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Rise Gold Announces Significant Exploration Target at the Idaho-Maryland Gold Project
Vancouver, British Columbia--(Newsfile Corp. - June 28, 2019) - Rise Gold Corp. (CSE: RISE) (OTCQB: RYES) (the "Company") is pleased to announce the successful completion of the initial surface exploration drilling program, the estimation of a significant Initial Exploration Target based on recent exploration drilling, and the Company's strategy to advance the Idaho-Maryland ("I-M") Gold Project towards the re-opening of the mine.
The Company has completed 19 drill holes, totalling 20,584 meters, over the past 20 months in the Company's initial surface exploration drilling program at the Idaho-Maryland Gold Project.
Drilling has confirmed the presence of significant extensions of previously mined veins and structures. Numerous high-grade gold intercepts have been encountered, both near the existing mine workings and to depths of over 1 km below historic mining areas.
The Company has calculated an Initial Exploration Target based on Rise Gold's exploration drill results supported by historic data from the Idaho-Maryland Gold Project. The initial target represents the mineralized material in close proximity to and accessible from the existing mine workings that can be readily drilled from surface and/or underground to define a mineral resource.
The Initial Exploration Target provides a basis for the engineering required to permit and plan for the re-opening of Idaho-Maryland Mine. The Company is now focusing its resources on engineering work to advance the project. The Company has temporarily curtailed surface exploration drilling.
The Company has commenced engineering work to support an application for a Use Permit from Nevada County to allow the following activities:
1. Dewatering of the underground mine workings.
2. Underground exploration drilling.
3. Full commercial mining with onsite mineral processing at the historic throughput of 1,000 tons per day.
Information on regulatory and environmental aspects of the Idaho-Maryland Gold Project was previously released on May 17, 20191.
The Initial Exploration Target is estimated to range between 2,280,000 tons - 3,410,000 tons of mineralized material, as detailed in Table 1. Approximately 50% of the mineralized material is hosted in wide zones, estimated to average ~29 feet (9 m) in true width, and potentially amenable to high productivity sub level long hole mining methods. The remaining mineralized material is estimated to average ~10 feet (3 m) in true width and would likely require more selective mining methods such as cut and fill mining.
The grade of this mineralized material cannot reliably be estimated without more extensive sampling. However, Rise Gold's drill core assays in conjunction with historic geological information show high grade gold values similar to grades that were encountered in historic operations at the Idaho-Maryland Mine.
Past production of the Idaho-Maryland for the period from 1866 to 1955 is estimated at 2,414,000 oz of gold at an average mill head grade of 0.50 oz per ton (17 grams per tonne) gold. Over the five years from 1937-1941 before the mine was forced to shutdown during WWII, the mine produced an average of 941 tons per day at an average head grade of 0.34 oz per ton (11.6 grams per tonne) and 116,000 oz gold per year2.
The Company cautions investors that the potential quantity and grade of the Initial Exploration Target is conceptual in nature and there has been insufficient exploration to define a mineral resource. The exploration target therefore does not represent, and should not be construed to be, an estimate of a mineral resource or mineral reserve. It is uncertain if further exploration will result in the target being delineated as a mineral resource.
The Initial Exploration Target is derived from Rise Gold's drill intercepts where geology can be correlated to historic workings. Many of Rise Gold's recent drill intercepts are excluded from the estimate until further drilling can allow the full and reliable interpretation of this data. An exceptionally high gold intercept encountered below the modeled exploration target in drill hole I-18-10 was excluded from the Initial Exploration Target. This interval assayed 4.35 oz per ton gold over 22.4 feet and included 63.85 oz per ton gold over 1.5 ft. This high-grade interval may represent a new and significant high-grade discovery but further drilling in this area is required to understand the orientation and nature of the mineralization.
Numerous known veins shown by historic drilling and mapping, pillars, and broken ore inventory in historic shrinkage stopes are excluded from the Initial Exploration Target. The Company believes there is significant potential in these tertiary targets that will be best targeted, in the future, from underground.
The large mineral potential to depth, as described in Rise Golds news release dated May 21st20193, is not included in the Initial Exploration Target and justifies extensive exploration. The Company believes that the potential for gold mineralization to depth is very significant and that it may be possible to delineate resources similar to or greater than the past production achieved at the Idaho-Maryland Mine.
TABLE 1 - Initial Exploration Target Summary
[["Block", "Zone", "Level", "LowCase", "BaseCase", "feet", "meters"], ["A", "Idaho #2", "I2700L - B3280L", "540,000", "810,000", "33", "10.1"], ["B", "Idaho #2", "I2700L", "200,000", "300,000", "16", "4.9"], ["C", "Idaho #2 - Splays", "I2400L", "170,000", "250,000", "8", "2.4"], ["D", "Idaho #1 Morehouse", "I2400L - B3280 L", "170,000", "250,000", "8", "2.4"], ["E", "Idaho #1", "I2400L - B3280 L", "320,000", "480,000", "8", "2.4"], ["F", "Brunswick #1", "B1600L - B1880L", "290,000", "440,000", "26", "7.9"], ["G", "Brunswick #32", "B1300L-B1880L", "120,000", "180,000", "11", "3.3"], ["H", "Brunswick #10HW", "B1600L - B1880L", "80,000", "120,000", "8", "2.5"], ["I", "Brunswick #10 FW", "B1600L - B1880L", "90,000", "130,000", "9", "2.7"], ["J", "Brunswick #41", "B1880L - B2650L", "300,000", "450,000", "23", "6.9"], ["", "TOTAL", "", "2,280,000", "3,410,000", "", ""]]
FIGURE 1 - Location of Areas Included in Initial Exploration Target
To view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/2255/45965_d51dd87554873972_002full.jpg
IDAHO #2 VEIN & RECENT DRILL RESULTS
Recent drill hole I-19-14A provided important geological information to prepare a substantial exploration target estimate for a portion of the Idaho #2 Vein. This zone of mineralization is estimated to have a true width of ~33 ft (10 m) and range in size from 540,000 - 800,000 tons.
Drill hole I-19-14A assayed 1.4 gpt gold over 14.9 m (0.04 oz per ton / 49.1 ft) including 6.2 gpt gold over 1.9 m (0.18 oz per ton / 6.3 feet).
Information from Drill hole I-19-14A provides geological context to previous intersections and historic information in this area of the Idaho #2 Vein. Drilling shows two important veins of the Idaho #2 zone which should be composited into a single zone.
Therefore, the previously released intersection for this area from drill hole I-19-13A is restated as 27.1 gpt gold over 14.8 m (0.79 oz gold per ton over 48.7 feet) with a true width of 14.1 m (46.4 ft). All drill hole intersections in this area of the Idaho #2 Vein are shown in Table 3.
A diabase dike is consistently present in the hanging wall of the mineralized zone. A gold-quartz vein is present immediately adjacent to the diabase (hanging wall vein). A second vein is separated from the hanging wall vein by approximately 18 ft (the center vein). The rock between the two veins is intensely altered and contains persistent but lower grade gold values. A weaker vein (footwall vein), occurs at a distance of approximately 20 ft from the center vein.
Historic drill hole I-2800-5 shows a similar style of mineralization with a hanging wall, center, and footwall vein. The historic operator did not assay the mineralized material between the veins and therefore 31 feet of the 63-foot mineralized interval in historic drill hole I-2800-5 is assigned a zero-gold grade.
Drill hole I-19-13 and I-19-13A are closely spaced, approximately 1.5 m (5 ft) apart, and show consistent geology but differ in grade substantially due to the coarse nature of the gold occurrence in this zone. For example, a section of the center vein in I-19-13A assayed 458 gpt gold over 0.81 m (13.35 oz per ton gold / 2.7 feet) and showed coarse gold in the retained half of the drill core as shown in Figure 2. The corresponding sample from I-19-13 assayed 12.5 gpt gold over 0.85 m (0.36 oz per ton gold / 2.8 feet). Rise Gold geologists inspected the retained half core from the corresponding I-19-13 interval and noted gold just below the surface of the drill core. This retained sample was split and revealed coarse gold present (shown in Figure 3), which may have resulted in a much higher assay if the entire core was submitted for assay.
Drill hole I-19-14A intersected the Idaho #2 Vein ~25.9 m (~85 feet) north of the mineralized intervals in drill holes I-19-13 and I-19-13A.
Drill hole I-19-14 intersected the Idaho #2 Vein 19.8 m (~65 feet) north of I-19-14A. The vein shows a sharp change in strike in this location, mirroring the historic drifting above on the I2700 level, and results in a significant decrease in vein widths, intensity of alteration, and gold grades. Based on historic records from the I2700 level above, it is suspected that gold grades may improve as the strike of the Idaho #2 Vein turns towards the Idaho #3 Vein, approximately 70 m (230 ft) north of the I-19-14 intercept.
FIGURE 2 - Visible Gold in Drill InterceptI-19-13A(in retained half core)(Assayed 13.35 oz per ton / 2.7 feet)
To view an enhanced version of Figure 2, please visit:https://orders.newsfilecorp.com/files/2255/45965_d51dd87554873972_003full.jpg
FIGURE 3 - Visible Gold in Drill InterceptI-19-13(in retained half core)(Assayed 0.36 oz per ton / 2.8 feet)To view an enhanced version of Figure 3, please visit:https://orders.newsfilecorp.com/files/2255/45965_d51dd87554873972_005full.jpg
INITIAL EXPLORATION TARGET
The Company prepared an estimate of potential tonnages for a number of exploration targets where recent drill results can be correlated with historic geology and operational data. Each zone was modelled using Rise Gold's drill hole information along with historic mapping and historic drilling where it was available. To account for uncertainty in geometry, a low case value of 67% of the base case value is presented in the exploration target summary. The historic mineralized material density of 12 ft3/ ton was used for tonnage estimates.
The Initial Exploration Target only includes mineralizationabovethe B3280 level which is the lowest level of the existing historic mine. Rise Gold has drilled several important intersections much deeper than the B3280 level which suggests important gold mineralization extends well below the B3280 level. The historic operator also anticipated that gold mineralization continued well below the B3280 level and invested significant capital to upgrade the mine hoist and was actively sinking the shaft towards the 5000 ft level below surface. The historic operator reached a depth of 3470 ft below surface when the mine was forced to close in 1942.
Drawings showing the location and geometry of the zones included in the Initial Exploration Target can be downloaded from the following link. All drawings are in imperial units and shown in mine grid coordinates. The mine grid uses an elevation of 10,000 ft as the datum for sea level. Mine grid north is similar to true north.
https://riseg.sharefile.com/d-s59c224538744036b
The estimated dimensions used for the calculation of the Initial Exploration Target is displayed in Table 2. Drill intersections used for the modelling of the Initial Exploration target are displayed in Table 3 through Table 5. Important Rise Gold drill intersections which were excluded from the Initial Exploration Target are presented in Table 6.
TABLE 2 - Estimated Dimensions for Initial Exploration Target
[["Block", "Zone", "Strike Length(ft)", "Dip Length(ft)", "True Width(ft)", "Dip(deg)"], ["A", "Idaho #2", "574", "510", "33", "30"], ["B", "Idaho #2", "454", "485", "16", "0 (flat)"], ["C", "Idaho #2 - Splays", "454", "421", "2 x 8 = 16", "0 (flat)"], ["D", "Idaho #1 Morehouse", "497", "754", "8", "35"], ["E", "Idaho #1", "1340", "533", "8", "45 - 90"], ["F", "Brunswick #1", "438", "461", "26", "35"], ["G", "Brunswick #32", "300", "659", "11", "60"], ["H", "Brunswick #10HW", "480", "378", "8", "60"], ["I", "Brunswick #10 FW", "480", "378", "9", "60"], ["J", "Brunswick #41", "222", "1085", "23", "45"]]
TABLE 3 - Rise Gold & Historic Drill Intersections within Idaho #2 Initial Exploration Target
[{"Hole": "I-19-13", "From(ft)": "3273.0", "To(ft)": "3323.8", "From(m)": "997.60", "To(m)": "1013.09", "Gold(gpt)": "2.9", "Gold(oz per ton)": "0.09", "Intercept Length(ft)": "50.9", "Intercept Length(m)": "15.50", "Estimated True Width(ft)": "44.75", "Estimated True Width(m)": "13.64", "Vein": "I2 - Bk-A"}, {"Hole": "Including", "From(ft)": "3307.0", "To(ft)": "3323.8", "From(m)": "1007.97", "To(m)": "1013.09", "Gold(gpt)": "5.5", "Gold(oz per ton)": "0.16", "Intercept Length(ft)": "16.8", "Intercept Length(m)": "5.12", "Estimated True Width(ft)": "14.78", "Estimated True Width(m)": "4.51", "Vein": "center vn"}, {"Hole": "I-19-13A", "From(ft)": "3263.6", "To(ft)": "3312.3", "From(m)": "994.75", "To(m)": "1009.57", "Gold(gpt)": "27.0", "Gold(oz per ton)": "0.79", "Intercept Length(ft)": "48.7", "Intercept Length(m)": "14.83", "Estimated True Width(ft)": "46.40", "Estimated True Width(m)": "14.14", "Vein": "I2 - Bk-A"}, {"Hole": "Including", "From(ft)": "3298.3", "To(ft)": "3312.3", "From(m)": "1005.31", "To(m)": "1009.57", "Gold(gpt)": "90.4", "Gold(oz per ton)": "2.63", "Intercept Length(ft)": "14.0", "Intercept Length(m)": "4.27", "Estimated True Width(ft)": "13.35", "Estimated True Width(m)": "4.07", "Vein": "center vn"}, {"Hole": "Including", "From(ft)": "3309.6", "To(ft)": "3312.3", "From(m)": "1008.77", "To(m)": "1009.57", "Gold(gpt)": "458.0", "Gold(oz per ton)": "13.35", "Intercept Length(ft)": "2.7", "Intercept Length(m)": "0.81", "Estimated True Width(ft)": "2.53", "Estimated True Width(m)": "0.77", "Vein": "center vn"}, {"Hole": "I-19-14A", "From(ft)": "3328.2", "To(ft)": "3377.0", "From(m)": "1014.42", "To(m)": "1029.31", "Gold(gpt)": "1.4", "Gold(oz per ton)": "0.04", "Intercept Length(ft)": "48.8", "Intercept Length(m)": "14.89", "Estimated True Width(ft)": "44.60", "Estimated True Width(m)": "13.59", "Vein": "I2 - Bk-A"}, {"Hole": "Including", "From(ft)": "3328.2", "To(ft)": "3334.5", "From(m)": "1014.42", "To(m)": "1016.36", "Gold(gpt)": "6.2", "Gold(oz per ton)": "0.18", "Intercept Length(ft)": "6.3", "Intercept Length(m)": "1.94", "Estimated True Width(ft)": "5.80", "Estimated True Width(m)": "1.77", "Vein": "hw vn"}, {"Hole": "I-2800-5 (hist)", "From(ft)": "348.1", "To(ft)": "411.3", "From(m)": "106.10", "To(m)": "125.38", "Gold(gpt)": "6.1", "Gold(oz per ton)": "0.18", "Intercept Length(ft)": "63.2", "Intercept Length(m)": "19.27", "Estimated True Width(ft)": "20.80", "Estimated True Width(m)": "6.34", "Vein": "I2 - Bk-A"}, {"Hole": "Including", "From(ft)": "348.1", "To(ft)": "358.6", "From(m)": "106.10", "To(m)": "109.30", "Gold(gpt)": "7.3", "Gold(oz per ton)": "0.21", "Intercept Length(ft)": "10.5", "Intercept Length(m)": "3.20", "Estimated True Width(ft)": "3.45", "Estimated True Width(m)": "1.05", "Vein": "I2 - Bk-A"}, {"Hole": "Including", "From(ft)": "381.1", "To(ft)": "400.1", "From(m)": "116.15", "To(m)": "121.94", "Gold(gpt)": "13.8", "Gold(oz per ton)": "0.40", "Intercept Length(ft)": "19.0", "Intercept Length(m)": "5.79", "Estimated True Width(ft)": "6.25", "Estimated True Width(m)": "1.91", "Vein": "I2 - Bk-A"}, {"Hole": "Including", "From(ft)": "408.8", "To(ft)": "411.3", "From(m)": "124.61", "To(m)": "125.38", "Gold(gpt)": "19.2", "Gold(oz per ton)": "0.56", "Intercept Length(ft)": "2.5", "Intercept Length(m)": "0.76", "Estimated True Width(ft)": "0.82", "Estimated True Width(m)": "0.25", "Vein": "I2 - Bk-A"}, {"Hole": "I-18-10", "From(ft)": "3168.0", "To(ft)": "3189.0", "From(m)": "965.61", "To(m)": "972.01", "Gold(gpt)": "3.2", "Gold(oz per ton)": "0.09", "Intercept Length(ft)": "21.0", "Intercept Length(m)": "6.40", "Estimated True Width(ft)": "18.40", "Estimated True Width(m)": "5.61", "Vein": "I2 - Bk-B"}, {"Hole": "I-2400-31 (hist)", "From(ft)": "623.6", "To(ft)": "668.9", "From(m)": "190.07", "To(m)": "203.87", "Gold(gpt)": "11.1", "Gold(oz per ton)": "0.32", "Intercept Length(ft)": "45.3", "Intercept Length(m)": "13.80", "Estimated True Width(ft)": "13.89", "Estimated True Width(m)": "4.23", "Vein": "I2 - Bk-B"}, {"Hole": "Including", "From(ft)": "634.3", "To(ft)": "664.3", "From(m)": "193.33", "To(m)": "202.47", "Gold(gpt)": "16.5", "Gold(oz per ton)": "0.48", "Intercept Length(ft)": "30.0", "Intercept Length(m)": "9.14", "Estimated True Width(ft)": "9.21", "Estimated True Width(m)": "2.81", "Vein": "I2 - Bk-B"}, {"Hole": "I-18-11", "From(ft)": "3197.4", "To(ft)": "3204.4", "From(m)": "974.57", "To(m)": "976.70", "Gold(gpt)": "10.9", "Gold(oz per ton)": "0.32", "Intercept Length(ft)": "7.0", "Intercept Length(m)": "2.13", "Estimated True Width(ft)": "5.77", "Estimated True Width(m)": "1.76", "Vein": "I2- Bk-C"}, {"Hole": "I-18-11", "From(ft)": "3255.4", "To(ft)": "3262.6", "From(m)": "992.25", "To(m)": "994.44", "Gold(gpt)": "11.9", "Gold(oz per ton)": "0.35", "Intercept Length(ft)": "7.2", "Intercept Length(m)": "2.19", "Estimated True Width(ft)": "5.87", "Estimated True Width(m)": "1.79", "Vein": "I2- Bk-C"}, {"Hole": "Including", "From(ft)": "3256.9", "To(ft)": "3258.6", "From(m)": "992.70", "To(m)": "993.22", "Gold(gpt)": "35.6", "Gold(oz per ton)": "1.04", "Intercept Length(ft)": "1.7", "Intercept Length(m)": "0.52", "Estimated True Width(ft)": "1.39", "Estimated True Width(m)": "0.42", "Vein": ""}]
TABLE 4 - Historic Drill Intersections & Channels within Idaho #1 Initial Exploration Target
[{"Hole": "I-2400 W historic channels", "From(ft)": "0.0", "To(ft)": "497.0", "From(m)": "0.00", "To(m)": "151.49", "Gold(gpt)": "16.3", "Gold(oz per ton)": "0.47", "Intercept Length(ft)": "497.0", "Intercept Length(m)": "151.49", "Estimated True Width(ft)": "8.00", "Estimated True Width(m)": "2.44", "Vein": "I1 - Mh"}, {"Hole": "Including", "From(ft)": "0.0", "To(ft)": "37.3", "From(m)": "0.00", "To(m)": "11.37", "Gold(gpt)": "37.3", "Gold(oz per ton)": "1.09", "Intercept Length(ft)": "37.3", "Intercept Length(m)": "11.37", "Estimated True Width(ft)": "8.00", "Estimated True Width(m)": "2.44", "Vein": "I1 - Mh"}, {"Hole": "Including", "From(ft)": "93.2", "To(ft)": "205.1", "From(m)": "28.41", "To(m)": "62.51", "Gold(gpt)": "17.7", "Gold(oz per ton)": "0.52", "Intercept Length(ft)": "111.9", "Intercept Length(m)": "34.11", "Estimated True Width(ft)": "8.00", "Estimated True Width(m)": "2.44", "Vein": "I1 - Mh"}, {"Hole": "Including", "From(ft)": "248.6", "To(ft)": "329.4", "From(m)": "75.77", "To(m)": "100.40", "Gold(gpt)": "47.3", "Gold(oz per ton)": "1.38", "Intercept Length(ft)": "80.8", "Intercept Length(m)": "24.63", "Estimated True Width(ft)": "8.00", "Estimated True Width(m)": "2.44", "Vein": "I1 - Mh"}, {"Hole": "Including", "From(ft)": "317.0", "To(ft)": "329.4", "From(m)": "96.62", "To(m)": "100.40", "Gold(gpt)": "187.3", "Gold(oz per ton)": "5.46", "Intercept Length(ft)": "12.4", "Intercept Length(m)": "3.78", "Estimated True Width(ft)": "8.00", "Estimated True Width(m)": "2.44", "Vein": "I1 - Mh"}, {"Hole": "I-2400-40 (hist)", "From(ft)": "191.1", "To(ft)": "204.5", "From(m)": "58.25", "To(m)": "62.33", "Gold(gpt)": "6.5", "Gold(oz per ton)": "0.19", "Intercept Length(ft)": "13.4", "Intercept Length(m)": "4.08", "Estimated True Width(ft)": "8.54", "Estimated True Width(m)": "2.60", "Vein": "I1"}, {"Hole": "Including", "From(ft)": "195.7", "To(ft)": "198.4", "From(m)": "59.65", "To(m)": "60.48", "Gold(gpt)": "24.0", "Gold(oz per ton)": "0.70", "Intercept Length(ft)": "2.7", "Intercept Length(m)": "0.82", "Estimated True Width(ft)": "1.72", "Estimated True Width(m)": "0.52", "Vein": ""}, {"Hole": "I-2400-40 (hist)", "From(ft)": "217.1", "To(ft)": "233.1", "From(m)": "66.17", "To(m)": "71.05", "Gold(gpt)": "2.9", "Gold(oz per ton)": "0.08", "Intercept Length(ft)": "16.0", "Intercept Length(m)": "4.88", "Estimated True Width(ft)": "8.85", "Estimated True Width(m)": "2.70", "Vein": "I1"}]
TABLE 5 - Drill Intersections within Brunswick Initial Exploration Target
[{"Hole": "B-17-01", "From(ft)": "2096.1", "To(ft)": "2145.0", "From(m)": "638.89", "To(m)": "653.80", "Gold(gpt)": "12.2", "Gold(oz per ton)": "0.36", "Intercept Length(ft)": "48.9", "Intercept Length(m)": "14.90", "Estimated True Width(ft)": "26.00", "Estimated True Width(m)": "7.92", "Vein": "B1"}, {"Hole": "Including", "From(ft)": "2112.0", "To(ft)": "2121.0", "From(m)": "643.74", "To(m)": "646.48", "Gold(gpt)": "62.7", "Gold(oz per ton)": "1.83", "Intercept Length(ft)": "9.0", "Intercept Length(m)": "2.74", "Estimated True Width(ft)": "4.79", "Estimated True Width(m)": "1.46", "Vein": "B1 Center"}, {"Hole": "Including", "From(ft)": "2116.0", "To(ft)": "2118.0", "From(m)": "644.96", "To(m)": "645.57", "Gold(gpt)": "266.0", "Gold(oz per ton)": "7.76", "Intercept Length(ft)": "2.0", "Intercept Length(m)": "0.61", "Estimated True Width(ft)": "1.06", "Estimated True Width(m)": "0.32", "Vein": "B1 Center"}, {"Hole": "B-18-04", "From(ft)": "1696.0", "To(ft)": "1709.2", "From(m)": "516.94", "To(m)": "520.96", "Gold(gpt)": "8.0", "Gold(oz per ton)": "0.23", "Intercept Length(ft)": "13.2", "Intercept Length(m)": "4.02", "Estimated True Width(ft)": "10.80", "Estimated True Width(m)": "3.29", "Vein": "B32"}, {"Hole": "Including", "From(ft)": "1696.0", "To(ft)": "1699.5", "From(m)": "516.94", "To(m)": "518.01", "Gold(gpt)": "23.0", "Gold(oz per ton)": "0.67", "Intercept Length(ft)": "3.5", "Intercept Length(m)": "1.07", "Estimated True Width(ft)": "2.86", "Estimated True Width(m)": "0.87", "Vein": ""}, {"Hole": "B-18-04", "From(ft)": "2051.4", "To(ft)": "2060.5", "From(m)": "625.27", "To(m)": "628.04", "Gold(gpt)": "4.0", "Gold(oz per ton)": "0.12", "Intercept Length(ft)": "9.1", "Intercept Length(m)": "2.77", "Estimated True Width(ft)": "7.30", "Estimated True Width(m)": "2.23", "Vein": "B10 HW"}, {"Hole": "B-18-04", "From(ft)": "2090.0", "To(ft)": "2100.0", "From(m)": "637.03", "To(m)": "640.08", "Gold(gpt)": "4.4", "Gold(oz per ton)": "0.13", "Intercept Length(ft)": "10.0", "Intercept Length(m)": "3.05", "Estimated True Width(ft)": "8.10", "Estimated True Width(m)": "2.47", "Vein": "B10 FW"}, {"Hole": "B-18-07", "From(ft)": "2449.1", "To(ft)": "2461.1", "From(m)": "746.49", "To(m)": "750.14", "Gold(gpt)": "4.0", "Gold(oz per ton)": "0.12", "Intercept Length(ft)": "12.0", "Intercept Length(m)": "3.66", "Estimated True Width(ft)": "9.10", "Estimated True Width(m)": "2.77", "Vein": "B10 HW"}, {"Hole": "B-18-07", "From(ft)": "2488.4", "To(ft)": "2501.1", "From(m)": "758.45", "To(m)": "762.34", "Gold(gpt)": "2.2", "Gold(oz per ton)": "0.06", "Intercept Length(ft)": "12.8", "Intercept Length(m)": "3.89", "Estimated True Width(ft)": "9.70", "Estimated True Width(m)": "2.96", "Vein": "B10 FW"}, {"Hole": "B-18-06", "From(ft)": "2509.5", "To(ft)": "2544.3", "From(m)": "764.90", "To(m)": "775.50", "Gold(gpt)": "4.2", "Gold(oz per ton)": "0.12", "Intercept Length(ft)": "34.8", "Intercept Length(m)": "10.61", "Estimated True Width(ft)": "26.90", "Estimated True Width(m)": "8.20", "Vein": "B41"}]
TABLE 6 - Important Rise Gold Drill IntersectionsExcludedfrom the Initial Exploration Target
[{"Hole": "I-18-10", "From(ft)": "3240.7", "To(ft)": "3263.1", "From(m)": "987.77", "To(m)": "994.58", "Gold(gpt)": "149.3", "Gold(oz per ton)": "4.35", "Intercept Length(ft)": "22.4", "Intercept Length(m)": "6.81", "Estimated True Width(ft)": "", "Estimated True Width(m)": "?", "Vein": "I2 footwall"}, {"Hole": "Including", "From(ft)": "3259.3", "To(ft)": "3260.8", "From(m)": "993.42", "To(m)": "993.88", "Gold(gpt)": "2190.0", "Gold(oz per ton)": "63.85", "Intercept Length(ft)": "1.5", "Intercept Length(m)": "0.46", "Estimated True Width(ft)": "", "Estimated True Width(m)": "", "Vein": ""}, {"Hole": "B-18-05", "From(ft)": "5212.0", "To(ft)": "5258.0", "From(m)": "1588.62", "To(m)": "1602.64", "Gold(gpt)": "8.8", "Gold(oz per ton)": "0.26", "Intercept Length(ft)": "46.0", "Intercept Length(m)": "14.02", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": "I2/3 (deep)"}, {"Hole": "Including", "From(ft)": "5217.0", "To(ft)": "5231.5", "From(m)": "1590.14", "To(m)": "1594.56", "Gold(gpt)": "23.7", "Gold(oz per ton)": "0.69", "Intercept Length(ft)": "14.5", "Intercept Length(m)": "4.42", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": ""}, {"Hole": "Including", "From(ft)": "5228.3", "To(ft)": "5229.7", "From(m)": "1593.59", "To(m)": "1594.01", "Gold(gpt)": "230.0", "Gold(oz per ton)": "6.71", "Intercept Length(ft)": "1.4", "Intercept Length(m)": "0.43", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": ""}, {"Hole": "B-18-05", "From(ft)": "6192.5", "To(ft)": "6202.2", "From(m)": "1887.47", "To(m)": "1890.43", "Gold(gpt)": "10.9", "Gold(oz per ton)": "0.32", "Intercept Length(ft)": "9.7", "Intercept Length(m)": "2.96", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": "I3/5 (deep)"}, {"Hole": "Including", "From(ft)": "6198.7", "To(ft)": "6200.3", "From(m)": "1889.36", "To(m)": "1889.85", "Gold(gpt)": "61.0", "Gold(oz per ton)": "1.78", "Intercept Length(ft)": "1.6", "Intercept Length(m)": "0.49", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": ""}, {"Hole": "I-19-12B", "From(ft)": "4485.8", "To(ft)": "4505.3", "From(m)": "1367.27", "To(m)": "1373.22", "Gold(gpt)": "9.4", "Gold(oz per ton)": "0.27", "Intercept Length(ft)": "19.5", "Intercept Length(m)": "5.95", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": "I1 (deep)"}, {"Hole": "Including", "From(ft)": "4485.8", "To(ft)": "4495.1", "From(m)": "1367.27", "To(m)": "1370.11", "Gold(gpt)": "18.5", "Gold(oz per ton)": "0.54", "Intercept Length(ft)": "9.3", "Intercept Length(m)": "2.84", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": "I1"}, {"Hole": "Including", "From(ft)": "4491.6", "To(ft)": "4495.1", "From(m)": "1369.04", "To(m)": "1370.11", "Gold(gpt)": "46.3", "Gold(oz per ton)": "1.35", "Intercept Length(ft)": "3.5", "Intercept Length(m)": "1.07", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": "I1"}, {"Hole": "Including", "From(ft)": "4493.9", "To(ft)": "4495.1", "From(m)": "1369.74", "To(m)": "1370.11", "Gold(gpt)": "111.5", "Gold(oz per ton)": "3.25", "Intercept Length(ft)": "1.2", "Intercept Length(m)": "0.37", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": "I1"}, {"Hole": "B-18-05", "From(ft)": "3209.0", "To(ft)": "3226.0", "From(m)": "978.10", "To(m)": "983.28", "Gold(gpt)": "22.4", "Gold(oz per ton)": "0.65", "Intercept Length(ft)": "17.0", "Intercept Length(m)": "5.18", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": "B40?"}, {"Hole": "Including", "From(ft)": "3209.0", "To(ft)": "3213.0", "From(m)": "978.10", "To(m)": "979.32", "Gold(gpt)": "93.2", "Gold(oz per ton)": "2.72", "Intercept Length(ft)": "4.0", "Intercept Length(m)": "1.22", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": ""}, {"Hole": "B-17-01", "From(ft)": "3647.0", "To(ft)": "3697.0", "From(m)": "1111.61", "To(m)": "1126.85", "Gold(gpt)": "4.5", "Gold(oz per ton)": "0.13", "Intercept Length(ft)": "50.0", "Intercept Length(m)": "15.24", "Estimated True Width(ft)": "?", "Estimated True Width(m)": "?", "Vein": "?"}, {"Hole": "Including", "From(ft)": "3648.5", "To(ft)": "3653.5", "From(m)": "1112.06", "To(m)": "1113.59", "Gold(gpt)": "40.6", "Gold(oz per ton)": "1.18", "Intercept Length(ft)": "5.0", "Intercept Length(m)": "1.52", "Estimated True Width(ft)": "", "Estimated True Width(m)": "", "Vein": ""}]
Quality Control and Assay Methods
Richard Lippoth, M.Sc, Reg. SME, the qualified person for the exploration drill results disclosure contained in this news release, has studied the drill core discussed in this news release and has reviewed the analytical and quality control results. Mr. Lippoth has reviewed and approved the scientific and technical contents of this news release.
Benjamin Mossman, P.Eng, CEO of Rise Gold, is the qualified person for the historic production disclosure and exploration target estimate contained in this news release. Historic production at the Idaho-Maryland Mine is disclosed in the Technical Report on the Idaho-Maryland Project dated June 1st, 2017 and available onwww.sedar.com.
Rise has implemented a quality control program for its drill program to ensure best practice in the sampling and analysis of the drill core. This includes the insertion of blind blanks, duplicates and certified standards. HQ- and NQ-sized drill core is saw cut with half of the drill core sampled at intervals based on geological criteria including lithology, visual mineralization, and alteration. The remaining half of the core is stored on-site at the Company's warehouse in Grass Valley, California. Drill core samples are transported in sealed bags to ALS Minerals analytical assay lab in Reno, Nevada.
All gold assays were obtained using a method of screen fire assaying. This procedure involves screening a large pulverized sample of up to 1 kg at 100 microns. Any +100 micron material remaining on the screen is retained and analyzed in its entirety by fire assay with gravimetric finish and reported as the Au (+) fraction result. The -100 micron fraction is homogenized and two sub-samples of 30-50 grams are analyzed by fire assay with AAS finish. If the grade of the material exceeds 10 gpt the sample is re-assayed using a gravimetric finish. The average of the two results is taken and reported as the Au (-) fraction result. All three values are used in calculating the combined gold content of the plus and minus fractions.
____________________
1https://www.risegoldcorp.com/uploads/content/May17RiseGoldProvidesInformationonTechnicalRegulatoryandEnvironmentalAspectsoftheIdahoMarylandGoldProject.pdf
2https://www.risegoldcorp.com/uploads/content/APR4RISEPROVIDESESTIMATEOFHISTORICGOLDPRODUCTIONFORIMMINE.pdf
3https://www.risegoldcorp.com/uploads/content/May21RiseGoldIntersectsHighGradeGold600mBelowLowestLevelofExplorationonIdaho1VeinatIdahoMaryland.pdf
About Rise Gold Corp.
Rise Gold is an exploration-stage mining company. The Company's principal asset is the historic Idaho-Maryland Gold Mine located in Nevada County, California, USA. Past production of the Idaho-Maryland for the period from 1866 to 1955 is estimated at 2,414,000 oz of gold at an average mill head grade of 17 gpt gold. Historic production at the Idaho-Maryland Mine is disclosed in the Technical Report on the Idaho-Maryland Project dated June 1st, 2017 and available onwww.sedar.com.Rise Gold is incorporated in Nevada, USA and maintains its head office in Vancouver, British Columbia, Canada.
On behalf of the Board of Directors:
Benjamin MossmanPresident, CEO and DirectorRise Gold Corp.
For further information, please contact:
RISE GOLD CORP.Suite 650, 669 Howe StreetVancouver, BC V6C 0B4T: 604.260.4577info@risegoldcorp.comwww.risegoldcorp.com
The CSE has not reviewed, approved or disapproved the contents of this news release.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks, uncertainties and assumptions related to certain factors including, without limitation, obtaining all necessary approvals, meeting expenditure and financing requirements, compliance with environmental regulations, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements and information contained in this release. Rise undertakes no obligation to update forward-looking statements or information except as required by law.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45965 |
Is the Expectation of a U.S.-China Trade Deal Overblown?
This article was originally published onETFTrends.com.
Saturday could be a make or break moment for a U.S.-China trade deal as U.S. President Donald Trump and China’s Xi Jinping will meet at the G-20 summit to hopefully iron out their differences on a trade deal that was supposed to happen earlier this year. With the capital markets poised to respond to the upside if a deal is done, is this optimism overblown?
“The rhetoric coming out of China has changed a lot. China is digging in its heels,"saidInvesco’s Kristina Hooper, the firm’s chief global market strategist. “So, unless the U.S. is willing to take minor concessions around narrowing the trade deficit, I don’t think we’re going to see a deal.”
However, who needs a trade deal when the U.S. economy can maintain its current growth rate? It's a question that investors weren't asking in May when the volatility stricken month sent the capital markets in a daze, but Larry Kudlow, director of the National Economic Council, thinks this is no longer the case.
“The U.S. economy is very strong,” Kudlow told CNBC’s “Power Lunch. ” “I think we’re in very good shape and I think we’ll maintain a 3% growth pace this year.”
“That 3% number is not contingent on a China deal that might not be satisfactory for American economic interests,” Kudlow added. “What has changed is lower tax rates, massive deregulation, opening up the energy sector and various trade reforms.”
Kudlow's comments come after the U.S. economy added just 75,000 jobs last month, falling below the expectations of economists polled by Dow Jones who were forecasting a gain of 180,000 jobs. In addition, manufacturing activity in the U.S. grew at its slowest pace last month since October 2016.
Still, this doesn't faze Kudlow's view on the strength of the economy.
“I wouldn’t put much stock in one month’s jobs number. There’s lots of other evidence” of a strong economy, Kudlow added.
As the U.S. economy maintains its pace of growth, assuming that Kudlow's comments come into fruition, investors can look to smart beta options like theVanguard Value Index Fund ETF Shares (VTV) . VTV seeks to track the performance of a benchmark index that measures the investment return of large-capitalization value stocks.
The fund employs an indexing investment approach designed to track the performance of the CRSP US Large Cap Value Index, a broadly diversified index predominantly made up of value stocks of large U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.
For investors looking for continued upside in U.S. equities over international equities, theDirexion FTSE Russell US Over International ETF (RWUI) offers them the ability to benefit not only from domestic U.S. markets potentially performing well, but from their outperformance compared to international markets.
The fund’s long positions include holdings that helped the S&P 500 and Nasdaq Composite reach highs last week like Apple and Microsoft, which just hit $1 trillion in market capitalization.
Short country positions include Japan, which saw a surprise drop in factory data the same time U.S. equities were doing better than expected in first-quarter earnings.
For more market trends, visitETF Trends.
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5 Stocks With Strong Sales Growth Worth Investing in Now
Sales growth is a major financial indicator, which is often neglected by investors while searching for a profitable investment strategy. As the present market scenario is marked by changing customer preferences and habits, evolving needs, demographic changes and an extremely competitive environment, maintaining stable sales growth is vital for any company.Companies are always looking for ways to boost revenues. Notably, revenues are often more closely monitored than earnings when assessing growth potential of a business.It’s worth keeping in mind that in cases when companies incur a loss, albeit temporarily, they are valued on the basis of revenues, as top-line growth (or decline) is an indicator of a company’s future earnings performance.So, the Price-to-Sales (P/S) ratio can turn out to be an appropriate metric for valuing any company’s worth. It remains a major stock selection criterion as management usually has limited opportunities to manipulate revenues, unlike earnings.Sales growth in isolation, however, does not assure success. A consideration of a company’s cash position along with its sales number can be a more dependable strategy. Substantial cash in hand and steady cash flow give a company more flexibility with respect to business decisions and investments.Selecting the Winning StocksIn order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we have selected5-Year Historical Sales Growth (%) greater than X-IndustryandCash Flow more than $500 millionas our main screening parameters.But sales growth and cash strength are not the absolute criteria for selecting stocks. So, we added certain other factors to arrive at a winning strategy.P/S Ratio less than X-Industry:This metric determines the value placed on each dollar of a company’s revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.% Change F1 Sales Estimate Revisions (four weeks) greater than X-Industry:Estimate revisions, better than the industry, are often seen to trigger an increase in stock price.Operating Margin (average last five years) greater than 5%:Operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs — an optimal situation for it.Return on Equity (ROE) greater than 5%:This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means the company is spending wisely and is in all likelihood profitable.Zacks Rank less than or equal to 2:Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment. You can seethe complete list of today’s Zacks #1 Rank stocks here.Here are five of the 13 stocks that qualified the screening:Synchrony FinancialSYF operates as a consumer financial services company. This Stamford, CT-based company’s expected sales growth rate for 2019 is 4.3%, and it carries a Zacks Rank #2.Based in Berwyn, PA,AMETEK, Inc.AME manufactures and sells electronic instruments and electromechanical devices. Expected sales growth rate for 2019 is 8.4%, and the stock carries a Zacks Rank #2.Stifel Financial Corp.SF, headquartered in St. Louis, MO, is a financial services and bank holding company. It’s expected sales growth rate for 2019 is 2.5%, and the stock sports a Zacks Rank #1.Headquartered in Brentwood, TN,Delek US Holdings, Inc.DK is engaged in the integrated downstream energy business. The company’s expected sales growth rate for 2019 is 12.7%, and it carries a Zacks Rank #2.American Water Works Company, Inc.AWK provides water and wastewater services. This Camden, NJ-based company’s sales are expected to increase at the rate of 5.7% for 2019.The stock carries a Zacks Rank #2.Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.Disclosure: Performance information for Zacks’ portfolios and strategies are available at:https://www.zacks.com/performance
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 reportAmerican Water Works Company, Inc. (AWK) : Free Stock Analysis ReportStifel Financial Corporation (SF) : Free Stock Analysis ReportSynchrony Financial (SYF) : Free Stock Analysis ReportDelek US Holdings, Inc. (DK) : Free Stock Analysis ReportAMETEK, Inc. (AME) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Veeva's Vault eTMF Implemented by South Korea's Celltrion
Biopharmaceutical company Celltrion recently implementedVeeva Systems Inc.’s VEEV flagship Veeva Vault eTMF (trial master file) to improve its TMF processes. Notably, this fortifies Veeva’s foothold in the global healthcare IT (HCIT) space.
Following the announcement, shares of Veeva jumped 3.2% to $160.51 at close.
It is encouraging to note that Veeva’s Vault Submissions and Vault Submissions Archive, implemented by Japan’s Sumitomo Dainippon Pharma, recently enabled the company to respond faster to health authority requests. (Read More: Veeva's Submissions & RIM Implemented by Sumitomo Dainippon)
For investors’ notice, South Korea-based Celltrion specializes in research, development and manufacturing of biosimilar and innovative drugs.
About Vault eTMF
Veeva Vault eTMF is designed specifically for the healthcare industry. It enables active TMF management for real-time inspection readiness, visibility and control. Apart from providing easy access across all geographies, it helps replace labor-intensive manual processes with more efficient and accurate electronic processes.
It is part of Veeva’s Vault platform, which is currently in demand. Notably, management at Veeva expects Vault subscription revenues to grow a significant 40% in fiscal 2020.
Other Products
Veeva’s broad product spectrum lends it significant leverage in the HCIT space.
The company’s unique solutions include Veeva Vault, Veeva CRM, Veeva Network and VeevaOpenData. While Veeva Vault is the first cloud-based content management system built specifically for healthcare, Veeva CRM is a customer relationship management platform that offers cloud-based solutions to customers.
Additionally, Veeva Vault Training is designed to simplify role-based training across healthcare organizations. Per management, in fiscal 2020, Veeva aims to release major capabilities within Vault CDMS which are expected to be real game changers for the life sciences industry.
Market Prospects
A ReportLinker article suggests that the global HCIT market is projected to reach $390.7 billion by 2024 from its current worth of $187.6 billion, at a CAGR of 15.8%. The growing volume of patient data, surge in technological know-how and demand for quick and efficient healthcare processes fuel market growth.
Hence, the latest developments have been profitable ones for Veeva.
Price Performance
Buoyed by these solid prospects, this Zacks Rank #2 (Buy) stock has skyrocketed 108.8% compared with the industry’s 14.5% and the S&P 500 index’s 5.9% rise, in a year’s time.
Other Key Picks
A few other top-ranked stocks in the broader medical space are DENTSPLY SIRONA XRAY, Penumbra PEN and CONMED Corporation CNMD, each carrying a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
DENTSPLY’s long-term earnings growth rate is expected to be 11.5%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
CONMED’s long-term earnings growth rate is estimated at 13.3%.
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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 reportVeeva Systems Inc. (VEEV) : Free Stock Analysis ReportPenumbra, Inc. (PEN) : Free Stock Analysis ReportCONMED Corporation (CNMD) : Free Stock Analysis ReportDENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
LyondellBasell Expands Production in Thailand Through HMC JV
LyondellBasell Industries N.V. LYB is expanding footprint in Southeast Asia through its joint venture (JV) — HMC Polymers Company Limited. The JV will construct the fourth Polypropylene production line at its facility in the Map Ta Phut, Thailand. Per the company, the unit will enable HMC to sustain domestic market share and help it address the projected 5-6% annual growth in demand for polymers in the Southeast Asian market. Moreover, the unit is slated to be the most advanced unit globally, which will use the company’s Spherizone production technology. It will have annual production capacity of 250 kilotons. Notably, the Spherizone technology enables the production of highly-differentiated polypropylene products for applications including drainage, sewage and household fresh water pipes. HMC Polymers makes polypropylene especially for China, Southeast Asia, Thailand, Australian and the Indian Subcontinent markets. Shares of LyondellBasell have lost around 21.1% in the past year compared with the industry’s 33.7% decline. Recently, the company provided a preliminary guidance for second-quarter 2019 financial results. For the second quarter, LyondellBasell expects EBITDA to improve roughly 10-20% sequentially to the range of $1,575 million-$1,675 million. Net income is projected between $1,035 million and $1,080 million. Earnings per share (EPS) are projected between $2.79 and $2.91. The company stated that North American integrated ethylene margins improved during the second quarter courtesy of lower feedstock costs. Moreover, oxyfuels are witnessing typical seasonal upside. However, lower margins in the refining business are a headwind. Notably, the company has provided the guidance on a one-time basis related to the tender offer for its ordinary shares that started on Jun 10, 2019 and is slated to expire on Jul 8, 2019. LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Story continues Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the basic materials space are Materion Corporation MTRN, Flexible Solutions International Inc. FSI and AngloGold Ashanti Limited AU. These stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 20.4% in the past year. Flexible Solutions has projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 149.1% in a year’s time. AngloGold has an estimated earnings growth rate of 90.6% for the current year. Its shares have rallied 117.6% in the past year. Will you retire a millionaire? One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.” Click to get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report Flexible Solutions International Inc. (FSI) : Free Stock Analysis Report AngloGold Ashanti Limited (AU) : Free Stock Analysis Report Materion Corporation (MTRN) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Tampa Bay Rays stadium split would be a 'big cost' for players
Major League Baseball’s Tampa Bay Rays are considering a part-time move to Montreal, which could raise players’ tax liabilities. Team owner Stuart Sternberg wants the team to play part of the season in Florida, before – temporarily – moving their home-base across the northern U.S. border for the other part. “It’s a little unprecedented … that a team would actually split the season,” Murray Solomon, a partner at EisnerAmpner – who counts athletes as clients – told FOX Business. The potential move will raise team members’ tax bills, since the franchise will likely have a permanent establishment in Canada – or a taxable presence outside of an organization’s state of residence. “It would be a big cost and they wouldn’t get a full-on tax credit,” Solomon said. U.S.-based players (who are also U.S. residents) pay federal taxes – where the top rate is 37 percent – in addition to state and local taxes, which are much higher for some players than others. A handful of teams are located in states like Florida, Texas and Washington, which charge no income tax. Even athletes who live in states without income taxes, however, are subject to taxes in other states where they play and earn income. Those "jock taxes" are usually calculated by dividing the number of work days spent (practices and games) in the city by the total number of work days. But players based in Canada – who are often U.S. residents – face different tax liabilities. Most athletes will be subject to the maximum rate of 53.53 percent (combined federal and provincial) on income earned while playing there. As U.S. residents, they will also be taxed by the IRS on all income, where the top federal rate is 37 percent. They also may owe state taxes based on where they are a resident (not in Florida, however), and jock taxes for income earned in different cities. Players do receive a credit for the taxes they pay in Canada, however it is not a full credit since Canadian rates are higher, Robert Raiola, director of the sports and entertainment group at PKF O'Connor Davies, told FOX Business. Story continues Allan Jubenville, an expert in cross-border taxation at Kraft Berger LLP, told FOX Business player taxes would largely rely on the way the team decides to operate in Montreal. But, he said, it is likely they would rent a stadium for the 40 games played there – which would mean the team and its players would be taxable on the share of profits earned there. A way around this, Jubenville noted, would be for the Rays to somehow operate in Canada without operating at a location under its control. One possible bright spot is that signing bonuses – which are popular in baseball – are taxed at a lower, 15 percent rate. This offers teams the opportunity to lure new players in with the promise of allocating as much of their earnings as possible into a bonus. Current players, however, have existing contracts structured without knowledge of the potential split-season. The Rays’ current stadium – Tropicana Field – is located in St. Petersburg, Florida. The proposed split wouldn’t occur until about 2024. Despite their successful record, the franchise has been unable to draw large crowds in St. Petersburg. Sternberg has been trying to procure funding for a new stadium in the Tampa Bay area, but has been unsuccessful. CLICK HERE TO GET THE FOX BUSINESS APP The MLB has given the team permission to explore the plan, according to ESPN. The Montreal Expos were the first MLB team located outside of the U.S., but they moved to D.C. in the mid-2000s and became the Nationals. Related Articles How Much is Michael Phelps Worth? Ryan Lochte's Brand Value Sinks Amid Rio Scandal Here's How You Get a Body Like An Olympian |
Hamster thrown away and left to die rescued by binman
Ray Aichinson was called a 'hero' for rescuing the stricken animal (SWNS) A binman has been hailed a 'hero' for rescuing a hamster which had been dumped and left to die in a bin. The distressed animal poked its head out of a discarded coffee cup which fell out of a torn bin bag being removed by cleaner Ray Aichinson in Bristol on Wednesday. Good-hearted refuse worker called to a passersby to help, before running to a nearby pet shop at Filton Abbey Wood Retail Park. The distressed animal was rushed to a nearby Pets At Home, where staff are nursing it back to health ready for adoption. (SWNS) Ray, 57, from Bristol, said: "I was going about emptying the bin and I noticed a rip. "About a second later the hamster came out in a Costa coffee cup. I got it back in the can as I didn't want it running into the road. "To be honest I was terrified when I saw it. I thought it was a rat. I just couldn't believe it. Read more on Yahoo News UK Four in ten of us think our dogs have mental health problems Runaway piglet hitches ride with police officers after escaping Cute cat struggling to find new home because he can't stop sneezing "Thank god others came to help. If you don't want the hamster by all means give it away but not like that. "The poor little thing. It's not the animal's fault. He was right at the bottom so he must have all sorts of stuff dumped on top of him. "I've seen some absolute sh*t in my time but that's got to be one of the strangest things I've come across in a bin. I'm just glad he's alright." (SWNS) Passerby Jess Young, 26, said: "Me and my friend Katie were walking to Asda on our lunch break when the binman called us over. "He looked really shocked and worried and us to take a look in the bin. I didn't know what to expect. "We were a little worried we might find a giant rat or some kind of dead animal - but it was a fluffy white hamster. We were all so shocked. It's not something you see everyday. (SWNS) "The poor thing look very scared and was scratching around trying to get out. We both ran to Pets at Home to get some help while the binman watched over it. Story continues "We asked the vet at Pets at Home for help and she gave us a little box and asked us to scoop him up and bring him back in. "Thank god he noticed. He saved the hamster's life like a hero." ---Watch the latest videos from Yahoo UK--- |
W&T Offshore to Acquire $200M GoM Assets From ExxonMobil
W&T Offshore, Inc.WTI recently agreed to acquire Exxon Mobil Corporation’s XOM stakes in hydrocarbon producing assets located offshore Alabama in the U.S. Gulf of Mexico (GoM). The deal, including related onshore processing facilities for properties in the eastern region of the Gulf of Mexico, is valued at $200 million.
Acquisition Highlights
The transaction encompasses nine offshore fields and an onshore treating facility. Notably, the properties lie adjoining to the company’s existing assets in the region. Total net proved reserves of the properties are estimated at 74 million barrels of oil equivalent (BOE), of which 22% is predicted to be liquids. Markedly, 99% of the reserves are classified as proved developed producing.
Daily net production from acquired assets in first-quarter 2019 was recorded at around 19,800 BOE, of which 25% was liquids. The onshore gas treatment facility is capable of treating 420 million cubic feet of gas per day. The deal is expected to close by Aug 30, 2019.
Funding
W&T Offshore plans to fund the transaction with its cash balance and revolving credit facility. As of Mar 31, 2019, the company had approximately $86.1 million in cash and cash equivalents. It also had $220.9 million remaining under the revolving bank credit facility.
Benefits
On completion of the acquisition, W&T Offshore will become the largest operator in the Mobile Bay region. The deal is expected to benefit the company with significant cost efficiencies, increased scale and synergies. It expects the acquisition of the low-decline assets to drive shareholder value. Also, the properties are expected to generate significant positive free cash flow. The company generated $255 million in free cash flow in the trailing 12 months.
ExxonMobil’s vending of Gulf of Mexico assets is in line with its divestment program of $15 billion. The company is also expected to sell its remaining stakes in Norwegian offshore oil and gas fields. The assets, which include interests in 20 producing fields and several license areas, are estimated to be valued at $3-$4 billion.
Price Performance
W&T Offshore’s shares have significantly outperformed the industry year to date. During the said period, the upstream company has gained 15.6% compared with 3.6% growth of its industry.
Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Approach Resources Inc. AREX and Earthstone Energy, Inc. ESTE, each carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Approach Resources beat estimates thrice in the trailing four quarters, delivering average positive earnings surprise of 12.7%.
Earthstone Energy’s 2019 revenues are estimated to rise 15% year over year.
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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 reportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportW&T Offshore, Inc. (WTI) : Free Stock Analysis ReportApproach Resources Inc. (AREX) : Free Stock Analysis ReportEarthstone Energy, Inc. (ESTE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Jamie Dimon: Donald Trump deserves ‘some’ credit for the strong economy
Jamie Dimon, who has criticized Donald Trump in the past, has been won over by the president when it comes to economic policies like corporate tax cuts and deregulation.
In a new interview, the JPMorgan Chase (JPM) chief executive said Trump deserves “some” credit for the strong economic performance of the U.S. during his first term.
“All my liberal New York friends would never agree with me. But the fact is, we needed tax reform,” says Dimon, who chairs the CEO Roundtable and discussed economic policy with Trump in a meeting at the White House earlier this month.
The tax cut slashed the corporate rate from 35% to 21%, which Dimon credited for making the U.S. more competitive with other countries in efforts to attract industry.
He acknowledged that corporations have put some of their tax savings toward stock buybacks, but he emphasized the importance of a long-term outlook on capital reinvestment.
“Some is going to stock buybacks and all that, but that's capital,” Dimon says. “That's just giving capital back to be reinvested. The real benefit is cumulative reinvestment in the United days over the next 20 years, and that will be substantial.”
“Regulatory reform, we needed. And don't think of banks. I'm not talking about that. I'm talking about the whole American public knows. Mind numbing, paperwork, red tape, and bureaucracy — it's making it harder to build homes, to build bridges, to start businesses.”
Amid a trade spat with China and tensions between the U.S. and Iran, the Dow has stood largely steady near record highs this week. In a tweet on Monday, Trumpsaid, The Dow could be “thousands of points” higher, if the “Fed had gotten it right,” returning to his call for Fed Chair Jerome Powell to cut the central bank’s benchmark interest rate.
Dimon made the comments to Yahoo Finance Editor-in-Chief Andy Serwer in a conversation that aired on Yahoo Finance in an episode of “Influencers with Andy Serwer,” a weekly interview series with leaders in business, politics, and entertainment.
Over the last couple years, Dimon has aired mixed reviews of the Trump presidency.
Dimon appeared to obliquely criticize Trump in April in his annualshareholder letter, which suggested that American political leadership had worsened global instability.
“It’s always difficult to understand the effect of geopolitical uncertainty,” Dimon wrote. “But it is now heightened due to uncertainty around how the United States intends to exercise global Leadership.”
Last September, Dimon criticized Trump at an event in New York City. “I think I could beat Trump... because I'm as tough as he is, I'm smarter than he is,” Dimonsaid. “And by the way, this wealthy New Yorker actually earned his money. It wasn't a gift from daddy.”
He apologized for the comments soon afterward.
Dimon and Trump have nevertheless sustained a working relationship, as Dimon noted when describing a meeting between the two at the White House earlier this month.
“I went with a bunch of other CEOs and we covered a wide range of subjects,” he says. “The Mexico trade deal, China tariffs and trade deal, Huawei, infrastructure, immigration. And that's our job, try to help him do the best he can.”
“When he does things we don't like, we disagree with, we're pretty vocal on that, too,” he adds.
Andy Serwer is editor-in-chief of Yahoo Finance. Follow him on Twitter:@serwer.
Read more:
Jamie Dimon: Donald Trump should 'walk away' if he can't get a good deal with China
Tech CEOs who testify in Washington 'can't win no matter what,' says ServiceNow CEO John Donahoe
Charlie Munger: Trump is not primarily responsible for US economic success |
Bernie Sanders Says He Would ‘Rotate’ Conservative Judges Off the Supreme Court
During the second Democratic primary debate Thursday night, Senator Bernie Sanders (I., Vt.) raised the possibility of rotating justices off of the Supreme Court so that they could be replaced with jurists whose philosophy aligns more closely with his own. Sanders dismissed the idea that Democrats should erode the Conservative majority on the High Court by adding additional justices, arguing instead that the number of justices should remain the same but the composition of the court should change. “I do not believe in packing the court,” Sanders said. “We’ve got a terrible 5-4 majority conservative court right now. But I do believe constitutionally we have the power to rotate judges to other courts and that brings in new blood into the Supreme Court and a majority I hope that will understand that a woman has a right to control her own body and that corporations cannot run the United States of America.” Sanders was referring to the possibility that the High Court’s conservative majority might overturn the landmark 1973 Roe v. Wade decision, which codified abortion as a right. He also noted Democrats’ opposition to the 2010 Citizen’s United v. FEC decision, which held that corporations are entitled to engage in unabridged political speech. The Constitution holds that Supreme Court justices may retain their seat on the court “during good behavior,” which has been widely understood as an effective life term. The former Burlington, Vt. mayor emphasized his support for abortion rights by declaring that he would “never nominate any Supreme Court justice to the Supreme Court unless that justice is 100 percent clear he or she will defend Roe v. Wade .” Sanders’ comments come after President Trump vowed to appoint a third justice to the court if another vacancy opens before the 2020 election. “We have the Senate. We have a great Senate,” Trump told the Hill . “We have great people. If we could get him approved, I would definitely do it. … If there were three days left [before the 2020 election], I’d put somebody up hoping that I could get ’em done in three days, OK?” More from National Review Bernie Sanders Claims There’s ‘No Middle Ground on Abortion,’ Vows to Repeal Hyde Amendment White House on CNN Lawsuit: ‘This Is Just More Grandstanding’ Huckabee Sanders Defends Labor Secretary’s Prosecution of Jeffrey Epstein Case |
Dog bites off part of toddler's nose during visit to rescue centre
Alice Eady was attacked by a dog at a rescue centre (Picture: SWNS) A toddler had part of her nose bitten off when she was attacked by a dog at a rescue centre. Alice Eady, two, was attacked by the dog which was ‘running loose’ when she visited the AA Dog Rescue Centre with her family who were looking to adopt a dog. Her mum Olivia, 22, had turned to fill in some paperwork for their new dog when the dog, described as a small cross-breed, bounded over and jumped on Alice, biting off part of her nose in the attack in June 2018. Alice had part of her nose bitten off in the incident (Picture: SWNS) Olivia, a full-time mum of three, said: "We went there to rehome a dog after we saw one on their website and came across one of their dogs. "When it happened I was filling out paperwork because we had seen a dog we wanted to rehome. READ MORE Police investigate dog walker after pet pooches go missing "There were dogs running around and they had been put away a couple of times and someone put them away. "Someone had let them back out again and one of them approached my daughter and she turned around to say hi and it just jumped at her." Olivia said she turned round to fill in some paperwork when the dog attacked Alice (Picture: SWNS) Olivia said the small dog was running around the rescue centre in Basildon, Essex when it jumped up at Alice and bit her. "I just felt shocked,” she said. “I didn't know how bad it was. My partner Zach was shouting: 'She's missing part of her face.' "We took her outside and there was so much blood I couldn't see how bad it was. "One person threw a towel over her and said she was fine. Someone else came up to us and said she might need a tetanus. "A small triangle of her nose was taken off and the hospital said they were going to clean it up.” Alice was taken to hospital and doctors decided her wounds needed stitching and her parents were later told she may need reconstructive surgery. Olivia said Alice is now frightening of dogs and will cry if she hears barking. Karen James, 49, of Latchingdon, was handed a 12-month community order for being the owner of a dog out of control which caused injury at Chelmsford Crown Court in January. She was also made to pay £250 in compensation, £85 for the victim surcharge and was made subject to a condition of residence. ---Watch the latest videos from Yahoo UK--- View comments |
Shaw Communications (SJR) Q3 Earnings Beat, Revenues Up Y/Y
Shaw Communications Inc.SJR reported third-quarter fiscal 2019 adjusted earnings from continuing operations of 33 cents per share, beating the Zacks Consensus Estimate by 8 cents. However, total revenues of $988 million lagged the consensus mark of $1.02 billion.In Canadian currency, the company reported adjusted earnings of C$0.44 per share against the year-ago quarter’s loss of C$0.20. Total revenues increased 2.7% to C$1.32 billion.During the reported quarter, Shaw Communications acquired 600 MHz spectrum for $492 million. The company also completed the sale of 80.6 million Class B non-voting participating shares of Corus Entertainment for net proceeds of roughly $526 million.Segment DetailsWireline revenues (81.2% of total revenues) increased 1% on a year-over-year basis to C$ 1.08 billion.Consumer revenues were almost unchanged at $925 million. Higher contributions from rate adjustments and growth in Internet revenues were negated by declines in Video, Satellite and Phone subscribers and revenues.
Shaw Communications Inc. Price, Consensus and EPS Surprise
Shaw Communications Inc. price-consensus-eps-surprise-chart | Shaw Communications Inc. Quote
Business revenues increased 6.4% to $150 million, driven by continued demand for the SmartSuite of business products.Wireless service revenues (13.4% of total revenues) rallied 21.9% from the year-ago quarter to $178 million, primarily driven by higher post-paid revenue generating units (RGUs) or subscribers. Improved penetration of Big Gig data plan drove the top line.Average billing per subscriber unit (ABPU) rose 6.2% to $42.30, driven by increased number of customers subscribing to higher service plans and purchasing a device through Freedom Mobile.Wireless Average Revenue per Subscriber Unit (ARPU) increased 2.2% year over year to $38.36.Wireless Equipment revenues (5.5% of total revenues) declined 8.8% year over year to $73 million.Subscriber/RGU DetailsIn the Wireline-Consumer segment, the video cable lost 24,303 subscribers in the three months ended May 31, 2019. Phone lines also lost 21,517 customers.However, Shaw Communications’ wireline Internet business gained 6,647 customers in the quarter. Video satellite customer count also increased 3,134.In the Wireline-Business Network Service segment, the video cable and video satellite lost 4,301 and 626 customers, respectively, in the quarter. Nevertheless, the company gained 5,368 phone customers and 427 Internet customers.In the Wireless segment, Shaw Communications gained 61,300 post-paid subscribers and 800 pre-paid customers. Moreover, wireless post-paid churn improved from 1.36% to 1.18% on a year-over-year basis.Shaw Communications’ wireless service is available in 240 locations through national retail partners — Loblaws’ “The Mobile Shop” and Walmart WMT. Freedom Mobile expects to have more than 650 retail locations operational at the end of 2019.Notably, the company now serves approximately 17 million people or almost half of the Canadian population.Operating DetailsIn third-quarter fiscal 2019, operating income before restructuring costs and amortization decreased 1.5% year over year to $530 million. Operating margin before restructuring costs and amortization contracted 170 basis points (bps) to 40%.Segment wise, wireline operating income decreased 2.1% to $475 million. Wireline segment operating margin shrank 140 bps to 44.2%.Excluding $15 million negative impact related to the licensing payment, wireline operating income before restructuring costs and amortization increased 1% year over year.Wireless operating income increased 3.8% to $55 million, primarily owing to ABPU and RGU growth. Wireless segment operating margin was 21.9%, down 150 bps year over year, primarily due to the negative impact of credit for a retroactive domestic roaming rate adjustment in the year-ago quarter worth $13 million.Notably, almost 350 employees exited the company in the quarter, due to the voluntary departure program (VDP) under the Total Business Transformation (TBT) initiative. This led to operating cost savings of approximately $73 million and capital cost reductions of roughly $25 million.Balance Sheet & Cash Flow DetailsAs of May 31, 2019, Shaw Communications had cash of $1.43 billion compared with $384 million as of Aug 31, 2018. Moreover, undrawn bank credit facility was $1.5 billion.Under the company’s accounts receivable securitization program, an additional $160 million was available to be drawn.Cash balance increased primarily due to the issuance of $1 billion of senior notes. Net proceeds from the senior notes issuance, sale of Corus and other portfolio investments, and disposal of property, plant and equipment were $993 million, $551 million and $46 million, respectively.Moreover, as of May 31, 2019, company’s net debt leverage ratio was 1.8x lower than management’s optimal range of 2-2.5x.In the third quarter, capital expenditures were $280 million compared with $308 million reported in the year-ago quarter.Wireline capital spending decreased roughly $47 million, primarily due to lower investment in network upgrades. However, wireless spending increased almost $19 million year over year due to continued deployment of 700 MHz spectrum and expansion of the wireless network into new markets.Free cash flow was $176 million compared with $167 million in the year-ago quarter. The improvement was primarily owing to lower capital expenditure and cash taxes.GuidanceFor fiscal 2019, Shaw Communications expects operating income before restructuring costs and amortization to grow roughly 6% year over year.Capital investments are expected to be approximately $1.2 billion, while free cash flow is likely to be roughly $550 million.Management expects $135 million of operating and capital savings in fiscal 2019 related to TBT initiatives.Zacks Rank & Key PicksShaw Communications currently has a Zacks Rank #3 (Hold).IMAX IMAX and Roku ROKU are better-ranked stocks in the broader consumer discretionary industry. Both the stocks flaunt a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Long-term earnings growth rate for IMAX and Roku is pegged at 17.5% and 19%, respectively.
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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 reportShaw Communications Inc. (SJR) : Free Stock Analysis ReportIMAX Corporation (IMAX) : Free Stock Analysis ReportWalmart Inc. (WMT) : Free Stock Analysis ReportRoku, Inc. (ROKU) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Motorcar Parts: Fiscal 4Q Earnings Snapshot
TORRANCE, Calif. (AP) _ Motorcar Parts of America Inc. (MPAA) on Friday reported a fiscal fourth-quarter loss of $2.8 million, after reporting a profit in the same period a year earlier. On a per-share basis, the Torrance, California-based company said it had a loss of 15 cents. Earnings, adjusted for one-time gains and costs, were 63 cents per share. The maker of remanufactured vehicle alternators and starters posted revenue of $129.1 million in the period. Its adjusted revenue was $132.7 million. For the year, the company reported a loss of $7.8 million, or 42 cents per share, swinging to a loss in the period. Revenue was reported as $476.3 million. Motorcar Parts expects full-year revenue in the range of $552 million to $562 million. Motorcar Parts shares have increased 11% since the beginning of the year. The stock has fallen 2% in the last 12 months. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MPAA at https://www.zacks.com/ap/MPAA |
Dow 30 Stock Roundup: Nike Earnings Disappoint, Walgreens Boots Margins Drop
The index suffered a disappointing week, declining over three straight trading sessions. Investors remained wary ahead of a crucial meeting between Presidents Trump and Xi at the G-20 summit in Japan. Investor sentiment was further dampened after Fed Chair Jerome Powell indicated that the central bank is yet to decide on whether a rate cut should take place in July.
Last Week’s Performance
The index fell 0.1% last Friday as chip stocks weighed on the markets following U.S. Department of Commerce' ruling in which five more Chinese companies were banned from doing business with the United States. Shares of Disney DIS dipped 1.3% and weighed on the Dow.
However, the index gained 2.4% over last week. Moreover, it is estimated that if the markets extend their month-to-date gains into the last week of this month, the Dow is on track to exhibit its strongest performance for June since 1938.
The Federal Reserve kept the federal fund target rate unchanged while giving a clear indication that the central bank might cut rates at least once this year. The ECB had also given a strong indication of a near-term rate cut a day earlier.
Assurance of pursuing accommodative monetary policies from two major central banks boosted investors’ confidence in equities. Moreover, geopolitical tensions with Iran resulted in a rally in energy stocks.
The DowThisWeek
The index gained 8.41 points on Monday as investors waited for a crucial meeting between Presidents Trump and Xi this week. Moreover, the Iranian crisis intensified as U.S. government imposed fresh sanctions on the oil-rich country. Consequently, gold prices soared as investors shifted to safe-haven precious metals.
The index moved down 0.7% on Tuesday after Powell stated that the central bank remained undecided about reducing the benchmark interest rate. The Dow dipped 179 points to post its worst single-day drop since May 31. Powell stated that the Fed was carefully monitoring the economy in order to avoid lowering interest rates in haste.
The index lost 0.04% on Wednesday as investors remained uncertain of a positive outcome to the G-20 summit. Initial optimism over a near-term trade deal faded after Trump suggested that would be happy to collect tariffs from China if the countries are unable to reach an agreement.
The Dow slipped 10.24 points, or less than 0.1%, marking its third consecutive decline. This is its longest stretch of losses since the five-session decline ended Mar 8. In doing so, it moved against broader markets, which were boosted by bank stocks which gained ahead of the release of Fed stress test results.
ComponentsMovingthe Index
NIKE, Inc.NKE reported quarterly earnings of 62 cents per share, missing the Zacks Consensus Estimate of 66 cents. This compares to earnings of 69 cents per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a negative earnings surprise of 6.06%. A quarter ago, it was expected that this athletic apparel maker would post earnings of 63 cents per share when it actually produced earnings of 68 cents, delivering a positive surprise of 7.94%. This is the first time in four quarters that the company has missed the consensus mark for earnings.
Zacks Rank #3 (Hold) Nike posted revenues of $10.18 billion for the quarter ended May 2019, surpassing the Zacks Consensus Estimate by 0.29%. This compares to year-ago revenues of $9.79 billion. The company has topped revenue estimates over each of the last four quarters. (Read: Nike Misses Q4 Earnings Estimates)
Walgreens Boots Alliance, Inc.WBA reported adjusted earnings per share of $1.47 for third-quarter fiscal 2019, down 3.9% year over year (down 2.4% at constant exchange rate or CER). However, the figure exceeded the Zacks Consensus Estimate by 3.5%.
On a reported basis, net earnings came in at $1 billion, reflecting a 23.6% decline from the prior-year quarter. Reported earnings came in at $1.13, down 16.2% on a year-over-year basis.
This Zacks Rank #4 (Sell) company recorded total sales of $34.59 billion in the third quarter, up 0.7% year over year and 2.9% at constant exchange rate or CER. The top line edged past the Zacks Consensus Estimate of $34.53 billion. Gross profit in the reported quarter fell 4.2% year over year to $7.45 billion. However, gross margin contracted 111 basis points to 21.5%. (Read: Walgreens Boots Q3 Earnings Top Estimates, Margins Dip)
UnitedHealth Group, Inc.UNH might buy the healthcare payments company Equian for nearly $3.2 billion, per multiple sources.
Equian delivers payment integrity solutions through proprietary content, enabling technology and highly responsive customer service. The company analyzes healthcare and insurance data to ensure that payments are fair, accurate, and paid by the correct party — resulting in billions of dollars of savings.
This buyout will allow Zacks Rank #3 UnitedHealth to add a new niche business to its health services segment, Optum, which deals in health management and engagement, health financial services, health IT, benefit operations, care operations and pharmacy care services. Over the years, Optum has grown to contribute an increasing proportion of total revenues. (Read: UnitedHealth to Buy Equian & Foray into Healthcare Payments)
Pfizer Inc.PFE announced that the European Commission has approved its PARP inhibitor, Talzenna (talazoparib) for BRCA-mutated advanced breast cancer in previously-treated patients.
The drug is approved as monotherapy for treating locally advanced or metastatic breast cancer patients with HER2 negative, germline breast cancer susceptibility gene (gBRCA)1/2-mutations. Patients must have received prior treatment with an anthracycline and/or a taxane in the (neo) adjuvant setting or they should be ineligible for treatment with anthracycline/ taxane.
The drug is also approved for use in patients with HR+ breast cancer who have received prior endocrine-based therapy or are unsuitable for endocrine-based therapy. The stock has a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Home Depot, Inc.HD posted first-quarter fiscal 2019 earnings of $2.27 per share, up 9.1% from $2.08 registered a year ago. The bottom line also beat the Zacks Consensus Estimate of $2.16. Home Depot has a Zacks Rank #3.
Net sales grew 5.7% to $26,381 million from $24,947 million in the year-ago quarter and surpassed the Zacks Consensus Estimate of $26,298 million. While the company's overall comps increased 2.5%, comps grew 3% in the United States. (Read: Home Depot Earnings & Sales Surpass Estimates in Q1)
Visa Inc.V recently entered into a definitive agreement to purchase the token services and ticketing businesses — formerly called Bell ID and Ecebs LTD — from Rambus (RMBS). However, the deal is subject to certain closing conditions.
The consolidation of Zacks Rank #3 Visa’s network tokenization abilities with Rambus’ local and account tokenization technology is expected to lead to secure and safe transactions across international commerce. Visa is one of the market-leading companies in tokenization technology that swaps sensitive payment information with a unique identifier, also known as token. (Read: Visa to Acquire Token and Ticketing Businesses From Rambus)
International Business MachinesIBM and Cloudera CLDR have entered into an agreement to built go-to-market initiative, which is aimed at bringing big data and AI solutions to users across the open Apache Hadoop ecosystem. IBM has a Zacks Rank #3.
The initiative is aimed at managing big data workloads across multi-cloud, edge architectures and hybrid on-premises to help customers manage their data and access analytical and decision-making applications. (Read: IBM Partners With Cloudera to Bolster Big Data Solutions)
Performance of the Top 10 Dow Companies
The table given below shows the price movement of the 10 largest components of the Dow, which is a price-weighted index, over the last five days and during the past six months. Over the last five trading days, the Dow has lost nearly 1%.
Next Week’s Outlook
Markets are facing difficult times with hopes of a near-term trade deal fading. While several investors remain hopeful, others are skeptical about the chances of an agreement between the United States and China, given that Trump maintains his belligerent stance. If the two countries make progress at the G-20 summit, markets should resume their ascent.
Today's Best Stocks from Zacks
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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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 reportInternational Business Machines Corporation (IBM) : Free Stock Analysis ReportThe Walt Disney Company (DIS) : Free Stock Analysis ReportPfizer Inc. (PFE) : Free Stock Analysis ReportThe Home Depot, Inc. (HD) : Free Stock Analysis ReportUnitedHealth Group Incorporated (UNH) : Free Stock Analysis ReportWalgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis ReportNIKE, Inc. (NKE) : Free Stock Analysis ReportVisa Inc. (V) : Free Stock Analysis ReportCloudera, Inc. (CLDR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
NEWSMAKER-From wind tunnels to megadeals, the Boeing sales boss facing new MAX storm
By Tim Hepher
PARIS, June 28 (Reuters) - Days after stealing the Paris Airshow with a deal to sell 200 of the grounded 737 MAX, Boeing's sales chief faces fallout from the discovery of a new flaw that will delay the jet's return to service.
Senior vice-president Ihssane Mounir has built a reputation for striking where least expected in the global jet industry, shunning the spotlight.
Last week, he and other Boeing executives scored a major coup in winning British Airways owner IAG - a big Airbus short-haul user - over to an initial $24 billion deal for the 737 MAX.
But the skills which took the 47-year-old from researching wind tunnels to the top of the $150-billion jet market face their toughest test as Boeing struggles to keep its recovery plans intact.
"We have been .. going round the clock to make sure we are working through whatever is needed for customers and the return to service," Mounir said.
The surprise IAG order was the first since the MAX was grounded in March after two fatal crashes, and overshadowed the successful launch of a new Airbus model, the A321XLR.
Analysts say big discounts likely helped win the order from IAG, which on Friday declined comment on the new delay. Critics have accused Mounir of aggressive pricing to win important deals, a claim he denies, saying price is only one tool.
Stealth, teamwork and a long-standing rapport between Mounir and IAG boss Willie Walsh also played a role, sources said.
The two, who were seen chatting at an airline summit three weeks ago, negotiated with only a handful of people in the know. Boeing Commercial CEO Kevin McAllister and Chairman Dennis Muilenburg would be closely involved in the deal to help Boeing's cash cow.
"You have got to build trust first by demonstrating commitment. You have to be disciplined in planning. You can’t shoot from the hip and then pull a plan together – no way," Mounir said recently when asked about selling jets.
"At the start (of my career) I talked a lot; I was selling too much. Later I learned to listen."
Listening is what Mounir, who has struck a humble tone in recent meetings and public appearances, will need to do as Boeing faces a new delay in approval of MAX software until September.
Many airlines want compensation, while some will see a new chance to lower prices.
"A deal like IAG's can even hurt your marketing because you have created the phrase 'I want the same deal as BA'," said an industry official with decades of experience in trading jets.
All this means Mounir is under the spotlight, though he's not afraid of tackling intimidating odds to win deals.
Earlier this year, Mounir was in a battle with Airbus for sales of wide-body jets to IAG and Germany's Lufthansa.
Outgoing Airbus CEO Tom Enders wanted to halt output of its loss-making A380 to hand a clean slate to successor Guillaume Faury and was reluctant to respond to BA's interest in buying the world's largest airliner at low prices, offering only A350s.
In Frankfurt, Lufthansa wanted to shed some A380s to focus on smaller airports. Mounir saw an opportunity to act creatively and build goodwill on both sides, industry sources say.
Shuttling between Frankfurt and London, he explored the idea of buying six A380s from Lufthansa and arranging their transfer to BA in a spectacular trade-in, according to the sources.
Buying Airbus jets is part of Mounir's playbook after he bought China Eastern A340s to make room for new Boeing 777s.
This time, the tactic was not needed as BA went with Boeing and Lufthansa split its order. But in a final twist, Airbus itself bought the A380s and may end up leasing them to BA, the sources said. None of the parties or Mounir agreed to comment.
INDUSTRY POKER
The previously unreported scramble over the soon-to-be-axed A380 illustrates the intensity of aircraft industry poker.
Industry insiders compare Mounir's audacious style to former Airbus sales chief John Leahy, who retired last year after selling jets worth $1.7 trillion. Some even joke that Mounir is a new Leahy, but in the wrong company.
"Part of me sees that as flattering but there is a difference in that I am not a one-man show," Mounir said.
"I have a great team, people who have grown in the business and are very cohesive. We are a pack at the leadership and we are a pack at the sales level."
Experts say Leahy also relied on a team though it is being dispersed amid management changes, leaving uncertainty over the continuity of relationships like IAG. Even so, Airbus commercial head Christian Scherer beat order forecasts for the new A321XLR.
A battle now looms over Air France, which is expected to decide on a narrow-body order soon, although Mounir says the focus remains on getting the MAX flying safely.
Born in Rabat, Mounir was appointed sales chief in 2016 after cutting his teeth in markets from Latin America to China.
At 17, speaking no English, Mounir left Morocco for Wichita, Kansas, where he studied engineering and embraced the Midwest.
"His work ethic was exceptional; he is both analytical and extremely personable," said Scott Miller, his professor at Wichita State University - a combination that drives business in the ruthlessly competitive but clubby world of plane deals.
The young aerodynamicist seemed headed for academia before research on topics like dynamic wind-tunnel testing caught the eye of Boeing in Seattle, where he joined the "aero team" in 1997 and began doing calculations on the 777 mini-jumbo.
Switching to marketing, his first jet sale was to Ethiopian Airlines: the same carrier that suffered the second of two recent crashes leading to the MAX grounding. He attended an Ethiopian vigil in Seattle in March.
While the MAX crisis is top priority, the battle between planemakers to secure relationships with airlines continues. Ex-General Electric engine sales head McAllister - working a double act with Mounir - has helped open new doors for Boeing.
"Genuinely happy for Boeing to get the big order for the MAX. Kevin and (Ihssane) are good guys," AirAsia CEO Tony Fernandes, one of Airbus's largest customers, tweeted last week, before adding: "Aircraft manufacturers should value airlines."
(Reporting by Tim Hepher, Additional reporting by Eric M. Johnson, David Shepardson; Editing by Mark Potter and Jane Merriman) |
Alexion Receives FDA Approval for Label Expansion of Soliris
Alexion Pharmaceuticals, Inc. ALXN announced that the FDA has approved a label expansion of lead drug, Soliris (eculizumab).
The drug is now approved for the treatment of neuromyelitis optica spectrum disorder (NMOSD) in adult patients, who are anti-aquaporin-4 (AQP4) antibody positive. The FDA approved Soliris following an expedited six-month priority review.
The approval was based on comprehensive results from the phase III randomized, double-blind, placebo-controlled PREVENT study. Patients suffering from NMOSD, who were anti-AQP4 antibody positive, were treated with Soliris or placebo. At 48 weeks, 98% of patients treated with the drug were relapse free compared with 63% with placebo.
The drug is under review for the same in Europe and Japan. Soliris has received Orphan Drug designation (ODD) for the treatment of patients with NMOSD in the United States, the EU and Japan.
We remind investors that the drug is already approved in the United States, the EU, Japan and other countries as a treatment for adult patients with paroxysmal nocturnal hemoglobinuria (PNH), and for adults and children with atypical hemolytic uremic syndrome (aHUS). Soliris is also approved for the treatment of adult patients with generalized MG (gMG) in the United States, the EU and Japan. The underlying growth of the drug has been robust. Label expansion of the drug into additional indications should further boost sales.
Alexion’s share price has rallied 29.5% year to date compared with the industry’s growth of 2.7%.
The approval of long-acting C5 complement inhibitor, Ultomiris, has boosted growth prospects significantly for the company. The drug is approved for PNH in the United States. Moreover, the company is working to expand the drug’s label. The FDA recently accepted Alexion’s supplemental biologics license application (sBLA) for Ultomiris under a priority review for the treatment of patients with aHUS to inhibit complement-mediated thrombotic microangiopathy (TMA). The regulatory body has set an action date of Oct 19, 2019.
Meanwhile, companies like Achillion Pharmaceuticals Inc. ACHN and Akari Therapeutics, Plc AKTX are also developing drugs to address PNH.
Zacks Rank & Key Pick
Alexion currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the same space is Gilead Sciences, Inc. GILD, which carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gilead’s earnings estimates have moved up by 24 cents to $6.89 for 2019 over the past 90 days.
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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 reportAlexion Pharmaceuticals, Inc. (ALXN) : Free Stock Analysis ReportAchillion Pharmaceuticals, Inc. (ACHN) : Free Stock Analysis ReportGilead Sciences, Inc. (GILD) : Free Stock Analysis ReportAkari Therapeutics PLC (AKTX) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
US Steel Imports Down on Tariffs, Market Share Falls in May
Much to the respite of American steel makers, U.S. steel imports have dropped roughly 12% year to date – according to the latest report from the American Iron and Steel Institute (“AISI”), an association of North American steel makers. The decline reflects the impact of the 25% tariff on steel imports which the Trump administration had levied last year.Per the AISI, total and finished domestic steel imports are down 11.7% and 18.1% year over year, respectively, year to date (through the first five months of 2019) to roughly 13.58 million net tons and 9.95 million net tons, respectively.In May, total and finished steel imports dropped 38.2% and 9.3% from April to around 2.06 million net tons and 1.85 million net tons, respectively. These figures are based on final U.S. Census Bureau data, the AISI noted.Finished steel import market share was estimated at 19% in May. That is down from 21% clocked in April. Finished steel import market share was estimated at 21% for the first five months of 2019. That is considerably lower than the levels seen in the recent years. Finished steel import market share shot up to as high as 29% in April 2018. However, the punitive trade actions have led to a decline in market share since then.For 2019, annualized total and finished steel imports are expected to decline 3.3% and 7% year over year respectively, per the AISI.The biggest offshore suppliers for the first five months were South Korea with 1,287,000 net tons (down 16% year over year), Japan with 611,000 net tons (down 0.2%), Germany with 517,000 net tons (down 6%), Taiwan with 436,000 net tons (down 7%) and Vietnam with 368,000 net tons (down 5%).Tariffs – A Breather for U.S. Steel MillsThe steep tariffs on steel imports, that were imposed under Section 232 of the Trade Expansion Act of 1962, have provided a much-needed reprieve to American steel makers and instilled optimism in the long-struggling U.S. steel industry.The tariffs have boosted production capacity of U.S. steel producers amid lower imports. They have helped U.S. steel industry capacity break above the important 80% level – the minimum rate required for sustained profitability of the industry.According to the AISI, U.S. steel mills operated at 80.5% of their capacity for the week ending June 22. Capability utilization rate for the week increased from 77.4% a year ago.Improved capacity is also boosting U.S. steel production. Per the World Steel Association ("WSA"), crude steel production increased 6.2% year over year to 37.2 million tons in the United States for the first five months of 2019.U.S. steel companies forged solid earnings last year, thanks largely to the Trump administration’s trade actions. The tariffs provided a boost to U.S. steel prices last year, driving profits and cash flows of American steel makers including United States Steel Corp. X, Nucor Corp. NUE, Steel Dynamics, Inc. STLD and AK Steel Holding Corp. AKS.
Nucor and AK Steel currently have a Zacks Rank #3 (Hold), while both Steel Dynamics and U.S. Steel carry a Zacks Rank #5 (Strong Sell).
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Driven by the trade actions, a number of U.S. steel makers are investing heavily to ramp up production capabilities and upgrade facilities. However, higher production, partly driven by restarted mills, has contributed to the sharp decline in U.S. steel prices this year. The benchmark hot-rolled coil steel prices are now well below their peak level of roughly $920 per short ton (st) reached in July 2018.Meanwhile, the United States, in May 2019, reached a deal to lift steel and aluminum tariffs from Canada and Mexico. These major trade partners have long been pushing the Trump administration to repeal the tariffs.Following the imposition of tariffs in March 2018, President Trump softened his stance by excluding Canada and Mexico from the tariff orders, noting that they represent “a special case”. However, the United States moved ahead with tariffs on steel and aluminium imports from Canada and Mexico after the expiration of temporary exemptions on these countries on Jun 1, 2018.The deal removed a major hurdle to the ratification the new United States-Mexico-Canada Agreement (“USMCA”) to replace the North American Free Trade Agreement (“NAFTA”). Mexico, last week, became the first country to approve the USMCA as its senate ratified the deal by a significant majority. The United States and Canada are yet to pass the trade deal.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportSteel Dynamics, Inc. (STLD) : Free Stock Analysis ReportAK Steel Holding Corporation (AKS) : Free Stock Analysis ReportNucor Corporation (NUE) : Free Stock Analysis ReportUnited States Steel Corporation (X) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
You Won't Believe Bank of America's Massive New Buyback Program
The latest results of the Federal Reserve's Comprehensive Capital Analysis and Review (CCAR), better known as the stress tests, were just released, and most banks received approval for their upcoming capital plan. As a result, most big banks will be increasing their dividends and buyback plans starting in the third quarter.
Bank of America(NYSE: BAC)is one of the standouts. Between dividends and stock buybacks, the bank plans to return a staggering $37 billion to shareholders over the coming year -- $11 billion more than it returned over the past year. However, there was one part of the capital plan thatreallystood out.
Image source: Getty Images.
After the stress test results were announced, Bank of America revealed its capital plan for the coming year, which includes buybacks and dividends. And while shareholders are indeed getting a raise (more on that in a bit), the buyback authorization is the big story.
And I do meanbig. Bank of America announced that it has authorized up to $30.9 billion instock buybacksover the 12-month period from July 2019 through June 2020. Of this amount, $0.9 billion is to offset equity-based compensation awards, but the other $30 billion is simply to buy back shares and reduce the bank's share count.
This represents a 50% increase over last year's $20 billion buyback authorization. Based on the share price as of this writing, $30 billion translates to more than 11% of the current outstanding shares. Let's be perfectly clear. This is averyaggressive buyback plan.
While the sheer size is certainly a surprise, it shouldn't come as a shock to investors that buybacks still make up the bulk of Bank of America's capital return plan. After all, CEO Brian Moynihan has said in the past thatbuybacks are the bank's priority-- not only does the bank's management believe the stock is a good value, but buybacks are a more flexible form of capital return than dividends.
It's important to mention that although the bulk (about 83%) of Bank of America's capital return plan is in the form of buybacks, shareholders will also be getting a dividend increase starting in the third quarter.
The bank's quarterly dividend is rising from $0.15 to $0.18 in the third quarter -- a 20% increase. Based on the share price as of this writing, this translates to a yield of about 2.6%, which is historically high for the bank. In fact, as you can see in the chart below, this will be Bank of America's highest dividend yield in the post-crisis era:
BAC Dividend Yield (TTM)data byYCharts
It's not difficult to see why Bank of America's management is willing to buy back stock at an aggressive pace. In the years since the financial crisis ended, Bank of America has transformed itself into one of the most profitable and efficient banks in its peer group. Its return on assets (1.26%) and return on equity (11.4%) are among the best of the big U.S. banks', as is its efficiency ratio (57%), and all these metrics continue to steadily improve.
Not only is Bank of America a much improved institution, but the market has yet to fully reflect the improvement in its valuation. The bank trades for about 1.13 times book value, well belowJPMorgan Chase(1.54) and even scandal-plaguedWells Fargo(1.21).
So, as a Bank of America shareholder myself, I applaud the bank's efforts to take advantage of its attractive valuation by repurchasing shares in such quantity. It appears the market agrees -- the stock jumped by 3% after the new capital plan was announced.
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Matthew Frankel, CFPowns shares of Bank of America. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Swiss bank Dukascopy developing its own ethereum-based stablecoins
Switzerland-based Dukascopy Bank is developing its own Ethereum stablecoins, asannouncedin a whitepaper published Thursday. The bank will have separate stablecoins each "softly" linked to euro (EUR), U.S. dollar (USD) and Swiss franc (CHF), the bank said, adding that it will add more currencies at later stages upon clients' requests.
The stablecoins will be issued as ERC-20 tokens similar to other stablecoins already on the market. They will open for public testing in about a week on July 3. The minimum size of a transaction is 1,000 tokens, the bank said, as it wants to "protect retail clients from the risks associated with participation in the testing processes.""The main purpose of the introduction of [the stablecoins] is to enhance the use in the blockchain of payment tokens issued by Dukascopy Bank," the whitepaper states. |
HealthEquity (HQY) Set to Acquire WageWorks for $2 Billion
HealthEquity, Inc.HQY, which is known for being largest independent health savings account (HSA) non-bank custodian in the United States, has recently announced its decision to acquire WageWorks, Inc. in an all-cash deal of approximately $2 billion. The acquisition is expected to aid HealthEquity to expedite the market-wide transition to HSAs.For investors’ notice, WageWorks WAGE is known for being a leader in administering HSAs and complementary consumer-directed benefits (CDBs).Following the announcement, shares of HealthEquity rose nearly 5% to $65.27 at close on Jun 27.Financial TermsPer the terms of the deal, HealthEquity will acquire all of the issued and outstanding shares of common stock of WageWorks for $51.35 per share in cash, which reflects the total enterprise value of about $2 billion.In order to finance the buyout, HealthEquity received a debt commitment from Wells Fargo Bank. The acquirer anticipates deleveraging quickly through solid, predictable future cash flow and growth.Financial Impact of the AcquisitionWith this buyout, HealthEquity might realize substantial synergy opportunities and projects around $50 million in annualized, on-going synergies that will be realized within 24 to 36 months of deal completion. This will be realized mainly through custodial and interchange revenue and operating efficiencies.Further, HealthEquity expects to generate substantial incremental revenue synergies over time as the combined client base takes advantage of the complete offering.How is HealthEquity Poised to Benefit?The buyout is set to provide access to more of the thriving HSA market through expansion of its direct distribution to employers and benefits advisors as a single source, premium provider of HSAs and complementary CDBs.The deal will help in developing a large provider of health savings accounts and additional CDBs that will include flexible spending, health reimbursement plans and commuter accounts.Interestingly, the transaction will help in building an end-to-end proprietary platform, which will persuade members to spend prudently while saving for healthcare in retirement.Bright Prospects in HSA MarketAccording to a recent report by benefitspro, based on the projections of Devenir — healthcare account investment expert — the HSA market is anticipated to grow in value from just below $54 billion in 2018 to nearly $75 billion in 2020.Zacks Rank and Share Price PerformanceCurrently, HealthEquity carries a Zacks Rank #2 (Buy). Shares of the company have gained 9.4% year to date, outperforming the industry’s rally of 6.6%. However, the stock fell short of the S&P 500 index’s growth of 14.9%.
Other Key PicksInvestors interested in other top-ranked stocks from the broader medical space are Cardiovascular Systems, Inc. CSII and Haemonetics Corporation HAE, each sporting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Cardiovascular Systems has earnings growth rate for fiscal fourth quarter of 2019 of 33.3%.Haemonetics has a long-term earnings growth rate 13.5%.
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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 reportWageWorks, Inc. (WAGE) : Free Stock Analysis ReportHaemonetics Corporation (HAE) : Free Stock Analysis ReportCardiovascular Systems, Inc. (CSII) : Free Stock Analysis ReportHealthEquity, Inc. (HQY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Verizon (VZ) Launches 5G in Denver, Providence Next in Line
Verizon Communications Inc.VZ recently launched 5G Ultra Wideband network in select locations in Denver. Also, the company will roll out 5G service in certain areas of Providence on Jul 1, 2019. The move is in sync with the company’s strategy to increase the tally of cities under the 5G service coverage to more than 30 in 2019. Notably, the 5G Ultra Wideband network will be accessible to businesses and consumers, using one of four 5G-enabled smartphones — LG V50 ThinQ 5G, Samsung Galaxy S10 5G, moto z3 and z4 powered by 5G moto mod.
It’s worth noting that the company had launched the world’s first commercial broadband 5G service in select markets in October last year. Moreover, in April 2019, it unveiled 5G Ultra Wideband network in certain parts of Chicago and Minneapolis. Notably, Verizon 5G Home service was built on an early version of 5G standard while the 5G Ultra Wideband technology uses the new radio technology and latest device hardware for the delivery of added capabilities to customers. As a matter of fact, this will enable the company to offer download speeds of about 450 Mbps, with highest speeds of more than 1 Gbps with latency less than 30 milliseconds to Denver and Providence customers.
Verizon has systematically invested in 5G technology to gain a foothold in the industry. The company expects to capitalize on the impending 5G boom and outsmart competition. Notably, its focus on upgrading the 5G network will result in the enhancement of 5G Ultra Wideband speed, network performance and latency.
Details of the Service Coverage
In Denver, Verizon’s 5G Ultra Wideband service will be available in areas of Highlands, South of 37th between Tejon and Navajo Streets. The service will also be available all over LoDo and around Coors Field. Apart from these, customers can access the service around Sculpture Park, outside Paramount Theatre, Capitol Hill areas and Northern Sections of The Denver Tech Center, among others.
In Providence, initially, the service will be available for Verizon customers in some parts of College Hill, Federal Hill, Mt. Hope. Also, the service will be offered in locations like Providence College and Rhode Island School of Design.
Notably, customers availing the company’s 5G service and 5G-enabled smartphone will enjoy the faster download speed of 5G Ultra Wideband network while automatically shifting to 4G LTE network once they move outside the 5G coverage area.
Over the past year, the Zacks Rank #2 (Buy) company has returned 13.8% compared with the industry’s growth of 7.1%.
Other Key Picks
Some other top-ranked stocks from the Zacks Computer and Technology sector are United States Cellular Corporation USM, Gogo Inc. GOGO and Alteryx, Inc. AYX. While United States Cellular sports a Zacks Rank #1 (Strong Buy), Gogo and Alteryx carry a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.
United States Cellular surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 79.32%.
Gogo outpaced estimates in each of the preceding four quarters, the average earnings surprise being 38.68%.
Alteryx exceeded estimates in each of the preceding four quarters, the average earnings surprise being 119.55%.
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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 reportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportGogo Inc. (GOGO) : Free Stock Analysis ReportUnited States Cellular Corporation (USM) : Free Stock Analysis ReportAlteryx, Inc. (AYX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
U.S. Futures Up As G-20 Starts, Trump/Xi Meeting In Focus, Banks Lead Gains
Futures are up modestly in early trading as the G-20 meeting gets underway. The meeting, held in Osaka, Japan, is expected to produce trade-related headlines centered on a meeting between Presidents Trump and Xi. While no binding deal is expected there is a high-likelihood a truce in the trade war could be reached. Trump is also expected to speak with Japanese President Shinzo Abe in an effort to smooth trade relations with that nation. The Dow Jones Industrial Average is looking at a gain near 0.25% at the open, the S&P and NASDAQ Composite are not far behind.
The banks are leading in early Friday trading with an average gain near 1.5%. The U.S. Federal Reserve Bank released the results of the latest stress test and all 18 U.S. banks passed. The banks have been raising their dividends and increasing their share repurchase plans with Goldman Sachs and JP Morgan leading the pack. Goldman Sachs increased its dividend nearly 50%, JP Morgan by 12.5%.
Shares of Proctor&Gamble are up 1.5% in early trading after receiving an upgrade. The upgrade, from Goldman Sachs, is to buy from neutral citing growth expectations and consumer strength. On the economic front, Personal Income and Spending data was released at 8:30 AM. Income came in at 0.5%, better than expected, while spending held steady at 0.4% with positive revisions to the previous month. The PCE Price Index shows core inflation rose 1.6% YOY, as expected.
European markets were modestly higher in early Friday trading as investors wait on news from the G-20. The DAX was in the lead at midday with a gain of 0.50% while the FTSE 100 and CAC were both trailing at 0.25% and 0.35% respectively. Shares of Deutsch Bank were among the top movers after its U.S. branch passed the Federal Reserve stress test. Credit Suisse, however, was moving lower because its U.S. arm did not meet up to the Federal Reserve standard.
Shares of entertainment giant Merlin were up more than 14% on news it would be acquired by Lego’s founding family and Blackstone Investment Group. Merlin is the operator of Madame Tussaud’s Wax Works Worldwide.
Asian markets closed lower on Friday as worry over the G-20 meeting capped the market. While there is growing hope a truce will be reached there is no guarantee. One pundit has put forth the U.S./China trade war could linger for up to 15 years even if a truce is reached now. The Australian ASX led with a loss of -0.71% followed closely by the Shanghai Composite’s -0.60% decline. The Japanese Nikkie, Hong Kong Hang Seng, and Korean Kospi all fell about -0.20%.
Thisarticlewas originally posted on FX Empire
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Jushi Merges Finance and Operational Expertise to Target U.S. Market (Plus Exclusive CFN Interview)--CFN Media
Seattle, Washington--(Newsfile Corp. - June 28, 2019) -CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article coveringJushi Holdings Inc.(NEO: JUSH.B) and an exclusive interview with its CEO, Erich Mauff.
The Canadian cannabis market is maturing, and savvy investors are looking south for new opportunities. While there are a growing number of multi-state operators, there are only a handful that combine financial and operational expertise - and even fewer with management teams that have a meaningful stake in the business. Investors may want to look towards these companies for the best growth potential and aligned incentives.
Jushi Holdings Inc.(NEO: JUSH.B) was founded by a former Vice Chairman of Deutsche Bank, a distressed equity hedge fund team and the Founder and former CEO of Organigram Holdings Inc. With more than $20 million of their own capital invested in the business, the team is uniquely qualified to capitalize on the nascent U.S. cannabis industry with incentives that are well-aligned with their shareholders.
CFN Media recently sat down with President Erich Mauff in-studio to discuss the company's unique approach to the market and what sets it apart from other emerging MSOs.
Click here to receive an investor deck and corporate updates
Cannot view this video? Visit:https://www.youtube.com/watch?v=CsuLOdvHhUs
Perfect Blend of Expertise
Jushiwas founded a year and a half ago with four initial founders. Erich Mauff, a former Vice Chairman of Deutsche Bank, teamed up with Jim Cacioppo and Jon Barack, who ran a distressed equity hedge fund focusing on private and public cannabis investments. They were early investors in Dennis Arsenault's Organigram Holdings, which has become one of the preeminent Canadian licensed producers; and brought on Arsenault to the team as the fourth co-founder.
After they began investing in the U.S. market four years ago, the team recognized the legalization trend at the state level in the U.S. market and the public support of some form of legalization. They decided to create their own business in the United States after investing in a number of smaller companies since they possessed the skill sets, management team, capital and desire to succeed.
In his exclusive interview with CFN Media, President Erich Mauff pointed out that there are many similarities between the finance and cannabis industries. They are both highly regulated businesses that require access to capital and a strong background in compliance. The only missing link on the team was operations - and they filled the link with the acquisition of intellectual property of The Clinic Consulting Services™, The Bank™ and The Lab™ and its award-winning operations team including bringing Max Cohen into the C-Suite.
Click here to receive an investor deck and corporate updates
What Sets Jushi Apart?
Jushi has created a well-rounded managementteamwith expertise in finance and operations, which sets it apart from many companies that only have expertise in one of those areas. In addition, the company's management team is well-aligned with shareholders with about $20 million of their own capital invested in the company. These aligned incentives promote prudent capital expenditures and a focus on generating a high return on investment.
With the acquisition of assets including trademarks and intellectual property from The Clinic Consulting Services™, The Bank™ and The Lab™ as well as Max Cohen and several key high-profile members of his team, the company gained access to a team of expert operators who will build best-in-class cultivation, processing, retail processes and facilities. The team is also experienced with acquiring competitive licenses that could help the company enter new and exciting markets. Max Cohen, Founder and CEO of The Clinic, is also a founding member and current board treasurer of the Marijuana Industry Group, and former member of the board of directors for the National Cannabis Industry Organization, a national marijuana lobbying and policy organization.
The company's cannabis footprint is augmented with an interest in hemp-based CBD products. In May, the company announced the opening of the first retail location of its Sound Wellness Holdings subsidiary, SW Retail Stores LLC, doing business as Mend. The full-spectrum CBD store is located in Amherst, NY and provides customers with tinctures, soft gel capsules, topical lotions and other CBD-hemp-derived wellness products.
Click here to receive an investor deck and corporate updates
Looking Ahead
Jushi Holdings Inc.(NEO: JUSH.B) has built an impressive management team to capitalize on the nascent U.S. cannabis industry. With aligned incentives and return on capital a core focus, investors may want to keep an eye on further developments as the company executes its vision of becoming a bold, new, principled leader in the cannabis and hemp industry.
Click here to read the full article:
https://www.cannabisfn.com/jushi-merges-finance-and-operational-expertise-to-target-u-s-market-plus-exclusive-cfn-interview/
About CFN Media
For Visitors and Viewers
CFN Media's Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive content and original programming involving the people, companies and investments shaping the industry.
For Cannabis Businesses & Companies
CFN Media is a leading agency and financial media network dedicated to the cannabis industry. We help private, pre-public and public cannabis companies in the US and Canada attract capital, investors and media attention.
Our powerful digital media and distribution platform conveys a company's message and value proposition directly to accredited and retail investors and national media active in the North American cannabis markets.
Since 2013, CFN Media has enabled the world's preeminent cannabis companies to thrive in the capital and public markets.
Learn how to become a CFN Media client company, brand or entrepreneur:http://www.cannabisfn.com/featuredcompany
Disclaimer
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation:http://www.cannabisfn.com/legal-disclaimer/
Contact
CFN MediaFrank Lane206-369-7050flane@cannabisfn.com
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Will OPEC Surprise Investors With Deeper Cut in Oil Volumes?
Before making the next move, energy investors and traders are eagerly waiting for OPEC’s Vienna meet, which is among the prime events to determine the direction of oil prices.
Notably, the ongoing tensions between the United States and Iran are raising possibilities of a further tightening of global crude supply. Hence, a probable extension of the OPEC’s prior production cut agreement should lend further support to oil prices, favoring crude explorers and producers.
Vienna Meet Motive
During Jul 1-2, OPEC will meet with its allies, led by Russia, in Vienna, Austria. In the meeting OPEC+ (members and some non-members of OPEC) will probably discuss about the feasibility of extending the oil production cut.
From Jan 1 through June, the OPEC+ was in an agreement of cutting daily production of oil by 1.2 million barrels. The agreement is near expiry and the countries are set to meet for a fresh deal that will probably extend the production cut, per most analysts.
Deeper Cut in the Cards?
Thamer Ghadhban, oil minister of Iraq, revealed that at least OPEC+ will choose to extend the level of oil output curb.
Notably, Ghadhban hinted that since the level of cut, agreed earlier, was not significant enough in stabilizing crude oversupply, a deeper curb is on the cards. Per Reuters, OPEC member Algeria gestured that the cut could be deeper by roughly 600,000 barrel per day.
Will it Favor Oil Majors?
To a great extent, the outcome of the OPEC meet is dependent on what Trump and Jinping decide at the G-20 summit in Japan on Saturday, per media sources. Sources added that the market is not expecting the two big economies to reach a trade deal. In fact, if the United States and China fail to come to a conclusion, Washington could slap Beijing with tariffs on remaining imports, as hinted by Trump earlier.
Hence, if the trade war escalates and hurts global demand for crude further, OPEC members might consider a deeper crude production cut to support oil price. This will back big oil producers like Exxon Mobil Corporation (XOM), Royal Dutch Shell plc RDS.A, BP plc BP, ConocoPhillips COP and Chevron Corporation CVX. While ExxonMobil, Royal Dutch Shell, BP and ConocoPhillips carry a Zacks Rank #3 (Hold), Chevron sports a Zacks Rank #1 (Strong Buy).You can seethe complete list of today’s Zacks #1 Rank stocks here.
On the whole, the future movement of crude price is heavily dependent on Trump and Jinping’s meet, determining the commodity’s demand. Meanwhile, OPEC’s Vienna meet will give shape to the supply side.
Today's Best Stocks from Zacks
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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 reportRoyal Dutch Shell PLC (RDS.A) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportBP p.l.c. (BP) : Free Stock Analysis ReportConocoPhillips (COP) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
KB Home (KBH) Catches Eye: Stock Jumps 7.9%
KB HomeKBH was a big mover last session, as the company saw its shares rise nearly 8% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This stock, which remained volatile and traded within the range of $23.53–$26.55 in the past one-month time frame, witnessed a sharp increase yesterday.The company has seen no changes when it comes to estimate revision over the past few weeks, while the Zacks Consensus Estimate for the current quarter has also remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.KB Home currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
KB Home Price
KB Home price | KB Home Quote
Investors interested in the Building Products - Home Builders industry may consider a better-ranked stock like Meritage Homes Corporation MTH, which carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Is KBH going up? Or down? Predict to see what others think:Up or Down
Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportKB Home (KBH) : Free Stock Analysis ReportMeritage Corporation (MTH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Why Trump Used a Megan Rapinoe Tweet to Go Off on the NBA
On Wednesday morning, President Trump fired off a tweet thread that was ostensibly about U.S. soccer star Megan Rapinoe , who's currently competing in the 2019 FIFA Women's World Cup in France. https://twitter.com/realDonaldTrump/status/1143892326286266368 Rapinoe had been asked if she'd attend the traditional White House coronation that comes after an American sports team wins a championship, and she forcefully responded that she would not. Trump answered back with the usual bluster, but his tweet also contained a peculiar, unrelated nugget: that the NBA dropped the term "owner." The origin of that random aside has a bit of a winding history. On June 3, TMZ reported an "exclusive" that multiple NBA teams had decided against using the term "owner." The story did not garner much attention at the time, because, as TMZ noted, "there's no real pressure coming from the NBA to change [the] titles." A few weeks later, TMZ successfully located NBA Commissioner Adam Silver in New York City, and asked him to comment on their scoop. He too noted that there's no hard-and-fast rule in place, and that he didn't want to "overreact to the term," but added that the league office had more or less moved away from "owner" in favor of "governor." He cited Draymond Green as a player who had publicly identified the obvious issue with the "owner" verbiage—in a league of predominantly black American players, it's demeaning to refer to your boss as an "owner." (The NBA, which is touted for its relative ideological diversity compared to other sports leagues, is made up of an almost exclusively white governorship group, with Michael Jordan and the Charlotte Hornets being a notable exception.) On Tuesday, Carlson interviewed Lawrence Jones, the editor in chief of campusreform.com, a self-described "conservative watchdog to the nation’s higher education system." After Carlson led off with a (sarcastic) assertion that NBA players are oppressed, Jones weighed in on what he deemed to be a PC police problem. "Many of these players have their own businesses, and they call themselves the owners," he noted, which is true in a literal sense, though it ignores the racial disparity present in the NBA between players and upper management. Jones additionally pointed out that, "this is not a slave term, this is just a business term." Trump, who has deferred to Carlson's judgment on topics as serious as starting a war in Iran , seems to have caught the segment—and it's not surprising that a piece on sports ownership would resonate with the president. Story continues Trump has long had ambitions to be a sports team owner himself. In the '80s, he bought the New Jersey Generals of the now-deceased United States Football League, a venture that blew up in spectacular fashion. More recently, in 2014, Trump bid on the NFL's Buffalo Bills, eventually losing out to fracking billionaire Terry Pegula. Trump later tweeted a classic actually I'm happy it didn't work out response. There may have been more to that episode: In February 2019, Michael Cohen testified that Trump allegedly inflated his net value during the bidding process in order to obtain a loan from Deutsche Bank. Since launching his presidential campaign, Trump has used sports ownership as a culture-war cudgel, like when he famously said at a 2017 Alabama rally for then-Senate hopeful Luther Strange: “Wouldn’t you love to see one of these NFL owners, when somebody disrespects our flag, to say, ‘Get that son of a bitch off the field right now. Out! He’s fired. He’s fired!’” In the immediate aftermath, some high-level NFL executives and "owners" called out Trump's comments as "divisive." But by May 2018, they had succumbed to his rhetoric, unanimously approving a rule that every player on the field had to “stand and show respect for the flag and the anthem,” or risk their team being fined. The idea was so unpopular that it was killed not even two months later. Rapinoe, the original target of Trump's NBA-adjacent tweets, fits in with a cross-section of players across different sports who are vocal about Trump and forced patriotism. She has been protesting during the national anthem for years. She began kneeling in solidarity with the NFL's Colin Kaepernick, and after that practice was banned by the U.S. Soccer Federation, she switched to standing in silence without her hand on her heart. Her teammate, Ali Krieger, responded to Trump's Twitter criticisms by referencing his history of alleged sexual misconduct , as well as his administration's anti-LGBTQ, anti-immigrant positions: https://twitter.com/alikrieger/status/1143941893086162945 Regardless of their official titles, or the president's complaints, ownership groups still wield quite a bit of power—after the Toronto Raptors beat the Golden State Warriors in the NBA Finals, Raptors "owner" Larry Tanenbaum was presented with, and hoisted, the championship trophy before any of the players on the team did. In that same Finals series, Mark Stevens, a billionaire with an ownership stake in the Warriors, shoved Raptors point guard Kyle Lowry. His punishment was a one-year suspension from attending games, and a $500,000 fine that's the equivalent of $14.78 for someone making $68,000 a year . There was no word from the president on the incident. Originally Appeared on GQ |
What Is Credit Card Churning?
Churning is the practice of signing up for new credit cards repeatedly just to earn the cards' sign-up bonuses. Without a doubt, "card churners" take earning rewards to the next level. A novice might be tempted to get a new card for extra airline miles, but an expert strategically applies for credit cards that deliver top-tier rewards. Credit card churning involves high reward -- you could earn enough points to travel the world for free -- and high risk. Here's a primer on how it's done to decide if credit card churning could be right for you. What Is Credit Card Churning? Churners identify a credit card or group of cards with rewards they want, plus sign-up bonuses. Once churners spend enough to receive their bonuses and rewards, they stop using the card or cards. Churning as a way to amass miles is popular because redeeming miles and points for free travel provides a great value. But sometimes churners will open credit cards for cash back offers. [ Read: Best Rewards Credit Cards. ] Some churners open and close dozens of cards on an ongoing basis to earn sign-up bonuses. "There is a small group of consumers, often people who identify as 'travel hackers' or 'card hackers,' who are far more aggressive and strategic about the process," says Lauren Anastasio, wealth advisor at SoFi, a personal finance company. "Some cardholders may churn five, 10 or even more cards in one year." Churners can close cards with annual fees before they are due. Or you could call the card issuer and ask for a "product change." This lets you switch to a different card but keep your account open, which may be better for your credit score. What Are the Benefits of Credit Card Churning? Generally, credit card churners are looking for ways to travel for free using points and miles . "Since I own my own business, I was able to leverage credit card bonuses and spending in order to propose to my fiancee in Maui," says Jason Veirs, experienced credit card churner and president of Insurance Experts Solutions. "We were able to book our flights and hotel on points, and the travel expenses for our seven-day trip only ended up costing around $500 between resort fees and a rental car." Story continues Although rewards on everyday purchases can add up quickly, churners tend to focus on accumulating sign-up bonuses. Say you want to churn credit cards for miles, and you spot an offer for 50,000 miles if you spend $4,000 within three months of opening a card. That's 12.5 miles per dollar, plus the miles you earn as you meet the initial minimum purchase requirement. Generally, you can expect to earn between 2 and 5 miles per dollar on bonus categories. You may wind up with several rewards cards, so you can maximize your rewards with every credit card purchase you make. Often, the cards provide perks. A co-branded airline credit card may let you and your travel companions check bags for free. "Credit cards have really enriched our travel experiences while letting us take in the many nuances of a particular travel destination," Veirs says. By saving on travel costs, he was able to spend money on excursions and meals without going over his budget. [ Read: Best Travel Rewards Credit Cards. ] What Are the Dangers of Credit Card Churning? Credit card churning can be a fun and profitable hobby, but it isn't for everyone. Here are the primary pitfalls: You risk overspending. "If you find yourself buying things you don't need in order to rack up charges on a new credit card, you are missing the whole point of maximizing your dollars and need to reevaluate whether the credit card churning game is really something you want to play," Anastasio says. When you apply for a credit card because of a sign-up bonus, be sure you can meet the purchase requirement without blowing your budget. While Veirs says he enjoys racking up credit card bonuses, he also ensures he can pay off his balance every month. "You need to treat the credit card like you would cash and budget accordingly. Just because you have the piece of plastic with a $30,000 credit line doesn't mean that you should abuse it," Veirs says. You could hurt your credit score. Opening a credit card can affect your credit score in several ways. Applying for a card generally results in a hard inquiry , which may lead to a minor and temporary drop in your credit score, according to myFICO, the consumer division of FICO score inventor Fair Isaac. Multiple hard inquiries can cause bigger drops than a single hard inquiry. And inquiries can hurt you more if you have few accounts or a short credit history. A drop in your score could cause difficulties if you're trying to get a mortgage or another type of loan. A new card will also lower the average age of your accounts, which can hurt your score. But the most harmful effects could come from maxing out new cards, making late payments or defaulting on the debt and having your account sent to collections. You may pay more in fees and interest than you earn in rewards. If you fail to stay organized, you could miss payment due dates, end up rolling over balances, and owe interest and penalties. Handling multiple credit cards, each with its own limit, rules, fees and due date, can be difficult. Not only do you need to track balances and due dates but also account anniversaries, progress toward sign-up bonuses and when you owe annual fees. Some churners use personal finance or budgeting apps, such as Mint or Personal Capital, to keep track of their accounts, due dates and balances. You can also use AwardWallet to monitor your points and miles balances in different loyalty programs and to alert you if your points or miles are due to expire. [ Read: Best Sign-up Bonus Credit Cards. ] Credit Card Churning Best Practices If you're planning to churn credit cards, these tips can help: Set a goal and start small. Don't get in over your head. Begin with two or three cards, and plan to meet the minimum purchase requirement without overspending. Eventually, you might feel comfortable adding more cards to your rotation, but meeting the spending requirement for each one can be challenging. Still, it's not entirely impossible, says Andrew Herrig, a personal finance blogger at Wealthy Nickel and a credit card churner. "We have gotten creative in hitting the spending thresholds in ways most people may not have thought of," Herrig says. "One easy way is that you can prepay utility, cellphone or subscription bills with your credit card, often months in advance, which can really add up." But if you have a history of racking up credit card debt , proceed with caution. Starting with just one card to see if you can control your expenses might be a better option than juggling two or three cards. Read the fine print. As credit card churning has become more popular, card issuers have enacted policies that can make earning rewards more difficult. "For example, Chase has a 5/24 rule that you can't get more than five cards with them within a 24-month period," Herrig says. Other issuers may not allow you to meet an initial purchase requirement by buying prepaid cards, gift cards or traveler's checks, or by making balance transfers or cash advances. And some card issuers may even revoke your bonus if you close or downgrade your account within 12 months of opening it. More From US News & World Report What Credit Score Do I Need to Get a Credit Card? How Often Can You Open New Credit Card Accounts? Are You Missing Out on Lucrative Credit Card Rewards? |
NovoCure (NVCR) Jumps: Stock Rises 7.1%
NovoCure LimitedNVCR was a big mover last session, as the company saw its shares rise more than 7% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This continues the recent uptrend for the company as the stock is now up 7.4% in the past one-month time frame.The company has seen no changes when it comes to estimate revision over the past few weeks, while the Zacks Consensus Estimate for the current quarter has also remained unchanged. The recent price action is encouraging though, so make sure to keep a close watch on this firm in the near future.NovoCure currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
NovoCure Limited Price
NovoCure Limited price | NovoCure Limited Quote
Investors interested in the Medical Services industry may consider HealthEquity, Inc. HQY, which has a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Is NVCR going up? Or down? Predict to see what others think: Up or DownToday's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportHealthEquity, Inc. (HQY) : Free Stock Analysis ReportNovoCure Limited (NVCR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
ExxonMobil (XOM) to Explore for Hydrocarbons Offshore Crete
Exxon Mobil CorporationXOM and TOTAL S.A. TOT recently received offshore oil and gas exploration licenses from financially-struggling Greece. The licenses will allow the companies to engage in hydrocarbon exploration offshore Crete in Greece’s Exclusive Economic Zone.
Notably, Hellenic Petroleum will create a consortium with ExxonMobil and TOTAL, and explore for oil and gas in two offshore blocks located at the south of Crete. Greek Prime Minister, Alexis Tsipras expects to get a clear view regarding the reserves under the blocks within two-four years of exploration.
The Crete offshore area spanning 40,000 square kilometres, which includes the licensed regions in discussion, is yet to be explored for oil and gas. With the current financial situation of the country, it expects to mirror the success of Israel and Cyprus. Greece’s prime minister Alexis Tsipras said, “Today, Greece is not only a country that is a critical energy hub in the Eastern Mediterranean and the Balkans but is also starting to implement a plan that ultimately aims to turn it into an energy-producing country.”
The plan was criticised by environmentalists as the project can affect marine life habitats. However, the prime minister promised strict environmental safeguards for the project to keep marine life intact.
The move, however, came at a time when political tension in the area is rising. In the Eastern Mediterranean region, natural gas resources off the coast of Cyprus are a cause of strained relations involving Cypriots and Turkey.
Price Performance
ExxonMobil has gained 11.2% year to date compared with 9.1% growth of the industry it belongs to.
Stocks to Consider
ExxonMobil currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Chevron Corporation CVX and Earthstone Energy, Inc. ESTE. While Chevron sports a Zacks Rank #1 (Strong Buy), Earthstone has a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Chevron’s second-quarter 2019 earnings per share are estimated to rise 14% year over year.
Earthstone Energy’s 2019 revenues are estimated to rise 15% year over year.
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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 reportTOTAL S.A. (TOT) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportEarthstone Energy, Inc. (ESTE) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Blockchain Association Takes Over Kik’s ‘Defend Crypto’ Crowdfunding Effort
Canada-based social media company Kik is relinquishing control of its legal defense crowdfunding campaign to the Blockchain Association in an effort to broaden the initiative’s reach.
Kikand theBlockchain Associationannounced Friday that the D.C.-basedlobbyist groupwould be taking over “Defend Crypto,” the crowdfunding initiative that Kik previously launched to raise funds for its ongoing battle with the U.S. Securities and Exchange Commission.
While Kik will retain the $5 million it initially contributed to the fund, all of the other donations – some $1.9 million – will be set aside for other crypto projects facing similar lawsuits. What’s more, the company intends to donate $500,000 in kin tokens to help support the fund.
Related:SEC Begins Accepting Public Comments on ETF Backed by Bitcoin and T-Bills
The move represents a significant departure from the effort’s initial goal. According to the campaign’s website, all donations were supposed tosolely support Kik’s legal efforts.
“Once the case against Kik is resolved, all remaining funds, including any portion of the initial $5 [million] contribution by Kik, will be allocated to a nonprofit organization to be used for other initiatives that help with innovation in our industry,” the website read as of June 24.
However, in its announcement on Friday, Kik wrote “if we are going to Defend Crypto, we need to do it as a collective.”
The Blockchain Association was chosen to helm the initiative due to its advocacy work for the crypto industry, Kik spokesperson Tanner Philp told CoinDesk.
Related:Howey Schmowey – The Real Answer is to Update Securities Regulations
“[The Blockchain Association] will be in the best position to objectively allocate the resources to the highest impact initiatives,” he wrote in an email.
Kristin Smith, who currently heads the association, said in a statement that the initiative would continue to focus on legal battles for crypto startups, saying:
“As stewards of the Defend Crypto fund, we will establish a structure to participate in legal proceedings that will have an outsize, positive impact on the entire crypto ecosystem.”
Smith added that “regulatory clarity is sorely needed for companies and consumers in the crypto economy,” possibly referencing Kik’s argument that the SEC’s complaint against the startup will add regulatory clarity for crypto projects.
“We think we’ll be able to leverage this fund to constructively engage with the courts,” she said.
Kik’s legal battle with the SEC began last year, when the U.S. securities regulator told the company that it may have violated federal law when it conducted a token sale in 2017.
Kik disagreed with that assessment, and later took the unprecedented step of making both the initial Wells Notice – the SEC’s argument on how Kik violated federal law – and its own responsepublic.
Ted Livingston, the CEO of the company, told CoinDesk last month that it had alreadyspent some $5 milliongoing back and forth with the SEC since its initial Wells Response, but the regulator ultimately went forward with the lawsuit, filing a complaint against Kikearlier this month.
According to thecomplaint, Kik saw an initial coin offering as a last-minute effort to generate revenue, and promotional statements by Livingston during the sale supported the argument that the kin token is a security.
Attorneys told CoinDesk that the SEC caseappears strong, though several warned that initial complaints are supposed to, and do not necessarily indicate the outcome of a case.
Kik has yet to formally respond to the complaint, though general counsel Eileen Lyon arguedin a statementthat the SEC’s case is based on “flawed legal theory,” and Livingston’s statements indicating that kin’s price would rise was not a promise of profit.
The shift for Defend Crypto stems from the number of other projects that are facing their own legal cases, as per Friday’s announcement.
Kik’s crowdfunding push began a conversation about the SEC’s efforts to police the ICO space, it said.
“The SEC has been very effective in keeping everyone in different corners of the room, making it feel like their challenges with the SEC are unique to them, like they are going it alone,” the announcement reads. “We know how this feels – which is why we decided to make our Wells Notice and Wells Response public in January – we knew we couldn’t be the only ones. What we didn’t anticipate was just how many have been affected by the cloud of uncertainty.”
Philp told CoinDesk that a number of individual projects reached out to Kik privately, describing their own “challenges with the SEC.”
Several of these projects may also need financial or legal support, he said, declining to name any examples.
“They have asked to remain confidential for now, which is part of the overarching challenge,” he said, adding:
“Everyone is scared to come out publicly for fear of what that might mean for their project going forward, but the only way we can make progress is if we work together. Our hope is that this fund will give projects the resources and confidence to be part of the discussion.”
For now, Smith said, the immediate goal for the initiative is to “establish a structure and governance policies.”
Kik’s announcement anticipates that there are “many more” cases to come, though not every project will be well-funded. Companies that do not have the resources to fight the SEC in court “have no choice but to fold,” which would be “setting a dangerous precedent for the industry and killing innovation.”
Supporting the initiative are Messari, Arrington Capital and ShapeShift. These companies “have taken an active role” in helping guide the fund, and were part of the shift in Defend Crypto’s mission, according to the announcement.
Ted Livingstonimage courtesy of Kin Ecosystem Foundation
• Stonewalled by FINRA, Up to 40 Crypto Securities Wait in Limbo for Launch
• Kik vs SEC – The Lawyers Speak |
Russia's Mechel plans to raise coal output to 20-25 mln T in 2019 - Ifax
MOSCOW, June 28 (Reuters) - Russian coal and steel producer Mechel plans to increase its coal output in 2019 by 6%-9% to between 20 and 25 million tonnes, Interfax news agency cited the company's chief executive as saying at its annual shareholder meeting on Friday.
Mechel, which has been in talks with some of its lenders over the past couple of years, also expects to complete debt restructuring negotiations with Russian state banks before the end of the year, Interfax cited Oleg Korzhov as saying. (Reporting by Andrey Kuzmin; Writing by Polina Ivanova; Editing by Andrey Ostroukh) |
European heatwave: Hottest day ever recorded in France
A temperature of 44 degrees Celsius was recorded in Carpentras, south-eastern France (GETTY) France's all-time temperature record has been broken after 44.3C (111.7F) was reached in the southern town of Carpentras. The country has been gripped by a Saharan heatwave drifting across Europe. It is the first time in history that France has raised its heat alert to red, with Spain, Italy and Switzerland also issuing red warnings. Paris has seen temperatures rise above 34 degrees Celsius in the last few days (GETTY) Temperatures have risen over the last week, with temperatures of 42C recorded in the city of Montepellier in the south. The national weather agency has predicted temperatures could rise even more, hitting up to 45C (113F) in southern counties such as Herault, Gard, Vaucluse and Bouches-du-Rhone. Three people have died in France so far this week in the south of the country. One person on Monday and two on Tuesday died after diving into the sea to cool off, causing death by ‘cold shock’. Read more: Three dead in European 'hell' heatwave as Britain braces for 31c temps How long will the heatwave last? German police pull over naked man on moped who says ‘it’s too hot’ Earlier on Friday, French Prime Minister Edouard Philippe said 4,000 schools had been shut due to the extreme heat. He tweeted: "We allowed school principles and mayors to close schools when they saw it as the right thing to do.” In Paris, charity organisations are patrolling the streets to provide water to homeless people and local authorities have organised air-conditioned places where they can seek shelter. The French Red Cross assist people suffering in the extreme heat (GETTY) On Thursday, Meteo France meteorologist France Christelle Robert said: “A heatwave of this amplitude so early in the year, in June, is exceptional. “We should expect more intense and frequent heatwaves with climate change, because it will accentuate the extremes.” Meanwhile, Spain is battling a large wildfire in Catalonia, the worst in the region for 20 years. Watch the latest videos from Yahoo UK |
GMS Stock Rises 5.2% Despite Q4 Earnings and Sales Miss
GMS Inc.GMS reported fourth-quarter fiscal 2019 results, wherein earnings and sales lagged the respective Zacks Consensus Estimate. The company reported adjusted earnings of 68 cents per share, missing the consensus mark of 71 cents by 4.2%. Also, net sales of $780.15 million missed the consensus estimate of $785 million by 0.7%.Nonetheless, the top and bottom lines increased 22.7% and 21.4%, respectively, on a year-over-year basis. The upside was mainly attributable to greater commercial activity, pricing improvement and acquisition synergies. Consequently, shares of the leading interior building products distributor gained more than 5% post the earnings release.During the reported quarter, GMS achieved 7% organic sales growth, owing to higher volumes and pricing improvement across the board.
GMS Inc. Price, Consensus and EPS Surprise
GMS Inc. price-consensus-eps-surprise-chart | GMS Inc. Quote
Product Line DiscussionSales inWallboard(accounting for 41.3% of total net sales) increased 15.1% year over year to $322.3 million. Organically, sales grew 3.8% from the prior-year quarter. The positive trend was driven by acquisitions, higher organic volumes and pricing.Ceilings’ (14.4%) sales improved 17.4% on a year-over-year basis to $112.2 million, driven by increased commercial business, efficient pricing system and benefits derived from acquisitions. Organic sales also grew 13.7% from the year-ago period.Sales inSteel Framing(16%) totaled $124.5 million, up 16.3% from the prior-year period. Moreover, sales grew 8.3% from the year-ago quarter on an organic basis, backed by the above-mentioned tailwinds.Sales ofOther Products(28.3%) increased 44.4% year over year to $221.1 million and 7.8% on an organic basis.Operating HighlightsGross profit of $256.9 million improved 24.8% year over year, mainly as a result of higher sales. Gross margin also grew 50 basis points (bps) year over year to 32.4%, owing to positive contributions from the Titan acquisition, and favorable price-cost dynamics and mix. Notably, the metric surged 50 bps sequentially.Adjusted selling, general and administrative expenses, as a percentage of net sales, improved 100 bps to 23.6% in the quarter. Of this improvement, 20 bps was attributed to cost-reduction initiatives undertaken by the company and 80 bps was contributed by the shift of certain equipment operating leases to capital leases.Adjusted EBITDA margin grew 150 bps to 9.4% in the quarter.Liquidity & Cash FlowAs of Apr 30, 2019, GMS had cash and cash equivalents of $47.3 million compared with $74.3 million on Jan 31, 2019. Total debt at the end of fiscal fourth quarter amounted to $1.14 billion compared with $1.23 billion on Jan 31, 2019.During the reported quarter, the company repurchased 287,000 shares of its common stock for nearly $5 million. As of Apr 30, 2019, it had approximately $58.5 million shares left under the previously announced $75-million share repurchase program.Fiscal 2019 HighlightsThe company reported fiscal 2019 adjusted earnings per share of $2.80, up 39.3% from the year-ago level of $2.01. Net sales also increased 24.1% year over year to $2.51 billion. Moreover, organic sales grew 7.1% year over year.Adjusted EBITDA margins also grew 160 bps from a year ago to 9.5%.Strategic ActionsDuring the fiscal fourth quarter, GMS opened four greenfield locations in Carrollton, TX, Fredericksburg, VA, Harrisburg, PA and Portland, ME. Notably, it completed three acquisitions and opened eight greenfield locations in fiscal 2019.Zacks Rank & Key PicksCurrently, GMS carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Retail-Wholesale sector are BMC Stock Holdings, Inc. BMCH, Builders FirstSource, Inc. BLDR and RH RH. While BMC currently sports a Zacks Rank #1 (Strong Buy), both Builders FirstSource and Quanta Services carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.BMC surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average being 39.5%.Builders FirstSource topped the consensus mark in three of the trailing four quarters, with the average positive surprise being 7.9%.RH outpaced the consensus estimate in the preceding four quarters, with the average being 20.1%.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportBuilders FirstSource, Inc. (BLDR) : Free Stock Analysis ReportGMS Inc. (GMS) : Free Stock Analysis ReportBMC Stock Holdings, Inc. (BMCH) : Free Stock Analysis ReportRestoration Hardware Holdings Inc. (RH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Q&A-Prospect of lower U.S. rates prompts a re-look at holdings -Denker Capital
By Aaron Saldanha
June 28 (Reuters) - Money markets have already priced in U.S. Federal Reserve cuts on borrowing costs in the world's top economy this year, prompting some investors to re-assess their holdings of U.S. banks, as they expect narrower margins in lending, while being selective with their holdings of European financials.
Kokkie Kooyman, director and portfolio manager, global financials, Denker Capital told the Reuters Global Markets Forum on Thursday he likes quality names such as ING Groep and JPMorgan Chase & Co and sees opportunities in emerging market financials in India and Indonesia.
South Africa-based Denker Capital manages roughly about $700 million in assets across its funds.
The following are excerpts from the Reuters Global Markets Forum chat. To join the forum, click here: http://tmsnrt.rs/2jTnFk8
Question: JPMorgan Chase & Co is the Denker Global Financial Fund's top holding, as of the end of May. Considering the expectations of Fed easing, would you trim exposure to U.S. banks?
Answer: We've been debating that point extensively. JP is one of the best banks in the world with a great team and very good CEO and it has shown how it's come through various slow-downs and the 2008 crisis very well. Jamie Dimon (CEO) has focused on building a fortress balance sheet.
So yes - the lower interest rate environment is not ideal - but not only financials will face lower earnings. So JP will come out best (our opinion) and take more market share and it's still very attractively valued. ROE of 14%-15% and P/NAV of 1.35.
Q: Do you think it's a good time to consider switching from U.S. financials to European financials?
A: If you look at relative price graphs and valuation differentials, the trade seems on but we think European financials will only really re-rate once the market sees prospects of higher growth and interest rates - until then European banks could go the same route as Japanese banks.
Q: How do you see Indian financials?
A: India is undergoing a liquidity crisis at the moment due to a few real estate developers falling over - and share prices have come down and suddenly India's potential growth rate is being questioned. But even if India gets back to a 5% GDP growth rate in 2020, financials are well placed.
But again the emphasis is on quality - players like HDFC companies such as HDFC Bank are preferable - not the public sector banks which are being forced to consolidate ... putting two pieces of rubbish together, you get a bigger piece of rubbish.
This interview was conducted in the Reuters Global Markets Forum, a chatroom hosted on the Refinitiv Eikon platform.
(Reporting by Aaron Saldanha in Bengaluru; Editing by Bernard Orr) |
Irish Crypto Exchange Bitsane Vanishes While Exit Scamming 246,000 Users
Following Coinroom, Bitsane is the second crypto exchange that has pulled an exit scam in the past three months, leaving up to 246,000 users as victims of fraud.
Image source:Facebook
Bitsane victims reported toForbesthat users had problems withdrawing cryptocurrencies from the exchange in May. In response to the issue, the operators of the platform sent out emails claiming that withdrawals had been “temporarily disabled due to technical reasons.”
On June 17, Bitsane users had to realize that the operators of the crypto exchange had lied to them as the platform had suddenly disappeared. Bitsane even deleted its Twitter and Facebook accounts, and users were unable to reach the exchange’s support team via email.
Anarchiveof the vanished cryptocurrency exchange shows that it had 246,000 users and 25,000 daily transactions. While the operators reported these stats – so there’s a reason to suspect they are not entirely accurate –,CoinMarketCapshows that Bitsane had a daily trading volume of $7.2 million on March 31.
“I believe a major international crime has been committed. I have lost $7000 USD! What I know follows, there are many victims, please help. THEY HAVE STOLEN ALL OUR MONEY,” a victim of the cryptocurrency exchange stated on Facebook.
The victims of the Bitsane exit scam have formed groups onTelegramandFacebookto share their stories and discuss their options to reclaim their funds. Most users in these groups have reported that they had lost up to $5,000 in the exit scam, but one US customer stated to Forbes that he had $150,000 worth of bitcoin and XRP in his exchange account that he was unable to withdraw.
Read the full story on CCN.com. |
The Latest: Putin invites Trump to visit Russia next year
OSAKA, Japan (AP) — The Latest on the Group of 20 summit meetings in Osaka, Japan (all times local): 9 p.m. The Kremlin says Russian President Vladimir Putin has invited U.S. President Donald Trump to visit next year and he responded "positively." Putin's spokesman, Dmitry Peskov, told reporters that Putin invited Trump to attend festivities marking the 75th anniversary of the World War II victory. Peskov said Trump reacted positively to the invitation at their meeting Friday on the sidelines of the Group of 20 summit in Osaka, noting that he will wait for an official invitation. Peskov added that it will be sent shortly. He said the presidents also talked about ways to improve economic ties and had a detailed discussion about arms control issues. He said they also talked about Syria and mentioned Turkey in that context. Peskov said China also figured in the discussion, but didn't provide further details. Leaders of the G-20 nations are gathered in Osaka, Japan, for a two-day summit beginning Friday. ___ 7:05 p.m. China's foreign ministry has expressed hope Washington can "meet China halfway" as President Xi Jinping prepares to meet President Donald Trump amid a costly tariff fight over trade and technology. Investors are hoping for a repeat of Trump and Xi's December agreement to postpone new tariff hikes and other action while they tried to negotiate a settlement. But analysts caution any truce at this Group of 20 meeting of major economies is likely to be temporary because of the array of disputes that separate the two sides. The two sides are in a stalemate after 11 rounds of talks. Beijing has said any agreement must be balanced and rejects U.S. complaints it steals or pressures companies to hand over technology. Foreign ministry spokesman Geng Shuang says: "We hope that the U.S. can meet China halfway and work together with us to promote a positive result from the meeting. This is in the interest of both countries and also meets the common expectation of the international community." Story continues ___ 5:35 p.m. Russian President Vladimir Putin has met with outgoing British Prime Minister Theresa May, the first such top-level encounter in years. Relations between Russia and Britain have been in tatters over the March 4, 2018, nerve agent attack on double agent Sergei Skripal and his daughter Yulia in the city of Salisbury. They spent weeks in critical condition, but recovered. Britain has accused Russia of poisoning them with the nerve agent Novichok, accusations Moscow has denied. The poisoning has triggered a major diplomatic crisis, with Russia and the West expelling hundreds of envoys. May said before the summit that Britain will push for the two Russian military intelligence officers accused of involvement in the attack to be brought to justice. In an interview with the Financial Times before the G-20 summit, Putin insisted that Russia had nothing to do with the poisoning. He argued that bilateral ties are far more important than "the fuss about spies not worth five copecks." Putin and May last met in 2016. ___ 5:10 p.m. Leaders of Russia, India and China have urged joint action against unilateralism. Meeting Friday on the sidelines of the Group of 20 summit in Osaka, Russian President Vladimir Putin, Chinese leader Xi Jinping and Indian Prime Minister Narendra Modi talked about ways to bolster ties between their nations. Putin emphasized that the three countries agree on the need to rely on international law, respect national sovereignty and refrain from interference in internal affairs of other nations. He added that they have held meetings of foreign ministers and top security officials to coordinate action against terrorism, drug trafficking and other challenges. Putin noted that Russia, China and India firmly oppose protectionism, unilateral actions and unlawful sanctions. The encounter follows a meeting of the BRICS grouping that also includes Brazil and South Africa. ___ 4:20 p.m. Japan's Prime Minister Shinzo Abe has cautioned Chinese President Xi Jinping over Beijing's human rights records, raising concerns about recent turmoil in Hong Kong. Japan's Foreign Ministry said Friday that Abe told Xi it is important for "a free and open Hong Kong to prosper under 'one country, two systems' policy." The two leaders met Thursday in Osaka ahead of the two-day Group of 20 Summit. Officials said Abe raised concern about Hong Kong, where hundreds of thousands protested proposed legislation that would allow some criminal suspects to be extradited for trial in mainland China. Abe also reminded Xi of the importance of guaranteeing freedom, human rights, rule of law and other universal values. ___ 3:25 p.m. U.N. Secretary-General Antonio Guterres is appealing for a de-escalation of tensions in the Gulf and the preservation of the 2015 nuclear deal with Iran. He told reporters on the sidelines of the G20 summit in Japan on Friday that the deal was a factor of stability and that "it will be very important to preserve it." He says avoiding a confrontation in the Gulf was a major concern for key players attending the G-20. U.S. President Donald Trump is to discuss Iran with other world leaders. He pulled the U.S. out of the deal last year and imposed crippling sanctions on Iran. Iran is now poised to surpass a key uranium stockpile threshold, threatening the accord it reached in 2015 with world powers aimed at curbing its nuclear activity. ___ 1:50 p.m. Pro-democracy activists are urging Group of 20 leaders at the summit in Osaka to pressure Chinese President Xi Jinping to improve the human rights of his people, including minorities and those in Hong Kong. Three activists from China, Hong Kong and southern Mongolia are urging the leaders to use trade and the economy as leverage to pressure China to address human rights problems. They also plan to stage rallies in Osaka, where Xi will be attending the June 28-29 summit. Xi will hold talks Saturday with U.S. President Donald Trump. Andy Chan Ho-tin from Hong Kong called for sanctions on both pro-Beijing leaders in his region and China to protect freedom and democracy in Hong Kong. Thousands protested in Hong Kong recently to oppose a bill that would allow extradition of criminal suspects to mainland. ___ 1:15 p.m. Japanese Prime Minister Shinzo Abe has urged fellow world leaders to cooperate in responding to intensifying trade and political tensions to help fend off threats to world economic growth and stability. Abe made the comments at the outset of a Group of 20 summit in Osaka, where the leaders planned to first focus their discussions Friday on the world economy and trade. He says a "free and open" economy is crucial for peace and prosperity and retaliatory moves in trade conflicts would not benefit any country. The two-day summit began with an extra meeting devoted to endorsing Abe's "Osaka Track" effort to promote rules for e-commerce to help control cybersecurity risks and promote growth. Chinese President Xi Jinping and U.S. President Donald Trump joined Abe in outlining the concerns posed by the so-called "digital economy." ___ 11:20 a.m. The U.N. chief says the world can't afford the conflict as tensions rise between Iran and the United States. U.N. Secretary-General Antonio Guterres said on the sidelines of the two-day G-20 leaders' summit Friday that it is "essential to deescalate the situation" and avoid confrontation. His comments come as Iran is poised to surpass a key uranium stockpile threshold, threatening an accord it reached in 2015 with world powers aimed at curbing its nuclear activity. The U.S. has imposed new sanctions on Iran to cripple its economy, sent an aircraft carrier to the region and deployed more troops alongside the tens of thousands already there. ___ 11 a.m. Leaders of Brazil, Russia, India, China and South Africa have called for joint efforts to stabilize international trade and oppose protectionism. The leaders of BRICS grouping, who met Friday in Osaka on the sidelines of the Group of 20 summit, also called for strengthening the role of the World Trade Organization. In an apparent reference to trade wars with the United States, Chinese President Xi Jinping criticized "unilateral and protectionist measures that ruin the global order" and urged the BRICS countries to strengthen their joint efforts. Russian President Vladimir Putin, whose country has been hurt by an array of the U.S. and the EU sanctions, said at the meeting that "the international trade has suffered from protectionism, politically motivated restrictions and barriers." Putin also emphasized the need for BRICS nations to take coordinated action to help block sources of funding for terrorist groups. He pointed at Russia's campaign in Syria, emphasizing the need to rebuild the country and encourage the refugees to return. ___ 10:50 a.m. European Union President Donald Tusk has blasted a reported comment by Russian President Vladimir Putin suggesting that liberalism is obsolete. Tusk said Friday that such comments suggest a belief that "freedoms are obsolete, that the rule of law is obsolete and that human rights are obsolete." Putin said in an interview published by the newspaper Financial Times that "The liberal idea has become obsolete. It has come into conflict with the interests of the overwhelming majority of the population." Both leaders are in Osaka for a G-20 summit. Tusk's statement to reporters said, "We are here as Europeans also to firmly and unequivocally defend and promote liberal democracy." He said, "What I find really obsolete are: authoritarianism, personality cults, the rule of oligarchs. Even if sometimes they may seem effective." ___ 8 a.m. The U.N. chief is urging G-20 leaders to take action on equitable and stable reforms to strengthen the global financial safety net and increase the global economy's resilience. U.N. Secretary-General Antonio Guterres said in a letter to leaders gathered in Osaka, Japan, for the two-day summit beginning Friday that while the world has made progress fixing some big problems it's not happening fast enough or shared by all countries. Guterres said that while there are good plans and vision, what's needed are "accelerated actions, not more deliberations." He says that fast and equal economic growth should be constructed so that people who live in "the 'rust belts' of the world are not left behind." |
Is Diodes (DIOD) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Diodes (DIOD). DIOD is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DIOD has a P/S ratio of 1.43. This compares to its industry's average P/S of 1.97.
Finally, investors will want to recognize that DIOD has a P/CF ratio of 7.94. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DIOD's P/CF compares to its industry's average P/CF of 18.83. Over the past year, DIOD's P/CF has been as high as 16.47 and as low as 7.16, with a median of 10.54.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Diodes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DIOD feels like a great value stock at the moment.
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 reportDiodes Incorporated (DIOD) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Should Value Investors Buy Molina (MOH) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Molina (MOH). MOH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.17, which compares to its industry's average of 14.58. Over the past year, MOH's Forward P/E has been as high as 26.16 and as low as 11.43, with a median of 14.61.
We also note that MOH holds a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MOH's industry currently sports an average PEG of 1.09. Over the past 52 weeks, MOH's PEG has been as high as 1.71 and as low as 0.91, with a median of 1.22.
Finally, investors should note that MOH has a P/CF ratio of 9.96. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.44. Over the past 52 weeks, MOH's P/CF has been as high as 67.91 and as low as -23.23, with a median of 11.70.
These are just a handful of the figures considered in Molina's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MOH is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportMolina Healthcare, Inc (MOH) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is Crescent Point Energy (CPG) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Crescent Point Energy (CPG). CPG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.06, which compares to its industry's average of 10.98. Over the past year, CPG's Forward P/E has been as high as 25.41 and as low as -16.13, with a median of 13.45.
Another valuation metric that we should highlight is CPG's P/B ratio of 0.38. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CPG's current P/B looks attractive when compared to its industry's average P/B of 0.95. Over the past 12 months, CPG's P/B has been as high as 0.62 and as low as 0.22, with a median of 0.38.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CPG has a P/S ratio of 0.64. This compares to its industry's average P/S of 0.87.
Finally, investors will want to recognize that CPG has a P/CF ratio of 0.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 3.48. Within the past 12 months, CPG's P/CF has been as high as 4.60 and as low as 0.65, with a median of 1.80.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Crescent Point Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPG feels like a great value stock at the moment.
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 reportCrescent Point Energy Corporation (CPG) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Should Value Investors Buy China Distance (DL) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
China Distance (DL) is a stock many investors are watching right now. DL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.23, while its industry has an average P/E of 23.70. Over the last 12 months, DL's Forward P/E has been as high as 9.24 and as low as 8.09, with a median of 8.54.
We also note that DL holds a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DL's PEG compares to its industry's average PEG of 0.80. Over the last 12 months, DL's PEG has been as high as 0.62 and as low as 0.54, with a median of 0.57.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DL has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that China Distance is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DL feels like a great value stock at the moment.
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 reportChina Distance Education Holdings Limited (DL) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Are Investors Undervaluing HP (HPQ) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is HP (HPQ). HPQ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.40. This compares to its industry's average Forward P/E of 15.64. Over the past year, HPQ's Forward P/E has been as high as 12.60 and as low as 8.40, with a median of 10.46.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HPQ has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.03.
Finally, investors should note that HPQ has a P/CF ratio of 7.04. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.33. Over the past year, HPQ's P/CF has been as high as 8.52 and as low as 5.29, with a median of 6.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that HP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPQ feels like a great value stock at the moment.
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 reportHP Inc. (HPQ) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Should Value Investors Buy Conagra Brands (CAG) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Conagra Brands (CAG). CAG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.27, which compares to its industry's average of 16.80. Over the past year, CAG's Forward P/E has been as high as 16.78 and as low as 9.29, with a median of 13.86.
We also note that CAG holds a PEG ratio of 1.90. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CAG's industry currently sports an average PEG of 2.48. Over the past 52 weeks, CAG's PEG has been as high as 2.17 and as low as 1.16, with a median of 1.90.
Another notable valuation metric for CAG is its P/B ratio of 1.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.63. CAG's P/B has been as high as 4.22 and as low as 1.39, with a median of 1.99, over the past year.
These are just a handful of the figures considered in Conagra Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CAG is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportConagra Brands Inc. (CAG) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is Amdocs (DOX) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Amdocs (DOX) is a stock many investors are watching right now. DOX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.79. This compares to its industry's average Forward P/E of 19.20. Over the past 52 weeks, DOX's Forward P/E has been as high as 16.30 and as low as 12.21, with a median of 13.93.
DOX is also sporting a PEG ratio of 1.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DOX's industry currently sports an average PEG of 1.84. Over the last 12 months, DOX's PEG has been as high as 2.05 and as low as 1.44, with a median of 1.64.
Finally, investors will want to recognize that DOX has a P/CF ratio of 15.01. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 41.54. Over the past year, DOX's P/CF has been as high as 16.75 and as low as 12.93, with a median of 14.84.
These are just a handful of the figures considered in Amdocs's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DOX is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmdocs Limited (DOX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Hertz (HTZ) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Hertz (HTZ). HTZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.11, while its industry has an average P/E of 17.06. Over the past 52 weeks, HTZ's Forward P/E has been as high as 1,265.90 and as low as -275.67, with a median of 20.12.
Investors should also recognize that HTZ has a P/B ratio of 1.35. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.60. Over the past 12 months, HTZ's P/B has been as high as 1.71 and as low as 0.89, with a median of 1.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hertz is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HTZ feels like a great value stock at the moment.
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 reportHertz Global Holdings, Inc (HTZ) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Is Quanta Services (PWR) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Quanta Services (PWR). PWR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.24, which compares to its industry's average of 13.17. PWR's Forward P/E has been as high as 11.48 and as low as 8.48, with a median of 10.59, all within the past year.
Another valuation metric that we should highlight is PWR's P/B ratio of 1.44. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. PWR's current P/B looks attractive when compared to its industry's average P/B of 1.71. Over the past year, PWR's P/B has been as high as 1.55 and as low as 1.09, with a median of 1.38.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PWR has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.6.
Finally, investors should note that PWR has a P/CF ratio of 8.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.81. Within the past 12 months, PWR's P/CF has been as high as 10.52 and as low as 7.26, with a median of 9.29.
These are only a few of the key metrics included in Quanta Services's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PWR looks like an impressive value stock at the moment.
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 reportQuanta Services, Inc. (PWR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Delek US Holdings (DK) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Delek US Holdings (DK). DK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.69, while its industry has an average P/E of 10.25. DK's Forward P/E has been as high as 9.86 and as low as 5.16, with a median of 7.30, all within the past year.
Investors should also note that DK holds a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DK's PEG compares to its industry's average PEG of 1.38. Over the past 52 weeks, DK's PEG has been as high as 0.99 and as low as 0.52, with a median of 0.73.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DK has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.36.
Finally, investors will want to recognize that DK has a P/CF ratio of 4.08. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.66. DK's P/CF has been as high as 9.94 and as low as 3.26, with a median of 5.30, all within the past year.
These are only a few of the key metrics included in Delek US Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DK looks like an impressive value stock at the moment.
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 reportDelek US Holdings, Inc. (DK) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
StockBeat - Banks Climb After Fed Signs off on Dividend, Buyback Plans
Investing.com - Wall Street banks climbed Friday as investors cheered news the Federal Reserve had given the lenders the nod to dole out large sums of cash to shareholders.
The Fed on Thursday said the banks had passed the Comprehensive Capital Analysis and Review (stress test), paving the way for the banks to go ahead with plans to ramp up dividends and stock buybacks.
JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), and Goldman Sachs (NYSE:GS) were on track to end the day 3% higher, with the Financial Select Sector SPDR ETF (NYSE:XLF) up more than 1%.
JPMorgan revealed plans to buy back $29.4 billion in shares this cycle and raise its quarterly dividend 12.5% to 90 cents a share, taking the total cash returned to shareholders to $40 billion over the next year.
Citigroup said it would target up to $17.1 billion in stock buybacks and bolster its dividend by 13.3% to 51 cents a share.
Wells Fargo (NYSE:WFC) will look to buy back $23.1 billion in stock in the next year and increase its dividend 13.3% to 51 cents a share.
The two-part stress tests, the first of which was carried out last week, are administered annually by the Federal Reserve and aim to test whether a large bank is sufficiently capitalized to survive a sudden economic crisis.
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AbbVie Rises 3% |
Jennifer Lopez’s Tour Outfits Travel on Their Own Bus & Cost How Much?!
It’s no surprise that Jennifer Lopez’s closet is the stuff of dreams. But when we spoke to her stylist Rob Zangardi exclusively, we learned that the 49-year-old “El Anillo” singer’s wardrobe is even bigger than we ever imagined. Speaking with PureWow in honor of J.Lo’s brand-new “It’s My Party” tour, Zangardi revealed that she’s not exactly a light packer. Zangardi explained, “We have almost 200 costumes in the show,” so she’s not really to blame. He went on to run through some of the logistics of making her look Jenny-from-the-Block-level fly, day in and day out: “Because the shows are back to back, there is such quick turnaround for preparing the looks for the next show,” he says. “We also have to do maintenance on the looks, such as re-rhinestoning pieces. The wardrobe for the whole show, including Jennifer and the dancers, usually travels on one to two buses of its own.” That’s right, people. Lopez’s tour closet is a literal truckload. So how much does a truckload of clothing cost? According to Us Weekly , “over $74,000.” Designer Michael Costello went on to explain to the mag that one tiger dress “had 9,644 Swarovski crystals, sewn on by hand all over the dress…It took eight days to make. The estimated value of that dress, including labor, is $14,000.” Zangardi explained the process to PureWow, saying, “We received a set list, and then Jen and I exchanged ideas. Next, we asked designers to do sketches for us.” For this specific tour, Zangardi says the costumes came together over the course of two and a half months, with almost 90 costume adjustments needed in the weeks leading up to the first show. But even with the intense time constraints, for Zangardi working with Lopez is “a dream.” “She has such a dynamic, multifaceted career. We have the opportunity to dress her for everything from the Oscars, which is quintessential red carpet, and then we have some room to take more fashion risks with events like the Grammys and the VMAs,” he said. So far, J.Lo had worn everything from Balenciaga to Zuhair Murad on her tour. We can’t wait to see what else is on that bus. Tickets for J.Lo’s current tour are available via LiveNation now . RELATED : J.Lo Enlists Joanna Gaines for a Real-Life Remodel of Her $6.6 Million Mansion View comments |
Moderate U.S. consumer spending, inflation support rate cut
By Lucia Mutikani
WASHINGTON (Reuters) - U.S. consumer spending increased moderately in May and prices rose slightly, pointing to slowing economic growth and benign inflation pressures, which could give the Federal Reserve ammunition to cut interest rates next month.
The report from the Commerce Department on Friday came just a week after the Fed signaled it could ease monetary policy as early as July, citing low inflation as well as growing risks to the economy from an escalation in trade tensions between the United States and China. Inflation has undershot the U.S. central bank's 2 percent target this year.
"Below-target inflation is a concern for the Fed, but not the primary reason they are leaning toward cutting interest rates," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania. "The Fed has an easing bias because of growth concerns, and low inflation has only helped lower the bar for even further rate cuts."
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.4% as households boosted purchases of motor vehicles and spent more at restaurants and on hotel accommodation. Data for April was revised up to show consumer spending advancing 0.6% instead of the previously reported 0.3 percent gain.
Last month's increase in spending was in line with economists' expectations.
Consumer prices as measured by the personal consumption expenditures (PCE) price index rose 0.2% last month as a 0.3%rebound in food prices was tempered by a 0.6% decline in the cost of gasoline and other energy goods. The PCE price index increased 0.3% in April.
In the 12 months through May, the PCE price index increased 1.5%, slowing from April's 1.6% advance.
Excluding the volatile food and energy components, the PCE price index climbed 0.2% last month after a similar gain in April. That kept the annual increase in the so-called core PCE price index at 1.6% for a second straight month in May.
The core PCE index is the Fed's preferred inflation measure. It hit the central bank's 2% target in March 2018 for the first time since April 2012. The Fed last week downgraded its inflation projection for 2019 to 1.5% from the 1.8% projected in March. Fed Chairman Jerome Powell at his press conference did not refer to weak inflation as "transient."
The low inflation projections were supported by a survey on Friday from the University of Michigan showing consumers this month expected slower price increases over the next 12 months compared to May. Consumers' inflation expectations over a five-year period fell to 2.3% from 2.6% last month.
The dollar <.DXY> dipped against a basket of currencies. U.S. Treasury yields rose slightly as investors awaited crucial trade talks on Saturday between Washington and Beijing. Stocks on Wall Street were trading marginally higher.
LESS MOMENTUM
When adjusted for inflation, consumer spending rose 0.2% in May. This so-called real consumer spending increased by the same margin in April. The moderate increase in real spending in the last two months suggested consumer spending was struggling to accelerate after slowing sharply in the first quarter.
"It still looks like spending has firmed noticeably relative to the weak run around the turn of the year, but we now see less recent momentum than we had been expecting," said Daniel Silver, an economist at JP Morgan in New York.
Consumer spending increased at a 0.9% annualized rate in the January-March quarter, the slowest in a year. The overall economy grew at a 3.1% rate last quarter, boosted by exports, an accumulation of inventory and government spending on highways and defense.
The tepid real consumer spending gain added to weak May reports on manufacturing, trade, job growth and the housing market in suggesting a deceleration in economic activity.
The manufacturing sector's deepening troubles were underscored by a third report on Friday showing a measure of factory activity in the Midwest tumbled into contraction territory this month for the first time since January 2017.
The MNI Chicago Business Barometer decreased by 4.5 points to a reading of 49.7 in June. A reading below 50 indicates contraction in the region's manufacturing. It added to other weak regional manufacturing surveys, including from the New York Fed, Richmond Fed and Philadelphia Fed.
"The evidence that renewed uncertainties about trade and tariff policies and the impact on global supply chains and capital spending is adversely affecting manufacturing activity continues to build with this report," said John Ryding, chief economist at RDQ Economics in New York.
The economy is shifting into lower gear as last year's stimulus from massive tax cuts and increased government spending fades. Following the consumer spending data, the Atlanta Fed slashed its second-quarter gross domestic product forecast by four-tenths of a percentage point to a 1.5% rate.
Last month, spending on goods increased 0.5%, with outlays on long-lasting manufactured goods such as motor vehicles surging 1.7%. Spending on services gained 0.4%.
Consumer spending in May was supported by a 0.5% rise in personal income, which matched April's increase. Wages gained 0.2% after increasing 0.3% in April. Savings rose to $985.4 billion in May from $975.0 billion in the prior month.
"Decent income gains are supporting continued consumer spending, but weakness in wage increases remains a threat to growth," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.
(Reporting by Lucia Mutikani; Editing by Paul Simao) |
Zambian court withdraws order blocking disposal of Vedanta unit assets
LUSAKA, June 28 (Reuters) - A Zambian court on Friday withdrew an earlier order blocking a provisional liquidator at Vedanta's Konkola Copper Mines (KCM) business from disposing of KCM's assets or making arrangements with its creditors.
"It is hereby ordered that the ex-parte order to stay some of the powers of the provisional liquidator dated June 26, 2019, be and is hereby vacated forthwith," the Zambian High Court said in a ruling seen by Reuters. (Reporting by Chris Mfula; Writing by Alexander Winning; Editing by Jan Harvey) |
3 Legg Mason Mutual Funds to Buy Now
Legg Mason has 33 years of experience in providing financial services throughout the world. With nearly $758 billion of assets under management (as of Mar 31, 2019), Legg Mason, along with its nine investment affiliates, currently manages more than 90 mutual funds across a wide range of categories, including both equity and fixed-income funds. Most of the company’s clients (67%) are domiciled in the United States. This Baltimore-based company serves both individual and institutional investors with around 3,300 employees in 39 offices throughout the globe.
Below we share with you three top-ranked Legg Mason mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
ClearBridge Small Cap ALMSAX seeks growth of capital. LMSAX invests the lion's share of its assets in common stocks and other equity securities of small-cap companies and other investments, which are expected to have similar kind of economic characteristics. ClearBridge Small Cap A has three-year annualized returns of 10.8%.
Brian Lund is one of the fund managers of LMSAX since 2013.
ClearBridge Large Cap Value Fund Class A2LIVVX aims for long-term capital appreciation. The fund invests the majority of its assets in equity securities or other investments with similar economic characteristics, of companies that have large market capitalizations. LIVVX has three-year annualized returns of 7.9%.
LIVVX has an expense ratio of 0.95% compared with the category average of 1.01%.
Western Asset High Yield Fund Class AWAYAX aims to maximize total return on par with prudent investment management. The fund usually invests the majority of its assets in U.S. dollar denominated debt or fixed income securities rated below investment grade at the time of purchase by one or more Nationally Recognized Statistical Rating Organizations or are determined to be of a comparable quality by the sub advisor. WAYAX has three-year annualized returns of 6.8%.
As of March 2019, WAYAX held 399 issues with 1.70% of its assets invested in SPDR Blmbg Barclays High Yield Bd ETF.
To view the Zacks Rank and past performance of all Legg Mason mutual funds, investors can click here to see the complete list of Legg Mason mutual funds .
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Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportGet Your Free (WAYAX): Fund Analysis ReportGet Your Free (LIVVX): Fund Analysis ReportGet Your Free (LMSAX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Take Five: Half-time scores on doors
LONDON (Reuters) - AFTER THE HALF-TIME WHISTLE
After a remarkable six months, it might be too much to hope that scintillating returns earned by almost every sector - whether stocks or bonds, emerging markets or gold - can be replicated in the second half of the year. It's been a barbell approach - dash for safety alongside a reach for yield. But what drives markets from here? Will gloom about economic growth and trade push more investors into bonds and gold? Or will monetary easing promises in the United States, Europe, Japan and China boost riskier markets? Conceivably, growth won't be as dire as the outlook suggests, allowing central banks to hold fire.
The world economy will turn on how the Sino-U.S. trade talks end, and whether U.S.-Iran tensions turn into something worse. But wait, isn't there the Powell Put? The ECB, Bank of Japan and People's Bank of China also stand ready to turn on the stimulus taps if things turn ugly. In fact, while markets will be happy to see growth recover, they seem to prefer wallowing in central bank largesse. And with that comfort blanket wrapped around markets, the second half of 2019 probably won't be too bad.
(Graphic: Global markets asset performance in H1 2019: https://tmsnrt.rs/2FEcGYS)
WILL THERE BE WHITE SMOKE?
EU leaders head for Brussels on Sunday to try and parcel out the bloc's top jobs. The appointees will lead the bloc's policies for the next five years on issues ranging from monetary policy to migration and Brexit to trade.
The wrangling was compared by one leader, Ireland's Leo Varadkar, to electing a pope. But while a recent meeting failed to yield agreement, there is a good chance the upcoming summit will tell us the name of the next European Commission president. Berlin and Paris have been at loggerheads over who should take the helm of the Commission -- German Manfred Weber or French President Emmanuel Macron's pick Michel Barnier. So the smart money is on a compromise candidate, possibly Denmark's Margrethe Vestager.
The big reveal for the European Central Bank presidency is likely to come at a later date but the nationality of the new Commission head will offer big clues at least on where the next ECB boss will come from. A German at the helm of the Commission should mean Bundesbank head Jens Weidmann, a known hawk feared by market participants, will not get the ECB role. Likewise a commission presidency for France would rule out French ECB candidate Francois Villeroy de Galhau. So Finland's Ollie Rehn stands out as the likely compromise.
(Graphic: EU top jobs: https://tmsnrt.rs/2WTUzIp)
SUMMER JOBS
The U.S. June jobs report will be released between the July 4 holiday and the weekend when many market players are absent. But even if trading volumes are lower than usual, the data won't be getting short shrift from anyone.
Whether the Federal Reserve cuts interest rates at its end-July meeting by half a percent, a quarter, or not at all, hinges partly on whether job creation stays as sluggish as May, when payrolls rose 75,000 -- 110,000 below forecasts.
That was the second time this year monthly jobs growth dropped below 100,000 -- the level needed to keep up with the rise in the working-age population. Along with tepid wage growth, a weak figure will heap more pressure on policymakers to move into easing mode.
The economy is expected to have created 165,000 nonfarm jobs in June while interest rate futures indicate 100% odds of a 25 basis-point cut on July 31 and a 26% chance of a 50-basis-point reduction. But traders might be getting ahead of themselves. Fed Chairman Jerome Powell has pushed back on rate-cut pressure. And the economy looks generally robust - unemployment, at 3.6%, is at its lowest in half a century and it likely stayed there in June.
(Graphic: US non-farm payrolls: https://tmsnrt.rs/2YgRy2p)
THE CRUDE TRUTH ON OPEC
Decision-making has never been easy for the Organization of the Petroleum Exporting Countries - a group of 14 Arab and non-Arab oil producers, many of which harbour longstanding rivalries. But even by OPEC standards, things have become tetchier of late.
A month-long wrangle to set a meeting date highlighted the changing dynamic within the group, with decisions increasingly taken by long-time leader Saudi Arabia together with non-OPEC Russia -- much to the chagrin of members like Iran.
OPEC power brokers will gather in Vienna on Monday and meet with non-OPEC states - known as OPEC+ - on Tuesday. They need to decide whether to extend a deal on oil output curbs that expires end-June.
How much impact any decision will have is a question in itself. Oil output in Iran and Venezuela, both under U.S. sanctions, has fallen by more than that of fellow OPEC states that are actually meant to be party to the supply cut pact. So actual supply is down by 2.5 million barrels per day (bpd) versus the 1.2 million bpd that was agreed. Evidently, President Trump has had more impact on oil production than OPEC.
(Graphic: World crude oil production and demand by region: https://tmsnrt.rs/2ZFAZ0e)
BACK TO BITCOIN
Is Bitcoin back? With an over 200% gain already this year, it sure looks like it. The recent surge is partly down to investors looking to diversify portfolios as bond yields fall ever lower. But for the most part, buyers are being driven by speculation that Bitcoin and its peers will rise in value if Facebook's crypto offering Libra becomes a hit. But the key word is "if'.
Facebook plans to launch its digital coin in the first half of 2020 but regulators' reaction has mostly been one of scepticism. The financial services committee in the U.S. Congress has told Facebook to stop development of the project until big questions are answered, while Germany's anti-trust watchdog said it could scrutinise coins from internet giants. And so on.
Those and other comments deflated the rally somewhat, pushing Bitcoin down more than 20% in two days. It will probably keep it well off the $20,000 record high hit in December 2017. But further weakness in mainstream currencies, should central banks resume policy easing, might well benefit Bitcoin.
(Graphic: Bitcoin's back https://tmsnrt.rs/2YjQR8i).
(Reporting by Sujata Rao, Virginia Furness, Karin Strohecker and Olga Cotaga in London; Alden Bentley in New York; editing by John Stonestreet) |
Why BancFirst (BANF) is a Great Dividend Stock Right Now
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
BancFirst in Focus
BancFirst (BANF) is headquartered in Oklahoma City, and is in the Finance sector. The stock has seen a price change of 12.04% since the start of the year. Currently paying a dividend of $0.3 per share, the company has a dividend yield of 2.15%. In comparison, the Banks - Southwest industry's yield is 1.38%, while the S&P 500's yield is 1.93%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.20 is up 17.6% from last year. In the past five-year period, BancFirst has increased its dividend 5 times on a year-over-year basis for an average annual increase of 12.34%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. BancFirst's current payout ratio is 31%. This means it paid out 31% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for BANF for this fiscal year. The Zacks Consensus Estimate for 2019 is $3.89 per share, with earnings expected to increase 1.83% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BANF is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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 reportBancFirst Corporation (BANF) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
This is Why Albemarle (ALB) is a Great Dividend Stock
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Albemarle in Focus
Albemarle (ALB) is headquartered in Charlotte, and is in the Basic Materials sector. The stock has seen a price change of -9.8% since the start of the year. Currently paying a dividend of $0.37 per share, the company has a dividend yield of 2.11%. In comparison, the Chemical - Diversified industry's yield is 1.94%, while the S&P 500's yield is 1.93%.
In terms of dividend growth, the company's current annualized dividend of $1.47 is up 9.7% from last year. In the past five-year period, Albemarle has increased its dividend 5 times on a year-over-year basis for an average annual increase of 5.32%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Albemarle's payout ratio is 27%, which means it paid out 27% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for ALB for this fiscal year. The Zacks Consensus Estimate for 2019 is $6.22 per share, representing a year-over-year earnings growth rate of 13.50%.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, ALB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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 reportAlbemarle Corporation (ALB) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Carter's (CRI) is a Top Dividend Stock Right Now: Should You Buy?
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Carter's in Focus
Carter's (CRI) is headquartered in Atlanta, and is in the Consumer Discretionary sector. The stock has seen a price change of 16.96% since the start of the year. Currently paying a dividend of $0.5 per share, the company has a dividend yield of 2.1%. In comparison, the Shoes and Retail Apparel industry's yield is 1.03%, while the S&P 500's yield is 1.93%.
In terms of dividend growth, the company's current annualized dividend of $2 is up 11.1% from last year. Carter's has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 24.32%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, Carter's's payout ratio is 33%, which means it paid out 33% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CRI expects solid earnings growth. The Zacks Consensus Estimate for 2019 is $6.64 per share, which represents a year-over-year growth rate of 5.56%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CRI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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 reportCarter's, Inc. (CRI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Cathay General (CATY) is a Top Dividend Stock Right Now: Should You Buy?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Cathay General in Focus
Headquartered in Los Angeles, Cathay General (CATY) is a Finance stock that has seen a price change of 5.16% so far this year. The holding company for Cathay Bank is paying out a dividend of $0.31 per share at the moment, with a dividend yield of 3.52% compared to the Banks - West industry's yield of 2.05% and the S&P 500's yield of 1.93%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.24 is up 20.4% from last year. In the past five-year period, Cathay General has increased its dividend 5 times on a year-over-year basis for an average annual increase of 31.61%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Cathay's payout ratio is 36%, which means it paid out 36% of its trailing 12-month EPS as dividend.
CATY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $3.48 per share, which represents a year-over-year growth rate of 4.19%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that CATY is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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 reportCathay General Bancorp (CATY) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Why Sierra Bancorp (BSRR) is a Great Dividend Stock Right Now
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Sierra Bancorp in Focus
Sierra Bancorp (BSRR) is headquartered in Porterville, and is in the Finance sector. The stock has seen a price change of 8.99% since the start of the year. The parent company of Bank of the Sierra is paying out a dividend of $0.18 per share at the moment, with a dividend yield of 2.75% compared to the Banks - West industry's yield of 2.05% and the S&P 500's yield of 1.93%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.72 is up 12.5% from last year. Over the last 5 years, Sierra Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 16.29%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Sierra Bancorp's current payout ratio is 35%. This means it paid out 35% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for BSRR for this fiscal year. The Zacks Consensus Estimate for 2019 is $2.25 per share, which represents a year-over-year growth rate of 17.19%.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BSRR presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
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 reportSierra Bancorp (BSRR) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Why Washington Trust Bancorp (WASH) is a Top Dividend Stock for Your Portfolio
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Washington Trust Bancorp in Focus Headquartered in Westerly, Washington Trust Bancorp (WASH) is a Finance stock that has seen a price change of 9.83% so far this year. The holding company for The Washington Trust Co. Is currently shelling out a dividend of $0.47 per share, with a dividend yield of 3.6%. This compares to the Banks - Northeast industry's yield of 1.89% and the S&P 500's yield of 1.93%. Looking at dividend growth, the company's current annualized dividend of $1.88 is up 6.8% from last year. Over the last 5 years, Washington Trust Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.92%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Washington Trust's payout ratio is 47%, which means it paid out 47% of its trailing 12-month EPS as dividend. Looking at this fiscal year, WASH expects solid earnings growth. The Zacks Consensus Estimate for 2019 is $4.15 per share, which represents a year-over-year growth rate of 5.60%. Bottom Line From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout. Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, WASH is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold). 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 report Washington Trust Bancorp, Inc. (WASH) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research |
Banks' Capital Plans Approved: Shareholders to Get Wealthier
In a vote of confidence for the banking industry, the Federal Reserve has approved the capital plans of all the 18 financial institutions (including the U.S. units of foreign banks with $50 billion or more in total consolidated assets). This time, payouts (in terms of quarterly dividend and share buybacks) are expected to get bigger, with the same likely to exceed the projected earnings for a few banks.However, there was a slight scare for JPMorgan JPM and Capital One COF as they had to alter and resubmit capital plans to remain above the Fed’s regulatory minimum capital levels. Besides, the U.S. unit of Credit Suisse CS received the conditional approval, with the bank requiring “to address certain limited weaknesses in its capital planning processes” by Oct 27.Surprisingly, Deutsche Bank’s DB U.S. unit also received approval for its capital plan. This will provide substantial boost to the financials of the bank, which has been facing several concerns. Earlier in 2015, 2016 and 2018, the unit’s plan was rejected by the Fed.Following the approval, most of the banks announced their 2019 capital plans. As we see in the table below, there will be a significant improvement in shareholder value:
The capital plan approval and subsequent expectation of substantial increase in payouts cheered investors, with stocks of almost all the participating financial institutions ending the day in green. This positive development may boost the bank stocks, which have been trailing the broader markets amid several concerns, including the Fed’s stance on interest rates and assumption of economic slowdown.The Annual ExerciseCapital plan approval is part of the annual exercise conducted in two stages by the Fed (authorized under the Dodd-Frank financial-services law) to assess the resilience of the banking industry. In its 10th year of implementation, the process has helped the banking industry to significantly raise capital levels.Per the Fed statement, “the largest and most complex banks have more than doubled their common equity capital from around $300 billion to roughly $800 billion” this year.During the 2008 financial crisis, big financial institutions like Lehman Brothers collapsed, while several others were on the verge of a meltdown. So, the U.S. government had to infuse billions of dollars into credit markets and save the entire financial system from crumbling.This year’s stress test was the toughest, with severe adverse scenarios featuring a severe global recession and a steeper downturn in the U.S. economy. Further, the 10-year Treasury declined to a trough of around 0.75%. Also, in equities, the banks were required to factor in substantially more volatility, with the U.S. Market Volatility Index reaching 70%.Additionally, the scenario included the U.S. unemployment rate increasing to 6-10% along with slump in real estate prices and heightened stress in corporate loan markets. Under this hypothetical scenario, these banks will incur a loss of $410 million, narrower than total losses of $464 billion projected in the worst-case hypothetical scenario for the 18 firms in 2018.Notably, the Common Equity Tier 1 (CET1) capital ratio (in aggregate) would fall to a low of 9.2% from an actual 12.3% in fourth-quarter 2018. The figure is well above the 4.5% minimum mark set by regulators.Road AheadThis year, only financial institutions with assets of more than $250 billion were the part of this annual process. Earlier in February 2019, the central bank had excepted banks with assets between $100 billion and $250 billion from 2019 supervisory stress test. These banks will be required to undertake supervisory stress test alternate year, beginning 2020.Big banks will have to undergo this two-stage process annually to get approval for their yearly capital deployments and for enhancing shareholder value. Further, the Fed’s approval to increase dividend payment and accelerate the share buyback program will help banks attract more investments.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportJPMorgan Chase & Co. (JPM) : Free Stock Analysis ReportDeutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis ReportCredit Suisse Group (CS) : Free Stock Analysis ReportCapital One Financial Corporation (COF) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
American Assets Trust (AAT) is a Top Dividend Stock Right Now: Should You Buy?
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
American Assets Trust in Focus
Headquartered in San Diego, American Assets Trust (AAT) is a Finance stock that has seen a price change of 15.14% so far this year. Currently paying a dividend of $0.28 per share, the company has a dividend yield of 2.42%. In comparison, the REIT and Equity Trust - Retail industry's yield is 5.13%, while the S&P 500's yield is 1.93%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.12 is up 2.8% from last year. American Assets Trust has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 5.08%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, American Assets Trust's payout ratio is 52%, which means it paid out 52% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, AAT expects solid earnings growth. The Zacks Consensus Estimate for 2019 is $2.23 per share, representing a year-over-year earnings growth rate of 6.70%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AAT is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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 reportAmerican Assets Trust, Inc. (AAT) : Free Stock Analysis ReportTo read this article on Zacks.com click here. |
Chinese consumers say they've boycotted American products amid Trump trade war
Chinese consumers are souring on American products amid a bruising trade war . As the two countries continue to negotiate a potential truce on tariffs, a new survey finds that 56% of Chinese consumers have boycotted an American product "to show support for China." The survey of 1,000 Chinese consumers and 1,000 American consumers was conducted by the Brunswick Group, a global communications firm. Some 68% of Chinese consumers say their opinion of American companies has worsened because of the trade war. The U.S. and China have implemented multiple rounds of increased tariffs on each other's goods since President Donald Trump took office and threatened to take action against China. Tariff hikes typically increase the cost of goods for consumers and drag corporate profits while providing an incentive for manufacturers to relocate production to unaffected countries. Soybeans The attitude of American consumers toward Chinese companies is also deteriorating. According to the survey, 41% of American consumers have a favorable opinion of Chinese companies, down from 47% in October. And 44% trust Chinese companies to do what is right, down from 56% in October. Who gets hurt by China's tariffs?: Farmers, chemical makers and others Who gets hurt by America's tariffs?: Oxygen, raincoats, baseball gloves In China, 75% of consumers say they've noticed price increases on household goods since the tariff hikes, while 60% of American consumers say they've noticed. Despite increased wariness toward each other, a solid majority of American and Chinese citizens support bilateral trade, with 70% of each group saying they benefit from the relationship. About two-thirds of each group expects a trade agreement to be reached within a year. Follow USA TODAY reporter Nathan Bomey on Twitter @ NathanBomey . This article originally appeared on USA TODAY: Chinese consumers say they've boycotted American products amid Trump trade war |
3 Reasons It's Dumb to Take Social Security at 62
The earliest age you can start Social Security is 62 and that's also the most popular time to sign up for benefits. In 2017, approximately 29% of men and 33% of women signed up for benefits at 62, according to the Social Security Administration (SSA).
After years of working hard for every dollar, it seems like a nice treat to suddenly get checks from the government every month. But few people realize how much they're short-changing themselves when they sign up for Social Security as soon as they blow out their 62nd birthday candles. Here are three reasons you may want to hold off.
The amount you get from Social Security depends on how much you earned during your working life and also on the age at which you begin receiving benefits. You can begin taking Social Security as early as 62, but if you want the full benefit you're entitled to, you must wait until yourfull retirement age (FRA). This is 66 or 67, depending on your birth year.
When you claim early, the SSA reduces the size of your monthly checks to account for the extra time you're receiving benefits. Applying at 62 means you'll receive only 70% of your scheduled benefit per check if your FRA is 67 or 75% if your FRA is 66. This process works the other way, too. You can delay benefits past your FRA and your checks will keep growing until you reach the maximum benefit at 70 -- 124% of your scheduled benefit for an FRA of 67 or 132% for an FRA of 66.
To give you an idea of how much you could lose by starting benefits early, let's consider the average Social Security benefit of $1,470 per month. If you're eligible for this amount at your FRA of 67 and you claim benefits until 90, that's a total of $405,720 in benefits over your lifetime. Starting benefits at 62 would get you only 70% of that $1,470 per month, or $1,029 per month. If you claim benefits until you're 90, you end up with a total of $345,744. That's a difference of nearly $60,000 -- enough to cover a year or two of living expenses for most retirees.
Those who wait until their FRA to claim Social Security can do so without fear of the government reducing their benefits, but this isn't the case for those who begin claiming early. In 2019, for every $2 you make over $17,640, the SSA will take $1 from your Social Security check if you were claiming benefits and under your FRA for the entire year. If you'll reach your FRA in 2019, the SSA takes $1 for every $3 you earn over $46,920 if you exceed this amount before reaching your FRA.
The good news is that those withheld dollars aren't gone forever. When you reach your FRA, the SSA will recalculate your benefit amount to account for the months it reduced or withheld your benefits. So your checks will increase slightly, though they probably won't be as big as if you'd waited until your FRA to begin claiming benefits.
Many people claim Social Security benefits at 62 so they can afford to retire sooner, but a lot of those same people have small nest eggs that won't last them the rest of their lives. A 2017 Government Accountability Office survey found the median retirement savings for adults 55 to 64 was $107,000. Everyone'sretirement savings goalsare different, but that's nowhere near enough for most people to enjoy a comfortable retirement.
We can never know how long we're going to live, but people are living longer and longer. One in three 65-year-olds can expect to live past 90 today, and one in seven will live past 95, according to the SSA. Social Security was never meant to cover all or even most of a retiree's expenses, but it can help supplement your existing savings. Your benefits won't go as far when you start Social Security at 62, though, so you run a bigger risk of outliving your retirement savings.
Sometimes you have no choice but to start Social Security at 62. You or your spouse may become unable to work, and you may have to start benefits to make ends meet. But if you have a choice, you're better off delaying Social Security until your FRA or even 70. This will make a significant difference in the benefits you receive over your lifetime, and it can help you stretch your personal savings a little further.
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Is Amazon's 7th LATAM Edge Venue a Threat to GOOGL & Others?
AmazonAMZN is gearing up to set up its seventh Edge location in Latin America (LATAM), in a bid to bolster presence in the region.Notably, Buenos Aires, Argentina has been selected as the new location by Amazon Web Services (AWS), marking first-of-its-kind in the country. Notably, it is expected to go online this year itself.The new Edge location will aid in delivering data, videos and applications at faster speeds to local users. Further, it will help in strengthening the cyber security of the companies. Additionally, the latest initiative is anticipated to strengthen the performance of Internet services by 90% in Argentina.All the above-mentioned benefits of Amazon’s latest initiative are likely to expand its footprint in the country.LATAM in FocusAmazon’s latest move is likely to provide it a competitive edge against the likes of Microsoft MSFT Azure, International Business Machines IBM and Alphabet’s GOOGL Google cloud. These cloud service providers are leaving no stone unturned to leverage the favorable environment for technical innovation in LATAM’s cloud computing market.Moreover, increasing IT spending, strengthening infrastructure for digitization and business friendly regulations in LATAM are acting as tailwinds in attracting cloud providers to make advances in the region.Further, growing proliferation of IoT, AI and big data are resulting in increase in the adoption rate of IaaS, SaaS and PaaS in LATAM.Intensifying Cloud Battle, Share Price PerformanceGrowing cloud initiatives of the above-mentioned companies are intensifying the competition in the market. According to a report from Synergy Research, AWS maintained its dominance over Azure, Google Cloud and IBM in the cloud space in the first-quarter 2019 with 33% market share.However, the other cloud service providers are also making every effort to catch up with AWS. Further, Azure is growing rapidly on the back of its robust service portfolio which aided it in acquiring 16% market share.Meanwhile Google Cloud accounted for 8% of the cloud market over the same time frame.Coming to the year-to-date price performance, shares of Amazon, Microsoft and IBM have returned 26.8%, 32.1% and 21.9%, respectively, outperforming the S&P 500 Index’s rally of 14.9%. Meanwhile, shares of Alphabet have gained 3%, underperforming the S&P Index.
Year-to-Date Price Performance
GOOGL, MSFT & IBM: Strong ContendersGoogle Cloud intends to invest $140 million in its Chilean data center located in Quilicura, Santiago. Notably, this is in addition to the company’s initial investment of $150 million. We believe the additional investment will expand the company’s storage capabilities and size of the data center.Additionally, it is investing in submarine cables to offer customers private and high-speed connection to their cloud data. Submarine cable systems like Monet connects the United States to Brazil, Tannat connects Brazil, Uruguay and Argentina, and Junior will connect Rio to Santos.Further, Google Cloud has three availability zones in Sao Paulo.Notably, Google’s parent Alphabet carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Meanwhile, Microsoft Azure provides cloud facilities in LATAM through its data center in Brazil. Further, this Zacks Rank #3 stock has an availability zone in the Brazil.Further, IBM which carries a Zacks Rank #3 owns three data centers in LATAM – one located in Hortolandia, Sao Paulo, one in Jundiai, Sao Paulo and one in Queretaro, Mexico. Further, IBM Cloud Direct Link is now part of Ascenty’s connectivity portfolio. Notably, Ascenty is the largest data center infrastructure provider of LATAM. This is likely to reinforce IBM’s position in the cloud market of LATAM.Amazon’s Aggressive StanceThe cloud leader’s latest move reflects its aggressive stance in LATAM’s cloud space. In March, AWS revealed its plan to launch an Edge location in Colombia, its sixth such location in LATAM at that point of time. Other Edge locations are based in Sao Paolo and Rio de Janeiro.Further, the company has plans to set up advanced data centers in Argentina and Chile. Moreover, it is making every effort to aid astronomers in crunching huge troves of data from telescopes in Chile using its cloud services.Additionally, AWS has three availability zones in LATAM which are located in Sao Paulo, Brazil. Further, it has offices in Brazil, Chile, Colombia, Argentina and Mexico.We believe all these strong endeavors are likely to aid this Zacks Rank #3 stock’s cloud dominance in the long haul.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportInternational Business Machines Corporation (IBM) : Free Stock Analysis ReportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportAlphabet Inc. (GOOGL) : Free Stock Analysis ReportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
3 Mutual Funds to Benefit From Stress Test Results
On Jun 28, the Federal Reserve announced the results of its annual tests to assess the financial strength of the largest banks in the United States. Termed as stress tests, the Fed conducts a review of these banks under hypothetically created financial crises and recessions.
Results showed that 18 banks exhibited financial strength by showing that they had enough capital to withstand a potential economic downturn. These include Bank of America BAC, PNC Financial Services Group PNC, Bank of New York Mellon BK and State Street STT.
However, the Fed did not seem impressed with the way Credit Suisse CS assesses its risks and therefore issued the Swiss bank a conditional non-objection, which requires the bank to keep its capital distribution capped at 2018 levels.
Banks which qualified received permission to redistribute capital through share repurchase programs, dividends or other suitable means. Positive results from the stress test also indicate the ability of the U.S. banks to offer higher returns on investment.
Value Investors to Gain Immensely from Bank Stocks
Ever since the end of the last recession in 2009, it has been observed that investors targeting value stocks have focused more on banks. The reason for this is pretty simple. Value investing fundamentally screens stocks that have lower price-to-earnings ratio (P/E) than that of the broader market average.
Moreover, diversified banks have average forward P/E ratio of less than 10 compared with the market average of around 15. This is what makes bank stocks attractive. Moreover, it is largely expected that P/Es for large consumer banks will continue to lag the industry average this year as well.
3 Best Mutual Funds to Buy Now
Given such positives, we have highlighted three financial mutual funds poised to gain significantly from a rising rate environment in the United States. These funds also carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
T. Rowe Price Financial ServicesPRISX fund seeks both capital growth and current income. The majority of its assets are invested in financial services companies. It may also purchase securities of companies involved in providing financial software. The fund uses fundamental bottom-up analysis in order to select securities.
This Sector-Finance product has a history of positive total returns for over 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRISX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.87%, which is below the category average of 1.40%. The fund has three and five-year returns of 12.7% and 8.9%, respectively.
JHancock Regional Bank AFRBAX fund invests the lion’s share of its assets in stocks of regional banks and other lending institutions, including commercial and industrial banks, savings and loans associations and bank holding companies.
This Sector-Finance product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FRBAX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 1.21%, which is below the category average of 1.40%. The fund has three and five-year returns of 9.6% each, respectively.
Fidelity Select BankingFSRBX fund seeks appreciation of capital. FSRBX normally invests at least 80% of its assets in common stocks of companies principally involved in banking. The fund invests in both U.S. and non-U.S. companies.
This Sector-Finance product has a history of positive total returns for over 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSRBX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.77%, which is below the category average of 1.40%. The fund has three and five-year returns of 9.1% and 6.9%, respectively.
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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 reportState Street Corporation (STT) : Free Stock Analysis ReportBank of America Corporation (BAC) : Free Stock Analysis ReportThe PNC Financial Services Group, Inc (PNC) : Free Stock Analysis ReportThe Bank of New York Mellon Corporation (BK) : Free Stock Analysis ReportCredit Suisse Group (CS) : Free Stock Analysis ReportGet Your Free (FSRBX): Fund Analysis ReportGet Your Free (PRISX): Fund Analysis ReportGet Your Free (FRBAX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Jervois Mining Capital Raise Oversubscribed
HIGHLIGHTS
• Jervois Mining has raised A$16.5 million at an 8.1%premiumto its market price in an over-subscribed financing
• Strong investor demand on the back of the completion of the M2 Cobalt transaction and pending at-market eCobalt merger (the "eCobalt Merger"); the Company agreed to accept 10.0% oversubscriptions from its stated A$15.0 million target as a result
• Post-eCobalt Merger company to be well capitalized and led by an experienced management team that has proven it is well-qualified to advance the Idaho Cobalt Project ("ICP") towards production
• Strong voting support for the eCobalt Merger already; 19.05% of eCobalt's outstanding shares are committed to vote in favor of the eCobalt Merger, including 14.7% of eCobalt shares under voting and support agreements from key shareholders
Vancouver, British Columbia--(Newsfile Corp. - June 28, 2019) - Jervois Mining Limited (TSXV: JRV) ("Jervois" or the "Company") is pleased to announce that its previously announced capital raise has been successfully oversubscribed. Jervois launched an equity raise on 26 June 2019 for targeted gross proceeds of A$15.0 million at an ~8% premium to its underlying market price (the "Financing"). On the back of strong demand from current and new institutional investors and the Company's management and board of directors, the Company made the decision to increase the financing size by a maximum of 10% and raise total gross proceeds of A$16.5 million, thus oversubscribing the Financing.
Jervois is pleased with the strong response from institutional investors. The Financing is conditional on completion of the eCobalt Merger and is supported by irrevocable investor commitments. Whilst Jervois could have raised additional capital, the level chosen provides adequate working capital out past mid 2020. During this period Jervois will finalise the Definitive Feasibility Study ("DFS") at the Idaho Cobalt Project ("ICP") in the United States and be in a position to restart construction at site; the Company will also continue with its exploration programme in Uganda, acquired via the recent merger with M2 Cobalt Corp ("M2 Cobalt").
The Financing comprises the issue of 82,500,000 ordinary shares at a price of A$0.20 per share. These shares will be issued fully paid and rank equally with existing ordinary shares on issue. Of the 82,500,000 new Ordinary Shares, 40,562,448 will be issued utilising the Company's existing placing capacity under Listing Rule 7.1.
The balance of the shares, including for the participation of the directors in the Financing, will be issued subject to shareholder approval, which will be sought at the upcoming General Meeting of the Company on 18 July 2019. An addendum to the Notice of Meeting will be sent to shareholders shortly. The issue of the new shares is anticipated to occur on 26 July 2019 once necessary conditions are met and shareholder and regulatory approval is received, including from the TSXV.
For further information, please contact:
Investors and Analysts:Media:
Investors and analysts:Bryce CrockerChief Executive OfficerJervois MiningTel: +61 3 9583 0498bcrocker@jervoismining.com.au
Media:Nathan RyanNWR CommunicationsTel: +61 420 582 887nathan.ryan@nwrcommunications.com.au
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45976 |
Billionaire Investor Henry Kravis Makes First Crypto Investment
Billionaire investor and philanthropist Henry Kravis is dipping his toe into the world of crypto assets.
According to apieceby Bloomberg on Friday, Kravis – who is co-founder of global investment firm KKR & Co. – is said to have invested in a cryptocurrency fund offered by ParaFi Capital.
The news comes via ParaFi founder and CIO Ben Forman, a former KKR employee who left to form the San Francisco-based digital asset startup. Bloomberg said a spokeswoman for Kravis has declined to comment on the investment.
Related:Tim Draper Is Bullish On Argentina’s Blockchain Tech Potential
Forman describes ParaFi Capital as an “investment firm focused on the blockchain ecosystem”with backing from Bain Capital Ventures, Dragonfly Capital Partners and more.According toCrunchbase, ParaFi has invested in crypto exchange Coinbase and ethereum-based stablecoin developer MakerDAO,
As well as working on debt investments, Forman led KKR’s research efforts on blockchain and crypto before leaving the firm in 2018, Bloomberg says.
Forman said:
“While I toyed with the idea of pursuing blockchain investing within KKR, it was clear to me that the firm did not provide the optimal format to do so. Instead of pursuing crypto at KKR, I wanted to build the KKR of crypto.”
Related:Crypto Funds, Lending and Market Manipulation
Kravis has an estimated net worth of $5.8 billion as of mid-2018, and is ranked by Forbes as the 365th richest person in the world, according toWikipedia.
Henry Kravisimage via Christopher Michel/Wikipedia Commons
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Asia Gold: Price rally sours demand in major centres
By Rajendra Jadhav and Eileen Soreng MUMBAI/BENGALURU (Reuters) - Gold discounts in India widened to the highest in nearly three years this week, with demand subdued in major Asian centres as a rally in bullion prices to multi-year highs curbed purchases. Indian dealers were offering a discount of up to $25 an ounce over official domestic prices, the highest since September 2016. This compares with a discount of $15 offered last week. The domestic price includes a 10% import tax and 3% sales tax. "Prices have risen too much in a short span. Customers are waiting for a correction," said B Govindan, president of All Kerala Gold and Silver Merchants Association. Gold prices in the world's second biggest consumer hit a record high of 35,4960 rupees per 10 grams earlier this week, tracking gains in the world market. Jewellers have nearly stopped buying gold due to negligible retail demand and rising supplies of old jewellery, according to a Mumbai-based dealer with a bullion importing bank. "Gold imports will fall sharply in June," the dealer said. India's gold demand could fall 10% in 2019 to the lowest in three years as record high local prices dent retail purchases during a key festive season, the head of an industry body told Reuters. Demand sagged in other Asian hubs as well, with benchmark spot gold prices rallying to multi-year highs. Spot gold has gained more than 8% so far in June, its best monthly performance in three years, propelled by a weaker dollar, prospects of monetary easing by major central banks and escalating U.S.-Iran tensions. In top gold consumer China premiums ranged between $12 and $14 per ounce over the global benchmark, down from $14 to $20 charged last week. Demand for physical gold has been weak as the price increase has driven buying of paper futures rather than the metal itself, said a Shanghai-based trader. Markets in Singapore and Hong Kong saw premiums remaining flat at around 40-60 cents and 50 cents-$1.20 respectively, with customers selling back gold to lock in profits. Asian centres saw high volumes of scrap gold as customers resorted to selling back gold to take advantage of higher prices, a Singapore-based bullion trader said. Japanese investors were also in a selling frenzy with prices surging to multi-year highs, a Tokyo-based trader said. The metal was being sold at a $1 discount in the market, unchanged from last week. Graphic: India's gold market http://tmsnrt.rs/2b1Tl6J (Reporting by Rajendra Jadhav in Mumbai, Eileen Soreng in Bengaluru; Editing by Jan Harvey) View comments |
Tilson: Why I'm glad Warren is running despite my run-in with her
I generally try to keep my political views out of my investing-related emails and articles. It’s not what my readers signed up for, plus in this era of extreme political polarization, no matter what I say I’m likely to irritate a substantial number of my readers/subscribers — I already do that enough with my investing-related opinions!
That said, it’s not every day that I’m prominently mentioned on the editorial page of The New York Times — in this case, in an op-ed by my old friend (and one of my heroes) Nick Kristof published June 26,Why I Was Wrong About Elizabeth Warren. Here’s the part in which he mentions me:
I worried about a tendency to shoot from the hip when Warren misread an article and in 2016wrote a Facebook rantdenouncing a supposedly greedy Trump-supporting investor, Whitney Tilson. In fact: Tilson opposed Trump and agrees with Warren on most issues; indeed, Tilson had previously donated to Warren.
The story Kristof is referring to is a wild one, with elements that both Republicans and Democrats will love…
As background, Professor Warren (as she was known at the time) was my wife’s favorite professor at Harvard Law School. She had done a great deal of original research on why so many American families were filing for bankruptcy, revealing that, unlike what the financial industry would have you believe, most folks who filed weren’t deadbeats, but rather had been walloped by factors beyond their control like medical bills. Warren had such great knowledge and passion that she made a normally dry topic interesting for my wife and her classmates.
Thanks to this personal connection, we followed her career closely and, when she ran for Senate, were happy to make a couple of small donations. While I don’t agree with all of her ideas, I agree with her general assessment that we’ve allowed multiple systems to develop in this country that screw average folks in countless ways, from education, healthcare, criminal justice, trade, etc.
But the financial system may be the worst. I can’t think of a single element of it — credit cards, mortgages, auto loans, student loans, and so forth — in which the industry isn’t preying on its customers, especially the least sophisticated ones, to increase its profits. (For an excellent book on this, I recommend “Broke, USA: From Pawnshops to Poverty, Inc. — How the Working Poor Became Big Business.”) Thus, I cheered Sen. Warren’s successful efforts to create the Consumer Financial Protection Bureau, which, because of its effectiveness (at least until recently) is reviled in the financial sector.
Thus, imagine my surprise when, on December 1, 2016, shortly after Trump’s election, she posted this misguided attack on me on her Facebook page, where she has millions of followers:
It was so wrong-headed that, initially, I laughed it off — all publicity is good publicity, right? But ultimately I decided that Sen. Warren should correct her mistake, so I contacted her Chief of Staff and my wife also wrote herthis beautiful letter. To our surprise, however, she refused to correct or remove her post.
There are few things that piss me off more than powerful people, companies, or organizations picking on the little guy. I suppose I get this from my parents, who met and married in the Peace Corps in 1962. They’re wonderful people who’ve always taught me to not only stick up for myself, but also for others who might not be able to stick up for themselves.
It’s part of what motivates all of my philanthropic activities. It’s also a major reason why I write so often and publicly about investing, and why I decided earlier this year to launch an investment newsletter rather than starting another hedge fund (which, let’s be honest, involves helping the very rich get even richer): I want to serve as many people as possible and help individual investors avoid all the hype, promotions, scams, and overvalued dreck that Wall Street is constantly foisting on them.
Sen. Warren must have thought I was some nobody who she could bully, but she was wrong… Over the years, I’ve developed relationships with many journalists, which has proven valuable on a handful of occasions (like giving “60 Minutes” the Lumber Liquidators formaldehyde story).
In this case, I thought Andrew Ross Sorkin of The New York Times would be interested in the story… and I was right. He published this article on the front page of the Business section on December 12, 2016: “Elizabeth Warren Condemns the Wrong Man,” which triggered a firestorm of bad publicity for her.
The next day, the Boston Globe ran a front-page story, “In Warren, Some Are Seeing Shades of Trump’s Antics,” and other media also piled on. Finally, a day later, she apologized, both publicly (see: “From Senator Warren, a regret”) and privately. She called me that day and my wife and I had a half-hour meeting with her when she was in New York City a couple of months later.
I think she was genuinely sorry about what she’d written, both because it was incorrect, but even more importantly because it’s simply inappropriate for a powerful public figure to attack a private citizen. To my knowledge, she has never repeated this mistake (unlike President Trump, who regularly disgraces his office with this kind of behavior).
While I haven’t endorsed Sen. Warren’s presidential bid (Cory Booker is an old friend and I think the world of him, so I’m supporting his campaign), I’m glad she’s running and getting traction. While she’s been in an elite world for many years now, she comes from extremely humble origins. She grew up in Oklahoma in a family clinging to the bottom edge of the middle-class, so her concerns about average Americans come from deep in her heart I think. And unlike most candidates, she’s put forth a slew of detailed ideas, which is to be commended whether you agree with them or not.
Whitney Tilson founded and for nearly two decades managed hedge fund Kase Capital. He is now teaching the next generation of investors via his new business,Kase Learning.
Read more:
Tilson on Tesla: This is the beginning of the end
Former hedge fund manager Whitney Tilson has his kids’ college fund in 5 stocks
Whitney Tilson wants to help tomorrow’s hedge fund managers avoid his mistakes
Tilson: I bought these two stocks after Warren Buffett explained why he didn’t buy them |
A Simple Test to Find IPO Stocks to Buy
Beyond Meat(NASDAQ:BYND) was one of the flashiest IPO stocks of the year, with actress Jessica Chastain coming to ring the opening bell. Ever try any of its meat alternatives? I was skeptical. I try to eat healthy, whole foods — and stuff like the Boca burger is just terrible. But I did try Beyond Meat’s version of “Italian sausage.” I have to admit, it was pretty good.
I guess a lot of other people agree. In the latest quarter, Beyond Meat’s revenues were up 214% year-over-year to $40.2 million, and its IPO in May was a massive hit. And it’s got plenty of company:
• Chewy(NYSE:CHWY), the online pet food shop backed by PetSmart, is up 50% two weeks after its IPO.
• Uber(NYSE:UBER) andLyft(NASDAQ:LYFT) got everyone’s attention. And if the stocks got off to a rocky start, well… so didFacebook(NASDAQ:FB).
• Then there’sPinterest(NYSE:PINS) andFiverr(NYSE:FVRR)…
• And before long, we’ll be adding Airbnb and Peloton to the list.
IPO stocks as a group are outpacing the broader market 2-to-1. So it’s definitely a hot market right now. And now let’s talk about how to play the IPO game right.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Here’s the thing: Most of us never get a shot at buying a true IPO. Almost all of those shares go to company insiders and the brokerage firms helping the company go public. Institutions usually get about 90% of the shares, with the rest going to brokers’ biggest clients.
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So for practical purposes, when we talk about IPO stocks to buy, we’re really talking about buying shares of a companyafterit starts trading. That’s fine.
Early on, stocks can swing depending on a variety of factors: media hype… how well the offering was priced… how many shares are available… the “lockup period” before early investors can cash out… the first earnings report… and more.
I always say atInvestment Opportunitiesthat we’re after huge long-term profits — so we let the early madness play out. And I use that time to put my IPO analytical model to work.
Three months afterElixinol Global(OTCMKTS:ELLXF) went public, it earned my buy signal. It’s up 68% for my subscribers now.
Eleven months after its IPO, I recommended MTech Acquisition. Then, after last week’s merger that turned the company intoAkerna(NASDAQ:KERN), our patience was rewarded — we made 153%… then546%.
Both stocks are part of a huge, global mega-trend — in this case, marijuana legalization. But before you invest, you’ve got to look under the hood.
One thing you’ll hear me talk about is profitability. That’s definitely one of thekey factors in a successful IPO.
Now, don’t get me wrong: I don’t necessarily need to see huge profit margins right now.
Just look atAmazon(NASDAQ:AMZN) andNetflix(NASDAQ:NFLX). Some years, they post no profits. That’s because they continually invest in growing their businesses… which allows them to increase their market share and hammer their competitors. So, investors buy them hand over fist… not because of the current profits, but because they expect massive profits in the future. And AMZN and NFLX are up more than 1,000% since 2010.
The key is a clear path to future profitability. There must be a sustainable business model that can generate cash in the future. If not, then pass on it.
Ultimately, I expect recent IPOs to passfive critical testsbefore I’d consider any of them to be stocks to buy.Click here for more about these criteria and the opportunities I see now.
Once I’ve found a high-quality stock among the crop of recent IPOs, I then determine WHEN to buy. Because ultimately, success means having the right idea — at the right time. Just ask early investors in Facebook, who were underwater for over a year… before the stock took off for the stratosphere.
So, I not only want IPO stocks to meet my five criteria; I want to get the timing right. That’s what I designed myCannabis Cash Calendar systemto do specifically for marijuana IPOs.
Legalization is still working its way across the country (and the world), which means that for most successful companies, their biggest gains are yet to come. Oftentimes, you can buy tomorrow’s leaders for just pennies a share, or maybe a few dollars.
I’m about to release my nextCannabis Cash Calendar recommendationon July 8. You can get exclusive access to it the moment it is released to myInvestment Opportunitiesreaders.Click here to learn moreand get on the list to be notified.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you’re interested in making triple-digit gains from the world’s biggest investment trends BEFORE anyone else,click here to learn more about Matt McCall and his investments strategy today.
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Glastonbury 2019: Best and boldest looks from UKs biggest music festival
Glastonbury Festival is off to a scorching start, with temperatures set to soar, reaching highs of 31C. This year is set to be one of the hottest Glastonburys yet, thrilling those in attendance and injecting those at home with a heady dose of FOMO. While the sunshine is welcome, it can offer up a whole host of festival fashion dilemmas, such as: "will this leotard give me rogue tan lines?" and "will this glitter melt off of my face?" But if the first few days are anything to go by, ticket-holders for the UK's biggest festival are entirely unfazed and are taking the heatwave in their sartorial stride. From the rainbow catsuits to the obnoxiously large flower crowns, click through the gallery below to see the best dressed attendees at Glastonbury Festival so far. Keep up to date with The Independent 's coverage of Glastonbury here . |
Battered Bearish Gold Miners ETF Still Has An Audience
Gold is soaring this month. So are gold miners equities and the related exchange traded funds and the same is true for junior or small-cap miners.
What Happened
In other words, these are dangerous times to be dancing with inverse leveraged gold miners funds, including those targeting junior miners, but data confirm that is exactly what some traders are doing and they are making those bearish bets with theDirexion Daily Junior Gold Miners Index Bear 3X Shares(NYSE:JDST).
JDST attempts to delivertriple the daily inversereturns of the MVIS Global Junior Gold Miners Index (MVGDXJTR). That benchmark features micro-, mid- and small-cap precious metals miners.
Why It's Important
Month-to-date, the MVIS Global Junior Gold Miners Index is higher by about 24%, the equivalent of a death knell for JDST. Proving one should not hold leveraged ETFs, bullish or bearish, for more than a few days, JDST is down a staggering 50.90% this month.
JDST's June struggles are not keeping some traders from doing some bargain hunting.
For the one-, five- and 10-day periods ending Wednesday, June 26, JDST was the second-best asset gatherer among all Direxion leveraged ETFs,according to issuer data. In each of those three time-frames. JDST was second only to its large-cap counterpart, theDirexion Daily Gold Miners Index Bear 3X Shares(NYSE:DUST). All DUST has done this month is lose 50%.
For the 10 days ending June 26, traders added $59.3 million to JDST, but they added more than triple that amount to DUST. Additionally, for the five days ending June 26, volume in JDST was nearly double the trailing 20-day average, by far the largest increase among all of Direxion's leveraged funds.
What's Next
At the moment, gold prices show no signs of retreating. The primary takeaway for JDST and DUST buyers is that they will likely remain on the wrong side of this trade until the precious metal makes a sustained move below it's new multi-year high, or they bail out.
However, to steal a phrase from the world of poker, some DUST and JDST may at this point be “pot committed” and forced to hope for the best, although the near-term odds appear stacked against them.
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Hotel Industry Outpaces Major Indices YTD: 4 Top Gainers
The first-half 2019 chapter is about to conclude, and it reads as an eventful year for the Hotel industry. Year to date, the industry has witnessed a sharp gain of 24.2%, compared with the S&P 500 and Dow Jones Industrial Average rally of 14.9% and 15%, respectively.
The industry participants have been benefiting from several factors such as strong domestic economy, higher income, increased consumer confidence and strong labor market.
RevPAR & ADR Growth Continues
During first-quarter 2019, the Hotel industry reported growth in RevPAR and ADR. Per a STR (formerly known as Smith Travel Research) report, in first-quarter 2019, the U.S. hotel industry reported revenue per available room (RevPAR) and ADR growth of 1.5% and 1.1%, respectively. Moreover, occupancy rate in the first quarter increased 0.4% to 61.8%. The industry witnessed rise in occupancy rate across all sectors, from luxury to economy.
The supply-demand environment in the United States has been favorable since 2010 with growth in demand outpacing supply growth. Though, the gap between demand and supply growth has narrowed considerably of late. Demand in first-quarter 2019 increased 2.4%, outpacing supply growth of 2%.
International Expansion: A Key Catalyst
Most of the hotel companies are exploring international expansion, especially in untapped emerging markets and the outlying areas surrounding major cities. Unsaturated markets in the Asia Pacific, the Middle East, Brazil, Russia and Africa are being targeted by hospitality companies. China, which is the largest source market for outbound travel, is the most significant market for the Hotel industry. In less than two decades, China has transformed from travel minnows to the world’s most powerful outbound market.
Per GlobalData, luxury hotels in the United States are likely to increase to 1,067 by the end of 2019. By 2022, the figure is likely to increase to 1,123. The Hotel industry will benefit from increase in Chinese tourists to the United States. Chinese tourists to the United States witnessed a CAGR of 8.7% between 2014 and 2018.
The aforementioned factors have propelled the Hotel stocks so far this year. We have mentioned four stocks from the industry, which have witnessed a sharp gain so far this year.
Top 4 Gainers
Marriott Vacations Worldwide CorporationVAC: The company develops, markets, sells, and manages vacation ownership and related products. The Zacks Rank #3 (Hold) company’s shares have surged 36.8% on a year-to-date basis. Earnings for current year is likely to witness growth of 31.3%. Moreover, its long-term earnings are estimated to witness growth of 9%. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hilton Worldwide Holdings Inc.HLT: The company owns, leases, manages, develops, and franchises hotels and resorts. Shares of this Zacks Rank #3 company have gained 34.4% year to date. The company beat the consensus estimate for earnings in three of the trailing four quarters, with the average being 5.6%. it anticipates earnings for 2019 to improve by 39.1%.
Marriott International, Inc.MAR: The company operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company shares have surged 27.4% year to date. Moreover, the company’s earnings have surpassed the consensus estimate in all of the trailing four quarters, with an average positive surprise of 16.3%.
Wyndham Hotels & Resorts, Inc.WH: The company operates as a hotel franchisor internationally. The stock has gained 23.2% year to date. The Zacks Rank #3 company’s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with the average being 3%. The company’s earnings for current year is likely to witness growth of 17.3%.
Can the Bull Run Continue?
RevPAR and ADR improvement is likely to persist in the second half of 2019 as well albeit at a slower rate. STR and Tourism Economic have trimmed growth forecast for the Hotel industry. Per STR and the latest Tourism Economic forecast, the Hotel industry is likely to witness growth of 2%, down from the prior estimate of 2.3%. We believe the industry’s bull run in the second half of 2019 is likely to be impacted by slower growth forecast.
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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 reportMarriott International (MAR) : Free Stock Analysis ReportHilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis ReportMarriot Vacations Worldwide Corporation (VAC) : Free Stock Analysis ReportWyndham Hotels & Resorts Inc. (WH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Polish payment system Blik could be available on Netflix, Uber: PPS CEO
(This June 28 story corrects after clarification from the company that acceptance of the system by these platforms is not certain.)
By Alan Charlish
WARSAW (Reuters) - Platforms such as Netflix, Uber and other companies could soon be able to accept payments using Poland's Blik, according to the chief executive of Polish Payment Standard (PPS), the company behind the system.
PPS, created by a partnership of six Polish banks, has embedded Blik in mobile banking apps and allows users to pay online or in stores, withdraw money at ATMs and make transfers.
The payments industry has undergone a major shake-up in recent years, with consolidation as major players adapt to rapidly developing technology and changing consumer habits.
PPS CEO Dariusz Mazurkiewicz hopes introducing the system on to sites like Netflix, through two partnerships which are due to be announced soon, will help it expand internationally.
"Enlarging the scope of our activity with this kind of player ... means that we are building a very interesting acceptance network, not only for Polish bank customers, it might be any other bank customer," Mazurkiewicz told Reuters.
"The next step will be to invite banks from other countries and this is why we want to concentrate our efforts right now on our region, central Europe," Mazurkiewicz said.
PPS also aims to sell its software to countries where it does not plan to launch it under the Blik brand and is in talks to sell the system to companies in two other markets, one in Africa and one in Latin America, Mazurkiewicz said.
Last year PPS announced a partnership with Mastercard which Mazurkiewicz said means it will start to offer contactless payments from the second half of 2019.
Mazurkiewicz said PPS was not considering an initial public offering and declined to comment on its valuation.
Since its launch in 2015 Blik has seen strong growth in Poland, a country of 38 million people, with the number of transactions rising from around 2 million to 91 million in 2018.
"It's just tripled from one year to another and ... we think that we will stick to this triple growth from one year to another in 2019," Mazurkiewicz said.
(Reporting by Alan Charlish; Editing by Alexander Smith) |
Is New Age Beverages Stock Taking a 60% Hit?
There's a bear in theNew Age Beverages(NASDAQ: NBEV)camp, and this one is a Grizzly. The distributor of functional beverages came under attack this week in a Grizzly Researchreport, which argued that New Age Beverages investors were duped in the acquisition of the larger Morinda Holdings late last year.
The noted worrywart claims that Morinda overstated its revenue in China, is likely operating illegally in 60% of the provinces there, and could be facing Chinese regulatory shutdowns. Grizzly Research also calls into question the poor track record of New Age Beverages' CEO, the costly licensing deal it has in place for its Bob Marley-inspired line of ready-to-drink beverages, and its disappointing recent financials. The report concludes that the stock could shed 60% of its value at this point, more than wiping out last year's monster gain.
Image source: New Age Beverages.
New Age Beverages more than doubled for investors last year, surging late last summer after announcing that it would beintroducing a line of CBD-infused drinksat an industry trade show. Investors chasing the handful of publicly traded marijuana-related stocks took a brief shine to New Age Beverages after that.
The legality of CBD is as hazy as its benefits, but there's no denying that cannabidiol is trending. New Age Beverages announced last week that its rolling out CBD products in Hong Kong, its first major international expansion. It also announced an expanded licensing agreement with the family of Bob Marley and Docklight Brands to help it push into new markets as well as introduce new products. Whether or not Grizzly Research's knocks on thecash-and-stock Morinda dealare valid, it has helped open new distribution outlets for New Age Beverages' earlier product lines overseas.
The bearish report's claim seem scathing at first glance, but in the spirit of balance, Compass Point analyst Rommel Dionsio did initiate coverage of New Age Beverages with a buy rating earlier this month. His$9 price targetsuggests that the stock can double from current levels. Both sides can't be right, though given the stock's volatility, it wouldn't be a shock if it did manage to shed more than half of its value as well as double later this year.
We'll learn who was right in the coming quarters. If Grizzly Research is right about Morinda peaking last year, we'll see it in the coming quarters. Many of its China-based claims will either bubble to the surface or go away. New Age Beverages did get riskier following this scathing takedown, but it's already defending itself against the claims that were raised. There's never a dull moment for New Age Beverages.
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GulfSlope Energy Launches Shallow Prospect Program
GulfSlope executes Letter of Intent to form joint venture related to shallow depth prospects located in the Gulf of Mexico Shelf
HOUSTON, TX / ACCESSWIRE / June 28, 2019 / GulfSlope Energy, Inc. (GSPE) ("GulfSlope" or the "Company")today announced the execution of a letter of intent with a privately held oil and gas company (the "Partner") to form a joint venture to generate and drill shallow depth prospects in the Gulf of Mexico (the "Joint Venture"). GulfSlope will retain and deploy a supra salt evaluation team consisting of three geoscientists and a manager (the "Evaluation Team") to identify, evaluate and recommend targets for lease acquisition, farm-in and drilling. GulfSlope will serve as Operator and will be compensated for the management and administration of the Joint Venture as well as reimbursed for direct G&A costs incurred on behalf of the Joint Venture. The Partner will have the right to participate up to 50% in the drilling of the shallow depth prospects generated and developed by the Evaluation Team. Additionally, subject to specific performance criteria, the Partner will be granted an option to participate in the Company's Corvette Prospect on a promoted basis.
"We are excited about the opportunity to be part of this Joint Venture and it represents a natural complement to our existing subsalt exploration program," stated John Seitz, Chairman and CEO of GulfSlope. He added "Our participation in this Joint Venture will allow us to leverage our proprietary reprocessed seismic data by pursuing supra salt prospects that have been overlooked by industry."
The intent is to enter into Definitive Agreements for the Joint Venture on or before August 31, 2019, which will have an initial term of one year, with the option to renew for an additional one year term.
About GulfSlope Energy
GulfSlope Energy is an independent oil and natural gas company focused on exploring offshore U.S. Gulf of Mexico. To learn more, visit the GulfSlope Energy website atwww.GulfSlope.com.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts included in this press release are forward-looking statements. The Company can give no assurances that the assumptions upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. There are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from the forward-looking statements. A detailed discussion of possible risks is included in "Risk Factors" included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 31, 2018. Except as otherwise required by the federal securities laws, the Company disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this press release to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Contacts:
Al Petrie AdvisorsAl PetriePhone: 504-258-9548Email:al@alpetrie.com
GulfSlope Energy, Inc.John H. Malanga, CFOPhone: 281-918-4103Email:john.malanga@gulfslope.com
SOURCE:GulfSlope Energy, Inc.
View source version on accesswire.com:https://www.accesswire.com/550198/GulfSlope-Energy-Launches-Shallow-Prospect-Program |
Jony Ive helped make Apple what it is today
On Thursday, Apple confirmed thatJony Ive is leavingafter nearly 30 years at the company. He's starting his own creative business called LoveFrom, with Apple being his first client. The news reverberated through the tech and business world like a shockwave, sending journalists and Apple pundits into a titter while the company's stock price slumped. And it's no wonder; Jony Ive was no ordinary employee. Ive has been behind some of the most iconic designs in Apple's history, helping transform a Silicon Valley has-been into one of the most successful companies in the world.
When Ive joined Apple in 1992, Apple was struggling, no longer the tech darling it once was back in the '80s. Steve Jobs had been out of the company for seven years at that point, and it had become a shell of its former self. One of Ive's first-ever projects for Apple was to design theLindy MessagePad 110(a follow-up tothe Newton) -- he added a spring-loaded cover and integrated a stylus at the top of the device. The design ended up winning a slew of awards, and is even on display at the San Francisco Museum of Modern Art, despite the device itself being a commercial failure.
It wasn't until Jobs returned to Apple that Ive's designs really took off. Jobs appointed Ive as Apple's senior vice president of industrial design, and the two embarked on a creative partnership that would last decades. "By re-establishing the core values [Jobs] had established at the beginning, Apple again pursued a direction which was clear and different from any other company," Ive said in an interview with theDesign Museum. "Design and innovation formed an important part of this new direction."
That was certainly the case with the 1998iMac G3, which was Ive's breakout moment. Unlike the boring boxy PCs of its day, the iMac G3 was curved. Instead of beige, it came in multiple colors. (The first was "Bondi Blue," named after Australia's Bondi Beach.) You could see through it thanks to its translucent plastic. In a controversial move, it even did away with the floppy disc drive and legacy ports (sound familiar?). While some complained about that, it was a daring design that shook up the world of personal computing. Apple didn't know it at the time, but that colorful, playful iMac would help turn the company around, setting the stage for its now famous comeback.
Another big success was the design of theiPod, which was the brainchild of Steve Jobs and then-head of hardware Jon Rubinstein, along with Ive and Tony Fadell (who went on to found Nest). Ive is broadly credited with its now-iconic all-white design; even the earbuds and charging cables were white. The design was unique and unlike the mostly black and silver electronics of the day. His design team even went through great pains to design the packaging, which was a novelty in the consumer electronics industry back then. It was this attention to detail that elevated Ive at Apple, and it's why Jobs greatly valued his insight. Jobs fondly referred to Ive as his "spiritual partner" and Ive's role at Apple became more important than ever.
Apple's most impactful product, however, was theiPhone. This too, was an Ive design. Instead of a smartphone laden with the familiar keypad, Apple wanted a minimalist, elegant form factor that used a touchscreen as its main interface. The company had to get people comfortable with the idea of a phone without a keyboard or buttons, and Ive's approachable, rounded design paired perfectly with the software to help do that. No, it wasn't the first touchscreen phone on the market, but it was one of the few that was easy to use. And, just like the iPod, the iPhone revolutionized an entire industry. Apple, with the help of Ive, had done it once again.
Other successes soon followed, such as the iPad, the MacBook Air, and the Apple Watch, with Ive's design aesthetic changing and evolving over the years. He was also hugely influential in Apple's software design -- Ive famously took over from Scott Forstall as the design lead for iOS in 2012 when he became the newhead of Human Interface. He got rid of the tired skeuomorphic designs (where digital objects resemble their real-life counterparts) in favor of a flatter, cleaner aesthetic that still influences Apple's entire product line today. That's not to say that Ive hasn't been involved with a few commercial failures -- theiPod Hi-Fiand thePowerMac G4 Cubewere beautiful flops -- but there's no doubt that Ive was instrumental in the rise of Apple as a design and tech powerhouse.
"We're surrounded by anonymous, poorly made objects," said Ive in aTimeinterview. "It's tempting to think it's because the people who use them don't care -- just like the people who make them. But what we've shown is that people do care. It's not just about aesthetics. They care about things that are very thoughtfully conceived and well made. We make and sell a very, very large number of (hopefully) beautiful, well-made things. Our success is a victory for purity, integrity -- for giving a damn."
When Jobs passed away in 2011, many saw Jony Ive as his spiritual successor. Even though CEO Tim Cook was now in charge, Ive, it seemed, was still leading the way in terms of product design and overall vision. For a company that built its reputation on design, it's no surprise that Ive had such a powerful role within it.
But that seems to have waned a little over the years. In 2015, Ive was given the title of Chief Design Officer, where he gave up a lot of his day-to-day managerial duties. He seems to havepicked the job back upin 2017, in part perhaps, because his work on the spaceship-shapedApple Campushad come to an end -- but it remains a mystery as to whether there were other reasons for the move.
Now, Ive is gone from Apple, leaving behind an enormous legacy that will be incredibly difficult for his successors to live up to. Ive was inextricably tied to Jobs' and Apple's comeback, and therefore to the company's meteoric rise to where it is today. Ive's departure also marks a recent shift in Apple's priorities, as it moves increasingly towardsoftwareandservicesas a source of revenue. Of course, Ive said he and his design firm will continue to work with Apple, but his leaving is still, unquestionably, the end of an era.
Images: Apple (iMac, iPhone); BRITTANY HOSEA-SMALL via Getty Images (Cook & Ive with Mac Pro) |
OSK vs. WBC: Which Stock Should Value Investors Buy Now?
Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Oshkosh (OSK) and Wabco Holdings (WBC). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Oshkosh and Wabco Holdings are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that OSK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
OSK currently has a forward P/E ratio of 10.63, while WBC has a forward P/E of 17.30. We also note that OSK has a PEG ratio of 0.92. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WBC currently has a PEG ratio of 1.15.
Another notable valuation metric for OSK is its P/B ratio of 2.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WBC has a P/B of 5.04.
These are just a few of the metrics contributing to OSK's Value grade of A and WBC's Value grade of C.
OSK stands above WBC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OSK is the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportOshkosh Corporation (OSK) : Free Stock Analysis ReportWabco Holdings Inc. (WBC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Is Middlesex Water (MSEX) Stock Outpacing Its Utilities Peers This Year?
Investors focused on the Utilities space have likely heard of Middlesex Water (MSEX), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.
Middlesex Water is one of 123 individual stocks in the Utilities sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. MSEX is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for MSEX's full-year earnings has moved 5.85% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, MSEX has gained about 9.62% so far this year. Meanwhile, stocks in the Utilities group have gained about 13.48% on average. This means that Middlesex Water is outperforming the sector as a whole this year.
Looking more specifically, MSEX belongs to the Utility - Water Supply industry, a group that includes 14 individual stocks and currently sits at #89 in the Zacks Industry Rank. This group has gained an average of 25.17% so far this year, so MSEX is slightly underperforming its industry in this area.
MSEX will likely be looking to continue its solid performance, so investors interested in Utilities stocks should continue to pay close attention to the company.
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 reportMiddlesex Water Company (MSEX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
BSRR vs. CVBF: Which Stock Should Value Investors Buy Now?
Investors with an interest in Banks - West stocks have likely encountered both Sierra Bancorp (BSRR) and CVB Financial (CVBF). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Sierra Bancorp has a Zacks Rank of #2 (Buy), while CVB Financial has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BSRR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BSRR currently has a forward P/E ratio of 11.64, while CVBF has a forward P/E of 14.32. We also note that BSRR has a PEG ratio of 1.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CVBF currently has a PEG ratio of 1.51.
Another notable valuation metric for BSRR is its P/B ratio of 1.41. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CVBF has a P/B of 1.57.
These metrics, and several others, help BSRR earn a Value grade of A, while CVBF has been given a Value grade of C.
BSRR has seen stronger estimate revision activity and sports more attractive valuation metrics than CVBF, so it seems like value investors will conclude that BSRR is the superior option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportSierra Bancorp (BSRR) : Free Stock Analysis ReportCVB Financial Corporation (CVBF) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Why Is PVH (PVH) Up 10.4% Since Last Earnings Report?
It has been about a month since the last earnings report for PVH (PVH). Shares have added about 10.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PVH due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
PVH Corp Beats on Q1 Earnings EstimatesPVH Corp delivered mixed first-quarter fiscal 2019 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues marginally missed the same. With this, the company delivered 20th straight quarter of bottom-line beat.However, management provided dull earnings view for both second-quarter and fiscal 2019. Adjusted earnings per share (EPS) are envisioned in the band of $10.20-$10.30 for the fiscal year, down from the earlier guided range of $10.30-$10.40. Additionally, foreign currency remains a headwind in fiscal 2019. Both GAAP and non-GAAP earnings projections include negative impacts of roughly 32 cents per share.For the second quarter, adjusted EPS is expected to be $1.85-$1.90, down from $2.18 in the year-ago quarter. Management stated that the tough and volatile macroeconomic environment continued into the fiscal second quarter along with soft U.S. and China retail environment.Q1 HighlightsPVH Corp’s adjusted EPS came in at $2.46, which included adverse currency impacts of 15 cents. The bottom line grew nearly 4.2% year over year and surpassed the Zacks Consensus Estimate of $2.44. The metric also outshined the company’s guided range of $2.40-$2.45.On a GAAP basis, the company delivered earnings of $1.08 per share, down 52.8% from $2.29 registered in the year-ago quarter. However, the reported figure significantly outperformed management’s guidance of 25-30 cents.In the fiscal first quarter, revenues inched up 2% to $2,356.3 million driven by growth at its Tommy Hilfiger and Heritage Brands segments, offset by flat revenues at Calvin Klein. On a constant-currency (cc) basis, revenues registered an improvement of 6%. However, the top line marginally missed the Zacks Consensus Estimate of $2,368 million.The company’s total gross profit inched up 0.4% to $1,295.9 million, while gross margin contracted 80 basis points (bps) to 55%. Nonetheless, adjusted EBIT was up 6.4% to $267 million including adverse currency impacts of nearly $14 million. Adjusted EBIT growth was mainly backed by improvements in the Calvin Klein and Tommy Hilfiger businesses.Segment AnalysisPVH Corp reports its financial results under three segments — Calvin Klein, Tommy Hilfiger and Heritage Brands.Revenues atCalvin Kleinremained flat year over year at $890 million (up 4% at cc). The segment’s International revenues fell 2% to $466 million (up 5% at cc). Robust growth in Europe was more than offset by the adverse impacts of currency and weakness in China. Also, International comparable store sales (comps) declined 4%. However, the segment’s North America revenues were up 2% to $424 million (up 3% at cc), owing to growth at its wholesale business, somewhat offset by a 5% fall in comps.Revenues at theTommy Hilfigersegment improved 4% to $1.1 billion (up 9% at cc). International revenues at the segment increased 4% to $680 million (up 12% at cc). The improvement was driven by a stellar performance in Europe and comps growth of 9%. Additionally, the segment’s North America business witnessed 3% revenue growth to $372 million (up 3% at cc), backed by growth in its wholesale business. However, the upside was somewhat offset by a 4% comps decline.TheHeritage Brandssegment’s revenues rose 1% year over year to $415 million driven by growth at the wholesale business. However, comps at the segment declined 6%.Share RepurchasesIn first-quarter fiscal 2019, PVH Corp bought back roughly 500,000 shares for $61 million, under its $2-billion buyback authorization, through Jun 3, 2023. Since its inception, the company has repurchased nearly 9.5 million shares for $1.1 billion as part of its commitment to return value to its shareholders.FY19 GuidanceManagement’s guidance for fiscal 2019 includes the assumption that two of the company’s pending buyouts — Gazal Corporation Limited and the TH CSAP — will be completed in second-quarter fiscal 2019. Backed by these businesses, revenues for the fiscal year are projected to increase by almost $150 million.During fiscal 2019, the company projects revenues to increase about 3% (up 5% at cc) compared with 4% growth predicted earlier. Brand-wise, revenues are anticipated to increase roughly 6% at Tommy Hilfiger. Further, revenues are expected to remain flat at Calvin Klein and Heritage Brands. At Tommy Hilfiger and Calvin Klein revenues are likely to grow a respective 9% and 2% at cc. Earlier, management expected revenues to increase roughly 6%, 2% and 3% for Tommy Hilfiger, Calvin Klein and Heritage Brands businesses, respectively. At cc, the metric at Tommy Hilfiger and Calvin Klein was projected to grow 8% and 3%, respectively.Net interest expenses are expected to grow nearly $120 million, up from $116 million incurred in fiscal 2018. Further, adjusted effective tax rate is projected in the band of 14-15%.GAAP EPS is projected to be $9.05-$9.15 compared with the previous projection of $8.90-$9.00. In fiscal 2018, PVH Corp reported GAAP EPS of $9.65.Q2 GuidanceFor second-quarter fiscal 2019, the company expects total revenues to remain flat year over year (up 2% at cc). Brand-wise, revenues are expected to increase 3% (up 6% at cc) at Tommy Hilfiger. However, the metric is likely to decline 4% (down 2% at cc) at Calvin Klein, and 2% at Heritage Brands.Net interest expenses are anticipated to decline to roughly $28 million in the fiscal second quarter. The adjusted effective tax rate for the quarter is anticipated in the range of 21.5-22.5%.On a GAAP basis, the company envisions EPS in the range of $2.75-2.80 versus $2.12 in the prior-year quarter. Notably, GAAP and adjusted earnings guidance include an anticipated adverse impact of nearly 6 cents from foreign currency.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -21.2% due to these changes.
VGM Scores
At this time, PVH has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise PVH has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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 reportPVH Corp. (PVH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Has Alteryx (AYX) Outpaced Other Computer and Technology Stocks This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Alteryx (AYX) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Alteryx is a member of our Computer and Technology group, which includes 634 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. AYX is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AYX's full-year earnings has moved 208.67% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that AYX has returned about 80.81% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of 18.68%. This means that Alteryx is performing better than its sector in terms of year-to-date returns.
To break things down more, AYX belongs to the Internet - Software industry, a group that includes 83 individual companies and currently sits at #101 in the Zacks Industry Rank. This group has gained an average of 32.16% so far this year, so AYX is performing better in this area.
Investors in the Computer and Technology sector will want to keep a close eye on AYX as it attempts to continue its solid performance.
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 reportAlteryx, Inc. (AYX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Meghan wouldn't have been given any preparation for joining the Royal Family, says Paul Burrell
Meghan Markle wouldn’t have been given any preparation when she joined the Royal Family last May, according to Princess Diana’s former butler. Paul Burrell, 61, who worked with Diana from 1987 until her death a decade later, told Yahoo UK ’s ‘ The Royal Box ’: “Would you believe there is no rule book? There is no etiquette lesson, there are no advisors. Nobody prepares people coming into the Royal Family. “I think that’s where it’s gone wrong in the past. Not even Diana was given tuition into entering the Royal Family.” It’s widely believed that Diana, who was just 20 when she married Prince Charles in 1981, found it difficult to adjust to life in the Royal Family. Burrell says that newcomers “have to rely on their partners to teach them the way forward,” like William and Harry have with their wives Kate and Meghan. He advised: “It would be good for people coming into the Royal Family to have an overplan of the royal year.” READ MORE: Harry and Meghan reveal baby Archie will join them on South Africa tour this autumn Meghan on her first royal engagement with Harry in Nottingham in November 2017. [Photo: Getty] California-born Meghan moved to the UK just a few months before her wedding to Prince Harry in May 2018. While she has reportedly ‘broken royal protocol’ on occasion, the duchess has been hailed as a ‘breath of fresh air’ for the Royal Family. The only thing Meghan may have to be careful with in future is not to express her views or beliefs when it comes to issues that err on the side of being political, according to Burrell. He says: “What comes with maturity is a set of beliefs and they don’t always sit well with the Royal Family. She [Meghan] has to toe the party line.” READ MORE: 'Prince Harry envied Prince William for so long' Meghan and Harry at Trooping the Colour. [Photo: PA] While the Queen has always remained impartial, heir to the throne Prince Charles has been lambasted in the past, for lobbying the government on issues such as farming, global warming and architecture. The Duke of Cambridge also recently addressed Brexit during a recent trip to Cumbria, asking farmers if it had affected them. Story continues Prince Charles’ former butler Grant Harrold previously told The Royal Box last year that new members of the royal family usually learn royal etiquette by watching practiced members. Harrold said: “Meghan will learn from the other members of the royal family, which will be following them round, and copying the way they do things. “She’s got a wonderful sister-in-law for this, and of course the Queen, because the Queen is the perfect member of the family to follow.” |
U.S. Supreme Court takes up Trump bid to end 'Dreamers' immigration program
WASHINGTON, June 28 (Reuters) - The U.S. Supreme Court on Friday agreed to decide whether President Donald Trump acted lawfully when he moved to end a program that shields from deportation hundreds of thousands of immigrants who were brought to the country illegally as children, a key part of his hardline immigration policies.
The nine justices took up the Trump administration's appeals of three lower court rulings that blocked his 2017 move to rescind the Deferred Action for Childhood Arrivals (DACA) program implemented in 2012 by his Democratic predecessor Barack Obama. The program currently protects about 700,000 immigrants often called "Dreamers," mostly Hispanic young adults, from deportation and provides them work permits, though not a path to citizenship.
The program has remained in effect despite Trump's efforts to rescind it, part of his hard-line immigration policies that have become a prominent feature of his presidency and his 2020 re-election campaign. Trump has backed limits on legal and illegal immigration and has sought construction of a wall along the U.S.-Mexican border since taking office in January 2017.
The legal question before the Supreme Court was whether the administration properly followed a federal law called the Administrative Procedure Act in Trump's plan to end DACA.
Three federal district court judges issued orders halting Trump's move to end DACA in lawsuits challenging the move filed by a group of states, people protected by the program, rights groups and others. The Trump administration has argued that Obama exceeded his constitutional powers when he bypassed Congress and created the program.
Trump announced his decision to rescind DACA in September 2017, planning for the Dreamers' protections to begin phasing out in March 2018. But courts in California, New York and the District of Columbia directed the administration to continue processing renewals of existing DACA applications while the litigation over the legality of Trump's action was resolved.
Obama created DACA by executive action in 2012 as what he called "a temporary stop-gap measure" after the failure in Congress of bipartisan legislation called the Dream Act that would have provided a path to citizenship to young immigrants brought by their parents illegally into the country as children, sometimes as infants.
When he created the DACA, Obama said that the people it protected were raised and educated in the United States, grew up as Americans in their hearts and minds, and may known little about their countries of origin. Under DACA, those eligible are protected from deportation and given work permits for two-year periods, after which they must re-apply.
The Trump administration said Trump possesses the authority to end a program implemented by a previous president, acted lawfully in seeking to rescind it and that courts should have no say in the matter.
Lawsuits challenging Trump's action were filed in various courts by a group of states including California and New York, individual DACA recipients, the University of California, civil rights groups, labor unions and Microsoft Corp, which expressed concern its own employees would be affected.
Since the administration launched its appeal, a second regional federal appeals court ruled against Trump. The Richmond, Virginia-based 4th U.S. Circuit Court of Appeals ruled on May 17 that Trump's rescission of DACA was unlawful.
The San Francisco-based 9th U.S. Circuit Court of Appeals on Nov. 8 upheld federal judge William Alsup's January 2018 ruling against Trump, saying the challengers provided evidence of "discriminatory motivation, including the rescission order's disparate impact on Latinos and persons of Mexican heritage."
During the Supreme Court's inaction, Trump and Congress have made no progress toward reaching a deal to safeguard DACA recipients even as Democratic presidential candidates including front-runner Joe Biden pledge actions to protect the Dreamers and offer them citizenship.
The Supreme Court in February 2018 rejected an earlier Trump administration appeal in the California case.
(Reporting by Lawrence Hurley; Editing by Will Dunham) |
Zambian court lifts order blocking disposal of Vedanta unit assets
By Chris Mfula
LUSAKA (Reuters) - A Zambian court on Friday lifted an order blocking a provisional liquidator at Vedanta's Konkola Copper Mines (KCM) business from disposing of assets or making arrangements with creditor until a July 4 hearing.
The decision by the High Court is the latest twist in a dispute between Vedanta and the Zambian government, which says KCM breached the terms of its operating licence.
Vedanta has denied that claim, and has said it will protect its assets in Zambia, Africa's second-biggest copper producer.
The case has intensified concerns among international miners about resource nationalism in Africa.
Vedanta confirmed that the order to stay the powers of the liquidator had been lifted until the July 4 hearing.
"Vedanta remains committed to resolving the current situation in the best interests of all parties involved. The company reiterates its appeal to the government of Zambia to discuss the matter face-to-face," the company said.
State-owned Zambian radio reported that lawyers for Zambia's mining investment arm, which owns a minority stake in KCM, had argued in court that the earlier order was irregular.
Zambia has also locked horns with international miners over tax changes which the miners say will deter investment.
The tax changes are part of a plan for Zambia to keep a greater share of mineral resource profits and tackle a mounting debt burden.
Zambian Finance Minister Margaret Mwanakatwe said on Friday that she was delaying the implementation of a new sales tax - one of the tax changes that will affect miners - from July 1 to Sept. 1.
(Reporting by Chris Mfula; Writing by Alexander Winning; Editing by Jan Harvey and Louise Heavens) |
The U.S.'s New Missile Will Counter Chinese Fighters
Photo credit: Paul Weatherman From Popular Mechanics The U.S. has been quietly working on a new air-to-air missile meant to out-stick next generation Chinese and Russian missiles. The existence of the AIM-260, or Joint Advanced Tactical Missile, was revealed last week, with the expectation for the missile to enter service in 2022. Air Force Weapons Program Executive Officer Brig. Gen. Anthony Genatempo revealed the existence of the Joint Advanced Tactical Missile to reporters, stating that it had been under development since 2017. Flight tests will begin in 2021 and the missile is expected to reach initial operational capabilitya point at which the missile will start reaching fighter unitsin 2022. Genatempo, as reported by Air Force Magazine , described JATM as a next air-to-air air dominance weapon for our air-to-air fighters. The missile will initially arm the F-22 Raptor, equipping the main weapons bay, and the Navys F/A-18E/F fighter jets. Deployment on the F-35 Joint Strike Fighter will follow, but the missile will skip older generation jets such as the F-15 Eagle and F-16 Fighting Falcon, both of which will still be around in the 2020s. Photo credit: U.S. Air Force photo by Airman 1st Class Caitlin Russell The Air Force describes JATM as having a range greater than the existing AMRAAM missile (top). The AMRAAM, also known as the Slammer, is the militarys medium to long range air-to-air missile. In 2016, a Navy official admitted that the Pentagon was probably close to maxing (AMRAAM) out. Fighter jets typically carry two types of missiles: short-range, infrared-guided missiles like the American AIM-9X Sidewinder, and long-range, radar-guided missiles such as AMRAAM. The missile has been in service since the 1980s, gradually upgraded as technology advances. The latest versions range is classified but thought by experts to be somewhere around 75 to 100 miles. Unlike most fighters, which carry a mix of missile types to fit the missile, the F-35 carries only AMRAAM missiles. New Chinese and Russian advances in air-to-air missile technology are driving the development of JATM. The Chinese PL-15 arms the new Chengdu J-20 fighter and is thought to be a very long range air-to-air missile thought to have a maximum range of 124 miles . The PL-15 is designed to go after tankers and airborne warning and control aircraft that enable U.S. fighters and bombers to operate at long ranges. Knocking these down, or forcing them to fly farther behind friendly lines, would deal a major blow to U.S. airpower. Story continues Photo credit: VCG - Getty Images The Pentagon says the JATM will go from the beginning of the development stages to IOC in just six years, a minor miracle in defense procurement. Such a short schedule suggests some part of development had already taken place under a different, classified program or the missile borrows heavily from an existing one. ('You Might Also Like',) This Device Can Send Messages Without Cell Service The Best Portable BBQ Grills for Cooking Anywhere The Best Video Game the Year You Were Born |
Meghan Markle's lavish baby shower received backlash, but she 'doesn't regret' it
Meghan Markle knows her lavish Manhattan baby shower raised eyebrows, but months later, she's not second-guessing it. "She doesn't regret the baby shower in NYC that got so much backlash," Us Weekly reports of the February shower. "She doesn't regret celebrating her baby or doing it in NYC." Baby showers aren't customary in the United Kingdom, but the Duchess of Sussex is, of course, an American, and most of her friends are too. Tennis champ Serena Williams hosted the swanky affair, which reportedly totaled a $200,000 bill. Williams footed the bill for a $75,000 penthouse hotel suite at The Mark and friends split the rest. Perhaps anticipating outcry from British taxpayers should Meghan utilize certain royal amenities, she traveled to the States on a private jet that a friend personally lended to her. PHOTOS: Guests arrive at Duchess Meghan's baby shower Several royal insiders were politely dismayed by the affair, including the Queen's former spokesman, Dickie Arbiter: "It was a bit over the top in terms of expense and the way she got there," he admitted , noting that baby showers in general are "very much an American thing." Although Meghan wasn't reprimanded for the shower, she was "made aware" that her "big, flashy" event strayed from the norm. And her sister-in-law, Kate Middleton, was not present for the shower, fueling the rumor mill with more reports of a feud between the two Duchesses. That said, her friends have made it clear that they just wanted the day to be as enjoyable as possible for the Duchess, who has suffered her fair share of negative press during her first year as a royal. Among the guests were Amal Clooney and Gayle King. "I'm a perfectionist, so I'm like, 'Let's make it perfect,'" Williams said of planning the shower . The Duchess will likely return the friendship favor with a visit to Wimbledon this summer to watch Williams compete. |
Friday’s Vital Data: Nike, Boeing and iQiyi
U.S. stock futures are trading higher this morning to extend yesterday's rally.Heading into the open, futures on the Dow Jones Industrial Average are up 0.06%, and S&P 500 futures are higher by 0.11%. Nasdaq-100 futures have added 0.31%.In the options pits, put trading sank like a stone yesterday reflecting a quick departure of fear in the market. Total volume ended well below average with around 16 million calls and 11.8 million puts changing hands on the session. The sharp drop in put demand drove the CBOE single-session equity put/call volume ratio down to 0.58. At the same time, the 10-day moving average dropped to a fresh two-month low at 0.60.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOptions trading was hopping in these the following stocks. Nike (NYSE:NKE) saw renewed options interest ahead of last night's earnings announcement. Boeing (NYSE:BA) shares fell almost 3% after U.S. authorities uncovered another issue with the company's 737 MAX jet. Finally, Iqiyi Inc (NASDAQ:IQ) was flooded with call demand after the Beijing-based internet company scored an award at an industry event in China.Let's take a closer look: Nike (NKE)Last night's earnings announcement from Nike was much ado about nothing. At least, that's the message from the stock's reaction. After a quick bout of volatility following the release, NKE stock is set to open unchanged this morning. For the quarter, Nike earned 62 cents a share on revenue of $10.18 billion. Analysts were calling for earnings of 66 cents a share on $10.16 in revenue.Nike's price chart has traveled a circuitous route to nowhere for the past five months. The long-term trend continues to point higher, but the short- and intermediate-term trends have downshifted to neutral. Until NKE can finally depart from the sloppy trading range, trend traders will likely find better trades elsewhere. * 10 Small-Cap Stocks That Look Like Bargains The snoozer of a reaction should bring big profits to option sellers at the open. Premiums were anticipating a move of $3.95 or 4.7%, so options prices should rapidly recede right out of the gate. Ahead of the release, puts outpaced calls by a slim margin. Total activity soared to 689% of the average daily volume, with 127,382 contracts traded. Boeing (BA)Just when you thought it was safe to wade back into the waters, another negative news headline drops for Boeing. Shares of the aerospace juggernaut opened 2% lower Thursday after the Federal Aviation Administration discovered a new flaw in the company's 737 MAX jet. The company will have to solve the issue before its grounded airplanes can return to service.You can find more details on the story here.The timing of the find couldn't have been worse for traders. With this month's upside breakout, BA stock was looking its healthiest since February. The recent high base was on the cusp of breaking out just yesterday and likely sucked in a ton of bulls that are now trapped with Thursday's down gap. The whole fakeout has cast a pall over the stock and suggests would-be buyers should steer clear for now.On the options trading front, we saw a mad dash for put protection throughout the day. Total activity jumped to 228% of the average daily volume with 154,783 contracts traded. Puts accounted for 57% of the session's sum.The increased demand drove implied volatility up to 29%, which places it at the 31st percentile of its one-year range. Premiums are baking in daily moves of $6.70 or 1.8%. iQiyi (IQ)IQiyi shares rocketed 10% higher after the online video platform provider won the "Mobile Internet Innovation Pioneer Award" at the Mobile World Congress event in Shanghai, China. For the full rundown, see here.The rally breathed new life into the sagging stock, pushing it to a fresh six-week high. Most importantly, it halted IQ stock's downtrend and breached multiple resistance zones, including the oft-watched 50-day moving average. Bullish trades are finally back on the menu. * 7 Stocks on Sale the Insiders Are Buying On the options trading front, traders went cuckoo for call options. Activity swelled to 629% of the average daily volume, with 107,013 total contracts traded; 78% of the trading came from call options alone.Implied volatility jumped to 56% pushing it to the 16th percentile of its one-year range. Premiums are now pricing in daily moves of 71 cents or 3.5%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential Compare Brokers The post Friday's Vital Data: Nike, Boeing and iQiyi appeared first on InvestorPlace. |
Graphic: The best first half for financial markets ever
By Marc Jones
LONDON (Reuters) - What a six months for financial markets. Global equities have piled on $8 trillion, bonds are on fire, oil prices have surged by almost a quarter and a Greek bank is one of the world's best performing stocks.
Everything added together it may well be the best first half of a year ever and one that not even the most wily investor would have predicted after the dire end to 2018 and what has happened since.
The world's two top economies are slugging it out in a full-blown trade war and the recession warning klaxons are blaring, but still the performance numbers and milestones are astonishing.
The $8 trillion surge in global stocks is the result of a near 15% leap in MSCI's world index. That is challenging the dot.com boom days of 1997 as the best H1 in its near 40-year history.
Wall Street is up 18%, Europe 13% and China has jumped 20%, which is a lot of what it lost year even factoring in it has given back 5% since the trade tensions erupted again in early May.
Oil has raced almost 25% higher following its best first quarter since 2009. That has helped Russia's rouble top the currency charts and though industrial metals have buckled badly in Q2, safe-haven gold is now scaling a six-year high.
"It has been really impressive," said Swiss fund managers Pictet's chief strategist Luca Paolini about the rebound from last year's beating. "All sectors, all markets, all asset classes are in positive territory and that is rather unusual."
A mirror image of 2018 when almost everything fell? Perhaps. But there have been two important drivers.
One was China showing it was serious about monetary and fiscal stimulus for its $14 trillion economy. The second of course has been the screeching change of direction by the Federal Reserve which suddenly looks set to cut U.S. interest rates for the first time since the financial crisis.
It has lit a fire under bond markets which have gone off like a rocket.
U.S. Treasuries, the world's benchmark government IOUs, have made a whopping 7 percent as their yields have fallen almost 70 basis points this year. That followed a 37 basis point fall the last quarter of 2018, whereas in the five quarters prior to that they had consistently risen.
German Bunds - Europe's go-to safe asset - have had their best H1 in two years, making roughly 5.5% as the European Central Bank has reversed course too. The yield on 10-year debt dropped below zero percent for the first time since 2016 in March and has since scored record lows.
MY BIG FAT GREEK RALLY
A statistic likely to make most jaws drop is that Greek banks -- remember all that euro debt crisis and capital controls stuff a few years back -- have been some of the world's best performing stocks this year.
The country's biggest lender Piraeus Bank is up 250% and the smaller Attica Bank is up 343%. Athens has also been Europe's best bourse this year, though it all trails the 550% gain vegan darling Beyond Meat has cooked up since its May stock market floatation.
Cryptoassets are back in vogue too with Bitcoin up 220% after its 2018 fall from grace and despite almost daily Brexit chaos and the loss of another prime minister, UK Gilts have returned 4.5%.
More risky high-yield debt, local-currency emerging market bonds and corporate debt have all brought in between 8%-9% and currency markets have been on the turn too.
"It is very unusual to see this breadth of strength," said HSBC Asset Management's chief global strategist, Joseph Little. "The question is, has it been too fast and too furious. It's a very good question."
The Fed's pirouette means the dollar index is about to experience its first quarterly loss in over a year, with the yen up over 2.5% and the euro now back in the black having had its weakest Q1 since 2015.
The oil rally means the Canadian dollar -- up 4% -- and Norwegian crown -- up 1.5% -- have also done well, but as usual the wilder swings have been in emerging markets.
Argentina's peso and Turkey's lira, 2018's punchbags, have taken another beating though it was mainly earlier in the year when worries about both countries' political and economic trajectories started to bite again.
At the other end of the spectrum, the Russian rouble, another big petrocurrency, is up 10.5%. Egypt's pound and the Thai baht are 7.2% and 5.2% higher, while Mexico's peso is now only 2% better off having been sapped by the recent run in with Donald Trump over migrants breaking the border.
FANGS VERY MUCH
Wall Street's rally has left the S&P 500 and Nasdaq enjoying the view at record highs with the so-called FANG tech stocks providing much of the altitude again.
Facebook has surged 44%, Amazon 27 percent, and streaming giant Netflix has soared more than 38%.
Despite the fierce tensions with China over Huawei, the tech sector still tops the S&P 500 too and Microsoft and Cisco are the top two performers on the Dow Jones having both leapt over 30%.
In contrast, China's tech sector is now up 28% year-to-date compared to 46% at the end of Q1 while online behemoth Alibaba has handed back 5% of the 30% it had made.
"The next couple of weeks will set the tone for the second half. If trade talks momentum is gained, it would be hugely positive for risk assets," Stefan Hofer, chief investment officer, LGT Bank Asia said.
"This is the most important (period) since the Global Financial Crisis. I can't emphasise that enough."
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
Graphic: World stocks enjoy vintage H1 https://tmsnrt.rs/2FE0mYC
Graphic: Global markets in H1 https://tmsnrt.rs/2FEK8yw
(Additional reporting by Thyagaraju Adinarayan and Helen Reid in London, April Joyner in New York and Noah Sin in Hong Kong; Editing by Toby Chopra) |
2020 candidates view Trump's broken promise to working Americans as path to beating him
On the second night of the 2020 Democratic presidential debates Thursday, Democrats were mostly in agreement that the economy is not working for millions of Americans and laid the blame squarely on President Trump’s shoulders.
They looked past strong GDP growth and record-low unemployment and focused on financial issues hurting working families like stagnant wages, income inequality, health care, and the $1.6 trillionstudent loan debt crisis.
Vermont Sen. Bernie Sanders, who has advocated forMedicare for alland the cancellation of student loan debt, took the opportunity to lay down a path to beat Trump by focusing on the financial struggles of working families.
“Lastpoll I sawhad us 10 points ahead of Donald Trump because the American people understand that Trump is a phony, that Trump is a pathological liar and a racist, and that he lied to the American people during his campaign. He said he was going to stand up for working families,” Sanders said. “Well, President Trump, you're not standing up for working families when you try to throw 32 million people off their health care that they have and that 83% of your tax benefits go to the top 1%. That's how we beat Trump: We expose him for the fraud that he is.”
Former Vice President Joe Biden promised to put an end to Trump’s signature 2017 corporate tax cuts. “Donald Trump has put us in a horrible situation. We do have enormous income inequality,” he said.
California Sen. Kamala Harris echoed the others’ concern over Trump’s tax cuts and the need to address income inequality. “This economy is not working for working people,” she said. “I am proposing that we change the tax code, so for every family that is making less than $100,000 a year, they will receive a tax credit that they can collect up to $500 a month, which will make all the difference between those families being able to get through the end of the month with dignity and with support or not.”
‘Who has the guts to take on Wall Street’
Democrats’ united front against Trump shattered when California Rep. Eric Swalwell said Biden should pass the torch on to a younger generation that could better address gun violence, student debt, and a rapidly changing workforce under threat from automation and technology.
“I was 6 years old when a presidential candidate came to the California Democratic Convention and said it's time to pass the torch to a new generation of Americans. That candidate was then-Senator Joe Biden. Joe Biden was right when he said it was time to pass the torch to a new generation of Americans 32 years ago. He is still right today,” said Swalwell.
Biden jumped at the opportunity to defend himself and focused on the need for better access to education. “I'm still holding on to that torch,” he said. “There is a lot we can do, but we have to make continuing education available for everyone so that everyone can compete in the 21st century. We are not doing that now.”
Sanders rejected the notion that age would be a factor in candidates’ abilities to address economic challenges. “It's not generational,” he said. “The issue is, who has the guts to take on Wall Street, to take on the fossil fuel industry, to take on the big money interests who have unbelievable influence over the economic and political life of this country?”
As Democrats continued to bicker, Harris returned the focus to the plight of working-class Americans.
“America does not want to witness a food fight, they want to know how we are going to put food on their table,” she said. “In our America, no one should have to work more than one job to have a roof over their head and food on the table.”
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Only God knows when my tenure will end, Soviet-era oil baron says
By Vladimir Soldatkin
SURGUT, Russia (Reuters) - Vladimir Bogdanov, who at 68 has run the Soviet and then Russian oil major Surgutneftegaz for 35 years, said on Friday that only God knows when his career will end at the company, whose ownership is a closely guarded secret.
The firm, headquartered in the West Siberian city of Surgut, is considered one of the most opaque in Russia despite chugging out steady flows of oil and holding enormous piles of cash. One of its corporate email addresses even starts as "secret@".
Management was long believed by analysts to have controlled around 90% of Surgut through an evolving structure of affiliates - including the in-house pension fund - but the company has never fully disclosed its ownership.
Bogdanov, the longest-serving chief executive of any global major, took the helm in 1984, just over a year after the death of Soviet leader Leonid Brezhnev. He oversees daily production of 1.22 million barrels and cash reserves of almost $50 billion.
There has been speculation in the industry that Bogdanov might soon quit. Asked whether he wanted to continue his work, the CEO, in rare comments to the media, said: "There is the Lord God, ask him."
He also dismissed reports the company might move its headquarters to St Petersburg as "rumours".
"They've been sending me away for many years, to Moscow, or to St Petersburg ... But we've built this city (Surgut), and not only this city," he said.
CASH FOUNTAIN
Since its privatisation in the mid-1990s, the company's oil production has almost doubled, and its cash reserves, in short- and long-term deposits, exceeded 3 trillion roubles ($47.7 billion) last year - close to the 3.9 trillion roubles held by the sovereign Russian National Wealth Fund.
The company revealed in 2013 in its annual results under International Financial Reporting Standards, published after a 10-year hiatus, that the bulk of its cash was held at state-controlled Sberbank, with further tranches at the Russian unit of Unicredit, Gazprombank and VTB.
After that, the company stopped publishing the names of the banks that held its money.
The amount and purpose of such wealth have been among the most enduring questions in Russia's oil industry in recent decades. Russian President Vladimir Putin once said Bogdanov "is rich, he has the biggest bank", in an apparent reference to the company's cash pile.
"It's not just lying in banks. It's working," Bogdanov said of the company's cash, without elaborating.
($1 = 63.0910 roubles)
(Reporting by Vladimir Soldatkin; Editing by Dale Hudson) |
Tighter Gasoline Supplies to Aid Oil & Gas Refining & Marketing Industry
The Zacks Oil and Gas - Refining & Marketing industry consists of companies that are involved in selling refined petroleum products (including heating oil, gasoline, residual oil, etc.) and a plethora of non-energy materials (like asphalt, road salt, clay, and gypsum). Some of the companies also operate refined products terminals, storage facilities and transportation services. The primary activity of these firms involves buying crude/other feedstocks and processing them into a wide variety of refined products.
Let’s take a look at the industry’s three major themes:
• Per the EIA, gasoline supply surplus is virtually gone, with inventories of the prime transportation fuel in the United States standing at the five-year average. Coupled with a record high domestic demand, crack spreads – a measure of refining profitability – have widened significantly, almost doubling from the first-quarter average. The improving crack spread is likely to drive both revenues and earnings of the sector components.
• Surging output in the United States is expected to keep North American oil prices in check. Record volumes in the face of fairly stable consumption has made U.S. crude cheaper than its international counterpart. With production set to hit another all-time high this year, prices are unlikely to increase much. This should provide refiners with the opportunity to buy lower cost American oil and sell products at higher international-linked prices.
• Deteriorating U.S.-China trade relations have cast a pall over the gasoline demand outlook. Moreover, slowing industrial growth in China – the world's second-biggest consumer of the fuel after America – is expected to keep prices depressed. As it is, the loss of Venezuela’s heavy grade oil has put U.S. refiners in a difficult position. Shrinking WTI-Brent crude differentials might also weigh on margins for refining and marketing companies. This is because refined products, which are exported worldwide, use WTI crude as inputs but are priced higher than Brent.
Zacks Industry Rank Indicates Bright Outlook
The Zacks Oil and Gas - Refining & Marketing is a 13-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #101, which places it in the top 40% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates impressive near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to consider, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags Sector & S&P 500
The Zacks Oil and Gas - Refining & Marketing industry has lagged the broader Zacks Oil - Energy Sector as well as the Zacks S&P 500 composite over the past year.
The industry has declined 27.4% over this period compared with the sector’s decrease of 14.9%. The S&P 500 meanwhile rose 5.9% .
One-Year Price Performance
Industry’s Current Valuation
Since oil and gas companies are debt laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of noncash expenses.
On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA), the industry is currently trading at 7.08X, lower than the S&P 500’s 11.29X. However, it is significantly above the sector’s trailing-12-month EV/EBITDA of 4.96X.
Over the past five years, the industry has traded as high as 15.63X, as low as 4.43X, with a median of 7.35X.
Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio
Bottom Line
Shortage in the Permian takeaway capacity in the face of exponential production growth has forced producers to sell their crude at a discount. The downstream companies whose refining capacity is leveraged to lower Permian pricing are poised for significant bottom-line growth.
On a further encouraging note, gasoline futures recently shot up to their highest in more than a month on Philadelphia Energy Solutions’ decision to permanently close its oil refinery in Philadelphia following last week’s devastating fire.
However, the traditional fuels refining operation — where crude is turned into products ranging from gasoline and diesel to jet fuel and asphalt — is heavily dependent on the WTI-Brent differential. Given the narrowing discount in U.S. oil prices to Brent, petroleum exporters' profits are expected to be hurt. This, in turn, will limit cash flow generation at the companies with downstream exposure.
None of the stocks in the Zacks Oil and Gas - Refining & Marketing industry sports a Zacks Rank #1 (Strong Buy). However, we present a stock that has a Zacks Rank #2 (Buy) and is well positioned to grow. There are also three stocks with a Zacks Rank #3 (Hold) that investors may currently retain.
You can seethe complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings, Inc.(DK): Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. The Brentwood, TN-based company carries a Zacks Rank #2. Over the past 30 days, Delek US holdings has seen the Zacks Consensus Estimate for 2019 and 2020 increase 2.3% and 1.4% to $4.51 and $4.32 per share, respectively.
Price and Consensus: DK
Marathon Petroleum Corporation(MPC): This Findlay, OH-based company, which carries a Zacks Rank #3, is a leading independent refiner, transporter and marketer of petroleum products. Marathon Petroleum’s expected EPS growth rate for three to five years currently stands at 8.6%, comparing favorably with the industry's growth rate of 7.5%.
Price and Consensus: MPC
Par Pacific Holdings, Inc.(PARR): It is a diversified energy company with a portfolio of refining, infrastructure, retail as well as exploration and production assets. Zacks #3 Ranked Par Pacific Holdings is headquartered in Houston, TX and has an expected earnings growth rate of 40.6% for 2019.
Price and Consensus: PARR
HollyFrontier Corporation(HFC): HollyFrontier is one of the largest independent refiners and marketers of petroleum products in the United States. Carrying a Zacks Rank of 3, this Dallas, TX-headquartered company’s expected EPS growth rate for three to five years currently stands at 10.2%, comparing favorably with the industry's growth rate of 7.5%.
Price and Consensus: HFC
Today's Best Stocks from Zacks
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his outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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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 reportPar Pacific Holdings, Inc. (PARR) : Free Stock Analysis ReportMarathon Petroleum Corporation (MPC) : Free Stock Analysis ReportHollyFrontier Corporation (HFC) : Free Stock Analysis ReportDelek US Holdings, Inc. (DK) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
If You Have the Stomach, $15 Is the Buy Zone for IQ Stock
Iqiyi (NASDAQ:IQ) has been a public company for 15 months. In this period, IQ stock has gone as high as $40 and as low as $15. Trading right at its March 2018 IPO price of $18, investors continue to wonder in which direction it's headed next. Source: Shutterstock I'm a firm believer that you can often buy IPO shares for less than their pricing within 12-24 months of a stock going public. IQ stock is no different.It was already available at sub-$18 prices last December. Barring some excellent news, it's likely to test $15 between now and the end of the year. The wildcard is a trade deal. If that happens, I doubt you'll be able to pick up iQiyi stock anywhere near $15. More likely it heads into the mid-$20s on the news.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Top Small-Cap Stocks Of 2019 When I last wrote about IQ stock at the end of May, I recommended to investors that they not buy iQiyi until it drops below $18. I still feel that way. Here's why. The Risk/Reward Has Got to Be RightAlthough I like the fact that the video-streaming service has four revenue streams: membership services, advertising, content distribution, and live broadcasting/online games, the fact that it lost $270 million in the first quarter compared to $59 million a year earlier suggests the risk of owning IQ stock is high. If you're going to own it, you need to be compensated for taking on the extra risk compared to buying Netflix (NASDAQ:NFLX) and calling it a day. Since it doesn't pay a dividend, that compensation has to come by way of a lower share price. As I explained at the end of May, the company's membership services accounted for 49% of its Q1 2019 revenue with advertising adding another 30% and content distribution, live broadcasting, and online games chipping in the remaining 21%. While it's got a nice balance of revenue streams, membership services are clearly the one that will drive iQiyi to profitability. So, in addition to being rewarded for taking on additional risk, investors need to evaluate whether the 64% increase in membership services revenue in the first quarter has the company headed in the right direction. Is it earning more revenue per paying customer?In Q1 2019, iQiyi had $513.4 million in membership services revenue from 95.4 million paying members. That's $5.38 for each paying member. In Q1 2018, it had $334.0 million in membership services revenue from approximately 60.4 million paying members for an average of $5.53 a customer.The fact that it has fallen slightly isn't a problem. As it continues to grow the number of paying members, the fees it charges will remain steady to attract new members and retain existing ones. Then, like Netflix, it will raise the amount it charges customers once it's got them hooked. As long as it's growing members by 60% each quarter, it will ultimately lead to consistent profitability. The Bottom Line on IQ StockAnytime you consider buying a money-losing stock; you're taking a gamble. Heck, anytime you buy a moneymaker, you're taking a risk.If you're an aggressive investor, I might buy at $18, and buy more should it drop to $15 or below. If you're risk averse, I'm not sure you want to be buying stocks of companies that aren't making money. Investing is tough enough without a margin of safety. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential Compare Brokers The post If You Have the Stomach, $15 Is the Buy Zone for IQ Stock appeared first on InvestorPlace. |
5 Broker-Friendly Stocks to Combat Trade & Geopolitical Woes
Concerns of global economic sluggishness owing to the trade war between the United States and China and tensions with the likes of Iran and North Korea have hurt the broader equity market on various occasions this year.
However, irrespective of market conditions, investors strive to design a winning portfolio of stocks. They, after all, are putting their hard-earned money into stocks. Amid the prevalent confusion, it is almost impossible for individual investors to come up with a winning portfolio of stocks without proper guidance. Therefore, it is in the best interest of investors to seek advice from “experts in the field."
Who Are These Experts?
The “experts” in the field of investing are brokers who are equipped with thorough knowledge about the space. Brokers, irrespective of their types (sell-side, buy-side or independent), have at their disposal a lot more information on a company and its prospects than individual investors.
To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Broker opinion should thus act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
Direction of Earnings Estimates Serves as a Proper Guide
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. Naturally, their estimate revisions serve as an important pointer regarding the price of a stock.
For example, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy.
To take care of the earnings performance, we have designed a screen based on improving broker recommendation and upward estimate revisions over the last four weeks.
Do Not Ignore the Top Line
However, designing a strategy based solely on the bottom line is unlikely to result in a winning approach. Actually, according to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance, especially in an environment of revenue weakness due to macroeconomic headwinds. To address top-line concerns, we have included in our screen price/sales ratio, which serves as a strong complementary valuation metric.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75(This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10(This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
We have also added the following screening parameters to ensure that the strategy is a winning one:
Price-to-Sales = Bot%10(The lower the ratio the better, companies meeting this criteria are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio).
Price greater than 5(as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days(Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000(This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com(This takes out the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
Brentwood, TN-basedDelek US HoldingsDK is an independent refiner, transporter and marketer of petroleum products. The Zacks Consensus Estimate for Delek US Holdings’ current-year earnings has been revised upward to the tune of 22.6% over the past 60 days. The company currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AutoNationAN, through its subsidiaries, operates as an automotive retailer in the United States. The company also offers vehicle maintenance and repair services, vehicle parts, extended service contracts and vehicle protection products. This Zacks Rank #2 stock has seen the Zacks Consensus Estimate for current-year earnings being revised upward to the tune of 2.6% over the past 60 days.
Dick's Sporting GoodsDKS, based in Coraopolis, PA, operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc. The stock carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for current-year earnings has been revised 1.2% upward over the past 60 days.
C&J Energy ServicesCJ provides onshore well construction, well completion and support to oil and gas exploration and production companies. This Zacks Rank #3 company also offers complementary oilfield services. Texas-based C&J Services surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 11.6%.
Headquartered in San Francisco, CA,ABM IndustriesABM provides engineering, janitorial, parking, and facility solutions to commercial, industrial, institutional, and retail facilities. ABM Industries, carrying a Zacks Rank #3, has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters with the average being 9.2%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at:https://www.zacks.com/performance.
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 reportAutoNation, Inc. (AN) : Free Stock Analysis ReportABM Industries Incorporated (ABM) : Free Stock Analysis ReportDelek US Holdings, Inc. (DK) : Free Stock Analysis ReportDICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis ReportC&J Energy Services, Inc. (CJ) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Supreme Court to hear Trump bid to ditch 'Dreamers' immigration program
By Lawrence Hurley WASHINGTON (Reuters) - The U.S. Supreme Court on Friday agreed to decide whether President Donald Trump acted lawfully when he moved to end a program that protects from deportation hundreds of thousands of immigrants who were brought into the country illegally as children, a key element of his hardline immigration policies. The nine justices took up the Trump administration's appeals of lower court rulings in California, New York and the District of Columbia that blocked as unlawful his 2017 plan to rescind the Deferred Action for Childhood Arrivals (DACA) program implemented in 2012 by his Democratic predecessor Barack Obama. The program currently shields about 700,000 immigrants often called "Dreamers," mostly Hispanic young adults, from deportation and provides them work permits, though not a path to citizenship. The conservative-majority Supreme Court will hear arguments and issue a ruling during its next term, which starts in October and runs through June 2020, meaning a decision could come in the thick of next year's presidential race in which Trump is seeking re-election. Democratic presidential candidates including front-runner Joe Biden have pledged actions to protect the Dreamers and offer them citizenship. Three federal district court judges issued orders halting Trump's move to end DACA after lawsuits were filed by a group of states including California and New York, people protected by the program, civil rights groups and others challenging the legality of the Republican president's move. Trump, Republicans in Congress and Democratic lawmakers have been unable to hammer out a legislative deal to protect "Dreamers." The Trump administration has argued that Obama exceeded his constitutional powers when he bypassed Congress and created DACA. In the meantime, the program, in which those eligible can get renewable two-year work permits, remains in effect for people already enrolled. New applications are not being accepted by Trump's administration. Since January 2018, the administration has issued more than 373,000 renewals, according to U.S. Citizenship and Immigration Services data. Story continues 'OUR NATION'S COMMITMENT' "DACA reflects our nation's commitment to helping hard-working people and creates hope and opportunity for a new generation - many of whom were brought to our country as toddlers," said California Attorney General Xavier Becerra, a Democrat, who leads one of the legal challenges. "So far, both lower courts in our legal fight to protect DACA have agreed with us that the Trump administration's attempt to end it was unlawful," Becerra added. Justice Department spokesman Alexei Woltornist welcomed the Supreme Court's action. "We are pleased the Supreme Court agreed that this issue needs resolution," Woltornist said. The Democratic-led House of Representatives on June 4 passed a bill that would protect "Dreamers" but the Republican-controlled Senate has shown no sign of approving it. Dick Durbin, the No. 2 Senate Democrat, on Friday urged the Senate to pass the legislation. The legal question before the Supreme Court is whether the administration properly followed a federal law called the Administrative Procedure Act in Trump's plan to end DACA. The administration appealed in November and the Supreme Court could have acted on it as early as January, but delayed action for half a year before taking up the matter. The court's announcement came a day after it issued a 5-4 ruling on last official day of its 2018-2019 term, dealing a major setback to Trump's plan to add a contentious citizenship question to the 2020 census. In another important immigration-related case, the Supreme Court last year upheld Trump's travel ban targeting people from several Muslim-majority countries. Trump's effort to rescind DACA, even as he has said "I love these kids," is part of his tough stance on immigration, which has become a prominent feature of his presidency and his re-election campaign. Trump has backed limits on legal and illegal immigration and has sought construction of a wall along the U.S.-Mexican border since taking office in January 2017. Under Trump's September 2017 decision to rescind DACA, protections for Dreamers were to have begun phasing out in March 2018. But lower courts directed the administration to continue processing renewals of existing DACA applications while the litigation was resolved. Obama created DACA by executive action in 2012 as what he called "a temporary stop-gap measure" after the failure in Congress of bipartisan legislation called the Dream Act that would have provided a path to citizenship to young immigrants brought by their parents illegally into the country as children. When he created DACA, Obama said the people it protected were raised and educated in the United States, grew up as Americans in their hearts and minds, and may know little about their countries of origin. The Trump administration said Trump possesses the authority to end a program implemented by a previous president, acted lawfully in seeking to rescind it and that courts should have no say in the matter. The administration sought to bypass the normal court process, filing papers on Nov. 5 asking the high court to intervene even before some federal appeals courts considering the matter had issued rulings. Since then, on Nov. 8, the San Francisco-based 9th U.S. Circuit Court of Appeals upheld District Judge William Alsup's January 2018 ruling against Trump, saying the challengers provided evidence of "discriminatory motivation, including the rescission order's disparate impact on Latinos and persons of Mexican heritage." The Richmond, Virginia-based 4th U.S. Circuit Court of Appeals subsequently ruled against Trump last month. Two federal appeals court have yet to issue rulings. Also among those suing the administration to preserve DACA were the University of California, labor unions and Microsoft Corp, which expressed concern its own employees would be affected. For a graphic on major Supreme Court rulings, click https://tmsnrt.rs/2V2T0Uf (Reporting by Lawrence Hurley; Additional reporting by Richard Cowan; Editing by Will Dunham) |
Apple Analysts Don't See Risks as ‘Irreplaceable' Jony Ive Leaves
(Bloomberg) -- Apple Inc. shares inched lower on Friday after it announced that Jony Ive -- the chief designer behind iconic products such as the iMac and the iPhone -- is leaving the company to form his own firm.
While analysts unanimously praised Ive’s record at the company, with Deutsche Bank writing that he was “perhaps second only to CEO Tim Cook presently in terms of impact to AAPL’s success,” most saw limited long-term impact from the departure. They noted that Ive’s new company would count Apple as one of its primary clients, and that the departure comes at a time when Apple is focusing more on services for growth, rather than hardware sales.
The stock dipped 0.2%, though it has risen nearly 14% from a low earlier this month.
Here’s what analysts are saying about the news:
Wedbush, Daniel Ives
This “is a major changing of the guard.” Ive is “leaving a hole in the company and is clearly irreplaceable.”
Because Ive will continue to work with Apple, “we are not overly concerned.” However, the news “only adds to the current agita around the Apple story as the company is branching out into television and gaming all while it is currently the poster child for the U.S./China UFC trade battle on the heels of the G20 summit.”
Outperform rating, $235 target
Cowen, Krish Sankar
The departure is “a loss for Apple,” but it comes at a time when the company “is in the process of a transition from being focused on hardware products to services and content.”
“While it remains unclear how Apple’s future hardware product innovation may be impacted without Ive, the multiple stakeholders that will be tasked with design decisions going forward will undoubtedly open a new chapter in Apple’s design language.”
Outperform rating, $220 price target.
Deutsche Bank, Jeriel Ong
“While it could be viewed as a bit sensational” to claim that just one employee “could be this important to AAPL, we see Ive’s contributions to AAPL products as central to the company’s design-centric strategy.” He is “perhaps second only to CEO Tim Cook presently in terms of impact to AAPL’s success.”
Hold rating.
Nomura Instinet, Jeffrey Kvaal
“While investors may rue a resignation of a long-time executive, we consider this a sensible and even expected time for Mr. Ive to disengage.”
Neutral rating, $175 price target.
What Bloomberg Intelligence Says:
Ive is “leaving a void at a critical time when the company is striving to reinvent the iPhone, though we believe any effect will be muted by Apple’s shift in focus to boosting services and software vs driving sales through hardware innovation.”
“His departure is less impactful [than] it would have been in prior years.”-- Analyst John Butler-- Click here for the research
(Updates stock and chart to market open.)
To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Scott Schnipper, Jennifer Bissell-Linsk
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Spotify-Apple Turn Up the Volume as Music Streaming Fad Grows
The rivalry between Spotify SPOT and Apple AAPL in the music streaming service market is intensifying on a rapidly expanding subscriber base.Although Sweden-based Spotify is leading for the time being, Apple Music is fast catching up. Per Apple’s senior vice president Eddy Cue, Apple Music now has more than 60 million subscribers, which trails Spotify’s 100 million premium subscriber count.The competition is going to get stiffer given the strong prospects of the music streaming market. Per Adroit Market Research, the global subscriber base is expected to reach 2.81 billion by the end of 2025.The immense growth potential has also attracted other service providers. Although Spotify and Apple are leading the music streaming market, services from Alphabet GOOGL, Amazon AMZN, Sirius-owned Pandora, Tidal and the recently-launched Qobuz are worth taking note of.Spotify’s Expanding Partner Base: A Key CatalystSpotify’s popularity is primarily driven by its easy-to-use interface and focus on personalization of playlists that enhance music experience for users. Moreover, partnerships with Alphabet’s Google, Starbucks, Uber, Samsung and Hulu are major growth drivers.Notably, Spotify offers an ad-supported free tier to users, which aids monthly active user (MAU) growth. At the end of first-quarter 2019 (ending Mar 31), MAUs hit 217 million. The company expects premium subscriber base to reach 117-127 million in 2019.Spotify’s continued focus on strengthening global presence is a major plus. Late February, the company forayed into India, expanding its global footprint to 79 countries.Moreover, synchronization with Google Home products is a key catalyst. With smart speakers mainly being used to listen to music (70%) in 2018, per an Adobe Analytics survey, Spotify is expected to gain from this trend.Additionally, in March, the company extended its partnership with Google by expanding Google Home Mini promotion in the United Kingdom and France.Further, thanks to the expanded partnership with Samsung, the Korean smartphone giant’s new devices have the Spotify app preloaded. Notably, new users buying Samsung’s flagship Galaxy S10 device will also have access to a special six-month free trial offer for Spotify Premium.
Spotify Technology SA Price and Consensus
Spotify Technology SA price-consensus-chart | Spotify Technology SA Quote
Apple Gaining Footprint RapidlyApple’s presence in the music streaming industry is fast expanding driven by a plethora of initiatives.The company’s tie-up extension with Verizon has made Apple Music available for free to the U.S. telecom giant’s customers, who subscribed to the plans — Beyond Unlimited and Above Unlimited. The users can freely access Apple Music’s 50 million songs across a variety of Apple and Android devices.Further, the service is available on Echo smart speakers, thanks to Apple’s partnership with Amazon.Moreover, Apple’s collaboration with American Airlines has enabled Apple Music subscribers access the streaming app on flights, without having to pay for in-flight Wi-Fi.Apple Music faces stiff competition in the Indian music streaming market not only from local service providers JioSaavn and Gaana but also from Spotify and Alphabet’s YouTube Music. Per The Verge, the company lowered Apple Music subscription prices from $1.73 to $1.43 in India to attract subscribers.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
YouTube Music & Amazon Music: Closest ChallengersWe believe the YouTube Music and Amazon Music Unlimited services are currently well-poised to challenge the Apple-Spotify duopoly.YouTube Music is leveraging on the popularity of YouTube and capabilities of its machine-learning techniques. Additionally, Alphabet’s strong focus on expanding global footprint is a major positive. YouTube Music was recently launched in India. The service is available in 17 countries, including the United States, Australia, Canada, U.K. and Mexico.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Amazon Music Unlimited, which is a premium subscription service available on the Amazon Music app, offers tens of millions of songs and thousands of expert-programmed playlists and stations.The e-commerce giant offers this service to more than 40 countries such as the United States, Canada, India, Sweden, Netherlands, Greece, Hungary and Costa Rica.Additionally, Amazon leverages the popularity of Prime and its ever-expanding subscriber base to strengthen presence in the music streaming space. The company offers Amazon Prime Music exclusively for Prime members at no additional cost.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Zacks RankCurrently, Spotify, Apple, Amazon and Alphabet have a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportAlphabet Inc. (GOOGL) : Free Stock Analysis ReportApple Inc. (AAPL) : Free Stock Analysis ReportSpotify Technology SA (SPOT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
France sees record 45.1 degree heat near Nimes
PARIS, June 28 (Reuters) - France saw new all-time record temperatures on Friday afternoon as a sweltering heatwave engulfed much of southern and central Europe, French state weather agency Meteo France said.
In Villevieille, in the southern Gard region near Nimes, temperatures rose to a record 45.1 degrees Celsius (113.18 Fahrenheit) mid-afternoon, just hours after a previous record of 44.3 degrees was set in Carpentras, about 100 kilometers east of Villevieille.
"We need to wait until the end of the day to know which town will hold the record of France's hottest town," Meteo France said on its website.
The country's previous record was 44.3 Celsius, reached during the deadly heatwave of 2003. (Reporting by Inti Landauro Editing by Geert De Clercq) |
US consumers increase spending a modest 0.4% in May
WASHINGTON (AP) — Consumer spending increased 0.4% in May, a modest gain that suggests Americans remain confident enough about the economy's outlook to keep shopping.
The Commerce Department said Friday that incomes rose 0.5% and inflation remained tame, increasing just 1.5% in the past year. Still, there were signs that core prices, which exclude food and energy, accelerated slightly.
Consumer confidence slipped this month but remains at historically high levels. Americans spent more on cars and restaurant meals, according to the government report, a sign that they are willing to make large purchases and spend on discretionary activities, such as eating out.
The spending gain in April was revised slightly higher to 0.6%. Consumer spending is closely watched because it drives more than two-thirds of economic activity.
Core inflation, which excludes the volatile food and energy categories, rose 1.6% last month, the same as in April. Still, monthly readings have picked up slightly, rising 0.2% for the past two months.
Some economists said that suggests that core inflation, which has been slipping this year, may have levelled off and could tick higher in the coming months.
"Overall, consumers are holding tough, while the recent dip in core inflation looks to have stalled," said Sal Guatieri, senior economist at BMO Capital Markets.
Core inflation has slowed from a pace of 1.8% in January. The Fed has mostly failed to reach its inflation target since adopting it seven years ago. That has raised pressure on the Fed to cut rates in the coming months. Most analysts expect the central bank will take that step at its next meeting in July or the following one in September.
President Donald Trump has cited slow inflation as a reason for the Fed to cut rates and castigated Fed Chair Jerome Powell for not doing so. He said Powell "blew it" for not cutting rates at a Fed meeting last week.
Powell has previously described low inflation as "transitory" because of cheaper gas prices and other factors. The Fed lifted rates four times last year but in January put further increases on hold. It then signaled a future rate cut is likely at its June meeting.
The economy expanded at a 3.1% annual pace in the first three months of the year, but most economists forecast that growth slowed in the current quarter to about 2%. |
New 'Love Island' hopeful's father has acted alongside the likes of Danny Dyer and Daniel Craig
Belle Hassan, daughter of 'The Football Factory' actor Tamer Hassan, will be entering one of the 'Love Island' villas tonight. (ITV) As Love Island opens its doors to the legendary Casa Amor tonight (28 June), 12 new contestants will head into the villas. One of those hopefuls is Belle Hassan, a 21-year-old beauty technician, whose actor father has worked alongside big names such as Danny Dyer and Daniel Craig. Tamer Hassan may have had a brief role as a member of the Dothraki in the hugely-popular fantasy series Game of Thrones , but he’s undoubtedly best known for portraying a fictional firm leader in sports drama film The Football Factory . Read more: 'Love Island' contestant Elma Pazar reveals she lied about her age to get on the show Across his career, he’s also starred in Kick-Ass , Clash of the Titans and Matthew Vaughn’s crime drama Layer Cake . He appeared with Dyer for a second time in The Business. Much like Dyer, he’s known for typically playing the ‘hardman’ character onscreen, which might make some of the male Islanders nervous to couple-up with Belle. Although, seeing as Dani Dyer matched with Jack Fincham early on last year, and went on to win the whole competition... perhaps not. Talking about her famous father, Hassan told The Sun : "Because he was in a film with Danny Dyer, I’ve met Dani Dyer when we were kids. "He is a very supportive dad, he is like my best friend and is always there for me. “He’s told me to be myself but has also warned me ‘I’m watching and I’m going to be seeing every detail!’” View this post on Instagram A post shared by 🖤 B E L L E 🖤 (@bellehassan) on Jun 17, 2018 at 5:35am PDT Announcing her imminent introduction to the ITV dating show, Hassan shared a promo image of herself on Instagram, with the caption: “Secrets out!” Later, her 51-year-old father commented on it, saying: “My beautiful princess will be amazing be the best you can my baby and always be you [sic].” Love Island continues tonight at 9pm on ITV2. View comments |
Supreme Court to hear U.S. Bancorp pension plan dispute
By Andrew Chung WASHINGTON (Reuters) - The U.S. Supreme Court on Friday agreed to consider reviving a class action lawsuit against U.S. Bancorp that accused it of mismanaging an employee pension plan in a manner that violated the Employee Retirement Income Security Act (ERISA). The justices took up an appeal by the bank's pension plan beneficiaries of a lower court ruling that threw out the lawsuit because the plan's participants had not suffered any personal financial harm and lacked the necessary legal standing to sue. The plaintiffs said the plan's administrators pursued an investment strategy that, beginning with the 2008 financial crisis, led to nearly $750 million in losses. The plaintiffs accused pension plan managers of breaching their fiduciary duty toward them from late 2007 to 2010 by adopting an overly risky and conflicted strategy of piling the plan's assets solely into equities and a bank subsidiary's mutual funds. Plan participants, led by retired Missouri bank accountant James Thole, filed the proposed class action lawsuit in 2013 in federal court in Minneapolis, where the company is based. ERISA, enacted in 1974, is a federal law that set up minimum standards for most voluntarily established retirement and health plans in private industry to protect beneficiaries. At issue is whether the plaintiffs can sustain their lawsuit alleging ERISA violations even if there is no current risk that the bank will not fulfill its pension obligations. The lawsuit alleged that the 2008 stock market crash caused the plan's assets to plummet in value, causing it to be underfunded. The St. Paul, Minnesota-based 8th U.S. Circuit Court of Appeals in 2017 threw out the lawsuit because in the course of the litigation the bank made contributions and returned the plan to a surplus. The 8th Circuit said that since the plan had become overfunded there was no risk of underpayment of participants' benefits, eliminating the basis for a lawsuit. Story continues Backed by President Donald Trump's administration, the plaintiffs urged the justices to hear their appeal and revive the lawsuit. The Justice Department told the justices that pension plans may frequently swing between overfunded and underfunded. "It would be bizarre to tether a plaintiff's standing - and thus a federal court's power to hear a case - to such a volatile and arbitrary metric," the Justice Department said in a legal filing. The court will hear arguments in the case during its next term, which begins in October, with a ruling due before June 2020. (Reporting by Andrew Chung; Editing by Will Dunham) |
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