too, and the history of using the bully pulpit to move public opinion is short and discouraging,” New York’s Jonathan Chait wrote . “Warren ventured boldly, perhaps foolishly, onto a shaky limb. She may have just filmed the most effective attack ad against herself.” Similarly, The Washington Post’s Jennifer Rubin called Warren’s position a gift to her opponents: “You can hear Republicans giggling in the background. If she is the nominee, they get to talk about her taking away your doctor and health-care plan and about how rural hospitals will close (due to low reimbursement rates).” The bottom line: As we’ve pointed out before, the debate, while important, isn’t likely to translate to policy changes in the near term. Democrats would need to win both the White House and the Senate to push for health care reform in 2021. Even so, the raised and unraised hands still revealed something significant. The 10 candidates on stage Wednesday night made their positions clear, and the 10 debating Thursday night likely will as well. And though news coverage and analyses of the debate have played up the Democratic Party’s shift to the left , that shift in most cases means an embrace of a “public option” that would let people sign up for a government insurance plan or stick with a private one if they prefer. Now Democratic primary voters can decide which position they favor. Based on polling data so far, Warren and Sanders will have a tough fight ahead of them. Like what you're reading? Sign up for our free newsletter . |
Pelosi Yields in Standoff with GOP, Allowing House to Pass $4.6 Billion Border Aid Bill
House Speaker Nancy Pelosi had little choice. In a standoff with Senate Majority Leader Mitch McConnell and the White House over a bill to provide billions in emergency funding to address the humanitarian crisis at the southern border, Pelosi and Democratic leaders yielded on Thursday and allowed the House to vote on a Senate-passed version of the legislation.
The $4.6 billion measure passed Thursday afternoon, and will now head to President Trump’s desk for his signature.
Pelosi’s decision followed whatThe Washington Postdescribed as “hours of frantic maneuvering” during which the speaker tried to round up support for a revised version of the bill that added protections for unaccompanied minors and restrictions on how the administration could use the money.
“Pelosi had hoped to amend the Senate bill with changes that included a 90-day limit for how long children can spend in holding facilities; less funding for the Immigration and Customs Enforcement agency; and a provision to ensure lawmakers could visit facilities that hold children without prior notice,” the Postreported.
But moderate House Democrats joined with House Republicans to push Pelosi to take up the bipartisan Senate bill, which includes fewer restrictions than a version passed this week by the House. Nearly two dozen moderates threatened to vote against Pelosi’s changes, Bloombergreported. The White House also opposed the changes and McConnell said he would not consider them.
“The children come first,” Pelosi said in aletterto colleagues. “In order to get resources to the children fastest, we will reluctantly pass the Senate bill.”
With time running short before lawmakers leave Washington for their July 4 recess — and with bipartisan pressure to take up the Senate bill — Pelosi had little leverage to get changes sought by her progressive members enacted.
Pelosi spoke with Vice President Mike Pence Thursday afternoon, and he agreed to make administrative improvements to the migrant shelters, according to reports. But that did little to mollify progressives.
“I will NOT be voting for a bill that gives unrestricted money to a rogue and cruel agency and doesn’t guarantee that the funds will go towards helping these children,” Rep. Pramila Jayapal, chair of the Progressive Caucus,tweetedThursday afternoon.
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What does SJM Holdings Limited's (HKG:880) Balance Sheet Tell Us About Its Future?
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Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as SJM Holdings Limited (HKG:880), with a market capitalization of HK$48b, rarely draw their attention from the investing community. However, generally ignored mid-caps have historically delivered better risk adjusted returns than both of those groups. Let’s take a look at 880’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto 880 here.
View our latest analysis for SJM Holdings
Over the past year, 880 has ramped up its debt from HK$8.4b to HK$16b , which accounts for long term debt. With this growth in debt, 880's cash and short-term investments stands at HK$19b , ready to be used for running the business. On top of this, 880 has generated HK$4.0b in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 26%, signalling that 880’s current level of operating cash is high enough to cover debt.
At the current liabilities level of HK$12b, it seems that the business has been able to meet these commitments with a current assets level of HK$21b, leading to a 1.68x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. For Hospitality 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.
880 is a relatively highly levered company with a debt-to-equity of 57%. This is not unusual for mid-caps as debt tends to be a cheaper and faster source of funding for some businesses.
Although 880’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. I admit this is a fairly basic analysis for 880's financial health. Other important fundamentals need to be considered alongside. You should continue to research SJM Holdings to get a better picture of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for 880’s future growth? Take a look at ourfree research report of analyst consensusfor 880’s outlook.
2. Valuation: What is 880 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 880 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. |
Families sue Libyan commander who once lived in Virginia
FALLS CHURCH, Va. (AP) — A Libyan-American who once lived in northern Virginia and now commands an army vying for control of his native country has been accused in a civil lawsuit of war crimes. The lawsuit was filed Wednesday in U.S. District Court in Alexandria by Libyan family members who say their loved ones were killed when forces controlled by Khalifa Hifter conducted bombings in civilian neighborhoods. Hifter was once a lieutenant to Libyan dictator Moammar Gadhafi. But he defected during the 1980s and spent many years living in northern Virginia, where he became a U.S. citizen and is widely believed to have worked with the CIA during his time in exile. After the country plunged into civil war, Hifter returned to Libya. He now leads the self-styled Libyan National Army, which controls the eastern part of that north African country. He launched an effort to capture Tripoli , its capital, earlier this year. Abdulhakim Tunalli, 59, of Fairfax, is the brother of Msaddek Tunalli, who was killed outside Tripoli during an offensive by Hifter's troops as they tried to capture the city. According to the lawsuit, Msaddek Tunalli was helping others evacuate the city when he was killed in the bombing. Msaddek Tunalli's death is one of three this year explicitly cited in the lawsuit. Abdulhakim Tunalli, who is not a plaintiff in the lawsuit, said in a phone interview Thursday that his brother and others had successfully evacuated the neighborhood and were on their way out themselves when they became trapped in the shelling. "Basically what Hifter did, attacking Tripoli, bombing civilians randomly — they killed women and children. And they don't care," Abdulhakim said. Faisal Gill, the lawyer who filed the lawsuit on behalf of the families, said Hifter is essentially a warlord who uses the battle against Islamic extremism as an excuse to grab power and try to consolidate control of the country. Last month The Associated Press reported that Hifter has cracked down on dissent in the eastern city of Benghazi, which he now controls. Billboards and posters that show Hifter in full military regalia line the streets. Story continues Hifter's supporters say they have restored security and civil order in the eastern part of the country and insist the Libyan National Army is not seeking to rule the country, but to rebuild the state and create the conditions for elected government. Abdulhakim Tunalli said Hifter is an autocrat and seeking to become another Gadhafi. "He believes in dictatorship," Tunalli said. Gill said the next step in the lawsuit will be to serve notice on Hifter, either in the U.S. or in Libya. The lawsuit seeks $125 million in damages. |
Supreme Court OKs blood draws from unconscious drivers without warrants
By Lawrence Hurley and Andrew Chung WASHINGTON (Reuters) - Police do not generally need a court-issued warrant to draw an unconscious criminal suspect's blood, the U.S. Supreme Court ruled on Thursday in a Wisconsin drunken driving case, declining to place new evidence-gathering restrictions on law enforcement authorities. The court ruled 5-4 that drawing blood while a driver is unconscious in nearly all cases does not violate the U.S. Constitution's Fourth Amendment protections against unreasonable searches. "Thus, when a driver is unconscious," conservative Justice Samuel Alito wrote in the decision, "the general rule is that a warrant is not needed." Conservative Justices John Roberts, Brett Kavanaugh and Clarence Thomas, along with liberal Justice Stephen Breyer, agreed with the outcome, while the court's three other liberal justices and conservative Justice Neil Gorsuch dissented. Though they upheld most warrantless blood tests of drunken-driving suspects, the justices set aside the conviction of Gerald Mitchell, the man at the center of the case who had argued that the blood drawn from him after he had been arrested and fell unconscious violated his constitutional rights. The justices sent the case back to lower courts, giving Mitchell another chance to prove that the officers' needs or duties in his case were not so pressing as to leave no time to obtain a warrant. At issue in the case was a Wisconsin law that assumed motorists automatically give consent to tests of their breath or blood simply by driving on the state's roads, even if they are unconscious. All 49 other states and the District of Columbia have similar laws, Alito said. The Supreme Court in recent years has limited police ability to draw blood without a warrant and without a motorist's consent, and frowned upon criminal penalties against people who refuse to consent to a blood draw. Police drew the blood, which showed his blood-alcohol concentration far above the state's legal limit, after finding Mitchell shirtless, wet and covered in sand near the shores of Lake Michigan. Story continues Mitchell appealed a ruling by Wisconsin's highest court that the blood draw did not violate the Fourth Amendment. The case dates to 2013 in Wisconsin's Sheboygan County when Mitchell's neighbor called police to report that Mitchell had driven away in a van, apparently drunk, and may have been suicidal. He had taken about 40 pills along with vodka mixed with the soft drink Mountain Dew, according to court filings. Mitchell later testified he had been depressed and suicidal. After police found him, Mitchell became unconscious as authorities drove him to a hospital, where they ordered staff to draw his blood for an alcohol concentration test despite not having a warrant. Police charged him with operating a vehicle while intoxicated. He had six prior convictions for the same offense. For a graphic on major Supreme Court rulings, click https://tmsnrt.rs/2V2T0Uf (Reporting by Lawrence Hurley and Andrew Chung; Editing by Will Dunham) |
Sony Sitting Out San Diego Comic-Con Along With Universal, Warner Bros. DC Properties
Click here to read the full article. Sony Pictures is the latest studio to opt out of next months San Diego Comic-Con , joining Universal Pictures and Warner Bros. on the sidelines for the July 18-21 event. Sony also decided against making a presentation in April at CinemaCon in Las Vegas. The studio staged panels at Comic-Con last year for Venom and Spider-Man: Into the Spider-Verse. Related stories On Snapchat, 'Spider-Man: Far From Home' Slings to World Landmarks in Sony-Sponsored AR Lens Comic-Con 2019 TV Schedule: When Are Your Favorite Shows Taking Over San Diego? Five Studios Launch 'Ultimate Movie Weekend' Rental Sale Across U.S. Digital Services Sony had no comment as to its absence. Its marketing staff is currently busy promoting Spider-Man: Far From Home, which opens July 2, and Quentin Tarantinos Once Upon a Time in Hollywood, which debuts on July 26. Early tracking for Spider-Man: Far From Home is strong, with forecasts of more than $150 million for its first six days in North America. The studio held a high-profile world premiere for Once Upon a Time in Hollywood, which stars Brad Pitt, Leonardo DiCaprio and Margot Robbie, at the Cannes Film Festival in May. Key titles on Sonys upcoming slate include comedy sequel Zombieland 2: Double Tap on Oct. 18, its Charlies Angels reboot on Nov. 15, its reboot of The Grudge on Jan. 3, its Bloodshot adaptation with Vin Diesel on Feb. 21, Blumhouses Fantasy Island on Feb. 28 and Marvels Morbius on July 31. Comic-Con will see presentations from Disney/Marvel, Paramount and Warner Bros. New Line through its Scare Diego event. Lionsgate is also not expected to make a presentation, but theres no official confirmation yet. The news about Sony was first reported by Deadline. Sign up for Varietys Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
With A Return On Equity Of 9.3%, Has Telecom Service One Holdings Limited's (HKG:3997) Management Done Well?
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One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand Telecom Service One Holdings Limited (HKG:3997).
Our data showsTelecom Service One Holdings has a return on equity of 9.3%for the last year. That means that for every HK$1 worth of shareholders' equity, it generated HK$0.093 in profit.
Check out our latest analysis for Telecom Service One Holdings
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Telecom Service One Holdings:
9.3% = HK$9.4m ÷ HK$101m (Based on the trailing twelve months to March 2019.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, all else being equal,a high ROE is better than a low one. That means it can be interesting to compare the ROE of different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Telecom Service One Holdings has a similar ROE to the average in the Commercial Services industry classification (10%).
That's neither particularly good, nor bad. ROE can give us a view about company quality, but many investors also look to other factors, such as whether there are insiders buying shares. I will like Telecom Service One Holdings better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Shareholders will be pleased to learn that Telecom Service One Holdings has not one iota of net debt! So although its ROE isn't that impressive, we shouldn't judge it harshly on that metric, because it didn't use debt. After all, when a company has a strong balance sheet, it can often find ways to invest in growth, even if it takes some time.
Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking thisfreethisdetailed graphof past earnings, revenue and cash flow.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, 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. |
Marcus by Goldman Sachs thrives, so why did Finn by J.P. Morgan die?
Marcus by Goldman Sachs acts like a too-cool-to-care,too-hot-to-dietech startup, but it’s a hip new brand that has a $931 billion bank behind it.
You’d think that if J.P. Morgan Chase, a $2.6 trillion dollar bank, tried to do the same thing, it’d be twice as cool, right?
Wrong. It’s the complete opposite.
Chase launched Finn, a digital bank app that was supposed to be everything we millennials crave last year. No fees, mobile-first banking, automatic saving, and a brand that hasn’t been around since the 19th century.
But this month, it pulled the plug on Finn less than a year into its life. Researchers estimated 232,000 people downloaded the app, but more than half of those people were Chase customers to begin with.
Chase is giving everyone who opened a Finn account a Chase account, which is a nice way to convert fee-free Finn users into fee-paying Chase users. No one in my millennial gen knows how to close a bank account, so smart move on Chase’s part.
But why scrap the project?
Chase said Finn was essentially redundant and existing Chase products augmented with Finn features will serve customers better.
Marcus by Goldman Sachs on the other hand has 4 million customers, has made nearly $5 billion in loans in 3 years, holds $46 billion in deposits, and will soon find its way into the wallets of every hipster who gets Apple’s credit card.
This might be comparing apples and oranges—Chase has47 million peopleusing its mobile app already, so maybe it was confusing and unnecessary to add another app to the mix.
Goldman Sachs, an investment bank primarily serving corporate and ultra-wealthy clients, had to build a consumer brand from scratch, which explains Marcus’ major growth. But it’s doing something new, offering good products to build brand loyalty, and has a ton of momentum.
Chase, on the other hand, just scrapped a potentially cool experiment to do more of what it’s already doing. I’m not knocking that because it’s obviously working for now, but it makes me go back to Marcus exec Adam Dell’s quote that promptedJulian’s analysislast week:
Chase already has customer acquisition nailed. It was early in the bank app andmobile check deposit* spaces to begin with, so the bank doesn’t have to figure out how to hack innovation and customer focus into its existing processes.
It can write off a bet like Finn, take the good parts, and use them to improve the rest of its offering.
J.P. Morgan vs. Goldman here is a battle between a relatively agile incumbent versus a lightning-fast in-house startup backed by the same depth of capital and fueled by startup acquisitions.
But J.P. Morgan is still powered by small tech companies too. Look at this page from their investor deck:
Three-quarters of the technologies the company is hyping to investors are made by startups, and the one in-house app has been scrapped.
Where does this leave us?
The banks need the startupsto stay cool, whilethe startups try to be banks.
And maybe Marcus has a media-friendly growth play that fuels the hype, while J.P. Morgan Chase’s existing dominance is old news.
Will the startups rise up and consume the banks they power, or will they continue to partner with the big dogs to deliver you better, faster, easier banking?
We’ll keep watching this closely for you. More reading below.___Reference:
–Why Did A Big Goldman Sachs Banker Say Big Banks Are Screwed? (The Basis Point)
–JPMorgan Scraps New App Service for Young People (Wall Street Journal)
–J.P. Morgan 2018 Strategic Update (J.P. Morgan Chase)
–El Finn: Why Don’t Flanker Brands Work In Banking? (Commerce Ventures)
– *check out the quotes from OG The Basis Point friend and StockTwits CEO Ian Rosen in this one.
STAT FIGHT! Who’s winning the battle for jobs?
Linkage: Trump said it, so it’s official. Bitcoin is not money.
Make The Fed Political Again—July 2019 Edition |
The Queen Goes Green: UK's Centre For Medicinal Cannabis Releases New Report On CBD
The UK’s Centre for Medicinal Cannabis released its latest report Thursday. Titled “CBD in the UK: Towards a responsible innovative, and high-quality cannabidiol industry,” the report provides wide-ranging recommendations including amending existing out-of-date legislation; clarity relating to current policy; investment in medical research; and self-regulation among existing business owners.
The CMC report was released at the CMC’s inaugural full day event attended by leading public health officials, academics, company medical and science officers and researchers. It fell on the final day of the inaugural European Cannabis Week, which included Cannabis Europa, a two day business summit at the Southbank Center, the IC3 Institutional Cannabis Investor’s summit, and the inaugural meeting of the Medical Cannabis Clinician’s Society (founded by Dr. Mike Barnes, who obtained the first medical cannabis licenses in the UK for Sophia Gibson and Alfie Dingley).
Good Timing
The CMC report comes a few weeks after the U.S. Food and Drug Administration held a long awaited public hearing on CBD.
“CBD should be produced in GMP-certified facilities that have reliable, accurate and consistent testing labs and be accurately labeled,” Mr. Christian Hendriksen of Mile High Labs said during an exclusive conversation.
While CBD is increasingly available, seemingly everywhere, consumers are largely unaware of what it actually is: one of many molecular compounds called cannabinoids that are found in cannabis.
If harvested from hemp, CBD is distilled to extract the cannabinoids and further refined to remove impurities. The final product is called “isolate,” a white, nearly odorless and flavorless powder.
Key Points
In addition to a call for regulation, the CMC report provides insight into the state of CBD in the UK. Among the findings:
• Approximately 6 million people have tried CBD in the UK.
• 11% of the population had consumed a CBD product in the last year.
• Use is higher in certain parts of the UK, namely Wales and Northern Ireland
• Two most important factors in choosing a product were (i) knowing the CBD product was made by a supplier that met standards, and (ii) knowing that contents were not contaminated with pesticides or heavy metals.
According to the CMC, “The political interest in cannabis policy is growing as more and more countries choose to legalize and regulate the drug for medicinal purposes,” and the UK’s recent reforms “are part of a global shift in favor of medicinal cannabis regulation across the world.”
Benzinga Cannabis’ Managing Director and best-selling cannabis business book author Javier Hasse commended the U.K.'s Home Office for moving quickly in 2018, when the industry first developed strong regulations intended to benefit consumers. “Providing a pathway towards a well-regulated industry was fundamental in the early days of cannabis in the U.K.,” he concluded, adding more action and expanded access is still needed to reach all patients.
Related Stories:
The Week In Cannabis: House Takes Historic Vote, New York Decriminalizes, Woman-Led Company Lists On Nasdaq, And More
Meet The Newest Accelerator For Minority-Owned Cannabis Businesses
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
See more from Benzinga
• So You Want To Be A Canntraprenuer…
• From High To Health: A New Cannabis Paradigm
• A Survivor's Story: Meet L.A. Weekly's New Cannabis Editor
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Did Telecom Service One Holdings Limited (HKG:3997) Use Debt To Deliver Its ROE Of 9.3%?
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Telecom Service One Holdings Limited (HKG:3997), by way of a worked example.
Over the last twelve monthsTelecom Service One Holdings has recorded a ROE of 9.3%. That means that for every HK$1 worth of shareholders' equity, it generated HK$0.093 in profit.
Check out our latest analysis for Telecom Service One Holdings
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Telecom Service One Holdings:
9.3% = HK$9.4m ÷ HK$101m (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all the money paid into the company from shareholders, plus any earnings retained. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.
ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the yearly profit. The higher the ROE, the more profit the company is making. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see Telecom Service One Holdings has a similar ROE to the average in the Commercial Services industry classification (10%).
That's neither particularly good, nor bad. ROE tells us about the quality of the business, but it does not give us much of an idea if the share price is cheap. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
One positive for shareholders is that Telecom Service One Holdings does not have any net debt! Even though I don't think its ROE is that great, I think it's very respectable when you consider it has no debt. At the end of the day, when a company has zero debt, it is in a better position to take future growth opportunities.
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. Check the past profit growth by Telecom Service One Holdings by looking at thisvisualization of past earnings, revenue and cash flow.
Of courseTelecom Service One Holdings may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UFC Minneapolis: Junior Dos Santos out to earn a title shot
Junior Dos Santos acknowledges the crowd at open workouts on June 26, 2019 in Bloomington, Minnesota. (Hannah Foslien/Zuffa LLC) In the glow of victory, fighters often thank a host of people who got them ready to compete. Often, they run through far more names than most people want to hear. Not often, though, does one of those fighters thank his mother-in-law. But if Junior Dos Santos gets past the powerful Francis Ngannou on Saturday at UFC Minneapolis (9 p.m. ET, ESPN), he may set a new standard for thank yous. Because Dos Santos, a former UFC heavyweight champion, said he couldnt have taken the bout had his mother-in-law not come to the U.S. from Brazil to help his wife after the May birth of their son, Bento. Dos Santos is generally a yes man when the UFC offers a fight, hell usually say yes first and ask who later but he had to work things out when the fight with Ngannou was offered. We figured it all out before I accepted the fight, all the back-and-forth and everything wed have to do, he said. I got lucky. This is an important fight, of course, and everything worked out perfectly. Im thankful to my mother-in-law, who came in from Brazil and made it possible for me to accept this fight. I couldnt have accepted it without her being there to help my wife. Its a massive bout for Dos Santos, who lost the heavyweight title to Cain Velasquez in 2012 after one successful defense and has gone 0-3 in championship bouts since. Cigano hasnt been promised anything, but Stipe Miocic is ranked No. 1 and hell fight champion Daniel Cormier for the belt in a rematch at UFC 241 in August. Ngannou is ranked No. 2 and Dos Santos is third. It figures the winner would get the next title crack. I want my next one to be for the title and thats what I am expecting, but until you sign the papers, you dont know for sure, he said. I just want to keep fighting and keep winning and if I do, I know good things will happen. Dos Santos is in the frame of mind to perform at his best. Hes now the father of a son as well as a daughter, Maria, and said having the responsibilities fatherhood brings has made him a different man. Story continues Hes at peace and eager to show hes the No. 1 heavyweight in the world. I thought I knew what happiness was before, but I realize now that Ive had my kids, I didnt, he said. Im so blessed. Im so happy, I cant even tell you. Having a family brings a lot more responsibility, but its something I think Ive needed. I am determined to be the best I can be. I always have felt like if I could put things together, I can be the champion again and stay there for a long time. I can beat all those guys. But becoming a father and understanding what all of that means, its pushed me more than I could say. Hes about a 2-1 underdog to Ngannou, who is coming off a first-round KO of Velasquez . One of Dos Santos issues in the past is that hes gotten hit far too often, especially by guys whose boxing isnt nearly as technical as his. Getting hit a lot by Ngannou means an almost-certain loss, and that hasnt escaped Dos Santos attention. I was impressed by what he did [in the win over Velasquez], Dos Santos said. We all knew this guy has crazy power, crazy KO power. My God, he can hit. Hes probably the most dangerous guy in the UFC with all that power and hes awkward and coming at you with these crazy punches from angles youre not expecting. But the point of boxing is to hit and not get hit, and I consider myself a boxer. I have all these other skills, but my talent is really my ability to box. I can move better and I can create better angles and I can do more than he can. I really believe that. 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 |
Paul Rudd to star in Jason Reitman's Ghostbusters reboot
Paul Rudd has said he is "sliming himself" with joy over joining the cast of Jason Reitman's new version of Ghostbusters. The Ant-Man star shared the news in a video on Twitter, appearing in front of the New York fire station made famous in the original movie, which was directed by Reitman's father Ivan. Showing fans taking pictures at the film landmark, Rudd said: "You see, this is what happens, every day, people coming out to take pictures of this magnificent building, and really, can you blame them? "It's such an epic film. I love it, I'm a fan. Look who accepted the call. #GB20 pic.twitter.com/QwYSiw5pBq — Ghostbusters (@Ghostbusters) June 27, 2019 "When I heard that Jason Reitman was going to be doing a new version in the fall, my agent called up and said, 'Hey, Jason, we hear there's a part of a young - semi-young - strapping man that needs to be cast, who you gonna call?' "When I heard they were going call me... well, as you can imagine, I nearly slimed myself. I can't wait to join the cast this fall for Ghostbusters." The Hollywood star joked: "In fact I'm sliming myself right now." Earlier this year, Juno and Up In The Air director Reitman revealed the new film will be released next summer. He said his sci-fi comedy is not a reboot and is set in the present day. The popular 1980s film starred Bill Murray, Dan Aykroyd and Harold Ramis, who died in 2014. The last instalment of the franchise arrived in 2016 and focused on four women, Melissa McCarthy, Kristen Wiig, Kate McKinnon and Leslie Jones, who started a ghost-catching business in New York City. It was directed by Bridesmaids film-maker Paul Feig, and had a mixed reception. View comments |
Lyft-Waymo Autonomous Vehicle Partnership Begins as Driverless Car Race Heats Up
Some Phoenix area Lyft LYFT users are now able to take an autonomous ride, powered by Waymo. The Alphabet GOOGL subsidiary has provided 10 self-driving minivans to Lyft for use in specific areas of Phoenix, an area Waymo has done significant testing in over the past couple of years. Phoenix is also the area where Waymo currently operates its Waymo One project, the self-driving taxi service that is currently only available to a limited number of customers, primarily based on location.
Lyft users in need of a ride within a geofenced location will have the option to select a Waymo minivan as an option. These Waymo vans are still manned by a safety driver, prepared to step if the self-driving technology were to malfunction. Lyft users who don’t want to try the autonomous service have the option to take a traditional Lyft ride.
Both companies stand to benefit from the partnership. Lyft, as of May 2019, owns around 29% of the rideshare market. Lyft could boost its market share as autonomous rides would likely lower the cost of rides in the long-run, making Lyft more appealing than competitors such as Uber UBER. Additionally, expanding the partnership outside of Phoenix could help boost revenue.
The Competition
Waymo also signed a deal last week with Renault RNLSY and its subsidiary Nissan. The deal aims to bring automated vehicles to France and Japan, with possible expansion in the future. The announcement contained few specifics, but is a big step for all parties involved. Waymo can use the deal to expand its brand globally, while Nissan and Renault now have to use fewer resources to develop automated vehicle technology.
Self-driving vehicles and automated taxi services have become a major focus of many different automotive and tech companies. On Tuesday, Apple AAPL confirmed it had acquired self-driving start up Drive.ai. In what is known as an “acqui-hire” in the industry, Apple will add some of Drive.ai’s engineers to its already large group of over 5,000 employees dedicated to self-driving vehicles.
Uber, Lyft’s main competition, revealed its third-generation of its self-driving car earlier this month. Partnered with Volvo VLVLY, the companies announced that the car will begin public testing in 2020. The car has significant improvements in its safety features, which includes backup steering, braking, and battery power systems.
Plus, self-driving startup Aurora, backed by Amazon AMZN and Sequoia Capital, earlier this month partnered with Fiat-Chrysler FCAU. Much of this partnership will be focused on integrating Aurora’s technology into Fiat-Chrysler’s Ram trucks, with other vehicles likely to be added in the down the road.
Bottom Line
In a market that continues to grow and advance, many companies are eager to secure a spot and partner with other industry leaders. Lyft’s partnership with Waymo is yet another example and appears to be mutually beneficial, although the success, or failure of the program will likely impact any future relations.
Nonetheless, the Lyft-Waymo partnership is a big step since autonomous driving is what Lyft, Uber, and other ride-sharing companies hope will drive long-term profitability. Meanwhile, Tesla TSLA CEO Elon Musk has promised a fleet of robo-taxis by the end of 2020. With all this in mind, the autonomous vehicle future doesn’t look too far off at this point, and Lyft seems poised to play a significant role.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportAlphabet Inc. (GOOGL) : Free Stock Analysis ReportTesla, Inc. (TSLA) : Free Stock Analysis ReportRENAULT SA (RNLSY) : Free Stock Analysis ReportFiat Chrysler Automobiles N.V. (FCAU) : Free Stock Analysis ReportAB Volvo (VLVLY) : Free Stock Analysis ReportApple Inc. (AAPL) : Free Stock Analysis ReportLyft, Inc. (LYFT) : Free Stock Analysis ReportUber Technologies, Inc. (UBER) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
A Closer Look At Koolearn Technology Holding Limited's (HKG:1797) Uninspiring ROE
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Koolearn Technology Holding Limited (HKG:1797).
Our data showsKoolearn Technology Holding has a return on equity of 2.7%for the last year. That means that for every HK$1 worth of shareholders' equity, it generated HK$0.027 in profit.
View our latest analysis for Koolearn Technology Holding
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Koolearn Technology Holding:
2.7% = CN¥16m ÷ CN¥1.0b (Based on the trailing twelve months to November 2018.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. That means ROE can be used to compare two businesses.
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Koolearn Technology Holding has a lower ROE than the average (13%) in the Consumer Services industry.
That certainly isn't ideal. We'd prefer see an ROE above the industry average, but it might not matter if the company is undervalued. Still,shareholders might want to check if insiders have been selling.
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
Shareholders will be pleased to learn that Koolearn Technology Holding has not one iota of net debt! Without a doubt it has a fairly low ROE, but that isn't so bad when you consider it has no debt. After all, with cash on the balance sheet, a company has a lot more optionality in good times and bad.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In my book the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREEvisualization of analyst forecasts for the company.
Of courseKoolearn Technology Holding may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Business Aviation’s Vista Global Has an App for That
Click here to read the full article. Today Vista Global—parent company of VistaJet , Vista Lease, XOJet (fleet and sales) and JetSmarter —announced the creation of XO , a global on-demand digital marketplace for private aviation , comprised of XOJet’s customer-centric expertise and JetSmarter’s technology. This new platform takes into account the shift toward digital solutions in the private-aviation industry in an effort to meet the needs of an $11 billion-per-year global market for on-demand business aviation, which continues to grow. Travelers are moving more and more to private flights over first-class options. Related stories Icon Aircraft's President Wants to Make Flying Fun Again The Skai Fuel Cell Aircraft Is Here to Replace Your Helicopter, Drone and Private Jet--and Maybe Your Car This Cessna Aircraft Will Test an All-Electric Propulsion System Via the app, XO customers can request a flight, book a seat and select the best membership option. The app provides access to 1,500-plus private jets across all categories. The XO marketplace was constructed by combining the operational and customer-centric expertise of XOJet with technology originally developed by JetSmarter and will provide elevated service for all private-aviation travelers, eliminating the need to navigate the private-travel industry without a centralized platform. These busy passengers may now fly anytime, anywhere, at a moment’s notice. XO clients will be able to c hoose the best membership option to serve their travel needs and patterns, from occasional to frequent flyers. The platform provides on-demand charter access to more than 3,000 private jets globally, covering the full gamut of cabin classes. Or travelers can book a seat on existing shared flights around the world. Current XOJet and JetSmarter members will have access to Vista Global’s worldwide operations and the option to switch membership benefits, including additional rewards for loyal customers. Story continues “In the first month after closing our acquisition of JetSmarter for its innovative technology at the beginning of May, we have worked relentlessly to establish a new company, a new brand, new products and be ready to serve every single customer in the business aviation market,” says Vista Global’s founder and chairman, Thomas Flohr. “XO, powered by JetSmarter technology, is well equipped to address the $11 billion-per-year global market of on-demand business aviation, as well as the new market of customers moving up from first and business class. I can’t wait to go live and introduce our suite of XO solutions to the market.” Vista Global was founded in 2018, and during that year arranged for 115,000 passengers to fly on more than 70,000 flights on its fleet of 116 owned aircraft and its partners’ network. Vista Global aircraft will also be available on the XO platform, with the global fleet operated by VistaJet and the US fleet served by its partner operators, including XOJet Aviation. Sign up for Robb Report's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
How to Watch Wimbledon 2019 from the Comfort of Your Couch
Photo credit: Clive Brunskill - Getty Images From Oprah Magazine Wimbledon 2019 starts on July 1 and goes through July 14. Here's the easiest way to watch, livestream, and see all the action on the tennis court. Viewers will get to see singles champions Novak Djokovic and Angelique Kerber defend their titles on ESPN , ESPN+ , ESPN3 , and the Tennis Channel . Try Hulu's free-trial for Live TV if you don't have cable. If those don't work, your best bet is to watch what's going on behind-the-scenes (along with interviews) on the Wimbledon YouTube channel . The Championships, Wimbledon (as it is formally known) is the oldest tennis competition in the world-and will officially return on July 1. Since its inception in 1877, the matches have taken place at the All England Club in Wimbledon, London, U.K. It is one of the four Grand Slam tennis tournaments; the other three are the French Open, the Australian Open, and the US Open. In 2018, Serbian tennis player Novak Djokovic won the men's singles championship and German tennis player Angelique Kerber won the women's singles championship. This year they will be defending their titles against other top tennis pros like Roger Federer, Rafael Nadal, and Serena Williams. During Wimbledon, viewers will get to see what the pros call "events," which is just another word for matches. There will be five main events-and you can brush up on them here . So far, the list of players and their exact schedules haven't been released, but we do know when the actual matches will be taking place, according to the official Wimbledon site : First Round – July 1 (Monday) First Round – July 2 (Tuesday) Second Round – July 3 (Wednesday) Second Round – July 4 (Thursday) Third Round – July 5 (Friday) Third Round – July 6 (Saturday) Round of 16 – July 8 (Monday) Women’s Quarterfinals – July 9 (Tuesday) Men’s Quarterfinals – July 10 (Wednesday) Women’s Semifinals – July 11 (Thursday) Men’s Semifinals – July 12 (Friday) Women’s Finals – July 13 (Saturday) Men’s Finals – July 14 (Sunday) Story continues Now that you have a rundown of what to expect from Wimbledon, here's exactly how to watch it. How can I watch Wimbledon 2019? Photo credit: Getty Images The tennis tournament will be broadcast live on ESPN , ESPN+ , ESPN3 and the Tennis Channel . You can watch it on ESPN using your TV provider login or get it as an add-on through Hulu or YouTubeTV . If you don't have accounts for the last two, both of them offer free 7-day trails you can try out. And if you don't have cable, period, the Wimbledon YouTube channel is a good place to get behind-the-scenes footage on the matches and exclusive interviews with the players. According to RadioTimes , last year Amazon Prime subscribers could watch highlights online-but nothing has been announced for this year yet. When is Wimbledon 2019? Photo credit: Getty Images Like previously mentioned, this year's Championships will be taking place from Monday, July 1 through Sunday, July 14. The women's singles final is July 13 and the men's singles final is July 14. Who won Wimbledon in 2018? Photo credit: Getty Images As mentioned above, Novak Djokovic and Angelique Kerber won the singles championships. As for the doubles, the titles went to Mike Bryan and Jack Sock for the men's and Barbora Krejčíková and Kateřina Siniaková for the women's. For more ways to live your best life plus all things Oprah, sign up for our newsletter! |
3 things to watch when you're buying stocks for the long term
Just about anyone can tell you what sways the stock market.
“Someone needs to take the president’s phone away,” remarked a D.C. taxi driver.
“Stocks have gone up for a long time – they’re due for a slide,” a New York City bellhop confided.
“Amazon is taking over the world!” said a shoe salesperson in Scottsdale, Arizona.
All good points. But not necessarily correct.
Stock prices are driven by company earnings, influenced by interest rates and sensitive to economic growth. Other factors affect stocks to be sure, and anyone – including the pundits – who tells you how stocks will perform in the near term are either lucky or reckless. Careers have been made and lost on one big market timing call. The odds are very low for getting in and getting out at the right time. Remaining invested is a much better long-term strategy.
As you build your portfolio here are three things any laywoman can keep her eye on.
Dividends let you peek inside the minds of company managers, revealing their view on the future earnings power of their corporation. Companies pay dividends out of free cash flow. When a company raises its dividend, it usually reflects optimism about future growth. In addition, dividends grow and compound over time, contributing significantly to total return.
Think swoosh, golden arches, a white apple with a bite out of the corner. You get the idea. Brand dominance is a powerful weapon that provides a cushion when a product or company leader inevitably stumbles. Beloved brands give companies pricing power and the ability to weather the unexpected. And if there is one certainty in business, it is this: Expect the unexpected.
Many great companies have made great big mistakes. How they respond to the crisis, product flop or technological miss, marks the difference between sustainable success and eventual failure. Companies like Polaroid and Xerox were household names. We took Polaroids of friends, made a Xerox of a document. These brands owned the market – until they didn’t. They rested on their laurels and missed technological trends, until they lost market dominance. Management teams that evolve with technology and remain sharp can navigate these shifts. Car companies who embrace electric vehicles, technology companies who have moved to the cloud, and staid retailers who embrace e-commerce are all examples of adaptation.
Investing can be daunting. Especially during times like these. But a disciplined investment approach in which you regularly commit money to stocks will yield attractive results over the long-term.
Focus on companies you understand. That knowledge will provide you with confidence during difficult times.
If you are investing correctly, you will live in a constant state of dissatisfaction: When your investments go up, you'll wish you bought more, and when they go down you'll think you own too much. Remain disciplined. Pay attention, but focus on the long term.
And whatever you do, don’t take advice from strangers or even friends. I have noticed one thing over the years: Rarely has the friend whose stock just “doubled” picked up the lunch tab. And the bellhop and taxi driver, while delightful to talk to, are still slugging it out in the workforce. Do your own analysis and invest wisely.
Nancy Tengler is chief investment strategist at Tengler Wealth Management, ButcherJosephAsset Management. She is the author of “The Women’s Guide to Successful Investing.”
This article originally appeared on USA TODAY:3 things to watch when you're buying stocks for the long term |
Do Pine Care Group's (HKG:1989) Earnings Warrant Your Attention?
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But as Peter Lynch said inOne Up On Wall Street, 'Long shots almost never pay off.'
In contrast to all that, I prefer to spend time on companies likePine Care Group(HKG:1989), which has not only revenues, but also profits. While profit is not necessarily a social good, it's easy to admire a business than can consistently produce it. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
See our latest analysis for Pine Care Group
Over the last three years, Pine Care Group has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. As a result, I'll zoom in on growth over the last year, instead. Like a falcon taking flight, Pine Care Group's EPS soared from HK$0.011 to HK$0.016, over the last year. That's a impressive gain of 37%.
I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. Pine Care Group reported flat revenue and EBIT margins over the last year. That's not a major concern but nor does it point to the long term growth we like to see.
In the chart below, you can see how the company has grown earnings, and revenue, over time. Click on the chart to see the exact numbers.
Since Pine Care Group is no giant, with a market capitalization of HK$641m, so you shoulddefinitely check its cash and debtbeforegetting too excited about its prospects.
Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.
It's good to see Pine Care Group insiders walking the walk, by spending HK$3.5m on shares in just twelve months. And when you consider that there was no insider selling, you can understand why shareholders might believe that lady luck will grace this business. Zooming in, we can see that the biggest insider purchase was by Co-Founder & Chairman Ting Kwok Yim for HK$332k worth of shares, at about HK$0.61 per share.
I do like that insiders have been buying shares in Pine Care Group, but there is more evidence of shareholder friendly management. I refer to the very reasonable level of CEO pay. I discovered that the median total compensation for the CEOs of companies like Pine Care Group with market caps under HK$1.6b is about HK$1.7m.
The CEO of Pine Care Group was paid just HK$50k in total compensation for the year ending March 2018. You could consider this pay as somewhat symbolic, which suggests the CEO does not need a lot of compensation to stay motivated. While the level of CEO compensation isn't a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. I'd also argue reasonable pay levels attest to good decision making more generally.
You can't deny that Pine Care Group has grown its earnings per share at a very impressive rate. That's attractive. And that's not the only positive, either. We have both insider buying and reasonable and remuneration to consider. The message I'd take from this quick rundown is that, yes, this stock is worth investigating further. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if Pine Care Group is trading on a high P/E or a low P/E, relative to its industry.
As a growth investor I do like to see insider buying. But Pine Care Group isn't the only one. You can see aa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Millennials, you've got this all wrong. You need to stop 'saving' for retirement.
I’ve had this conversation about investing numerous times. In fact, it has reached an almost scripted level of precision.
Friend: “I don’t invest.”
Me: “Do you have a 401(k)?”
Friend: “Yes”
Me: “Then you’re investing.”
The problem is that the language we use about preparing for retirement is misleading. Time and time again, you’ll be told to “save” for retirement. New employees in an office get a lecture from a well-intentioned older colleague or parent about the importance of saving for retirement. All personal finance books harp on why it’s critical to save for retirement. Brokerage firms publish studies about how much people are saving for retirement.
OK, I get it: You’re putting money aside for the future and letting it accumulate as a reserve, which is the very definition of saving. But it’s the specific word, “save,” that is really a misnomer. What you’re actually doing is investing for retirement. There is power in the words we use, so it’s important we start to acknowledge ourselves as investors, even if that’s as simple as a 401(k) or IRA. People need to understand that they are putting their money to work for them in the stock market instead of letting it languish in a savings account.
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While researching my second book, "Broke Millennial Takes On Investing," one interviewee shared a horror story about a client who called into the brokerage firm where she worked and inquired about the balance of his retirement account. It turns out that when this client signed up for a 401(k), he didn’t select actual investments, and for decades he had just been – quite literally – saving into his 401(k). Sure, there was a decent chunk of change, but not enough to comfortably retire and nowhere near what could’ve been there had the money been properly invested and reaping the rewards of compound interest.
Let’s say the client averaged out to putting $500 a month into a 401(k) for 40 years. Over that time, it received an average 6% return in the market. The client would’ve had $933,714.65 upon retirement. But with the money just sitting in a savings account, it would have ultimately totaled just over $240,000 – especially since most people are earning only about 0.01% annual percentage yield on their savings accounts. Even with a higher interest rate of 2% on savings account, that money in savings still wouldn’t have topped $370,000.
It wasn’t the first time I’d heard a version of this urban-legend-style investing tale. I’ve even known a few people who found themselves in similar situations. Luckily, they figured it out only a couple of years into contributing to a 401(k), so they were able to log into their accounts and select funds that aligned with their investing goals. Their money was in the stock market in time to minimize any damage.
Intimidation is one simple reason people often procrastinate contributing to their retirement plans or don’t pick investments properly. I remember feeling overwhelmed the first time I signed up for a 401(k) and was met with a long list of investment options. Strange words I’d never heard of like midcap, large-cap or Dodge & Cox floated in front of my eyes, and I did what most people do when stressed by something on the Internet: I closed the browser. There was no context about which investments were best for my risk tolerance or time horizon (nor did I have any clue what those terms meant at the time). I’d never learned about investing. I, a then-23-year-old, was supposed to be able to intuit which funds to pick in order to build a well-balanced portfolio aligned with my goals.
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Or, more appropriately, I was supposed to do the research required to build a portfolio. But that can be an overwhelming proposition, especially to someone with no education in investing or even a basic understanding of the terminology. It’s not surprising why people often delay investing for retirement or slot it on the bottom of their to-do lists.
This intimidation factor is really what inspired my second book, "Broke Millennial Takes On Investing." I’m not an investing expert, instead, I serve more of a translator function. I researched and interviewed many people far more experienced and knowledgeable than myself and translated that knowledge into a more easily digestible package for a rookie.
One simple way to get over fear and procrastination is to consider a target-date fund, which is also known as a life-cycle fund. These funds are tied to the approximate year you plan to retire. For a 25-year-old in 2019, that might be a Target Date Fund 2060 (these funds are often in 5 year increments). This fund would start off with an aggressive portfolio, eventually be rebalanced to moderate investments and then become more conservative as the retirement year approached (as is appropriate based on when you need access to your money). You can take more risk when you have time to weather the fluctuations of the stock market.
Criticisms of target date funds include the higher expense ratio (paying more fees, which takes money away from future you) and that it isn’t tailored to your specific situation. For some investors, that can mean ending up in a portfolio that’s too conservative too early, which results in missing out on critical returns.
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Luckily, there’s no rule dictating that you must stay locked into a target date fund. You can always go back and rebuild your investment portfolio in a 401(k) or IRA once you’ve had time to do some research and become an educated investor, or seek help from a financial professional. Using a target date fund is just a way to remove the intimidation and confusion from the first step of the process.
No matter what route you choose, just be sure your money is actually being invested and not simply saved in a retirement account.
Erin Lowry is the author of "Broke Millennial Takes On Investing" and "Broke Millennial: Stop Scraping By and Get Your Financial Life Together."
The views and opinions expressed in this column are the author’s and do not necessarily reflect those of USA TODAY.
This article originally appeared on USA TODAY:Millennials, you've got this all wrong. You need to stop 'saving' for retirement. |
With EPS Growth And More, West China Cement (HKG:2233) Is Interesting
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.
So if you're like me, you might be more interested in profitable, growing companies, likeWest China Cement(HKG:2233). Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
See our latest analysis for West China Cement
Over the last three years, West China Cement has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. Thus, it makes sense to focus on more recent growth rates, instead. Like a wedge-tailed eagle on the wind, West China Cement's EPS soared from CN¥0.13 to CN¥0.21, in just one year. That's a impressive gain of 63%.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. The good news is that West China Cement is growing revenues, and EBIT margins improved by 9.6 percentage points to 27%, over the last year. That's great to see, on both counts.
In the chart below, you can see how the company has grown earnings, and revenue, over time. For finer detail, click on the image.
Fortunately, we've got access to analyst forecasts of West China Cement'sfutureprofits. You can do your own forecasts without looking, or you cantake a peek at what the professionals are predicting.
Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So as you can imagine, the fact that West China Cement insiders own a significant number of shares certainly appeals to me. Actually, with 36% of the company to their names, insiders are profoundly invested in the business. I'm always comforted by solid insider ownership like this, as it implies that those running the business are genuinely motivated to create shareholder value. At the current share price, that insider holding is worth a whopping CN¥2.2b. Now that's what I call some serious skin in the game!
Given my belief that share price follows earnings per share you can easily imagine how I feel about West China Cement's strong EPS growth. Further, the high level of insider buying impresses me, and suggests that I'm not the only one who appreciates the EPS growth. So this is very likely the kind of business that I like to spend time researching, with a view to discerning its true value. One of Buffett's considerations when discussing businesses is if they are capital light or capital intensive. Generally, a company with a high return on equity is capital light, and can thus fund growth more easily. So you might want to checkthis graph comparing West China Cement's ROE with industry peers (and the market at large).
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
'Spider-Man: Far From Home': Shop all the best merchadise
Spider-Man, Spider-Man, buys whatever a spider can. And the release of the latest big-screen Spidey adventure, Spider-Man: Far From Home , means that there’a lots of new stuff for aspiring wall-crawlers to purchase. Yahoo Entertainment has curated the coolest Spider merch, from toys and collectibles to shoes and books, that are guaranteed to set your spidey sense a-tingling. Far From Home LEGO Sets Stark Jet and Drone Attack (Photo: LEGO) Bring the action home with you courtesy of Lego’s three Far From Home -themed sets, each of which recreates a major set-piece in the film. There’s the Hydro-Man attack in Venice , the Molten Man meltdown in Prague and the Stark Jet vs. Drone fight in the skies above London. Each set comes with its own minifigs carrying their own mini-weapons. Shop it : $29.99-$69.99, LEGO Shop and Walmart Mysterio and Molten Man Figures Mysterio 6-inch figure (Photo: Hasbro) Molten Man 6-inch (Photo: Hasbro) Spider-Man’s amazing friend (?), Mysterio, and their mutual molten enemy are given the 6-inch action figure treatment courtesy of Hasbro. Shop it: Mysterio retails for $29.95 and the Molten Man is $9.99, both at Walmart Far From Home Funkos Spider-Man Pop! (Photo: Funko) Funko’s spider-iffic line of Pop collectibles grows by six with a sextet of Far From Home -specific vinyl figures. Choose from two different wall-crawlers (one in his stealth suit, and the other in a new version of the classic red-and-blue look), along with Mysterio, Molten Man, Hydro-Man and Happy Hogan. Or collect them all for maximum Funko carnage. Shop it : $10.49 each, Entertainment Earth Adidas D.O.N. Issue No. 1 Official images of Donovan Mitchell’s D.O.N. Issue No. 1 sneakers that’ll hit @footlocker on July 5th for $100. 🕷🕸 #DeterminationOverNegativity #DONISSUE1 pic.twitter.com/5tLxWeWiLJ — Eric Woodyard (@E_Woodyard) June 23, 2019 Utah Jazz star shooting guard, Donovan Mitchell, takes his @Spidamitchell nickname seriously. Mitchell has teamed up with Adidas to launch this eye-catching Spider-shoe as part of his new Determination Over Negativity line. Sadly, these kicks won’t help you stick to walls, but they are great for on-court action. Shop it : $100, Foot Locker starting July 5 Spider-Man Fragrance Spider-Man Fragrance (Photo: BoxLunch) Thanks to Avengers: Endgame , we know that Tony Stark liked to freshen up with a spritz of Axe Body Spray now and then. And now this fragrance answers the age-old question, “What does Spider-Man smell like?” Spoiler alert: a little less Axe, and a lot more citrus. Story continues Shop it : $22.90, BoxLunch JET Vehicle JET Vehicle (Photo Hasbro) You’ve heard of the Stark Jet: Here’s the Spider-Jet. This single-occupancy aircraft comes with a 6-inch wall-crawler, as well as launch projectiles and an escape hatch for easy on-and-off boarding. Shop it : $24.99, Amazon Web Burst Blaster Web Burst Blaster (Photo: Hasbro) Douse your friends, enemies or frenemies in webbing (or water) with this handy hand cannon. If you want to get fancy, upgrade to the Cyclone Blaster , which includes 3 different webbing modes, and allows you to create elaborate web swirls. Shop it : The Web Burst Blaster is $16.79 and the Cyclone Blaster is $29.99, both on Entertainment Earth Peter and Ned’s Ultimate Travel Journal Peter and Ned's Ultimate Travel Journal (Photo: Marvel Press) Get a first-hand account of Peter and Ned’s most excellent European vacation by the boys themselves. Penned by Preeti Chhibber, the book’s funny insights and lively illustrations make it an excellent traveling companion. Shop it : $12.99, Barnes & Noble and Target Spider Word Face T-Shirt Spider Word Face T-Shirt (Photo: Hot Topic) Not ready to explain the plot of Far From Home to your parents for thT umpteenth time? Let your T-shirt do the talking. And don’t worry, spoilerphobes: this shirt provides the general gist of of the storyline without many major reveals. Shop it : $18.32-$21.52 on Hot Topic Stealth Suit Flip Up Mask Stealth Suit Flip Up Mask (Photo: Hasbro) Get stealthy with this wearable version of the newest addition to Peter’s ever-expanding Spider-wardrobe. Don’t expect to see in the dark, but you can flip up the lenses to expand your field of vision. Shop it : $15.99, Target Spider-Man Tiki Tumbler Spider-Man Tiki Tumbler (Photo: Geeki Tikis) If you’re planning your own beachside European vacation, you’re going to want one of these Spider-Man Tiki Tumblers within easy reach. Fill it with soda, water or your own special Spider-drink. Shop it : $14.90, BoxLunch Far From Home Hooded Jacket Spider-Man Far From Home Hooded Jacket (Photo: Disney Shop) We can’t all have a Tony Stark-designed Spider-suit, but you can order your own Spider-Man hoodie. Feel like a genuine wall-crawler with arachnid emblem and eyes on the top of your head. Shop it : $34.95, Disney Shop Spider-Man: Far From Home swings into theaters on July 2. Visit Fandango for showtimes and tickets information. Yahoo Entertainment may receive a share from purchases made via links on this page. Read more from Yahoo Entertainment: Batman turns 80: Gift yourself with the best Bat-merch to celebrate the Dark Knight's big birthday The must-have 'Toy Story 4' toys: From teddy bears and star command centers to Lego sets and Keanu Reeves Here's everything that Funko is bringing to San Diego Comic-Con this year View comments |
Four things to consider when picking funds in a 401(k) plan
Many people who are saving for retirement by contributing to a 401(k), 403(b) or similar employer-sponsored plan are often plagued by this question: How do I go about evaluating and selecting which funds to invest in?
In some cases,the research showsthat investors contribute equal amounts to all the funds on their menu of options. In other cases, investors – overwhelmed by the number of choices –choose not to contribute to their retirement plan. And in still other cases,according to new research, retirement plan participants use something called alphabeticity to select funds.
Using a proprietary database of 401(k) plans, researchers recently showed that alphabeticity – when fund names are listed alphabetically on an investment menu – significantly biases participants’ investment allocation decisions.
This as well as other factors that cause irrational investment in defined contribution savings plans are of great concern, the researchers concluded in their paper, "Alphabeticity Bias in 401(k) Investing."
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“The paper confirms what many would suspect,” says Stacy Schaus, the founder and CEO of Schaus Group, a retirement consulting firm. “Participants choices are often irrational and/or uninformed.”
The research also suggests that a “more strategic ordering of funds could result in favorable outcomes for participants,” wrote Jesse Itzkowitz, a vice president at the Ipsos Behavioral Science Center, who co-authored "Alphabeticity Bias in 401(k) Investing."
For instance, if funds were listed in ascending order by expense ratio rather than alphabetically, then the plan design feature would help reduce investment fees paid by plan participants affected by alphabeticity bias.
In the absence of more strategic ordering of funds by plan administrators and plan providers, how might people in an employer-sponsored retirement plan go about choosing funds?
Itzkowitz says people should sort their choices according to what’s most important to them.
“For example, a prudent strategy is looking for funds with minimal fees,” he says.”
Likewise, if you think that five-year returns are most important, sort by that criteria first.
People can also improve their ability to pick the best option by making sure that they are alert and focused, Itzkowitz says.
“To do that, they should save important decisions, like how to invest their retirement savings, for when they are well rested, after a good meal, and before they do a lot of other difficult decision making,” he says. “Research has shown that when we are tired, both physically and mentally, all of our biases, not just alphabeticity, become more pronounced.”
In some cases, when plan participants are automatically enrolled in a 401(k), they are also placed into what are called qualified default investment alternatives or QDIAs. If that happens to you, consider sticking with them.
There are four types of QDIAs: a lifecycle or target-date fund; a professionally managed account; a balanced fund; and a capital-preservation product such as a stable-value fund.
“We know that defaults can be very helpful,” Schaus says.
QDIAs, however, are targeted to the average worker without regard to their personal needs and circumstances. Given that each person has different goals and resources, what's needed is more customized and personal advice. And that's especially true as one gets older, as financial assets increase in value and as financial affairs become more complicated.
“The closer to retirement, the more important comprehensive planning becomes as participants are likely to have more outside assets, varying risk preferences and health considerations,” Schaus says. “Decisions also matter more when the participant has more at risk — accumulated balances and less human capital. Working with a financial planner to tailor the allocation within a defined contribution plan with a comprehensive view and objectives in mind would be ideal.”
Robert Powell is the editor of TheStreet’s Retirement Dailywww.retirement.thestreet.comand contributes regularly to USA TODAY. Got questions about money? Email Bob atrpowell@allthingsretirement.com
This article originally appeared on USA TODAY:Four things to consider when picking funds in a 401(k) plan |
Bonds aren't a set-it-and-forget-it investment. Here's what you need to know.
Earlier this month, my column covered bond basics – how they work and their proper purpose in a blended growth portfolio. But many see a 100% (or very heavy) bond portfolio as a set-it-and-forget-it safe income generator.
Considering various risks shows why bonds alone rarely are best for retirement cash flow.
1. Interest rate risk.
Bond prices and interest rates move oppositely. When interest rates rise, bond prices fall. Rates will probably increase little in 2019, but when they do, selling before maturity (to meet an expense, perhaps) locks in losses.
2. Credit risk
Otherwise called default risk – the potential that a bond issuer reneges on the contract. When the issuer can’t make interest or principal payments, they default. Depending where you sit in a bankruptcy pecking order, you may not get your money back. When Greece defaulted in 2012, bondholders suffered huge losses. Higher credit risk bonds carry high-interest rates – alluring – but that simply balances the higher likelihood of loss.
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3. Liquidity risk
With individual bonds rather than a bond fund, you can hit trouble when it’s selling time. Many bonds – particularly corporate and municipal issues – don’t trade much. That can make them tricky to price and find buyers for. Most bonds aren’t like stocks, which trade daily on public exchanges. Selling can be more slippery than a politician’s pretty promises. You can’t sell in a flash near prices found online. Selling a “thinly” traded bond with few buyers can leave you forced to sell at steep discounts – particularly if there are no buyers and you need the proceeds fast for unexpected reasons.
4. Reinvestment risk
Owning high-interest bonds from low-risk issuers – and planning to hold them until they mature – may seem fool-proof. Yet even here, risks lurk. Many corporate bonds are “callable” – meaning the issuer can redeem them at will. Companies often do this when interest rates fall. Why keep paying the higher rate when they can call the bond at below market prices and float a cheaper new one? Good for them. Bad for you.
Even if your bond isn’t called, trouble can loom when it matures and you must replace that income stream. What if you can’t find something with a high enough yield? A 30-year U.S. Treasury bond from 30 years ago paid over 8% a year. Good luck finding that with low default risk now! America’s current 30-year yield is below 3%. You can’t even get near to 8% in Greece! Its 25-year debt pays just 4.3%. You’d need a 30-year Mexican or Brazilian bond, skyrocketing credit risk.
5. Inflation risk
Few bonds have inflation-linked interest rates. Normally, interest is the same each year. When the bond matures, you get the exact face value back. Over time, even low inflation erodes the interest income’s purchasing power. Ditto for your principal. With a 10-year bond maturing now, the $1,000 you receive buys far less today than it did when issued in 2009. To maintain purchase power, your money must grow.
Don’t get me wrong. I like bonds. Unlike many investments, they are transparent, with definable risks, and respond exactly proportionally to those risks – unlike many non-transparent and complexly defined investments, say, many annuities (per my April 14 column).
So, they are a good tool but like any tool must be used correctly with eyes wide open on their risks.
Usually, that is done best as part of a bigger blended portfolio aimed at growth where the bonds’ role is, above all, to provide relative stability by dampening volatility.
Ken Fisher is founder and executive chairman of Fisher Investments, author of 11 books, four of which were New York Times bestsellers, and is No. 200 on the Forbes 400 list of richest Americans. Follow him on Twitter: @KennethLFisher
The views and opinions expressed in this column are the author’s and do not necessarily reflect those of USA TODAY.
This article originally appeared on USA TODAY:Bonds aren't a set-it-and-forget-it investment. Here's what you need to know. |
Uruguay protests role of Venezuela's opposition at gathering
MEDELLIN, Colombia (AP) — A representative for Uruguay walked out of a meeting of regional countries in Latin America on Thursday leading a protest over the participation of diplomats appointed by Venezuelan opposition leader Juan Guaidó. Guaidó and President Nicolás Maduro have been locked in a months-long struggle for control over the once-wealthy oil nation amid a deepening political and financial crisis. Uruguay has been among a small number of South American nations that has maintained a neutral stance amid the power struggle, pressing for a negotiated resolution to the crisis through dialogue. "If this assembly validates these credentials, it is headed toward recognizing a new government in Venezuela," Ariel Bergamino, Uruguay's undersecretary of foreign affairs, said before walking out. The comments came during an annual meeting in Medellin, Colombia, of the Organization of American States, a body formed in 1948 to foster solidarity between its members. Its headquarters are in Washington and Venezuela was a founding member. Julio Borges, Guaidó's appointment to the organization, played down Uruguay's protest. Borges is also a member of Venezuela's opposition-led National Assembly, living in exile in Colombia out of concern for his safety. "They know very well that Venezuela is suffering a very big crisis," Borges told The Associated Press. "We have to give a voice to the Venezuelan people in order to get Maduro out of power and achieve freedom." A majority of the organization's members, including the United States, Canada, Colombia, Argentina, Brazil and Peru, have recognized Guaido as Venezuela's legitimate leader. They contend Maduro's reelection a year ago was not valid because strong opposition candidates couldn't run. In April, the OAS approved the participation of Guaidó delegates, while expelling the diplomats appointed by Maduro, who had already expressed their intention to withdraw from the organization. Story continues Critics of Venezuela's new delegation are in the minority of the body's members. Diplomats from Mexico, Nicaragua and Bolivia were among those saying they would not recognize action taken by the body on any vote that includes Guaidó delegates. Guaidó earlier this year launched a campaign to oust Maduro. Guaidó won support from more than 50 of nations. Maduro maintains backing from Russia and Cuba. The OAS meeting is expected to focus on Venezuela's crisis, including the impact from an exodus of Venezuelans into neighboring nations. The regional body is also expected to take diplomatic measures to pressure the Maduro government to accept free elections with international monitoring. In a sign of Venezuela's unrest, chief prosecutor Tarek William Saab said Thursday that he is charging 14 people in connection with what officials say was a thwarted coup plot to assassinate Maduro and take over the country. Officials on Wednesday said the derailed plot was planned to unfold June 23. They said a network of retired and active members of Venezuela's police and military personnel sought to steal a helicopter to liberate Raúl Baduel, a jailed former defense minister, and install him as the country's leader. The plot also included blocking key roads, taking over a Caracas air base and raiding weapons from the Central Bank of Venezuela, officials said. First lady Cilia Flores and Diosdado Cabello, leader of Venezuela's governing socialist party, were among those also targeted for assassination, officials said. The chief prosecutor said Baduel, who remains jailed, and the others are being accused with terrorism and treason, among other charges. Other named suspects include retired Maj. Gen. Cliver Alcala, a former military collaborator of the late President Hugo Chávez. He has been out of the country for several years. ___ Associated Press writer Manuel Rueda reported this story in Medellin, Colombia, and AP writer Scott Smith reported from Caracas, Venezuela. |
If You Like EPS Growth Then Check Out West China Cement (HKG:2233) Before It's Too Late
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. And in their study titledWho Falls Prey to the Wolf of Wall Street?'Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes.
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeWest China Cement(HKG:2233). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
Check out our latest analysis for West China Cement
In the last three years West China Cement's earnings per share took off like a rocket; fast, and from a low base. So the actual rate of growth doesn't tell us much. As a result, I'll zoom in on growth over the last year, instead. Like a wedge-tailed eagle on the wind, West China Cement's EPS soared from CN¥0.13 to CN¥0.21, in just one year. That's a commendable gain of 63%.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The good news is that West China Cement is growing revenues, and EBIT margins improved by 9.6 percentage points to 27%, over the last year. Ticking those two boxes is a good sign of growth, in my book.
You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.
While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not checkthis interactive chart depicting future EPS estimates, for West China Cement?
Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So we're pleased to report that West China Cement insiders own a meaningful share of the business. In fact, they own 36% of the shares, making insiders a very influential shareholder group. I'm always comforted by solid insider ownership like this, as it implies that those running the business are genuinely motivated to create shareholder value. At the current share price, that insider holding is worth a whopping CN¥2.2b. That means they have plenty of their own capital riding on the performance of the business!
For growth investors like me, West China Cement's raw rate of earnings growth is a beacon in the night. I think that EPS growth is something to boast of, and it doesn't surprise me that insiders are holding on to a considerable chunk of shares. So this is very likely the kind of business that I like to spend time researching, with a view to discerning its true value. One of Buffett's considerations when discussing businesses is if they are capital light or capital intensive. Generally, a company with a high return on equity is capital light, and can thus fund growth more easily. So you might want to checkthis graph comparing West China Cement's ROE with industry peers (and the market at large).
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Bitcoin's Price Takes a Wild Roundtrip Ride
Bitcoin’s rise was meteoric this week—and its decline has been just as swift.
It’s easy come, easy go in the crypto world, where a frenzy over Bitcoin pushed its price to nearly $14,000 on Wednesday, its highest level since January 2018. The largest digital asset then reversed course in a matter of minutes after a prominent cryptocurrency exchange reported an outage. The retreat accelerated Thursday and put the coin’s price back to nearly the same level as just five days ago.
The jump in prices brought back memories of the crypto bubble that burst at the end of 2017, when Bitcoin and other cryptocurrencies—beset by regulatory setbacks and fraud-related issues—fell from grace. Bitcoin’s price, for instance, languished around $3,600 just six months ago, down from almost $20,500 in December 2017.
Crypto bulls were heartened this year after numerous Wall Street mainstays showed increased interest and wider acceptance of cryptocurrencies and their underlying blockchain technology, helping to push prices higher. Things turned parabolic earlier this month whenFacebook unveiled plans for its own digital currency—many proponents cited the move as long-sought validation of the potential digital assets have to drastically alter the global financial system.
But Thursday’s reversal prompted one of Bitcoin’s biggest proponents, Mike Novogratz, to lament on not having taken more money off the table before the coin lost nearly all its gains. That may have contributed to its swift demise, according to John Spallanzani, portfolio manager at Miller Value Partners.
It’s a very “tight-knit market,” said Spallanzani. “Most likely Novo hitting bids spread like wildfire.”
Bitcoin dropped as much as 19% on Thursday and traded at $10,671 as of 5 p.m. in New York. Volatility is near the highest levels since early 2018, when the crypto bubble was bursting.
“It seems the crypto market got a bit too hot yesterday and is now cooling down,” wrote Mati Greenspan, senior market analyst at trading platform eToro, in a note. “What an incredible market where the price can crash about 15% in less than an hour and bring us back to the highs of the previous trading day.”
Alternative coins, including Ether andLitecoin, also fell, each losing more than 13%. The Bloomberg Galaxy Crypto Index, which tracks some of the largest digital assets, dropped 19%.
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How Do Analysts See BYD Electronic (International) Company Limited (HKG:285) Performing In The Next Couple Of Years?
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BYD Electronic (International) Company Limited's (HKG:285) most recent earnings announcement in April 2019 showed that the company faced a substantial headwind with earnings declining by -15%. Below, I've presented key growth figures on how market analysts predict BYD Electronic (International)'s earnings growth trajectory over the next couple of 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 BYD Electronic (International)
Market analysts' prospects for this coming year seems rather muted, with earnings increasing by a single digit 8.2%. The growth outlook in the following year seems much more optimistic with rates arriving at double digit 25% compared to today’s earnings, and finally hitting CN¥3.0b by 2022.
While it’s useful to be aware of the growth each year relative to today’s value, it may be more insightful analyzing the rate at which the company is growing every year, on average. The benefit of this approach is that we can get a bigger picture of the direction of BYD Electronic (International)'s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 11%. This means, we can expect BYD Electronic (International) will grow its earnings by 11% every year for the next couple of years.
For BYD Electronic (International), I've put together three important aspects you should look at:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is 285 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 285 is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 285? 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. |
House Reps Question FinCEN Director on Libra’s Potential for Illegal Usage
Director of the Financial Crimes Enforcement Network (FinCEN) Kenneth Blanco briefed several members of theUnited StatesHouseon the potential forLibra’s use in money laundering, illicit financing, and other illegal activities, according to apress releasefrom Representative Emanuel Cleaver II.
Leading the meeting were Reps. Cleaver, Trey Hollingsworth, Bill Foster, and French Hill, all members of the Committee on Financial Services. Rep. Cleaver, chairman of the Subcommittee on National Security, International Development, and Monetary Policy, said in his statement:
“With the evolution of virtual currencies and new marketplaces, nefarious actors are continuously adapting to find new ways to engage in illegal financial activity. [...] Now that we’re seeing a giant corporation like Facebook—which has already shown an inability to identify and impede these kinds of actors at an acceptable level—creating its own virtual currency called Libra, it cannot be understated the importance of Congress and financial transmitters to be proactive in utilizing the newest and most powerful technologies to ensure the financial system is not being used improperly.”
Blanco reportedly outlined current research intoartificial intelligenceand machine learning and their use in regulating cryptocurrencies.
Rep. Cleaver’s questioning was largely informed by concern overFacebook’s role in the 2016 US presidential elections, as well as alleged use of cryptocurrencies by Russian agents to fund electioninterference. Cleaver continued:
“We’ve seen the significant damage that foreign adversaries and bad actors have wrought on our democracy through Facebook’s platform, and that was simply through messaging and advertising.”
This briefing comes just days after the Financial Services Committee scheduledhearingswith Facebook for July 17, which in turn followed Committee Chair Maxine Waters’ request for a moratorium on Libra’s development on June 18, as Cointelegraphreportedat the time.
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Grizzly Bear Cub Has "All the Right Stuff," Help Him To Get Reunited/Rescued!
SAN DIEGO, CA and TOGWOTEE PASS NEAR GRAND TETON NATIONAL PARK, WY / ACCESSWIRE / June 27, 2019 /Protect The Wolves™A Native American Religious 501c3 is asking the public to speak out for this Grizzly Cub. Grizzlies being one of the many resources that we work hard to protect for your children as well as their children.
This baby grizzly bear needs a rescue now. Time is of the essence!
Join The Mission to Save Him
This Little guy was abruptly separated on June 18, 2019 from his first time Mother. Immediately following for 10 hours he ran in circles across the highway screaming and hollering for his mother. "Many" who monitored traffic to protect him from oncoming vehicles were in tears. It was heartbreaking! He was just six weeks out of the den and approximately 5 months old. He is a very baby bear. Yet, he has "All the Right Stuff". Against all odds he has survived for 10 days on his own.
On Sunday he was seen "Alone" running along the highway with his nose to the ground tracking his mother. He ran for over 4 miles as he doggedly searched for her. Yesterday he traveled seven miles desperately searching on the highway.
All who have studied bears, state that it is a miracle he is still alive. The local news reported on Monday that bear 863 was seen in the area of her cub. They report: Wildlife managers are hoping the mother grizzly will reunite with her cub. The two separated after the mother bear was allegedly hit by a car, though that report has not been confirmed by authorities. In addition to the potential vehicular collision which separated them USFWS also investigates a crime wherein unauthorized humans allegedly intervened to separate the two bears.
Video of Cub June 26, 2019 Desperately Searching for his Mom
Video Credit: Sandy Mell
https://youtu.be/t7E3fK_AGv8
The alleged illegal human intervention which disrupted these bears is under investigation, which can take weeks, Humans likely caused the separation and this baby bear needs Your help now. Time for him is of the essence.
Video Credit: Sandy Mell
https://youtu.be/nA7Ti4uBLsM
Please contact Hilary Cooley, and ask her to intercede and oversee rescue operations for this bear cub. Obviously, the best outcome for this baby is to be reunited with his mother. We do not know at this point if she would accept him. If so, that would be a heroic outcome for the Wildlife Managers.
Watch a newborn grizzly cub ride it's mom like a bull rider!!! 4K
Video Credit: Sandy Mell
https://youtu.be/qAuo5wE7b94
The WGFD and USFWS under the direction and oversight of Hilary Cooley can attempt to reunify these two. That is the first step in the rescue of this cub. Attempt to trap one or both of them and attempt to reunify them. This comes from a Source Who has actually re-wilded Grizzly Cubs.
He is an ESA protected species and likely through illegal acts and other human intervention has been separated from his potentially traumatized mother far too long to survive alone. The wildlife managers are urged to stop simply "Hoping they reunite " and to take action and now to set appropriate traps to reunite these to bears. If that does not work and bear 863 rejects her cub then a rescue to a proper rehab for him is demanded.
Should a rescue to a rehab be necessary because it is proven no chance to reunite the two, the location is not to a zoo because he has proven he has "All the Right Stuff" to survive on his own. He would need a bear rehabilitation center where he can grow bigger as a wild bear for later return to the wild. He will be the first grizzly bear in Wyoming to be rescued and rehabilitated and he has proven he deserves this chance.
In a Nutshell it is time that the public join as ONE Voice and demand action for this Lil Grizzly Bear, which includes prosecution if the investigation reveals any wrongdoing to the fullest extent the law Allows. Meaning no slap on the wrist. It is long overdue that Wyoming Game and Fish stop merely hoping and take action to save this cub first with reunification action and then with a rescue if unsuccessful. Man caused it and man can fix it.
Please contact:
Hilary CooleyDirector, Grizzly Bear Recovery ProgramU.S. Fish & Wildlife Service406-243-4903hilary_cooley@fws.gov
About Us
At Protect The Wolves™A Native American Religious 501c3, Our Agenda has always been to speak out for the voiceless. We are dedicated to protecting those that can not protect themselves from humans constantly interfering in Natures natural order. We will continue until Our Children's Resources are no longer in Danger
SOURCE:Protect The Wolves
View source version on accesswire.com:https://www.accesswire.com/549998/Grizzly-Bear-Cub-Has-All-the-Right-Stuff-Help-Him-To-Get-ReunitedRescued |
Meet Andrew Yang, the Democratic Candidate Who Wants to Give You $1,000 Each Month
Andrew Yang doesn’t have the typical pedigree for a presidential candidate.The serial entrepreneur, who foundedVenture for America, stems from the Silicon Valley crowd.
But Yang is running a Democratic presidential campaign (and will be among the 2020 candidates on stage attonight’s Democratic debate, which will also feature former Vice President Joe Biden, Sen. Bernie Sanders, Sen. Kamala Harris, and others) centered on the radical notion of universal basic income, or UBI, which Yang dubs a “Freedom Dividend.”
Yang is still a long shot and relative unknown – his polling and fundraising support, while enough to qualify for Thursday’s Democratic debate, still puts him near the bottom of the 2020 candidate pack. But he feels confident that his positions on UBI, health care, and the future of capitalism in an age of automation can propel him beyond his dedicated fan base and into the political stratosphere. Yang spoke on camera withFortuneearlier this year to discuss his views and why he thinks he has the best shot of beating President Donald Trump in the 2020 election.
Yang likes to say that he relishes his underdog status. He’s been a lawyer, a philanthropist, a Silicon Valley startup founder (with mixed results), and an evangelist for entrepreneurship programs, including through his Venture for America nonprofit.
But what’s fueled his political ambitions is the specter of automation and the massive job losses Yang predicts it will foster. Hence, the focus on UBI.
Yang’s version of UBI, or what his campaign calls a “Freedom Dividend,” is that every American citizen above the age of 18 should get $1,000 per month, no questions asked.
It’s a striking position for a self-professed capitalist. But Yang toldFortuneit’s absolutely critical to mitigating the effects of technology on the labor force. (He outlines his arguments in far greater detail in his book,The War on Normal People.)
“The economy would start working better for us with the Freedom Dividend,” he said. “If you look at what happens in practical terms, people’s nutrition improves, graduation rates go up over time… It would create over two million new jobs directly in the economy because money would circulate through local businesses, and then local businesses would have to turn around and hire an extra worker.”
In essence, Yang believes his UBI proposal could create a consumer-fueled economy that’s also markedly pro-job growth – a critical goal when as much as a third of workers could face unemployment when technologies such as self-driving trucks, sophisticated algorithms, explode in the near future, according to Yang.
It’s a tantalizing prospect. After all, who wouldn’t want $1,000 per month, guaranteed, without having to do anything? The most common criticism, predictably, is whether such a system could ever be realistically implemented. Yang’s response to the detractors? Implement a new tax system to make up for the minimal taxes paid by tech behemoths such asAmazonand other holes in the tax code.
“The big change we have to make is that we have to join the rest of the advanced world and have a value added tax,” he said. Value added taxes (or VATs) are consumption taxes paid at all stages of a product’s supply chain. They’re common in European nations, and Yang says that a VAT at even half the level of European countries could generate an additional $800 billion in annual revenues for the government. Combined with the ostensible savings and economic growth Yang claims would stem from UBI, the system would theoretically pay for itself (and then some).
There’s a critical caveat in Yang’s UBI approach: It would supplant existing government welfare programs such as food stamps for those who choose to take advantage of the Freedom Dividend.
“The last thing I want to do is deprive Americans of programs they need. My plan is to make the Freedom Dividend opt-in. But if you opt-in, then you’re choosing to forgo benefits from pre-existing welfare programs. So if you’re getting more than $1,000 in monthly benefits you can say, no thanks… Though, you’ll still have a benefit if you have a child who turns 18 and starts getting $1,000 per month, which can be a game-changer for families.”
In Yang’s mind, that approach would also lower the overall price tag for UBI, as many Americans may choose not to opt-in and the total spending cost for those who do would be the net difference between $1,000 per month and what they’re receiving in benefits currently.
UBI is clearly Yang’s hobby horse and what he says will set him apart from both the rest of the Democratic field and President Donald Trump. It’s an appeal to working class anxieties in an age of automation.
But Yang also has more than100-odd proposals on his campaign websitecovering everything from health care, to climate policy, to lowering the voting age, and a host of other ideas (some of which the candidate himself admits are meant to spark conversations, such as his plan that would require Congress to regularly renew existing laws).
For instance,Yang supports Medicare for All, the signature universal health care policy supported by candidates like Sen. Bernie Sanders and Sen. Elizabeth Warren. It makes sense given Yang’s views on the changing nature of the labor force and the way that work is intrinsically tied to insurance coverage in America right now. However, Yang toldFortunewould support a transition period to such a government program.
He also pushed the prospect of “human-centered capitalism.” One of its basic tenets? “The unit of a Human Capitalism economy is each person, not each dollar.”
Yang has a long ways to go in a crowded 2020 presidential field. His performance in Thursday night’s debates will prove a key chapter in his quest.
—Meet the 2020 candidate: Andrew Yang
—4 times 2020 candidates clashed during theDemocratic debate
—5 things to watch for onnight 2of the Democratic presidential debate
—What the2020 Democratic candidates didn’t sayduring the first debate
—Can socialism win in 2020?Democrats aren’t embracing it |
First Debate Gives Democratic Underdogs Momentum
Sen. Cory Booker at the first Democratic primary debate. (Photo: Jim Watson/AFP/Getty Images) MIAMI — After Wednesday night’s Democratic presidential debate, senior members of New Jersey Sen. Cory Booker’s staff headed to a local bar where they celebrated until three in the morning. Booker’s team had ample reason to celebrate. Prior to the debate, Booker had struggled to gain traction in the polls and his once bright political star seemed to be fading against the gravitational pull of frontrunners like former Vice President Joe Biden, Sen. Bernie Sanders and Sen. Elizabeth Warren. For Booker, the night’s first breakout moment was a sideways glance at former Texas Rep. Beto O’Rourke, who responded in English and Spanish while dodging a question on tax rates. After that early meme-worthy exchange, the candidates tried to swipe one another on policy, while Booker, who stood close to center stage, took several opportunities to connect his policies to personal stories. The leaders of the pack didn’t change on Wednesday night. Warren had a strong and steady performance that didn’t diminish her standing, and Biden and Sanders aren’t due to take the stage until the second debate Thursday evening. But the surprise showing was from three candidates who had been polling in the single digits and getting limited media attention: Booker, former Secretary of Housing and Urban Development Julián Castro and New York City Mayor Bill de Blasio, came out of the debate with strong reviews, newfound swagger and some momentum. For Booker, the debate gave him the opportunity to talk about his sweeping gun control plan, and emphasize that he’s the rare national politician who lives in a struggling inner city. “I think I’m the only one, I hope I am, that had seven people shot in their neighborhood just last week,” Booker said. That strategy served him well, according to the New York Times, which said Booker topped the rest of his challengers with 11 minutes and 6 seconds of airtime, a coveted commodity so early in the primary season. According to Google Trends, Booker was the most-searched candidate during the debate. When the candidates left the stage, Booker was mobbed in the “spin room” by reporters. A senior Booker campaign aide also said they had “huge fundraising” during the debate and the following day, and called it their “biggest moment of the campaign” since it launched in February. Story continues “This is the moment where people were watching him for the first time of this campaign and they liked what they saw,” the senior aide said. Democratic presidential hopeful and former HUD Secretary Julián Castro. (Photo: Jim Watson/AFP/Getty Images) As the debate came to a close, the progressive activist group Indivisible conducted a flash poll of members asking who impressed most on the debate stage. Warren took first place, and Julián Castro, who served as Housing and Urban Development secretary under President Obama, got the second-place spot in the survey of activists. Booker scored a respectable third. Castro, whose campaign had similarly struggled out of the gate, secured 8 minutes and 47 seconds of airtime , including a viral moment that also came at O’Rourke’s expense. Castro called out his fellow Texan for not supporting the repeal of Section 1325, which is the provision of U.S. law that makes it a federal offense to cross the border illegally. “Some of us on this stage have called to end that section, to terminate it; some, like Congressman O'Rourke, have not,” Castro said on stage, gesturing directly to the former Representative. “And I want to challenge all of the candidates to do that. I just think it is a mistake, Beto, and I think if you truly want to change the system then we have to repeal that section.” It was a breakthrough moment for Castro’s campaign, which has struggled to create a compelling narrative. Casting a clear opponent in O’Rourke, who was reportedly gun-shy and fielded post-debate criticism for answering the tax policy question in Spanish, created a clear runway for Castro to double-down on his progressive plan to decriminalize migration. Castro’s campaign manager, Maya Rupert, told Yahoo News she felt his debate performance was “a chance to show what this campaign is.” “Exactly what I wanted to happen happened, and that is that people actually got to meet my boss,” Rupert said. “He’s not coming from an existing platform, he has lower name recognition than everyone, so when we go places when people actually get to see him, his message really resonates.” Enthusiasm for Castro spilled over to the post-debate spin room, where he was mobbed by reporters while going from television appearance to television appearance. Rupert said she and her candidate were separated in the crush of attention. They reunited in the early hours of Thursday morning as they bought some late night snacks in a CVS. When they saw each other, the pair hugged in the aisles. New York City Mayor Bill De Blasio. (Photo: Joe Raedle/Getty Images) New York City Mayor Bill de Blasio also unexpectedly gained momentum in the debate. He entered the race last month with basement-level poll numbers and widespread head-scratching among politicos and pundits who questioned why he believed he could win with middling approval in his hometown. On stage, de Blasio staked his claim as an unabashed progressive. He scored an early viral moment when he and Warren were the only candidates who raised their hands when moderators asked who would eliminate private health insurance as president. And de Blasio connected conversations about immigration and police reform to his personal story, citing his experiences as a father in an interracial family. “For the last 21 years, I’ve been raising a black son in America,” de Blasio said, adding, “And I’ve had to have very, very serious talks with my son, Dante, about how to protect himself in the streets of our city ... including the fact that he has to take special caution because there have been too many tragedies between young men and our police.” Headlines about the New York mayor did a 180 after the debate. Buzzfeed declared “Bill de Blasio … actually maybe knows what he’s doing.” Even the New York Daily News, which is part of the city press corps that has had a tortured relationship with de Blasio, said the night “proved he belongs on Democratic debate stage.” De Blasio’s team came into the race confident that their candidate could overcome his doubters once he was viewed outside the lens of the New York City media . A senior de Blasio aide described the night as an opportunity for him to “highlight the need for a conversation about the heart and soul of the party” and “demonstrate to working people that Democrats will deliver results.” “We know we have the best ideas,” the de Blasio aide said. Cory Booker meets the press after the debate. (Photo: Saul Loeb/AFP/Getty Images) De Blasio, Booker and Castro emerged from the first debate in a stronger position than before, but it will take a lot to ride that new momentum to the front of the pack. All of their performances will surely be measured against the second debate Thursday night, which includes the two leaders in the polls, Biden and Sanders. Major moments from the more high-profile candidates could easily eclipse the first debate, and memories of their relatively strong performances may be short-lived. “Cory did great last night, but we have to remember this is a marathon, not a sprint,” said one Booker campaign source. “The way we keep up the momentum is by doing what we are doing. Keep laying the groundwork in the early states, reaching out to voters who are just tuning in for the first time.” A senior de Blasio adviser echoed that sentiment. “I think the night went about as well as it could have, but I was telling the team the debate doesn’t really end when the debate ends,” the adviser said. “It’s like what are you doing tomorrow morning?” Read more from Yahoo News: 5 key takeaways in the first Democratic debate 'BORING!': How the Trump team reacted to the debate Beto breaks into Spanish in first answer NBC hot mic mars a moment Health care question divides the field Here's the one thing Democratic candidates want you to remember about them after tonight's debate |
Asia bankers bet on Alibaba, follow-on fundraising amid trade gloom
* Asia-Pacific IPO volume halved to $22.5 billion in H1
* Region's equity-raising deal volume fell by 26% in H1
* Investors more cautious about valuations
* Fewer elephant-sized IPOs in the pipeline this year
By Julie Zhu and Jennifer Hughes
HONG KONG, June 28 (Reuters) - Asia's army of equity capital bankers are betting on a stream of listed companies seeking fresh funds, including Alibaba's plans for an up to $20 billion Hong Kong share sale, as trade tensions continue to weigh on the big business of taking firms public.
Proceeds from IPOs in Asia-Pacific halved in the six months ended June to $22.5 billion, data from Refinitiv shows.
Overall equity capital raising volumes fell by 26%, even as companies including newly-listed technology stocks sought fresh funds via follow-on offerings and convertible bonds.
Bankers said IPO volumes were weakened by volatile markets amid the ongoing U.S.-China trade tensions.
"Investors have become more cautious about valuations," said Li Hang, head of global equity capital markets and syndicate at investment bank CLSA.
"They show less interest in deals and tend to wait longer instead of giving an early indication of interest unless it's a must-hold stock," he added.
Not even one IPO made the biggest 10 equity market deals so far this year in Asia-Pacific. The $1.2 billion initial public offering by Ningxia Baofeng Energy Group Co Ltd in Shanghai in April was the 11th biggest equity deal.
The two biggest equity deals were the $6 billion and $3.9 billion raised via convertible bonds by China Citic Bank and Ping An Bank, respectively.
Hong Kong exchange was still the busiest in the region for IPOs, with $7.3 billion to its credit, Refinitiv data shows.
That includes the $1 billion raised by generic drugmaker Hansoh Pharmaceutical but not the up to $1.24 billion expected for logistics property developer ESR Cayman, which pulled its deal this month amid shaky markets.
"There are a lot fewer elephant-sized IPOs in the pipeline and the long list of smaller deals will need a more stable market backdrop for many of them to complete," said Alex Abagian, co-head of Asia Pacific equity capital markets at Morgan Stanley.
ALIBABA SPURS HOPES
By far the largest upcoming deal is the expected Hong Kong listing by Alibaba , which would be the biggest secondary share sale globally in seven years.
The U.S.-listed e-commerce giant has filed confidentially for the deal, expected in the coming months.
Alibaba's plan is also notable for being the first tech company to use a 2018 rule change in Hong Kong aimed at tempting New York-listed Chinese companies to list closer to home.
The Hong Kong exchange is taking a patient approach to hope that others might follow Alibaba's lead.
"It's a complicated matter for these companies," said Christina Bao, HKEX's head of global issuer services. There are "a lot of moving pieces - not just within the company but also in the capital markets and in the macro environment".
Follow-on and convertible offerings have dominated Asia's equity capital raising this year, helped by companies' need for financing despite market turmoil and the fact that many recent tech IPOs raised less than they had hoped.
Chinese EV maker NIO raised $650 million via a convertible bond in January, just four months after a $1.15 billion IPO, while game streaming group Huya Inc raised $327 million in a follow-on share offering in April.
While convertible activity has quietened as interest rates eased, the products are popular in a rising rate environment and bankers believe the boom in such fund raising will continue.
"If you're a high growth company, having alternative sources of capital to tap into - such as convertible bonds - to fund that growth is important," said David Binnion, co-head of equity capital markets in Asia ex-Japan at Goldman Sachs.
(Reporting by Julie Zhu; Writing by Jennifer Hughes; Editing by Himani Sarkar) |
Activists Urge Florida Democrats to Return Donations From Private Prison Contractor
In an open letter to the Florida Democratic Party, a coalition of organizers, workers, students, and teachers isurging the party to return donationsit received from the private prison contractor, G4S Secure Solutions.
Last year, activists were able to successfully pressure Florida Democrats tosign a resolutionpromising to stop taking money from private prison corporations and their respective lobbies, despite some internal backlash within the party. But the Florida Democratic Party accepted a $10,000 donation from G4S in February of this year.
G4S offers a number of controversial security services. In 2014, G4S was under scrutiny forproviding surveillance equipmentto Israeli checkpoints and prisons. The company has provided services to U.S. prisons, transporting incarcerated people between prisons; andruns immigrant detention centersin other countries.
The more than 40 activist groups and community leaders that signed on to the open letter argued that “no person deserves to be locked in a cage for a profit.” As such, the signees demanded that the Florida Democratic Party “exercise moral leadership and authority by immediately giving back the $10,000 donation.”
Organizations that signed on to the letter include Dream Defenders, a nonprofit that organizes around freedom and liberation in Florida; the Florida Immigrant Coalition; the DemocraticProgressiveCaucus of Florida; and the Incarcerated Workers Organizing Committee, a committee of the Industrial Workers of the World thathelped plan a nationwide prison strikelast summer.
For-profit detention centers are “one of the most pervasive evils spreading in the U.S.,” Thomas Kennedy, the political director of the Florida Immigrant Coalition toldFortune.“We’re completely opposed to the idea that people could be detained for a profit motive.”
Signees of the open letter say the party violated theresolutionby accepting the donation from G4S.
Some Democrats have attempted to build their bases around a liberal anti-Trump resistance movement, repeatedly calling attention to and condemning the president’s family separation policies and detention of child immigrants.
But even as Democrats publicly denounce these policies, they are “privately profiting off of the very system that keeps people in cages,” an activist with Dream Defenders said in a statement on Instagram. “This ain’t a good look and we, the people deserve better.”
In 2018, Dream Defenders was able to collect pledges from Democratic Reps. Debbie Wasserman-Schulz and Charlie Crist to not accept money from private prisons. All four of the Democratic candidates who ran for governor in 2018 pledged the same.
The Florida Democratic Party did not immediately respond to requests for comment for this story.
“The Party voted to be on the right side of history and to cut ties with a multi-billion dollar industry that profits from separating our families and putting children and poor people into cages,” organizers wrote in the letter. Activists further argued that the party’s decision to accept money from the private prison contractor “goes against everything we stand for as community members who value life, the environment, and safety for all people.”
Activists who signed the open letter urged the party to immediately return the funds and meet with civil rights and advocacy groups to develop guidelines for how it accepts campaign contributions in the future.
“The best thing for [Florida Democrats] to do would be to donate the money to organizations fighting for immigrant rights or criminal justice reforms,” said Kennedy, who added that advocates want Democratic representatives to honor their values.
—4 times 2020 candidates clashed during theDemocratic debate
—5 things to watch for onnight 2of the Democratic presidential debate
—What the2020 Democratic candidates didn’t sayduring the first debate
—Elizabeth Warrenholds her own as lesser-knowns break out in first debate
—Julián Castrobreaks out in a debate defined by border policy and immigration
—Can socialism win in 2020?Democrats aren’t embracing it |
What You Should Know About Leader Environmental Technologies Limited's (SGX:LS9) Financial Strength
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While small-cap stocks, such as Leader Environmental Technologies Limited (SGX:LS9) with its market cap of S$9.9m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Since LS9 is loss-making right now, it’s vital to evaluate the current state of its operations and pathway to profitability. Let's work through some financial health checks you may wish to consider if you're interested in this stock. Nevertheless, these checks don't give you a full picture, so I recommend youdig deeper yourself into LS9 here.
Over the past year, LS9 has reduced its debt from CN¥65m to CN¥55m made up of predominantly near term debt. With this debt payback, LS9's cash and short-term investments stands at CN¥20m , ready to be used for running the business. Moreover, LS9 has produced CN¥23m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 43%, indicating that LS9’s current level of operating cash is high enough to cover debt.
With current liabilities at CN¥189m, the company has been able to meet these obligations given the level of current assets of CN¥239m, with a current ratio of 1.27x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Commercial Services companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
LS9 is a relatively highly levered company with a debt-to-equity of 90%. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. Though, since LS9 is presently unprofitable, there’s a question of sustainability of its current operations. Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.
Although LS9’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 LS9 has company-specific issues impacting its capital structure decisions. You should continue to research Leader Environmental Technologies to get a better picture of the small-cap by looking at:
1. Valuation: What is LS9 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 LS9 is currently mispriced by the market.
2. Historical Performance: What has LS9's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Iowa reveals all-gold uniforms for Penn State game
Iowa will have gold uniforms and a gold facemask on the helmets on Oct. 12 vs. Penn State. (AP Photo/Charlie Neibergall) Iowa wants to challenge Michigan State for the brightest alternate uniforms in the Big Ten. The Hawkeyes revealed an all-gold uniform that the team will wear Oct. 12 against Penn State. View this post on Instagram A post shared by University of Iowa Football (@hawkeyefootball) on Jun 27, 2019 at 3:07pm PDT October 12th. Itll be golden | #Hawkeyes pic.twitter.com/w3l1X8QXXe Hawkeye Football (@HawkeyeFootball) June 27, 2019 The Nittany Lions wear all-white on the road so that game will be quite the monochrome contrast. The players looked enthused though. The black wings on the front of the shoulders are a nod to some ugly uniforms that Iowa wore in the 1990s. What do we have here?? pic.twitter.com/gTwa1BuTEX Hawkeye Football (@HawkeyeFootball) June 27, 2019 Iowas standard uniforms are some of the best in college football because theyre simple and straightforward. These bright yellow ones are not, though the helmets do look good with the gold facemasks. Michigan State revealed its garish alternates in April. The Spartans will wear their neon-green highlighted uniforms against Penn State too. Sorry PSU fans, youre apparently the Big Tens alternate uniform opponent. Nick Bromberg is a writer for Yahoo Sports 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 |
Is Leader Environmental Technologies Limited (SGX:LS9) A Financially Sound Company?
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
While small-cap stocks, such as Leader Environmental Technologies Limited (SGX:LS9) with its market cap of S$9.9m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. Since LS9 is loss-making right now, it’s crucial to evaluate the current state of its operations and pathway to profitability. We'll look at some basic checks that can form a snapshot the company’s financial strength. However, potential investors would need to take a closer look, and I suggest youdig deeper yourself into LS9 here.
Over the past year, LS9 has reduced its debt from CN¥65m to CN¥55m . With this reduction in debt, LS9's cash and short-term investments stands at CN¥20m to keep the business going. Moreover, LS9 has produced cash from operations of CN¥23m over the same time period, leading to an operating cash to total debt ratio of 43%, indicating that LS9’s current level of operating cash is high enough to cover debt.
With current liabilities at CN¥189m, it seems that the business has been able to meet these obligations given the level of current assets of CN¥239m, with a current ratio of 1.27x. The current ratio is calculated by dividing current assets by current liabilities. Generally, for Commercial Services companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With debt reaching 90% of equity, LS9 may be thought of as relatively highly levered. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies. But since LS9 is presently loss-making, sustainability of its current state of operations becomes a concern. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.
LS9’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. Keep in mind I haven't considered other factors such as how LS9 has been performing in the past. You should continue to research Leader Environmental Technologies to get a better picture of the small-cap by looking at:
1. Valuation: What is LS9 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 LS9 is currently mispriced by the market.
2. Historical Performance: What has LS9's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Senate backs massive defense bill, targets China, sets Iran vote
WASHINGTON (Reuters) - The U.S. Senate on Thursday passed a $750-billion defense policy bill with provisions that target China on issues from technology transfers to the sale of synthetic opioids, pushing to counter growing Chinese influence around the world. The 973-page National Defense Authorization Act, or NDAA, passed by an 86-8 vote. However, in an unusual procedural move, the Senate will have a separate vote on Friday on an amendment that would ban Republican President Donald Trump from attacking Iran without first obtaining congressional approval. Despite growing tensions with Iran, the amendment is not expected to get the 60 votes needed to pass the Republican-controlled Senate. Among other provisions, the Senate NDAA requires detailed reporting from the Department of Defense to prevent transfers of sensitive technology to China or Russia, as well as reports on access to the Arctic. It also requires tighter screening of scholars seeking visas to the United States. The Senate's passage of the NDAA comes as Trump prepares for a high-stakes meeting with Chinese President Xi Jinping in Osaka, Japan, on Saturday on the sidelines of the Group of 20 summit. Many hope the meeting will help end a months-long trade war between the world's top two economies. In Beijing on Friday, foreign ministry spokesman Geng Shuang expressed anger at the bill, saying the government had already made a protest to the United States about it. "Once the bill becomes law, it will harm Sino-U.S. relations, and interfere with, and damage, cooperation in some important areas," Geng said. China urges the United States to objectively view its development and not allow any of the "negative China-related" content to become law, he added. The NDAA is still several steps from becoming law. The Senate version must be reconciled with a version expected to come up for a vote next month in the Democratic-controlled House of Representatives. That compromise version, expected later this year, must pass both the Senate and House, and be signed into law by Trump. The Senate NDAA also includes an amendment to bar federal funds from going to Chinese state-owned companies such as CRRC, the world's largest maker of passenger trains. CRRC said in a statement that U.S. lawmakers should "pause and review the facts regarding cybersecurity and competitive pricing in the passenger railcar market before making any decisions that will invariably and significantly impact U.S. transit agencies' ability to modernize their fleets." Story continues One of the few pieces of major legislation passed every year, the NDAA becomes a vehicle for a broad range of policy measures, as well as determining everything from military pay levels to which ships or aircraft will be modernized, purchased or discontinued. The Senate NDAA also contains an amendment to strengthen sanctions against North Korea, imposing secondary sanctions on financial institutions that do business with Pyongyang in violation of existing sanctions. (Reporting by Patricia Zengerle; additional reporting by David Brunnstrom and Alexandra Alper, and Ben Blanchard in BEIJING; Editing by Leslie Adler and Clarence Fernandez) View comments |
MC Mining Limited's (ASX:MCM) Path To Profitability
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MC Mining Limited's (ASX:MCM): MC Mining Limited, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of metallurgical and thermal coal projects in South Africa. With the latest financial year loss of -US$103.6m and a trailing-twelve month of -US$7.2m, the AU$94m market-cap alleviates its loss by moving closer towards its target of breakeven. As path to profitability is the topic on MCM’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for MCM, its year of breakeven and its implied growth rate.
Check out our latest analysis for MC Mining
MCM is bordering on breakeven, according to the 2 Oil and Gas analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$2.9m in 2021. So, MCM is predicted to breakeven approximately 2 years from now. How fast will MCM have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 88% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
I’m not going to go through company-specific developments for MCM given that this is a high-level summary, however, bear in mind that generally oil and gas companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before I wrap up, there’s one aspect worth mentioning. MCM has managed its capital judiciously, with debt making up 11% of equity. This means that MCM has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are key fundamentals of MCM which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at MCM, take a look atMCM’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further examine:
1. Historical Track Record: What has MCM's performance 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. Management Team: An experienced management team on the helm increases our confidence in the business – take a look atwho sits on MC Mining’s board and the CEO’s back ground.
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. |
Venice: Sylvester Stallone & Rambo: Last Blood Poised To Light Up The Lido?
Click here to read the full article. EXCLUSIVE : Things are heating up in regards to the Venice Film Festival after we exclusively reported yesterday that Warner Bros Joker is eyeing the awards season launchpad. Now comes word that Sylvester Stallone could light up the Lido with Rambo: Last Blood , which is due to get a September 20 release stateside via Lionsgate and an Italian release soon after. Nothing has been set, but buzz is building about a potential special screening. Sly has previous history with the festival having received its Jaeger-LeCoultre Glory to the Filmmaker Award in 2009 and also being on hand for the official screening of Cop Land back in 1997. Stallone was feted at Cannes this year where he showed a rapt audience first footage of the fifth installment in the money-spinning Rambo franchise. This go-around Slys John Rambo pits his wits against a Mexican Cartel. Adrian Grunberg ( Get The Gringo ) directs the well-sold Millennium movie which co-stars Paz Vega ( The OA ). Said Stallone in Cannes, In every film, Rambo never goes home, he goes out the to the jungle or Afghanistan. In the new one, he does come home, but in a way he never arrives. Hes there, but hes not. Thats what the whole story is built around. As soon as he walks outside his door, he has no more control. The world controls you. He also added, Theres going to be some serious vengeance in this movie. A lot of people getting hurt. Speculation is building about potential Venice titles with private screenings for the festival under way. The event, which runs August 28 September 7, will make its lineup announcement on July 25. Beyond the movies we highlighted yesterday, another that could be in the mix is the Safdie brothers Uncut Gems , which is meant to be strong. Related stories Venice Film Festival: Is 'Joker' On The Cards? Early Speculation Swells For 2019 Edition 'Voyagers': Lionsgate Snaps Up U.S. Rights To Neil Burger Sci-Fi-Thriller With Colin Farrell, Tye Sheridan & Lily-Rose Depp Story continues Mary J. Blige Inks First-Look TV Deal At Lionsgate One more Lido potential to keep an eye on is a TV series. The only two small screen dramas to debut at Venice so far are HBOs Mildred Pierce and Paolo Sorrentinos The Young Pope . The follow-up to the latter is currently in post-production so will probably be in the conversation. It seems likely that one of the growing number of high-end series emanating from Italy will make it to the festival. Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Uruguay withdraws from OAS meeting over Venezuela opposition delegation
By Luis Jaime Acosta MEDELLIN, Colombia (Reuters) - Uruguay on Thursday withdrew from a meeting of the Organization of American States (OAS) being held in Medellin, Colombia, in protest of the presence of what it said was an illegitimate delegation from Venezuela. The incident, on the first of two days of meetings, laid bare a lack of consensus in the organization over whether to increase pressure on embattled Venezuelan President Nicolas Maduro, who is backed by some member states but called a dictator by others. Though Venezuela announced its withdrawal from the OAS in April 2017, its political situation has dominated recent assemblies. The country's opposition, lead by National Assembly head Juan Guaido, appointed Gustavo Tarre as its representative to the body. Guaido in January invoked the constitution to assume a rival interim presidency after rejecting Maduro's 2018 re-election as illegitimate. Many of the 35 members of the OAS recognize Guaido as the country's leader. "Uruguay considers this an attempt to impose the recognition of this delegation as legitimate representatives of Venezuela - it is no more and no less than a subjugation of the legality of the OAS," Uruguay's vice foreign minister Ariel Bergamino said during the meeting. "There is no other choice but to be against an act of this nature." "We are withdrawing from this meeting but not from the OAS," Bergamino added. Mexico said the credentials presented by the opposition delegation did not meet the necessary standards for admittance, while Bolivia said it reserved the right not to recognize resolutions approved while the delegation is present. Several Maduro-supporting Caribbean countries also expressed dismay, while nations including Argentina, Brazil and Paraguay recognized the delegation. The opposition delegation's presence showed the broad international recognition of Guaido, U.S. OAS representative Kimberly Breir told the assembly. Julio Borges, head of the opposition delegation, said countries which back Maduro do so because his government sells them oil at favorable prices. Story continues "Those countries know very well what we have to achieve in Venezuela, very soon - give voice to the Venezuelan people and get Maduro out of power," he said. Venezuela, home to the world's largest oil reserves, has remained in political limbo as its economic and humanitarian crises have worsened. Shortages of food and medicine have led some four million Venezuelans to flee. OAS secretary Luis Almagro said on Wednesday the body would seek to increase pressure on Maduro and debate eventual sanctions. Maduro has accused the OAS, which is based in Washington, of being a pawn of the United States. (Reporting by Luis Jaime Acosta and Carlos Vargas; Writing by Julia Symmes Cobb and Helen Murphy; Editing by Michael Perry, Chris Reese and Jonathan Oatis) |
5 ways to cut your 2019 tax bill now
Congrats. You filed your 2018 tax return. But don’t stuff it in a file cabinet just yet. Instead, look it over to uncover steps you can take right now to lower your 2019 tax bill.
The IRS revised the withholding table early in 2018 which resulted in less withholding for most taxpayers and consequently smaller refunds or even balances due at tax time, says Robert Westley, a CPA and member of the AICPA’s Personal Financial Specialist Credential Committee.
His advice: Check to see if you may need additional withholdings from your paycheck.The IRS calculatorcan help you with that. Use IRS Form W-4 to indicate any additional amount you want to be withheld.
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Choosing your filing status is generally a straight forward decision, but it can pay to compare the filing statuses you are eligible for each year, says Westley.
“A married couple can file jointly or separately, but in most cases filing separately is unlikely to decrease the overall tax bill,” he says.
If, however, one spouse has substantial unreimbursed medical expenses, filing separately will lower their adjusted gross income and allow the spouse with significant unreimbursed medical expenses to obtain a higher deduction amount, says Westley.
Maximizing the use of pre-tax dollars is a smart way to lower your 2019 tax burden. Ask your human resources department about any your pre-tax employee benefits, says Westley. Those might include health and/or dependent care flexible spending accounts, commuter benefits; a Section 125 premium-only insurance plan, and a health savings account (HSA).
Maximize how much you contribute to your employer-sponsored retirement plan. Employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan can contribute $19,000 this year. Plus, those aged 50 and older can contribute an additional $6,000 to their retirement plan.
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Once you maximize your 401(k), consider funding your IRA. “There are income limitations if you are a participant in a 401(k) and want to do an IRA but the limits are getting higher,” says Ted Sarenski, the CEO of Blue Ocean Strategic Capital.
Search for ways to harvest tax losses to offset any gains you may have recognized or will recognize during 2019. Tax loss harvesting, for example, is the practice of selling a security that has experienced a loss as a way to offset taxes on both gains and income.
“When harvesting tax losses, be sure to keep in mind the wash-sale rules when buying back into the market” says Westley.
According to the Securities and Exchange Commission, a wash sale occurs when you sell or trade securities at a loss and within 30 days before or after the sale you buy substantially identical securities. Internal Revenue Service rules prohibit you from deducting losses related to wash sales.
Westley also says fixed-income investors ought to review their 2018 marginal tax bracket and calculate whether taxable or tax-exempt fixed income offers a higher after-tax yield.
Jonathan Gassman, a CPA, and CEO of the Gassman Financial Group, recommends rebalancing your investment portfolio “to provide additional tax-advantaged cash flow.” He suggests adding more dividend-paying stocks, which are taxed at preferential rates, and investing in bonds issued by the federal government, which may be exempt from state and local taxes.
Westley says those who are under the standard deduction threshold because of the new $10,000 cap on state and local tax (SALT) deductions should focus on what they can control.
“Since charitable deductions are fully controllable, bunching your charitable contributions into a single year, rather than contributing smaller sums over serval years, may put you over the new standard deduction hurdle,” he says.
For 2019, the standard deduction amounts are $12,200 for individuals, $18,350 for heads of household, and $24,400 for married couples filing jointly and surviving spouses.
The new SALT cap will further increase the tax savings for taxpayers who can move their domicile lower tax states, says Gassman. Low state and local tax states include Arizona, Colorado, Florida, Georgia, Nevada, and South Carolina.
Robert Powell is the editor of TheStreet’s Retirement Daily www.retirement.thestreet.com and contributes regularly to USA TODAY. Got questions about money? Email Bob at rpowell@allthingsretirement.com.
This article originally appeared on USA TODAY:5 ways to cut your 2019 tax bill now |
Jony Ive, Star Designer of the iMac, iPod, and iPhone, to Leave Apple
Apple chief designer Jony Ive announced Thursday that he is opening his own design firm, LoveFrom, and will be leaving Apple later this year. The iconic designer, whose products helped Apple claw itself back from the brink of bankruptcy, has been a key figure at the worlds most successful consumer electronics company for more than 25 years. This just seems like a natural and gentle time to make this change, Ive, 52, told the Financial Times. For almost 20 years, dating back to the groundbreaking reveal of the iMac desktop computer in August 1998, Ive has been the design soul of Apple . Even at 31-years old, Apples then vice president of industrial design had a poetic way of describing the look and feel of Apples products. You know how, when you take a shower, condensation forms on the glass? Ive told Fortune in 1998 about Apples second coming . We wanted that same kind of exquisite matte surface finish on the cable. And each turn of Ives tale follows a similar arc to Apples climb. With every product Apple has releasedfrom the iPod, a Dove soap-sized music player that derailed the entire music industry , to the Apple Watch, which has gutted the sales of traditional timepieces Ives impact has spread further and wider, just like his companys. Ives meticulous attention to detail led towhat was for someanguishing waits for products. For example, the iPhone was arguably Ives most successful product, and the iPhone X took five years to develop . However, Ive has likely been well compensated for his fastidious nature, though his net worth is a mystery . Ives salary information has been exempt from SEC disclosure rules because the Apple doesnt technically classify him as a director, despite his title as chief design officer. In recent years, however, there have been questions surrounding Ivesand Applesdesign inspiration . Once a fixture at Apple events, Ives appearances had been reduced spots in promotional videos. In 2015, he reportedly handed off his day-to-day managerial duties , a move that allowed him to spend more time in the U.K. with his family. Then came odd turns designing pet projects, like a Christmas tree inspired by nature and technology, tradition and the future, for a London hotel in 2016, and in 2018, a $150,000 ring made entirely out of diamonds . He even contributed ideas for the design of Kylo Rens lightsaber in Star Wars: The Force Awakens. Story continues Over that time, Ive also dreamt up his most lasting design to date. Apple Park, the companys spaceship-like headquarters in Cupertino, Calif. was designed by Ive, and built like a product, not like a piece of architecture , Apple industrial designer Marc Newson told the Wall Street Journal. (Newson, The Financial Times reports, will also be leaving Apple to join Ive at LoveFrom.) There may be more poetry than truth to that statement, as the 2.8 million square foot, ring-shaped building which opened in July 2017 reportedly cost $5 billion to build. Ives departure from Apple comes at a fraught time for the company. Earlier this year, Apple announced the departure of Angela Ahrendts , the companys retail chief who came onboard in 2014 after 12 years as the CEO of Burberry. In addition, with iPhone sales waning, Apple is looking for its next next big thingan effort that has it doing everything from launching a streaming video service to acquiring a self-driving vehicle startup . Ive, meanwhile, will launch LoveFrom, a startup of his own. Apple will be a client, allowing Ive to continue working on wearable and healthcare products with the company hes been at since 1992. LoveFrom will be based in California for now The Financial Times reports, and Ives firm will be taking outside clients. Jony is a singular figure in the design world and his role in Apples revival cannot be overstated, from 1998s groundbreaking iMac to the iPhone and the unprecedented ambition of Apple Park, Apple CEO Tim Cook said in a statement. Apple will continue to benefit from Jonys talents by working directly with him on exclusive projects, and through the ongoing work of the brilliant and passionate design team he has built. More must-read stories from Fortune : The fall and rise of VR: The struggle to make virtual reality get real Its just lazy: Currents CEO on Facebook Calibras similar logo Slack went public without an IPO . Heres how a direct offering works Welcome to the next generation of corporate phishing scams Listen to our new audio briefing, Fortune 500 Daily Catch up with Data Sheet , Fortune s daily digest on the business of tech. |
Calithera Biosciences Inc (CALA) PRESIDENT AND CEO Susan Molineaux Bought $200,208 of Shares
PRESIDENT AND CEO of Calithera Biosciences Inc (NASDAQ:CALA) Susan Molineaux bought 51,600 shares of CALA on 06/25/2019 at an average price of $3.88 a share. View comments |
Mark Zuckerberg Defends Libra, Says Facebook Only Has One Vote
Mark Zuckerberg provided some rare commentary on Facebook’s new Libra cryptocurrency project. CNBC’s Fast Moneyposted the soundbiteto Twitter:
“Building a financial system is not the kind of thing that a company can do by itself. So we played a role in helping to stand this up.
The partner companies Zuckerberg references shouldn’t give consumers or businesses any more reason to trust Libra, certainly not more than they can trust decentralized, proof-of-work cryptos like bitcoin and Ethereum.
These are all corporations with a record of failing to protect their customers’ financial information. They can’t keep your money or information safe from the internet era’s inevitable data breaches. It’s not merely that they are inherently untrustworthy. (Although they might be.) It’s that all corporate finance carries inherent counter-party risk. This is especially true in the internet era.
Two of Libra’s biggest co-founders are Visa and MasterCard.
Read the full story on CCN.com. |
How Should Investors React To Oldfields Holdings Limited's (ASX:OLH) CEO Pay?
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In 2016 Richard Abela was appointed CEO of Oldfields Holdings Limited (ASX:OLH). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Oldfields Holdings
According to our data, Oldfields Holdings Limited has a market capitalization of AU$2.9m, and pays its CEO total annual compensation worth AU$269k. (This is based on the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$237k. We examined a group of similar sized companies, with market capitalizations of below AU$286m. The median CEO total compensation in that group is AU$357k.
So Richard Abela is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Oldfields Holdings, below.
On average over the last three years, Oldfields Holdings Limited has grown earnings per share (EPS) by 92% each year (using a line of best fit). Its revenue is down -3.8% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts, shareholders might want to examinethis detailed historical graphof earnings, revenue and cash flow.
Most shareholders would probably be pleased with Oldfields Holdings Limited for providing a total return of 36% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Remuneration for Richard Abela is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want tocheck for free if Oldfields Holdings insiders are buying or selling shares.
If you want to buy a stock that is better than Oldfields Holdings, thisfreelist of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Wealthy donation to state raises concerns about transparency
HARTFORD, Conn. (AP) — So excited about a pledge of $100 million for public education from Barbara and Ray Dalio, founder of the world's largest hedge fund, Connecticut state officials agreed to add $100 million in taxpayer money, along with some concessions that have raised concerns over transparency. At the request of the wealthy Connecticut couple's foundation, Dalio Philanthropies, state lawmakers said they agreed the spending and policy-making of the new partnership will be overseen by a nonprofit entity, and not a government agency, making it exempt from the state's Freedom of Information Act and state ethics rules. Democratic House Speaker Joe Aresimowicz defended the decision, saying the Dalios' historic contribution was "a golden opportunity" for the state and he was "really excited about the opportunity to partner with individuals who are willing to put up that much money to make the state a better place." While Connecticut has wrestled with fiscal challenges for years, some are questioning this arrangement and how much taxpayers will know about where the money will go and exactly how the Dalios plan on it being spent. The partnership, which is supposed to include another $100 million in matching funds from other private contributions, has broadly been described as an opportunity to strengthen public education and promote greater economic opportunity, focusing on communities with high rates of poverty and disengaged youth. "The fact that tax dollars are involved, to me, mandates that there be transparency ... The fact that any time we're fulfilling a public service, there must be transparency," said Rep. Vincent Candelora of North Branford, the second highest-ranking Republican. "Since when does our wealthy community dictate how public policy should be crafted?" Recent education-related philanthropic giving in the U.S. has focused mostly on improving individual school districts. That includes Facebook founder Mark Zuckerberg's $100 million donation in 2010 to the Newark, New Jersey, public schools. His foundation's gift was matched by private contributions and overseen by a local foundation, which was criticized for a lack of transparency. Story continues Legislation that authorized Connecticut's investment in the partnership with Dalio Philanthropies specifies the nonprofit "must not be construed" as a public agency performing a government function. That surprised Connecticut Freedom of Information Commission Executive Director Colleen Murphy, who said there was no discussion about exempting the new Partnership for Connecticut Inc. from FOI rules. She noted how other entities that have performed a governmental function, such as a private company that once oversaw Connecticut's vehicle emissions testing system, ultimately had to abide by the state's FOI Act. Meanwhile, a representative of the nonprofit Connecticut Council on Freedom of Information, which advocates for open government, has called on lawmakers to remove the provision. Cadence Willse, a post-doctoral research fellow at Stanford University who has studied philanthropy in education, said Connecticut's partnership gives her pause. "I'm not sure how people will be able to understand where their tax dollars are going," she said, adding how other philanthropic efforts to improve education have tested novel strategies to see if they work so the taxpayers don't have the shoulder the financial burden. In this case, Connecticut taxpayers will be on the hook for $20 million a year over five years. The nonprofit was tucked into the new two-year state budget deal reached between Democratic lawmakers and Democratic Gov. Ned Lamont, a wealthy former businessman who ran into Barbara Dalio at an elementary school in January and discussed the concept with her. Lamont's spokeswoman, Maribel La Luz, said the administration agrees with the Dalio foundation that an independent nonprofit will provide "the flexibility to move to make decisions, to have sensitive conversations." Barbara Dalio, who leads the foundation's public education efforts, added private conversations would be helpful so "people will feel more free to be open about disagreeing, coming to consensus." She said she understands people's concerns about transparency and acknowledges the arrangement is "unique." But Barbara Dalio insisted information about the partnership and its activities will be made available to the public, just like the foundation's work in the past. Dalio Philanthropies has donated more than $50 million over the past four years to Connecticut public schools, often working closely with local school districts and other organizations. The funds have paid for professional learning grants for teachers and programs that focus on improving graduation rates and helping disengaged and disconnected young people succeed. It's the first time the Dalios have partnered with the state or worked with matching funds, she said. Barbara Dalio pointed out that the new partnership is not a public agency and is not performing a public function or operating schools. Rather, she described it as a "nonprofit charity working to support public school systems and communities." She noted how the initial 13-member board of directors will be bipartisan, including the top Democratic and Republican leaders of the General Assembly, four appointees from the Dalio foundation and three from Lamont. That group will come up with criteria for a succeeding board that includes people with experience in education, student engagement, microfinance and other applicable areas. Dalio is well-aware that other education philanthropic initiatives have faced criticism for being top-down, not working closely with those in the trenches. "We are going to bring all the community together and we are all going to make those decisions together," she said. "Everything that we know we have learned from the teachers and the school leaders and the youth development organizations and the youth themselves. So it's something that we value and cherish. And I don't see any other way to work." Lamont has praised the Dalios for "stepping up," saying he's grateful for their contribution — the largest known philanthropic donation to benefit the state of Connecticut. "Every once in a while, just say thanks. Thanks for what you're doing. Thanks for stepping up. Thanks for making the contribution," said Lamont, when asked about the transparency concerns. "I think that's the tone we need as well." Lamont suggested on Wednesday that criticism of the partnership has made it somewhat challenging for him to raise the additional $100 million from private donors, telling reporters "some of the language" in the Legislative Office Building "doesn't make it any easier." La Luz said Lamont was referring to recent comments made on the House of Representatives floor by Candelora, who compared the decision to exempt the partnership from open government laws to a "group of corporate board holders" who go "to the balcony and sprinkle down dollars on, I guess, the peasants of Connecticut." La Luz said those comments offended both Lamont and potential donors. "It's that type of silly negative rhetoric that turns good people off to public service and limits creativity and ideas," she said. Candelora said Lamont recently asked him to tone down his criticisms. But Candelora said it is "bizarre" to think that one lawmaker's comments could be impeding philanthropic donations to the program. "It may be the lack of transparency that's causing the problem for them," he said. |
8 ways to spring clean your finances
You’ve filed your taxes, and now it’s time to make good on your promise to “spring clean” your finances.
One key task is to throw away – or shred – old bank and credit card statements and aging tax returns that no longer give you joy. But there are other steps you can take to buff up your finances.
Starting by analyzing. Spring is the perfect time to ask a CPA or certified financial planner to review your tax return, especially last year’s net after-tax income sources, says Ian Weinberg, the CEO of Family Wealth & Pension Management.
“Determine, he says, “your top marginal tax rate under the new tax laws and rates and see if some of your income may be better off as tax-free, long-term capital gains, or qualified dividends versus ordinary income, or vice versa,” he says. “Many people will find that their income-producing investments may need to be changed accordingly.”
For instance, a lower tax bracket could call for more ordinary income such as IRA distributions, while a higher tax rate could call for more tax-free income and fewer IRA distributions.
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Also, if you received a refund on your tax return, contribute the proceeds into an IRA or Roth IRA. “Most tax software makes it easy to do and this is a great habit to do each year,” says James Gambaccini, a financial planner with Acorn Financial. “Another option would be to use the proceeds to fund a child's 529.”
Prepare a list of your financial accounts – IRAs, Roth IRAs, 401(k)s, taxable accounts and health savings accounts.
“The objective is to consolidate similar accounts, IRAs for example, to a minimum number of custodians,” says Barbara O'Neill, a professor at Rutgers, the state university of New Jersey.
Doing this, especially with your retirement accounts, can help you lower the fees you pay and make it easier when you have to take required minimum distributions or RMDs after age 70½ on your IRAs, says Jon Ulin, the managing principal of Ulin & Co. Wealth Management. “A consolidated approach to investing will help to provide a more streamlined approach to your money management approach,” he says.
O’Neill also recommends eliminating and replacing accounts that charge high fees, mutual funds with 12b-1 fees for example, and/or ones that do not offer high interest rates.
“Compare at least three competing account providers,” she says. According to the Securities and Exchange Commission, 12b-1 fees are paid by the mutual fund out of fund assets to cover distribution expenses and sometimes shareholder service expenses.
Get a handle on your debts, how much interest you’re paying, and when payments are due, says Sarah Carlson, the founder of Fulcrum Financial Group. Search for ways to reduce the interest rate you pay on loans, credit cards and the like; consolidate debt if it makes financial sense, put in place a system to avoid late payments.
A growing number of people now have recurring payments that are automatically deducted from financial accounts. Review those payments, canceling those for products and services that are no longer used – such as gym memberships, says O’Neill. Apps such as Truebill and Trim App help you find and eliminate subscriptions.
“Your cellphone is one service that escalates over the years and is never second-guessed,” says Jeffrey Edwards, president of Atlas Financial Planning. “That 12-month free trial that hooked you five years ago is now full price and then some,” he says.
Joshua Mungavin, a financial planner with Evensky & Katz / Foldes Financial Wealth Management recommends documenting all your accounts, bills, and service provider contact information.
“You and your loved ones will be happy to have all important information together if there is an emergency or someone passes away,” he says.
"The Family Information Organizer:Your Planner for any Emergency, Disaster, or Loss of a Loved One" is a free eBook that you can use.
Review your auto, life, home and umbrella insurance policies to make sure you’re getting the most competitive rates.
“If you have good students enrolled in your plan, be sure to ask about special rates for children with good grades,” says Dwyer.
Cybersecurity is a critical area for your financial “spring cleaning,” says Aaron Clarke, a wealth adviser at Halpern Financial.
“If you have a password like ‘password123’ or your pet’s name, you need to increase your level of security, particularly for financial accounts and email,” he says.
Consider boosting your login protection. “Especially for financial accounts, add an extra layer of security with multi-factor identification, or multiple passwords, codes and security questions,” he says.
And, if you have trouble remembering all your passwords for various services you use, consider using a password manager.
“We do not recommend any one brand in particular, but we do recommend selecting a product with multi-factor authentication for the most security,” he says.
People die, get divorced, get remarried, have children. And when those and other life cycle events occur, people often forget to review their life insurance and retirement account beneficiary designations, says Scott Bishop, an executive vice president with STA Wealth Management. “If it has been a while since you have looked at them or don't know what they say, it is a great tip to get organized.”
Robert Powell is the editor of TheStreet’s Retirement Daily www.retirement.thestreet.com and contributes regularly to USA TODAY. Got questions about money? Email Bob at rpowell@allthingsretirement.com.
This article originally appeared on USA TODAY:8 ways to spring clean your finances |
Tax refund debate: Is it better for your wallet to get a tax refund or nothing at all?
The biggest tax code overhaul in decades has made sport of tracking this year's average tax refund size. (Currently, this year's refund is $22 higher versus last year.)
The scrutiny is also reviving any even older and highly emotional debate over the financial soundness of getting a refund at all.
While financial experts say it's smarter to receive bigger paychecks during the year rather than a refund, that’s not what most Americans do. About seven in 10 typically get a refund, which may help sustain the financially flawed practice.
“The ubiquity of it disqualifies the logical reason to not do it,” says Kit Yarrow, a consumer psychologist and professor emerita at Golden Gate University. “It doesn’t feel like a mistake if everyone is doing it.”
But there are other deep-seated – and not necessarily irrational – reasons why people choose refunds over larger paychecks. There's also just as much passion from the minority of taxpayers who prefer to zero out their taxes.
Here are their takes.
Donna Batton, a retired grandmother and widow, uses her tax refund to replenish the money she took out of her savings to pay for Christmas gifts. Her strategy echoes long-ago service banks offered called Christmas clubs, says Hal Arkes, an emeritus professor of psychology at Ohio State University.
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Banks would sequester a small sum each month from a customer's account into a non-interest bearing one that couldn't be tapped until November. “Without this, they would spend money throughout the year,” says Arkes. “Because they didn't have the self-control.”
Batton – who remembers Christmas clubs – relates to this. She realizes she could get larger pension and Social Security checks and squirrel that money away each month for the holidays.
“But I never seem to be able to do that,” says the 76-year-old, who habitually gets refunds. “I live paycheck to paycheck. At the end of the month, it gets hard and things come up that you're not prepared for.”
She’s also not missing out on much, she reasons. Her tax refund this year was $683. If she had deposited $57 a month last year into a savings account – and received 2 percent in a high-yielding online account – she would have made $8 in interest over the year.
That’s not worth the peace of mind knowing the money will be there after spending on Christmas.
“I just like knowing I have that refund to put back into my savings,” she says.
Tax refunds can also feel like a windfall or lottery winnings that can be put towards a big purchase, vacation or other small luxury. “There is a level of excitement that people feel around their tax refund,” Yarrow says. “That’s intoxicating.”
Matt Riley of Forsyth, Illinois, has earmarked this year's refund for a bathroom remodel in his new home. Other times the cash went toward a trip. “It’s a little fun fund,” says the 24-year-old bank trust officer.
While he doesn’t like the idea of paying the government too much each month, he prefers the smaller paychecks because they force him to live on less each month.
“Then that refund is a nice treat,” Riley says. “From a financial standpoint, it doesn’t make too much sense. But from a behavioral perspective, March is a happy month when I get that money.”
The biggest gripe that money-savvy folks have against refunds is that they are interest-free loans to the federal government. They aren’t wrong. Over the year, you pay too much in tax from your paycheck to Uncle Sam, who then refunds that extra amount after you file your taxes – with no interest.
At the very least, any extra money in each paycheck could go into a savings account and earn interest, these financial gurus say. A better strategy would be to use those extra dollars to pay off high-interest credit card debt, even if you had planned to put the refund toward that same balance.
“That won’t be as good because you could have whittled the balance down throughout the year,” Arkes says.
Once people understand there's a better use for that money – called opportunity cost in economics – they’ll less likely to want a refund, Arkes says.
Take Joe Berry, a math and social studies teacher outside Evansville, Indiana. He and his wife used to get the biggest refund possible, he says. But three years ago, after talking with friends who are financial planners, he now tries to zero out his taxes.
The extra money goes to his Roth IRA or his son’s 529 college savings plan.
“While I could fund [these] with a large refund at the end of the year, I’d be missing out on compounding interest,” he says.
Asked if he was familiar with “opportunity cost,” Berry said: “I teach that to my fifth-graders.”
This article originally appeared on USA TODAY:Tax refund debate: Is it better for your wallet to get a tax refund or nothing at all? |
Is Shine Corporate Ltd (ASX:SHJ) Excessively Paying Its CEO?
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Simon Morrison became the CEO of Shine Corporate Ltd (ASX:SHJ) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Shine
Our data indicates that Shine Corporate Ltd is worth AU$121m, and total annual CEO compensation is AU$536k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$489k. We took a group of companies with market capitalizations below AU$286m, and calculated the median CEO total compensation to be AU$357k.
It would therefore appear that Shine Corporate Ltd pays Simon Morrison more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Shine, below.
Shine Corporate Ltd has increased its earnings per share (EPS) by an average of 3.0% a year, over the last three years (using a line of best fit). Its revenue is down -1.1% over last year.
I generally like to see a little revenue growth, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
Since shareholders would have lost about 26% over three years, some Shine Corporate Ltd shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Shine Corporate Ltd, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Shine (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out thisfreelist of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Allison Williams Splits From Husband After 4 Years of Marriage
Allison Williams and Ricky Van Veen have split after four years of marriage. "With mutual love and respect, we have made the decision to separate as a couple. We are grateful for the friendship that we have and will continue to have," they said in a joint statement to ET on Thursday. The pair -- who were last seen together at the Oscars in March 2018 -- met at a Bachelor viewing party in 2011 and married in September 2015 . Williams and Van Veen, co-founder of CollegeHumor and Vimeo, tied the knot in a ceremony officiated by Tom Hanks at Brush Creek Ranch in Saratoga, Wyoming. The actress' father, Brian Williams, walked her down the aisle, with stars like Lena Dunham, John Mayer, Zosia Mamet, Jemima Kirke, Seth Meyers and Katy Perry in attendance. The couple had been private about their romance in the public eye. Van Veen and Williams' split comes weeks after news broke that Bradley Cooper and Irina Shayk had gone their separate ways after four years together. See more in the video below. RELATED CONTENT: Why Allison Williams Says She's the Opposite of a Scream Queen (Exclusive) Allison Williams Talks Being Compared to Kate Middleton and Having a Similar Wedding Gown Allison Williams Says People Are Scared of Her After 'Get Out': 'Don't Let Her Touch a Teacup' (Exclusive) Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear |
How student loans can fatten or shrink your tax refund
Most of us know we need to pay attention to things like our mortgages when doing our taxes. But who would imagine that student loan debt could possibly help you get a bigger tax refund?
Here's a look at how you might be able to write off some interest paid on student loans, as well as other tax tips relating to college debt. Big clue: Don't default if you want a fat tax refund.
Despite some rumors to the contrary, many people can lower their tax bill by tapping into a deduction on federal income tax returns for interest paid in 2018 on federal and private student loans.
"It's a nice benefit to have," said Cari Weston, director of tax practice and ethics for the American Institute of CPAs.
But she warns that it's a tax break that only applies to a limited group of people, often younger consumers who aren't making much money. Married couples – who both are paying off student loans – face some unexpected limits, too.
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The good news is that it's possible to claim this deduction even if you take the standard deduction.
"It's not an itemized deduction," said Jackie Perlman, principal tax research analyst at H&R Block’s Tax Institute.
Under the Tax Cuts and Jobs Act of 2017, more people will take the standard deduction instead of itemizing. Even if that's the case, you could still be able to use the deduction for student loan interest if you qualify, Perlman said.
It's an above-the-line tax break so it would reduce your taxable income by up to $2,500.
But again, it's one tax break that you cannot always bank on.
Weston said clients may hear about the deduction but not realize all the hurdles.
"People get very confused," Weston said.
As a CPA, she's had to break the bad news and tell clients things such as: "But in your case, you make too much money, and you're not going to get it."
If you're single, for example, the dollar amount of the student loan deduction starts being reduced significantly once your modified adjust gross income goes above $65,000. If single, you can't claim it at all if your modified adjusted gross income is $80,000 or more.
For 2018, the phase out limit for married couples is between $135,000 and $165,000 if you file a joint return. You can’t claim the deduction once you hit $165,000 or more if you file a joint return.
You're not eligible for this deduction if married filing separately. Some married student loan borrowers do file separately to be able to have lower monthly payments under income-driven repayment plans. As a result, though, they could lose out on the deduction for interest payments on student loans.
You cannot claim this deduction if you or your spouse, if filing jointly, can be claimed as dependents on someone else's return.
In the case of married couples, the deduction is per return, not per person.
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If two borrowers get married, their deduction will drop from up to $2,500 each on single returns to one combined $2,500 deduction on the joint return, warned Mark Kantrowitz, publisher and vice president of research forSavingforcollege.com.
So if you're newly married, don't expect that you both can take this tax break.
"I call this the classic marriage penalty," Weston said.
Read the rules carefully. See Chapter 4 ofPublication 970:Tax Benefits for Higher Education for information on the student loan deduction. Go towww.irs.gov.
There is a worksheet for filling out the student loan interest deduction, which you'd claim onSchedule 1for the 1040, Line 33.
Make sure to see Line 7 Adjusted Gross Income to claim the deduction on page 2 of the newshorter 1040 form.
It could be confusing to some. You don't see the student loan deduction spelled out on the 1040 form even though you'd include it on Line 7 under adjusted gross income.
Some employers, such as Dearborn, Michigan-based Carhartt, now are offering job perks that include paying some money toward student loan debt. Currently, though, payments under employer loan repayment assistance plans are taxable to the employee.
"It's not a tax-free perk from your employer," Perlman said.
Scott Thompson, CEO of Tuition.io, a California-based platform for employee student loan contributions, said some employers will "gross up" and offer more money to cover the extra taxes. But not all employers do that, so employees need to take time to understand the benefits that are spelled out.
In the future, you might get a better break.
Kantrowitz noted that there is bipartisan legislation in Congress – dubbed the Employer Participation in Repayment Act – that would exclude up to $5,250 in such benefits from taxes a year.
The good news is that student loan debt that is discharged after Dec. 31, 2017, because of the student's death or disability is no longer taxable. This tax break expires after 2025, and the disability must be a total and permanent disability, according to Mark Luscombe, principal analyst for Tax & Accounting at Wolters Kluwer in Riverwoods, Illinois.
The change was part of the Tax Cuts and Jobs Act of 2017, which took effect in 2018. The new rule isn't retroactive. It applies to federal or private education loans.
Kantrowitz said his research and reading of the statute is that this new change applies to the discharging of debt on a Parent PLUS loan when the student dies. Some tax experts, though, say more guidance may be needed from the IRS on some specific issues.
But other types of student loan forgiveness may be taxable currently. You'd receive a 1099-C if the cancelled debt is $600 or more.
But it's important toresearch the exceptionsto what's taxable and what isn't, Kantrowitz said.
Student loan forgiveness, for example, that's associated with working in certain occupations for a set period of time is tax free. That includes Teacher Loan Forgiveness and Public Service Loan Forgiveness.
Many times, borrowers need to work in certain under-served areas to qualify for such forgiveness, Weston noted.
It's important to understand all the specific rules so you'd qualify for loan forgiveness and be able to avoid being taxed on any benefits.
"Sometimes, people are blindsided by that," Perlman said.
To exclude canceled student loan debt from your income, your loan must have been made by a qualifying lender to attend an eligible financial institution.
So, for example, such exclusions relating to this tax break wouldn't apply to any cancelled credit card debt, Perlman said.
Sometimes, students can become overwhelmed with credit card debt too, especially if they pay for tuition with a credit card and then let that interest build and build.
Tax filers are often shocked when they expect a tax refund of $5,000 or more and then discover they're not getting all that money. Some or all may be used to pay back a federal student loan that was in default.
If you're missing money out of your tax refund, it's possible it was collected through theTreasury Offset Programto collect delinquent debts owed to federal agencies and state governments.
"Most people are going to have ample notice before a refund is garnished," said Weston, at the American Institute of CPAs.
"Just simply not paying your loan for a month or two is not going to send them into that kind of aggressive action," she said.
Student loan default takes place when you don't make the required payment on your student loan for 270 days – or nine months – or more. Default is more serious than delinquency .
Some students, though, do lose track of loans when the debt is sold to another lender and unknowingly they don't make payments. After not making those payments, some report being shocked to have their tax refund garnished.
Defaulting, of course, also can hurt your credit score and drive up the cost of taking out a mortgage or a car loan.
ContactSusan Tomporat313-222-8876orstompor@freepress.com.Follow her on Twitter@tompor.Read more onbusinessand sign up for ourbusiness newsletter.
This article originally appeared on Detroit Free Press:How student loans can fatten or shrink your tax refund |
Ikea's Recall Efforts Fail to Protect Kids, Parents Say
Consumer Reports has no financial relationship with advertisers on this site. Consumer Reports has no financial relationship with advertisers on this site. “I’m here today to hold Ikea accountable,” said Crystal Ellis while standing in front of an Ikea store in New York City today. Ellis—whose 2-year-old son Camden died in June 2014 after an Ikea Malm dresser tipped over on him—spoke today along with other consumer safety advocates to mark the third anniversary of the 2016 Ikea dresser recall in which 17.3 million dressers were pulled from the market. At the time of the recall three years ago, Ikea dressers, including the Malm, had been tied to seven child deaths and 17 injuries. The numbers have now increased to 10 child fatalities and at least 144 tip-over injuries. When Ikea initially announced the recall, the company said it was because the dressers didn’t meet the industry’s voluntary stability standard and were a “serious tip-over hazard.” But the advocates—from Parents Against Tip Overs, the Consumer Federation of America, Kids in Danger, Public Citizen, and Consumer Reports—said that since then Ikea has not done enough to alert parents about the dangers of the products or made it easy enough for consumers to return dressers or obtain anchor kits to secure them to walls. Though a recall “sounds like a victory,” the real work involves increasing consumer awareness and getting recalled products out of homes, Ellis said. At least one child, Jozef Dudek of California, was killed by one of the recalled dressers over a year after the recall, according to a lawsuit filed by the law firm Feldman Shepherd against Ikea. His parents say they had never heard about the recall, Ellis said. “The fact that children have died from recalled dressers is unacceptable,” said Rachel Weintraub, legislative director and general counsel for the Consumer Federation of America. “Ikea and the Consumer Product Safety Commission must take more action. We know they are capable of doing vastly more.” Story continues In addition, Ikea continues to sell at least one other dangerous dresser , the Hemnes eight-drawer dresser, which has been linked to at least one death and other tip-over incidents. Meghan DeLong, whose 2-year-old son Conner died in May 2017 after a Hemnes eight-drawer dresser fell on him, said today that even though the dresser met the industry’s current voluntary standard, the product was not stable enough because it didn’t stay upright under real-world use. “That dresser has not been recalled to date and is still being sold to families nationwide,” said DeLong. Another parent recently wrote to CR and said that the Hemnes eight-drawer dresser had tipped over in his home about two and a half years ago, and narrowly missed his then 3-year-old son. “I never thought much about the dangers of furniture tip-over until I saw it first hand with my youngest son,” said H. Paige, from San Diego, who prefers not to use his full name. “If the bed didn’t break the fall of the dresser, he could have been smashed from the weight of it.” After the incident, Paige said he tried to obtain a furniture anchor kit from Ikea. But a store salesperson told him all the kits were out of stock and instead gave him a phone number to call. “I called and called, and left voice mail after voice mail," Paige said. "I finally got a couple of calls back promising a tip-over kit. Nothing ever came.” An Ikea spokesperson told CR, “We continue to communicate the recall prominently on our website and through in-store signage. Consumers can return the products for a refund or exchange, we will pick up recalled dressers for a refund or exchange, or consumers can request a tip-over restraint kit to replace the one that was sold with the dresser originally.” The Ikea spokesperson also said that of the 17.3 million affected dressers, the company has issued 400,000 refunds for returned dressers since the recall announcement in June 2016. The company also sent out 1.02 million wall anchors since the " repair program " Ikea initiated in July 2015 before the company eventually issued the dresser recall. Though Ikea offered the anchors as part of its recall solution, CR does not believe that distributing anchors meant to attach an unstable dresser to a wall is an effective remedy because there is no way to ensure that consumers will take the extra step to install the anchors. Based on CR's concerns about anchors as a remedy, and accounting for the number of dressers actually returned to Ikea, the recall rate would be about 2 percent. That is below the industry average, according to data from the CPSC. Further, the industry average is only about 8 percent, illustrating the already widespread difficulty of getting recalled products out of people’s homes once they have been sold. The Ikea spokesperson added that some of the recalled dressers may no longer be in use, and some consumers may have attached the dressers to the wall on their own. Those people “would not need to participate in the recall,” the spokesperson said, “though we would certainly honor their request if they still chose to return the product.” Consumer product experts note that dressers often remain in homes for years or are sold second-hand or passed on to others. And research shows that wall anchors are an imperfect solution: 73 percent of Americans have never anchored furniture in their homes, according to a nationally representative 2018 CR survey of 1,502 U.S. adults. We must do better, said Nancy Cowles, executive director of Kids In Danger. “We call on both the company and CPSC to up their game. Ikea should use the same multifaceted efforts they use to sell products to retrieve their unstable dressers from homes.” Statistics suggest that furniture tip-overs remain a serious hazard in American homes. Approximately one child dies every two weeks and one person is injured every 15 minutes when a piece of furniture or a television falls over onto them, according to the CPSC . To address the problem, advocates are urging Congress to pass the Stop Tip-overs of Unstable, Risky Dressers on Youth (STURDY) act. The legislation would require the CPSC to create a mandatory rule for dressers that is stronger than the industry’s current voluntary standard. The bill was introduced by Rep. Jan Schakowsky (D-Ill.) in the House in April and Senators Bob Casey (D-Penn.), Amy Klobuchar (D-Minn.), and Richard Blumenthal (D-Conn.) earlier this month. “ Our testing has shown that right now, consumers have no easy way to simply look at a dresser and tell whether it is likely to tip over. Heavy and light dressers can tip over, as can dressers at all price points,” said Meagen Bohne, associate director of campaigns at CR. “Buying a dresser shouldn’t be a possible life and death decision. All dressers should meet a strong mandatory standard that requires them to stay upright when put through basic testing.” Keisha Bowles, whose 2-year-old daughter Sydney Chance died in 2012 when a dresser and TV tipped over on top of her, said today that “industry should not be in charge of deciding what’s safe” and that “manufacturers know how to design the hazard out of the products right now. This law forces them to put safety over profits to keep children safe.” Editor's Note: This article, originally published on June 27, 2019, was updated to reflect that Ikea has distributed 1.02 million wall anchors since it launched its repair program in 2015, not since the recall announcement in June 2016, as Ikea originally told Consumer Reports. The recall effectiveness rate has also been modified. More from Consumer Reports: Top pick tires for 2016 Best used cars for $25,000 and less 7 best mattresses for couples Consumer Reports is an independent, nonprofit organization that works side by side with consumers to create a fairer, safer, and healthier world. CR does not endorse products or services, and does not accept advertising. Copyright © 2019, Consumer Reports, Inc. |
How Much Was Jony Ive Worth to Apple? Market Says $9 Billion
(Bloomberg) -- Ever wondered how much Jony Ive and his design prowess was worth to Apple Inc.? The stock market rendered its verdict on Thursday: at least $9 billion.
That’s the market value that Apple lost when its shares sank more than 1% in extended trading after reporting the chief design officer was leaving to start his own firm that will count Apple among its customers.
Ive began leading Apple’s design team in 1996 and in 2012 was put in charge of software design as well. He has been “one of the most important figures at Apple” during his tenure, according to Wedbush analyst Daniel Ives.
“From his iMac vision to the stunning iPhone launch and transformation his fingerprints are deeply woven within Apple’s core DNA,” he wrote in a research note. “Ive is leaving a hole in the company and is clearly irreplaceable.”
(Adds analyst comment beginning in third paragraph.)
To contact the reporter on this story: Jeran Wittenstein in San Francisco at jwittenstei1@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Morwenna Coniam, Joanna Ossinger
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
What Kind Of Shareholder Owns Most YPB Group Limited (ASX:YPB) Stock?
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Every investor in YPB Group Limited (ASX:YPB) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of 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.
YPB Group is not a large company by global standards. It has a market capitalization of AU$4.6m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about YPB.
View our latest analysis for YPB Group
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 5.5% of YPB Group. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see YPB Group's historic earnings and revenue, below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in YPB Group. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of YPB Group Limited. Insiders have a AU$1.3m stake in this AU$4.6m business. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
The general public -- mostly retail investors -- own 52% of YPB Group . This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
It seems that Private Companies own 15%, of the YPB stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Which states have the highest and lowest property taxes?
How much you pay in property taxes often comes down to which side of a county, city or district line you’re on. And if you’re a homebuyer this spring, it’s another important factor to consider while you house hunt.
Property taxes largely fund public schools but also other local services like roads and police. A portion of your monthly mortgage payment goes to property taxes, so if you’re on a tight budget, a higher property tax bill could be onerous.
For instance, in Buffalo and Syracuse in New York, the property tax portion of the monthly bill can often be higher than the mortgage part because tax rates are so high there, says Lawrence Yun, the chief economist for the National Association of Realtors.
“Property tax is a critical piece of information in the home purchase decision and something a buyer should ask about before making the purchase,” Yun says.
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Property taxes are hyperlocal. Some states levy a property tax, but for the most part, these taxes are imposed on the county, city or district levels. That means a house down the street from yours could have a higher or lower tax burden than yours.
In an extreme historical example, two nearly identical houses in the same subdivision that spanned the town line between Concord and Bow, New Hampshire, had vastly different property tax burdens, according to Joan Youngman, chair of the department of valuation and taxation at the Lincoln Institute of Land Policy, a think tank on the taxation and use of land. Concord’s property tax rate was about twice as much as Bow’s, even though both shared the same high school.
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Why was that? Because Bow’s biggest property taxpayer was a power plant, rather than its few residents. In Concord, the homeowners bore a bigger share of the tax burden. How much owners of commercial, industrial and utility properties pay in taxes can affect your rate.
Home values are another reason why one city has a higher property tax than another. Those areas with higher housing values can charge a lower tax rate, but still raise a lot in revenue.
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Take California and Ohio. In Ohio, the tax property rate is the 12th highest in the country at 1.56%. A median house in Ohio – valued at $129,900 – brings in $2,032 in property taxes. But in California, the tax rate is much lower at 0.81% – the 34th lowest in the U.S. – but the median home there (valued at $385,500) raises $3,104 in property taxes.
Property taxes aren’t the only tax burdens, either, that residents should consider, Youngman says. For instance, Bridgeport, Connecticut, has the highest property tax rate but no local sales or income taxes. Birmingham, Alabama, by contrast, has the 11th lowest property tax, but “a host other taxes,” she said.
“If you put those together, Birmingham's tax burden is actually higher than Bridgeport’s,” she said.
Overall, the effective property tax rate for homeowners is 1.2% in the U.S. On a median home of $178,600, that’s an annual tax bill of $2,149. Eighteen states have effective rates that are the same or higher than the U.S. rate, while 32 states and the District of Columbia have lower rates.
Using data from the Lincoln Institute of Land Policy, USA TODAY ranked property taxes among states by the effective tax rate for homeowners, rather than the median tax paid, which is affected by overall home values. If your state doesn’t appear in the lists below, visit theLincoln Institute’s online toolto find out where it stands.
Tax rate:2.35%
Median home value:$315,900
Median tax paid:$7,410
Tax rate:2.3%
Median home value:$173,800
Median tax paid:$3,995
Tax rate:2.15%
Median home value:$237,300
Median tax paid:$5,100
Tax rate:1.97%
Median home value:$270,500
Median tax paid:$5,327
Tax rate:1.96%
Median home value:$165,800
Median tax paid:$3,248
Tax rate:1.9%
Median home value:$136,000
Median tax paid:$2,578
Tax rate:1.85%
Median home value:$133,200
Median tax paid:$2,467
Tax rate:1.78%
Median home value:$122,400
Median tax paid:$2,174
Tax rate:1.74%
Median home value:$217,500
Median tax paid:$3,795
Tax rate:1.63%
Median home value:$238,000
Median tax paid:$3,884
Tax rate:0.27%
Median home value:$515,300
Median tax paid:$1,406
Tax rate:0.43%
Median home value:$125,500
Median tax paid:$543
Tax rate:0.49%
Median home value:$144,100
Median tax paid:$707
Tax rate:0.54%
Median home value:$231,500
Median tax paid:$1,243
Tax rate:0.56%
Median home value:$475,800
Median tax paid:$2,665
Tax rate:0.57%
Median home value:$139,900
Median tax paid:$798
Tax rate:0.58%
Median home value:$103,800
Median tax paid:$607
Tax rate: 0.6%
Median home value:$247,800
Median tax paid:$1,489
Tax rate:0.61%
Median home value:$194,800
Median tax paid:$1,196
Tax rate:0.62%
Median home value:$111,400
Median tax paid:$693
This article originally appeared on USA TODAY:Which states have the highest and lowest property taxes? |
Investors Beware: The Office is Part of a Larger Netflix Binge-Watching Problem
Netflix NFLX shares have jumped 38% in 2019, but have cooled off during the past three months. And now it appears the streaming TV giant could have a binge-watching problem.
NFLX’s Office Problem
NBC said Wednesday that it landed the domestic streaming rights forThe Office. Starting in 2021, the hit sitcom will be available exclusively on NBC’s CMCSA yet-to-be-launched streaming service, under a five-year deal. The loss ofThe Officetwo years down the line might not spell major trouble for Netflix but is indicative of a larger problem the streaming firm must correct.
Netflix and CEO Reed Hastings have for the last serval years spent billions of dollars on original content and will continue to do so as more companies start their own streaming services and pull their content. Many NFLX shows and movies have been successful, but its offerings don’t account for enough total viewing hours at the moment.
The Officeis currently Netflix’s No. 1 show, according to multiple reports. Worse yet, only two of the 10 shows that U.S. subscribers spent the most time watching last year were Netflix originals, according to Nielsen data. Overall, library programming, which includes TV reruns licensed from other studios, accounted for 72% of total viewing minutes. With everyone from NBCUniversal to AT&T T and Disney DIS set to roll out their own streaming services, Netflix could have a serious problem on its hands.
Netflix needs people to feel they get their money’s worth on monthly plans that cost as much as $15.99. This could become harder if NFLX were to lose more of its binge-worthy content likeThe OfficeandParks and Recreation. HBO has been able to thrive for years through a smaller set of prestige shows, documentaries and mini-series, along with some outsourced movies. This model is, of course, not easy to replicate.
Plus, Disney+ will feature both new and old movies and TV shows from arguably the biggest brands in entertainment, Disney, Pixar, Star Wars, Marvel, and National Geographic, all for $6.99 a month. Disney also controls Hulu and its ESPN+ streaming sports offering has performed well. Meanwhile, Apple is ready to debut its streaming service with A-list Hollywood stars both in front of and behind the camera. And let’s not forget Amazon Prime AMZN as it could stand out due to its ability to offer a combination of movies, TV shows, and live sports, along with Disney.
Outlook
On the positive side, Netflix closed the first quarter with 148.86 million paid streaming memberships. This staggering figure marked 25% growth from the year-ago period for the fifth straight quarter and helped Netflix remain the largest U.S. streaming company. Amazon claims roughly 100 million Prime subscribers, with Hulu at 28 million.
Looking ahead, Netflix expects to grow its global paid membership base by roughly 24% in Q2 to close at 153.86 million. Meanwhile, our current Zacks Consensus Estimate calls for the company’s full-year fiscal 2019 revenue to jump roughly 28% to reach $20.18 billion. This, however, would mark a slowdown from 2018’s 35% top-line expansion. Peeking further ahead, Netflix’s fiscal 2020 revenue is projected to jump 24.3% above our current-year estimate to $25.1 billion.
At the bottom end of the income statement, the firm’s adjusted fiscal 2019 earnings are projected to pop 24.6% to $3.34 per share. NFLX’s fiscal 2020 adjusted EPS figure is then expected to soar 75.3% higher than our 2019 projection. It is also worth noting that Netflix has crushed our quarterly earnings estimates by an average of 24% over the trailing four periods.
Bottom Line
Investors need to pay close attention to Netflix’s user growth both domestically and internationally, as these figures are likely to drive the stock in the near-term—especially with NFLX set to see its revenue growth slow. On top of that, the company’s ability to create its ownThe Office-style shows, which keep users hooked for hours, seems paramount.
Netflix is Zack Rank #3 (Hold) at the moment that still holds some sky-high valuation metrics. The company is trading at 108X forward earnings, against its industry’s 14.4X average. In the end, the streaming firm is likely to remain a strong company for years to come even though it faces real challenges and competition.
Shares of NFLX closed regular trading Thursday up 2.16% to 370.02 per share, down roughly 12% off its 52-week intraday highs of $419.77 per share. Netflix stock has fallen roughly 6% over the last 12 months, which lags the S&P 500’s 6% climb.
NFLX is currently scheduled to report its Q2 fiscal 2019 financial results on Wednesday, July 17.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Walt Disney Company (DIS) : Free Stock Analysis ReportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportNetflix, Inc. (NFLX) : Free Stock Analysis ReportAT&T Inc. (T) : Free Stock Analysis ReportComcast Corporation (CMCSA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Here’s why Oriental Watch Holdings Limited’s (HKG:398) Returns On Capital Matters So Much
Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card!
Today we are going to look at Oriental Watch Holdings Limited (HKG:398) to see whether it might be an attractive investment prospect. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business.
First of all, we'll work out how to calculate ROCE. Then we'll compare its ROCE to similar companies. Then we'll determine how its current liabilities are affecting its ROCE.
ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Generally speaking a higher ROCE is better. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'.
Analysts use this formula to calculate return on capital employed:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Oriental Watch Holdings:
0.068 = HK$149m ÷ (HK$2.4b - HK$239m) (Based on the trailing twelve months to September 2018.)
So,Oriental Watch Holdings has an ROCE of 6.8%.
Check out our latest analysis for Oriental Watch Holdings
ROCE can be useful when making comparisons, such as between similar companies. We can see Oriental Watch Holdings's ROCE is meaningfully below the Specialty Retail industry average of 13%. This performance could be negative if sustained, as it suggests the business may underperform its industry. Setting aside the industry comparison for now, Oriental Watch Holdings's ROCE is mediocre in absolute terms, considering the risk of investing in stocks versus the safety of a bank account. It is possible that there are more rewarding investments out there.
Oriental Watch Holdings has an ROCE of 6.8%, but it didn't have an ROCE 3 years ago, since it was unprofitable. That implies the business has been improving. You can see in the image below how Oriental Watch Holdings's ROCE compares to its industry. Click to see more on past growth.
It is important to remember that ROCE shows past performance, and is not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is, after all, simply a snap shot of a single year. If Oriental Watch Holdings is cyclical, it could make sense to check out thisfreegraph of past earnings, revenue and cash flow.
Current liabilities are short term bills and invoices that need to be paid in 12 months or less. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counteract this, we check if a company has high current liabilities, relative to its total assets.
Oriental Watch Holdings has total liabilities of HK$239m and total assets of HK$2.4b. Therefore its current liabilities are equivalent to approximately 9.8% of its total assets. Oriental Watch Holdings has a low level of current liabilities, which have a minimal impact on its uninspiring ROCE.
Based on this information, Oriental Watch Holdings appears to be a mediocre business. Of course,you might also be able to find a better stock than Oriental Watch Holdings. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
I will like Oriental Watch Holdings better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor 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. |
Man fired for sharing anti-Semitic facebook meme
A Pennsylvania restaurant employee got fired for sharing an anti-Semitic Facebook meme. (Photo: Getty Images) A Japanese restaurant fired a manager for sharing a Facebook meme about the Holocaust, an “inexcusable” offense. Sandra Berger, a manager at Yokoso Japanese Steakhouse in Homestead, Penn., told the Tribune-Review that former employee Stephen Guyer had posted a meme depicting the inside of an oven with the caption, “Jewish bunk beds for sale.” Owner Jeff Kim addressed Guyer’s Monday termination in a Facebook post. “I would like to sincerely apologize for the action of one of my employees. It is inexcusable and nothing can make up for it,” he wrote. “Please know that his comments and views do not reflect the values of the restaurant and its employees. His employment has been terminated. No forms of discrimination or prejudice are tolerated at Yokoso. Yokoso is a family establishment, and everyone from all walks of life are welcome here.” Kim wrote, “Finally, thank you for alerting us and holding our employee accountable, and continuing the fight against anti-semitism. I recognize this cannot have been easy and am sorry for any pain that his actions or words have caused.” Guyer did not respond to a message from Yahoo Lifestyle. His actions, he told the Tribune-Review , were a “huge mistake” and accidental. “I can’t read real well and my eyes are very bad. I thought (the meme) was something about a Danish bunk bed,” Guyer said, according to the site. “My life has been ruined now. I would never disrespect Jewish people intentionally. I love all people no matter their race, color or religion. I made a mistake, and I’m very sorry for the outcome.” Read more from Yahoo Lifestyle: Restaurant manager fired after video of confrontation with employee goes viral Wendy's employee fired after taking a bubble bath in restaurant sink: 'It is obviously totally unacceptable' Chinese restaurant apologizes for writing the n-word on a customer's takeout order Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day. |
Faces for cookware: data collection industry flourishes as China pursues AI ambitions
By Cate Cadell
PINGDINGSHAN, China (Reuters) - In a village in central China's Henan province, amid barking dogs and wandering chickens, villagers gather along a dirt road to trade images of their faces for kettles, pots and tea cups.
At the front of the line, a woman stands in front of a camera zip-tied to a tripod. She holds a photograph of her head with the eyes and the nose cut out in front of her face and slowly rotates side to side.
Villagers waiting their turn take a numbered ticket. Some of them say it's the third or fourth time they've come to do this sort of work.
The project, run out of a sleepy courtyard village house adorned with posters of former China leader Mao Zedong, is collecting material that could train AI software to distinguish between real facial features and still images.
"The largest projects have tens of thousands of people, all of whom live in this area." said Liu Yangfeng, CEO at Qianji Data Co Ltd, which collects and labels data for several of China's largest tech firms and is based in the nearby city of Pingdingshan.
"We are creating more data sets to serve more AI algorithm companies, so they can serve the development of artificial intelligence in China," said Liu, declining to disclose his clients.
The boom in demand for data to train AI algorithms is feeding a new global industry that gathers information such as photos and videos, which are then labeled to tell the machines what they are seeing.
Companies involved in data labeling or data annotation as it is also called include crowdsourcing platforms such as Amazon.com's <AMZN.O> Mechanical Turk which offer users small amounts of money in return for simple tasks, outsourcing firms such as India's Wipro Ltd <WIPR.NS> as well as professional labellers like Qianji.
Cognilytica, a U.S. research firm specializing in AI, estimates the global market for machine-learning related data annotation grew 66% to $500 million in 2018 and is set to more than double by 2023. Some industry insiders say, however, that much of the work done is not disclosed, making accurate estimates difficult.
WEAK PRIVACY LAWS, CHEAP LABOR
China has emerged as a key hub for data collection and labeling thanks to insatiable demand from a burgeoning artificial intelligence sector backed by the ruling Communist Party, which sees AI as an engine of economic growth and a tool for social control.
A plethora of firms have invested heavily in an area of AI known as machine learning, which is at the core of facial recognition technology and other systems based on finding patterns in data.
These include tech giants Alibaba Group Holding Ltd <BABA.N>, Tencent Holding Ltd <0700.HK>, Baidu Inc <BIDU.O> as well as younger companies such as AI specialist SenseTime Group Ltd and speech recognition firm Iflytek Co Ltd <002230.SZ>.
The result has been a proliferation of AI products and services in China, from facial recognition-based payment systems to automated surveillance and even AI-animated state media news anchors. Chinese consumers mostly see these technologies as novel and futuristic, despite concerns raised by some over more invasive applications.
Weak data privacy laws and cheap labor have also been a competitive advantage for China as it races to become a global leader in AI. The Henan villagers were happy to trade several sessions in front of a camera for a tea cup, or several hours for a stove-top pot.
OVERSEAS CUSTOMERS
Beijing-based BasicFinder, a leading data labeling firm with locations across Hebei, Shandong and Shanxi provinces, boasts a robust mix of domestic and overseas clients.
At a recent visit to its Beijing offices, some staff were labeling images of sleepy people that will be used by an autonomous driving project to identify drivers who might be falling asleep at the wheel.
Others were labeling British documents from the 1800s for a Western online ancestry service, marking fields for dates, names and genders on birth and death certificates.
According to BasicFinder Chief Executive Du Lin, hiring trained labellers in China is cheaper than using Western crowdsourcing marketplaces.
A Princeton University project related to autonomous driving initially put a task on Amazon's Mechanical Turk but as the task became more complicated, people began making mistakes and BasicFinder was brought in to help correct the results, said Du.
In that project, one trained BasicFinder labeler was able to do the work of three crowdsourced labellers, he added.
"Gradually they saw they were paying less for labeling from us, so they hired us to label all the works from the very beginning," said Du.
Princeton declined to comment.
For labeling employees, the reasons for joining China's data industry are straightforward. The work, though sometimes tedious, is an upgrade on other jobs available to young workers who want to return home to small Chinese cities and villages.
Labellers at Qianji make roughly 100 yuan ($14.50) a day marking data points on photographs of people, surveillance footage and street images.
The work is usually simple, according to the employees, though some overseas content poses a challenge.
"One time we thought we were classifying Europe-style cooker machines that have a washer attached," said Jia Yahui, a labeler at Qianji. "Later we were told it's actually two separate things, a stove and a dishwasher."
The labeling work brings some of the employment benefits of the tech sector to rural areas, but those benefits may prove short-lived if AI improves enough to perform many of the tasks labellers do.
"We think this industry will still exist in three to five years. It may not be a long-term career - we can only think of the five-year plan for now," said Qianji CEO Liu.
(Reporting by Cate Cadell; Editing by Jonathan Weber and Edwina Gibbs) |
With 100 Million Subscribers in China, iQiyi Wants to Take Its Show on the Road
iQiyi(NASDAQ: IQ), China's answer toNetflix(NASDAQ: NFLX), has achieved a notable milestone in its subscriber growth. The company's total subscriber base topped 100 million, adding more than three million in as many months, reinforcing its position as "China's leading online video streaming platform," founder and CEO Tim Yu Gong said in a written statement. The company says it's attracting more then just tech-savvy, suburban, and younger viewers, but it has focused on also providing viewing options for rural residents and the elderly, which has helped the company surpass this benchmark.
To end the first quarter, iQiyi reported 96.8 million subscribers, up 58% year over year. More than 98% of them were paying members -- the remainder were on a free trial. This put the company firmly in the lead in China's streaming video space. Now, iQiyi believes that there are opportunities to be harvested abroad.
Image source: Getty Images.
There are large pockets of Chinese citizens around the world, and iQiyi believes this target market represents a distinct opportunity. These expats, who are referred to as "overseas Chinese," number more than 60 million and can be found in more than 200 countries. Finding programming in their native language is likely to be difficult, even in this era of connectivity.
iQiyi's president of membership and overseas business, Yang Xianghua, revealed that the company is seeing increasing interest for Chinese-language shows and is planning to distribute more of its original programming in areas with the greatest demand, including North America, Singapore, South Korea, and Japan.
"Given more time, I think we can have a lot of opportunities in other markets globally," he said.
iQiyi has resisted the comparison to Netflix, saying the label misrepresents the company. "Our business model is quite different from Netflix," Gong said in an interview. "The most accurate way to describe us [is] 'onlineDisney'."
Unlike Netflix, which offers only streaming video subscriptions, iQiyi has an increasing number of verticals, including video games, literature, comics, and light novels, which are aimed at the young adult demographic and are typically illustrated with anime. The other more obvious distinction is the ad-supported tier from iQiyi that's free to users, which the company uses to attract new subscribers.
It's this diversity of verticals that gives the company broad appeal in its home market, and that reality was borne out in iQiyi's recent results. The company generated 43% of its first-quarter revenue from memberships, while another 43% came from online advertising -- the result of ads shown to viewers in its ad-supported tier. The remainder was from program licensing and iQiyi's ancillary businesses -- including content merchandising and online games -- based on its original shows.
iQiyi execs are the first to admit, however, that taking its show on the road has limitations. While Netflix can simply replicate its domestic streaming model and export it globally, the situation is much different for a Chinese company.
"There are cultural differences and language differences, so it is difficult for us to expand overseas," Gong said.
Because of these hurdles, iQiyi is working to maintain its leading position in China and to deepen its ties with domestic customers, while also working to expand to foreign locales.
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Danny Venaowns shares of iQiyi, Netflix, and Walt Disney and has the following options: long January 2021 $85 calls on Walt Disney. The Motley Fool owns shares of and recommends Netflix and Walt Disney. The Motley Fool recommends iQiyi. The Motley Fool has adisclosure policy. |
tZERO launches digital wallet mobile app for iOS
Overstock's tZERO has announced the launch of adigital wallet and exchange services app. The “tZERO Crypto App” offers digital asset custody as well as a cryptocurrency market to buy and sell cryptocurrencies. Currently the app supports bitcoin and Ethereum which it describes as “cryptocurrencies that have been vetted for longevity."
The app uses biometrics as an additional security measure. It has also implemented a private key recovery system so that users can restore their funds in case of key or mobile phone loss.
“We are excited to introduce the ability to trade and store cryptocurrencies in your mobile wallet,” said Saum Noursalehi, tZERO CEO. “The tZERO Crypto App is a significant milestone in our plans to provide an intuitive experience for trading all digital assets.”
tZERO Crypto App is available on iOS devices, with an Android app to be released soon. |
Will a New Long-Term Stock Exchange Cure What Ails the Market?
Adam Smith, the Father of Capitalism, did not like publicly traded companies. The problem, as Smith saw it, is that managers of public companies deal with other people's money instead of their own, which results in "[n]egligence and profusion . . . in the management of the affairs of such a company." Almost 250 years later, that proposition still holds some truth. But Eric Ries, a Silicon Valley entrepreneur and the author ofThe Lean Startup, has a remedy for the "negligence and profusion": a new stock exchange, justapprovedby the SEC, called the Long-Term Stock Exchange, or LTSE.
Image Source: Getty Images
Ries, the creator of the LTSE, believes this new exchange (which will compete with the NYSE and NASDAQ) can fix myriad problems with the stock market by making investors and managers focus on companies' long-term interests. The LTSE, however, is more than just an exchange. Rieswantsthe LTSE to institute a corporate governance system for its listed companies that restructures the relationships among stakeholders. While laudable and intriguing, the LTSE also seems quixotic. Will revamping corporate governance really fix the problems in our capital markets?
Corporate governance refers to the rights among shareholders, managers, and directors to control a company. In the U.S., the prevailing governance theory holds that managers must maximize shareholder value -- i.e., they should primarily consider the interests of shareholders when making decisions. This theory has its origins in the 1970s when, after a conglomeration spree, many companies were comprised of multiple unrelated and unprofitable business divisions. People suspected that managers were not conglomerating to benefit the company, but rather to increase their compensation, which was based on the size of the company. Accordingly, in the late 1970s, companies made governance changes to make managers more accountable and focus them on shareholder interests. Executive compensation was tied to stock performance to align the interests of managers and investors. Hostile takeovers were cheered as a means to discipline managers.
But this focus on share price has had unintended consequences. Once the goal became maximizing stock prices, managers became fixated on meeting the quarterly earnings estimates of analysts who influence stock prices. This focus on numbers came at the expense of long term goals, like research and development: cutting investment in R&D is a quick way to juice profits. What's more, this obsession with short-term numbers resulted in "earnings management" -- the manipulation of financial statements to paint an artificially positive portrait of the company.
Maximizing share prices has also resulted in destructive executive compensation packages. As noted, shareholder value theory encourages companies to tie executive compensation to stock price. But companies have chosen to do this by giving managers stock options, which has ended up incentivizing ill-advised, consequence-free behavior. The never-ending quest to increase stock prices emboldens management to gamble with high-risk business decisions. If a risk pays off, managers can exercise their options and reap the rewards. If the risk fails, however, managers can decline the options and let shareholders eat the costs.
Additionally, prioritizing share price has had a deleterious effect on social welfare. When management is primarily concerned with interests of shareholders, they are less likely to worry about things like the environment and public health. Employee well-being will take a backseat, too. Indeed, downsizing is an easy way to boost quarterly profits. Moreover, the shareholder value paradigm has worsened the country's wealth gap. The wealthiest 10% of the population own 84% of stocks. The preoccupation with shareholder value means that managers are working tirelessly to make the rich richer.
Ries believes the LTSE can solve these governance problems through its listing rules. While the exchange's specific rules have yet to be formulated -- they will be developed with the SEC in the coming months -- Ries has articulated some guidelines.
To list on the LTSE, companies will have to pledge to certain long-term commitments. These pledges will not be contractual but will instead be representations that could serve as the basis for securities fraud if broken. As an example, a company may pledge not to tie executive pay to near-term stock performance. This will discourage risky short-term decisions to boost profits -- like cutting R&D -- that threaten the long-term viability of the company.
The LTSE will also prod shareholders to commit to long-term investments. Short-term investing and short selling, where investors effectively gamble with stock, has made start-ups wary of going public. Therecent IPOsforLyftandUber, for instance, were plagued by short sellers. While the LTSE will not ban short selling, it will require investors to disclose whether they plan on bailing or sticking around. Investors that stay will be rewarded with greater voting power. Knowing that investors are in it for growth and not a quick buck will, in turn, encourage companies to go public while deterring management decisions made to satisfy the avaricious whims of speculators.
Image Source: Getty Images
Ries also believes that the LTSE's governance rules will foster positive societal changes. For instance, if short selling is constrained, and more start-ups are encouraged to go public, then the investing masses will be able to share in the growth of more companies. The LTSE's listing rules will also require boards to have committees concentrating on long-term, multi-stakeholder strategy. Each board member would be assigned to a class of stakeholders -- e.g., employees, consumers, investors, the local community -- for whom they will advocate. This will ensure that boards attend to social and sustainability issues and not just audit and compliance.
The goal of the LTSE is undoubtedly admirable. But the concept also gives off a whiff of tech industry idealism, a Ted Talk come to life, another way for the very smart people in Silicon Valley to fix our problems. Can the LTSE change corporate behavior, or is it just bunch of venture capitalists talking to each other?
Corporate governance is a popular way to address economic and social problems because it is politically palatable. As Yale professor Mariana Pargendlernotes, governance reform is progressive because it recognizes that market forces alone are inadequate. But governance solutions also please conservatives because they are imposed by the corporation internally, not by the government. Moreover, corporate governance -- with its focus on shareholder democracy, independent boards, and checks and balances -- jibes with our political notions of how power is legitimized and exercised. Ries himself posits that corporate governance should resemble a constitutional republic. In other words, corporate governance reform goes down smooth. No one is going to have night terrors over a change in shareholder rights or board composition.
But maybe governance reforms do not provoke because they don't actually do much. For decades now, companies have tweaked their governance structures to add more independent directors, more shareholder democracy, and more social responsibility. Indeed, theDow Jones Sustainability Indexlists many companies that focus on long-term economic, social, and environmental sustainability. Yet the economy is bedeviled by short-termism, financial crises, environmental calamity, and wealth inequality. One could argue that the LTSE is choosing political expediency over effectiveness.
Still, although the LTSE may not be a sufficient remedy, it is unquestionably a necessary step to addressing systemic problems in the market. By codifying governance reforms in its listing rules, the LTSE is making an institutional attempt to formally impose these reforms on companies. Assuming companies choose to list on the exchange, it will be interesting to see whether the quasi-regulations of the LTSE's listing rules are enough to address the market failures that afflict the economy, or whether actual, government regulation is ultimately necessary.
Craig LaChancehas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Intercontinental Exchange. The Motley Fool recommends Nasdaq and Uber Technologies. The Motley Fool has adisclosure policy. |
Lego family, Blackstone take Merlin private in $7.5 billion deal
By Alistair Smout and Jacob Gronholt-Pedersen LONDON/COPENHAGEN (Reuters) - Lego's founding family and private equity firm Blackstone <BX.N> are taking Britain's Merlin <MERL.L> private again in an agreed deal valuing the Madame Tussauds and Legoland owner at $7.5 billion. The world's second-largest operator of visitor attractions after Disney <DIS.N> said on Friday the deal would give it greater scope for "significant, long-term investment" as the Danish interlocking plastic-brick maker expands in China. The buyers said that taking it off the stock market, one of the biggest European private equity deals in recent years, would allow the company to invest more in its assets and deliver on growth plans. "We believe that this group of investors has the unique collective resources necessary to equip Merlin... for their next phase of growth," said Soren Thorup Sorensen, chief executive of Kirkbi, the private investment company of Lego's Kirk Kristiansen family which already holds a 30% Merlin stake. Lego, known around the world for its colorful plastic bricks, plans to more than double the number of shops in China this year to 140 in its most rapid expansion in any market. Merlin has three Madame Tussauds in China and said in January it was in advanced talks with third parties about a number of sites for Legoland Parks in the country. Through efforts to combine its bricks with the digital world, Lego is trying to stabilize its business after sales dropped in 2017 for the first time in a decade. ATTRACTIVE VALUATION Blackstone bought Merlin from Hermes Private Equity for 102 million pounds in 2005 and then Merlin then bought control of Legoland. As part of the deal, Kirkbi took a stake in Merlin too. During 8 years of joint control of the company, Merlin more than tripled its number of attractions to 99 and multiplied its annual visitor numbers ninefold to 54 million, helped by large acquisitions including the Tussauds Group. Story continues At the $5.6 bln IPO in 2013, Blackstone's resulting equity stake was worth over $1 billion. Shares in Merlin, which also operates The London Eye, rose more than 50% after its London listing to a peak in June 2017. But just seven months later had fallen below the IPO price. They were hit by a rollercoaster accident at Alton Towers in 2015 and the 2017 London terror attacks. Merlin shares, which closed at 395 pence on Thursday, rose 14% on news of the recommended deal, which values them at 455 pence each, giving the company an enterprise value, including debt, of 5.91 billion pounds ($7.5 billion). Kirkbi will own 50% of Merlin after the agreed takeover, which is expected to be completed in the fourth quarter, with Blackstone and Canadian pension fund CPPIB owning the rest. The deal also represents the latest in a trend of private equity firms trying to buy back firms they have previously owned, such as in the case of Sweden's Ahlsell and Germany's Scout24. Merlin said that the deal was good for shareholders and urged them to accept it. "The Merlin independent directors believe this offer represents an opportunity for Merlin shareholders to realize value for their investment in cash at an attractive valuation," Merlin Chairman John Sunderland said in a statement. Activist investor ValueAct Capital last month called on Merlin to take itself private given the level of investment needed in the company. The consortium of buyers said on Friday it recognized "significant, long-term investment is required", a process that will be easier when Merlin is no longer listed. A source familiar with the matter said an initial, unsolicited offer from the consortium had valued the firm at 425 pence and talks about a takeover pre-dated the ValueAct letter. Last year, it had 67 million visitors at its 120 attractions across 25 countries. (Additional eporting by Bhargav Acharya in Bengaluru and Josephine Mason and Georgina Prodhan in London; Editing by Bill Rigby/Edmund Blair/ Alexander Smith/Jane Merriman) |
Red Hot Stocks Ahead of G20 Summit
With hopes of progress towards a US-China deal this weekend at the G20 summit, stocks mostly pushed into positive territory today. Boeing was a drag on the Dow while tech stocks continued to enjoy their move following Micron’s upbeat report. There was no real escalation in US-Iran tensions today which helped stocks along as well.
Check out Dave’s Daily Dive video above where I break down the market action today!!!
Each day I, Dave Bartosiak of Zacks.com (Twitter @bartosiastics) dive into the charts, pointing out key price action and levels for you to watch.
But it doesn’t stop there because the highlight of today’s video, which you can see for free by clicking above, is when I break down stock charts of a few key names today. In addition, I’ve got two Zacks Rank #1 (Strong Buy) stocks breaking out to new highs. The list of stocks I cover today include:
Boeing (BA) Zacks Rank #4 (Sell)
The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates in four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital.
Micron (MU) Zacks Rank #5 (Strong Sell)
Micron Technology, Inc. manufactures and sells memory and storage solutions worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. It offers memory and storage technologies, including DRAM, NAND, NOR Flash, and 3D XPoint memory under the Micron, Crucial, and Ballistix brands, as well as private labels.
Nike (NKE) Zacks Rank #3 (Hold)
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories: running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, lacrosse, skateboarding, tennis, volleyball, wrestling, walking, and outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel.
Arconic (ARNC) Zacks Rank #1 (Strong Buy)
Arconic Inc. engineers, manufactures, and sells lightweight metals worldwide. The company operate in three segments: Engineered Products and Solutions, Global Rolled Products, and Transportation and Construction Solutions. The Engineered Products and Solutions segment produces and sells fastening systems and seamless rolled rings; investment castings, including airfoils and forged jet engine components; and extruded, machined, and formed aircraft parts for aerospace (commercial and defense), industrial, commercial transportation, and power generation end markets.
Zymeworks (ZYME) Zacks Rank #1 (Strong Buy)
Zymeworks Inc., a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of bio-therapeutics for the treatment of cancer in Canada. The company's lead product candidates include ZW25, a bispecific antibody that is in Phase I clinical trial for the treatment of breast and gastric cancer; and ZW49, a bispecific antibody-drug conjugate that is in preclinical stage for treating breast and gastric cancers, and solid tumors.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportZymeworks Inc. (ZYME) : Free Stock Analysis ReportNIKE, Inc. (NKE) : Free Stock Analysis ReportMicron Technology, Inc. (MU) : Free Stock Analysis ReportThe Boeing Company (BA) : Free Stock Analysis ReportArconic Inc. (ARNC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is NagaCorp Ltd.'s (HKG:3918) Liquidity Good Enough?
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Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as NagaCorp Ltd. (HKG:3918), with a market capitalization of HK$39b, rarely draw their attention from the investing community. However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. This article will examine 3918’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto 3918 here.
See our latest analysis for NagaCorp
In the previous 12 months, 3918's rose by about US$291m accounting for long term debt. With this growth in debt, 3918 currently has US$435m remaining in cash and short-term investments , ready to be used for running the business. Additionally, 3918 has generated US$477m in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 164%, signalling that 3918’s debt is appropriately covered by operating cash.
Looking at 3918’s US$92m in current liabilities, it appears that the company has been able to meet these commitments with a current assets level of US$512m, leading to a 5.56x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Having said that, many consider a ratio above 3x to be high, although this is not necessarily a bad thing.
3918’s level of debt is appropriate relative to its total equity, at 19%. This range is considered safe as 3918 is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. We can check to see whether 3918 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 3918's, case, the ratio of 25.67x suggests that interest is comfortably covered, which means that lenders may be less hesitant to lend out more funding as 3918’s high interest coverage is seen as responsible and safe practice.
3918 has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level. Furthermore, the company will be able to pay all of its upcoming liabilities from its current short-term assets. This is only a rough assessment of financial health, and I'm sure 3918 has company-specific issues impacting its capital structure decisions. I recommend you continue to research NagaCorp to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for 3918’s future growth? Take a look at ourfree research report of analyst consensusfor 3918’s outlook.
2. Valuation: What is 3918 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 3918 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. |
All You Need To Know About NagaCorp Ltd.'s (HKG:3918) Financial Health
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Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like NagaCorp Ltd. (HKG:3918), with a market cap of HK$39b, are often out of the spotlight. However, generally ignored mid-caps have historically delivered better risk-adjusted returns than the two other categories of stocks. 3918’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto 3918 here.
Check out our latest analysis for NagaCorp
3918 has increased its debt level by about US$291m over the last 12 months – which includes long-term debt. With this ramp up in debt, 3918's cash and short-term investments stands at US$435m to keep the business going. Moreover, 3918 has produced cash from operations of US$477m over the same time period, resulting in an operating cash to total debt ratio of 164%, meaning that 3918’s operating cash is sufficient to cover its debt.
At the current liabilities level of US$92m, it appears that the company has been able to meet these commitments with a current assets level of US$512m, leading to a 5.56x current account ratio. The current ratio is the number you get when you divide current assets by current liabilities. Having said that, a ratio above 3x may be considered excessive by some investors, yet this is not usually a major negative for a company.
With a debt-to-equity ratio of 19%, 3918's debt level may be seen as prudent. This range is considered safe as 3918 is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. We can check to see whether 3918 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 3918's, case, the ratio of 25.67x suggests that interest is comfortably covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
3918’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow. In addition to this, the company will be able to pay all of its upcoming liabilities from its current short-term assets. This is only a rough assessment of financial health, and I'm sure 3918 has company-specific issues impacting its capital structure decisions. I suggest you continue to research NagaCorp to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for 3918’s future growth? Take a look at ourfree research report of analyst consensusfor 3918’s outlook.
2. Valuation: What is 3918 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 3918 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. |
Why Google Thinks Machine Learning Will Be a Game Changer for Travel
No industry is benefiting more from advances in machine learning than travel, Oliver Heckmann, a Google vice president for engineering, said Thursday at theSkift Tech Forum in San Francisco.
“Machine learning is probably changing our entire industry more than any other industry in the world, for one reason,” Heckmann said. “Language barriers are a huge obstacle for our customers traveling to other places and experiencing other cultures. The advances in machine learning directly feed into improvements in machine translation.”
It is an interesting argument. Google is making a major push into travel, allowingcustomers to book plane tickets, hotels and packages,and increasingly it is helping travelers access stuff they never might have found on their own. But if they can’t understand the language, whether ahead of time or once they get there, travelers might be less likely to visit.
Heckmann gave an example of the need for good translation from his own travels. He said he was staying in a vacation home in France during a rough storm when a power line fell near the house. “I had to make a phone call in French, which I don’t speak, to get someone there urgently, because I have little kids,” he said.
You can probably guess how he solved the problem.
“Google Translate, it was a seamless conversation,” he said. “It was absolutely mind-blowing and magical.”
Heckmann said this development, more than any other, will change how people travel. It’ll take awhile, he said, but eventually translations services will be so good most travelers will feel comfortable going anywhere.
“It will take many years before you have your perfect personal translator with you all the time but it is coming and it is going to change the way people travel,” he said.
Heckmann said machine learning is helping in other ways, too.
Google has a team working to analyze flight delays, so customers may learn their flight is late from the platform before they hear from the airline. Or they might discover it when they do a Google search for their flight number.
“We have a team that is feeding all kinds of information — for example, delays, and arrival times and status of arriving planes — into a big machine learning system that then takes that information and other information, like airport specific information, and outputs predictions of flights being delayed,” he said.
Subscribe to Skift newsletterscovering the business of travel, restaurants, and wellness. |
Australia's Domino's Pizza rejects workers' allegations over underpaid wages
(Reuters) - Australia's Domino's Pizza Enterprises Ltd <DMP.AX> said on Friday it did not mislead franchisees over payments to their employees and that it had not formally received court documents about a class action from workers over underpayment of wages.
It reiterated that it would defend itself against the class action, although it said the lead applicant had not made any claim against his franchisee employer and no franchisee employer was party to the action.
Instead, employees are seeking compensation against Domino's for alleged underpayment by franchisee employers.
The suit, filed by law firm Phi Finney McDonald in the Federal Court of Australia, alleges that Domino's misled franchisees by telling them not to pay delivery drivers and in-store workers according to minimum standards.
Fast food employees are entitled to a minimum weekly wage of A$813.60 ($565.86), according to requirements set by the Australian Fair Work Commission.
The Australia-listed Domino's, which is the largest franchisee of the Domino's Pizza <DPZ.N> brand outside the United States, operates in seven countries with over 2,000 stores.
The class action was filed on behalf of Australian employees who were employed as delivery drivers or in-store workers between June 24, 2013 and Jan. 24, 2018, Phi Finney McDonald said.
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Paul Tait and Stephen Coates) |
Native Instruments’ Massive X software synth is finally here
When Native Instruments first released the virtual synthMassivein 2007, it quickly took the music production world by storm. Producers loved the three oscillator wavetable synth plugin -- with its wave-scanning algorithms and 1,300 presets -- for its vast options. The soft synth went on to define EDM as we know it today, for better or worse. Now, the company hasreleasedthe widely anticipated successor to Massive, which it's deeming Massive X.
The new plug-in isn't meant to be an update to Massive -- instead it's a complete redesign of the original. There's no cross-compatibility between the two synths, meaning there's no way to open any of Massive's presets on the newer instrument. According to thedescriptionon the Native Instruments website, Massive X is "built for a new decade and designed to evolve." While Massive has 80 wavetables, Massive X has over 170 wavetables. The latter has two primary wavetable oscillators (the original has three), though you can add up to five by using the insert oscillators. A dedicated "Noise" section lets producers choose from more than 100 different sounds.
So far, initial impressions of Massive X onsocial mediaand byindustry mediahave been pretty positive. Users raved about the eclectic group of presets, including "Zaddy," "Wonky Comb" and "Wob You."Music Radarnotedthat the interface for Massive X "is a big departure from the original Massive and, arguably, much clearer." Users can download a free demo of Massive X that unlocks each section for 30 minutes at a time. The system requirements are Windows 7 and higher or macOS 10.12 and higher. The complete edition of Massive X is available for $199, though existing owners of Massive can upgrade for $149. If you already ownKomplete 12, you'll be able to download Massive X for free through Native Access. |
An Activist Investor Is Targeting Taubman Centers' "Jewel Box"
In a June letter to the shareholders ofTaubman Centers(NYSE: TCO), activist investor Land & Buildings threatened to replace Taubman's board of directors in 2020 if the company doesn't take action to create value for shareholders.
Taubman Centers owns a real estate portfolio of luxury malls in the U.S. and Asia, and Land & Buildings believes these holdings could be worth as much as double the current market value of the company. The activist has referred to Taubman's 11 most valuable real estate assets as its "Jewel Box" and wants the company to sell or spin them off to realize value for shareholders.
Should Taubman Centers heed to activist pressure or risk a proxy fight in 2020?
Image source: Getty Images.
Land & Buildings first took an activist position with Taubman Centers in 2016 when it released a lengthy presentation calling for changes in corporate governance at the company. Since 2016, the two parties have had the corporate equivalent of a shouting match, with the two sides sending out numerous press releases and slide presentations arguing their case for the future of the company.
In 2018, Land & Buildings founder Jonathan Litt was elected to Taubman Centers' board of directors after a failed attempt in 2017. Litt advocated for operational changes that he believed would increase the company's earnings, including more efficient use of empty mall retail space and adding more in-mall advertisements. Litt also called for the company to eliminate its dual-class share structure, which gives the Taubman family more voting rights for owning a separate class of stock. To illustrate the voting disparity, the Taubman family owns roughly 2% of the company's common stock but controls about 30% of the total voting interests through their ownership of non-traded Series B stock.
Despite winning a board seat, Land & Buildings has so far failed in its efforts to change Taubman Centers. The dual-class share structure still exists, and the company's financial performance has not improved. Taubman Centers' stock price is now at a multiyear low. Litt stepped off the Taubman board this year, noting in a recent letter that "one independent shareholder voice in the boardroom was simply not enough to implement the changes necessary to drive shareholder value at Taubman."
Today, Land & Buildings maintains a 1.8% ownership of Taubman Centers' stock. The activist's June letter advocates monetizing Taubman's real estate assets through a spinoff or sale. If Taubman Centers ignores Land & Buildings, it can expect another fight for board seats in 2020.
Taubman Centers owns and operates a real estate portfolio of luxury shopping malls in dense metropolitan areas. It is focused on what is known as Class A malls, which tend to be located in affluent neighborhoods and carry premium retail brands.
Despite negative headlines describing declining foot traffic at shopping malls,Class A malls have continued to do well. Shoppers continue to visit luxury shopping malls in droves, supporting much higher store rents at these destinations. Taubman's malls are among the most productive in terms of retail sales per square foot in the U.S.
In a December 2017 presentation, Land & Buildings highlighted several of Taubman Centers' malls that it believes are some of the most attractive in its portfolio. These properties are likely some of the assets that make up the Jewel Box. As the table below shows, Taubman Centers owns several malls located in affluent communities and boasts attractive sales per square foot.
[{"Mall name": "Mall at Short Hills", "Location": "Short Hills, NJ", "Number of regional households earning more than $100k": "423,329", "Mall sales per square foot": "$1,230"}, {"Mall name": "Dolphin Mall", "Location": "Miami, FL", "Number of regional households earning more than $100k": "164,896", "Mall sales per square foot": "$850"}, {"Mall name": "Mall at Millenia", "Location": "Orlando, FL", "Number of regional households earning more than $100k": "140,255", "Mall sales per square foot": "$1,380"}, {"Mall name": "Beverly Center", "Location": "Los Angeles, CA", "Number of regional households earning more than $100k": "349,272", "Mall sales per square foot": "$990"}, {"Mall name": "International Center", "Location": "Tampa, FL", "Number of regional households earning more than $100k": "260,351", "Mall sales per square foot": "$940"}, {"Mall name": "Mall at Green Hills", "Location": "Nashville, TN", "Number of regional households earning more than $100k": "184,112", "Mall sales per square foot": "$870"}, {"Mall name": "Cherry Creek Shopping Center", "Location": "Denver, CO", "Number of regional households earning more than $100k": "347,661", "Mall sales per square foot": "$980"}]
Data source: Land & Buildings presentation.
In its June letter, Land & Buildings noted that Taubman's 11 Jewel Box assets alone are worth more than the current market value of the company and can be monetized through a sale or spinoff. The activist also calls on the company to divest its Asian properties because it doesn't believe they add value to the overall portfolio.
It's important to note that Land & Buildings is an investment firm specializing in real estate. The firm has successfully waged activist campaigns in the past that have unlocked real estate value at companies like retailerHudson's Bayand casinoMGM. Given that Litt has served on the Taubman board, Land & Buildings has a particularly strong understanding of the inner workings of Taubman Centers.
It's safe to say that Land & Buildings has good insight into what Taubman Centers' real estate portfolio could be worth, and it is taking action to call attention to that value.
If Taubman Centers' real estate is so valuable and the market is not giving the stock proper credit, what is holding the company back from acting on the activist's proposal?
Land & Buildings has argued in the past that the Taubman family is entrenched at the company and benefits from their lucrative relationship through employment and other perks. In other words, the activist believes that the Taubman family has a conflict of interest when it comes to maximizing value for the rest of the shareholders.
This is why Land & Buildings believes the board should be changed. However, whether or not Land & Buildings would be successful in its attempt to take over the board in 2020 is another matter. Due to the Taubman family's control of 30% of the shareholder vote, the activist would need the overwhelming majority of the remaining shareholders to support its proxy fight in order to prevail. While this is possible, it's certainly a tall order.
Land & Buildings may have a better shot of persuading Taubman Centers' management to monetize some of the assets. The activist's proposals are not necessarily new, but the stock's currently depressed share price may increase pressure on the company to take action.
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Luis Sanchezhas 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. |
Is SOHO China Limited's (HKG:410) High P/E Ratio A Problem For Investors?
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The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we'll show how SOHO China Limited's (HKG:410) P/E ratio could help you assess the value on offer. Looking at earnings over the last twelve months,SOHO China has a P/E ratio of 6.37. In other words, at today's prices, investors are paying HK$6.37 for every HK$1 in prior year profit.
Check out our latest analysis for SOHO China
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)
Or for SOHO China:
P/E of 6.37 = CN¥2.36(Note: this is the share price in the reporting currency, namely, CNY )÷ CN¥0.37 (Based on the trailing twelve months to December 2018.)
A higher P/E ratio means that investors are payinga higher pricefor each HK$1 of company earnings. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
P/E ratios primarily reflect market expectations around earnings growth rates. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. That means even if the current P/E is high, it will reduce over time if the share price stays flat. And as that P/E ratio drops, the company will look cheap, unless its share price increases.
SOHO China saw earnings per share decrease by 59% last year. But over the longer term (3 years), earnings per share have increased by 53%. And EPS is down 24% a year, over the last 5 years. This could justify a pessimistic P/E.
The P/E ratio indicates whether the market has higher or lower expectations of a company. As you can see below SOHO China has a P/E ratio that is fairly close for the average for the real estate industry, which is 6.3.
That indicates that the market expects SOHO China will perform roughly in line with other companies in its industry. The company could surprise by performing better than average, in the future. Further research into factors such asinsider buying and selling, could help you form your own view on whether that is likely.
The 'Price' in P/E reflects the market capitalization of the company. Thus, the metric does not reflect cash or debt held by the company. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
SOHO China has net debt worth a very significant 171% of its market capitalization. This level of debt justifies a relatively low P/E, so remain cognizant of the debt, if you're comparing it to other stocks.
SOHO China trades on a P/E ratio of 6.4, which is below the HK market average of 10.8. Given meaningful debt, and a lack of recent growth, the market looks to be extrapolating this recent performance; reflecting low expectations for the future.
Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
But note:SOHO China may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio below 20).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Apple launches iOS 13 public beta: 10 reasons to get the software now if you're feeling brave
iOS 13 is the software at the core of iPhones. This latest program adds fresh features to the phone, from Dark Mode to improved Photos and Map apps. View comments |
You may have unclaimed money just waiting for you to find it. Here are 4 places to look
Billions of unclaimed dollars are being held across the USA, waiting for the rightful owners to collect their cash. |
Sky Light Holdings Limited (HKG:3882) Has Attractive Fundamentals
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Sky Light Holdings Limited (HKG:3882) due to its excellent fundamentals in more than one area. 3882 is a company with robust financial health as well as a buoyant growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the fullreport on Sky Light Holdings here.
One reason why investors may be attracted to 3882 is its explosive triple-digit earnings growth potential in the near future. Earnings growth is paired with an eye-catching top-line trajectory of 79%, which indicates a high-quality bottom-line expansion, as opposed to those driven simple by unsustainable cost-cutting activities. 3882 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 3882 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. With a debt-to-equity ratio of 26%, 3882’s debt level is acceptable. This means that 3882’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt.
For Sky Light Holdings, I've compiled three important aspects you should further examine:
1. Historical Performance: What has 3882'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 3882 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 3882 is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of 3882? 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. |
Read This Before Selling China Best Group Holding Limited (HKG:370) Shares
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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares inChina Best Group Holding Limited(HKG:370).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for China Best Group Holding
Over the last year, we can see that the biggest insider purchase was by Zizhen Fu for HK$35m worth of shares, at about HK$0.20 per share. That means that even when the share price was higher than HK$0.19 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Zizhen Fu was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them).
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. China Best Group Holding insiders own about HK$185m worth of shares. That equates to 19% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China Best Group Holding. Looks promising!I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
Of courseChina Best Group Holding may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
G20 summit — What to know in markets Friday
The highly-anticipated G20 summit kicks off on Friday in Osaka, Japan.
All eyes are on President Donald Trump and President Xi Jinping as the two leaders prepare to meet for extended trade talks over a lunch meeting on Saturday. Ahead of Trump and Xi’s meeting, U.S. Trader Representative Robert Lighthizer and Chinese Vice Premier Liu He are expected to meet, according to the Wall Street Journal. And, President Xi is reportedly planning to attend the meeting with prepared terms for further trade negotiations.
In theory, if the trade discussions play out well at the G20 between Trump and Xi, that would put a pause on the looming tariffs set to go into effect on the remaining $300 billion worth of Chinese goods. However, on Thursday, Trump’s top economic advisor Larry Kudlow said in an interview with Fox News that no official agreements have been made, and the U.S. may green light the remaining tariffs.
Though many agree that the high-stakes meeting will end with at least a temporary truce, there is still skepticism over whether or not it will result in a solid trade deal. “It seems likely that Presidents Trump and Xi will agree to another tariff ceasefire on the sidelines of this weekend’s G20 summit in Osaka, Japan,” Capital Economics wrote in a note Wednesday. “But given the differences between the two sides, we suspect that any truce will prove temporary. The conclusions of the summit itself are likely to be vague, with the group still divided over the way forward on issues like WTO reform, climate change and sustainable investment.”
If the U.S. tariffs are slapped on the remaining Chinese goods, there are several sectors in the market that could be hit especially hard, according to Barclays.
“As for the effect on US corporate profits, the level of international sales is not a good proxy to estimate the effect of tariffs imposed by China on US goods, as what really matters is the level of actual exports and imports,” the firm wrote in a note to clients Wednesday. “We estimate that while theeffect on S&P 500 earnings is relatively modest at ~2%, there is substantial variation across sectors, with Consumer Discretionary, Information Technology and Industrials the most affected.”
Meanwhile, beer giant Constellation Brands (STZ) is the only major company to report earnings on Friday. Analysts expect the company to report adjusted earnings of $2.05 per share on $2.07 billion of revenue, according to data compiled by Bloomberg.
—
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter:@heidi_chung.
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Is Godrej Properties Limited's (NSE:GODREJPROP) Balance Sheet A Threat To Its Future?
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Investors are always looking for growth in small-cap stocks like Godrej Properties Limited (NSE:GODREJPROP), with a market cap of ₹220b. However, an important fact which most ignore is: how financially healthy is the business? 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. Let's work through some financial health checks you may wish to consider if you're interested in this stock. Nevertheless, this is just a partial view of the stock, and I suggest youdig deeper yourself into GODREJPROP here.
Over the past year, GODREJPROP has reduced its debt from ₹37b to ₹35b – this includes long-term debt. With this debt repayment, the current cash and short-term investment levels stands at ₹14b , ready to be used for running the business. Additionally, GODREJPROP has generated cash from operations of ₹4.8b over the same time period, leading to an operating cash to total debt ratio of 14%, meaning that GODREJPROP’s current level of operating cash is not high enough to cover debt.
With current liabilities at ₹51b, it seems that the business has been able to meet these obligations given the level of current assets of ₹55b, with a current ratio of 1.08x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Real Estate companies, this is a reasonable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
With total debt exceeding equity, GODREJPROP is considered a highly levered company. This is a bit unusual for a small-cap stock, since they generally have a harder time borrowing than large more established companies.
Although GODREJPROP’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. Keep in mind I haven't considered other factors such as how GODREJPROP has been performing in the past. I suggest you continue to research Godrej Properties to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for GODREJPROP’s future growth? Take a look at ourfree research report of analyst consensusfor GODREJPROP’s outlook.
2. Valuation: What is GODREJPROP 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 GODREJPROP 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. |
Yuan, U.S. Dollar Near Flat Ahead of Trump-Xi Meeting
Investing.com - The Chinese yuan traded near flat against the U.S. dollar on Friday in Asia as traders are paying close attention to developments at the G-20.
The USD/CNY pair was down 0.04% to 6.8724 by 11:50 AM ET (03:50 GMT).
Investor sentiment improved somewhat after the South China Morning Post reported yesterday that China and the U.S. have agreed to a truce ahead of the meeting, while The Wall Street Journal reported that Chinese leader Xi Jinping is expected to present U.S. President Donald Trump with a list of demands, including lifting the ban on U.S. companies selling to Huawei.
Dai Bing, the foreign ministry’s Director General for African Affairs, said Xi condemned "bullying practices" in a meeting with African leaders ahead of the summit.
“Any attempt to put one’s own interests first and undermine others’ will not win any popularity,” Xi said, according to Dai.
Meanwhile, CNBC reported U.S. Trade Representative Robert Lighthizer told Chinese Premier Liu He in a phone call that balance will not happen, citing various violations of intellectual property in the past.
Trump is set to hold the much-anticipated trade talks with Xi at 11:30 AM ET on Saturday.
Meanwhile, the U.S. dollar was also little changed as jobless claims came in higher than expected.
Initial jobless claims rose 10,000 to a seasonally adjusted 227,000 for the week ending June 22, the Labor Department said. Economists were looking for a smaller rise to 220,000.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies last traded at 95.752, up 0.01%.
The USD/JPY pair was down 0.1% to 107.63. Trump confirmed today that he will discuss with Japanese Prime Minister Shinzo Abe on the sidelines of the G-20 and he expects “very big trade deal” will be announced.
The AUD/USD pair and the NZD/UDS pair both traded near flat at 0.7009 and 0.6697 respectively.
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Apple's Jony Ive Is Leaving
In a surprise announcement after the bell today,Apple(NASDAQ: AAPL)said the company's lead design officer, Sir Jony Ive, is leaving the company later this year. Working with the tech giant for nearly 30 years, Ive's importance to Apple is arguably in line with the contributions of Steve Jobs and Tim Cook.
Replacing Ive is going to be a near-impossible task. The caliber of his foresight and innovation at the company has been nothing short of groundbreaking. Fortunately, Ive doesn't plan to stop working with Apple completely. A total replacement, therefore, may not be necessary at this point.
Image source: Apple.
Ive has been heralded as one of the world's most influential product designers. Some of his greatest work includes the groundbreaking 1998 iMac, various other Macs, the iPod, the iPhone, the iPad, the overhaul of iOS when iOS 7 was released, architectural projects including Apple Park campus and Apple retail stores, and more.
Ive even received thehonor of knighthoodat Buckingham Palace "for services to design and to enterprise."
"Jony is a singular figure in the design world and his role in Apple's revival cannot be overstated," Apple said in a press release on Thursday.
Ive began a transition away from day-to-day duties in design work in 2015, when he waspromoted to a C-level positionalongside CEO Tim Cook and CFO Luca Maestri. Two members of the design team at the time were given executive design titles in order to fill Ive's shoes for managerial tasks in design.
I wrote at the time that it was "conceivable that putting other design leads in the spotlight is a move set up to play an important role in easing the concern of Apple investors if Ive does ever step down from his job at Apple." To some extent, this has played out, as Apple stock is only down 0.9% in after-hours trading as of 6:36 p.m. EDT: Investors clearly have confidence in Ive's successors.
Taking over Ive's role this time are design team leaders Evans Hankey and Alan Dye, who both will report to Apple's chief operating officer Jeff Williams.
"Both Dye and Hankey have played key leadership roles on Apple's design team for many years," Apple said. "Williams has led the development of Apple Watch since its inception and will spend more of his time working with the design team in their studio."
After leaving Apple "later this year," Ive will form an independent design company that will include Apple as one of its primary clients. The new design company will work closely "on a range of projects with Apple."
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Daniel Sparkshas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends 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. |
European Equities: The G20 Summit Kicks Off and Will Drive the Majors
• French Consumer Spending m/m (May)
• French CPI m/m (June) Prelim
• French HICP m/m (June) Prelim
• Spanish GDP q/q (Q1)
• Italian CPI m/m (Jun) Prelim
• Eurozone Core CPI y/y (Jun) Prelim
• Eurozone CPI y/y (Jun) Prelim
The European majors had a repeat of Wednesday. The DAX30 managed a 2ndconsecutive day in the green, rising by 0.21%, while the CAC40 and EuroStoxx600 continued to struggle.
It was a 5thconsecutive day in the red for the CAC40, which ended the day with a 0.13% loss, while the EuroStoxx600 ended the day flat.
Both Washington and Beijing delivered statements of intent ahead of the G20 that gets underway today. Comments suggested that neither China nor the U.S has any interest in backing down at this juncture.
Economic data out of the Eurozone included prelim June inflation figures out of Spain and Germany and Eurozone business confidence figures.
June inflation figures were mixed on Thursday. Spain’s annual rate of inflation softened from 0.8% to 0.4% in June, while Germany’s annual rate of inflation picked up from 1.4% to 1.6%.
While inflation figures were mixed, business confidence figures disappointed. The Business Confidence Indicator fell from 0.30 to 0.17 in June. According to figures released by theEU Commission, production expectations, coupled with negative sentiment towards overall and export orders books weighed. A deterioration in the level of stocks also contributed to the fall.
Out of the U.S, there were no major shocks. Finalized 1stquarter GDP numbers were in line with 2ndprelims. Initial jobless claims picked up from 217k to 227k, the marginal increase not enough to ruffle the markets’ feathers.
From the DAX, bank stocks found further support, with Deutsche Bank and Commerzbank rising by 1.94% and by 0.98% respectively. For the auto sector, it was a mixed bag. Continental and Volkswagen saw red, falling by 0.09% and by 0.16% respectively. BMW (+0.74%) and Daimler (+0.58%) managed to end the day in positive territory.
Leading the way on the day was Bayer (“BAYN”), which jumped by 5.19%, with ThyssenKrupp finding further support, up by 2.22%. ThyssenKrupp continued to find support on the possible buyout of its planned elevator business unit. For Bayer, the company announced that it has hired a legal team to battle a lawsuit resulting from its acquisition of Monsanto.
From the CAC, BNP Paribas and Credit Agricole gained 0.68% and 1.16% respectively, while Renault slipped by 0.09%.
It’s a busy week ahead.
French consumer spending and finalized Spanish 1stquarter GDP numbers are due out. On the inflation front, French, Italian and the Eurozone’s prelim June inflation figures will also be in focus.
From the U.S, the FED’s preferred Core PCE Price index and personal spending figures are due out ahead of Chicago’s June PMI and finalized consumer sentiment figures.
A shift in sentiment towards a near-term FED rate cut weighed on the majors mid-week. Softer inflation figures would be positive for the majors.
It goes without saying, however, that the stats will play second fiddle once more. Updates from the G20 Summit will be the key driver on the day. Expect a panic sell-off if trade talks go nowhere…
Trump has a vested interest in getting trade talks back on track as he kicks off his presidential election campaign. A recession would certainly suggest that he just doesn’t have the walk to go with the talk…
At the time of writing, the DAX was up by 40.5 points. The Dow Mini was up by 55 points.
Thisarticlewas originally posted on FX Empire
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Why Ador Welding Limited (NSE:ADORWELD) Could Have A Place In Your Portfolio
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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 Ador Welding Limited (NSE:ADORWELD), it is a financially-sound , dividend-paying company with a a great track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Ador Welding here.
In the previous year, ADORWELD has ramped up its bottom line by 33%, with its latest earnings level surpassing its average level over the last five years. Not only did ADORWELD outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 21% earnings growth. This is what investors like to see! ADORWELD's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ADORWELD manages its cash and cost levels well, which is a crucial insight into the health of the company. ADORWELD’s debt-to-equity ratio stands at 25%, which means its debt level is reasonable. This implies that ADORWELD has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt.
Income investors would also be happy to know that ADORWELD is a great dividend company, with a current yield standing at 1.9%. ADORWELD has also been regularly increasing its dividend payments to shareholders over the past decade.
For Ador Welding, there are three essential factors you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for ADORWELD’s future growth? Take a look at ourfree research report of analyst consensusfor ADORWELD’s outlook.
2. Valuation: What is ADORWELD 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 ADORWELD is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of ADORWELD? 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. |
Trump prepares for 'productive' talks with Xi on trade war
By Roberta Rampton
OSAKA (Reuters) - U.S. President Donald Trump on Friday said he hoped for productive talks with Chinese President Xi Jinping on a trade war that is casting a shadow on global growth, but said he had not made any promises about a reprieve from escalating tariffs.
The trade feud and signs of a global slowdown have loomed over a two-day Group of 20 (G20) summit in the Japanese city of Osaka, where Trump and Xi met in passing and prepared for one-on-one talks on Saturday.
To lay the groundwork, Chinese Vice Premier Liu He met Trump's treasury secretary, Steven Mnuchin, and Trade Representative Robert Lighthizer at the hotel where the U.S. delegation was staying, a source familiar with the talks said.
Expectations have dimmed that the world's two biggest economies can ease tension when Trump and Xi meet.
"At a minimum it will be productive. We'll see what happens and what comes out of it," Trump told reporters after a series of meetings with leaders where he made clear that his priority was two-way trade deals to boost the U.S. economy.
Asked, however, if he had promised Xi a six-month reprieve on imposing new tariffs on a $300 billion list of Chinese imports, Trump said: "No."
Trump has already imposed tariffs on $250 billion of Chinese imports and is threatening to extend those to another $300 billion of goods, effectively everything China exports to the United States. China has retaliated with tariffs on U.S. imports.
Asian shares stumbled and gold slipped on Friday, as doubts grew that the highly anticipated meeting between the two leaders would bring progress. Wall Street edged higher.
The best-case scenario for the talks was a resumption of trade negotiations, Marc Short, the chief of staff for U.S. Vice President Mike Pence, told reporters at the White House on Friday.
Talks fell apart in May after the United States accused China of reneging on reform pledges made earlier in negotiations.
In Beijing, foreign ministry spokesman Geng Shuang said he hoped the U.S. side could meet China halfway.
"This accords with the interests of both countries and is what the international community is hoping for," he told a news briefing.
China has consistently pushed back against criticism from Western countries, especially the United States and the European Union, about things like intellectual property rights and the difficulty of doing business in China.
"China's promise to expand its opening up is not just a cheque that can't be cashed," Xi told German Chancellor Angela Merkel at a side meeting in Osaka.
THREAT TO GLOBAL GROWTH
Trump's administration also has trade feuds with India, Japan and Germany, whose leaders he met on Friday.
Trump said he saw U.S. trade prospects improving, days after criticizing the U.S.-Japan security treaty and demanding that India withdraw retaliatory tariffs.
"I think we're going to have some very big things to announce. Very big trade deal," Trump said before he began talks with Indian Prime Minister Narendra Modi. He gave no details.
A White House official said the two leaders had called on their teams to work on mutually beneficial trade solutions.
Trump also made a push to discuss U.S. concerns about Chinese telecoms equipment maker Huawei [HWT.UL].
The United States has pressed its allies to shun Huawei in their fifth generation, or 5G, networks on security grounds. Trump has also suggested easing U.S. restrictions on Huawei could be a factor in a trade deal with Xi.
"We actually sell Huawei many of its parts," Trump said at his meeting with Modi. "So we’re going to be discussing that and also how India fits in. And we’ll be discussing Huawei."
Several leaders warned that the growing Sino-U.S. trade friction was threatening global growth.
"The trade relations between China and the United States are difficult, they are contributing to the slowdown of the global economy," European Commission President Jean-Claude Juncker told a news conference.
Xi also warned about the protectionist steps he said some developed countries were taking.
"All this is destroying the global trade order ... This also impacts common interests of our countries, overshadows peace and stability worldwide," Xi told a gathering of leaders of the BRICS grouping on the sidelines of the G20.
REFORMING WORLD TRADE RULES
Modi, at the same meeting, called for a focus on reforming the World Trade Organization (WTO) and Russian President Vladimir Putin decried what he called efforts to destroy the Geneva-based body.
"We consider counter-productive any attempts to destroy WTO or to lower its role," Putin said.
The situation of the global economy was worrying, as trade felt the effect of "protectionism (and) politically motivated restrictions," he added.
Russian Economy Minister Maxim Oreshkin said there was no agreement on how to reform the WTO system, whose rules Washington believes are outdated, though a Japanese official said G20 members agreed on the importance of reform.
The G20 leaders were also struggling to find common ground on issues such as information security, climate change and migration, said Svetlana Lukash, a Russian official helping to coordinate the meetings.
A White House official took a more positive view, saying there was a “good sense of unity in the room” between most leaders on working together on economic issues.
"China was less positive in its outlook which was in stark contrast to basically everybody else,” said the official, who spoke on condition of anonymity.
Trump, who often castigates trading partners on Twitter and at raucous political rallies, put a positive spin on trade developments.
"I appreciate the fact that you're sending many automobile companies into Michigan and Ohio and Pennsylvania and North Carolina," Trump told Japanese Prime Minister Shinzo Abe, who had presented him with a map showing the locations of Japanese auto investments in the United States.
Abe urged G20 leaders to send a strong message in support of free and fair trade, warning that trade and geopolitical tensions were rising and downside risks to the global economy prevailed. He also said he wanted to see momentum towards WTO reform.
Japanese and U.S. officials will meet next month to accelerate progress toward a trade deal, Economy Minister Toshimitsu Motegi told reporters after meeting Lighthizer, but added that they did not discuss a target date.
(Additional reporting by Leika Kihara, Kiyoshi Takenaka and Katya Golubkova; and by Ben Blanchard in BEIJING and Steve Holland in WASHINGTON; Writing by Linda Sieg in Tokyo; Editing by Robert Birsel, Nick Macfie and James Dalgleish) |
Why Ador Welding Limited's (NSE:ADORWELD) High P/E Ratio Isn't Necessarily A Bad Thing
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Ador Welding Limited's ( NSE:ADORWELD ), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months, Ador Welding has a P/E ratio of 19.36 . That corresponds to an earnings yield of approximately 5.2%. View our latest analysis for Ador Welding How Do I Calculate A Price To Earnings Ratio? The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Ador Welding: P/E of 19.36 = ₹349.3 ÷ ₹18.04 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? A higher P/E ratio means that investors are paying a higher price for each ₹1 of company earnings. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. How Growth Rates Impact P/E Ratios Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. That means unless the share price increases, the P/E will reduce in a few years. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers. It's nice to see that Ador Welding grew EPS by a stonking 33% in the last year. And earnings per share have improved by 3.1% annually, over the last three years. I'd therefore be a little surprised if its P/E ratio was not relatively high. Does Ador Welding Have A Relatively High Or Low P/E For Its Industry? We can get an indication of market expectations by looking at the P/E ratio. As you can see below, Ador Welding has a higher P/E than the average company (14.6) in the machinery industry. Story continues NSEI:ADORWELD Price Estimation Relative to Market, June 28th 2019 Its relatively high P/E ratio indicates that Ador Welding shareholders think it will perform better than other companies in its industry classification. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should delve deeper. I like to check if company insiders have been buying or selling . Remember: P/E Ratios Don't Consider The Balance Sheet It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. In other words, it does not consider any debt or cash that the company may have on the balance sheet. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth. Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio. How Does Ador Welding's Debt Impact Its P/E Ratio? With net cash of ₹487m, Ador Welding has a very strong balance sheet, which may be important for its business. Having said that, at 10% of its market capitalization the cash hoard would contribute towards a higher P/E ratio. The Bottom Line On Ador Welding's P/E Ratio Ador Welding trades on a P/E ratio of 19.4, which is above the IN market average of 15.4. The excess cash it carries is the gravy on top its fast EPS growth. To us, this is the sort of company that we would expect to carry an above average price tag (relative to earnings). Investors have an opportunity when market expectations about a stock are wrong. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow. Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with modest (or no) debt, trading on a P/E below 20. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UPDATE 3-Merlin to go private in $7.5 bln deal with Lego family and Blackstone
* Consortium swoops for Merlin six years after IPO
* Deal will help Merlin carry out needed investment
* 455 pence per share price struck after several rejections (Adds detail, quotes, recasts)
By Alistair Smout and Jacob Gronholt-Pedersen
LONDON/COPENHAGEN, June 28 (Reuters) - Madame Tussauds owner Merlin said on Friday it had agreed to be acquired by the investment vehicle of Lego's founding family and private equity firm Blackstone Group LP in a $7.5 billion deal.
The move, one of the biggest private equity deals in Europe in recent years, will allow Merlin to satisfy shareholder demands to invest in its assets and deliver on growth plans.
The deal to buy Merlin Entertainments, which also operates Legoland theme parks around the world, values Merlin shares at 455 pence each, giving the firm an enterprise value for the company and its debt of 5.91 billion pounds ($7.49 billion).
Merlin shares, which closed at 395 pence on Thursday, rose 14% on the announcement.
The deal comes as buyout firms are flush with record amounts of cash to invest.
Kirkbi, the private investment company of Lego's Kirk Kristiansen family, will own 50% of Merlin, while Blackstone and Canadian pension fund CPPIB will own the rest.
"The Merlin independent directors believe this offer represents an opportunity for Merlin shareholders to realise value for their investment in cash at an attractive valuation," Merlin Chairman John Sunderland said in a statement.
"We are therefore unanimously recommending it to our shareholders," he said, adding that the unsolicited approach followed the rejection of several proposals by the investment consortium.
The deal is expected to complete in the fourth quarter of 2019.
Merlin, which also operates the Alton Towers theme park in Britain, listed in 2013. Last month, activist investor ValueAct Capital urged Merlin to take itself private given the level of investment needed in the company.
The consortium said it recognised "significant, long-term investment is required", a process that will be easier when Merlin is no longer a listed company.
"We believe that this group of investors has the unique collective resources necessary to equip Merlin... for their next phase of growth," said Soren Thorup Sorensen, chief executive of Kirkbi, which holds around a 30% stake in Merlin already.
A source familiar with the matter said the initial, unsolicited offer from the consortium had valued the firm at 425 pence and talks about a takeover predated the ValueAct letter.
($1 = 0.7885 pounds) (Additional eporting by Bhargav Acharya in Bengaluru and Josephine Mason in London Editing by Bill Rigby and Edmund Blair) |
Why the backlash over Kim Kardashian trademarking 'Kimono' strengthens her legal case
Critics of Kim Kardashian’s decision to name her new shapewear brand “Kimono” were quick to voice their outrage on social media, claiming the star was culturally appropriating the name for a traditional Japanese garment.
Ironically, that same outrage that briefly had #KimOhNo trending may have just helped her legal case to get her Kimono brand trademarked.
First, despite some news reports claiming that Kim Kardashian already trademarked the word “Kimono.” She hasn’t, but she has tried.
Through her attorneys, Kardashian attempted to trademark “Kimono Intimates” in 2018, according to filings with the U.S. Patent and Trademark Office. The application, however, was initially rejected due to other companies already operating with similar brand names. Minneapolis-based fragrance company Thymes, for example, successfully trademarked its Kimono Rose line of soap products and candles back in 2011.
Since then, Kardashian filed two new trademark applications last week, including one standard trademark for “Kimono Body” and another for the stylized design of the text “Kimono” she says her husband Kanye designed for the shapewear line she announced on social media Tuesday.
That’s where the uproar comes in.
As trademark attorney David Leichtman explains to Yahoo Finance, Kardashian’s renewed attempts to trademark “Kimono” will in-part hinge on proving consumers associate the term directly with her.
“She’s going to have to show what we call in trademark law ‘secondary meaning,’” Leichtman said onYahoo Finance’s YFi PM. “What ‘secondary meaning’ means is that ... the relevant consumers for those goods associate the mark with the quality that emanates from her brand.”
Apparently, a simple way of showing exactly that is to get the news, even with the backlash, trending on Twitter.
“By creating a social media uproar she has actually strengthened the case that people will recognize the word ‘Kimono’ with her own line of clothing and her brand,” Leichtman said.
Of course, not everyone is equally suited to create as much impact as Kardashian is in a single tweet, considering her 61 million followers.
“The reason why Kim Kardshian is uniquely positioned to acquire secondary meaning is because consumers now know to connect the brand to her,” explained Joel MacMull, an intellectual property attorney at law firm Mandelbaum Salsburg. “It’s bonafide acquired distinctiveness, people will say, ‘I know ‘Kimono’ and I know it relates to Kim Kardashian.’”
If that actually happens, and Kardashian’s star power comes to displace the meaning of the word kimono, it would be easy to see why so many were quick to call it culturally appropriating. Unfortunately, for those same critics, Kardashian’s attorneys can now also point to that documented outrage on social media as further proof that the word has become distinct to Kardashian herself.
“Essentially by complaining they merely enhance her profile and the public perception between her and the mark,” MacMull said. “I’m sure she’ll have all kinds of people gravitating to it and on day one, she’ll be able to say I sold hundreds of thousands of nipple-cover pasties.”
The trademark classes that Kardashian applied for includes everything from shapewear, to nipple-cover pasties, to leather goods, to luggage and other retail segments. If approved, her stylized trademark of the Kanye design would only cover the classes she applied for and, as Leichtman explains, will be more limited in scope than if she were able to win her first attempt at a trademark on the word “Kimono” itself.
“What she may be able to do is to get registration just for that logo — not the word itself,” he said. “And therefore, anybody who would copy something that looks like that logo she would be able to stop, but she won’t be able to stop somebody doing ‘Kimono David’ or ‘Kimono Steven’ or something like that.”
Nonetheless, Kardashian’s trademark case is in a much stronger position now than it was before. One has to wonder if it has anything to do with the fact sherecently began a four-year law apprenticeshipin order to become an attorney herself.
The attorney listed on the trademark application, Steven Solomon from law firm Pearne & Gordon, did not return Yahoo Finance’s request for comment.
“I don’t know whether she was the one who first planted the story about her own trademark filing,” Leichtman said, “but if it was her … it was a very smart move in terms of trying to develop evidence that people do associate the name kimono with her brand.”
With the trademark application only being filed last week, it could be months before the application is reviewed.
Zack Guzman is the host ofYFi PMas well as a senior writer and on-air reporter covering entrepreneurship, startups, and breaking news at Yahoo Finance. Follow him on Twitter@zGuz.
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