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RBI to regulate housing finance firms, review assets: sources
By Swati Bhat and Aftab Ahmed
MUMBAI/NEW DELHI (Reuters) - India will soon give Reserve Bank of India (RBI) power to regulate housing finance companies (HFCs), which will almost certainly lead to the lenders facing stringent asset quality reviews, two sources with direct knowledge of the matter said.
That could have major repercussions for about 80 HFCs, the largest of which include Indiabulls Housing Finance Ltd, Housing Development Finance Corporation and Dewan Housing Finance Corporation, leading to them facing unprecedented scrutiny and the potential for major financial penalties and restriction on their activities if improper practices are discovered.
In late 2015, the RBI started a similar review of bank assets amid allegations that lenders were hiding the extent of the bad debts on their books.
During multiple asset quality reviews of banks, the RBI revealed a plethora of areas where lenders were under reporting their bad loans. It initially led to financial penalties for some lenders and eventually fed into decisions to impose tougher restrictions on their loan books while their bad debts remained high.
The housing finance companies, which are part of the broader shadow banking sector known as non-banking finance companies (NBFCs), are currently regulated by the National Housing Board, and the central bank has no direct authority over them.
The other NBFCs are very loosely regulated, with various regulators including the RBI having some role but no one being fully accountable.
The RBI's oversight of HFCs will be a step towards the Indian authorities getting a firmer grip on the risky shadow banking sector that will help to contain any systemic problems.
A series of debt defaults last year by major infrastructure financing group, Infrastructure Leasing and Financial Services (IL&FS), showed that much of the sector was highly leveraged.
"There will be substantial improvement in regulation and supervision of all entities including NBFCs and HFCs once RBI has direct control over the housing finance firms," one of the sources said.
On Monday, Finance Minister Nirmala Sitharaman said the government was considering giving more powers to the central bank to regulate the struggling shadow banking sector, though she was not specific.
A government official, who did not wish to be named, was more explicit in comments on Wednesday. "The government is planning to give more regulatory powers to the RBI to regulate housing finance companies. Right now they do not have that."
One of the sources said the central bank sought more regulatory powers so that it could be more effective in handling liquidity crunches in the sector, which have hit lending and the overall economy.
The Reserve Bank of India declined to comment on the development.
As credit rating firms have downgraded the ratings of some of the housing finance companies it has stoked credit-risk fears and hurt their ability to raise funds for more lending. That in turn has made it difficult for consumers and small businesses to get loans and hurt car and motorbike sales, among other things.
The failure of a large Indian non-banking financial company could cause as much damage as the collapse of a big commercial lender, the RBI said last week, stressing the need for greater surveillance of these firms.
Both the government and RBI have declined to provide direct financial support to financially troubled NBFCs so far. But having regulatory powers over the HFCs might make it easier for the RBI to open credit lines for these firms if necessary, two of the three sources said.
The National Housing Board was controlled by the RBI before the government took over the housing finance regulator on April 29. Shifting the regulatory powers to the RBI will, however, take place later in the year as it will require a change to the RBI Act, the government official said.
(Reporting by Swati Bhat and Aftab Ahmed; Editing by Martin Howell and Jacqueline Wong)
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Does The Fulton Financial Corporation (NASDAQ:FULT) Share Price Fall With The Market?
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If you're interested in Fulton Financial Corporation (NASDAQ:FULT), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Check out our latest analysis for Fulton Financial
With a beta of 1.06, (which is quite close to 1) the share price of Fulton Financial has historically been about as voltile as the broader market. While history does not always repeat, this may indicate that the stock price will continue to be exposed to market risk, albeit not overly so. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Fulton Financial's revenue and earnings in the image below.
With a market capitalisation of US$2.8b, Fulton Financial is a pretty big company, even by global standards. It is quite likely well known to very many investors. It's not overly surprising to see large companies with beta values reasonably close to the market average. After all, large companies make up a higher weighting of the index than do small companies.
Since Fulton Financial has a beta close to one, it will probably show a positive return when the market is moving up, based on history. If you're trying to generate better returns than the market, it would be worth thinking about other metrics such as cashflows, dividends and revenue growth might be a more useful guide to the future. In order to fully understand whether FULT is a good investment for you, we also need to consider important company-specific fundamentals such as Fulton Financial’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Future Outlook: What are well-informed industry analysts predicting for FULT’s future growth? Take a look at ourfree research report of analyst consensusfor FULT’s outlook.
2. Past Track Record: Has FULT been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of FULT's historicalsfor more clarity.
3. Other Interesting Stocks: It's worth checking to see how FULT measures up against other companies on valuation. You could start with thisfree list of prospective options.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Woman faces jail for taking dog into mosque in Indonesia
An Indonesian woman has been accused of blasphemy after taking a dog into a mosque (Need Pix/file photo) A woman in Indonesia faces up to five years in jail after she was accused of blasphemy for taking a dog into a mosque. A video circulating online in Muslim-majority country shows the dog running around a mosque in the West Java district of Bogor while the woman argues with shocked worshippers. Many Muslims consider dogs to be impure. In the video, the visibly distressed woman says she is Catholic and claims that her husband will be married in the mosque later that day. She demands an explanation from people in the mosque who apparently have no idea about the purported wedding plans. The dog was filmed running around a mosque in the West Java district of Bogor (Flickr) The dog reportedly later died after being hit by a car. Blasphemy is a criminal offence in Indonesia with a maximum penalty of five years in prison. Human rights groups have long called for the abolition of the law, which is often used to persecute Christians and other religious minorities. Read more from Yahoo News UK: Man in his 90s found stabbed to death at house in Leicester Two people dead after rail workers hit by train Wife of Dubai ruler ‘on the run in the UK’ over fears her life is in danger The woman, whose identity has not been disclosed, was detained at a police hospital, where doctors recommended her transfer to a psychiatric facility. Bogor police chief Andi Mochammad Dicky Pastika said the woman is a blasphemy suspect and an investigation is continuing. "We will bring this case to the court," Mr Pastika said. "Even if later the results of the psychiatric examination say that she has psychiatric disorders, as referred to in Article 44 of the Criminal Code, let the judge decide it in court.” Many Muslims consider dogs to be impure (Wikipedia/file photo) Amnesty International said the blasphemy case is "unfortunate and absurd" and highlights why Indonesia's blasphemy law should be repealed. "The state's priority should be her wellbeing. Her actions may have felt insensitive, but these issues can be resolved peacefully, it is not a matter for the courts," said Amnesty's executive director in Indonesia, Usman Hamid. Story continues Last year a court in Sumatra sentenced a woman who complained about the volume of a mosque's loudspeakers to 18 months in prison for blasphemy. She was released on parole in May. Mobs burned and ransacked at least 14 Buddhist temples in Tanjung Balai, a port town on Sumatra, in a riot in July 2016 following reports of the woman's comments. Watch the latest videos from Yahoo UK
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Here's What Six Flags Entertainment Corporation's (NYSE:SIX) P/E Ratio Is Telling Us
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This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll look at Six Flags Entertainment Corporation's (NYSE:SIX) P/E ratio and reflect on what it tells us about the company's share price.Six Flags Entertainment has a P/E ratio of 16.45, based on the last twelve months. That is equivalent to an earnings yield of about 6.1%.
View our latest analysis for Six Flags Entertainment
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Six Flags Entertainment:
P/E of 16.45 = $52.7 ÷ $3.2 (Based on the year to March 2019.)
A higher P/E ratio means that buyers have to paya higher pricefor each $1 the company has earned over the last year. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. Earnings growth means that in the future the 'E' will be higher. That means unless the share price increases, the P/E will reduce in a few years. And as that P/E ratio drops, the company will look cheap, unless its share price increases.
Six Flags Entertainment's earnings per share were pretty steady over the last year. But it has grown its earnings per share by 21% per year over the last five years.
The P/E ratio indicates whether the market has higher or lower expectations of a company. The image below shows that Six Flags Entertainment has a lower P/E than the average (23) P/E for companies in the hospitality industry.
Its relatively low P/E ratio indicates that Six Flags Entertainment shareholders think it will struggle to do as well as other companies in its industry classification. Many investors like to buy stocks when the market is pessimistic about their prospects. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. So it won't reflect the advantage of cash, or disadvantage of debt. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores.
Net debt totals 50% of Six Flags Entertainment's market cap. If you want to compare its P/E ratio to other companies, you should absolutely keep in mind it has significant borrowings.
Six Flags Entertainment has a P/E of 16.4. That's below the average in the US market, which is 18.2. It's good to see EPS growth in the last 12 months, but the debt on the balance sheet might be muting expectations.
Investors should be looking to buy stocks that the market is wrong about. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
You might be able to find a better buy than Six Flags Entertainment. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Should You Think About Buying RealPage, Inc. (NASDAQ:RP) Now?
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RealPage, Inc. (NASDAQ:RP), which is in the software business, and is based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $65.32 and falling to the lows of $55.65. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether RealPage's current trading price of $60.1 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at RealPage’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for RealPage
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.96% above my intrinsic value, which means if you buy RealPage today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $57.81, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since RealPage’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for RealPage. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder?It seems like the market has already priced in RP’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor?If you’ve been keeping tabs on RP, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on RealPage. You can find everything you need to know about RealPage inthe latest infographic research report. If you are no longer interested in RealPage, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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How Much Are RPM International Inc. (NYSE:RPM) Insiders Spending On Buying Shares?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inRPM International Inc.(NYSE:RPM).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for RPM International
In the last twelve months, the biggest single purchase by an insider was when John Ballbach bought US$503k worth of shares at a price of US$62.12 per share. That means that even when the share price was higher than US$61.48 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$1.0m for 16780 shares. But they sold 1762 for US$108k. In the last twelve months there was more buying than selling by RPM International insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them).
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. RPM International insiders own about US$117m worth of shares (which is 1.4% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like RPM International insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. Of course,the future is what matters most. So if you are interested in RPM International, you should check out thisfreereport on analyst forecasts for the company.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Is There An Opportunity With Rubis's (EPA:RUI) 27% Undervaluation?
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In this article we are going to estimate the intrinsic value of Rubis (EPA:RUI) by taking the expected future cash flows and discounting them to their present value. I will use the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
See our latest analysis for Rubis
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF (\u20ac, Millions)", "2020": "\u20ac241.9m", "2021": "\u20ac280.8m", "2022": "\u20ac310.7m", "2023": "\u20ac334.6m", "2024": "\u20ac353.3m", "2025": "\u20ac367.9m", "2026": "\u20ac379.3m", "2027": "\u20ac388.4m", "2028": "\u20ac395.8m", "2029": "\u20ac401.9m"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x7", "2021": "Analyst x5", "2022": "Est @ 10.64%", "2023": "Est @ 7.67%", "2024": "Est @ 5.59%", "2025": "Est @ 4.13%", "2026": "Est @ 3.11%", "2027": "Est @ 2.4%", "2028": "Est @ 1.9%", "2029": "Est @ 1.55%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 6.05%", "2020": "\u20ac228.1", "2021": "\u20ac249.7", "2022": "\u20ac260.5", "2023": "\u20ac264.5", "2024": "\u20ac263.3", "2025": "\u20ac258.6", "2026": "\u20ac251.4", "2027": "\u20ac242.7", "2028": "\u20ac233.2", "2029": "\u20ac223.3"}]
("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= €2.5b
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (0.7%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €402m × (1 + 0.7%) ÷ (6.1% – 0.7%) = €7.6b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€7.6b ÷ ( 1 + 6.1%)10= €4.23b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €6.70b. In the final step we divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of €68.88. Relative to the current share price of €50.4, the company appears a touch undervalued at a 27% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Rubis as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.1%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Whilst important, DCF calculation shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Rubis, There are three fundamental aspects you should further research:
1. Financial Health: Does RUI have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does RUI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of RUI? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every FR stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Would Schweiter Technologies AG (VTX:SWTQ) Be Valuable To Income Investors?
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Is Schweiter Technologies AG (VTX:SWTQ) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.
In this case, Schweiter Technologies likely looks attractive to investors, given its 4.3% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.
Click the interactive chart for our full dividend analysis
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 95% of Schweiter Technologies's profits were paid out as dividends in the last 12 months. This is quite a high payout ratio that suggests the dividend is not well covered by earnings.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Schweiter Technologies paid out 173% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow. Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. Cash is slightly more important than profit from a dividend perspective, but given Schweiter Technologies's payouts were not well covered by either earnings or cash flow, we would definitely be concerned about the sustainability of this dividend.
We update our data on Schweiter Technologies every 24 hours, so you can always getour latest analysis of its financial health, here.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Schweiter Technologies has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During the past ten-year period, the first annual payment was CHF9.00 in 2009, compared to CHF40.00 last year. This works out to be a compound annual growth rate (CAGR) of approximately 16% a year over that time.
Dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. It's good to see Schweiter Technologies has been growing its earnings per share at 15% a year over the past 5 years. Although earnings per share are up nicely Schweiter Technologies is paying out 95% of its earnings as dividends, which we feel is borderline unsustainable without extenuating circumstances.
To summarise, shareholders should always check that Schweiter Technologies's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. We're a bit uncomfortable with Schweiter Technologies paying out a high percentage of both its cashflow and earnings. That said, we were glad to see it growing earnings and paying a fairly consistent dividend. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Schweiter Technologies out there.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 5 Schweiter Technologies analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Voters do not know liberal democrat leadership candidates
Jo Swinson (L) and Ed Davey are competing to become the next leader of the Liberal Democrats. (GETTY) The vast majority of voters have not heard of the two contenders vying to be leader of the Liberal Democrats , according to a YouGov survey. Even people who plan to vote Lib Dem in the next general election are unlikely to be familiar with the contenders to take over the party. Lib Dem leader Vince Cable is standing down after two years at the helm and the two main contenders are Jo Swinson and Sir Ed Davey . Pollsters showed pictures of the two candidates to a panel of 1,668 voters online and asked them to name them. Vince Cable, leader of the Liberal Democrats is standing down at the age of 76. (GETTY) Only six % of the population as a whole were able to name Sir Ed Davey and eight % could name Jo Swinson. Among people who voted Liberal Democrats, the figures were 12 % and 20 % respectively. Only 8% of the public can identify Lib Dem leadership frontrunner Jo Swinson, and 6% fellow candidate Ed Davey. Even among Lib Dem voters recognition remains low, with just 20% able to correctly identify Swinson and 12% Davey https://t.co/p4zdzkTqvI pic.twitter.com/EqufQmNM4a — YouGov (@YouGov) July 3, 2019 The number of people between the age of 18 and 24 who were able to name Sir Ed was zero. Ms Swinson has been Sir Vince’s deputy for two years and speaks for the party on foreign affairs. Read More on Yahoo News Extraordinary poll shows Lib Dems could win next general election Back in business – but are the Liberal Democrats back for good? She has also served in government as a business minister in the coalition government until 2015. She has spoken passionately about stopping a no-deal Brexit, claiming it would be like “planning for your house to burn down”. Sir Ed has described a no-deal Brexit as the “nuclear option” and has even pushed for a vote of no confidence in the government to prevent such an outcome. The result of the postal ballot for the liberal democrat leadership contest will be announced on July 23. The party gained more than 700 councillors in last month’s English local elections and came second in May’s European elections. Another YouGov poll last week found the Lib Dems could win a general election if the Tories fail to deliver Brexit and Labour stays on its current course. People were asked to imagine Brexit had not been delivered and then asked: “What happens if Corbyn holds to his current position of delivering an alternative Brexit?” The hypothetical survey showed that if Jeremy Corbyn retained his current stance on Brexit, Labour would retain 38 percent of its 2017 voters, with around 39 percent moving to the Lib Dems. The Lib Dems currently have 12 MPs, including newest recruit Chuka Umunna who defected from Change UK, after initially defecting from Labour. View comments
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How Much Did Sanderson Farms, Inc.'s (NASDAQ:SAFM) CEO Pocket Last Year?
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Joe Sanderson has been the CEO of Sanderson Farms, Inc. (NASDAQ:SAFM) since 1989. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Sanderson Farms
At the time of writing our data says that Sanderson Farms, Inc. has a market cap of US$3.1b, and is paying total annual CEO compensation of US$4.2m. (This figure is for the year to October 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.5m. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.2m.
That means Joe Sanderson receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Sanderson Farms has changed over time.
Over the last three years Sanderson Farms, Inc. has shrunk its earnings per share by an average of 26% per year (measured with a line of best fit). Its revenue is down -5.8% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to checkthis free visual report onanalyst forecastsfor future earnings.
Most shareholders would probably be pleased with Sanderson Farms, Inc. for providing a total return of 74% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for Joe Sanderson is close enough to the median pay for a CEO of a similar sized company .
We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Sanderson Farms shares (free trial).
Important note:Sanderson Farms may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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What Kind Of Shareholder Appears On The Sandvik AB's (STO:SAND) Shareholder Register?
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A look at the shareholders of Sandvik AB (STO:SAND) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
Sandvik has a market capitalization of kr217b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Taking a look at our data on the ownership groups (below), it's seems that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about SAND.
Check out our latest analysis for Sandvik
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Sandvik already has institutions on the share registry. Indeed, they own 60% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Sandvik's historic earnings and revenue, below, but keep in mind there's always more to the story.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Sandvik is not owned by hedge funds. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own some shares in Sandvik AB. It is a very large company, and board members collectively own kr3.8b worth of shares (at current prices). It is good to see this level of investment. You cancheck here to see if those insiders have been buying recently.
The general public, with a 36% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Typosquatting gang accused of stealing £22m in crypto
Police in the UK and the Netherlands today arrested six people over a £22mcryptocurrency theftwhich targeted 4,000 people.
Five men and one woman were apprehended in simultaneous arrests in the southwest of Britain and in the Dutch cities of Amsterdam and Rotterdam, according to criminal investigation agency,Europol.
They are accused of buying URLs that are misspellings of well-known cryptocurrency websites–but designed to mimic the sites users were trying to reach–in order to steal funds and login passwords, a practice known as “typosquatting.”
Hackers exploit the unwitting victim’s typographical error and lead them to a spoof website they own, which appears identical to the real thing.
In some cases, typosquatters may also phishing strategies, sending emails to persuade users to visit their fake websites.
The suspects were identified in a 14-month investigation launched when a UK-based victim reported the theft of £1,700-worth of Bitcoin to police.
A British police detective inspector told the UK’sSwindon Advertiser: “The investigation has grown from a single report of £17k worth of bitcoin stolen from a Wiltshire-based victim to a current estimate of more than 4,000 victims in at least 12 countries. We expect that number to grow.”
Police seized a “large number of devices, equipment and valuable assets” at the crime scenes.
Perhaps some of the 4,000 victims may even get their bitcoin back. Just goes to show, it pays to report crypto crime to the police.
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Woman charged for using boyfriend's card to leave huge tip
A woman, who was praised for her generosity after leaving a hefty $5,000 tip for a server at Clear Sky Cafe in Clearwater, Fla., has been arrested and charged with grand theft for allegedly using her boyfriend's credit card after he refused to buy her a plane ticket back to New York. Serina Wolfe, 24, allegedly used her boyfriend's credit card without his knowledge after he would not buy her a plane ticket back home to Buffalo, N.Y., Fox 2 Now reports. While Wolfe's boyfriend had initially put a hold on his credit card, so Wolfe would not be able to use it to buy the ticket, he eventually lifted it. Wolfe then allegedly used the card to leave a tip of $5,000 on a bill that cost $55.37, which was reported four days ago by multiple outlets . It is not known if the server will get to keep the money. The restaurant has already paid out the tip to the server. However, Wolfe's boyfriend marked the charge as fraudulent. Serina Wolfe is accused of using her boyfriend's credit card, without his knowledge, to leave a $5,000 tip for a server. (Photo: Pinellas County Sheriff's Office) It was previously reported that the server, Ryan, had been going through a tough time, including having to recently put her dog down. Wolfe had, at first, denied making the purchase, and her boyfriend believed she was either drunk or trying to exact revenge. She voluntarily gave her boyfriend's card to deputies and was arrested for grand theft. Read more from Yahoo Lifestyle: Republican congressman wants people to wear New Balance after Nike cancels 'Betsy Ross flag' sneakers Reporter says he was trying to use 'humor' with racial joke that got him fired Black family fires contractor who shows up to job with Confederate flag on truck: 'I cannot pay you' Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day.
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Read This Before Buying F.N.B. Corporation (NYSE:FNB) For Its Dividend
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Is F.N.B. Corporation (NYSE:FNB) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
In this case, F.N.B likely looks attractive to investors, given its 4.2% dividend yield and a payment history of over ten years. We'd guess that plenty of investors have purchased it for the income. Some simple research can reduce the risk of buying F.N.B for its dividend - read on to learn more.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 42% of F.N.B's profits were paid out as dividends in the last 12 months. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Plus, there is room to increase the payout ratio over time.
We update our data on F.N.B every 24 hours, so you can always getour latest analysis of its financial health, here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. F.N.B has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During the past ten-year period, the first annual payment was US$0.96 in 2009, compared to US$0.48 last year. This works out to be a decline of approximately 6.7% per year over that time.
We struggle to make a case for buying F.N.B for its dividend, given that payments have shrunk over the past ten years.
The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Earnings have grown at around 7.3% a year for the past five years, which is better than seeing them shrink! It's good to see decent earnings growth and a low payout ratio. Companies with these characteristics often display the fastest dividend growth over the long term - assuming earnings can be maintained, of course.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. We're glad to see F.N.B has a low payout ratio, as this suggests earnings are being reinvested in the business. Unfortunately, earnings growth has also been mediocre, and the company has cut its dividend at least once in the past. F.N.B might not be a bad business, but it doesn't show all of the characteristics we look for in a dividend stock.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 8 F.N.B analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Is Savencia SA's (EPA:SAVE) Balance Sheet A Threat To Its Future?
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Savencia SA (EPA:SAVE) is a small-cap stock with a market capitalization of €914m. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Assessing first and foremost the financial health is essential, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. Let's work through some financial health checks you may wish to consider if you're interested in this stock. However, this is not a comprehensive overview, so I recommend youdig deeper yourself into SAVE here.
Over the past year, SAVE has ramped up its debt from €920m to €1.1b – this includes long-term debt. With this growth in debt, SAVE's cash and short-term investments stands at €490m to keep the business going. On top of this, SAVE has produced cash from operations of €224m in the last twelve months, leading to an operating cash to total debt ratio of 21%, meaning that SAVE’s current level of operating cash is high enough to cover debt.
Looking at SAVE’s €1.7b in current liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.12x. The current ratio is the number you get when you divide current assets by current liabilities. Generally, for Food companies, this is a reasonable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With debt reaching 76% of equity, SAVE may be thought of as relatively highly levered. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. We can test if SAVE’s debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For SAVE, the ratio of 281x suggests that interest is comfortably covered, which means that lenders may be willing to lend out more funding as SAVE’s high interest coverage is seen as responsible and safe practice.
Although SAVE’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. Since there is also no concerns around SAVE's liquidity needs, this may be its optimal capital structure for the time being. This is only a rough assessment of financial health, and I'm sure SAVE has company-specific issues impacting its capital structure decisions. You should continue to research Savencia to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SAVE’s future growth? Take a look at ourfree research report of analyst consensusfor SAVE’s outlook.
2. Valuation: What is SAVE worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether SAVE is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Joining MEMRI - Lt.-Gen. Vincent R. Stewart, Outgoing Deputy Commander Of U.S. Cyber Command And Former Defense Intelligence Agency (DIA) Director
WASHINGTON, DC / ACCESSWIRE / July 3, 2019 /In April, Lt.-Gen. Vincent R. Stewart, recently retired from his post as Deputy Commander of the United States Cyber Command, joinedMEMRIheadquarters in Washington, D.C. as Special Advisor and Chairman of the MEMRI Board of Advisors.
Lt.-Gen Stewart's previous post was Director of the Defense Intelligence Agency (DIA). Most of his nearly 40-year military career has been in intelligence. He is known for his aggressive stance on cybersecurity, and has said that it is one of his top concerns. His military decorations include: the Defense Superior Service Medal; the Legion of Merit, with one gold star; the Bronze Star; the Meritorious Service Medal, with one gold star; the Navy and Marine Corps Commendation Medal, with two gold stars; the Navy and Marine Corps Achievement Medal; the Combat Action Ribbon; the National Intelligence Distinguished Service Medal; and various unit awards. He is the first African-American and the first Marine to lead the DIA.
In October 2017, as Lt.-Gen. Stewart was leaving the post of DIA director, Director of National IntelligenceDaniel Coats presented him withDirector of National Intelligence Gold Medallion award, commending him as a "true patriot and anexceptional leader" for his service, and as a "visionary leader." On the same occasion, he wasawarded the DefenseDistinguished Service MedalbyDeputy Defense Secretary Pat Shanahan, representing Defense SecretaryJim Mattis, who praised himfor strengthening integrated intelligence centers at the combatant commands and modernizing operational capabilities, and for his outreach to allies and partners around the world. Previously, as he took up the post, Director of National Intelligence James Clappercommended himas exceptionally qualified to serve in it, and for his temperament, professional background, leadership skills and integrity that made him eminently suited to be DIA director.
Lt.-Gen. Stewart's joining MEMRI will enhance MEMRI's relationships with the U.S. government and with all branches of the military, and his unique expertise will contribute immeasurably to our Cyber and Jihad Lab (CJL) and Jihad and Terrorism Threat Monitor (JTTM) projects. He said: "I am proud to be a part of the MEMRI team and looking forward to growing MEMRI's products in the future."
About MEMRI:
Exploring the Middle East and South Asia through their media,MEMRIbridges the language gap between the West and the Middle East and South Asia, providing timely translations of Arabic, Farsi, Urdu-Pashtu, Dari, and Turkish media, as well as original analysis of political, ideological, intellectual, social, cultural, and religious trends.
Founded in February 1998 to inform the debate over U.S. policy in the Middle East,MEMRIis an independent, nonpartisan, nonprofit, 501(c)3 organization. MEMRI's main office is located in Washington, DC, with branch offices in various world capitals. MEMRI research is translated into English, French, Polish, Japanese, Spanish and Hebrew.
MEMRI - Middle East Media Research Institute:https://www.memri.org
MEMRI In The Media:https://memriinthemedia.org
MEMRI TV - MEMRI:https://www.memri.org/tv
MEMRI on Indeed:https://www.indeed.com/q-Middle-East-Media-Research-Institute-jobs.html
Contact Information:
[email protected]
SOURCE:MEMRI
View source version on accesswire.com:https://www.accesswire.com/550688/Joining-MEMRI--Lt-Gen-Vincent-R-Stewart-Outgoing-Deputy-Commander-Of-US-Cyber-Command-And-Former-Defense-Intelligence-Agency-DIA-Director
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NexTech Launches Contest with Budweiser
Budweiser #BudAR Augmented Reality Activation and Contest to Celebrate Bud Stage's 25th Anniversary
New York, New York and Toronto, Ontario--(Newsfile Corp. - July 3, 2019) -NexTech AR Solutions(OTCQB: NEXCF) (CSE: NTAR) (FSE: N29) (the "Company" or "NexTech") today announced its Budweiser contest for July is now live. Millions of fans can enter to win Bud Stage season tickets just by downloading theARitize™ App. Budweiser selected NexTech's ARitize™ app to trigger an augmented reality experience which is activated when pointing the phone at a 25th anniversary Budweiser can.
Starting today, July 3rd, 2019, NexTech will be running a social media driven #BudAR contest giving away season tickets to the Budweiser stage which will be featuring in July: Bryan Adams, "Weird Al Yankovic", Heart with Cheryl Crow and Elle King, Wiz Khalifa, Time Impala, and Sarah McLachlan.
Click Here:
#BudAR for a chance to WIN A SEASON PASS to Bud Stage!
"The NexTech team has done a fabulous job building its AR/ AI tech stack which is now in use for one of the biggest and best known global brands, a true testament to the quality of their work. Budweiser is bringing AR to the masses through enhanced customer engagements with NexTech," said Evan Gappelberg, CEO of NexTech. "Our industry leading AR technology allows brands to curate an immersive, branded experience where they can sell, teach, communicate and share their product, service or experience through Augmented Reality (AR) accessible across all platforms and devices.''
For a chance to enter, use the sharing feature inARitize™to take a photo of your Budweiser AR experience. Share the picture to social media with the hashtag #BudAR and enter your band which the chosen icon represents. See NexTech's website (www.nextechar.com/contestrules) for more contest details, rules and regulations.
A recent study from Digital Bridge found that74 percent of consumersexpect retailers to offer an augmented reality experience, while Daymon reports that72 percent of consumerssaid they have purchased something they were not planning to after experiencing it through AR.
NexTech has built the industry's most diverse AR and AI technology stack, which is scalable, customizable, and most importantly an easy solution to integrate within an existing web interface, positioning NexTech as the leader in the rapidly growing AR industry, estimated to hit $120 billion by 2022 according to Statista.
About NexTech AR Solutions Corp.
NexTech is bringing a next generation web enabled augmented reality (AR) platform with Artificial Intelligence (AI) and analytics to the Cannabis industry, eCommerce, education, training, healthcare and video conferencing. Having integrated with Shopify, Magento and Wordpress, its technology offers eCommerce sites a universal 3D shopping solution. With just a few lines of embed code, the Company's patent-pending platform offers the most technologically advanced 3D AR, AI technology anywhere. Online retailers can subscribe to NexTech's state-of-the-art, 3D AR/AI SaaS platform. The Company has created the AR industry's first end-to-end affordable, intelligent, frictionless, scalable platform.
To learn more, please follow us onTwitter,YouTube,Instagram,LinkedIn, andFacebook, or visit our website:https://www.nextechar.com.
On behalf of the Board of NexTech AR Solutions Corp."Evan Gappelberg"CEO and Director
For further information, please contact:
Evan GappelbergChief Executive [email protected]
Media contact:
Erin HaddenFischTank Marketing and [email protected]
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be", "looking forward" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the Company increasing investors awareness are based on the Company's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of NexTech to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including capital expenditures and other costs. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. NexTech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46042
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Therma Bright Inc. Continues Testing of TherOZap(TM) Technology Against the Zika Virus
Toronto, Ontario--(Newsfile Corp. - July 3, 2019) - Therma Bright Inc. (TSXV: THRM), ("Therma Bright" or the "Company"), a progressive medical device technology company, is pleased to announce that further to its press releases on October 11thand December 17th, 2018 and March 28th, 2019 that the Company continues testing of the TherOZap™ technology against the Zika virus upon the advice of one of the top research laboratories in Canada working with Therma Bright. A number of additional testing parameters have been added to the testing regime and, as previously reported, the aim of the research lab is to produce statistically relevant results. Therma Bright will report further information as it becomes available.
Further to the press releases on December 17th, 2018 and March 28th, 2019 the Company would like to report that it has identified a base formula that may be combined with medicinal cannabis or other non-medicinal ingredients in the form of creams, gels or salves (the, "Formulations"). In addition, the Company has had several discussions with pain research groups to test the Formulations, the pain relief device and the previously reported testing protocol to determine their effectiveness at reducing general pain or arthritic pain such as: back, hip, knee, foot, hand or other orthopedic pain. The pain relief device incorporates the Company's thermal therapy technology and new add-on technology. Therma Bright expects to report further information as it becomes available. All research and administration of any medicinal cannabis will be dealt with through authorized personnel and licensed research facilities.
Rob Fia, CEO, commented:
"Therma Bright is awaiting the results of the current testing of its proprietaryTherOZap™technology against the Zika virus. We appreciate the prudence and thorough approach being conducted by the research lab carrying out the testing. Therma Bright understands the importance of doing things right with an aim to produce statistically relevant results. We will not rush this process and respect the advice provided by the researchers working on this ground-breaking testing."
About Therma Bright Inc.:
Therma Bright is a progressive medical device technology company focused on providing consumers with quality medical devices that address their dermatological needs. Clear and healthy skin for all is at the core of the Company's philosophy as is the belief that such outcomes should not be a privilege for only those who can afford costly procedures and treatments. The Company's breakthrough proprietary technology delivers effective, non-invasive and pain free skin care.
Therma Bright received a Class II medical device status from the FDA for its platform technology that is indicated for the relief of the pain, itch, and inflammation from over 20,000 different insect stings and bites, (including bees, wasps, hornets, mosquitoes, black flies and jellyfish). The Company received approval for the above claims from FDA (United States) in 1997.
Therma Bright Inc. trades on the TSXV (TSXV: THRM). For more information visit:www.thermabright.comandwww.coldsores.com
For further information please contact:Therma Bright Inc.Rob [email protected]
FORWARD LOOKING STATEMENTS
Certain statements in this news release constitute "forward-looking" statements. These statements relate to future events or the Company's future performance and include research, development and testing of the Company's pain relief device, Formulations and a testing protocol to be applied for pain relief via pain research groups, theTherOZap™technology being tested against the Zika virus, all as described in the news release. All such statements involve substantial known and unknown risks, uncertainties and other factors which may cause the actual results to vary from those expressed or implied by such forward-looking statements. In addition to other risks, the Company may not complete all or any of the tests as described in this news on the timelines described. Forward-looking statements involve significant risks and uncertainties, they should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved. Actual results could differ materially from those anticipated due to a number of factors and risks. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46039
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Metron to Assist Aurania in the Search for the Lost Cities in Ecuador
Toronto, Ontario--(Newsfile Corp. - July 3, 2019) -Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (FSE: 20Q) ("Aurania" or the "Company")is pleased to announce that Metron Incorporated ("Metron") of Reston, Virginia, USA has joined the Lost Cities - Cutucu Project ("Project") team. Metron will provide data analytic and statistical analysis services to Aurania to help refine its search for the gold mining centres, Logroño de los Caballeros and Sevilla del Oro. These were major gold mines operated by the Spanish in Colonial times. Based on historical records, Aurania believes these mines are located within its large, 2,080 square kilometre Project in southeastern Ecuador.
Metron has 35 years of experience in Bayesian Search Theory and has developed sophisticated computer algorithms to generate probability maps that identify specific targets even in cases where the data is ambiguous and contradictory. Metron is an established scientific consulting company with a long history of solving very difficult problems. Earlier in his career, Metron Chief Scientist, Dr. Lawrence D. Stone, was part of the team that located the lost nuclear submarine USS SCORPION. He later led the Metron technical team that generated probability maps that led to the discovery of the SS CENTRAL AMERICA: the fabled "Ship of Gold" that went down in the Atlantic during an 1857 hurricane carrying 21 tons of California gold. The CENTRAL AMERICA discovery was based largely on the use of historical documentation. In a recent success, Metron's probability maps led searchers to the location of the black boxes of Air France flight 447 on the Atlantic seafloor.
Aurania's Chairman and CEO, Dr. Keith Barron, commented, "The plan is that Metron will work with Aurania on a wide range of information, including an extensive archive of historical data and ancient maps culled from international sources over a decade by Professor Octavio Latorre and I, integrated with topographic data, geological information, exploration results, geophysics and satellite imagery. Aurania's Project area will be divided up into geographic cells, each of which will be assigned a probability ranking based on the combination of the available data. Cells with the highest probability ranking will be prioritized for focussed follow-up, supported by LiDAR surveys (light direction and ranging), a technology that has been used successfully in the discovery of lost cities in jungle-covered areas of Guatemala, Honduras and Cambodia. It is hoped that this initiative will substantially accelerate our exploration of the Lost Cities."
Dr. Barron continued, "Metron's participation with Aurania is extremely exciting and, to our knowledge, we are the first resource company to use Bayesian Search Theory in regional exploration for gold deposits. Intuitively, geologists have done this for decades, pulling together and compiling observations from the field work, and past historical activity to find the most likely area to contain mineral deposits. Instead of geological hunches, Bayesian Search Theory reduces things to statistical probabilities. In a similar way that the "Disrupt Mining" movement has used crowdsourcing of Big Data to process massive data sets with notable successes in the Red Lake and Val d'Or camps, this could revolutionize current exploration practice."
Metron is a scientific consulting company dedicated to solving challenging national security problems through rigorous innovation grounded in first-principles, delivering creative, tailored solutions through advanced mathematics, computer science, physics, and engineering.
About Aurania
Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities - Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.
Information on Aurania and technical reports are available atwww.aurania.comandwww.sedar.com, as well as on Facebook athttps://www.facebook.com/auranialtd/, Twitter athttps://twitter.com/auranialtd, and LinkedIn athttps://www.linkedin.com/company/aurania-resources-ltd-.
For further information, please contact:
Carolyn MuirManager - Corporate & Investor ServicesAurania Resources Ltd.(416) [email protected]
Dr. Richard SpencerPresidentAurania Resources Ltd.(416) [email protected]
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) 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/46041
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Bear of the Day: Foot Locker (FL)
Today’s Bear of the Day is a stock that had been a high-flier until last quarter. A bearish earnings report sealed the deal for the bears, causing a tough selloff for long-term investors. The writing was, however, on the wall before this report. Earnings estimates had already begun to rollover, well ahead of the report. One way to uncover this potential looming danger in stocks is to lean on the Price, Consensus and Earnings chart on Zacks. I’ll show you how to avoid these potential pitfalls in the future by using this chart.
The stock I’m talking about is Zacks Rank #5 (Strong Sell)Foot Locker (FL).Foot Locker, Inc., through its subsidiaries, operates as an athletic shoes and apparel retailer. The company operates in two segments, North America and International. The company retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep, and SIX:02. It also sells team licensed merchandise for high school and other athletes.
The reason for the unfavorable rank lies in the series of earnings estimate revision to the downside coming from analysts. Following its last earnings report, eleven analysts cut their earnings estimates for both the current year and next year. The bearish sentiment has dropped the Zacks Consensus Estimate for the current year down from $5.20 to $5.02. Next year’s number has also been brought lower, from $5.68 to $5.44.
Taking a quick look at the Price, Consensus and EPS Surprise chart, you can see the earnings trend begin to top out in mid-2019. Estimates rounded off, flattening after a strong trend upwards. The red arrows on this chart also indicate earnings reports which missed consensus estimates. Note the downtrend in estimates in mid-2017 which led to two straight misses. So far, estimates have just come down a little for Foot Locker, meaning that the worst could be over. Look for an uptick in estimates to signal that the stock is out of the woods.
Foot Locker, Inc. price-consensus-chart | Foot Locker, Inc. Quote
The Retail – Apparel and Shoes Industry is in the Top 38% of our Zacks Industry Rank. Other stocks within the same industry to check out include three Zacks Rank #1 (Strong Buy) stocks. These includeGenesco (GCO)andXcel Brands (XELB).
This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated+98%,+119%and+164%gains in as little as 1 month.Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportXcel Brands, Inc (XELB) : Free Stock Analysis ReportGenesco Inc. (GCO) : Free Stock Analysis ReportFoot Locker, Inc. (FL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.
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5 patriotic movies to binge this Fourth of July, from 'Captain America' to 'Rogue One'
Get your hot dogs, apple pie, fireworks and bottles of sunscreen ready, its almost the Fourthof July. The holiday celebrating the signing of the Declaration of Independence falls on a Thursday this year, which means you'll hopefully get a bit of an extra break from your 9-to-5 grind and daily traffic jams to soak up some fun in the sun or relax by the pool. But if youre looking for something to fill the time around the big fireworks show or you just need a little break from the outdoor heat, weve rounded up five appropriately themed patriotic movies to celebrate in style this summer. If you want something traditional: 'Independence Day' Why stray from a modern classic? The 1996 original sci-fi epic has everything you want for the Fourth of July: Aliens, giant explosions, patriotic speeches and Will Smith. By the time the films president (Bill Pullman) is shouting Today we celebrate our Independence Day! youll be shouting along with him. Stream it on Hulu . Chris Evans in If you love superheroes: 'Captain America: The Winter Soldier' Sure, Caps first outing in "The First Avenger" is set during World War II and recreates the iconic comic book cover of the hero punching Hitler, but the second film is a better, more nuanced portrayal of the patriotic hero, played by Chris Evans . Directed by "Endgame's" Joe and Anthony Russo, "Winter Soldier" is a thought-provoking film that's among the best Marvel has to offer . Rent it on Amazon , Google Play , iTunes , Vudu or YouTube . Ranked: Every Marvel superhero movie, from best to worst (including 'Avengers: Endgame') If you love Tom Cruise: 'Top Gun' Are you excited for the "Top Gun" sequel? Of course you are. The original film, which stars Tom Cruise as hot-shot pilot Lt. Pete "Maverick" Mitchell, is a classic for a reason. What better time to revisit the rivalry between Maverick and Tom "Iceman" Kazansky (Val Kilmer) than at a Fourth of July barbecue? Story continues Rent it on Amazon , Google Play , iTunes , Vudu or YouTube . If you want good, clean and cheesy fun: 'National Treasure' Theres no better movie for an American history nerd than "National Treasure," which gives the revolutionary era an Indiana Jones-style historical scavenger hunt. Nicolas Cage and Diane Kruger star as a treasure hunter and historian, respectively, following clues to a supposed historical treasure hidden by the Founding Fathers. Come for the earnest appreciation of history from Cages Ben Gates, stay for Sean Bean's villainous Ian Howe and Justin Bartha's Riley Poole as comic relief. Stream it on Netflix . Ben Gates (Nicolas Cage) in a scene from If you're a 'Star Wars' fan: 'Rogue One: A Star Wars Story' The Star Wars spin-off may take place in a galaxy far, far away rather than the U.S., but its themes are similar to any good patriotic story. Felicity Jones stars as Jyn Erso, the daughter of a scientist kidnapped by the Empire and forced to work on a nefarious weapon: the Death Star. Jyn and a team of misfits set out to steal the plans for the planet-killer and deliver them to the Rebellion. Rent it on Amazon , Google Play , iTunes , Vudu or YouTube . This article originally appeared on USA TODAY: Fourth of July fun: 5 patriotic movies to binge-watch
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As Kamala Harris surges, a question looms: What to do about Iowa?
Sen. Kamala Harris’s three-day trip to Iowa, which starts July 3, would have been just another 2020 campaign story only a week ago. But after the first-term senator’s Miami debate takedown of former Vice President Joe Biden, Harris will arrive in Des Moines this afternoon under a far greater microscope now that she is surging in national and Iowa polls and is suddenly seen as a potential frontrunner rival to Biden. One question will follow Harris as she visits a series of July 4 barbecues: Is she running to win the Iowa caucuses? History suggests those who don’t focus on the state risk putting their chance at the presidential nomination in peril. The conventional wisdom before Miami was that Harris would do her best in Iowa on Feb. 3 , with her eye on the fourth primary contest in South Carolina on Feb. 29. A strong showing in the Palmetto State would set her up for a potentially huge win March 3 in her home state of California, and in a number of Super Tuesday states across the South, where African-American women are a key constituency: Alabama, Arkansas, North Carolina, Tennessee and Virginia among them. Kamala Harris at the Iowa Democratic Party’s Hall of Fame Celebration last month in Cedar Rapids. (Photo: Charlie Neibergall/AP) The New Yorker wrote as recently as June 26 that there was “no other path to the nomination” than this South Carolina and California one-two punch. Yet since the Iowa caucuses were first held in 1972, the eventual nominee in both parties has finished in the top two in Iowa in all but four contests. Historically, Iowa has not just been important to a candidate’s chances of being the nominee, it’s been vital. Harris spokesman Ian Sams told Yahoo News that Harris is “100 percent playing in Iowa.” And the Harris campaign announced Tuesday that it had hired 30 new field organizers in the Hawkeye State, along with a trio of statewide operatives, quieting talk from just a month ago that she was shortchanging an aggressive organizing push ahead of the caucuses. But the senator has so far spent more time in South Carolina. She will be making her fifth trip to Iowa this week but will then head to South Carolina on Sunday and Monday for her ninth visit as a presidential candidate. Story continues Harris shares a moment with old friend Rep. Barbara Lee and Carlottia Scott at a campaign event in Columbia, S.C., last month. (Photo: Leah Millis/Reuters) The Harris campaign thinks the eventual nominee could finish as low as fourth or fifth in Iowa and still have a chance to win nationally, a campaign official told Yahoo News. “There could be as many as four or five tickets out of Iowa,” the aide said. The Harris campaign’s thinking is that this election might buck the long-term Iowa trend because of “the historically large and diverse field, as well as proportional delegate allocation rules that could extend the primary by creating no clear runaway frontrunner.” By this logic, Harris is preparing for a long primary, and that may be a good bet. But a long primary and a decisive Iowa result are not mutually exclusive. They are, in fact, highly compatible. The primary could very well extend to the Democratic National Convention next July. But that doesn’t change the fact that the morning after the Iowa caucuses, “the top two finishers are going to be on fire ... and that’s going to define the race,” said Joe Trippi, a Democratic consultant who has worked on presidential campaigns going back to 1980. The past is littered with the carcasses of candidates who overlooked Iowa, Trippi said. One of the most recent examples is Rudy Giuliani in 2008, who waited for the Florida primary but found out he was dead in the water by that point. “Momentum is a helluva thing,” said Bakari Sellers, a former state legislator in South Carolina who has endorsed Harris. Nonetheless, he too, like Harris’s aide, said “there are going to be four or five tickets out of Iowa.” Trippi, however, said that finishing in the top two in Iowa is not just about creating or preserving momentum for your own candidacy; it’s also about preventing another candidate from getting it. For example, he said, in 1988 the eventual winner of the Democratic primary was Massachusetts Gov. Michael Dukakis, who finished third in Iowa. But that year’s caucus is a cautionary tale nonetheless, because Sen. Al Gore of Tennessee thought he could let Dukakis win Iowa on Feb. 8 and wait for a mammoth Super Tuesday on March 8, when his home state would be one of nearly a dozen Southern states holding a primary vote. 1988 Democratic presidential hopeful Gov. Michael Dukakis in Davenport, Iowa, in 1987. (Photo: Steve Liss/the Life Images Collection via Getty Images/Getty Images) But Gore didn’t anticipate that Rep. Dick Gephardt of Missouri would come from single-digit poll numbers and within three weeks surge to first in Iowa, which dramatically changed the math of the race. Now, instead of a one-on-one face-off with Dukakis for the mainstream wing of the party, with civil rights activist Jesse Jackson taking a lion’s share of the African-American vote, Gore was fighting a two-front battle. “Dukakis wins New Hampshire, we’re all going south, and guess who’s pulling enough centrist white voters off of Gore? The guy he let get in the middle of him and Dukakis,” Trippi said. Historical anomalies like George H.W. Bush in 1988 and John McCain in 2008 do exist, Trippi said. Bush finished third among five candidates and McCain finished fourth among seven candidates, and both became the nominee. However, the list of candidates who have finished first or second in Iowa and gone on to win their party’s nomination is much longer: George McGovern, Jimmy Carter (twice), Ronald Reagan, Walter Mondale, Bob Dole, Al Gore (in 2000), George W. Bush, John Kerry, Barack Obama, Mitt Romney and Donald Trump. That’s a final tally of 12 contests where Iowa punched only two tickets, and only three where the eventual nominee finished lower than first or second. And so the law of averages says candidates should go all-out in Iowa. Trippi cautioned strongly against assuming Iowa would play any less of a role in 2020. “Until someone proves to me that the world really is upside down, the laws of gravity really don’t exist, I’m going to believe it’s a really big mistake until someone proves that it’s not,” he said. “But I wouldn’t risk it.” Read more from Yahoo News: GOP whip Scalise cites Trump accuser’s ‘bizarre’ CNN interview in doubting her account Pentagon secretly struck back against Iranian cyberspies targeting U.S. ships Trump admits his Cabinet had ‘some clinkers’ ‘Great Replacement’ ideology is spreading hate in U.S. and across the globe How Europe’s smallest nations are battling Russia’s cyberattacks PHOTOS: Hong Kong protesters take over legislative chambers
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Where will Facebook’s Libra be in six months?
Predictions for Facebook's Libra Depending on who you ask, Libra—a cryptocurrency announced by Facebook last month —could usher in a new era of banking , or it could cause the next financial crisis . Although Facebook shared plans for a Swiss non-profit called the Libra Association, which will manage its cryptocurrency’s reserves and network, the social media giant hasn’t provided many details about the governing body or Libra itself. Will Libra coins trade for $1 apiece? What happens when a Facebook account gets hacked? What if there’s a default on Libra’s underlying reserves? Many specifics are still to be determined—or studied. Jeffrey Epstein’s fortune is built on fraud, a former mentor says Facebook has portrayed its vague approach as a collaborative one which might encourage input from other members of the Libra Association, but it’s also given lawmakers cause for concern. Already US congresswoman Maxine Waters, a Democrat from California, has called for a moratorium on Libra’s development, and on July 2, dozens of consumer groups joined her plea, sending a letter to US regulatory agencies to express their concerns. In view of Libra’s backlash and the trickle of information from Facebook, many academics and executives are speculating about the cryptocurrency’s future, and what it might mean for Facebook users. Here are five ways the Libra could shake out, ranked in order of probability: Libra gets delayed until 2021 The simplest way to improve your credit score is by using your email If there’s one thing crypto enthusiasts know, it’s that release dates are flexible. Although Facebook said Libra will launch in the first half of 2020, the timeline seems optimistic. Other open-source crypto projects, like ethereum and Tezos, have repeatedly been delayed—for years—because of technical shortcomings as well as legal squabbling and infighting . Facebook is different because it’s an established company, but it faces an unprecedented challenge in scaling a blockchain network for billions of users. (It’s never been done before.) Of course, Facebook is also under tremendous regulatory scrutiny for its past privacy transgressions and monopolistic behavior , and the unfavorable response from international authorities has also thrown cold water on Facebook’s crypto plans. Because of the many uncertainties about how the network will operate and be managed, the chances of Libra going live in 2020 seem slim at best. Story continues Libra launches as a glorified checking account Financial authorities recognize the Libra network could facilitate near-instantaneous transactions, and they view that as a potential threat. Regulators worldwide are concerned that Libra could be used for money laundering and terrorist financing, issues that are directly linked to identification requirements. Facebook and its banking/exchange partners will need to ensure that anyone who uses Libra (or redeems it) passes standard background checks. Compliance matters could—and probably will—force Facebook to shrink its vision for Libra. While Facebook and the Libra Association may promote adoption by offering financial incentives to merchants, it seems likely that regulators would require limitations on who may send or receive the digital units. The network structure that Facebook is currently proposing—where anyone can send funds to anybody else, as in bitcoin—just won’t pass muster. To make Libra acceptable to regulators, it might get repackaged as something similar to the banking services that already exist. Libra might be useful in countries that lack financial infrastructure, and it could help with international transfers to family and friends, but that depends on whether transaction fees are lower than existing options. That could still be revolutionary for developing economies , but not quite as chaotic as Facebook’s current vision of boundary-less digital cash, available to all, and used to purchase just about anything and everything. A US presidential candidate proposes a national crypto Putting the US dollar on a blockchain is a bad idea. It would become an immediate target for cybercriminals, there still isn’t a good way to handle the irreversibility of crypto transactions, and the US already has electronic money in the commercial sphere that works perfectly well. However, that might not be enough to deter a pro-blockchain candidate. Joseph Grundfest, a Stanford Law professor, said it would be a “delicious irony … if Facebook’s Libra proposal stimulates the United States government to develop a functionality that operates like Libra, backed by U.S. dollar deposits, but operated by the U.S. government.” Grundfest predicts a presidential candidate proposes a government crypto in “the not-too-distant future.” ( Andrew Yang seems to fit the profile. He already has a crypto platform .) Superficially, it seems to make sense to get ahead of Facebook by offering a national alternative. But upon examination, a national crypto could threaten the relationship between the Fed and retail banks, increase the likelihood and severity of bank runs , and substantially increase financial crime. A blockchain-based US dollar should be taken seriously—but perhaps, as a serious threat. Facebook cancels the project Remember Google Glass ? Or AirPower ? Those product failures/cancellations are instructive. Facebook’s Libra could die an unceremonious death before, or maybe soon after, its launch. To be fair, six months is probably too soon for Facebook to pull the plug. (It’s a billion-dollar initiative, after all.) But the company could subtly change strategy, and allocate talent to other projects or reduce its funding. The Libra Association, in particular, seems like a critical weakness, where Facebook and its partners may struggle to reach agreement over the network’s standards—for privacy, transaction fees, interest payments, and other matters. Other crypto consortiums, like the Enterprise Ethereum Alliance and R3 , haven’t accomplished much beyond trials and press releases in the last several years . Libra abandons its peg There are many hurdles to jump before Facebook could reach this stage, but the company’s long-term vision for Libra could mirror bitcoin more closely than we realize. Mike Novogratz , CEO of Galaxy Digital, a crypto merchant bank, suggested that Libra may eventually abandon its peg, just like the US dollar ditched the gold standard in 1971. It’s far too early to say what that would mean for Facebook’s share of digital commerce or how that would impact domestic monetary policy. Private money run by Facebook could threaten the efficacy of tax collection, and it could even lead to a hyperinflated US dollar. Those possibilities may sound extreme, but this scenario warrants consideration because it could change society’s relationship to money (from government-issued to company-issued). Again, it’s unlikely that Libra would pivot that dramatically in its early stages, but its underlying reserve policy deserves close attention. Sign up for the Quartz Daily Brief , our free daily newsletter with the world’s most important and interesting news. More stories from Quartz: The glow of the historic accord between Ethiopia and Eritrea has faded Zimbabwe banned the US dollar from being used so local bitcoin demand is soaring again
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Bitcoin Rallies $2K in 24 Hours But Price Hurdles Remain Intact
• Bitcoin has risen nearly $2,000 in the last 24 hours, establishing strong support at $9,600.
• The outlook, however, would only turn bullish once the bearish lower-highs pattern is invalidated with a move above $12,448. A breakout, if confirmed, could be followed by a rise to or above the recent high of $13,880.
• Bitcoin could fall back to $9,600 if prices fail to hold above $10,830 in the next 24 hours, validating the bearish crossover of the 5- and 10-day moving averages.
Bitcoin (BTC) has risen sharply in the last 24 hours, but a key price hurdle must still be passed to confirm a bull revival.
The premier cryptocurrency by market valuewason the defensive in the early European trading hours on Tuesday, having breached support at $10,300 on the back of high volumes.
The ensuing sell-off, however, was cut short near $9,614 and prices rose back above $10,300 in the U.S. session, confirming a bullish double-bottom breakout. The price jumped to $10,700 following the breakout, as expected, and extended gains further to hit a high of $11,575 on Bitstamp earlier today.
Related:Blockstream Launches Atomic Swaps on Liquid Bitcoin Sidechain
With the $2,000 rally, bitcoin has established a base or technical support around $9,600. The quick recovery could also be considered a sign of strong demand below the psychological level of $10,000.
However, it is still too early to call a retest of the recent high of $13,880, as the cryptocurrency is yet to invalidate the most basic of all bearish patterns – a lower high. For that, the price needs to rise above the June 28 high of $12,448.
As of writing, BTC is changing hands at $11,350 on Bitstamp, representing 11 percent gains on a 24-hour basis.
Related:June Sets Records for CME Bitcoin Futures as Sign-Ups Surge 30%
A high-volume break above the bearish lower high of $13,880 (above left) would confirm an end of the price pullback and open the doors to a retest of, and possibly a break above, the recent high of $13,880.
Traders may argue that the cryptocurrency has already breached the falling channel – a sign of bullish reversal.
While that’s true, the breakout wasn’t backed by a surge in buy volume (green bars). Further, sell volumes have been higher than buy volumes post-breakout – a trend that has been in place ever since bitcoin topped out at $13,800. That puts a question mark on the sustainability of gains above $11,000.
And widely followed long-term technical indicators like the 14-week relative strength index (RSI) continue to report overbought conditions with an above-70 reading. In such situations, price breakouts on the hourly and other shorter-duration charts often end up trapping the bulls on the wrong side of the market.
Hence, it’s likely safer to wait for stronger confirmation of a bull revival in the form of a break above $12,448.
BTC created a bullish hammer candle on Tuesday, comprising of a long lower wick – a sign of dip demand or rejection of lower prices – and a small body (the gap between open and close).
The hammer pattern is widely considered a sign of bullish reversal. The candle’s success rate, however, is higher when it appears after a prolonged downtrend, which isn’t the case here. Nevertheless, the candle does indicate that $9,614 is now the level to beat for bears.
That level could come into play if prices drop below $10,830 (today’s low), reinforcing the bearish view put forward by the cross of the 5-day moving average below the 10-day average.
Disclosure:The author holds no cryptocurrency at the time of writing
Bitcoinimage via Shutterstock; charts byTradingView
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Gold Prices Take a Breather, but More Gains Could Be Ahead
This article was originally published onETFTrends.com.
The market expectation of future rate cuts by the Federal Reserve saw gold surpass its 5-year high last week after the central bank said it “will act as appropriate to sustain” economic expansion. Gold prices took a breather by falling below the $1,400 price level to start the trading week, but it could be the precursor to more gains ahead.
“What we’re likely to see is some interest in terms of the share price rising, but we’re also going to see a rush of companies running to their bankers hoping to raise money with this increase in the gold price,”saidBrent Cook of Exploration Insights.
The recent gains in gold prices are affecting players in the precious metal industry at various levels.
“Mid-tier companies recognize they can’t replace their current reserves with economic deposits, and they’re going to be fishing down into the junior sector looking to pick up resources or probably, more importantly, solid prospects run by good junior companies that offer the potential to a major discovery, something they can look at putting into production ten years down the road. That’s really where the money’s going to go eventually, I think,” Cook added.
Investors can look at exchange-traded funds (ETFs) like theSPDR Gold MiniShares (GLDM) andSPDR Gold Shares (GLD) . Adding precious metals to a portfolio certainly speaks to the diversification benefits of gold, among other things.
Leveraged exchange-traded fund (ETF) traders rejoiced, which saw funds like theDirexion Daily Gold Miners Bull 3X ETF (NUGT)rise. Additionally, short-term traders can also play the gold market through miners via theVanEck Vectors Gold Miners (GDX) and theDirexion Daily Jr Gold Miners Bull 3X ETF (JNUG).
“They’re two different investment scenarios. The physical gold, you’re holding in case of a complete disaster. The miners, you’re speculating on an increasing gold price and that gives you much more leverage,” said Cook.
A data-fueled Fed will no doubt take into account the latest economic data, such as the latest jobs report from the Commerce Department as an indicator on the health of the economy. Earlier this month, the Labor Department revealed that only 75,000 jobs were created in May, which fell below expectations and could be a sign that the U.S. economy could be on the verge of a slowdown.
Now that a U.S.-China trade deal is left in limbo, it leaves investors looking for the next trigger event to save the markets. With the central bank keeping rates steady thus far in 2019, the next move investors are hoping for is a rate cut, especially if the Fed is sensing a slowdown given the latest economic data.
That should give gold ETFs a boost through the rest of the year until a cut actually happens.
For more relative market trends, visit ourRelative Value Channel.
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Do You Know About Cervus Equipment Corporation’s (TSE:CERV) ROCE?
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Today we are going to look at Cervus Equipment Corporation (TSE:CERV) to see whether it might be an attractive investment prospect. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business.
First up, we'll look at what ROCE is and how we calculate it. Then we'll compare its ROCE to similar companies. Then we'll determine how its current liabilities are affecting its ROCE.
ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. In general, businesses with a higher ROCE are usually better quality. Ultimately, it is a useful but imperfect metric. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.'
Analysts use this formula to calculate return on capital employed:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Cervus Equipment:
0.11 = CA$42m ÷ (CA$664m - CA$283m) (Based on the trailing twelve months to March 2019.)
Therefore,Cervus Equipment has an ROCE of 11%.
Check out our latest analysis for Cervus Equipment
ROCE is commonly used for comparing the performance of similar businesses. Using our data, Cervus Equipment's ROCE appears to be around the 12% average of the Trade Distributors industry. Separate from Cervus Equipment's performance relative to its industry, its ROCE in absolute terms looks satisfactory, and it may be worth researching in more depth.
The image below shows how Cervus Equipment's ROCE compares to its industry, and you can click it to see more detail on its past growth.
When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. ROCE is, after all, simply a snap shot of a single year. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for Cervus Equipment.
Current liabilities are short term bills and invoices that need to be paid in 12 months or less. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets.
Cervus Equipment has total assets of CA$664m and current liabilities of CA$283m. Therefore its current liabilities are equivalent to approximately 43% of its total assets. Cervus Equipment has a middling amount of current liabilities, increasing its ROCE somewhat.
Cervus Equipment's ROCE does look good, but the level of current liabilities also contribute to that. Cervus Equipment shapes up well under this analysis,but it is far from the only business delivering excellent numbers. You might also want to check thisfreecollection of companies delivering excellent earnings growth.
I will like Cervus Equipment better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Which Markets Are Best for Job Seekers?
The booming job market hasn't hit all markets equally. Even though there are over 5.65 million jobs open in the United States -- pretty close to the peak of 5.81 million in April 2019 -- trends suggest that hiring may be slowing down and wages might be flattening out. That may be because some companies have chosen to give up. If you can't fill a position, or can't fund a quality applicant for your opening, it might make sense to either wait or find an alternative way to get the work done. A man gestures to a machine in front of a group of factory workers. Manufacturing has seen its growth slow down. Image source: Getty Images. Where should I look for a job? That doesn't mean growth has stopped. Both wages and openings continue to increase, according to the most recent Glassdoor Economic Research's Job Market Report . That study, which is based on the online job site's millions of pieces of data, shows that some major U.S. geographic areas have more openings and/or faster salary growth than others. Here's what the growth in job openings and pay across 10 major U.S. metro areas looks like. Area Job Openings YOY % Median Base Pay YOY % U.S. national 5,646,920 1.4% $53,411 1.7% Philadelphia 107,288 6.3% $57,055 1.7% Atlanta 119,848 5.9% $54,930 1.8% Boston 146,152 5.8% $61,958 2.7% Seattle 109,322 4.3% $63,202 2.4% Washington, D.C. 177,198 1.4% $61,446 2.1% Chicago 189,258 0.5% $57,737 1.7% New York City 293,049 0.2% $63,953 2.4% San Francisco 142,167 (0.1%) $72,467 3.1% Los Angeles 206,780 (0.3%) $62,460 2.5% Houston 90,858 (7.9%) $56,228 0.7% Data source: Glassdoor. YOY = year over year. There are a number of trends behind this data. The most important might be that jobs in transportation and logistics have grown by 49%, driven by increasing demand from retailers. Manufacturing, conversely, has shown a 13.4% decrease in openings. Story continues "The risks of escalating trade tensions with Mexico and China have dampened employer sentiment and hiring plans in the manufacturing industry, as reflected in several weak [Federal Reserve] surveys in June," according to the Glassdoor report. "Additionally, as job openings are a forward-looking indicator of employer confidence, the decline in job openings signals that the broader slowdown in manufacturing may not be over." It's also worth noting that small businesses have seen the largest increase in job openings. That's largely because it's harder for smaller companies to find people to hire. What should you do? While you shouldn't move to an area because it seems like there are a lot of job openings there, you might target your search in markets with more openings. Do your homework and use all the available data to figure out which areas have the most openings you might be able to fill. It may make sense to move for a job if moving brings you a better salary and more long-term opportunity. Of course, you also need to figure in the cost of living. San Francisco, for example, has a lot more technology openings than most markets, but it also has sky-high living costs. Look at the whole picture and search in markets where you could live and work happily. More From The Motley Fool 10 Best Stocks to Buy Today The $16,728 Social Security Bonus You Cannot Afford to Miss 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) What Is an ETF? 5 Recession-Proof Stocks How to Beat the Market The Motley Fool has a disclosure policy .
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No technocrat, Lagarde brings listening, diplomacy to ECB table
By Balazs Koranyi FRANKFURT (Reuters) - Christine Lagarde will raise the profile of the European Central Bank, making it a more politically-savvy institution that takes its message directly to the people. However policy innovation, the trademark of her predecessor, may be relegated. In return, Lagarde may be able to use her considerable diplomatic skills to persuade Germany to help temper a euro zone slow-down by raising its spending levels a feat outgoing ECB chief Mario Draghi failed to achieve. Facing a protracted crisis, Draghi and his team of highly-trained monetary policy-makers have essentially devised the world's biggest experiment in unconventional policy over the last five years. Weak growth suggests the stimulus path must be pursued, even as the limits of its existing tools are nearing. With little training or experience in monetary policy, Lagarde, who takes over from Mario Draghi on Nov 1, will be the arbiter and not the driver of the policy innovation that is now needed, putting a greater burden on Philip Lane, the ECB's new chief economist, and the bank's staff. "The question is whether the monetary policy brain drain with the departures of (former chief economist) Peter Praet, (former vice president) Vitor Constancio and Mario Draghi will be equally replaced or whether Philip Lane might soon be the last pragmatic monetary economist standing in the ECBs Executive Board," ING economist Carsten Brzeski said. Draghi, himself a PhD economist who wrote a dissertation at the Massachusetts Institute of Technology (MTI) on economic theory and its application, has in contrast been the head of the ECB's brain trust, surrounding himself with some of the euro zone's best minds while ultimately making the big calls himself. In his 2012 speech promising to do "whatever it takes" to save the euro - widely credited with holding the bloc together during the darkest days of its debt crisis - Draghi took the initiative himself, forcing an unaware Governing Council to follow and line up behind him. Story continues Indeed, his colleagues say that many of the ECB's big decisions, including increases and extensions of bond purchases, were driven by Draghi, with policy meetings only ironing out details but not setting the direction of travel. Even last month, when Draghi put policy easing firmly on the table, he caught many of his colleagues unaware and likely tied Lagarde's hands for much of her first year. But Lagarde, the IMF's Managing Director, may be more of a listener, which could give a greater role to the Governing Council in shaping policy and improve the diversity of views. "Mario Draghi was very close to the markets and listened to them perhaps too much," one policymaker, who asked not to be named, said. "That is not to be expected with Lagarde. She listens to experts more." Listening and engaging in politics may be Lagarde's strength. That is significant since the ECB's policy arsenal is largely exhausted and the biggest lever is now fiscal policy, controlled by the 19 euro zone capitals and not the ECB. "The hope is that she can contribute, in her own way, to a shift toward a more proactive fiscal policy in Berlin," Frederik Ducrozet, a strategist at Pictet Wealth Management said. Obsessed with budget surpluses and paying down debt, Germany has been reluctant to spend more and Draghi's biggest failure may prove to have been not convincing German Chancellor Angela Merkel to use record low borrowing costs to invest more. A keen Twitter user and advocate of simplifying policy messages so ordinary people can tune in, Lagarde is also likely to revamp how the ECB speaks. This may be a double-edged sword, as Draghi himself pointed out recently. "The limit, the border-line between central banks and politics is also drawn by language," Draghi said last month. "Once you stop talking to your natural constituency and venture into a different audience, using a different language, you naturally enter into the political sphere." Some argue that the bank, run by unelected bureaucrats, is already a political beast whether it likes it or not. Its massive bond purchases, a key tool to cut borrowing costs, have already resulted in some redistribution of wealth, benefiting the rich disproportionately by pushing up asset prices. Becoming yet more political could even jeopardize the bank's independence, its biggest asset. This was already an issue several years ago when the bank came under fire from Wolfgang Schaeuble, then Germany's finance minister, who only toned down his criticism of ultra-easy monetary policy after the Bundesbank itself stood up for the independence of the ECB. (Editing by Mark John)
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Major NRA donor to lead rebellion gunning for ‘radioactive’ leader Wayne LaPierre
Even as the National Rifle Association (NRA) has been consumed by relentless and increasingly public infighting, Wayne LaPierre has maintained a firm grip on its leadership. Now one of the gun group’s major benefactors says he is preparing to lead an insurgency among wealthy contributors to oust Mr LaPierre as chief executive, along with his senior leadership team. Such a rebellion would represent a troublesome new threat to Mr LaPierre, as his organisation’s finances and vaunted political machine are being strained amid a host of legal battles, most notably the New York attorney general’s investigation into its tax-exempt status. David Dell’Aquila, the restive donor, said the NRA’s internal warfare “has become a daily soap opera, and it’s decaying and destroying the NRA from within, and it needs to stop”. He added, “Even if these allegations regarding Mr LaPierre and his leadership are false, he has become radioactive and must step down.” Until that happens, Mr Dell’Aquila, a retired technology consultant who has given roughly $100,000 (£80,000) to the NRA in cash and gifts, said he would suspend donations — including his pledge of the bulk of an estate worth several million dollars. He said he was among a network of wealthy NRA donors who would cumulatively withhold more than $134 million (£106 million) in pledges, much of it earmarked years in advance through estate planning, and would soon give the gun group’s board a list of demands for reform. That figure could not be verified, however, and Mr Dell’Aquila declined to provide a list of the other donors, who he said were not ready to go public. But a second prominent donor, who spoke on the condition of anonymity because he is a senior firearms industry executive, said he was also suspending a plan to give more than $2 million (£1.6 million) from his estate, as well as halting other donations, and was backing Mr Dell’Aquila’s effort. “The donors are rebelling,” the executive said, adding that he believed that the leadership turmoil was “helping to destroy, temporarily, the strength of the NRA as one of the strongest lobbying groups”. Story continues The extent of any rebellion is difficult to discern, and the NRA insisted it still had the firm backing of its donor base. Mr LaPierre has also retained the support of the NRA’s 76-member board, with fewer than a handful of public defections, and it would take a three-fourths vote by the board and one of its committees to oust him. But there have been signs of wavering grassroots support, including a recent announcement by Greg Kinman, a gun enthusiast with more than 4 million followers on YouTube, that he was cutting ties with the NRA. The turmoil of recent months has already stoked fear among some Republicans that the NRA’s political potency could be blunted heading into the 2020 elections. In a tweet early on Tuesday morning, President Donald Trump assailed the investigation by the New York attorney general, Letitia James, saying the NRA was “a victim of harassment by the AG”. Carolyn Meadows, the NRA’s president, said in a statement that “we are disappointed whenever donors choose to suspend their support of the NRA, but we hope to win them back.” She added: “People may resist change, but they embrace progress. We’re experiencing that right now at the NRA. There’s an energy within the NRA. that is hard to describe — and we continue to earn the support of millions of loyal members.” The support of donors and the enthusiasm among NRA members will be a crucial test for Mr LaPierre, who has led the organisation for more than two decades. Last month, Mr LaPierre ousted his second-in-command , Christopher W Cox, who led the gun group’s lobbying arm; in April, the NRA’s president, Oliver North, abruptly stepped down . Both men have been implicated by the NRA in a plot to force Mr LaPierre out, though Mr Cox has denied the allegations. Mr North has said the NRA needs to review its financial practices; NRA officials have said the split with Mr North was largely a dispute over money. Both Mr Dell’Aquila and the second donor want Mr Cox to return to the NRA and become its chief executive. “He brings continuity and stability,” Mr Dell’Aquila said, adding that Mr Cox had emerged from the recent wave of scandals with cleaner hands than Mr LaPierre. “We can get consensus with Chris replacing Wayne.” Mr Dell’Aquila said he had not spoken to Mr Cox about the matter and had not seen him since a fundraiser last year. The NRA is moving on from Mr Cox and is expected to announce on Tuesday that Jason Ouimet, a deputy at its lobbying arm, will assume Mr Cox’s former post, according to a person with knowledge of the appointment. The NRA has been burdened by high structural costs and escalating legal bills as it copes with the New York investigation and a bitter legal fight with its former advertising firm, Ackerman McQueen. The NRA’s member dues fell in 2017 to their lowest level in a half-decade, as concerns about gun control ebbed after Trump’s election , but they rebounded last year, increasing by a third, to $170 million (£135 million), while contributions grew by 24 percent to $165 million (£130 million). Even so, the NRA’s net assets fell sharply last year, and the organisation was forced to freeze its pension fund. It also took more than $30 million (£23.8 million) out of its charitable foundation in 2017; it recently increased a line of credit, backed by the deed to its headquarters, to $28 million (£22 million); and it borrowed against life insurance policies taken out on top executives. In a series of interviews and emails, Mr Dell’Aquila cited numerous concerns. He was troubled that a former NRA president, David Keene, had been caught up in an investigation over his ties to Maria Butina, the Russian who pleaded guilty to conspiring to act as a foreign agent . He was disturbed after The New York Times reported this year that Tyler Schropp, a senior NRA executive, had an interest in an outside company that had received $18 million (£14 million) from the NRA. He was also dismayed by a recent New Yorker story tying the NRA’s former longtime chief financial officer to allegations of embezzlement at a previous job. “I don’t know if these stories are true or not true,” he said. “My No. 1 concern, frankly only concern, is that our Second Amendment rights are preserved and the optics of negativity that are directly harming the NRA institution ceases.” Mr Dell’Aquila said he had approached high-ranking NRA officials to express his dissatisfaction as recently as April, when the NRA held its annual convention in Indianapolis, but was not satisfied by their responses. And he said the board had recently been removing critics of LaPierre from key oversight committees. “I decided the best way to be effective is to start a grassroots effort to demand from the NRA leadership accountability as well as transparency,” he said. His demands include the resignation of Mr LaPierre and his senior leadership in time to put in a new team for the 2020 elections. In addition to Mr Cox’s return, he wants Allen West, an NRA board member and former Tea Party congressman opposed to Mr LaPierre, installed as the group’s president. He would also shrink the board to 30 members from 76; stop paying consulting fees to board members; dismiss the NRA’s accounting firm, RSM; remove past presidents from the board; and cut costs by holding meetings in central locations. He lamented that an upcoming board meeting was to be held in Alaska: “What are the optics of that?” he said. “It’s negative. It’s self-inflicted.” He adding that the NRA could find board members who “would do this for free, and it keeps us clean in the liberal papers ”. Mr Dell’Aquila said he had come to his decision reluctantly and had always been treated graciously by Mr LaPierre and his wife, Susan. “I’m not pro-Mr LaPierre, and I’m not anti-Mr LaPierre, I’m just simply being objective and trying to save a historic institution from itself,” he said. “Right or wrong, the buck stops with Mr LaPierre, because this occurred underneath his leadership, and he’s ultimately accountable.” New York Times
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Should You Buy Unique Fabricating, Inc. (NYSEMKT:UFAB) For Its 6.6% Dividend?
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Dividend paying stocks like Unique Fabricating, Inc. (NYSEMKT:UFAB) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.
With a four-year payment history and a 6.6% yield, many investors probably find Unique Fabricating intriguing. It sure looks interesting on these metrics - but there's always more to the story . Some simple analysis can reduce the risk of holding Unique Fabricating for its dividend, and we'll focus on the most important aspects below.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Unique Fabricating paid out 245% of its profit as dividends. A payout ratio above 100% is definitely an item of concern, unless there are some other circumstances that would justify it.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Unique Fabricating paid out 99% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. As Unique Fabricating's dividend was not well covered by either earnings or cash flow, we would be concerned that this dividend could be at risk over the long term.
As Unique Fabricating has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick check of its financial situation can be done with two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. Unique Fabricating has net debt of 3.78 times its EBITDA, which is getting towards the limit of most investors' comfort zones. Judicious use of debt can enhance shareholder returns, but also adds to the risk if something goes awry.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Interest cover of 1.83 times its interest expense is starting to become a concern for Unique Fabricating, and be aware that lenders may place additional restrictions on the company as well.
Consider gettingour latest analysis on Unique Fabricating's financial position here.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. Looking at the data, we can see that Unique Fabricating has been paying a dividend for the past four years. During the past four-year period, the first annual payment was US$0.60 in 2015, compared to US$0.20 last year. The dividend has fallen 67% over that period.
We struggle to make a case for buying Unique Fabricating for its dividend, given that payments have shrunk over the past four years.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. While there may be fluctuations in the past , Unique Fabricating's earnings per share have basically not grown from where they were five years ago. Over the long term, steady earnings per share is a risk as the value of the dividends can be reduced by inflation. Still, the company has struggled to grow its EPS, and currently pays out 245% of its earnings. As they say in finance, 'past performance is not indicative of future performance', but we are not confident a company with limited earnings growth and a high payout ratio will be a star dividend-payer over the next decade.
To summarise, shareholders should always check that Unique Fabricating's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. We're a bit uncomfortable with Unique Fabricating paying out a high percentage of both its cashflow and earnings. Unfortunately, earnings growth has also been mediocre, and the company has cut its dividend at least once in the past. Using these criteria, Unique Fabricating looks quite suboptimal from a dividend investment perspective.
See if management have their own wealth at stake, by checking insider shareholdings inUnique Fabricating stock.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Who Has Been Buying PRGX Global, Inc. (NASDAQ:PRGX) Shares?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell PRGX Global, Inc. ( NASDAQ:PRGX ), you may well want to know whether insiders have been buying or selling. Do Insider Transactions Matter? It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market. We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for PRGX Global PRGX Global Insider Transactions Over The Last Year In the last twelve months, the biggest single purchase by an insider was when President Ronald Stewart bought US$77k worth of shares at a price of US$7.70 per share. That means that even when the share price was higher than US$6.91 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. In the last twelve months insiders paid US$187k for 26000 shares purchased. While PRGX Global insiders bought shares last year, they didn't sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! NasdaqGS:PRGX Recent Insider Trading, July 3rd 2019 There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them). PRGX Global Insiders Bought Stock Recently Over the last quarter, PRGX Global insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$187k worth of shares. This is a positive in our book as it implies some confidence. Story continues Insider Ownership Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that PRGX Global insiders own about US$8.7m worth of shares (which is 5.5% of the company). We do generally prefer see higher levels of insider ownership. What Might The Insider Transactions At PRGX Global Tell Us? It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on PRGX Global stock. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future . But note: PRGX Global may not be the best stock to buy . So take a peek at this free list of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at [email protected] . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. View comments
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How the Queen starts her day is so far removed from everyone
Most of us wake up and rummage through our wardrobes in the morning, trying to find something to wear for that day. But when youre the Queen, things are a little different. Paul Burrell, who was Her Majestys footman before he became Princess Dianas butler, reveals to Yahoo UK s The Royal Box that the Queen doesnt have any clothes - or costumes as she calls them - in her rooms. He says: The Queen has to have her outfits brought down to her, all her clothes are kept on the top floor. Her dresser will bring down two outfits in the morning, which are sketched with pieces of material clipped to them so that the Queen can remember whether its silk or cotton or wool. The one the Queen picks is the one which is brought downstairs from up above so she doesnt actually see her wardrobe with clothes in it. READ MORE: How much the Queen has won at Ascot over the years The Queen during a visit to Greenfaulds High School in the west of Cumbernauld, Scotland. [Photo: PA] The 93-year-old monarch is known for her bold coloured outfits and matching hats, usually designed by her dressmaker Angela Kelly or royal couturier Stewart Parvin. Its believed the Queen chooses bright outfits in order to stand out when shes in a crowd. READ MORE: America thinks the Royal Family should have done more to protect Meghan' The Queen, pictured at the Chelsea Flower Show, regularly rewears her outfits. [Photo: PA] And the monarch isnt one to wear an outfit just once. Like her daughter, Princess Anne, the Queen is frugal when it comes to fashion. She recently rewore the lime green Stewart Parvin outfit she donned at Harry and Meghans wedding, to the Chelsea Flower Show. Author Brian Hoey wrote in his 2011 book Not in Front of the Corgis: The Queens clothes are a constant source of comment in the media and she will wear a favourite outfit for years. When she finally tires of it, she will hand it to one of her dressers, who can either wear it or sell it.
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Crisis-hit Cuba eyeing cryptocurrency usage to boost its economy
The government of Cuba is considering the use of cryptocurrency to beat its economic crisis aggravated by U.S. sanctions, Reuters reported Wednesday. Cuban Economy Minister Alejandro Gil Fernandez reportedly said: "We are studying the potential use of cryptocurrency ... in our national and international commercial transactions, and we are working on that together with academics." Cuba is facing crises due to lower exports, a sharp decline in help from its ally Venezuela, as well as U.S. trade sanctions, per the report. The Caribbean country, therefore, has announced a few measures, including raising income for around a quarter of the population and deepening market reforms. With these initiatives, Cuba aims to increase national production as well as demand to boost its economic growth. U.S. sanctions-hit Venezuela also launched a national cryptocurrency called petro last year. The country's President Nicolas Maduro recently said that Venezuela plans to sell oil in petros to "keep liberating" the country from "the currency of the Washington elite."
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Three Things You Should Check Before Buying Panhandle Oil and Gas Inc. (NYSE:PHX) For Its Dividend
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Dividend paying stocks like Panhandle Oil and Gas Inc. (NYSE:PHX) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
A 1.3% yield is nothing to get excited about, but investors probably think the long payment history suggests Panhandle Oil and Gas has some staying power. The company also bought back stock equivalent to around 2.3% of market capitalisation this year. Some simple research can reduce the risk of buying Panhandle Oil and Gas for its dividend - read on to learn more.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Panhandle Oil and Gas paid out 26% of its profit as dividends, over the trailing twelve month period. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Unfortunately, while Panhandle Oil and Gas pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective.
As Panhandle Oil and Gas has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick check of its financial situation can be done with two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA measures total debt load relative to company earnings (lower = less debt), while net interest cover measures the ability to pay interest on the debt (higher = greater ability to pay interest costs). With net debt of 1.85 times its EBITDA, Panhandle Oil and Gas has an acceptable level of debt.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. With EBIT of 3.79 times its interest expense, Panhandle Oil and Gas's interest cover is starting to look a bit thin.
We update our data on Panhandle Oil and Gas every 24 hours, so you can always getour latest analysis of its financial health, here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Panhandle Oil and Gas has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. During the past ten-year period, the first annual payment was US$0.14 in 2009, compared to US$0.16 last year. This works out to be a compound annual growth rate (CAGR) of approximately 1.3% a year over that time.
While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is unappealing.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Over the past five years, it looks as though Panhandle Oil and Gas's EPS have declined at around 5.6% a year. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation.
To summarise, shareholders should always check that Panhandle Oil and Gas's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. Panhandle Oil and Gas has a low payout ratio, which we like, although it paid out virtually all of its generated cash. It's not great to see earnings per share shrinking. The dividends have been relatively consistent, but we wonder for how much longer this will be true. In sum, we find it hard to get excited about Panhandle Oil and Gas from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria.
Are management backing themselves to deliver performance? Check their shareholdings in Panhandle Oil and Gas inour latest insider ownership analysis.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Ed Sheeran reveals he's speaking to Taylor Swift directly following her feud with Scooter Braun
Ed Sheeran and Taylor Swift (Getty Images) Ed Sheeran has revealed he has been offering Taylor Swift his support through her feud with Scooter Braun. Swift recently claimed that Braun had been bullying her after telling fans that he had bought her back catalogue, which includes every single, photo and all other assets of her working ranging from her 2006 debut to her 2017 album Reputation . Fans have since called on Sheeran to support his fellow pop star and close friend, but the Castle On The Hill singer has refrained from supporting her on social media. Sheeran has revealed that he's talking to Swift directly about the feud (Getty Images) Read more: Justin Bieber jumps into 'bullying' row between Taylor Swift and Scooter Braun However, Sheeran has since revealed that hes been offering Swift support by speaking to her directly. Replying to one of his followers on Instagram, Sheeran cleared up the situation by revealing that he is constantly in contact with Swift. He wrote: I have been speaking directly to her, like I always do. The singer responded to an Instagram follower to clear up the situation (Instagram/Ed Sheeran) Swift recently spoke out about Braun who is also Justin Bieber and Ariana Grandes manager buying her former label Big Machine as part of a $300million (£240million) deal. The singer claims she was never given the opportunity to buy the label, which owns her back catalogue. Shes insisted that was a result of her signing a deal at the age of just 15, and that shes been bullied by Braun throughout her music career. Swift claims she has been bullied by Braun throughout her music career (AP Images) Read more: Taylor Swift buries Katy Perry feud with a hug in 'You Need to Calm Down' music video In a lengthy post of her Tumblr page, Swift wrote: Any time Scott Borchetta has heard the words Scooter Braun escape my lips, it was when I was either crying or trying not to. He knew what he was doing; they both did. Controlling a woman who didnt want to be associated with them. In perpetuity. That means forever.
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Those Who Purchased Patriot Transportation Holding (NASDAQ:PATI) Shares A Year Ago Have A 22% Loss To Show For It
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It's easy to match the overall market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. That downside risk was realized byPatriot Transportation Holding, Inc.(NASDAQ:PATI) shareholders over the last year, as the share price declined 22%. That falls noticeably short of the market return of around 8.7%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 12% in three years.
View our latest analysis for Patriot Transportation Holding
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Unhappily, Patriot Transportation Holding had to report a 29% decline in EPS over the last year. The share price fall of 22% isn't as bad as the reduction in earnings per share. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at ourfreereport on Patriot Transportation Holding's earnings, revenue and cash flow.
The last twelve months weren't great for Patriot Transportation Holding shares, which cost holders 22%, while the market wasupabout 8.7%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The three-year loss of 4.3% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Hitting the road July 4th? Here are 4 reasons you'll pay more when you fill up.
Your summer road trip won't be quite as cheap as you expected.
As Independence Day approaches,gas pricesare rising. It's an unexpected reversal for the fuel, whose cost was expected to steadily decline afterpeaking at $2.89 in early May.
The average national price of gasoline stood at $2.73 a gallon Tuesday, up 6 cents from a week earlier,according to AAA.
Prices jumped at least a nickel in nearly 25 states in the final week of June. The nation's high on Tuesday was California at $3.77, while the low was Mississippi at $2.34.
To be sure, the national average price is still far below its historic high of $4.11 on July 17, 2008.
The national average "may touch $2.80" in the coming days, predicted Patrick DeHaan, head of petroleum analysis at fuel-savings app GasBuddy.
Best time to fill up:Why you should fill up on gas on Monday mornings (and never on Friday afternoons)
Summer gas prices:Don't fill up in these states on your road trip
Several factors appear to be driving prices up at a time when they're usually steady or declining:
"Things were looking good, and then Iran happened and the decline slammed on the brakes and oil prices started to go the opposite direction," DeHaan said.
Iran's attacks on two oil tankers and the downing of a U.S. drone gave rise to concerns that the flow of oil in the region could be restricted, particularly in the Strait of Hormuz, which handles about 20% of the world's oil supply.
Iran and the U.S. have been sparring over a nuclear deal that President Donald Trump has assailed as insufficient.
"The concern is maybe they go off the deep end and start more provocations with oil tankers or even with countries themselves," DeHaan said.
The Organization of the Petroleum Exporting Countries, a cartel that coordinates actions to influence the market for oil, on Monday extended oil production cuts that have been aimed at propping up prices.
With fewer oil supplies reaching the market, prices are naturally facing upward pressure.
Chinese and American officials signaled in recent days that they have made progress in their efforts to resolve a trade war that dates back to the start of the Trump administration.
That could provide a boost to the economies of both countries, which would increase demand for oil and thus jolt prices, according to JBC Energy analysts.
Quite simply, Americans are stoked about driving for the Fourth of July.
AAA projected that the number of Americans traveling for the holiday would reach an all-time high of nearly 49 million.
That translates into increased demand for gasoline and thus higher prices.
Last month, U.S. oil stocks hit a four-year low for the month of June, according to the Energy Information Administration.
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
This article originally appeared on USA TODAY:Hitting the road July 4th? Here are 4 reasons you'll pay more when you fill up.
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Khloe Kardashian and Scott Disick recall their craziest moments together: Watch! (Exclusive)
"I don't even remember that!"
Khloe Kardashian and Scott Disick have had countless memorable moments together for more than ten years now -- so many, in fact, that there are some that the fun-loving duo has actually forgotten about.
Take the Instagram post of a texting conversation between them thatScott posted on April 24, 2015, for example, in which Khloe asked her sister Kourtney's then-boyfriend if a photo she had taken was showing too much cleavage to post on her Instagram page.
"Gotta love when your sister checks in for t-t approval for her Instagram," Scott captioned the screenshot.
Despite it being a memorably hilarious interaction between them, Khloe and Scott actually didn't recall the post when AOL's Gibson Johns sat down with them during an interview promoting their back-to-back E! shows,"Revenge Body"and"Flip It Like Disick"-- and they had the funniest reaction to being reminded of it then.
During the interview, which you can watch at the top of the page, we showed the longtime friends photos, Instagram posts and moments from "Keeping Up With the Kardashians" from throughout their friendship and asked them to remember what was going on in the snaps and to share any memories they had attached to those photos.
Between the photo of them holding hands, the unforgettable Todd Kraines moment from "KUWTK," one of Khloe's so-called Khlomoney parties and an adorable selfie with Scott's daughter, Penelope, Khloe Kardashian and Scott Disick had more than a few notable things to say when we brought back their craziest times together.
Watch at the top of the page.
Season 3 of"Revenge Body"premieres on Sunday, July 7, at 9 p.m. EST, and"Flip It Like Disick"premieres on Sunday, August 4, at 10 p.m. EST -- both on E!
See photos of Khloe and Scott together through the years:
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Disruptor Alert: 3 Companies Changing the E-Commerce Landscape
The global e-commerce market is poised to grow to $24 trillion by 2025, and while consumers have been able to buy goods and services online for years, e-commerce sales still account for just 12% of all U.S. retail sales.
It's a sign of how we're in the early stages of e-commerce growth and development that companies are still continually coming up with new ways to direct how this market evolves. That's why it's essential for investors to keep an eye on howAmazon.com(NASDAQ: AMZN),Shopify(NYSE: SHOP), andPayPal Holdings(NASDAQ: PYPL)are shaping the e-commerce landscape to outpace their competitors.
Image source: Getty Images.
There's no denying that Amazon is one of the biggest names in the U.S. e-commerce space. Nearly38% of all online salesin the U.S. happen on its platform, and the company now boasts more than100 million Prime membersin the country.
So if Amazon dominates e-commerce, how exactly is this company a disruptor? Because it continues to make even its own core offerings obsolete.
For example, when Amazon introduced free two-day shipping for its Prime members years ago, it forced some of the biggest names in the retail industry to follow suit. And now thatWalmart,Target, and others have added their own fast and free shipping offerings, Amazon upped the ante when it recently transitioned to free one-day shipping for members. While its competitors have some one-day shipping options, theycan't match the number of itemsAmazon makes available for one-day shipping.
By pushing the envelope time and again with its Prime shipping speed, Amazon is perpetually disrupting itselfandits e-commerce competitors. When you consider that the company is also theleading public cloud computing providerand developing agrowing advertising business, Amazon has proved it's not satisfied with disruptingjustthe e-commerce market.
While Amazon has the name recognition in the e-commerce space, smaller players like Shopify are also filling in niche e-commerce markets. Shopify's cloud-based platform allows businesses to set up their online shops easily, and the company is growing by leaps and bounds.
Shopify already has more than 800,000 merchants using its services, and in themost recent quarter, its sales jumped 50% year over year to $320.5 million.
Shopify is disrupting the e-commerce market by making it easy for businesses to get started selling their products and services online. Not only has the company been successful with this strategy, but it's expanding its services to compete with bigger e-commerce players. For example, the Shopify Plus segment, the company's enterprise service offering that helps large businesses to sell their products online, now brings in 26% of the company's recurring revenue.
Another disruptor action presented itself when Shopify recently said it was starting a new fulfillment service that will help merchants bring timely deliveries to their customers and lower their shipping costs. This new service -- adirect challenge to Amazon(which has one of the most robust fulfillment networks in the U.S.) -- further illustrates Shopify's focus on changing the e-commerce game.
Who said that all e-commerce disruptors have to be sales platforms? PayPal is changing the way that businesses and consumers buy and sell goods online by making it easier to make online transactions.
So how is PayPal, a company that has been in the online payments game for years now, pushing the envelope these days? By allowing its users to move closer to a cashless society with its apps. For example, PayPal has begun expanding the use of its Venmo app -- which allows for easy financial transactions between individuals -- to point-of-sale merchant terminals andmobile payment transactions.
PayPal's online payment services and Venmo app are making it easier than ever for users toleave their cash behindand use mobile technology for nearly any kind of purchase.
Digital payments are still in their infancy, but PayPal CEO Dan Schulman believes that they represent a $100 trillion total addressable market for his company. And with its early moves in the space, PayPal is sure to tap into e-commerce's digital-payment growth in the coming years.
The e-commerce industry is no different than any other, in that it will likely have its fair share of ups and downs. For instance, the next economic downturn could put a damper on these companies' short-term gains. But the thing to remember is that Amazon, Shopify, and PayPal have already made significant inroads into the e-commerce market and are continually changing the industry. So investors holding on to these stocks for the long haul can ride out any short-term rough patches that might come along.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Chris Neigerhas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, PayPal Holdings, and Shopify. The Motley Fool has adisclosure policy.
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How Boyuan Construction Group, Inc. (TSE:BOY) Could Add Value To Your Portfolio
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Attractive stocks have exceptional fundamentals. In the case of Boyuan Construction Group, Inc. (TSE:BOY), there's is a financially-robust company with a strong track record of performance, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Boyuan Construction Group here.
Over the past few years, BOY has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did BOY outperformed its past performance, its growth also surpassed the Construction industry expansion, which generated a 22% earnings growth. This is an notable feat for the company. BOY's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that BOY has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Debt funding requires timely payments on interest to lenders. BOY’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.
BOY's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of BOY's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the construction industry, BOY is also trading below its peers, relative to earnings generated. This supports the theory that BOY is potentially underpriced.
For Boyuan Construction Group, I've compiled three fundamental factors you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for BOY’s future growth? Take a look at ourfree research report of analyst consensusfor BOY’s outlook.
2. Dividend Income vs Capital Gains: Does BOY return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Ourhistorical dividend yield visualizationquickly tells you what your can expect from BOY as an investment.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of BOY? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Weed leader Canopy Growth ousts co-CEO Bruce Linton
By Debroop Roy and Nivedita Balu
(Reuters) - Canada's Canopy Growth Corp <WEED.TO> <CGC.N> fired founder and co-Chief Executive Officer Bruce Linton, a surprise move that comes just a week after the weed producer's largest shareholder expressed disappointment over its loss-making streak.
The world's largest pot company announced earlier in the day that Linton was stepping down, leaving Mark Zekulin in charge of the company.
"I think stepping down might not be the right phrase," Linton said in an interview with CNBC https://www.cnbc.com/2019/07/03/canopy-growth-co-ceo-to-step-down.html?__source=twitter%7Cmain. "I was terminated."
Linton also said he did not know why he was fired, adding, "At the end of the day I really think sometimes entrepreneurs are entrepreneurs because they're not super employable."
Last month, Canopy reported a net loss of about C$323 million for the fourth quarter, attributing it to increased investments in expanding the business.
A week later, Constellation Brands <STZ.N>, which owns a stake of nearly 56% in Canopy and has four of its six board seats, said it was not happy with the Canadian company's year-end results.
"We are working with Canopy almost on a daily basis to ensure that we are all focused on the right things," Constellation CEO Bill Newlands had said on a post-earnings call with analysts.
On Wednesday, the brewer said it fully supported the decision made by Canopy's board to appoint Zekulin as the company's sole CEO.
"It is pretty clear that it was at the urging of Constellation Brands. At this point they have enough power on (its) board to make these kinds of decisions," William O'Neil analyst Andrew Kessner said.
Linton's strategy of chasing growth at the expense of near-term profits seemed to have fallen out of favor with top Constellation executives, who are under pressure to provide a clearer timeline on a return on investment in Canopy, Kessner said.
Linton founded Canopy in 2013 in an abandoned Hershey's chocolate factory in Smiths Falls, Canada and has since been the face of the company. He took the company public in 2014 and has bolstered its operations with acquisitions worth more than C$5 billion.
Under Linton, Canopy also raised over C$6 billion since its founding in 2013, with the Corona beer maker agreeing to invest more than $4 billion in the company - the biggest such investment in the cannabis industry.
(Graphic: Canopy shares outperform peers - https://tmsnrt.rs/2YsEya5)
Linton did not immediately respond to a Reuters request for comment. Reuters' calls and emails to Canopy seeking details on Linton's departure were not answered.
While it was not clear what Linton's severance package would be, company filings showed that his total compensation for 2018 was $2.46 million, a near six-fold rise from a year earlier due to $2 million of option-based awards.
Analysts at brokerage Stifel said they would not be surprised to see Linton take on another role within the cannabis industry, likely as an entrepreneur as his strength was in recognizing early stage value.
Rade Kovacevic, who currently leads the company's Canadian operations and recreational strategy, will take over the role of president from Zekulin.
The company also named John Bell, Canopy's lead director of five years, as chairman, a decision that it said would be reviewed at the board's annual meeting in September.
Earlier this year, Canopy also replaced long-term Chief Financial Officer Tim Saunders with a former Constellation executive.
Shares of the company, which fells as much as 5.3% earlier in the session, reversed course to trade marginally up.
(Reporting by Debroop Roy, Nivedita Balu and Shanti S Nair in Bengaluru; Editing by Anil D'Silva and Sweta Singh)
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Mother of black and white twins speaks of public reaction
A mother has spoken about the disbelief she faces over her twin children, who were born with different skin colours. Judith Nwokocha, 38, gave birth to her twins in 2016: one black baby boy, Kamsi, and a baby girl, Kachi, who has pale white skin due to suffering from albinism. Nwokocha, a photographer from Calgary, Canada, who is originally from Nigeria, thought she had been given the wrong baby in the hospital. “I was shocked- I thought they had handed me somebody else’s baby, I didn’t believe she was mine,” she says. Twins Kamsi and Kachi, pictured now (right) and with their mother Judith Nwokocha shortly after they were born. [Photo: Caters] “It never crossed my mind I was going to have an albino baby, we don’t have any in my family, nor my husband’s family.” READ MORE: Heartwarming moment identical twins meet after a month apart However, she now sees a strong resemblance between her and her daughter, Kachi. “Other than the fact that she is different colour, she looks exactly like me.” Judith Nwokocha couldn't believe it when she first saw her daughter Kachi, left. [Photo: Caters] Now Nwokocha, who struggled for eight years to get pregnant until she finally had her twins through IVF, says strangers are often surprised when she is out with her twins. “Most people don’t believe they’re twins- it’s also the hair texture that confuses them,” she says. “Someone has asked me: ‘Where are her parents?’. I can see the look of shock in their faces when I tell them I’m her mum.” However, she says the response to her daughter in the UK is otherwise positive. Judith Nwokocha pictured in 2016 with her twins Kamsi, left, and Kachi, right. [Photo: Caters] “I haven’t had any negative reaction from anyone, they always tell me she is beautiful. As for raising twins with very different skin tones, Nwokocha explains she needs to take particular care of Kachi’s skin and eyes. “She can’t do to the sun too long and her skin getting burned,” she says. “[Kachi’s] eyesight is quite sensitive and she needs to see a specialist every 6 months.” However, Kachi is otherwise “perfectly healthy”. Twins Kamsi (right) and Kachi. [Photo: Caters] How is it possible to have black and white twins? In this case, Kachi has a different skin tone to her twin because she has inherited an albinism condition, whereas her brother Kamsi has not. Kachi’s skin tone is the result of Oculocutaneous Albinism (OCA) type 2, where people do not produce sufficient melanin (pigment) and this affects their eyes, skin and hair. READ MORE: Father admits he still can't tell his identical twin daughters apart The inherited condition – a type of albinism – occurs most commonly in sub-Saharan Africans, African-Americans and Nation Americans. It affects one in every four children, when parents are both carriers of the Albinism gene. However, black and white twins are not always the result of inherited albinism. In 2016, the UK’s first ‘black and white’ twins from the same egg were born in the UK, to mixed race couple Libby Appleby and her partner Tafadzwa Madzimbamuto. ‘Doctors told us the chances of conceiving mixed race twins are one in a million,” said Appleby at the time. View comments
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Could The Par Pacific Holdings, Inc. (NYSE:PARR) Ownership Structure Tell Us Something Useful?
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A look at the shareholders of Par Pacific Holdings, Inc. (NYSE:PARR) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of US$1.0b, Par Pacific Holdings is a decent size, so it is probably on the radar of institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about PARR.
See our latest analysis for Par Pacific Holdings
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Par Pacific Holdings already has institutions on the share registry. Indeed, they own 60% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Par Pacific Holdings's historic earnings and revenue, below, but keep in mind there's always more to the story.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Par Pacific Holdings is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own some shares in Par Pacific Holdings, Inc.. The insiders have a meaningful stake worth US$16m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checkingif those insiders have been selling.
The general public, with a 13% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
With a stake of 26%, private equity firms could influence the PARR board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Even with the Threat of Volatility, AT&T Stock Still Is a Keeper
Today I’d like to discuss the short- and long-term outlook for the stock price ofAT&T(NYSE:T), the multinational conglomerate which has an impressive portfolio and diversified revenue stream. Mostly I’d like to consider whether investors should expect AT&T stock to continue its recent trend higher?
Although I believe AT&T stock belongs in a long-term income-generating portfolio, I expect market volatility to continue in July, especially given the fact that many companies will be releasing quarterly earnings.
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Therefore, we can expect price choppiness in AT&T stock, too. With the shares up over 5% since early June, any profit-taking in the coming weeks would be a sign to investors to consider buying into the shares.
With that said, let’s take a deeper look into what makesT stocka good long-term investment
AT&T is expected to report earnings on July 24. In this upcoming quarterly report, Wall Street is likely to pay attention to how the balance sheet has developed over the past three months.
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With a market capitalization of $230 billion, the Dallas-based group breaks down revenue into six main segments.
• Mobility (includes wireless subscribers)
• Entertainment Group (includes DirecTV and U-Verse customers)
• Business Wireless (provides services to companies and the government)
• Latin America (includes Latin American and Mexican operations)
• Warner Media (includes HBO, Turner and Warner Bros.)
• Xandr (handles all advertising business)
AT&T’s domestic wireless business is neck and neck withVerizon Communications(NYSE:VZ) for market share. Our readers will be familiar with the fact that Mobility is by far the most important business for AT&T.
Mobility business is both stable and big, leading to $17.6 billion revenue in Q1 2019 results. Analysts expect the group to continue to generate robust revenue from AT&T’s Mobility business while expanding well into Entertainment and Warner Media.
In June 2018, a federal court approved the merger of AT&T’s$85 billion acquisitionofTime Warner— a deal that has turned T stock a media giant and “content king.” HBO is one of Time Warner’s assets that AT&T shareholders now own, too. This entertainment network has an enviable library of many shows that generate consistent revenues.
This merger has been weighing on AT&T since early 2018; however, the rest of 2019 should see the question marks slowly disappear and the stock should begin to gain back its footing. In other words, investors have been shy to invest in AT&T shares for some time now, but the company’s long-term plans are likely to reward patient shareholders well.
As internet-based communication becomes increasingly integrated into our daily lives, I find AT&T shares well-positioned to benefit from various commercial opportunities that would eventually benefit the share price.
Over the past few years, T stock has lagged behind the broader market. Yet, the company has a strong brand and wireless infrastructure — two factors that are likely to make it a dominant player in the5G sphere.
As we enter the latter part of 2019, we can easily say this decade has witnessed the growth and mass adoption of smart mobile devices. 5G stands for the fifth generation of wireless networks, heralding a new standard for mobile telecommunications that will be significantly faster than 4G, which had started coming out almost a decade ago. It is expected that 5G will be faster up to100 timesthan the speed of 4G networks.
Therefore. the new 5G technology will boostproductivity and growthsignificantly. 5G will also be at the center of the infrastructure for building smart cities. Coupled with a trailing price-to-earnings ratio of about 12x, T stock deserves further due diligence in the tech world that isgetting ready for 5G dominance. Since December 2018, AT&T has been launching its own 5G network in more than a dozen U.S. cities.
The group is the second major telecommunications provider to do so after Verizon. The first wave of 5G cities includes Atlanta, Charlotte, Raleigh, Dallas, Houston, Indianapolis, Jacksonville, Louisville, Oklahoma City, New Orleans, San Antonio, and Waco, Texas. The 5G wireless network boom is just getting started. This is why now may an appropriate time to consider T stock.
Most long-term investors do not want to be constantly thinking about the fundamental strength of the stocks in their portfolios. AT&T’s balance sheet has been improving in recent quarters — another reason why I am interested in T shares long-term.
The improving fundamentals are possibly why AT&T stock price has gone up over the past few weeks even though the company posted asubdued quarterly report in April.
The company’s key Mobility wireless segment generated revenue of $17.57 million, up 1.2% year-over-year. And the company achieved 80,000 postpaid phone net adds vs. 49,000 postpaid net adds in the year-ago quarter. Wall Street welcomed the news that the mobility segment has increased revenue.
On a final note, over the past few quarters, AT&T’sdebt loadhas been on Wall Street’s radar. The company finished 2018 with a debt load of $171 billion. The group has recently reaffirmed the commitment to reduce that debt to $150 billion by the end 2019.
Acquiring Time Warner has bloated this debt load. However, the communications giant is now working to cut costs and the debt at the same time. For example, it has recently sold its minority stake inHulu, a premium streaming service, to its other ownersWalt Disney(NYSE:DIS) andComcast(NASDAQ:CMCSA), for almost $1.5 billion.
AT&T management is well aware of the importance of decreasing the level of debt sooner than later so that the company can regain investor confidence. It would also be important to note that the debt maturity schedule is quite spread out over the next few decades. Therefore, I am still comfortable with this amount on the books.
In a low-interest rate environment, stock investors pay special attention to shares withrobust dividend yields. Dividend stocks can be one of the best ways to generate a regular passive income for long-term shareholders.
In general, big blue-chip names tend to be consistently generous dividend payers. And telecommunications companies have traditionally been regarded as relatively safe dividend investments. Experienced dividend investors also pay close attention to a company’s free cash flow as dividends are ultimately paid out of cash.
Free cash flow is what remains in the bank after AT&T has paid interest on its debt, paid any taxes owed, and made all of the capital expenditures necessary to run and invest in the giant business. AT&T is a large business that generates a lot of cash.
The group has recently confirmed that it will have about $26 billion in free cash flow this year. This amount is money left over from operations; in other words, it is not needed to run the business.
In addition to the company’s strong earnings power through telecom and media-related operations, T stock also offers a strong dividend yield at over 6.1%, which is a big attraction for many long-term investors seeking strong stocks to buy for 2019 and beyond.
It is expected that AT&T will have $12 billion in free cash flow left after paying $14 billion in annual dividends to shareholders. It is likely that the company may use this amount to reduce its debts. Lower debt levels may, in turn, enable the company to support a higher valuation and price level as well as increase its dividends.
Finally, over the past 35 years, AT&T has a history of increasing dividends annually. This is yet another important reason why I believe T stock belongs in a capital-growth portfolio. As long as investors still believe in T stock’s prospects, the hefty dividend yield keeps them from panicking and selling the shares. AT&T stock is expected to go ex-dividend on July 9.
As we start the second half of the year and the earnings season, many stocks may continue to be volatile in July, and I would not advocate trying to identify stocks that could be immune to a U.S.-China trade war.
If you are an investor who also follows technical charts, then you may want to know that over the past few weeks, the short-term technical chart of T stock has been improving.
The stock is likely to rise toward $34.30, the intraday high seen on Oct. 5, 2018. The stock is likely to head into resistance between $34 and $34.5. The current options activity for July 19 expiry is also showing bets that the stock would rise toward $34.5 soon.
Furthermore, on the longer-term T charts, the relative strength index (RSI), a momentum oscillator that can also be used to identify the general trend for a given stock, has been increasing, suggesting that a more longer-term bullish leg in AT&T shares is likely to be beginning.
If you aren’t already long T stock, you may want to remain on the sidelines until the earnings report on July 24 to give yourself time to study the balance sheet as well as the outlook by the management.
If you are already own AT&T shares, you may also consider initiatingcovered callpositions in conjunction with being long T stock. For example, Aug. 16 expiry at-the-money (ATM) covered calls may enable you to hedge your long position in case of profit-taking following the earnings report. You would also be able to participate in a further up move in AT&T stock price.
In short, despite any potential short-term price weakness, T stock belongs to a diversified portfolio. Amid all the recent market volatility, I regard AT&T as one of the key telecom and media stocks to buy for value and stability.
As of this writing, Tezcan Gecgil holds T and VZ covered calls (July 5 expiry).
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The postEven with the Threat of Volatility, AT&T Stock Still Is a Keeperappeared first onInvestorPlace.
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Here's What Flowers Foods, Inc.'s (NYSE:FLO) P/E Is Telling Us
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This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll look at Flowers Foods, Inc.'s (NYSE:FLO) P/E ratio and reflect on what it tells us about the company's share price. Looking at earnings over the last twelve months,Flowers Foods has a P/E ratio of 28.87. That means that at current prices, buyers pay $28.87 for every $1 in trailing yearly profits.
Check out our latest analysis for Flowers Foods
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Flowers Foods:
P/E of 28.87 = $23.49 ÷ $0.81 (Based on the year to April 2019.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
When earnings fall, the 'E' decreases, over time. Therefore, even if you pay a low multiple of earnings now, that multiple will become higher in the future. A higher P/E should indicate the stock is expensive relative to others -- and that may encourage shareholders to sell.
It's great to see that Flowers Foods grew EPS by 21% in the last year. But earnings per share are down 1.2% per year over the last five years.
We can get an indication of market expectations by looking at the P/E ratio. As you can see below, Flowers Foods has a higher P/E than the average company (25.6) in the food industry.
Flowers Foods's P/E tells us that market participants think the company will perform better than its industry peers, going forward. Clearly the market expects growth, but it isn't guaranteed. So further research is always essential. I often monitordirector buying and selling.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. That means it doesn't take debt or cash into account. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.
Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio.
Net debt totals 20% of Flowers Foods's market cap. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt.
Flowers Foods trades on a P/E ratio of 28.9, which is above the US market average of 18.2. The company is not overly constrained by its modest debt levels, and its recent EPS growth very solid. Therefore, it's not particularly surprising that it has a above average P/E ratio.
Investors should be looking to buy stocks that the market is wrong about. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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If You Had Bought Bank of the James Financial Group (NASDAQ:BOTJ) Stock Five Years Ago, You Could Pocket A 64% Gain Today
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Stock pickers are generally looking for stocks that will outperform the broader market. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. To wit, the Bank of the James Financial Group share price has climbed 64% in five years, easily topping the market return of 42% (ignoring dividends).
See our latest analysis for Bank of the James Financial Group
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During five years of share price growth, Bank of the James Financial Group achieved compound earnings per share (EPS) growth of 6.9% per year. This EPS growth is slower than the share price growth of 10% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Thisfreeinteractive report on Bank of the James Financial Group'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Bank of the James Financial Group, it has a TSR of 79% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!
While the broader market gained around 8.7% in the last year, Bank of the James Financial Group shareholders lost 6.2% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 12% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid.
Bank of the James Financial Group is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Canopy Growth Corporation Co-CEO Bruce Linton to step down
Canadian cannabis company Canopy Growth Corporation (CGC,WEED.TO) unexpectedlyannouncedWednesday that Bruce Linton would be stepping down as co-chief executive officer and board member of the firm.
Mark Zekulin, currently president and co-chief executive officer, will remain on as CEO of Canopy, the world’s largest publicly traded cannabis company by market capitalization. Zekulin will work with the board of directors to identify a new leader for the company in a search that will include both internal and external candidates, Canopy said in the statement.
Rade Kovacevic, current head of Canadian operations and recreational strategy, will fill the role as president. Each of the executive changes is effective immediately.
"The Board decided today, and I agreed, my turn is over. Mark has been my partner since this Company began and has played an integral role in Canopy's success,” Linton said in a statement. “While change is never easy, I have full confidence in the team at Canopy – from Mark and Rade's leadership to the full suite of leadership – as we progress through this transition and into the future."
In an interview with CNBC Wednesday morning, Linton said he was “terminated”from the company.
Shares of Canopy fell 7% to $37.24 each as of 7:49 a.m. ET on the New York Stock Exchange.
Linton, a co-founder of Canopy, had been a leader at the company since its inception in 2013, when it was first known as Tweed Marijuana. Canopy became the first publicly traded cannabis company in North America in April 2014.
In 2018, Canopy received a $4 billion investment from Corona-owner Constellation Brands (STZ), giving the beverage-maker an about 40% stake in the company. Constellation Brands’ CEO Bill Newlands and CFO David Klein serve as members of Canopy’s board of directors.
“We fully support the decision made by Canopy Growth’s Board of Directors to appoint Mark Zekulin as the company’s sole CEO,” a spokesperson from Constellation Brands said in a statement to Yahoo Finance. “The future of Canopy Growth remains very bright and we look forward to the company’s continued success for many years to come.”
In a note to clients Wednesday, Cowen analyst Vivien Azer said Linton’s exit was unsurprising given recent dynamics between Constellation and Canopy. The beverage company recently installed former Constellation senior executive Mike Lee as Canopy’s acting CFO. And during a call with investors in late June, Constellation CEO Newlands said he was “not pleased” with Canopy’s year-end results.
For thefiscal year ending in March, Canopy posted net revenue of $226.3 million. Its adjusted EBITDA amounted to an annual loss of $257.0 million.
“The magnitude of losses for [Canopy] has expanded far more than we had expected, and while we commend Linton for his vision in establishing the world's leading cannabis company, we believe new leadership will be a welcome change,” Azer wrote in the note.
Canopy in June said its shareholders had approved a deal to acquire the right to purchase U.S. multi-state cannabis operator Acreage Holdings for $3.4 billion, with the transaction contingent on the U.S. legalizing cannabis production and sales at the national level. An Acreage Holdings spokesperson declined to comment on the executive changes announced Wednesday.
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Emily McCormick is a reporter for Yahoo Finance.Follow her on Twitter: @emily_mcck
Read more from Emily:
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Tributes roll in after Lee Iacocca's death: 'A Detroit car guy if there ever was one'
Automotive, business and civic leaders reacted with praise and mourning for automotive giantLee Iacocca, 94, who died Tuesdayat home in California.
Ford Executive Chairman Bill Ford said: “Lee Iacocca was truly bigger than life and he left an indelible mark on Ford, the auto industry and our country. Lee played a central role in the creation of the Mustang. On a personal note, I will always appreciate how encouraging he was to me at the beginning of my career. He was one of a kind and will be dearly missed.”
Fiat Chrysler Automobiles called Iacocca"one of the great leaders of our company and the auto industry as a whole."
"We are committed to ensuring that Chrysler, now FCA, is such a company, an example of commitment and respect, known for excellence as well as for its contribution to society. His legacy is the resiliency and unshakeable faith in the future that live on in the men and women of FCA who strive every day to live up to the high standards he set.”
Dennis Archer, mayor of Detroit from 1994 to 2001 and chairman emeritus of the Dickinson Wright law firm, said: "I watched what he was able to do with a lot of admiration and respect for his ability to change the dynamics of Chrysler Corporation, and his intuitive instinct to be successful."
Bud Liebler, a former vice president of public relations at Chrysler, said Iacocca was a strong leader: “I think of him as a Damon Runyonesque character. He had a lot of opinions, but he wouldn’t ask anybody to do anything he wouldn’t do. … He single-handedly carried the flag (when Chrysler sought government loan help). Without him, I don’t think that loan guarantee would have happened. In that way, he became a folk hero. ... Employees would walk through walls for him."
Obituary:Auto industry legend Lee Iacocca dies at 94
Mark Hackel, executive of Macomb County, Michigan, in metro Detroit,said: “I was just out of high school and I was always impressed that the president or CEO of the organization was also the lead spokesperson. His famous ‘if you can find a better car, buy it’ was legendary. He exemplified what leaders need to do, lead.”
Candice Miller, Macomb County Public Works commissioner and former congresswoman, posted on Facebook: "A Detroit 'car guy' if ever there was one, Lee Iacocca was a true leader for his time. He was a giant among the auto industry and had a deep love for America, as witnessed by his leadership in refurbishing the State of Liberty in the 1980s. ... Mustangs, Chrysler, Leadership... a full life, well lived."
Michelle Krebs, executive analyst at Cox Automotive’s Autotrader, said Iacocca was"a giant in the automotive business and the American stage."
"He was a great speaker and his press conferences were always entertaining. … He was absolutely larger than life. He smoked big cigars, (sat) back in his chair, but when he spoke, he commanded the room."
This article originally appeared on Detroit Free Press:Tributes roll in after Lee Iacocca's death: 'A Detroit car guy if there ever was one'
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Apple's new iOS 13 feature corrects your gaze during video calls
A video call is a great way to connect with friends and family when you can't physically be together. But even if you're staring directly at your loved one's face, there's still something a littleoffabout the whole process. The way your phone's screen display and camera lens sync up means you're never quite able to look your conversational partner squarely in the eye. Until now, that is.Appleis allegedly working on a new feature that subtly adjusts your gaze during video calls, so it appears as if you're looking into the camera when you're actually looking at the screen.
The feature, calledFaceTimeAttention Correction, is part of the latest iOS 13 beta, and appears to use advanced image manipulation to make video-based eye contact appear more natural. It was discovered by app designerMike Rundle, who tested it out with tech enthusiast Will Sigmon. You can see the feature in action below. It looks like it's only available on the newiPhone XSand iPhone XS Max, but that likely means future iterations of the iPhone will get it as standard, helping you to completely maximise your FaceTime game.
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Why We’re Not Keen On Universal Electronics Inc.’s (NASDAQ:UEIC) 1.1% Return On Capital
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Today we'll evaluate Universal Electronics Inc. ( NASDAQ:UEIC ) to determine whether it could have potential as an investment idea. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. First up, we'll look at what ROCE is and how we calculate it. Then we'll compare its ROCE to similar companies. Last but not least, we'll look at what impact its current liabilities have on its ROCE. Return On Capital Employed (ROCE): What is it? ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Generally speaking a higher ROCE is better. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussin has suggested that a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. How Do You Calculate Return On Capital Employed? Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Universal Electronics: 0.011 = US$3.3m ÷ (US$582m - US$289m) (Based on the trailing twelve months to March 2019.) So, Universal Electronics has an ROCE of 1.1%. Check out our latest analysis for Universal Electronics Is Universal Electronics's ROCE Good? One way to assess ROCE is to compare similar companies. Using our data, Universal Electronics's ROCE appears to be significantly below the 11% average in the Consumer Durables industry. This performance is not ideal, as it suggests the company may not be deploying its capital as effectively as some competitors. Independently of how Universal Electronics compares to its industry, its ROCE in absolute terms is low; especially compared to the ~2.7% available in government bonds. There are potentially more appealing investments elsewhere. Story continues We can see that , Universal Electronics currently has an ROCE of 1.1%, less than the 14% it reported 3 years ago. So investors might consider if it has had issues recently. You can see in the image below how Universal Electronics's ROCE compares to its industry. Click to see more on past growth. NasdaqGS:UEIC Past Revenue and Net Income, July 3rd 2019 When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is, after all, simply a snap shot of a single year. What happens in the future is pretty important for investors, so we have prepared a free report on analyst forecasts for Universal Electronics . Do Universal Electronics's Current Liabilities Skew Its ROCE? Current liabilities are short term bills and invoices that need to be paid in 12 months or less. Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. To counter this, investors can check if a company has high current liabilities relative to total assets. Universal Electronics has total liabilities of US$289m and total assets of US$582m. Therefore its current liabilities are equivalent to approximately 50% of its total assets. In light of sufficient current liabilities to noticeably boost the ROCE, Universal Electronics's ROCE is concerning. Our Take On Universal Electronics's ROCE This company may not be the most attractive investment prospect. You might be able to find a better investment than Universal Electronics. If you want a selection of possible winners, check out this free list of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings). I will like Universal Electronics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at [email protected] . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Why Comfort Systems USA, Inc. (NYSE:FIX) Looks Like A Quality Company
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Comfort Systems USA, Inc. (NYSE:FIX).
Over the last twelve monthsComfort Systems USA has recorded a ROE of 23%. One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.23 in profit.
See our latest analysis for Comfort Systems USA
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Comfort Systems USA:
23% = US$116m ÷ US$515m (Based on the trailing twelve months to March 2019.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, as a general rule,a high ROE is a good thing. That means ROE can be used to compare two businesses.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As you can see in the graphic below, Comfort Systems USA has a higher ROE than the average (9.7%) in the Construction industry.
That's what I like to see. In my book, a high ROE almost always warrants a closer look. For exampleyou might checkif insiders are buying shares.
Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used.
While Comfort Systems USA does have some debt, with debt to equity of just 0.15, we wouldn't say debt is excessive. Its very respectable ROE, combined with only modest debt, suggests the business is in good shape. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
Of courseComfort Systems USA may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Bitcoin Has Every Reason to Moonshot Above $40,000, Says Billionaire Investor
Theprice of bitcoincould touch the $40,000 level by 2020, according to billionaire investor Michael Novogratz.
The founder of US-based Galaxy Investments Partners said in aphone interviewwith Bloomberg that he sees bitcoin breaching above its 2017 peak of $20,000 in the near-future. He presented the level as a crucial juncture for the cryptocurrency as it sets eyes to almost double its value in the forthcoming months.
“I don’t expect bitcoin to go to $20,000 in the next two weeks. I also don’t expect it towards the middle to the end of the fourth quarter. We will see kind of a period of consolidation,” said Novogratz.
The former hedge fund manager stated that there is a plentiful of factors that could propel bitcoin towards its old highs and beyond. He mentioned technology giant Microsoft, which is currently building an identity management solution atop the Bitcoin blockchain.
Novogratz also mentionedTD Ameritrade, a US brokerage firm, whose child company ErisX lately received regulatory approval to launch bitcoin derivatives products. Excerpts from his statement:
“You can buy bitcoin on your TD Ameritrade trading account. That’s a big deal because the general population has not signed up and got a Coinbase or Circle wallet yet. We are going to see in the next three to eighteen months more ways to buy bitcoin.”
Novogratz’s comments followed bitcoin’s explosive price rally this year, wherein the cryptocurrency surged by as much as 275 percent to $13,868.44 from January 1 open. A substantial part of those gains came during the second fiscal quarter, closing the period with 189.86 percent in returns upon rising from $4,096 to $10,761.26.
Read the full story on CCN.com.
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Is AirBoss of America Corp.'s (TSE:BOS) Balance Sheet Strong Enough To Weather A Storm?
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AirBoss of America Corp. (TSE:BOS) is a small-cap stock with a market capitalization of CA$198m. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Understanding the company's financial health becomes vital, since poor capital management may bring about bankruptcies, which occur at a higher rate for small-caps. The following basic checks can help you get a picture of the company's balance sheet strength. Nevertheless, these checks don't give you a full picture, so I suggest youdig deeper yourself into BOS here.
BOS has sustained its debt level by about US$71m over the last 12 months which accounts for long term debt. At this stable level of debt, BOS's cash and short-term investments stands at US$9.9m to keep the business going. On top of this, BOS has generated cash from operations of US$19m during the same period of time, leading to an operating cash to total debt ratio of 27%, indicating that BOS’s debt is appropriately covered by operating cash.
Looking at BOS’s US$47m in current liabilities, the company has been able to meet these commitments with a current assets level of US$122m, leading to a 2.57x current account ratio. The current ratio is calculated by dividing current assets by current liabilities. For Chemicals companies, this ratio is within a sensible range since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
With a debt-to-equity ratio of 58%, BOS can be considered as an above-average leveraged company. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. No matter how high the company’s debt, if it can easily cover the interest payments, it’s considered to be efficient with its use of excess leverage. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In BOS's case, the ratio of 4.39x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
Although BOS’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. This is only a rough assessment of financial health, and I'm sure BOS has company-specific issues impacting its capital structure decisions. I recommend you continue to research AirBoss of America to get a more holistic view of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for BOS’s future growth? Take a look at ourfree research report of analyst consensusfor BOS’s outlook.
2. Valuation: What is BOS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether BOS is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Do You Like CNH Industrial N.V. (NYSE:CNHI) At This P/E Ratio?
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at CNH Industrial N.V.'s (NYSE:CNHI) P/E ratio and reflect on what it tells us about the company's share price.CNH Industrial has a P/E ratio of 12.32, based on the last twelve months. In other words, at today's prices, investors are paying $12.32 for every $1 in prior year profit.
View our latest analysis for CNH Industrial
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for CNH Industrial:
P/E of 12.32 = $10.27 ÷ $0.83 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio means that investors are payinga higher pricefor each $1 of company earnings. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'
Earnings growth rates have a big influence on P/E ratios. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. Then, a lower P/E should attract more buyers, pushing the share price up.
CNH Industrial's 167% EPS improvement over the last year was like bamboo growth after rain; rapid and impressive.
We can get an indication of market expectations by looking at the P/E ratio. The image below shows that CNH Industrial has a lower P/E than the average (21.6) P/E for companies in the machinery industry.
Its relatively low P/E ratio indicates that CNH Industrial shareholders think it will struggle to do as well as other companies in its industry classification. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. If you consider the stock interesting, further research is recommended. For example, I often monitordirector buying and selling.
Don't forget that the P/E ratio considers market capitalization. Thus, the metric does not reflect cash or debt held by the company. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context.
CNH Industrial has net debt worth a very significant 147% of its market capitalization. This is a relatively high level of debt, so the stock probably deserves a relatively low P/E ratio. Keep that in mind when comparing it to other companies.
CNH Industrial has a P/E of 12.3. That's below the average in the US market, which is 18.2. While the EPS growth last year was strong, the significant debt levels reduce the number of options available to management. If the company can continue to grow earnings, then the current P/E may be unjustifiably low.
When the market is wrong about a stock, it gives savvy investors an opportunity. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
Of courseyou might be able to find a better stock than CNH Industrial. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Walmart discussed selling clothing brands Bonobos and Modcloth: Vox
(Reuters) - Walmart Inc <WMT.N> has discussed the potential sale of its unprofitable clothing brands Bonobos and Modcloth with buyers, online news portal Vox reported https://www.vox.com/recode/2019/7/3/18716431/walmart-jet-marc-lore-modcloth-amazon-ecommerce-losses-online-sales on Wednesday, citing sources familiar with the matter.
The world's largest retailer bought a bunch of clothing brands including Bonobos and Modcloth in 2017 and Eloquii last year to appeal to younger shoppers in its effort to compete with Amazon.com Inc <AMZN.O>.
According to Vox's report, all three businesses are unprofitable and the decision to sell the brands comes after Walmart was "unable to turn around the company's economics" in the near term.
Modcloth will likely be sold this year, but Walmart plans to retain Bonobos, after contemplating a sale, the report said.
The report also noted that the retailer is projecting losses of more than $1 billion for its U.S. e-commerce division in 2019, on revenue of $21 billion to $22 billion.
Walmart declined to comment on the matter.
Last month, the company announced a sweeping overhaul at Jet.com, an online startup it acquired in 2016 for $3.3 billion, after it failed to live up to the retailer's e-commerce ambitions.
Jet was expected to boost Walmart's reach particularly among city dwellers and millennial shoppers, but sources told https://www.reuters.com/article/us-walmart-jet-com/jetcom-falls-by-wayside-as-walmart-focuses-on-its-website-online-grocery-idUSKCN1TD2PS Reuters in June that it had failed to drive online grocery sales and grow market share in urban areas.
Walmart had previously said it expected losses from its online business, including Jet, to increase in 2019.
Shares in the company were down nearly a percent at $110.71 before the opening bell.
(Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli)
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XPO Logistics to Move the Tour de France for Another Six Years
GREENWICH, Conn.- July 3, 2019 -XPO Logistics, Inc. (XPO), a leading global provider of supply chain solutions, has been awarded a contract extension through 2024 as the official transport partner of the Tour de France. This is the thirty-ninth consecutive year that XPO has partnered with the renowned cycling event to support all 21 stages of the race.
XPO will provide logistics support to event organizer Amaury Sport Organisation (A.S.O.), moving almost 400 tons of equipment over 3,400 kilometers. The cyclists will depart from Brussels on July 6 and finish on the Champs-Élysées in Paris on July 28. More than 45 XPO trucks and 55 drivers will travel with the Tour, transporting materials such as barriers, podiums, gates, course paint, furniture, audiovisual equipment and partners` merchandise. XPO specialists in event logistics have been preparing for this year`s Tour for the past five months.
Luis Gomez, managing director, transport - Europe, XPO Logistics, said, "We thank A.S.O. for entrusting us with another six years of this prestigious partnership. Our people take great pride in supporting the Tour de France and contributing to its success. Over nearly four decades, our professional transport teams have been instrumental to the safety and comfort of all participants."
Laurent Lachaux, sales and partnerships director, A.S.O., said, "The Tour de France is delighted with the renewal of our collaboration with XPO Logistics. We know we can count on XPO as a trustworthy partner for this challenging event. XPO`s outstanding track record with the Tour and their expertise with complex logistics are key for everyone involved."
Other major competitions supported by XPO include the Schneider Electric Paris Marathon, Tour Voile (sailing), Evian Championship (golf), Arctic Race of Norway (cycling), Freeride World Tour (skiing and snowboarding) and Coupe de France (soccer).
Follow #XPOMovesTheTour onYouTubeandLinkedIn.
About XPO LogisticsXPO Logistics, Inc. (XPO) is a top ten global logistics provider of cutting-edge supply chain solutions to the most successful companies in the world. The company operates as a highly integrated network of people, technology and physical assets in 32 countries, with 1,540 locations and approximately 100,000 employees. XPO uses its network to help more than 50,000 customers manage their goods most efficiently throughout their supply chains. XPO`s corporate headquarters is in Greenwich, Conn., USA, and its European headquarters is in Lyon, France.xpo.com.
Media ContactXPO Logistics, Inc.Erin Kurtz, [email protected]
This announcement is distributed by West Corporation on behalf of West Corporation clients.The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.Source: XPO Logistics, Inc. via GlobeNewswireHUG#2246781
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The Daily Biotech Pulse: Roche's Flu Drug Aces Late-Stage Trial, Acura Outlicenses Pain Medication, Neuronetics Gets New Finance Chief
Here's a roundup of top developments in the biotech space over the last 24 hours.
Scaling The Peaks
(Biotech stocks hitting 52-week highs on July 2)
• ANI Pharmaceuticals Inc Common Stock(NASDAQ:ANIP)
• ArQule, Inc.(NASDAQ:ARQL)
• Axsome Therapeutics Inc(NASDAQ:AXSM)
• Coherus Biosciences Inc(NASDAQ:CHRS)
• GALAPAGOS NV/S ADR(NASDAQ:GLPG)
• MeiraGTx Holdings PLC(NASDAQ:MGTX)
• ZEALAND PHARMA/S ADR(NASDAQ:ZEAL)
Down In The Dumps
(Biotech stocks hitting 52-week lows on July 2)
• Adamis Pharmaceuticals Corp(NASDAQ:ADMP)
• Aerie Pharmaceuticals Inc(NASDAQ:AERI)
• Atreca Inc(NASDAQ:BCEL)(IPOed June 20)
• Biopharmx Corp(NYSE:BPMX)
• ContraVir Pharmaceuticals Inc(NASDAQ:CTRV)
• Kaleido Biosciences Inc(NASDAQ:KLDO)
• Nuvectra Corp(NASDAQ:NVTR)
• Personalis Inc(NASDAQ:PSNL) (IPOed June 20)
• Prevail Therapeutics Inc(NASDAQ:PRVL) (IPOed June 20)
• Sienna Biopharmaceuticals Inc(NASDAQ:SNNA)
• Surface Oncology Inc(NASDAQ:SURF)
• Tetraphase Pharmaceuticals Inc(NASDAQ:TTPH)
• TrovaGene Inc(NASDAQ:TROV)
See Also:Attention Biotech Investors: Mark Your Calendar For These July PDUFA Dates
Stocks In Focus Roche's Flu Medication Found Effective And Safe In Children
Roche Holdings AG Basel ADR Common Stock(OTC:RHHBY)'s Genetech unit announced its Phase 3 study dubbed MNISTONE-2 met its primary endpoint of demonstrating that Xofluza was well tolerated in children with flu. The study also showed that Xofluza is comparable to oseltamivir, a proven effective treatment, for flu in children, in reducing the duration of flu symptoms, including fever.
Glaxo-owned ViiV's 2-Drug Regimen For HIV-1 Infection Receives EU Clearance
ViiV Healthcare, majority owned byGlaxoSmithKline plc(NYSE:GSK), withPfizer Inc.(NYSE:PFE) andSHIONOGI & CO L/ADR(OTC:SGIOY) also as shareholders, said the European Commission granted Marketing Authorization for Dovato for the treatment of HIV-1 infection in adults and adolescents above 12 years of age weighing at least 40 kg.
Dovato is once-daily, single pill combination of dolutegravir and lamivudine, as opposed to the current standard of care, which is a three-drug regimen.
Acura Outlicenses Abuse Deterrent Pain Medication For Up To $21.3M
Acura Pharmaceuticals, Inc.(OTC:ACUR) announced a licensing, development and commercialization agreement with Abuse Deterrent Pharma – a special purpose company representing a consortium of investors, which will finance the company's operations and completion of the development of LTX-03 immediate-release tablets using Acura's patented LIMITx technology.
The investigational drug addresses the consequences of excess oral administration of opioid tablets, the most prevalent route of opioid overdose and abuse.
The transaction is valued up to $21.3 million, not including royalties. The agreement also provides for Acura receiving royalties and potential sales-related milestones and AD Pharma retaining commercialization rights.
Neuronetics Appoints Furlong as Its CFO
Neuronetics Inc(NASDAQ:STIM) announced the appointment of Stephen Furlong as its CFO and Secretary, effective July 22, replacing the incumbent Peter Donato, who will leave after a transition period.
Akero Doses First Patient In Mid-Stage NASH Study
Akero Therapeutics Inc(NASDAQ:AKRO) said it has begun dosing the first patient in its Phase 2a study of AKR-001, a novel FGF21 analog for the treatment of non-alcoholic steatohepatitis. Thecompanysaid it will report the results of the study in the first half of 2020.
Arbutus Sells Part Of Royalty Interest In Onpattro For $20M
Arbutus Biopharma Corp(NASDAQ:ABUS) announced the sale of part of its royalty interest on future global net sales ofOnpattro, an RNA interference therapeutic currently sold byAlnylam Pharmaceuticals, Inc.(NASDAQ:ALNY), to OMERS, the defined benefit pension plan for municipal employees based in the Province of Ontario, Canada, for $20 million in gross proceeds before advisory fees.
See more from Benzinga
• The Daily Biotech Pulse: Celyad To Advance Leukemia Drug To Clinical Trial, Positive Data For Teva's Migraine Drug
• The Week Ahead In Biotech: Pending Clinical Readouts In Focus
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Is Fidelity National Financial, Inc.'s (NYSE:FNF) 15% ROE Better Than Average?
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One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand Fidelity National Financial, Inc. (NYSE:FNF).
Fidelity National Financial has a ROE of 15%, based on the last twelve months. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.15.
View our latest analysis for Fidelity National Financial
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Fidelity National Financial:
15% = US$737m ÷ US$5.1b (Based on the trailing twelve months to March 2019.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is the capital paid in by shareholders, plus any retained earnings. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, all else being equal,a high ROE is better than a low one. That means ROE can be used to compare two businesses.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As you can see in the graphic below, Fidelity National Financial has a higher ROE than the average (8.7%) in the Insurance industry.
That is a good sign. In my book, a high ROE almost always warrants a closer look. For example,I often check if insiders have been buying shares.
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
While Fidelity National Financial does have some debt, with debt to equity of just 0.16, we wouldn't say debt is excessive. The combination of modest debt and a very respectable ROE suggests this is a business worth watching. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.
Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Japan says curbs on exports to SKorea due to broken pledge
TOKYO (AP) — Prime Minister Shinzo Abe said Wednesday that Japan cannot give South Korean exports preferential treatment because the country is not abiding by an agreement regarding wartime issues that Japan insists have been resolved. Abe was objecting to criticism over escalating tensions between the two neighbors amid disputes over Koreans forced to work as laborers during World War II. He was defending a decision announced Monday to impose restrictions on Japan's exports of semiconductor-related materials to South Korea. As of Thursday, exports of some materials used in manufacturing computer parts, including fluorinated polyimides used for displays, must apply for approval for each contract. "We did not intertwine historical issues with trade issues," Abe said. "The issue of former Korean laborers is not about a historical issue but about whether to keep the promise between countries under international law ... and what to do when the promise is broken." Abe made the comment when asked about diplomacy during a party leaders' debate ahead of Tuesday's start of official campaigning for the July 21 Upper House elections. Relations between the two main U.S. allies in East Asia have rapidly soured since South Korea's top court in October ordered Nippon Steel & Sumitomo Metal Corp. to pay 100 million won ($88,000) each to four plaintiffs forced to work for the company during Japan's 1910-1945 colonization of the Korean Peninsula. South Korea's top court ordered the seizure of local assets of the company after it refused to pay the compensation. Mitsubishi Heavy Industries also has refused an order by South Korea's Supreme Court to financially compensate 10 Koreans for forced labor during Japan's colonial era. Abe said each country bears a responsibility to carry out export controls for national security reasons. "Within that obligation, if another country fails to keep its promise, we cannot give it preferential treatment like before," he said. Story continues Abe and other officials have offered conflicting explanations for the move, citing both a lack of trust and unspecified security concerns. On Tuesday, Chief Cabinet Secretary Yoshihide Suga cited national security concerns and "lack of trust" after exchanges with Seoul for Japan's export control measures on South Korea. Japan is a major supplier of materials used to make the computer chips that run most devices, including Apple iPhones and laptop computers. Tokyo's decision is also expected to affect exports called "resists" that are used for making semiconductors, and hydrogen fluoride used for semiconductors, pharmaceuticals and polymers such as nylon and Teflon. ___ Follow Mari Yamaguchi on Twitter at https://www.twitter.com/mariyamaguchi
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Why Badger Meter, Inc.'s (NYSE:BMI) High P/E Ratio Isn't Necessarily A Bad Thing
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Badger Meter, Inc.'s ( NYSE:BMI ), to help you decide if the stock is worth further research. Badger Meter has a P/E ratio of 54.5 , based on the last twelve months. That means that at current prices, buyers pay $54.5 for every $1 in trailing yearly profits. See our latest analysis for Badger Meter How Do I Calculate A Price To Earnings Ratio? The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Badger Meter: P/E of 54.5 = $58.35 ÷ $1.07 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? A higher P/E ratio implies that investors pay a higher price for the earning power of the business. All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios P/E ratios primarily reflect market expectations around earnings growth rates. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. And as that P/E ratio drops, the company will look cheap, unless its share price increases. Badger Meter's earnings per share fell by 7.2% in the last twelve months. But it has grown its earnings per share by 3.2% per year over the last five years. How Does Badger Meter's P/E Ratio Compare To Its Peers? The P/E ratio essentially measures market expectations of a company. You can see in the image below that the average P/E (18.4) for companies in the electronic industry is lower than Badger Meter's P/E. NYSE:BMI Price Estimation Relative to Market, July 3rd 2019 Badger Meter's P/E tells us that market participants think the company will perform better than its industry peers, going forward. The market is optimistic about the future, but that doesn't guarantee future growth. So further research is always essential. I often monitor director buying and selling . Story continues A Limitation: P/E Ratios Ignore Debt and Cash In The Bank One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. That means it doesn't take debt or cash into account. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores. How Does Badger Meter's Debt Impact Its P/E Ratio? Badger Meter has net cash of US$4.1m. That should lead to a higher P/E than if it did have debt, because its strong balance sheets gives it more options. The Bottom Line On Badger Meter's P/E Ratio With a P/E ratio of 54.5, Badger Meter is expected to grow earnings very strongly in the years to come. The recent drop in earnings per share might keep value investors away, but the healthy balance sheet means the company retains potential for future growth. If fails to eventuate, the current high P/E could prove to be temporary, as the share price falls. When the market is wrong about a stock, it gives savvy investors an opportunity. People often underestimate remarkable growth -- so investors can make money when fast growth is not fully appreciated. So this free report on the analyst consensus forecasts could help you make a master move on this stock. Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with modest (or no) debt, trading on a P/E below 20. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at [email protected] . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Have Insiders Been Buying BMC Stock Holdings, Inc. (NASDAQ:BMCH) Shares?
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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares inBMC Stock Holdings, Inc.(NASDAQ:BMCH).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for BMC Stock Holdings
In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director David Flitman bought US$202k worth of shares at a price of US$22.49 per share. That means that even when the share price was higher than US$21.40 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$561k for 28000 shares. On the other hand they divested 5700 shares, for US$112k. In the last twelve months there was more buying than selling by BMC Stock Holdings insiders. Their average price was about US$20.03. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
At BMC Stock Holdings,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, two insiders bought US$270k worth of shares in that time. But we did see Michael Farmer sell shares worth US$56k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. BMC Stock Holdings insiders own about US$22m worth of shares. That equates to 1.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in BMC Stock Holdings shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for BMC Stock Holdings.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Industrials ETF (PRN) Hits New 52-Week High
For investors seeking momentum,Invesco DWA Industrials Momentum ETF PRNis probably on radar now. The fund just hit a 52-week high and is up about 41.9% from its 52-week low price of $47.61/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
PRN in Focus
The underlying DWA Industrials Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The fund charges investors 60 basis points a year in fees (see: all Industrials ETFs here).
Why the Move?
Though slipped from the previous month, the ISM Manufacturing PMI for June in the United States beat expectations. In a separate study, IHS Markit reported that U.S. manufacturing PMI rose 50.6 in June from 50.1 in May. Such improvements in the U.S. manufacturing sector was favorable for the fund.
More Gains Ahead?
Currently, PRN has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportInvesco DWA Industrials Momentum ETF (PRN): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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UK recession fears mount amid Brexit and global slowdown
LONDON (AP) — Britain's economy showed alarming signs of a sharp slowdown, possibly even into recession, as uncertainty over Brexit combines with a less benign global backdrop, according to a closely watched survey of business activity in the U.K. released Wednesday. The survey, from financial information firm IHS Markit and the Chartered Institute of Procurement & Supply, showed that the economy contracted in June at its steepest rate since the immediate aftermath of the country's vote three years ago to leave the European Union. The survey also found the second-steepest fall in output since the height of the global financial crisis a decade ago. The survey's main "all-sector" purchasing managers' index fell in June to 49.2 from 50.7 the previous month, suggesting that a contraction is underway. Though some of the retreat was clearly due to firms adjusting their stock levels after boosting them to record levels ahead of the original Brexit date of March 29, the survey does clearly highlight the scale of the pessimism among firms. "The overall degree of business sentiment about the year ahead remains worryingly subdued, characterized by uncertainty over the potential disruption of Brexit, signs of weakening sales growth and a lowering of economic growth projections," said Chris Williamson, chief business economist for IHS Markit. Like all economies around the world, Britain has had to confront the slowdown in the global economy largely due to mounting trade tensions between the United States and China. However, it has to do that at a time when no one has an idea how Brexit will pan out in the weeks and months ahead. Brexit has been delayed to Oct. 31 after the British Parliament's failure to back the deal that Prime Minister Theresa May agreed with the EU. Jeremy Hunt and Boris Johnson, who are fighting it out to replace May as leader of the Conservative Party and to become the next prime minister, have indicated that they'd be prepared to back a "no-deal" Brexit on that date if no revised agreement with the EU is struck. Story continues Most economists think such an outcome will lead to a deep recession in Britain as tariffs and other restrictions to trade are imposed. With so much uncertainty around, businesses remain reluctant to invest in the future and many are warning they may up sticks and move to the continent where they will have continued frictionless access to the European single market. Bank of England Governor Mark Carney signaled in a speech on Tuesday that the British economy is slowing by more than predicted. He said it looks like "the negative spillovers to the U.K. from a weaker world economy are increasing and the drag from Brexit uncertainties on underlying growth here could be intensifying." The latest surveys, he said, "point to no growth in U.K. output." That was before Wednesday's report from IHS Markit and CIPS, which also listed a catalog of woes afflicting the British economy from the sharpest drop in factory output since Oct. 2012 and the steepest decline in construction since April 2009. Capital Economic has grown more negative about the immediate prospects for the British economy following the survey and now thinks it will contract by 0.2% in the second quarter of the year. Its U.K. economist, Andrew Wishart, doesn't think there's any respite coming in the summer. "The fact the surveys have not picked up towards the end of the quarter, and global manufacturing is slowing, means the risk is that the economy fails to bounce back in the third quarter," he said. If a second-quarter contraction were followed by another in the third, then the British economy would officially be in recession — widely acknowledged as two consecutive quarters of negative growth. Not exactly the backdrop either Hunt or Johnson would like to have as they take the reins of the economy.
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Deutsche Bank to axe investment bankers in up to $5.6 billion revamp
By Tom Sims and Hans Seidenstuecker
FRANKFURT (Reuters) - Deutsche Bank <DBKGn.DE> is preparing to unveil a sweeping, multi-billion euro overhaul within days that would see the axe fall heaviest on investment bankers, sources familiar with the matter said on Wednesday.
The revamp is expected to cost the bank up to 5 billion euros ($5.6 billion), one of the sources said.
Chief Executive Officer Christian Sewing flagged an extensive restructuring in May when he promised shareholders "tough cutbacks" to the investment bank. The pledge came after Deutsche failed to agree a merger with rival Commerzbank <CBKG.DE>.
The lender, Germany's largest, is planning on cutting between 15,000 and 20,000 jobs, or more than one in five of its 91,500 employees.
The bulk of the job cuts will take place outside Germany, said a person with knowledge of the plans, as they are mostly targeting the investment bank, a unit that has struggled to generate sustainable profits since the 2008 financial crisis.
The overhaul signals that Deutsche is coming to terms with its failure to keep pace with Wall Street's big hitters such as JP Morgan Chase & Co <JPM.N> and Goldman Sachs <GS.N>.
"Sewing really wants to move the needle," said another person familiar with the plans.
The price tag for restructuring raises the probability that the lender will report a loss for the full year, the person said, meaning Deutsche will have been in the red for four out of the five last years.
But executives and investors hope the overhaul, however costly, will be radical enough to turn around the bank's fortunes after its shares fell to a record low last month.
Deutsche declined to comment on the restructuring costs or the effect on its earnings. The bank said it was working on measures to accelerate its transformation so as to improve its sustainable profitability.
"We will update all stakeholders if and when required," it said. The bank's supervisory board is due to meet on Sunday to discuss the overhaul, people familiar with the matter said.
ACHILLES HEEL
Other measures under consideration include a reduction in the size of the bank's nine-member management board, as well as the creation of a so-called bad bank to hold tens of billions of euros of non-core assets.
Founded in 1870, Deutsche has long been a default source of lending and advice for German companies seeking to expand abroad or raise money through the bond or equity markets, a role which had the tacit backing of successive governments in Berlin.
Big cuts to its investment bank could make it harder for the lender to fulfill this role and would mark a reversal of a decades-long expansion that began with the purchase of Morgan Grenfell in London in 1989 and continued a decade later by taking over Bankers Trust in New York.
The investment bank generates about half of Deutsche Bank's revenue but is also considered its Achilles heel.
Revenue at the division is forecast to fall to 12.4 billion euros this year, according to a consensus of analysts. That would mark a fourth consecutive year of decline, down more than 30% from 2015.
In a shift that underscores its waning relevance within Deutsche, the investment bank would be represented on the board by Sewing rather than having a seat at the table, as is currently the case, according to people familiar with the plans.
To help finance its overhaul, Deutsche is seeking to lower the amount of capital that regulators require it to have on hand, according to three people with knowledge of the matter.
The bank is aiming for a so-called common equity tier 1 capital ratio of 12.5%, two of the people said, confirming a figure first reported by the Financial Times. The paper said that would free up 3.5 billion euros in capital.
(Reporting by Tom Sims and Hans Seidenstuecker; Editing by Elaine Hardcastle/Michelle Martin and Emelia Sithole-Matarise)
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Volatility 101: Should Owens-Illinois (NYSE:OI) Shares Have Dropped 49%?
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For many, the main point of investing is to generate higher returns than the overall market. But in any portfolio, there will be mixed results between individual stocks. So we wouldn't blame long termOwens-Illinois, Inc.(NYSE:OI) shareholders for doubting their decision to hold, with the stock down 49% over a half decade. In contrast, the stock price has popped 8.9% in the last thirty days. But this could be related to good market conditions, with stocks up around 7.7% during the period.
See our latest analysis for Owens-Illinois
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Looking back five years, both Owens-Illinois's share price and EPS declined; the latter at a rate of 10% per year. Notably, the share price has fallen at 13% per year, fairly close to the change in the EPS. That suggests that the market sentiment around the company hasn't changed much over that time. Rather, the share price has approximately tracked EPS growth.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
Thisfreeinteractive report on Owens-Illinois'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
Owens-Illinois shareholders are up 5.0% for the year (even including dividends). Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 13% per year, over five years. So this might be a sign the business has turned its fortunes around. If you would like to research Owens-Illinois in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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BBC 'hiding' millions paid to stars meaning Graham Norton earns more than Gary Lineker
Host Graham Norton during the filming for the Graham Norton Show (Credit: PA) Some of the BBC’s highest paid stars earned considerably more than the broadcaster declared on Tuesday, it has emerged. Graham Norton was number three on the list of the BBC’s top earners - but the Irish comedian actually earns £5.2 million more each year than the salary announced by the corporation. Norton, and many other BBC presenters are paid through independent production companies on top of the salary they receive directly from the BBC. Read more: Vanessa Feltz's BBC salary raises eyebrows According to Companies House, Norton was paid £5.2million through his TV company So Television in 2017, predominantly for hosting his BBC One chat show. But the BBC only published his salary as in the region of £610,000 - £614,999. Gary Lineker topped the list for the third time in a row since the BBC began publishing the salaries of all employees earning £150,00 or more. But at £1,750,000 - £1,754,999, Lineker actually earns considerably less than Norton. Alex Jones is thought to earn around £400,000 a year for her work on 'The One Show' (Credit: PA) Claudia Winkleman and Zoe Ball came joint eighth on the list with salaries in the region of £370,000 - £374,999. But both earn more money from third party production company BBC Studios for their work on Strictly Come Dancing and Strictly spin-off It Takes Two . This is also explains why Strictly host Tess Daly is not on the list, as she is paid by BBC Studios for her role. Read more: BBC top 10 highest paid stars revealed The One Show presenters Alex Jones and Matt Baker are also thought to earn over £400,000 and BBC Studios also pays the salaries of the stars of shows including Top Gear, Doctor Who, EastEnders, Casualty and Holby City . A spokesperson for the BBC said: “The BBC’s Charter requires us to set out the names of individuals paid more than £150k from the licence fee and that’s exactly what we do. Independent production companies and BBC Studios are commercially run and not funded by the licence fee, so are not required by the Government to disclose salaries.” A representative for Graham Norton has been contacted for comment.
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Here's What TopBuild Corp.'s (NYSE:BLD) P/E Is Telling Us
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Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll apply a basic P/E ratio analysis to TopBuild Corp.'s (NYSE:BLD), to help you decide if the stock is worth further research. Looking at earnings over the last twelve months,TopBuild has a P/E ratio of 19.25. That corresponds to an earnings yield of approximately 5.2%.
See our latest analysis for TopBuild
Theformula for P/Eis:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for TopBuild:
P/E of 19.25 = $81.19 ÷ $4.22 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. When earnings grow, the 'E' increases, over time. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
TopBuild saw earnings per share decrease by 20% last year. But it has grown its earnings per share by 19% per year over the last three years.
One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. The image below shows that TopBuild has a higher P/E than the average (14) P/E for companies in the consumer durables industry.
TopBuild's P/E tells us that market participants think the company will perform better than its industry peers, going forward. Shareholders are clearly optimistic, but the future is always uncertain. So further research is always essential. I often monitordirector buying and selling.
It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. In other words, it does not consider any debt or cash that the company may have on the balance sheet. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.
Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio.
Net debt totals 23% of TopBuild's market cap. That's enough debt to impact the P/E ratio a little; so keep it in mind if you're comparing it to companies without debt.
TopBuild's P/E is 19.3 which is about average (18.2) in the US market. Given it has some debt, but didn't grow last year, the P/E indicates the market is expecting higher profits ahead for the business.
Investors should be looking to buy stocks that the market is wrong about. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold.
Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Deutsche Telekom, Huawei customer, continues vendor review
BERLIN (Reuters) - Deutsche Telekom said it was continuing a review of its vendor strategy as it announced the limited launch of 5G services in its home market, where it has partnered with China's Huawei Technologies in trial projects.
Asked whether it was taking any action in response to U.S. calls on its allies to exclude Huawei from their networks, executives said they were continuing an ongoing vendor review and were in close contact with regulators and the government.
"The most important criterion is network security - and the most important statement to make here is that we should not depend on one vendor," Deutsche Telekom's technology chief Claudia Nemat told a briefing.
(Reporting by Markus Wacket; Writing by Douglas Busvine; Editing by Mihcelle Martin)
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Is Odeon Film AG (FRA:ODE) A Smart Choice For Dividend Investors?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Dividend paying stocks like Odeon Film AG ( FRA:ODE ) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. Odeon Film has only been paying a dividend for a year or so, so investors might be curious about its 3.4% yield. Some simple research can reduce the risk of buying Odeon Film for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on Odeon Film! DB:ODE Historical Dividend Yield, July 3rd 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 34% of Odeon Film's profits were paid out as dividends in the last 12 months. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Odeon Film paid out a conservative 31% of its free cash flow as dividends last year. It's positive to see that Odeon Film's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. We update our data on Odeon Film every 24 hours, so you can always get our latest analysis of its financial health, here. Story continues Dividend Volatility From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Its most recent annual dividend was €0.04 per share, effectively flat on its first payment one years ago. Modest dividend growth is good to see, especially with the payments being relatively stable. However, the payment history is relatively short and we wouldn't want to rely on this dividend too much. Dividend Growth Potential Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. It's good to see Odeon Film has been growing its earnings per share at 65% a year over the past 5 years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth. Conclusion To summarise, shareholders should always check that Odeon Film's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. It's great to see that Odeon Film is paying out a low percentage of its earnings and cash flow. We were also glad to see it growing earnings, although its dividend history is not as long as we'd like. Overall we think Odeon Film scores well on our analysis. It's not quite perfect, but we'd definitely be keen to take a closer look. See if management have their own wealth at stake, by checking insider shareholdings in Odeon Film stock. If you are a dividend investor, you might also want to look at our curated list of dividend stocks yielding above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at [email protected] . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Does Big Lots, Inc.'s (NYSE:BIG) P/E Ratio Signal A Buying Opportunity?
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Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll show how you can use Big Lots, Inc.'s (NYSE:BIG) P/E ratio to inform your assessment of the investment opportunity. Looking at earnings over the last twelve months,Big Lots has a P/E ratio of 7.76. That corresponds to an earnings yield of approximately 13%.
Check out our latest analysis for Big Lots
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Big Lots:
P/E of 7.76 = $27.21 ÷ $3.51 (Based on the year to May 2019.)
The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple. Earnings growth means that in the future the 'E' will be higher. That means unless the share price increases, the P/E will reduce in a few years. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
Big Lots saw earnings per share decrease by 13% last year. But over the longer term (5 years) earnings per share have increased by 8.7%.
The P/E ratio essentially measures market expectations of a company. If you look at the image below, you can see Big Lots has a lower P/E than the average (9.8) in the multiline retail industry classification.
This suggests that market participants think Big Lots will underperform other companies in its industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. It is arguably worth checkingif insiders are buying shares, because that might imply they believe the stock is undervalued.
The 'Price' in P/E reflects the market capitalization of the company. In other words, it does not consider any debt or cash that the company may have on the balance sheet. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
Big Lots's net debt equates to 38% of its market capitalization. You'd want to be aware of this fact, but it doesn't bother us.
Big Lots trades on a P/E ratio of 7.8, which is below the US market average of 18.2. Since it only carries a modest debt load, it's likely the low expectations implied by the P/E ratio arise from the lack of recent earnings growth.
When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
You might be able to find a better buy than Big Lots. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Nigel Farage claims Boris Johnson will not deliver on Brexit
Brexit Party leader Nigel Farage has slammed the Tory leader hopeful Boris Johnson. (GETTY) Nigel Farage has blasted Conservative leader frontrunner Boris Johnson for saying what he thinks the audience wants to hear and not being “sincere”. The leader of the Brexit Party said that Mr Johnson’s ambition to get the UK out of the EU on October 31 are “words to get elected” and he would be surprised if he follows through. Speaking on Sky News Mr Farage said: “I’ve no idea where he stands on the third runway, I’ve no idea where he stands on HS2, I’ve no idea where he stands on sugar taxes. “Immigration. In fact this is a guy that just flips and flops, says what he thinks the audience wants to hear. Boris Johnson is currently on his campaign trail across the country. (GETTY) “An when it comes to Brexit, I heard him yesterday talking in Belfast saying that the Irish Backstop was unacceptable and yet he voted for it.” In the same interview Mr Farage confessed to not “trusting anything that the Conservatives say at this moment in time”. Speaking on Good Morning Britain, Mr Farage said neither Mr Johnson or Jeremy Hunt “have the guts to deliver Brexit”. Mr Johnson has vowed that Britain will leave the EU on October 31 with or without a deal and Mr Hunt has said he would give the EU three weeks to renegotiate the withdrawal agreement. Read More on Yahoo News: Not even Lib Dem voters have heard of the Lib Dem leadership candidates European Union tells Britain: There will be no renegotiation of Brexit deal At a leadership hustings last week, Mr Johnson has insisted he would not work with Mr Farage in Brexit talks. Rory Stewart, who came fifth in the Tory leadership contest, said during his campaign that he would work with Mr Farage to solve the Brexit issue. The Brexit Party MEPs turned their backs on the EU’s national anthem yesterday in Strasbourg. The European parliament’s president, Antonio Tajani, criticised the action saying: “It is a question of respect; it doesn’t mean that you necessarily share the views of the European Union. If you listen to the anthem of another country you rise to your feet.” Watch the latest videos from Yahoo UK
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Why Forrester Research, Inc.’s (NASDAQ:FORR) Return On Capital Employed Looks Uninspiring
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Today we'll look at Forrester Research, Inc. (NASDAQ:FORR) and reflect on its potential as an investment. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business.
First up, we'll look at what ROCE is and how we calculate it. Next, we'll compare it to others in its industry. And finally, we'll look at how its current liabilities are impacting its ROCE.
ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business. All else being equal, a better business will have a higher ROCE. Ultimately, it is a useful but imperfect metric. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.'
Analysts use this formula to calculate return on capital employed:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Forrester Research:
0.056 = US$21m ÷ (US$640m - US$270m) (Based on the trailing twelve months to March 2019.)
Therefore,Forrester Research has an ROCE of 5.6%.
View our latest analysis for Forrester Research
When making comparisons between similar businesses, investors may find ROCE useful. We can see Forrester Research's ROCE is meaningfully below the Professional Services industry average of 11%. This performance is not ideal, as it suggests the company may not be deploying its capital as effectively as some competitors. Independently of how Forrester Research compares to its industry, its ROCE in absolute terms is low; especially compared to the ~2.7% available in government bonds. Readers may wish to look for more rewarding investments.
Forrester Research's current ROCE of 5.6% is lower than 3 years ago, when the company reported a 17% ROCE. This makes us wonder if the business is facing new challenges. You can click on the image below to see (in greater detail) how Forrester Research's past growth compares to other companies.
When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is only a point-in-time measure. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company.
Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counteract this, we check if a company has high current liabilities, relative to its total assets.
Forrester Research has total liabilities of US$270m and total assets of US$640m. As a result, its current liabilities are equal to approximately 42% of its total assets. In light of sufficient current liabilities to noticeably boost the ROCE, Forrester Research's ROCE is concerning.
So researching other companies may be a better use of your time. Of course,you might also be able to find a better stock than Forrester Research. So you may wish to see thisfreecollection of other companies that have grown earnings strongly.
For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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What Should You Know About Associated British Foods plc's (LON:ABF) Future?
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Based on Associated British Foods plc's (LON:ABF) earnings update in March 2019, analyst consensus outlook appear cautiously optimistic, as a 20% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of 12%. Presently, with latest-twelve-month earnings at UK£1.0b, we should see this growing to UK£1.2b by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company shouldresearch its fundamentals here.
View our latest analysis for Associated British Foods
Over the next three years, it seems the consensus view of the 18 analysts covering ABF is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for ABF, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, ABF's earnings should reach UK£1.5b, from current levels of UK£1.0b, resulting in an annual growth rate of 11%. EPS reaches £1.68 in the final year of forecast compared to the current £1.27 EPS today. Margins are currently sitting at 6.5%, which is expected to expand to 8.3% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Associated British Foods, I've put together three pertinent factors you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is Associated British Foods worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether Associated British Foods is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of Associated British Foods? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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UPDATE 5-Trump tells Iran threats 'can come back to bite you' in nuclear standoff
* Iran to raise fissile purity of enriched uranium after July 7
* Plans to return Arak heavy-water reactor to previous uses
* Iran nuclear deal with world powers fraying further (Adds Trump comment, paragraphs 1, 6)
By Babak Dehghanpisheh
GENEVA, July 3 (Reuters) - U.S. President Donald Trump warned Iran on Wednesday against making threats that can "come back to bite you like nobody has been bitten before," after Tehran announced it would breach a 2015 nuclear deal.
President Hassan Rouhani announced that after July 7 Iran would enrich uranium beyond a fissile purity of 3.67%, which is the maximum allowed by the deal and a level which is deemed suitable for electricity generation.
It is the second time this week that Tehran has announced a measure that undermines the nuclear accord, which has been in trouble since Trump pulled the United States out of it last year.
"Our level of enrichment will no longer be 3.67. We will put this commitment aside by whatever amount we feel like, by whatever amount is our necessity, our need. We will take this above 3.67," said Rouhani, according to IRIB news agency.
Enrichment to 90% yields nuclear bomb-grade material.
Trump responded with a post on social media, saying: "Iran has just issued a New Warning. Rouhani says that they will Enrich Uranium to 'any amount we want' if there is no new Nuclear Deal. Be careful with the threats, Iran. They can come back to bite you like nobody has been bitten before!"
Experts said Iran has no legitimate use for uranium enriched beyond the level permitted by the deal.
“There is no justification,” said Kelsey Davenport of the Arms Control Association, a Washington advocacy organization.
The move, she said, was aimed at increasing pressure on European powers, China and Russia to compensate Iran for the impact of U.S. sanctions reimposed by Trump after he renounced the deal.
“These are political decisions to increase leverage. They are no indications that Iran is about to dash to a bomb or pursue nuclear weapons,” Davenport said.
Tehran has denied any intent to develop nuclear weapons.
Rouhani added that the Islamic Republic's actions were reversible. "All of our actions can be returned to the previous condition within one hour, why are you worried?" he said.
TOUGH TONE
His tone was unusually tough. Rouhani was the Iranian architect of the nuclear pact and is seen as a pragmatist, unlike senior clerics in the ruling elite who opposed his opening to the West and have kept up their denunciations of the United States.
Rouhani further urged the Trump administration to "adopt a rational approach again" and return to the negotiating table.
Weeks of tensions with Washington crested last month when Tehran shot down a U.S. military surveillance drone and Trump responded with a decision to launch air strikes only to call them off at the last minute. Washington also accused Iran of being behind attacks on several oil tankers in the Gulf, which Tehran denies.
Iran on Monday said it has amassed more low-enriched uranium than the 300 kg (661 lbs) permitted under the nuclear pact, prompting Trump to warn it was "playing with fire".
European nations who are part of the nuclear deal said on Tuesday they were "extremely concerned" by Tehran's stockpiling announcement while Israel said it was preparing for possible involvement in any military confrontation between Iran and the United States.
Rouhani said that if the nations in the pact did not protect trade with Iran promised under the deal but blocked by Trump's reimposition of tough sanctions, Tehran would also start to revive its Arak heavy-water reactor after July 7.
As required by the accord, Iran said in January 2016 that it had removed the core of the reactor and filled it with cement.
"From (July 7) onward with the Arak reactor, if you don't operate (according to) the programme and time frame of all the commitments you've given us, we will return the Arak reactor to its previous condition," said Rouhani.
"Meaning, the condition that you say is dangerous and can produce plutonium," he said, referring to a key potential component of a nuclear bomb. "We will return to that unless you take action regarding all your commitments regarding Arak."
He kept the door open to negotiations, saying Iran would again reduce its stockpile of enriched uranium below the 300-kg limit set by the pact if Britain, France, Germany, Russia and China honoured their deal pledges.
Iran will gain nothing by departing from the terms of the deal, the French foreign ministry cautioned on Wednesday.
"Putting (the deal) into question will only increase the already heightened tensions in the region," ministry spokesman Agnes von der Muhll told reporters in a daily briefing.
Tensions between Washington and Tehran have escalated since Trump pulled Washington out of the pact in May 2018 and acted to bar all international sales of Iranian oil, the Islamic Republic's economic lifeblood.
Iranian Foreign Minister Mohammad Javad Zarif denies that Iran is in violation of the nuclear accord by exceeding the cap on low-enriched uranium, saying Iran is exercising its right to respond after the U.S. withdrawal.
The nuclear accord lifted most global sanctions against Iran in return for curbs on its uranium enrichment capacity.
It aimed to extend the time Tehran would need to produce a nuclear bomb, if it chose to, from roughly 2-3 months to a year.
Iran's main demand - in talks with the European parties to the deal and as a precondition to any talks with the United States - is to be allowed to sell its oil at the levels that prevailed before Trump left the deal and restored sanctions. (Additional reporting by Parisa Hafezi in Dubai, John Irish and Sudip Kar-Gupta in Paris, Jonathan Landay and David Alexander in Washington Writing by Michael Georgy Editing by Mark Heinrich and Alistair Bell)
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Is Canadian Pacific Railway Limited's (TSE:CP) CEO Paid Enough Relative To Peers?
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In 2017 Keith Creel was appointed CEO of Canadian Pacific Railway Limited (TSE:CP). First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Canadian Pacific Railway
At the time of writing our data says that Canadian Pacific Railway Limited has a market cap of CA$43b, and is paying total annual CEO compensation of CA$12m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$1.5m. When we examined a group of companies with market caps over CA$10b, we found that their median CEO total compensation was CA$9.0m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
Thus we can conclude that Keith Creel receives more in total compensation than the median of a group of large companies in the same market as Canadian Pacific Railway Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Canadian Pacific Railway has changed from year to year.
On average over the last three years, Canadian Pacific Railway Limited has grown earnings per share (EPS) by 18% each year (using a line of best fit). In the last year, its revenue is up 12%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Most shareholders would probably be pleased with Canadian Pacific Railway Limited for providing a total return of 89% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We examined the amount Canadian Pacific Railway Limited pays its CEO, and compared it to the amount paid by other large companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want tocheck for free if Canadian Pacific Railway insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out thisfreelist of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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How Much Are Bar Harbor Bankshares (NYSEMKT:BHB) Insiders Spending On Buying Shares?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sellBar Harbor Bankshares(NYSEMKT:BHB), you may well want to know whether insiders have been buying or selling.
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Bar Harbor Bankshares
Over the last year, we can see that the biggest insider purchase was by Director Scott Toothaker for US$193k worth of shares, at about US$24.13 per share. So it's clear an insider wanted to buy, at around the current price, which is US$25.81. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Bar Harbor Bankshares share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 25104.88 shares for US$614k. But they sold 5900 for US$159k. Overall, Bar Harbor Bankshares insiders were net buyers last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.0% of Bar Harbor Bankshares shares, worth about US$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
It doesn't really mean much that no insider has traded Bar Harbor Bankshares shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Bar Harbor Bankshares and we see no evidence to suggest they are worried about the future. Along with insider transactions, I recommend checking if Bar Harbor Bankshares is growing revenue. This free chart ofhistoric revenue and earnings should make that easy.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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'I was terminated': Bruce Linton ousted from Canopy Growth
Canopy Growth Corp. (WEED.TO)(CGC) co-chief executive and chairman Bruce Linton has been abruptly ousted from his role and board seat at the world’s largest cannabis company.
The Smiths Falls, Ont.-based company’s president and co-CEO Mark Zekulin will step in as sole CEO effective immediately, and begin a search for new leadership.
Rade Kovacevic, who currently leads Canadian operations and recreational strategy at the company, will become Canopy Growth’s president. John Bell, a director at the company, has been appointed chairman.
"Creating Canopy Growth began with an abandoned chocolate factory and a vision," said Linton in a news release. "The board decided today, and I agreed, my turn is over.”
Zekulin has been with Canopy Growth since its inception. However, Linton is better known as the face of the company, and in large part the legal cannabis industry.
His departure comes on the heels of blunt comments from the chief executive of Constellation Brands Inc. (STZ), which has a 38 per cent stake in Canopy Growth with the option of acquiring a majority in the future.
Speaking on a conference call with analysts on Friday, Bill Newlands said he was“not pleased with Canopy's recent reported year-end results.”Canopy Growth reported a net loss of $670 million for full-year fiscal 2019, more than 12 times the $54 million booked in the same period a year ago.
Newlands said his company remains happy with its investment in the cannabis space, in which it sees “long-term potential.”
“While Canopy will never be the same without Bruce, the team and I look forward to continuing to do what we have done for the past six years: investing in world-class people, infrastructure and brands, and always seeking to lead through credibility and vision," Zekulin added in the release.
"I personally remain committed to a successful transition over the coming year as we begin a process to identify new leadership that will drive our collective vision forward. I know the company will continue to thrive as the Canopy story continues on for years to come."
New York-listed Canopy Growth shares fell 5.66 per cent to US$37.90 at 8:07 a.m. ET on Wednesday.
Speaking on CNBC’s Squawk Box, Linton said his departure was related to the closing of Constellation Brands’ $5 billion investment in Canopy Growth, which ignited unprecedented investor interest in the sector when it was announced last August.
“A condition of that closing was the board had to be reconfigured. About eight months and two days later, I think the board decided they wanted a different chair and a different co-CEO. I’m out effective immediately,” he said. “I was terminated.”
Newlands and Constellation Brands CFO David Klein serve as members of Canopy’s board of directors.
“We fully support the decision made by Canopy Growth’s Board of Directors to appoint Mark Zekulin as the company’s sole CEO. Mark has played an integral role in the company’s success since its inception, including managing all aspects of the company’s day-to-day operations,” a Constellation Brands spokesperson toldYahoo Financein a statement.
“He is committed to helping ensure a successful transition, as Canopy begins a process to identify a leader to drive the company’s vision going forward. The future of Canopy Growth remains very bright and we look forward to the company’s continued success for many years to come.”
Cowen analyst Vivien Azer said the depth of Canopy Growth’s recent losses exceeded her expectation. She anticipates new leadership will be a positive for the company.
“We’re not surprised by this move,” she wrote in a note to clients on Wednesday. “While we commend Linton for his vision in establishing the world's leading cannabis company, we believe new leadership will be a welcome change.”
Azer said she does not expect Zekulin’s transition to sole CEO to be disruptive due to his long-time role at the company. She maintains an “outperform” rating on Canopy Growth shares with a target price of $82.
Canopy Growth reported revenue of $94.1 million in the quarter ended March 31, up from $83 million in the fiscal third quarter. The company posted a net loss of $323.4 million, or $0.98 per share, compared with a loss of $61.5 million in the prior period.
The loss was blamed in part on rising operating expenses, mainly from sales and marketing, increased compensation and acquisition-related costs. Analysts expected a net loss of $63.5 million and an adjusted loss of 25 cents a share.
Canopy Growth, Canada’s largest cannabis producer, was founded in 2013. The company has emerged as a global leader in the sector under Linton’s tenure, achieving milestones ahead of peers including a listing on the NYSE and striking a deal with a U.S. cannabis firm ahead of federal legalization in that country.
Linton, known for his laid-back personality, frequently dresses in faded black jeans, a black Canopy Growth t-shirt, and a jacket with a “Hi” lapel pin. He is widely-seen as the cannabis industry’s de facto spokesperson thanks to his candid commentary and leadership role at a company with a market capitalization north of $18 billion.
Linton drew reporters from as far away as China and Denmark to his Tweed-branded retail store in St. John’s, N.L. when he sold the inaugural nationally-legal, non-medical pot purchase in a G7 country on Oct. 17, 2018. He toldYahoo Finance Canadathatfour backup credit cards were hidden under the counterin case the first customer’s payment was declined.
A constant departure from buttoned-down corporate culture, Linton has joked that he buys his suits from the discount retailer Winners and mocked those who indulge in excesses, such as owning a Lamborghini.
“I’ve seen many people with very fancy cars, none of them work here,” he toldYahoo Finance Canadalast December.
Download the Yahoo Finance app, available forAppleandAndroid.
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A Look At TOTAL S.A.'s (EPA:FP) Exceptional Fundamentals
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TOTAL S.A. (EPA:FP) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of FP, it is a financially-healthy , dividend-paying company with an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on TOTAL here.
FP's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that FP manages its cash and cost levels well, which is a crucial insight into the health of the company. FP's has produced operating cash levels of 0.45x total debt over the past year, which implies that FP's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that FP is one of the highest dividend payers in the market, with current dividend yield standing at 5.2%. FP has also been regularly increasing its dividend payments to shareholders over the past decade.
For TOTAL, there are three important factors you should further research:
1. Future Outlook: What are well-informed industry analysts predicting for FP’s future growth? Take a look at ourfree research report of analyst consensusfor FP’s outlook.
2. Valuation: What is FP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether FP is currently mispriced by the market.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of FP? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Ram and Silverado truck battle could mean deep discounts for consumers
Car dealer Stephen Gilchrist has sold Ford, Chevrolet, GMC and Ram pickups in Texas truck country for more than two decades.
His rule of thumb was: "A Ford guy is a Ford guy, a Chevy guy is a Chevy guy and a Ram guy is a Ram guy," he said.
Not anymore.
“I’ve had more people call me looking at Ram for the 12-inch infotainment screen or looking at GMC for the MultiPro tailgate," said Gilchrist, dealer operator of Gilchrist Automotive in Dallas-Fort Worth. "It’s the most I’ve seen people willing to jump from brand to brand and it’s for these unique features rather than the payload and towing ability."
The intense competition in the Detroit Three's Truck Wars has led to deep discounts, an unusual move given that two of the three have redesigned pickups out. Typically, automakers resist markdowns on newly designed vehicles because such rebates erode profits.
But in a frenzied fight for a piece of the highly profitable pickup segment, and with Ford's F-Series secure as the top seller, General Motors' Chevrolet Silverado and Fiat-Chrysler's Ram are jockeying for the No. 2 slot. That means Detroit automakers appear willing to keep using price cuts to lure new consumers, dealers say.
"You’re always told your most expensive customer is your conquest customer,” said Gilchrist, referring to buyers who switch brands.
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Fiat Chrysler released its second-quarter sales Tuesday. Sales of the Ram rose nearly 38.5% to 179,454 in the quarter compared with the same period a year ago. That makes Ram the second-top selling pickup in the United States behind the Ford F-Series, which has been the leader for 42 years.
The Ram this year has led the Chevrolet Silverado, which had historically held the No. 2 spot. Ram has been beating Chevy every quarter this year. Ford reports its second-quarter sales Wednesday.
GM reported Tuesday that Silverado quarterly sales tumbled 9% to 155,529 and sales of the GMC Sierra slid 4.3% to 56,857 in the second quarter compared with a year earlier.
Through June, Ram sales are up 28% to 299,480, but Silverado sales are down 12.2% to 255,463.
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“Ram has pulled out a lot of stops with incentives to grab market share — and it’s working — while Silverado is disadvantaged in launch mode," said Michelle Krebs, executive analyst for AutoTrader. "Still, the new Ram 1500 has garnered critical acclaim, and the brand has been on an upward trajectory in terms of reputation."
For the automaker's total sales year-to-date, FCA reported a dip of 2% to 1.1 million vehicles compared with the first half of 2018. GM reported a 4.2% decline in total sales to 1.4 million vehicles sold..
Among other automakers reporting sales Tuesday, Nissan Group, which includes its luxury brand Infiniti, reported year-to-date sales down 8.2% to 717,036. Likewise, Toyota Motors North America, which includes Lexus, reported its sales through June down 3.1% to 1.15 million. Subaru reported its sales are up 5.2% to 339,525 through June. American Honda reported, through June, its sales dropped 1.4% to 776,995.
GM isn't going down without a fight, telling Reuters last week, “We will defend our franchise and we will do it the right way,” said Barry Engle, head of GM’s North American operations.
Ford reports its quarterly sales Wednesday. But data from Cox Automotive show that through May, the F-series has dominated sales over GM and FCA pickups and sold for a higher price. The average transaction price of the Silverado was $48,498 in the first five months compared to $49,182 for the Ram. The F-Series brought in $52,227, said Cox.
Ford's truck manager told Reuters that GM's and FCA's heavy discounting of newly designed pickups is "unprecedented" and while Ford will defend its top spot, it won't sacrifice profits.
During the past month, many dealers have offered up to 30% off the list price for Ram, Chevrolet Silverado, GMC Sierra and Ford F-series, Reuters reported. GMC touted June as “Truck Month" in its advertising, a wink to consumers that price cuts lay ahead.
Gilchrist said at the end of June, he was offering a 20% discount on the list price of 2019 Ram 1500 pickup.
Market research firm JD Power said discounts on light-duty pickups last month averaged $5,250, 11% higher than the year-to-date average of $4,726.
In June, according to an analysis by Cox Automotive Rates & Incentives, each of the Detroit Three offered significant guaranteed cash incentives to help move their full-size pickups. Ram led with an average guaranteed cash incentive of $4,198. Ford average guaranteed cash is lowest at $2,412, and Chevy is in the middle at $3,377 on the Silverado.
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The Cox analysis shows Ford and Ram offering slightly less than they did in June 2018. But Chevrolet nearly doubled the amount of guaranteed cash offered compared with June of last year.
But Ram is not letting up, said Cox, which reported that during the lead-up to the long Fourth of July weekend, Ram has been offering aggressive deals of 15% to 20% of the sticker price on pickups. Until now, only GM brands were focused on percentage off sticker-type deals, said Cox analysts.
The hottest selling vehicles of 2019:Ram, Porsche, Subaru top the list
Pickup sales are crucial for the Detroit automakers. GM, for example, needs to deliver about $10 billion in free cash flow, a measure of how much cash GM generates after accounting for capital expenditures, in the remaining quarters to hit its full-year target. That's challenging as consumer demand sputters and sales are plummeting in China, the world's largest car market.
Analysts say throwing too much cash on the hood to chase a sales ranking is less important than maintaining profit margins.
"It is not crucial for Silverado to be No. 2," said AutoTrader's Krebs. "What is crucial is for GM to make as much profit as possible on its pickup trucks as it invests in future technologies like electric vehicles, autonomous vehicles and mobility services. Today’s sales and profits will fuel the future and GM has aggressive plans."
Engle said Silverado sales numbers, in part, reflect an effort to build more higher-margin Sierras aimed at buyers willing to spend more on a luxury truck.
But having more of the high-volume, lower-priced models in the mix will spike Silverado sales, dealers and industry observers said.
According to CarGurus, shopper interest in the Silverado 1500 took a dip in May, but the Ram Classic has had consistent interest through the year. It said interest in the Ram 1500 spiked around the time the Silverado started to dip, and affordability was a driving factor in its results.
"Ram's higher interest levels and increased sales numbers are lifted by both the addition of the affordable Ram Classic trim, as well as the technology in the other Ram trim levels such as the 12-inch infotainment screen and safety features such as drive lane assist and smart cruising," said George Augustaitis, CarGurus director of industry analytics.
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At George Matick Chevrolet in Redford, demand for the 2019 Silverado is strong, said General Sales Manager Sam Vitale. Most customers buy the crew cab and LT crew cab variants on 24-month to 36-month leases with a price tag in the high $40,000 to low $50,000 range.
Competition against Ram is fierce, said Vitale, but Matick has won some business from former Ram owners. In June, Matick Chevrolet sold about 50 of the new body-style 2019 Silverado pickups, which Vitale said will incrementally increase each month. It has about 250-300 pickups in inventory and in-transit as of July 1, said Vitale. He did not have June 2018 sales available for comparison.
Vitale said that GM has assured dealers it will maintain its incentives. To beat Ram, he said, GM must offer broad incentives across all eight trim levels.
“What we’re most excited about is GM putting the incentives on the crew cabs now,” said Vitale. “We always had our best deals on the double-cab pickups, so having that incentive on the crew cab, which has the bigger back seat, is how we’re best going to compete.”
Gilchrist said he believes Ford, Ram, Chevrolet and GMC are still wrestling with the right incentive play. Ram has been "very aggressive," he said. Meanwhile, the Silverado and Sierra are "incredible trucks," but Gilchrist has had trouble getting the right inventory levels and mix of trims to be competitive.
Gilchrist said GM has assured him the production mix is fixed, so, "Now it’s just getting them in stock," he said.
Until then, he's adjusting to the new world of Truck Wars where brand loyalty is as swift as the next big spiff.
“It’s an interesting time to be a truck dealer," said Gilchrist. "Ram’s going to continue to be aggressive, GMC and Chevrolet will get their inventory mix fixed and Ford will stay on their game. So it’s a good time to be in the truck market as a consumer.”
Contact Jamie L. LaReau: 313-222-2149 [email protected]. Follow her on Twitter@jlareauan. Read more onGeneral Motorsand sign up for ourautos newsletter.
This article originally appeared on Detroit Free Press:Ram and Silverado truck battle could mean deep discounts for consumers
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Boasting A 15% Return On Equity, Is Antevenio, S.A. (EPA:ALANT) A Top Quality Stock?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Antevenio, S.A. (EPA:ALANT).
Our data showsAntevenio has a return on equity of 15%for the last year. Another way to think of that is that for every €1 worth of equity in the company, it was able to earn €0.15.
View our latest analysis for Antevenio
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Antevenio:
15% = €2.4m ÷ €16m (Based on the trailing twelve months to December 2018.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all earnings retained by the company, plus any capital paid in by shareholders. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, all else equal,investors should like a high ROE. That means it can be interesting to compare the ROE of different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As you can see in the graphic below, Antevenio has a higher ROE than the average (11%) in the Media industry.
That's clearly a positive. In my book, a high ROE almost always warrants a closer look. One data point to check is ifinsiders have bought shares recently.
Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
While Antevenio does have a tiny amount of debt, with debt to equity of just 0.016, we think the use of debt is very modest. Its very respectable ROE, combined with only modest debt, suggests the business is in good shape. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREEvisualization of analyst forecasts for the company.
Of courseAntevenio may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Why Fox Factory Holding Corp. (NASDAQ:FOXF) Could Be Worth Watching
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Fox Factory Holding Corp. (NASDAQ:FOXF), which is in the auto components business, and is based in United States, saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Fox Factory Holding’s outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for Fox Factory Holding
Fox Factory Holding appears to be overvalued by 22.64% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$82.86 on the market compared to my intrinsic value of $67.56. This means that the buying opportunity has probably disappeared for now. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Fox Factory Holding’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Fox Factory Holding’s earnings over the next few years are expected to increase by 42%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder?FOXF’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe FOXF should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor?If you’ve been keeping an eye on FOXF for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for FOXF, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Fox Factory Holding. You can find everything you need to know about Fox Factory Holding inthe latest infographic research report. If you are no longer interested in Fox Factory Holding, you can use our free platform to see my list of over50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Have Insiders Been Selling The First Bancorp, Inc. (NASDAQ:FNLC) Shares?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inThe First Bancorp, Inc.(NASDAQ:FNLC).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for First Bancorp
In the last twelve months, the biggest single sale by an insider was when the CRA Officer & Compliance Officer, Susan Norton, sold US$91k worth of shares at a price of US$30.29 per share. So what is clear is that an insider saw fit to sell at around the current price of US$26.34. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
All up, insiders sold more shares in First Bancorp than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Over the last three months, we've seen a bit of insider selling at First Bancorp. Director Katherine Boyd sold just US$44k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that First Bancorp insiders own 6.9% of the company, worth about US$20m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. Recent insider selling makes us a little nervous, in light of the broader picture of First Bancorp insider transactions. But we do like the fact that insiders own a fair chunk of the company. To put this in context, take a look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
But note:First Bancorp may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Altamira Strengthens Board with Appointment of Andrei Santos
Vancouver, British Columbia--(Newsfile Corp. - July 3, 2019) -Altamira Gold Corp. (TSXV: ALTA) (FSE: T6UP) (OTC Pink: EQTRF),("Altamira" or the "Company") is pleased to announce the appointment of Andrei Santos to the board of directors.
Mr. Santos is a Lawyer with more than 18 years of post-qualification experience, and currently provides financing, trading and operational expertise in his capacity as an Executive Director of Salinas Gold Mineração Ltda, a gold producer in Brazil that has brought a number of small mines into profitable production and currently employs 220 people and produces 3,000 oz of gold per month. The anticipated commissioning of a new 8,000t/d processing plant should lift that total to 6,000oz of gold per month from September 2019.
He began his career in the administrative side of the Federal and Judicial Courts of Brazil, before moving on to Veirano Advogados Associados, which is one of the largest law firms in South America, where he gained international knowledge and exposure. He specialized in the mining sector providing services for the largest companies in Brazil. Since moving into industry, he has had extensive operational experience as Director and General Manager of Ashburton Minerals Ltd. and Cleveland Mining Company Ltd.
He also serves as director of Phoenix Intermediações Financeiras LTDA. where he is responsible for gold sales for over 20 producing Mines in Brazil, and is expected to export over 70,000oz of gold by end-2019.
Mike Bennett, President & CEO, commented, "We are extremely pleased that Andrei has agreed to join our Board. His energy, legal background and depth of experience with gold mining operations in Brazil will provide Altamira with invaluable experience as we continue to explore small-scale production opportunities and seek joint-venture partners for our extensive portfolio in the emerging Alta Floresta / Juruena belt."
About Altamira Gold Corp.
The Company is focused on the exploration and development of gold projects within western central Brazil. The Company holds 11 projects comprising approximately 300,000 hectares, within the prolific Juruena gold belt which historically produced an estimated 7 to 10Moz of placer gold. The Company's advanced Cajueiro project has an NI 43-101 compliant resources of 8.64Mt @ 0.78 g/t Au (for 214,000oz) in the Indicated Resource category and 9.53Mt @ 0.66 g/t Au (for 204,000oz) in the Inferred Resource category and an additional 1.37Mt @ 1.61 g/t Au in oxides (for 79,000oz in saprolite) in the Inferred Resource category.
On Behalf of the Board of Directors,
ALTAMIRA GOLD CORP.
"Michael Bennett"
Michael BennettPresident & CEO
Tel: 604.676.5660Toll-Free: [email protected]
Neither TSX Venture Exchange nor it Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Except as required by law, we do not undertake to update these forward-looking statements.
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/46045
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How safe is it to drink collagen powder?
Does drinking collagen powder actually do anything? (Photo: Getty Images) Do a quick scroll through Instagram , and chances are you’ll see a slew of wellness and fitness personalities touting the benefits of collagen peptide powder and adding it to their smoothies. So what exactly is collagen and why are some people clamoring for it? “Collagen is a structural protein made up of amino acids that's found naturally in the connective tissue of our bodies, such as our skin, hair, muscles, bones and even blood vessels,” Keri Gans, registered dietitian nutritionist and author of The Small Change Diet , tells Yahoo Lifestyle. “It is essentially the ‘glue’ that holds our body together, enables us to move and find stability.” Adds Joshua Zeichner , MD, director of cosmetic and clinical research in Mount Sinai Hospital’s department of dermatology, “Collagen is the main protein in our skin that provides structure and support.” And it’s that structure and support that plays a role in keeping skin looking smooth, firm, and wrinkle-free. But collagen production slows down as we age, which is why many people are turning to consuming collagen peptides (also known as hydrolyzed collagen) in the hopes that the supplements will reverse or at least stave off skin aging . “The hope for ingestible collagen is that it helps strengthen our skin to improve the appearance of fine lines and wrinkles, as well as enhance skin texture,” Zeichner tells Yahoo Lifestyle. But does consuming collagen powder actually do anything? Possibly. “The true benefit of ingestible collagen is unclear,” says Zeichner. “Since collagen is a large molecule, it is broken down by our gut into smaller pieces. The smaller pieces and individual amino acids may serve as building blocks for new collagen production. I look at ingestible collagen similar to the way I look at eating a high-protein meal.” Adds Gans: “Many individuals believe the numerous health claims in regards to collagen. There are claims that it can reduce constipation, improve gut health, improve sleep, decrease anxiety, reduce joint pain, eliminate food cravings and has anti-aging properties.” Story continues What are the benefits? Although more research is needed, there are some studies that have looked into collagen supplements’ potential benefits — particularly for easing joint pain. “Some preliminary research suggests collagen supplements may help reduce knee pain among people with osteoarthritis , and help reduce joint deterioration in athletes ,” says Gans. While it’s no fountain of youth, there is some good news for people who are consuming collagen hoping to improve their skin and hair. “One small study revealed collagen supplements improved skin elasticity, but didn't do any more than a placebo to improve skin moisture and evaporation,” says Gans. A 2019 review of several studies showed that collagen supplements increase skin elasticity and hydration. It may also help with brittle, fragile nails. A small 2017 study in the Journal of Cosmetic Dermatology found that consuming collagen peptides daily for 24 weeks helped prevent nail breakage, increase nail growth, and improved the appearance of brittle nails. How safe is it? Collagen supplements are considered safe for the most part — as Zeichner puts it: “The only harm is to your pocketbook, as many of the collagen powders are pricey.” However, it’s important to read up on the source of the supplement’s main ingredient. The collagen found in supplements is typically sourced from cow (bovine) hides, as well as chicken cartilage, but in some cases they can be made from fish or eggs, which can be dangerous for people with those food allergies . “As with any supplement, one should read the label closely to make sure it doesn’t include any allergens that they are sensitive to,” suggests Gans. “Also, if on any medications a person should discuss with their doctor or a registered dietitian before implementing in their daily diet.” If you’re interested in trying collagen peptides powder, your best bet is to stick with a well-known brand, such as Vital Proteins . As Gans points out: “Like all supplements, collagen is not closely regulated by the Food and Drug Administration — therefore, one should choose nationally-recognized brands or store brands from a retailer they trust. Consumers can also look for a seal from a third-party certifier, such as NSF International , UL or USP .” You may also want to start with unflavored collagen peptide powder, which you can add to smoothies, as well as hot and cold beverages like coffee, without altering the flavor. Read more from Yahoo Lifestyle: Joanna Gaines’ ‘tried and true essentials’ include a $5 beauty must-have for summer Korean beauty expert Alicia Yoon shares her 1-minute skin care hack for smoother lips Get fuller-looking lips in less than a minute with this lipstick trick Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day.
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Want to Be a Pro-Level Travel Hacker? Here's How to Start
You’re a few minutes away from dramatically reducing your travel costs.
Image source: Getty Images
I’ve always wanted to travel -- but never wanted to burn through my savings. Seeing the world seemed out of reach for several years.
Then I learned about travel hacking and how savvy consumers were practically traveling for free. I began using the same strategies, and last year I took two international trips for under $500 apiece. That includesallmy expenses, including food, flights, and lodging.
The most challenging part of travel hacking is taking the first step. So I’m going to explain everything you need to know to get started.
We’ll start with the definition of travel hacking.
Travel hacking is the art of earning as many airline, hotel, and/or credit card points as possible and paying for your travel with those points.
The traditional way to do this is to join an airline or hotel loyalty program. You earn points each time you use that company, and eventually cash in those points for free flights or hotel stays. But that’s very slow for all but the most frequent travelers.
Here’s a much faster travel hacking method:
1. Open a travel credit card.
2. Earn points with that card through a sign-up bonus, a high rewards rate, or both.
3. Use points to book your travel.
Many travel hackers open newcredit cardsregularly to earn more sign-up bonuses and maximize their points. This is trickier to manage, but it’s a good way to earn points quickly.
The main challenge with travel hacking is deciding which credit cards to apply for. We’ll get to that in a minute. First, there are some things you need before you get started.
Travel hacking isn’t for everybody. You don’t need a large income to do it, but there are some prerequisites:
• Good to excellent credit (670 or higher)-- To get approved for any of the best credit cards, you typically need at least a credit score of 670. A score above 700 is even better. If you’re not there yet, focus onimproving your credit scorefirst.
• No credit card debt-- The only way travel hacking works is if you pay your credit card bill in full every month. Otherwise, interest will cost you more than you earn through travel points.
• A record of your regular expenses-- The main reason to track expenses is to avoid spending too much. But for travel hacking, it’s also important to know how much you spend per month so you can calculate whether your normal spending will be enough to reach a card’s sign-up bonus.
Now it’s time for the fun part -- picking out and applying for a new credit card (I realize I may have a different definition of fun than most people).
There’s a wide world of travel cards out there, so let’s narrow them down. First things first: don’t start with an airline or hotel card unless you use that brand all the time. Since these cards only earn points with that brand, they have limited redemption options.
You’re better off with a card that lets you redeem points at a fixed rate towards any travel purchase or lets you transfer points to a variety of airline and hotel partners. There are cards that offer both redemption options in these rewards programs:
• Chase Ultimate Rewards®
• American Express Membership Rewards®
• Capital One Venture® Rewards
• Citi ThankYou® Rewards
You can find some great options on our list of thetop travel credit cards. When getting your first travel card, look for these features:
• Affordable annual fee-- This will depend on your budget, but $100 or less is a good cutoff point for a first travel card.
• A sign-up bonus within your budget-- Compare your monthly expenses to the spending minimum on a card’s sign-up bonus to verify that you can reach it without overextending yourself.
• Rewards rate-- It helps to earn extra points on your spending, so shop around for a card that earns more points per dollar on your usual spending categories.
After you’ve gotten a card, make sure you spend enough to earn the bonus. It could already be enough to get you a free flight.
So you have your travel card and you earned the bonus. What’s next?
From here, it’s all about setting your travel goals and figuring out how to reach them with credit cards.
Let’s say you want to take a vacation to a tropical island within a year. But you know you won’t earn enough points from your normal spending on your current card. In that case, you may decide to get one airline and one hotel credit card and use their respective bonuses to pay for your flight and lodging.
Maybe you don’t have any specific goals in mind yet. That’s fine, too. You could keep using your travel card to rack up points. Or you could get new cards when a bonus offer catches your eye. Then you’ll have points to spare when you need them.
There are only two keys to making travel hacking work:
• Using a travel credit card for all your expenses.
• Paying the bill in full every month.
As long as you do those two things, you can dive into travel hacking as much as you want, whether that means sticking with one card or having a dozen.
The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. We’re firm believers in the Golden Rule. If we wouldn’t recommend an offer to a close family member, we wouldn’t recommend it on The Ascent either. Our number one goal is helping people find the best offers to improve their finances. That is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
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Did You Miss Bank First's (NASDAQ:BFC) Impressive 241% Share Price Gain?
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When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. Long termBank First Corporation(NASDAQ:BFC) shareholders would be well aware of this, since the stock is up 241% in five years. On top of that, the share price is up 22% in about a quarter.
See our latest analysis for Bank First
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Over half a decade, Bank First managed to grow its earnings per share at 16% a year. This EPS growth is lower than the 28% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Thisfreeinteractive report on Bank First'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Bank First, it has a TSR of 273% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!
It's nice to see that Bank First shareholders have received a total shareholder return of 34% over the last year. Of course, that includes the dividend. That's better than the annualised return of 30% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid.
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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ETF Asset Report of Second-Quarter 2019
The markets were mostly upbeat in the second quarter of 2019, thanks to a dovish Fed. However, global stocks skidded in May due to renewed trade tensions and the emergence of recessionary fears, only to go on to record the best performance in June in a decade. Inflows to U.S.-listed ETFs were outstanding in June as well (read: Top ETF Events of Wall-Street's Decade-Best June).
Let’s see how investors reacted to this situation and parked their money in the second quarter. The data is from etf.com (as of Jun 30, 2019).
Treasuries Rule
iShares Short Treasury Bond ETFSHV was the top-most asset gainer, amassing about $5.1 billion in assets. As flight-to-safety plays dominated global markets in May and the Fed remained dovish, the benchmark 10-year U.S. Treasury note yield fell to 2% at June-end. Some key parts of the yield curve are inverted and the 10-year treasuries bond yield fell below that of one-year. Naturally, investors rushed to short-term bond ETFs for higher yields and lesser interest rate risks.
Investors poured money intoiShares 20+ Year Treasury Bond ETFTLT ($3.80 billion),iShares 7-10 Year Treasury Bond ETFIEF (about $3.62 billion),iShares Core U.S. Aggregate Bond ETF AGG($3.45 billion) andiShares U.S. Treasury Bond ETFGOVT ($2.81 billion in assets) (read: 10-Year Yield Below One-Year: Play Leveraged Bond ETFs).
Developed Market Stocks Win Too
A dovish Fed means more months of cheap money inflow and an equity rally.iShares Russell 1000 Value ETF IWD,iShares Core MSCI EAFE ETF IEFA,iShares Russell 1000 GrowthETFIWF andVanguard S&P 500 ETFVOO attracted about $4.70 billion, $4.61 billion, $4.05 billion and $3.94 billion, respectively, in the quarter.
Low Volatility Prevails
Though the U.S. market was in great shape in June, this did not take the spotlight away from low-volatility products. These apparently safe products, which normally do not surge in a bull market but offer protection in troubled times, were much in demand in the second quarter. Geopolitical tensions in the Middle East, tariff worries, overvaluation worries — all have contributed to investors’ interest in low-volatility products.iShares Edge MSCI Min Vol U.S.A. ETF USMVhas attracted about $2.35 billion in assets in the second quarter (read: 3 Low-Volatility Stocks & ETFs to Buy).
Emerging Markets Lose
Both equities and bond ETFs —iShares MSCI Emerging Markets ETF EEMandiShares JP Morgan USD Emerging Markets Bond ETF EMB— lost about $2.28 billion and $1.91 billion in assets, respectively, in the quarter, probably due to US-China trade tensions.
Sheen for Small-Caps Fade
Small-caps are under pressure. Despite renewed tariff tensions in the second quarter, the benchmark Russell 2000 index of small companies underperformed the S&P 500, the Dow Jones and the Nasdaq. Margin pressure is weighing on the small-cap segment. Barclay’s now estimates that small-caps will post EBITDA growth of 2% this year, down from its estimated 5.5% growth earlier this year. About $1.73 billion in assets bled fromiShares Russell 2000 ETF IWM(read: Small-Cap Q1 Earnings Dull: 5 Better-Performing Sector ETFs).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportiShares Russell 2000 ETF (IWM): ETF Research ReportsiShares J.P. Morgan USD Emerging Markets Bond ETF (EMB): ETF Research ReportsiShares MSCI Emerging Markets ETF (EEM): ETF Research ReportsiShares Edge MSCI Min Vol USA ETF (USMV): ETF Research ReportsiShares Core U.S. Aggregate Bond ETF (AGG): ETF Research ReportsiShares Russell 1000 Value ETF (IWD): ETF Research ReportsiShares Russell 1000 Growth ETF (IWF): ETF Research ReportsVanguard S&P 500 ETF (VOO): ETF Research ReportsiShares Short Treasury Bond ETF (SHV): ETF Research ReportsiShares 7-10 Year Treasury Bond ETF (IEF): ETF Research ReportsiShares U.S. Treasury Bond ETF (GOVT): ETF Research ReportsiShares 20+ Year Treasury Bond ETF (TLT): ETF Research ReportsiShares Core MSCI EAFE ETF (IEFA): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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It's time small business owners wrote their own declaration of independence
Small business owners: King George III had nothing on you as a tyrant. When the colonists in America rebelled against that despotic English king, they were fighting to take charge of their own lives.
But as a small business owner, are you really allowing yourself to be free or are you enslaved by your business? Here are the tell-tale signs:
—You’re constantly looking at email.It’s the first thing you check in the morning and the last thing at night. But you need to make sure there are no emergencies—or even issues—needing your immediate attention, right?
—You’re never fully present with family or friends.Your attention is always divided, whether at a child’s graduation, a spouse’s birthday party, a friend’s barbecue. But you’ve got to think about what needs doing at the office because there’s just not enough time in the week, right?
—You never take a vacation.After all, your business depends on you, so if you leave, everything will fall apart, right?
—You refuse to hire anyone.No one else can do it the way you want it, right?
—You’re constantly posting to social media.After all, that’s how you get customers, right?
—You’re at the mercy of one or two big customers and they’re tyrants.But they bring you the most money, so you have to do what they want, right?
—You only have one or two suppliers.But they’re dependable and have the right prices, so you don’t need to look around, right?
—You’re at the mercy of a mercurial presidentwho suddenly slaps tariffs on products you import, export or need. But, you vote for him because you think he’s better for small business, right?
—You’re not contributing to your retirement.Instead, you’re plowing all your profits into your business. But some day you’ll be able to sell it, right?
Well, it’s time for your own Small Business Declaration of Independence. It’s time to decide that your business doesn’t own you—you own your business. That means taking back control of your life and your time. It means thinking strategically, not reacting emotionally. And it means taking care of your own health—physically, financially, socially.
How do you do that?
—Establish a schedule and stick to it.Give yourself business hours, so you know when to quit. And take a day off once a week.
—Start your day fresh.If the first thing you do every morning is check your phone for email it means your adrenaline is pumping and heart racing before you’re even out of bed. Take a few moments in the morning to read, say a prayer, think about your day, listen to music.
More:‘Mompreneurs’: The best small business tips and ideas for moms
More:Be your own best boss: Take a vacation from your small business
More:Fireworks sales to top $1.3 billion in 2019
—Limit your screen time.Too much screen time isn’t just bad for children, it’s bad for you. Make sure you are spending a few hours each day NOT looking at any screen—not your computer, phone, TV. What will you do instead? How about talking to other people, exercising, cooking, reading, going for a walk? In other words, being a human being?
—Give yourself some family and friends time and some “me time.”Take care of your relationships and yourself, so you know what you’re working for.
—Take a vacation.Your business will not collapse if you’re gone for a week—or two. But your marriage might.
—Stop checking your phone.The average American checks their phone every 10 minutes. That’s just nuts. Limit yourself to no more than once an hour when you’re not at the office.
—Vote intelligently.Choose candidates who understand that their decisions (and their tweets) have implications for real people and real businesses.
—Save for retirement.Reality check: You may never be able to sell your business. So invest in your retirement. If you don’t have enough saved for retirement, you’ll be working the rest of your life.
And hey, try to exercise and eat healthfully, too.
—
Rhonda Abrams is the author of “Successful Business Plan: Secrets & Strategies,” the best-selling business plan guide of all time, just released in its seventh edition. Connect with Rhonda onFacebook,Instagramand Twitter@RhondaAbrams. Register for Rhonda’s free business tips newsletter atwww.PlanningShop.com
This article originally appeared on USA TODAY:It's time small business owners wrote their own declaration of independence
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Boasting A 30% Return On Equity, Is Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) A Top Quality Stock?
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Solaris Oilfield Infrastructure, Inc. (NYSE:SOI).
Our data showsSolaris Oilfield Infrastructure has a return on equity of 30%for the last year. That means that for every $1 worth of shareholders' equity, it generated $0.30 in profit.
Check out our latest analysis for Solaris Oilfield Infrastructure
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Solaris Oilfield Infrastructure:
30% = US$48m ÷ US$320m (Based on the trailing twelve months to March 2019.)
It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, as a general rule,a high ROE is a good thing. That means it can be interesting to compare the ROE of different companies.
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. Pleasingly, Solaris Oilfield Infrastructure has a superior ROE than the average (9.2%) company in the Energy Services industry.
That's what I like to see. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is ifinsiders have bought shares recently.
Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Solaris Oilfield Infrastructure has a debt to equity ratio of just 0.00057, which is very low. The combination of modest debt and a very impressive ROE does suggest that the business is high quality. Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities.
Return on equity is one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Netflix Rises Midday After It Scores Deal at Iconic UK Studio
Investing.com - Netflix (NASDAQ:NFLX) is determined to dominate the TV and movie sector and it may have just landed a deal that will help it get there.
The streaming service made a deal with Shepperton Studios to set up a permanent production space there, The Guardian reported.
Shepperton Studios, which has created films like "Alien" and "Mary Poppins Returns," will make up about half of Netflix’s $13 billion annual production budget in the UK.
The studio space will allow Netflix to continue to build out its own films and shows.
The first production at Shepperton Studios will be "The Old Guard," starring Charlize Theron.
Netflix was up 1.4% in midday trade on Wednesday.
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One Metric To Rule Them All: Urban Edge Properties (NYSE:UE)
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Urban Edge Properties is a US$2.2b mid-cap, real estate investment trust (REIT) based in New York, United States. REIT shares give you ownership of the company than owns and manages various income-producing property, whether it be commercial, industrial or residential. The structure of UE is unique and it has to adhere to different requirements compared to other non-REIT stocks. In this commentary, I'll take you through some of the things I look at when assessing UE.
View our latest analysis for Urban Edge Properties
REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities. FFO is a higher quality measure of earnings because it takes out the impact of non-recurring sales and non-cash items such as depreciation. These items can distort the bottom line and not necessarily reflective of UE’s daily operations. For UE, its FFO of US$137m makes up 52% of its gross profit, which means over a third of its earnings are high-quality and recurring.
Robust financial health can be measured using a common metric in the REIT investing world, FFO-to-debt. The calculation roughly estimates how long it will take for UE to repay debt on its balance sheet, which gives us insight into how much risk is associated with having that level of debt on its books. With a ratio of 8.8%, the credit rating agency Standard & Poor would consider this as aggressive risk. This would take UE 11 years to pay off using just operating income, which is a long time, and risk increases with time. But realistically, companies have many levers to pull in order to pay back their debt, beyond operating income alone.
Next, interest coverage ratio shows how many times UE’s earnings can cover its annual interest payments. Usually the ratio is calculated using EBIT, but for REITs, it’s better to use FFO divided by net interest. This is similar to the above concept, but looks at the nearer-term obligations. With an interest coverage ratio of 2.11x, UE is not generating an appropriate amount of cash from its borrowings. Typically, a ratio of greater than 3x is seen as safe.
In terms of valuing UE, FFO can also be used as a form of relative valuation. Instead of the P/E ratio, P/FFO is used instead, which is very common for REIT stocks. UE's price-to-FFO is 16.05x, compared to the long-term industry average of 16.5x, meaning that it is fairly valued.
As a REIT, Urban Edge Properties offers some unique characteristics which could help diversify your portfolio. However, before you decide on whether or not to invest in UE, I highly recommend taking a look at other aspects of the stock to consider:
1. Future Outlook: What are well-informed industry analysts predicting for UE’s future growth? Take a look at ourfree research report of analyst consensusfor UE’s outlook.
2. Valuation: What is UE worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether UE is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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The Market Isn't Out of the Woods, and That's OK
This year has been a nice surprise for investors thus far, especially given how pessimistic most market participants were coming into 2019. When 2018 closed with a big decline for major stock indexes, fears of a global recession and rising geopolitical and macroeconomic conflict threatened to end the decade-long bull market in U.S. stocks.
Yet just six months later, investors' attitudes about the market have made a complete 180-degree turn. Stock markets are near record highs, and many expect to get support from Washington and the Federal Reserve in the months to come.
Image source: Getty Images.
2018 was a disappointing yearfor investors. TheS&P 500 Index(SNPINDEX: ^GSPC)finished the year down more than 4% even after taking dividend income into account, and theDow Jones Industrial Average(DJINDICES: ^DJI)closed the year with a more-than-3% drop in total return terms. The showing marked the worst performance for major stock indexes in a decade and it came largely because of the swoon that hit the markets during the month of December, which was the worst closing month for the two benchmarks since the Great Depression in the 1930s.
Yet markets have turned around dramatically during the first half of 2019. The S&P 500 is up 18% so far for the year, and the Dow has brought investors nearly a 15% gain. That's the best performance for the first six months of the year since the bull market of the late 1990s.
What's also interesting is how manyothermarkets have seen huge gains:
• Bond prices have been on the rise, with lower interest rates helping to produce a better-than-10% gain for theiShares 20+ Year Treasury Bond ETF.
• Gold prices have soared by more than $120 per ounce, climbing above the $1,400-per-ounce mark for the first time since late 2013.
• Crude oil prices have recovered sharply, going from the mid-to-high $40s last December to around $58 per barrel today.
• Evencryptocurrencies have bounced back.Bitcoin tokens recently tripled to soar above the $12,000 level before giving back some of their ground.
Put all that together, and it's been hard for investors to lose money so far this year.
As exuberant as many financial markets have been so far this year, it's not as though there isn't any risk left in the world.
Trade tensions remain between the U.S. and several key trading partners across the globe. Even though the G-20 meeting that concluded over the weekend brought a commitment between theU.S. and China to resume trade negotiationsalong with temporary reprieve from additional tariffs, numerous major issues remain for the two nations to hammer out before they can reach any full permanent agreement.
On the macroeconomic front, the bond market whipsawed over the past six months as the Federal Reserve abruptly shifted its intended path for interest rates. Late last year, many believed that the central bank would keep raising rates, even if it was at a slightly slower pace. Instead, the threat of an economic reversal toward recession led the Fed to avoid making further rate hikes, and bond market participants are now counting onratecutsin the near futureto keep any slowdown from reaching problematic proportions.
Most importantly, the ways that different markets are reacting to the current situation aren't consistent with each other. Many tie the gains in gold and bitcoin to increased demand forsafe-haven investment assetsthat can act as a store of value even if stocks and bonds come under pressure. Bonds are rising because investors are increasingly skeptical of the ability for the economy to keep expanding, yet the gains in stocks suggest that growth opportunities are still available in the business world.
Many fear that at some point, some of these markets will have to decouple from each other -- and the big question is which one will start to fall first.
For long-term investors, what will happen in the second half of 2019 is no more important than what happened in the first half. Markets will inevitably rise and fall, but over the long haul, the ingenuity and innovation of business entrepreneurs has made the stock market a winning bet. With so manycompanies still leading the way higher, there's no reason to expect that historical fact to stop being true during the rest of this year or further into the future.
More From The Motley Fool
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Dan Caplingerhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
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Factors Likely to Impact Helen of Troy's (HELE) Q1 Earnings
Helen of Troy LimitedHELE is slated to release first-quarter fiscal 2020 results on Jul 9. The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 15.9%. Let’s see how things are placed ahead of the release for this renowned beauty products as well as other personal and home care products player.Aspects Likely to Impact Q1Helen of Troy’s Leadership Brands are yielding and likely to remain an upside in the first quarter. In this context, brands like OXO, Honeywell, Braun, PUR, Hydro Flask, Vicks and Hot Tools are well positioned to enhance market share. Notably, management is on track with investments toward product launches and marketing efforts for Leadership Brands that are likely to boost prospects. Moreover, the company is steadily gaining from growth in online sales and digital marketing efforts. Also, the company’s efforts to streamline supply chain network and boost capabilities of the Beauty and Nutritional Supplements units are encouraging.In spite of these positive factors, Helen of Troy’s performance is exposed to certain headwinds. The company is under pressure from escalated costs stemming from higher tariffs, advertising, freight and transportation. Persistent rise in costs is a threat to the company’s bottom line in the quarter to be reported.Further, management expects adjusted earnings per share to decline in the range of 4-8% in the first half of fiscal 2020. In fact, most of the decline is anticipated to be witnessed in the first quarter, thanks to tough year-over-year comparisons stemming from the cough/cold/flu-related volatility. Additionally, adverse currency fluctuations are likely to weigh on performance in the Beauty and Health & Home categories.
Helen of Troy Limited Price, Consensus and EPS Surprise
Helen of Troy Limited price-consensus-eps-surprise-chart | Helen of Troy Limited Quote
Estimates are UnimpressiveThe Zacks Consensus Estimate for fiscal first quarter earnings has been stable at $1.68 in the past 30 days. The estimate indicates a decline of 10.2% from earnings delivered in the year-ago quarter.Moreover, the consensus mark for revenues is pegged at $353.2 million, indicating a drop of almost 0.4% from the year-ago quarter’s tally.What Does the Zacks Model Say?Our proven model doesn’t show that Helen of Troy is likely to beat bottom-line estimates this quarter. For this to happen, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can seethe complete list of today’s Zacks #1 Rank stocks here.Though Helen of Troy carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Other Stocks Poised to Beat Earnings EstimatesEstee Lauder EL has an Earnings ESP of +6.58% and a Zacks Rank #3.Lamb Weston Holdings LW has an Earnings ESP of +2.31% and a Zacks Rank #3.Philip Morris International PM has an Earnings ESP of +0.54% and a Zacks Rank #3.The Hottest Tech Mega-Trend of AllLast year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportThe Estee Lauder Companies Inc. (EL) : Free Stock Analysis ReportHelen of Troy Limited (HELE) : Free Stock Analysis ReportLamb Weston Holdings Inc. (LW) : Free Stock Analysis ReportPhilip Morris International Inc. (PM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Major averages close at record highs on dovish Fed hopes
By Chuck Mikolajczak
NEW YORK (Reuters) - U.S. stocks rose on Wednesday, with each of the major indexes closing at a record high, as expectations grew that the Federal Reserve would take a more dovish turn as a raft of data provided more evidence of a slowing economy.
Benchmark U.S. 10-year Treasury Note yields <US10YT=RR> touched its lowest since November 2016 at 1.939%, while euro zone yields tumbled to record lows on bets the European Central Bank's next chief would stay a dovish course.
Data on Wednesday showed the U.S. trade deficit jumped to a five-month high while services sector data showed a slowdown in activity. The reports come on the heels of data on housing, manufacturing, business investment and consumer spending that point to slowing economic growth in the quarter.
"The data has been mixed, it hasn’t been terrible, sort of a decline generally," said Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta, Georgia.
"Certainly the bond market is continuing to hit fresh yield lows so that is a message there is a definite slowing and the central banks will have to cut. I guess the equity markets are saying that is going to be OK."
The Dow Jones Industrial Average <.DJI> rose 179.32 points, or 0.67%, to 26,966, the S&P 500 <.SPX> gained 22.79 points, or 0.77%, to 2,995.8 and the Nasdaq Composite <.IXIC> added 61.14 points, or 0.75%, to 8,170.23.
The defensive utilities <.SPLRCU>, real estate <.SPLRCT> and consumer staples <.SPLRCS> rose the most among the 11 major S&P sectors as the falling bond yields made stocks that pay high dividends more attractive. The dividend yield for the broad S&P 500 and the 10-year Treasury are nearly identical.
(Graphic: S&P 500 dividend yield vs 10-year Treasury - https://tmsnrt.rs/2YvzTnI)
Traders currently see a 29.7% chance the Federal Reserve would cut borrowing costs by half a percentage point at its July 30-31 policy meeting, up from the 25% perceived chance on Tuesday and 24% a week ago. A cut of at least a quarter percentage point is viewed as a certainty.
Rising expectations for a rate cut, fueled by softer economic data and comments from global central banks indicating a more dovish stance helped the S&P 500 and the Dow Jones indexes post their best June performance in decades.
The Atlanta Fed on Wednesday trimmed its second-quarter GDP growth view to 1.3% on an annualized rate, down from 1.5% on Monday.
Trading volumes were thin due to shortened trading hours on Wednesday ahead of the July Fourth holiday. About 4.15 billion shares changed hands in U.S. exchanges, compared with the 6.89 billion daily average over the last 20 sessions.
Additional data on the labor market showed the ADP National Employment Report, considered by some to be a precursor to the Labor Department's more comprehensive monthly nonfarm payrolls data due on Friday, showed U.S. private employers added 102,000 jobs in June, well below economists' expectations.
Among stocks, Symantec Corp <SYMC.O> surged 13.57%, the most on the S&P, after sources told Reuters that chipmaker Broadcom Inc <AVGO.O> is in advanced talks to buy the cybersecurity firm. Broadcom fell 3.5%.
Tesla Inc <TSLA.O> rose 4.61% after the electric carmaker set a record for quarterly vehicle deliveries after months of questions about demand for its luxury electric cars.
Advancing issues outnumbered declining ones on the NYSE by a 2.64-to-1 ratio; on Nasdaq, a 1.85-to-1 ratio favored advancers.
The S&P 500 posted 85 new 52-week highs and no new lows; the Nasdaq Composite recorded 88 new highs and 40 new lows.
(Reporting by Chuck Mikolajczak in New York; Editing by James Dalgleish)
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Should You Buy ASM International NV (AMS:ASM) For Its 1.7% Dividend?
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Dividend paying stocks like ASM International NV (AMS:ASM) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
Investors might not know much about ASM International's dividend prospects, even though it has been paying dividends for the last eight years and offers a 1.7% yield. A 1.7% yield is not inspiring, but the longer payment history has some appeal. The company also bought back stock equivalent to around 8.4% of market capitalisation this year. Some simple research can reduce the risk of buying ASM International for its dividend - read on to learn more.
Click the interactive chart for our full dividend analysis
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. ASM International paid out 27% of its profit as dividends, over the trailing twelve month period. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. ASM International paid out 174% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. While ASM International's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. Cash is king, as they say, and were ASM International to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign.
Consider gettingour latest analysis on ASM International's financial position here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Looking at the last decade of data, we can see that ASM International paid its first dividend at least eight years ago. During the past eight-year period, the first annual payment was €0.40 in 2011, compared to €1.00 last year. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time.
The dividend has been growing pretty quickly, which could be enough to get us interested even though the dividend history is relatively short. Further research may be warranted.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. In the last five years, ASM International's earnings per share have shrunk at approximately 26% per annum. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. ASM International has a low payout ratio, which we like, although it paid out virtually all of its generated cash. Earnings per share are down, and to our mind ASM International has not been paying a dividend long enough to demonstrate its resilience across economic cycles. In summary, ASM International has a number of shortcomings that we'd find it hard to get past. Things could change, but we think there are a number of better ideas out there.
Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from costs or inflation. Businesses can change though, and we think it would make sense to see whatanalysts are forecasting for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Is Atea ASA (OB:ATEA) Trading At A 39% Discount?
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How far off is Atea ASA (OB:ATEA) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's value. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for Atea
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (NOK, Millions)", "2020": "NOK1.1b", "2021": "NOK1.2b", "2022": "NOK1.3b", "2023": "NOK1.4b", "2024": "NOK1.4b", "2025": "NOK1.5b", "2026": "NOK1.5b", "2027": "NOK1.6b", "2028": "NOK1.6b", "2029": "NOK1.7b"}, {"": "Growth Rate Estimate Source", "2020": "Analyst x3", "2021": "Analyst x3", "2022": "Est @ 7.54%", "2023": "Est @ 5.8%", "2024": "Est @ 4.59%", "2025": "Est @ 3.74%", "2026": "Est @ 3.15%", "2027": "Est @ 2.73%", "2028": "Est @ 2.44%", "2029": "Est @ 2.24%"}, {"": "Present Value (NOK, Millions) Discounted @ 8.29%", "2020": "NOK1.0k", "2021": "NOK1.0k", "2022": "NOK1.0k", "2023": "NOK1.0k", "2024": "NOK972.1", "2025": "NOK931.3", "2026": "NOK887.1", "2027": "NOK841.6", "2028": "NOK796.1", "2029": "NOK751.7"}]
("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF)= NOK9.3b
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (1.8%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.3%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = øre1.7b × (1 + 1.8%) ÷ (8.3% – 1.8%) = øre26b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= NOKøre26b ÷ ( 1 + 8.3%)10= NOK11.72b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is NOK20.99b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of NOK191.82. Relative to the current share price of NOK117.8, the company appears quite good value at a 39% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Atea as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.3%, which is based on a levered beta of 1.095. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Atea, There are three further aspects you should look at:
1. Financial Health: Does ATEA have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does ATEA's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of ATEA? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the OB every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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Russell Crowe lost out on £80m payday for 'Lord of the Rings'
Russell Crowe (Credit: Evan Agostini/Invision/AP) Russell Crowe missed out on a possible payday of $100 million (around £80 million) when he decided not to pursue a role in the Lord of the Rings movies. Speaking to Howard Stern, the Gladiator star said that producers paired him up with director Peter Jackson with a view to Crowe playing Aragorn, the part eventually immortalised by Viggo Mortensen. Read more: Russell Crowe bought a dinosaur head from DiCaprio Crowe confirmed that a deal on the table involved 10 percent of the 'backend gross' of the movies, which would have translated to somewhere in the region of $100 million. But Crowe says he could tell by Jackson's voice during a phone call the pair had that he didn't want him for the job. I didn't think Peter Jackson wanted me on that film, he told Stern . Because he was forced into talking to me, because there was a moment in time when everyone wanted me in everything. Mortensen as Aragorn (Credit: New Line) I am talking to him on the phone, it is like, I don't think he even knows what I have done. I just knew that my instinct was that he had somebody else in mind, which turned out to be Viggo, and he should be allowed to hire the actor who he wants. Asked by Stern whether he regretted walking away from such a huge fortune, Crowe replied: Never thought about it - only in situations like interviews where people are polite and kind enough to add s**t up for me. Read more: Nic Cage to return stolen dino skull Crowe wasn't the only actor considered for the role of Aragorn, of course. Daniel Day-Lewis was offered the part twice but turned it down on both occasions. Nicolas Cage also turned it down, citing family obligations, before producer Mark Ordesky saw Mortensen appearing in a play and invited him to audition. View comments
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The UK industries creating the most and least jobs
Job vacancies in the UK's real estate industry are up 234% since 1978. Photo: Andrew Matthews/PA Wire/PA Images Employment in the UK is currently at a record high, with over 32.7 million people in work across the country. But which industries are creating the most jobs? Research by RS Components has revealed which industries are growing, stagnating, and declining in the UK’s job market. READ MORE: The best industries for high-paying jobs in Britain Industries where job vacancies have increased The real estate industry is thriving more than any other UK sector, with jobs up 234% between 1978 and 2018. More than 500,000 real estate jobs were available in the last year, data shows. But science and technology roles aren’t far behind. Job vacancies in the field are up 208% in 40 years. This shift marks the transition from the “manufacturing Britain of old” to the “technology-focused one of the future,” RS Components said. Administrative roles are up 181%, while health and social care vacancies are up 127%. READ MORE: No-deal Brexit – industries most at risk Arts and entertainment job vacancies are up 111%. The nation’s creative industries are flourishing, having last year surpassed a worth of £100bn . Industries where job vacancies have decreased Other industries are not doing so well. Vacancies in mining and quarrying have fallen a whopping 84% in four decades — more than any other UK industry — likely reflecting the decline of coal as new energy sources become more common. Manufacturing job vacancies are also down 59%. Recent research by the GMB trade union shows there are now less than three million people employed in this sector in the UK. Electricity, gas, steam, and air conditioning job vacancies came in third, with vacancies decreasing by 41%. READ MORE: The top 10 industries for pay right now Public admin and defence job vacancies have fallen 26%, while jobs in agriculture, forestry, and fishing are down a quarter.
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Why Kronos Worldwide is Worth Adding to Your Portfolio Now
Kronos Worldwide, Inc.’s KRO stock looks promising at the moment. This leading producer of titanium dioxide (TiO2) pigments has seen its shares shot up around 25% over the past six months.We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.Let's see what makes this Zacks Rank #2 (Buy) stock an attractive investment option at the moment.An OutperformerKronos Worldwide has significantly outperformed the industry it belongs to year to date. The company’s shares have surged 32.6% compared with a roughly 16.8% decline recorded by the industry. The company has also outpaced the S&P 500’s rise of 18.6% for the same period.
Estimates NorthboundEarnings estimate revisions have the greatest impact on stock prices. Annual estimates for Kronos Worldwide have moved up over the past three months. Over this period, the Zacks Consensus Estimate for 2019 has increased by around 9.9%. The Zacks Consensus Estimate for earnings for 2020 has also moved up 26.5% over the same timeframe.Superior Return on Equity (ROE)ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12-months for Kronos Worldwide is 19.3%, above the industry’s level of 11.5%.Capital DeploymentKronos Worldwide remains focused on returning value to shareholders. Earlier this year, the company hiked its quarterly dividend by a penny per share to 18 cents per share. Kronos Worldwide paid dividend worth $20.9 million to its shareholders during the first three months of 2019. The company also had repurchase authorization of roughly 1.95 million shares at the end of first-quarter 2019.Growth Drivers in PlaceKronos Worldwide is poised to gain from rising demand for TiO2. Demand for TiO2 has been growing on the back of strong consumptions across Western Europe and North America. Moreover, markets for TiO2 are rising in South America, Eastern Europe, the Asia Pacific region and China and the company sees continued growth across these regions.The company is seeing strong demand for its TiO2 products across most segments, which is expected to continue through 2019. It expects demand to grow 2-3% annually over the long term.Kronos Worldwide also expects its sales volumes for 2019 to be higher year over year based on expected production levels and assuming current global economic conditions to remain stable. The company also expects its sales to be higher year over year in 2019, mainly due to higher expected sales volumes.
Kronos Worldwide Inc Price and Consensus
Kronos Worldwide Inc price-consensus-chart | Kronos Worldwide Inc Quote
Other Stocks Worth a LookOther stocks worth considering in the basic materials space include Materion Corporation MTRN, Flexible Solutions International Inc FSI and Israel Chemicals Ltd. ICL.Materion has an expected earnings growth rate of 30.3% for the current year and carries a Zacks Rank #1 (Strong Buy). The company’s shares have gained around 21% over the past year. You can seethe complete list of today’s Zacks #1 Rank stocks here.Flexible Solutions has an expected earnings growth rate of 342.9% for the current fiscal year and carries a Zacks Rank #1. Its shares have surged around 152% in the past year.Israel Chemicals has an expected earnings growth rate of 13.5% for the current year and carries a Zacks Rank #1. Its shares are up roughly 15% in the past year.The Hottest Tech Mega-Trend of AllLast year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >>
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 reportKronos Worldwide Inc (KRO) : Free Stock Analysis ReportFlexible Solutions International Inc. (FSI) : Free Stock Analysis ReportIsrael Chemicals Shs (ICL) : Free Stock Analysis ReportMaterion Corporation (MTRN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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Intel Stock Fireworks: Will the Flash Lead to an Explosion?
With Independence Day on our minds and in our hearts, it’s not hard to think of fireworks when looking back atIntel’s(NASDAQ:INTC) explosive price action over the past month. (Moreover, perhaps not coincidentally, Intel is working on aprojectto replace traditional fireworks displays with less dangerous and more environmentally friendly drone light shows.)
Source: Shutterstock
Year-to-date, the Intel stock price isn’t very different from where it began in January; the month of June, however, saw INTC stock in a smooth and uninterrupted ascent. So, was this the start of an explosive move … or just a flash in the pan?
After any fireworks display, the excitement must eventually fade, leaving nothing but a big mess to clean up (and hopefully no injuries). Aftergaining7% in June — outperforming the computer and technology sector’s increase of 4% and theS&P 500’s5% move during that time — some analysts aren’t particularly eager to accumulate Intel stock shares at the current price point.
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It seems that analysts’ primary fear revolves around Intel’s upcoming earnings report on July 25. Talk about low expectations: analysts expect the company to post earnings of 89 cents per share, indicating a year-over-year decline of 15%. Zacks, meanwhile, is predicting earnings of $4.23 per share and revenues of $68.51 billion, which would represent year-over-year changes of -7.64% in EPS and -3.3% in revenues.
Clearly, there’s no shortage of pessimism. For instance, Citi Research analyst Christopher Danelyassertedthat he “would not chase” INTC stock as he sees “downside to consensus estimates even with the new policies.” (Evidently, Danley was referring to the recenteasingof the American prohibition on selling semiconductors toHuawei.)
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On the other hand, Danley may just be bearish on the semiconductor sector generally (or maybe he just has a deep-seated fear of chasing things?). He alsoissueda warning against chasingMicron(NASDAQ:MU) stock, citing his belief that his view that the “DRAM crash” will continue throughout the year.
Bernstein analyst Stacy Rasgon alsochimed inwith a bearish view on Intel, claiming that INTC stock “seems to have little going for it at the moment.” Lowering his price target on Intel stock to $39 from $42, Rasgon reasoned that the main bullish argument for Intel shares is that they’re cheap, as they’ve had a 12% drop over the past three months.
Rasgon’s contention strikes me as a classic “straw man” argument, as I’ve never heard of anyone buying INTC shares just because they’re cheap. Rather, I view Danley’s and Rasgon’s vitriol as typical analyst bandwagon behavior: low expectations tend to beget low expectations among market soothsayers.
As I see it, there’s more to Intel than just the price action. In terms of its valuation, INTC indicates a forward P/E ratio of 11x, which is comparatively favorable its industry’s average forward P/E ratio of 16x. Moreover, Intel currently has a PEG ratio of 1.5, marking INTC stock as a superior value to the sector generally, which has a PEG ratio of 1.85.
Investors have every right to choose to ignore the pessimists and hold their positions in INTC stock. It’s still the biggest semiconductor company and remains a good value in its niche (remember, Warren Buffett once said thatpriceis what youpay, butvalueis what youget). And so, unlike a fireworks display, Intel can continue to ascend even after the crowd (composed of dreary analysts, in this case) has gone home.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.
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The postIntel Stock Fireworks: Will the Flash Lead to an Explosion?appeared first onInvestorPlace.
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